diff --git a/level_zero/core/source/cmdlist/cmdlist.h b/level_zero/core/source/cmdlist/cmdlist.h
index ed7f65413e..59fde6560d 100644
--- a/level_zero/core/source/cmdlist/cmdlist.h
+++ b/level_zero/core/source/cmdlist/cmdlist.h
@@ -431,6 +431,7 @@ struct CommandList : _ze_command_list_handle_t {
     CommandListType cmdListType = CommandListType::typeRegular;
     uint32_t partitionCount = 1;
     uint32_t defaultMocsIndex = 0;
+    int32_t defaultThreadArbitrationPolicy = 0;
 
     bool isFlushTaskSubmissionEnabled = false;
     bool isSyncModeQueue = false;
diff --git a/level_zero/core/source/cmdlist/cmdlist_hw.inl b/level_zero/core/source/cmdlist/cmdlist_hw.inl
index be69d3e4b8..fc0373b743 100644
--- a/level_zero/core/source/cmdlist/cmdlist_hw.inl
+++ b/level_zero/core/source/cmdlist/cmdlist_hw.inl
@@ -248,6 +248,10 @@ ze_result_t CommandListCoreFamily<gfxCoreFamily>::initialize(Device *device, NEO
     this->inOrderAtomicSignalingEnabled = gfxCoreHelper.inOrderAtomicSignallingEnabled(rootDeviceEnvironment);
     this->scratchAddressPatchingEnabled = (this->heaplessModeEnabled && !isImmediateType());
     this->copyOperationFenceSupported = isCopyOnly() && productHelper.isDeviceToHostCopySignalingFenceRequired();
+    this->defaultThreadArbitrationPolicy = gfxCoreHelper.getDefaultThreadArbitrationPolicy();
+    if (NEO::debugManager.flags.OverrideThreadArbitrationPolicy.get() != -1) {
+        this->defaultThreadArbitrationPolicy = NEO::debugManager.flags.OverrideThreadArbitrationPolicy.get();
+    }
 
     this->commandContainer.doubleSbaWaRef() = this->doubleSbaWa;
     this->commandContainer.l1CachePolicyDataRef() = &this->l1CachePolicyData;
diff --git a/level_zero/core/source/cmdlist/cmdlist_hw_skl_to_tgllp.inl b/level_zero/core/source/cmdlist/cmdlist_hw_skl_to_tgllp.inl
index b275178113..bbe480aa2f 100644
--- a/level_zero/core/source/cmdlist/cmdlist_hw_skl_to_tgllp.inl
+++ b/level_zero/core/source/cmdlist/cmdlist_hw_skl_to_tgllp.inl
@@ -208,6 +208,7 @@ ze_result_t CommandListCoreFamily<gfxCoreFamily>::appendLaunchKernelWithParams(K
         launchParams.additionalSizeParam,                       // additionalSizeParam
         0,                                                      // partitionCount
         launchParams.reserveExtraPayloadSpace,                  // reserveExtraPayloadSpace
+        0,                                                      // defaultThreadArbitrationPolicy
         launchParams.isIndirect,                                // isIndirect
         launchParams.isPredicate,                               // isPredicate
         false,                                                  // isTimestampEvent
diff --git a/level_zero/core/source/cmdlist/cmdlist_hw_xehp_and_later.inl b/level_zero/core/source/cmdlist/cmdlist_hw_xehp_and_later.inl
index 9eef65d624..3efd816762 100644
--- a/level_zero/core/source/cmdlist/cmdlist_hw_xehp_and_later.inl
+++ b/level_zero/core/source/cmdlist/cmdlist_hw_xehp_and_later.inl
@@ -335,6 +335,7 @@ ze_result_t CommandListCoreFamily<gfxCoreFamily>::appendLaunchKernelWithParams(K
         launchParams.additionalSizeParam,                       // additionalSizeParam
         this->partitionCount,                                   // partitionCount
         launchParams.reserveExtraPayloadSpace,                  // reserveExtraPayloadSpace
+        this->defaultThreadArbitrationPolicy,                   // defaultThreadArbitrationPolicy
         launchParams.isIndirect,                                // isIndirect
         launchParams.isPredicate,                               // isPredicate
         isTimestampEvent,                                       // isTimestampEvent
diff --git a/level_zero/core/test/unit_tests/sources/cmdlist/test_cmdlist_append_launch_kernel_1.cpp b/level_zero/core/test/unit_tests/sources/cmdlist/test_cmdlist_append_launch_kernel_1.cpp
index 53500c6653..00229acde4 100644
--- a/level_zero/core/test/unit_tests/sources/cmdlist/test_cmdlist_append_launch_kernel_1.cpp
+++ b/level_zero/core/test/unit_tests/sources/cmdlist/test_cmdlist_append_launch_kernel_1.cpp
@@ -203,6 +203,7 @@ HWTEST2_F(CommandListAppendLaunchKernel, givenNotEnoughSpaceInCommandStreamWhenA
         NEO::additionalKernelLaunchSizeParamNotSet, // additionalSizeParam
         0,                                          // partitionCount
         0,                                          // reserveExtraPayloadSpace
+        0,                                          // defaultThreadArbitrationPolicy
         false,                                      // isIndirect
         false,                                      // isPredicate
         false,                                      // isTimestampEvent
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 fc34531a5f..b6cd95935f 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
@@ -700,6 +700,7 @@ HWTEST2_F(CommandListAppendLaunchKernel, givenNotEnoughSpaceInCommandStreamWhenA
         NEO::additionalKernelLaunchSizeParamNotSet, // additionalSizeParam
         0,                                          // partitionCount
         0,                                          // reserveExtraPayloadSpace
+        0,                                          // defaultThreadArbitrationPolicy
         false,                                      // isIndirect
         false,                                      // isPredicate
         false,                                      // isTimestampEvent
diff --git a/shared/source/command_container/command_encoder.h b/shared/source/command_container/command_encoder.h
index 42462c2a72..fefd5afeea 100644
--- a/shared/source/command_container/command_encoder.h
+++ b/shared/source/command_container/command_encoder.h
@@ -62,6 +62,7 @@ struct EncodeDispatchKernelArgs {
     uint32_t additionalSizeParam = NEO::additionalKernelLaunchSizeParamNotSet;
     uint32_t partitionCount = 0u;
     uint32_t reserveExtraPayloadSpace = 0;
+    int32_t defaultThreadArbitrationPolicy = 0;
     bool isIndirect = false;
     bool isPredicate = false;
     bool isTimestampEvent = false;
@@ -125,6 +126,9 @@ struct EncodeDispatchKernel {
     static void appendAdditionalIDDFields(InterfaceDescriptorType *pInterfaceDescriptor, const RootDeviceEnvironment &rootDeviceEnvironment,
                                           const uint32_t threadsPerThreadGroup, uint32_t slmTotalSize, SlmPolicy slmPolicy);
 
