diff --git a/level_zero/core/source/event/event.cpp b/level_zero/core/source/event/event.cpp
index 15ebbaa35e..54afa2a736 100644
--- a/level_zero/core/source/event/event.cpp
+++ b/level_zero/core/source/event/event.cpp
@@ -217,6 +217,9 @@ void EventPool::setupDescriptorFlags(const ze_event_pool_desc_t *desc) {
     if (pNext && pNext->stype == ZE_STRUCTURE_TYPE_COUNTER_BASED_EVENT_POOL_EXP_DESC) {
         auto counterBasedDesc = reinterpret_cast<const ze_event_pool_counter_based_exp_desc_t *>(pNext);
         counterBasedFlags = counterBasedDesc->flags;
+        if (counterBasedFlags == 0) {
+            counterBasedFlags = ZE_EVENT_POOL_COUNTER_BASED_EXP_FLAG_IMMEDIATE;
+        }
         counterBased = true;
     }
 }
diff --git a/level_zero/core/test/unit_tests/sources/cmdlist/test_cmdlist_append_launch_kernel_3.cpp b/level_zero/core/test/unit_tests/sources/cmdlist/test_cmdlist_append_launch_kernel_3.cpp
index 1bbe9b64ed..6a995dc61f 100644
--- a/level_zero/core/test/unit_tests/sources/cmdlist/test_cmdlist_append_launch_kernel_3.cpp
+++ b/level_zero/core/test/unit_tests/sources/cmdlist/test_cmdlist_append_launch_kernel_3.cpp
@@ -831,8 +831,9 @@ HWTEST2_F(InOrderCmdListTests, givenIncorrectFlagsWhenCreatingCounterBasedEvents
 
     counterBasedExtension.flags = 0;
     auto eventPool = EventPool::create(driverHandle.get(), context, 0, nullptr, &eventPoolDesc, returnValue);
-    EXPECT_EQ(nullptr, eventPool);
-    EXPECT_EQ(ZE_RESULT_ERROR_INVALID_ARGUMENT, returnValue);
+    EXPECT_EQ(static_cast<uint32_t>(ZE_EVENT_POOL_COUNTER_BASED_EXP_FLAG_IMMEDIATE), eventPool->getCounterBasedFlags());
+    EXPECT_NE(nullptr, eventPool);
+    eventPool->destroy();
 
     counterBasedExtension.flags = static_cast<uint32_t>(ZE_EVENT_POOL_COUNTER_BASED_EXP_FLAG_NON_IMMEDIATE) << 1;
     eventPool = EventPool::create(driverHandle.get(), context, 0, nullptr, &eventPoolDesc, returnValue);