diff --git a/level_zero/core/source/cmdqueue/cmdqueue.cpp b/level_zero/core/source/cmdqueue/cmdqueue.cpp
index 1899314a4a..4ab32993d4 100644
--- a/level_zero/core/source/cmdqueue/cmdqueue.cpp
+++ b/level_zero/core/source/cmdqueue/cmdqueue.cpp
@@ -215,7 +215,9 @@ CommandQueue *CommandQueue::create(uint32_t productFamily, Device *device, NEO::
         osContext.setUmdPowerHintValue(driverHandleImp->powerHint);
         osContext.reInitializeContext();
     }
+
     csr->initializeResources();
+
     csr->initDirectSubmission();
     return commandQueue;
 }
diff --git a/opencl/test/unit_test/linux/main_linux_dll.cpp b/opencl/test/unit_test/linux/main_linux_dll.cpp
index ca7ddf81ef..a5947826e6 100644
--- a/opencl/test/unit_test/linux/main_linux_dll.cpp
+++ b/opencl/test/unit_test/linux/main_linux_dll.cpp
@@ -610,7 +610,7 @@ TEST_F(DrmTests, GivenFailOnContextCreateWhenCreatingDrmThenDrmIsCreated) {
     auto drm = DrmWrap::createDrm(*rootDeviceEnvironment);
     EXPECT_NE(drm, nullptr);
     failOnContextCreate = -1;
-    EXPECT_THROW(drm->createDrmContext(1, false, false), std::exception);
+    EXPECT_EQ(-1, drm->createDrmContext(1, false, false));
     EXPECT_FALSE(drm->isPreemptionSupported());
     failOnContextCreate = 0;
 }
diff --git a/shared/source/command_stream/command_stream_receiver.cpp b/shared/source/command_stream/command_stream_receiver.cpp
index fb930d2db7..24fffe6e0e 100644
--- a/shared/source/command_stream/command_stream_receiver.cpp
+++ b/shared/source/command_stream/command_stream_receiver.cpp
@@ -266,15 +266,19 @@ void CommandStreamReceiver::fillReusableAllocationsList() {
     }
 }
 
-void CommandStreamReceiver::initializeResources() {
+bool CommandStreamReceiver::initializeResources() {
     if (!resourcesInitialized) {
         auto lock = obtainUniqueOwnership();
         if (!resourcesInitialized) {
-            osContext->ensureContextInitialized();
+            if (!osContext->ensureContextInitialized()) {
+                return false;
+            }
             this->fillReusableAllocationsList();
             this->resourcesInitialized = true;
         }
     }
+
+    return true;
 }
 
 MemoryManager *CommandStreamReceiver::getMemoryManager() const {
diff --git a/shared/source/command_stream/command_stream_receiver.h b/shared/source/command_stream/command_stream_receiver.h
index 8afbd763a6..ed09e0e195 100644
--- a/shared/source/command_stream/command_stream_receiver.h
+++ b/shared/source/command_stream/command_stream_receiver.h
@@ -223,7 +223,7 @@ class CommandStreamReceiver {
     virtual void fillReusableAllocationsList();
     virtual void setupContext(OsContext &osContext) { this->osContext = &osContext; }
     OsContext &getOsContext() const { return *osContext; }
-    void initializeResources();
+    bool initializeResources();
     TagAllocatorBase *getEventTsAllocator();
     TagAllocatorBase *getEventPerfCountAllocator(const uint32_t tagSize);
     virtual TagAllocatorBase *getTimestampPacketAllocator() = 0;
diff --git a/shared/source/device/device.cpp b/shared/source/device/device.cpp
index 6bc2386315..44137d72ba 100644
--- a/shared/source/device/device.cpp
+++ b/shared/source/device/device.cpp
@@ -370,7 +370,9 @@ bool Device::createEngine(uint32_t deviceCsrIndex, EngineTypeUsage engineTypeUsa
     auto osContext = executionEnvironment->memoryManager->createAndRegisterOsContext(commandStreamReceiver.get(), engineDescriptor);
     commandStreamReceiver->setupContext(*osContext);
     if (osContext->isImmediateContextInitializationEnabled(isDefaultEngine)) {
-        commandStreamReceiver->initializeResources();
+        if (!commandStreamReceiver->initializeResources()) {
+            return false;
+        }
     }
 