+    template <typename InterfaceDescriptorType>
+    static void encodeEuSchedulingPolicy(InterfaceDescriptorType *pInterfaceDescriptor, const KernelDescriptor &kernelDesc, int32_t defaultThreadArbitrationPolicy);
+
     template <typename WalkerType>
     static void encodeThreadData(WalkerType &walkerCmd,
                                  const uint32_t *startWorkGroup,
diff --git a/shared/source/command_container/command_encoder.inl b/shared/source/command_container/command_encoder.inl
index a2a789dd55..328446ed18 100644
--- a/shared/source/command_container/command_encoder.inl
+++ b/shared/source/command_container/command_encoder.inl
@@ -589,6 +589,11 @@ bool EncodeDispatchKernel<Family>::inlineDataProgrammingRequired(const KernelDes
     return false;
 }
 
+template <typename Family>
+template <typename InterfaceDescriptorType>
+void EncodeDispatchKernel<Family>::encodeEuSchedulingPolicy(InterfaceDescriptorType *pInterfaceDescriptor, const KernelDescriptor &kernelDesc, int32_t defaultThreadArbitrationPolicy) {
+}
+
 template <typename Family>
 template <typename WalkerType>
 void EncodeDispatchKernel<Family>::adjustTimestampPacket(WalkerType &walkerCmd, const EncodeDispatchKernelArgs &args) {}
diff --git a/shared/source/command_container/command_encoder_enablers.inl b/shared/source/command_container/command_encoder_enablers.inl
index 55f010618e..e847293140 100644
--- a/shared/source/command_container/command_encoder_enablers.inl
+++ b/shared/source/command_container/command_encoder_enablers.inl
@@ -25,6 +25,7 @@ template void NEO::EncodeDispatchKernel<Family>::programBarrierEnable<Family::IN
 template void NEO::EncodeDispatchKernel<Family>::setScratchAddress<false>(uint64_t &scratchAddress, uint32_t requiredScratchSlot0Size, uint32_t requiredScratchSlot1Size, IndirectHeap *ssh, CommandStreamReceiver &csr);
 template void NEO::EncodeDispatchKernel<Family>::setScratchAddress<true>(uint64_t &scratchAddress, uint32_t requiredScratchSlot0Size, uint32_t requiredScratchSlot1Size, IndirectHeap *ssh, CommandStreamReceiver &csr);
 template void NEO::EncodeDispatchKernel<Family>::programInlineDataHeapless<false>(uint8_t *inlineDataPtr, EncodeDispatchKernelArgs &args, CommandContainer &container, uint64_t offsetThreadData);
+template void NEO::EncodeDispatchKernel<Family>::encodeEuSchedulingPolicy<Family::INTERFACE_DESCRIPTOR_DATA>(Family::INTERFACE_DESCRIPTOR_DATA *pInterfaceDescriptor, const KernelDescriptor &kernelDesc, int32_t defaultThreadArbitrationPolicy);
 
