diff --git a/level_zero/tools/source/debug/linux/debug_session.h b/level_zero/tools/source/debug/linux/debug_session.h
index eac0519a50..934a14e672 100644
--- a/level_zero/tools/source/debug/linux/debug_session.h
+++ b/level_zero/tools/source/debug/linux/debug_session.h
@@ -15,6 +15,8 @@
 #include "level_zero/tools/source/debug/debug_session.h"
 #include "level_zero/tools/source/debug/debug_session_imp.h"
 
+#include <set>
+
 namespace L0 {
 struct DebugSessionLinux : DebugSessionImp {
 
@@ -116,11 +118,13 @@ struct DebugSessionLinux : DebugSessionImp {
 
         uint64_t moduleBegin;
         uint64_t moduleEnd;
+        uint64_t moduleHandle;
 
         std::unordered_set<uint64_t> cookies;
         int vmBindCounter = 0;
         bool moduleLoadEventAck = false;
         std::vector<EventToAck> ackEvents;
+        std::set<uint64_t> validVMs;
     };
 
     struct Module {
diff --git a/level_zero/tools/source/debug/linux/xe/debug_session.cpp b/level_zero/tools/source/debug/linux/xe/debug_session.cpp
index cf5e70612a..2ed2d8a6cf 100644
--- a/level_zero/tools/source/debug/linux/xe/debug_session.cpp
+++ b/level_zero/tools/source/debug/linux/xe/debug_session.cpp
@@ -304,7 +304,7 @@ void DebugSessionLinuxXe::handleEvent(drm_xe_eudebug_event *event) {
     case DRM_XE_EUDEBUG_EVENT_VM_BIND_OP: {
         drm_xe_eudebug_event_vm_bind_op *vmBindOp = reinterpret_cast<drm_xe_eudebug_event_vm_bind_op *>(event);
 
-        PRINT_DEBUGGER_INFO_LOG("DRM_XE_EUDEBUG_IOCTL_READ_EVENT type: drm_xe_eudebug_event_vm_bind_op vm_bind_ref_seqno = %llu num_extensions = %llu addr = %llu range = %llu\n",
+        PRINT_DEBUGGER_INFO_LOG("DRM_XE_EUDEBUG_IOCTL_READ_EVENT type: drm_xe_eudebug_event_vm_bind_op vm_bind_ref_seqno = %llu num_extensions = %llu addr = 0x%llx range = %llu\n",
                                 static_cast<uint64_t>(vmBindOp->vm_bind_ref_seqno), static_cast<uint64_t>(vmBindOp->num_extensions),
                                 static_cast<uint64_t>(vmBindOp->addr), static_cast<uint64_t>(vmBindOp->range));
 
@@ -399,11 +399,12 @@ void DebugSessionLinuxXe::handleVmBind(VmBindData &vmBindData) {
     auto elfHandleInVmBind = invalidHandle;
 
     uint64_t moduleHandle = invalidHandle;
+    uint64_t isaAddr = 0;
     bool triggerModuleLoadEvent = false;
 
     for (auto &vmBindOpData : vmBindData.vmBindOpMap) {
+        auto &vmBindOp = vmBindOpData.second.vmBindOp;
         for (const auto &vmBindOpMetadata : vmBindOpData.second.vmBindOpMetadataVec) {
-            auto &vmBindOp = vmBindOpData.second.vmBindOp;
             auto &metaDataEntry = connection->metaDataMap[vmBindOpMetadata.metadata_handle];
             if (vmBindOp.base.flags & DRM_XE_EUDEBUG_EVENT_CREATE) {
                 {
@@ -420,10 +421,10 @@ void DebugSessionLinuxXe::handleVmBind(VmBindData &vmBindData) {
                 }
 
