diff --git a/level_zero/core/test/unit_tests/sources/cmdlist/test_cmdlist_1.cpp b/level_zero/core/test/unit_tests/sources/cmdlist/test_cmdlist_1.cpp
index a19c34a135..442b9a83c6 100644
--- a/level_zero/core/test/unit_tests/sources/cmdlist/test_cmdlist_1.cpp
+++ b/level_zero/core/test/unit_tests/sources/cmdlist/test_cmdlist_1.cpp
@@ -1082,6 +1082,32 @@ HWTEST2_F(CommandListCreate, GivenGpuHangOnExecutingCommandListsWhenCreatingImme
     commandList->cmdQImmediate = oldCommandQueue;
 }
 
+TEST_F(CommandListCreate, givenImmediateCommandListWhenThereIsNoEnoughSpaceForImmediateCommandThenNextCommandBufferIsUsed) {
+    ze_command_queue_desc_t desc = {};
+    desc.mode = ZE_COMMAND_QUEUE_MODE_SYNCHRONOUS;
+    ze_result_t returnValue;
+    std::unique_ptr<L0::CommandList> commandList(CommandList::createImmediate(productFamily, device, &desc, false, NEO::EngineGroupType::RenderCompute, returnValue));
+    ASSERT_NE(nullptr, commandList);
+
+    commandList->isFlushTaskSubmissionEnabled = true;
+
+    EXPECT_EQ(device, commandList->device);
+    EXPECT_EQ(CommandList::CommandListType::TYPE_IMMEDIATE, commandList->cmdListType);
+    EXPECT_NE(nullptr, commandList->cmdQImmediate);
+
+    void *srcPtr = reinterpret_cast<void *>(0x1234);
+    void *dstPtr = reinterpret_cast<void *>(0x2345);
+
+    // reduce available cmd buffer size, so next command can't fit in 1st and we need to use 2nd cmd buffer
+    size_t useSize = commandList->commandContainer.getCommandStream()->getMaxAvailableSpace() - maxImmediateCommandSize + 1;
+    commandList->commandContainer.getCommandStream()->getSpace(useSize);
+    EXPECT_EQ(1U, commandList->commandContainer.getCmdBufferAllocations().size());
+
+    auto result = commandList->appendMemoryCopy(dstPtr, srcPtr, 8, nullptr, 0, nullptr);
+    ASSERT_EQ(ZE_RESULT_SUCCESS, result);
+    EXPECT_EQ(2U, commandList->commandContainer.getCmdBufferAllocations().size());
+}
+
 HWTEST2_F(CommandListCreate, GivenGpuHangOnSynchronizingWhenCreatingImmediateCommandListAndWaitingOnEventsThenDeviceLostIsReturned, IsSKL) {
     ze_command_queue_desc_t desc = {};
     desc.mode = ZE_COMMAND_QUEUE_MODE_SYNCHRONOUS;
diff --git a/shared/source/command_container/cmdcontainer.cpp b/shared/source/command_container/cmdcontainer.cpp
index d9f66adf5f..59881cc4fd 100644
--- a/shared/source/command_container/cmdcontainer.cpp
+++ b/shared/source/command_container/cmdcontainer.cpp
@@ -236,7 +236,6 @@ IndirectHeap *CommandContainer::getHeapWithRequiredSizeAndAlignment(HeapType hea
 void CommandContainer::handleCmdBufferAllocations(size_t startIndex) {
     for (size_t i = startIndex; i < cmdBufferAllocations.size(); i++) {
         if (this->reusableAllocationList) {
-            this->device->getMemoryManager()->handleFenceCompletion(cmdBufferAllocations[i]);
             reusableAllocationList->pushFrontOne(*cmdBufferAllocations[i]);
         } else {
             this->device->getMemoryManager()->freeGraphicsMemory(cmdBufferAllocations[i]);
diff --git a/shared/source/command_container/cmdcontainer.h b/shared/source/command_container/cmdcontainer.h
index 9200431bbb..69097a6397 100644
--- a/shared/source/command_container/cmdcontainer.h
+++ b/shared/source/command_container/cmdcontainer.h
@@ -35,7 +35,7 @@ enum class ErrorCode {
 
 class CommandContainer : public NonCopyableOrMovableClass {
   public:
-    static constexpr size_t defaultListCmdBufferSize = MemoryConstants::kiloByte * 256;
+    static constexpr size_t defaultListCmdBufferSize = 1u * MemoryConstants ::megaByte;
     static constexpr size_t cmdBufferReservedSize = MemoryConstants::cacheLineSize +
                                                     CSRequirements::csOverfetchSize;
     static constexpr size_t totalCmdBufferSize = defaultListCmdBufferSize + cmdBufferReservedSize;
diff --git a/shared/test/unit_test/command_container/command_container_tests.cpp b/shared/test/unit_test/command_container/command_container_tests.cpp
index 1e50020392..31812d4659 100644
--- a/shared/test/unit_test/command_container/command_container_tests.cpp
+++ b/shared/test/unit_test/command_container/command_container_tests.cpp
@@ -219,7 +219,7 @@ TEST_F(CommandContainerTest, givenCmdContainerWithAllocsListWhenAllocateAndReset
     auto cmdBuffer1 = cmdBufferAllocs[1];
 
     cmdContainer->reset();
-    EXPECT_EQ(memoryManager->handleFenceCompletionCalled, 1u);
+    EXPECT_EQ(memoryManager->handleFenceCompletionCalled, 0u);
     EXPECT_EQ(cmdBufferAllocs.size(), 1u);
     EXPECT_EQ(cmdBufferAllocs[0], cmdBuffer0);
     EXPECT_FALSE(allocList.peekIsEmpty());
@@ -231,7 +231,7 @@ TEST_F(CommandContainerTest, givenCmdContainerWithAllocsListWhenAllocateAndReset
     EXPECT_TRUE(allocList.peekIsEmpty());
 
     cmdContainer.reset();
-    EXPECT_EQ(memoryManager->handleFenceCompletionCalled, 3u);
+    EXPECT_EQ(memoryManager->handleFenceCompletionCalled, 0u);
     EXPECT_FALSE(allocList.peekIsEmpty());
     allocList.freeAllGraphicsAllocations(pDevice);
 }