     if (!commandStreamReceiver->initializeTagAllocation()) {
diff --git a/shared/source/device/root_device.cpp b/shared/source/device/root_device.cpp
index d22bfcf243..6ee865d033 100644
--- a/shared/source/device/root_device.cpp
+++ b/shared/source/device/root_device.cpp
@@ -53,8 +53,6 @@ bool RootDevice::createEngines() {
 }
 
 void RootDevice::initializeRootCommandStreamReceiver() {
-    rootCsrCreated = true;
-
     std::unique_ptr<CommandStreamReceiver> rootCommandStreamReceiver(createCommandStream(*executionEnvironment, rootDeviceIndex, getDeviceBitfield()));
 
     auto &hwInfo = getHardwareInfo();
@@ -67,6 +65,7 @@ void RootDevice::initializeRootCommandStreamReceiver() {
 
     rootCommandStreamReceiver->setupContext(*osContext);
     rootCommandStreamReceiver->initializeResources();
+    rootCsrCreated = true;
     rootCommandStreamReceiver->initializeTagAllocation();
     rootCommandStreamReceiver->createGlobalFenceAllocation();
     rootCommandStreamReceiver->createWorkPartitionAllocation(*this);
diff --git a/shared/source/os_interface/linux/drm_neo.cpp b/shared/source/os_interface/linux/drm_neo.cpp
index 4d897d0d2c..23bf17a814 100644
--- a/shared/source/os_interface/linux/drm_neo.cpp
+++ b/shared/source/os_interface/linux/drm_neo.cpp
@@ -339,7 +339,7 @@ void Drm::setUnrecoverableContext(uint32_t drmContextId) {
     ioctlHelper->ioctl(DrmIoctl::GemContextSetparam, &contextParam);
 }
 
-uint32_t Drm::createDrmContext(uint32_t drmVmId, bool isDirectSubmissionRequested, bool isCooperativeContextRequested) {
+int Drm::createDrmContext(uint32_t drmVmId, bool isDirectSubmissionRequested, bool isCooperativeContextRequested) {
     GemContextCreateExt gcc{};
 
     if (DebugManager.flags.DirectSubmissionDrmContext.get() != -1) {
@@ -371,7 +371,11 @@ uint32_t Drm::createDrmContext(uint32_t drmVmId, bool isDirectSubmissionRequeste
     }
     auto ioctlResult = ioctlHelper->ioctl(DrmIoctl::GemContextCreateExt, &gcc);
 
-    UNRECOVERABLE_IF(ioctlResult != 0);
+    if (ioctlResult < 0) {
+        PRINT_DEBUG_STRING(DebugManager.flags.PrintDebugMessages.get(), stderr, "%s", "WARNING: GemContextCreateExt ioctl failed. Not exposing this root device\n");
+        return ioctlResult;
+    }
+
     return gcc.contextId;
 }
 
diff --git a/shared/source/os_interface/linux/drm_neo.h b/shared/source/os_interface/linux/drm_neo.h
index 798093a23a..fd8ab8e61c 100644
--- a/shared/source/os_interface/linux/drm_neo.h
+++ b/shared/source/os_interface/linux/drm_neo.h
@@ -107,7 +107,7 @@ class Drm : public DriverModel {
     int queryAdapterBDF();
     int createDrmVirtualMemory(uint32_t &drmVmId);
     void destroyDrmVirtualMemory(uint32_t drmVmId);
-    MOCKABLE_VIRTUAL uint32_t createDrmContext(uint32_t drmVmId, bool isDirectSubmissionRequested, bool isCooperativeContextRequested);
+    MOCKABLE_VIRTUAL int createDrmContext(uint32_t drmVmId, bool isDirectSubmissionRequested, bool isCooperativeContextRequested);
     void destroyDrmContext(uint32_t drmContextId);
     int queryVmId(uint32_t drmContextId, uint32_t &vmId);
     void setLowPriorityContextParam(uint32_t drmContextId);
diff --git a/shared/source/os_interface/linux/ioctl_helper.cpp b/shared/source/os_interface/linux/ioctl_helper.cpp
index f9182f4ace..097b870029 100644
--- a/shared/source/os_interface/linux/ioctl_helper.cpp
+++ b/shared/source/os_interface/linux/ioctl_helper.cpp
@@ -82,12 +82,16 @@ void IoctlHelper::logExecBuffer(const ExecBuffer &execBuffer, std::stringstream
            << " }\n";
 }
 