                 if (metaDataEntry.metadata.type == DRM_XE_DEBUG_METADATA_ELF_BINARY) {
+                    isaAddr = vmBindOp.addr;
                     if (connection->isaMap[0].find(vmBindOp.addr) == connection->isaMap[0].end()) {
                         auto &isaMap = connection->isaMap[0];
                         auto &elfMap = connection->elfMap;
-
                         auto isa = std::make_unique<IsaAllocation>();
                         isa->bindInfo = {vmBindOp.addr, vmBindOp.range};
                         isa->vmHandle = vmBindData.vmBind.vm_handle;
@@ -431,11 +432,15 @@ void DebugSessionLinuxXe::handleVmBind(VmBindData &vmBindData) {
                         isa->moduleBegin = reinterpret_cast<uint64_t>(metaDataEntry.data.get());
                         isa->moduleEnd = isa->moduleBegin + metaDataEntry.metadata.len;
                         isa->tileInstanced = false;
+                        isa->validVMs.insert(vmBindData.vmBind.vm_handle);
                         isa->perKernelModule = false;
                         elfMap[isa->moduleBegin] = isa->elfHandle;
                         isaMap[vmBindOp.addr] = std::move(isa);
                         isaMap[vmBindOp.addr]->moduleLoadEventAck = true;
                         elfHandleInVmBind = vmBindOpMetadata.metadata_handle;
+                    } else {
+                        auto &isa = connection->isaMap[0][vmBindOp.addr];
+                        isa->validVMs.insert(vmBindData.vmBind.vm_handle);
                     }
                 }
                 if (metaDataEntry.metadata.type == DRM_XE_DEBUG_METADATA_PROGRAM_MODULE) {
@@ -445,13 +450,43 @@ void DebugSessionLinuxXe::handleVmBind(VmBindData &vmBindData) {
 
                     bool canTriggerEvent = module.loadAddresses[0].size() == (module.segmentCount - 1);
                     module.loadAddresses[0].insert(vmBindOp.addr);
+                    moduleHandle = vmBindOpMetadata.metadata_handle;
                     if (canTriggerEvent && module.loadAddresses[0].size() == module.segmentCount) {
                         triggerModuleLoadEvent = true;
-                        moduleHandle = vmBindOpMetadata.metadata_handle;
                     }
                 }
             }
         }
+
+        if (vmBindOp.base.flags & DRM_XE_EUDEBUG_EVENT_DESTROY) {
+            if (connection->isaMap[0].count(vmBindOp.addr)) {
+                auto &isa = connection->isaMap[0][vmBindOp.addr];
+                if (isa->validVMs.count(vmBindData.vmBind.vm_handle)) {
+                    auto &module = connection->metaDataToModule[isa->moduleHandle];
+                    module.segmentVmBindCounter[0]--;
+                    if (module.segmentVmBindCounter[0] == 0) {
+                        zet_debug_event_t debugEvent = {};
+                        auto &metaDataEntry = connection->metaDataMap[isa->moduleHandle];
+                        auto gmmHelper = connectedDevice->getNEODevice()->getGmmHelper();
+                        auto loadAddress = gmmHelper->canonize(*std::min_element(module.loadAddresses[0].begin(), module.loadAddresses[0].end()));
+                        debugEvent.type = ZET_DEBUG_EVENT_TYPE_MODULE_UNLOAD;
+                        debugEvent.info.module.format = ZET_MODULE_DEBUG_INFO_FORMAT_ELF_DWARF;
+                        debugEvent.info.module.load = loadAddress;
+                        auto &elfMetadata = connection->metaDataMap[isa->elfHandle];
+                        debugEvent.info.module.moduleBegin = reinterpret_cast<uint64_t>(elfMetadata.data.get());
+                        debugEvent.info.module.moduleEnd = reinterpret_cast<uint64_t>(elfMetadata.data.get()) + elfMetadata.metadata.len;
+                        pushApiEvent(debugEvent, metaDataEntry.metadata.metadata_handle);
+                        module.loadAddresses[0].clear();
+                        module.moduleLoadEventAcked[0] = false;
+                    }
+                    isa->validVMs.erase(vmBindData.vmBind.vm_handle);
+                }
+            }
+        }
+    }
+
+    if (isaAddr && moduleHandle != invalidHandle) {
+        connection->isaMap[0][isaAddr]->moduleHandle = moduleHandle;
     }
 
     if (triggerModuleLoadEvent) {
diff --git a/level_zero/tools/test/unit_tests/sources/debug/linux/xe/test_debug_api_linux_xe.cpp b/level_zero/tools/test/unit_tests/sources/debug/linux/xe/test_debug_api_linux_xe.cpp
index e03592d5f3..0f3e22016c 100644
--- a/level_zero/tools/test/unit_tests/sources/debug/linux/xe/test_debug_api_linux_xe.cpp
+++ b/level_zero/tools/test/unit_tests/sources/debug/linux/xe/test_debug_api_linux_xe.cpp
@@ -1394,6 +1394,178 @@ TEST_F(DebugApiLinuxTestXe, GivenVmBindOpMetadataCreateEventAndUfenceForProgramM
     EXPECT_EQ(reinterpret_cast<uint64_t>(connection->metaDataMap[11].data.get()) + connection->metaDataMap[11].metadata.len, event.info.module.moduleEnd);
 }
 