 template struct NEO::EncodeStates<Family>;
 template struct NEO::EncodeMath<Family>;
diff --git a/shared/source/command_container/command_encoder_xehp_and_later.inl b/shared/source/command_container/command_encoder_xehp_and_later.inl
index b2951674a9..049b29da6f 100644
--- a/shared/source/command_container/command_encoder_xehp_and_later.inl
+++ b/shared/source/command_container/command_encoder_xehp_and_later.inl
@@ -115,6 +115,10 @@ void EncodeDispatchKernel<Family>::encode(CommandContainer &container, EncodeDis
                                                        kernelDescriptor.kernelAttributes.barrierCount,
                                                        hwInfo);
 
+    if (args.isHeaplessStateInitEnabled) {
+        EncodeDispatchKernel<Family>::encodeEuSchedulingPolicy(&idd, kernelDescriptor, args.defaultThreadArbitrationPolicy);
+    }
+
     auto &gfxCoreHelper = args.device->getGfxCoreHelper();
     auto slmSize = static_cast<uint32_t>(
         gfxCoreHelper.computeSlmValues(hwInfo, args.dispatchInterface->getSlmTotalSize()));
diff --git a/shared/test/unit_test/command_container/command_encoder_tests.cpp b/shared/test/unit_test/command_container/command_encoder_tests.cpp
index bb02f30728..2a8ebc6b05 100644
--- a/shared/test/unit_test/command_container/command_encoder_tests.cpp
+++ b/shared/test/unit_test/command_container/command_encoder_tests.cpp
@@ -15,6 +15,7 @@
 #include "shared/source/helpers/gfx_core_helper.h"
 #include "shared/source/helpers/in_order_cmd_helpers.h"
 #include "shared/source/helpers/pipe_control_args.h"
+#include "shared/source/kernel/kernel_descriptor.h"
 #include "shared/source/memory_manager/graphics_allocation.h"
 #include "shared/source/memory_manager/memory_manager.h"
 #include "shared/source/os_interface/product_helper.h"
@@ -678,4 +679,21 @@ HWTEST2_F(CommandEncoderTests, whenAskingForImplicitScalingValuesThenAlwaysRetur
     EXPECT_EQ(static_cast<uint32_t>(GfxCoreHelperHw<FamilyType>::getSingleTimestampPacketSizeHw()), ImplicitScalingDispatch<FamilyType>::getTimeStampPostSyncOffset());
 
     EXPECT_FALSE(ImplicitScalingDispatch<FamilyType>::platformSupportsImplicitScaling(*rootExecEnv));
-}
\ No newline at end of file
+}
+
+HWTEST_F(CommandEncoderTests, givenInterfaceDescriptorWhenEncodeEuSchedulingPolicyIsCalledThenNothingIsChanged) {
+    using INTERFACE_DESCRIPTOR_DATA = typename FamilyType::INTERFACE_DESCRIPTOR_DATA;
+
+    INTERFACE_DESCRIPTOR_DATA idd = FamilyType::cmdInitInterfaceDescriptorData;
+    auto expectedIdd = idd;
+
+    KernelDescriptor kernelDescriptor;
+    kernelDescriptor.kernelAttributes.threadArbitrationPolicy = ThreadArbitrationPolicy::AgeBased;
+    int32_t defaultThreadArbitrationPolicy = ThreadArbitrationPolicy::RoundRobin;
+    EncodeDispatchKernel<FamilyType>::encodeEuSchedulingPolicy(&idd, kernelDescriptor, defaultThreadArbitrationPolicy);
+
+    constexpr uint32_t iddSizeInDW = 8;
+    for (uint32_t i = 0u; i < iddSizeInDW; i++) {
+        EXPECT_EQ(expectedIdd.getRawData(i), idd.getRawData(i));
+    }
+}
diff --git a/shared/test/unit_test/fixtures/command_container_fixture.cpp b/shared/test/unit_test/fixtures/command_container_fixture.cpp
index 577b310a20..653c101288 100644
--- a/shared/test/unit_test/fixtures/command_container_fixture.cpp
+++ b/shared/test/unit_test/fixtures/command_container_fixture.cpp
@@ -57,6 +57,7 @@ EncodeDispatchKernelArgs CommandEncodeStatesFixture::createDefaultDispatchKernel
         NEO::additionalKernelLaunchSizeParamNotSet, // additionalSizeParam
         1,                                          // partitionCount
         0,                                          // reserveExtraPayloadSpace
+        0,                                          // defaultThreadArbitrationPolicy
         false,                                      // isIndirect
         false,                                      // isPredicate
         false,                                      // isTimestampEvent