-uint32_t IoctlHelper::createDrmContext(Drm &drm, OsContextLinux &osContext, uint32_t drmVmId, uint32_t deviceIndex) {
+int IoctlHelper::createDrmContext(Drm &drm, OsContextLinux &osContext, uint32_t drmVmId, uint32_t deviceIndex) {
 
     const auto numberOfCCS = drm.getRootDeviceEnvironment().getHardwareInfo()->gtSystemInfo.CCSInfo.NumberOfCCSEnabled;
     const bool debuggableContext = drm.isContextDebugSupported() && drm.getRootDeviceEnvironment().executionEnvironment.isDebuggingEnabled() && !osContext.isInternalEngine();
     const bool debuggableContextCooperative = debuggableContext && numberOfCCS > 0;
     auto drmContextId = drm.createDrmContext(drmVmId, drm.isVmBindAvailable(), osContext.isCooperativeEngine() || debuggableContextCooperative);
+    if (drmContextId < 0) {
+        return drmContextId;
+    }
+
     if (drm.areNonPersistentContextsSupported()) {
         drm.setNonPersistentContext(drmContextId);
     }
diff --git a/shared/source/os_interface/linux/ioctl_helper.h b/shared/source/os_interface/linux/ioctl_helper.h
index 9d7774c776..384c9cadf3 100644
--- a/shared/source/os_interface/linux/ioctl_helper.h
+++ b/shared/source/os_interface/linux/ioctl_helper.h
@@ -119,7 +119,7 @@ class IoctlHelper {
     virtual bool checkIfIoctlReinvokeRequired(int error, DrmIoctl ioctlRequest) const;
     virtual std::vector<MemoryRegion> translateToMemoryRegions(const std::vector<uint8_t> &regionInfo);
 
-    virtual uint32_t createDrmContext(Drm &drm, OsContextLinux &osContext, uint32_t drmVmId, uint32_t deviceIndex);
+    virtual int createDrmContext(Drm &drm, OsContextLinux &osContext, uint32_t drmVmId, uint32_t deviceIndex);
     std::vector<EngineCapabilities> translateToEngineCaps(const std::vector<uint8_t> &data);
 
     void fillExecObject(ExecObject &execObject, uint32_t handle, uint64_t gpuAddress, uint32_t drmContextId, bool bindInfo, bool isMarkedForCapture);
diff --git a/shared/source/os_interface/linux/os_context_linux.cpp b/shared/source/os_interface/linux/os_context_linux.cpp
index 9fe4607d65..27db02282a 100644
--- a/shared/source/os_interface/linux/os_context_linux.cpp
+++ b/shared/source/os_interface/linux/os_context_linux.cpp
@@ -31,7 +31,7 @@ OsContextLinux::OsContextLinux(Drm &drm, uint32_t rootDeviceIndex, uint32_t cont
     : OsContext(rootDeviceIndex, contextId, engineDescriptor),
       drm(drm) {}
 
-void OsContextLinux::initializeContext() {
+bool OsContextLinux::initializeContext() {
     auto hwInfo = drm.getRootDeviceEnvironment().getHardwareInfo();
     auto defaultEngineType = getChosenEngineType(*hwInfo);
 
@@ -50,6 +50,9 @@ void OsContextLinux::initializeContext() {
         if (deviceBitfield.test(deviceIndex)) {
             auto drmVmId = drm.getVirtualMemoryAddressSpace(deviceIndex);
             auto drmContextId = drm.getIoctlHelper()->createDrmContext(drm, *this, drmVmId, deviceIndex);
+            if (drmContextId < 0) {
+                return false;
+            }
 
             this->drmContextIds.push_back(drmContextId);
 
@@ -63,6 +66,7 @@ void OsContextLinux::initializeContext() {
             }
         }
     }
+    return true;
 }
 
 bool OsContextLinux::isDirectSubmissionSupported(const HardwareInfo &hwInfo) const {
diff --git a/shared/source/os_interface/linux/os_context_linux.h b/shared/source/os_interface/linux/os_context_linux.h
index b9cd79bc31..076775cac1 100644
--- a/shared/source/os_interface/linux/os_context_linux.h
+++ b/shared/source/os_interface/linux/os_context_linux.h
@@ -51,7 +51,7 @@ class OsContextLinux : public OsContext {
     }
 
   protected:
-    void initializeContext() override;
+    bool initializeContext() override;
 