+TEST_F(DebugApiLinuxTestXe, GivenVmUnbindForLastIsaSegmentThenL0ModuleUnloadEventSent) {
+
+    zet_debug_config_t config = {};
+    config.pid = 0x1234;
+
+    uint64_t seg1Va = 0xffff1234;
+    uint64_t seg2Va = 0xffff5678;
+    uint64_t seqno = 0;
+
+    auto session = std::make_unique<MockDebugSessionLinuxXe>(config, device, 10);
+    ASSERT_NE(nullptr, session);
+
+    auto handler = new MockIoctlHandlerXe;
+    session->ioctlHandler.reset(handler);
+
+    session->clientHandleToConnection.clear();
+    drm_xe_eudebug_event_client client1;
+    client1.base.type = DRM_XE_EUDEBUG_EVENT_OPEN;
+    client1.base.flags = DRM_XE_EUDEBUG_EVENT_CREATE;
+    client1.client_handle = MockDebugSessionLinuxXe::mockClientHandle;
+    session->handleEvent(reinterpret_cast<drm_xe_eudebug_event *>(&client1));
+
+    auto &connection = session->clientHandleToConnection[MockDebugSessionLinuxXe::mockClientHandle];
+    drm_xe_eudebug_event_metadata metadata{};
+    metadata.base.type = DRM_XE_EUDEBUG_EVENT_METADATA;
+    metadata.base.flags = DRM_XE_EUDEBUG_EVENT_CREATE;
+    metadata.base.len = sizeof(drm_xe_eudebug_event_metadata);
+    metadata.client_handle = MockDebugSessionLinuxXe::mockClientHandle;
+    metadata.metadata_handle = 10;
+    metadata.type = DRM_XE_DEBUG_METADATA_PROGRAM_MODULE;
+    metadata.len = sizeof(metadata);
+    connection->metaDataMap[10].metadata = metadata;
+    connection->metaDataToModule[10].segmentCount = 2;
+
+    metadata.metadata_handle = 11;
+    metadata.type = DRM_XE_DEBUG_METADATA_ELF_BINARY;
+    metadata.len = sizeof(metadata);
+    connection->metaDataMap[11].metadata = metadata;
+    auto ptr = std::make_unique<char[]>(metadata.len);
+    connection->metaDataMap[11].data = std::move(ptr);
+    connection->metaDataMap[11].metadata.len = 10000;
+
+    drm_xe_eudebug_event_vm_bind vmBind{};
+    vmBind.base.type = DRM_XE_EUDEBUG_EVENT_VM_BIND;
+    vmBind.base.flags = DRM_XE_EUDEBUG_EVENT_STATE_CHANGE;
+    vmBind.base.len = sizeof(drm_xe_eudebug_event_vm_bind);
+    vmBind.base.seqno = seqno++;
+    vmBind.client_handle = client1.client_handle;
+    vmBind.vm_handle = 0x1234;
+    vmBind.flags = DRM_XE_EUDEBUG_EVENT_VM_BIND_FLAG_UFENCE;
+    vmBind.num_binds = 1;
+
+    session->handleEvent(reinterpret_cast<drm_xe_eudebug_event *>(&vmBind.base));
+    auto &vmBindMap = session->clientHandleToConnection[client1.client_handle]->vmBindMap;
+
+    drm_xe_eudebug_event_vm_bind_op vmBindOp{};
+    vmBindOp.base.type = DRM_XE_EUDEBUG_EVENT_VM_BIND_OP;
+    vmBindOp.base.flags = DRM_XE_EUDEBUG_EVENT_CREATE;
+    vmBindOp.base.len = sizeof(drm_xe_eudebug_event_vm_bind_op);
+    vmBindOp.base.seqno = seqno++;
+    vmBindOp.num_extensions = 2;
+    vmBindOp.addr = seg1Va;
+    vmBindOp.range = 1000;
