diff --git a/shared/offline_compiler/source/ocloc_fatbinary.cpp b/shared/offline_compiler/source/ocloc_fatbinary.cpp
index d25a8f61f9..dd8a58d9a9 100644
--- a/shared/offline_compiler/source/ocloc_fatbinary.cpp
+++ b/shared/offline_compiler/source/ocloc_fatbinary.cpp
@@ -20,6 +20,7 @@
 #include "shared/source/helpers/file_io.h"
 #include "shared/source/helpers/hw_info.h"
 #include "shared/source/helpers/product_config_helper.h"
+#include "shared/source/utilities/directory.h"
 
 #include "igfxfmid.h"
 #include "platforms.h"
@@ -424,14 +425,15 @@ int buildFatBinary(const std::vector<std::string> &args, OclocArgHelper *argHelp
 
     std::string fatbinaryFileName = "";
 
-    if (false == outputDirectory.empty()) {
+    if (!outputDirectory.empty()) {
         fatbinaryFileName = outputDirectory + "/";
+        NEO::Directory::getDirectories(outputDirectory, NEO::Directory::createDirs);
     }
 
-    if (false == outputFileName.empty()) {
+    if (!outputFileName.empty()) {
         fatbinaryFileName += outputFileName;
     } else {
-        if (false == inputFileName.empty()) {
+        if (!inputFileName.empty()) {
             fatbinaryFileName += OfflineCompiler::getFileNameTrunk(inputFileName) + ".ar";
         }
     }
diff --git a/shared/source/utilities/directory.h b/shared/source/utilities/directory.h
index a834a1c476..3ac464106d 100644
--- a/shared/source/utilities/directory.h
+++ b/shared/source/utilities/directory.h
@@ -1,5 +1,5 @@
 /*
- * Copyright (C) 2018-2023 Intel Corporation
+ * Copyright (C) 2018-2024 Intel Corporation
  *
  * SPDX-License-Identifier: MIT
  *
@@ -7,6 +7,7 @@
 
 #pragma once
 #include <cinttypes>
+#include <optional>
 #include <string.h>
 #include <string>
 #include <vector>
@@ -15,9 +16,33 @@ namespace NEO {
 
 namespace Directory {
 extern bool returnEmptyFilesVector;
+inline constexpr char returnDirs = 1 << 0;
+inline constexpr char createDirs = 1 << 1;
 
 std::vector<std::string> getFiles(const std::string &path);
 void createDirectory(const std::string &path);
+
+inline std::optional<std::vector<std::string>> getDirectories(const std::string &path, char flags) {
+    std::optional<std::vector<std::string>> directories;
+    if (flags & returnDirs) {
+        directories.emplace();
+    }
+    std::string tmp;
+    size_t pos = 0;
+
+    while (pos != std::string::npos) {
+        pos = path.find_first_of("/\\", pos + 1);
+        tmp = path.substr(0, pos);
+        if (flags & createDirs) {
+            createDirectory(tmp);
+        }
+        if (flags & returnDirs) {
+            directories->push_back(tmp);
+        }
+    }
+    return directories;
+}
+
 } // namespace Directory
 
 inline int parseBdfString(const std::string &pciBDF, uint16_t &domain, uint8_t &bus, uint8_t &device, uint8_t &function) {
diff --git a/shared/source/utilities/linux/directory.cpp b/shared/source/utilities/linux/directory.cpp
index 0b32b5be19..579595569d 100644
--- a/shared/source/utilities/linux/directory.cpp
+++ b/shared/source/utilities/linux/directory.cpp
@@ -1,5 +1,5 @@
 /*
- * Copyright (C) 2018-2023 Intel Corporation
+ * Copyright (C) 2018-2024 Intel Corporation
  *
  * SPDX-License-Identifier: MIT
  *
@@ -45,6 +45,7 @@ std::vector<std::string> getFiles(const std::string &path) {
 void createDirectory(const std::string &path) {
     const mode_t mode = 0777; // 777 in base 8
     [[maybe_unused]] auto status = mkdir(path.c_str(), mode);
-    DEBUG_BREAK_IF(status != 0);
+    DEBUG_BREAK_IF(status != 0 && errno != EEXIST);
 }
+
 }; // namespace NEO::Directory