+    vmBindOp.vm_bind_ref_seqno = vmBind.base.seqno;
+    session->handleEvent(reinterpret_cast<drm_xe_eudebug_event *>(&vmBindOp.base));
+
+    drm_xe_eudebug_event_vm_bind_ufence vmBindUfence{};
+    vmBindUfence.base.type = DRM_XE_EUDEBUG_EVENT_VM_BIND_UFENCE;
+    vmBindUfence.base.flags = DRM_XE_EUDEBUG_EVENT_CREATE | DRM_XE_EUDEBUG_EVENT_NEED_ACK;
+    vmBindUfence.base.len = sizeof(drm_xe_eudebug_event_vm_bind_ufence);
+    vmBindUfence.base.seqno = seqno++;
+    vmBindUfence.vm_bind_ref_seqno = vmBind.base.seqno;
+    session->handleEvent(reinterpret_cast<drm_xe_eudebug_event *>(&vmBindUfence.base));
+
+    auto &vmBindOpData = vmBindMap[vmBindOp.vm_bind_ref_seqno].vmBindOpMap[vmBindOp.base.seqno];
+    drm_xe_eudebug_event_vm_bind_op_metadata vmBindOpMetadata{};
+    vmBindOpMetadata.base.type = DRM_XE_EUDEBUG_EVENT_VM_BIND_OP_METADATA;
+    vmBindOpMetadata.base.flags = DRM_XE_EUDEBUG_EVENT_CREATE;
+    vmBindOpMetadata.base.len = sizeof(drm_xe_eudebug_event_vm_bind_op_metadata);
+    vmBindOpMetadata.base.seqno = seqno++;
+    vmBindOpMetadata.vm_bind_op_ref_seqno = vmBindOp.base.seqno;
+    vmBindOpMetadata.metadata_handle = 10;
+    session->handleEvent(reinterpret_cast<drm_xe_eudebug_event *>(&vmBindOpMetadata.base));
+
+    vmBindOpMetadata.base.seqno = seqno++;
+    vmBindOpMetadata.metadata_handle = 11;
+    session->handleEvent(reinterpret_cast<drm_xe_eudebug_event *>(&vmBindOpMetadata.base));
+
+    ASSERT_EQ(vmBindOpData.pendingNumExtensions, 0ull);
+    ASSERT_EQ(vmBindOpData.vmBindOpMetadataVec.size(), 2ull);
+    EXPECT_EQ(session->apiEvents.size(), 0u);
+
+    // Now bind 2nd segment
+    vmBind.base.seqno = seqno++;
+    vmBind.vm_handle = 0x1234;
+    vmBind.flags = DRM_XE_EUDEBUG_EVENT_VM_BIND_FLAG_UFENCE;
+    vmBind.num_binds = 1;
+    session->handleEvent(reinterpret_cast<drm_xe_eudebug_event *>(&vmBind.base));
+    vmBindOp.base.flags = DRM_XE_EUDEBUG_EVENT_CREATE;
+    vmBindOp.base.seqno = seqno++;
+    vmBindOp.num_extensions = 2;
+    vmBindOp.vm_bind_ref_seqno = vmBind.base.seqno;
+    vmBindOp.addr = seg2Va;
+    session->handleEvent(reinterpret_cast<drm_xe_eudebug_event *>(&vmBindOp.base));
+    vmBindOpMetadata.vm_bind_op_ref_seqno = vmBindOp.base.seqno;
+    vmBindOpMetadata.base.seqno = seqno++;
+    vmBindOpMetadata.metadata_handle = 10;
+    session->handleEvent(reinterpret_cast<drm_xe_eudebug_event *>(&vmBindOpMetadata.base));
+    vmBindOpMetadata.base.seqno = seqno++;
+    vmBindOpMetadata.metadata_handle = 11;
+    session->handleEvent(reinterpret_cast<drm_xe_eudebug_event *>(&vmBindOpMetadata.base));
+    vmBindUfence.base.seqno = seqno++;
+    vmBindUfence.vm_bind_ref_seqno = vmBind.base.seqno;
+    session->handleEvent(reinterpret_cast<drm_xe_eudebug_event *>(&vmBindUfence.base));
+
+    auto event = session->apiEvents.front();
+    ASSERT_EQ(ZET_DEBUG_EVENT_TYPE_MODULE_LOAD, event.type);
+    session->apiEvents.pop();
+
+    // now do unbinds
+    vmBind.base.seqno = seqno++;
+    vmBind.vm_handle = 0x1234;
+    vmBind.flags = DRM_XE_EUDEBUG_EVENT_VM_BIND_FLAG_UFENCE;
+    vmBind.num_binds = 1;
+    session->handleEvent(reinterpret_cast<drm_xe_eudebug_event *>(&vmBind.base));
+    vmBindOp.base.flags = DRM_XE_EUDEBUG_EVENT_DESTROY;
+    vmBindOp.base.seqno = seqno++;
+    vmBindOp.num_extensions = 0;
+    vmBindOp.vm_bind_ref_seqno = vmBind.base.seqno;
+    vmBindOp.addr = seg2Va;
+    session->handleEvent(reinterpret_cast<drm_xe_eudebug_event *>(&vmBindOp.base));
+    vmBindUfence.base.seqno = seqno++;
+    vmBindUfence.vm_bind_ref_seqno = vmBind.base.seqno;
+    session->handleEvent(reinterpret_cast<drm_xe_eudebug_event *>(&vmBindUfence.base));
+    EXPECT_EQ(session->apiEvents.size(), 0u);
+
+    vmBind.base.seqno = seqno++;
+    vmBind.vm_handle = 0x555; // Unbind unmatched VM
+    vmBind.flags = DRM_XE_EUDEBUG_EVENT_VM_BIND_FLAG_UFENCE;
+    vmBind.num_binds = 1;
+    session->handleEvent(reinterpret_cast<drm_xe_eudebug_event *>(&vmBind.base));
+    vmBindOp.base.flags = DRM_XE_EUDEBUG_EVENT_DESTROY;
+    vmBindOp.base.seqno = seqno++;
+    vmBindOp.num_extensions = 0;
+    vmBindOp.vm_bind_ref_seqno = vmBind.base.seqno;
+    session->handleEvent(reinterpret_cast<drm_xe_eudebug_event *>(&vmBindOp.base));
+    vmBindUfence.base.seqno = seqno++;
+    vmBindUfence.vm_bind_ref_seqno = vmBind.base.seqno;
+    session->handleEvent(reinterpret_cast<drm_xe_eudebug_event *>(&vmBindUfence.base));
+    // Unmatched vmHandle should not trigger any events
+    EXPECT_EQ(session->apiEvents.size(), 0u);
+
+    // now unbind final segment
+    vmBind.base.seqno = seqno++;
+    vmBind.vm_handle = 0x1234;
+    vmBind.flags = DRM_XE_EUDEBUG_EVENT_VM_BIND_FLAG_UFENCE;
+    vmBind.num_binds = 1;
+    session->handleEvent(reinterpret_cast<drm_xe_eudebug_event *>(&vmBind.base));
+    vmBindOp.base.flags = DRM_XE_EUDEBUG_EVENT_DESTROY;
+    vmBindOp.base.seqno = seqno++;
+    vmBindOp.num_extensions = 0;
+    vmBindOp.vm_bind_ref_seqno = vmBind.base.seqno;
+    vmBindOp.addr = seg1Va;
+    session->handleEvent(reinterpret_cast<drm_xe_eudebug_event *>(&vmBindOp.base));
+    vmBindUfence.base.seqno = seqno++;
+    vmBindUfence.vm_bind_ref_seqno = vmBind.base.seqno;
+    session->handleEvent(reinterpret_cast<drm_xe_eudebug_event *>(&vmBindUfence.base));
+
+    event = session->apiEvents.front();
+    EXPECT_EQ(ZET_DEBUG_EVENT_TYPE_MODULE_UNLOAD, event.type);
+}
+
 TEST_F(DebugApiLinuxTestXe, GivenVmBindOpMetadataEventAndUfenceNotProvidedForProgramModuleWhenHandlingEventThenEventIsNotAckedButHandled) {
     zet_debug_config_t config = {};
     config.pid = 0x1234;