     std::atomic<uint32_t> tlbFlushCounter{0};
     std::atomic<uint32_t> lastFlushedTlbFlushCounter{0};
diff --git a/shared/source/os_interface/linux/xe/ioctl_helper_xe.cpp b/shared/source/os_interface/linux/xe/ioctl_helper_xe.cpp
index 87d9c33cc4..ecda06b3fe 100644
--- a/shared/source/os_interface/linux/xe/ioctl_helper_xe.cpp
+++ b/shared/source/os_interface/linux/xe/ioctl_helper_xe.cpp
@@ -1081,7 +1081,7 @@ void IoctlHelperXe::xeShowBindTable() {
 #endif
 }
 
-uint32_t IoctlHelperXe::createDrmContext(Drm &drm, OsContextLinux &osContext, uint32_t drmVmId, uint32_t deviceIndex) {
+int IoctlHelperXe::createDrmContext(Drm &drm, OsContextLinux &osContext, uint32_t drmVmId, uint32_t deviceIndex) {
     struct drm_xe_engine_create create = {};
     uint32_t drmContextId = 0;
     struct drm_xe_engine_class_instance *currentEngine = nullptr;
diff --git a/shared/source/os_interface/linux/xe/ioctl_helper_xe.h b/shared/source/os_interface/linux/xe/ioctl_helper_xe.h
index dea62f6c21..44d2d34fdc 100644
--- a/shared/source/os_interface/linux/xe/ioctl_helper_xe.h
+++ b/shared/source/os_interface/linux/xe/ioctl_helper_xe.h
@@ -85,7 +85,7 @@ class IoctlHelperXe : public IoctlHelper {
     int getDrmParamValue(DrmParam drmParam) const override;
     int getDrmParamValueBase(DrmParam drmParam) const override;
     std::string getIoctlString(DrmIoctl ioctlRequest) const override;
-    uint32_t createDrmContext(Drm &drm, OsContextLinux &osContext, uint32_t drmVmId, uint32_t deviceIndex) override;
+    int createDrmContext(Drm &drm, OsContextLinux &osContext, uint32_t drmVmId, uint32_t deviceIndex) override;
     std::string getDrmParamString(DrmParam param) const override;
 
     std::string getFileForMaxGpuFrequency() const override;
diff --git a/shared/source/os_interface/os_context.cpp b/shared/source/os_interface/os_context.cpp
index 2c885dbf2e..13d0dcfdbf 100644
--- a/shared/source/os_interface/os_context.cpp
+++ b/shared/source/os_interface/os_context.cpp
@@ -45,7 +45,7 @@ bool OsContext::isImmediateContextInitializationEnabled(bool isDefaultEngine) co
     return false;
 }
 
-void OsContext::ensureContextInitialized() {
+bool OsContext::ensureContextInitialized() {
     std::call_once(contextInitializedFlag, [this] {
         if (DebugManager.flags.PrintOsContextInitializations.get()) {
             printf("OsContext initialization: contextId=%d usage=%s type=%s isRootDevice=%d\n",
@@ -55,9 +55,13 @@ void OsContext::ensureContextInitialized() {
                    static_cast<int>(rootDevice));
         }
 
-        initializeContext();
-        contextInitialized = true;
+        if (!initializeContext()) {
+            contextInitialized = false;
+        } else {
+            contextInitialized = true;
+        }
     });
+    return contextInitialized;
 }
 
 bool OsContext::isDirectSubmissionAvailable(const HardwareInfo &hwInfo, bool &submitOnInit) {
diff --git a/shared/source/os_interface/os_context.h b/shared/source/os_interface/os_context.h
index 431dece039..c6cc9ea953 100644
--- a/shared/source/os_interface/os_context.h
+++ b/shared/source/os_interface/os_context.h
@@ -1,5 +1,5 @@
 /*
- * Copyright (C) 2018-2022 Intel Corporation
+ * Copyright (C) 2018-2023 Intel Corporation
  *
  * SPDX-License-Identifier: MIT
  *
@@ -24,7 +24,7 @@ class OsContext : public ReferenceTrackedObject<OsContext> {
 
     bool isImmediateContextInitializationEnabled(bool isDefaultEngine) const;
     bool isInitialized() const { return contextInitialized; }
-    void ensureContextInitialized();
+    bool ensureContextInitialized();
 
     uint32_t getContextId() const { return contextId; }
     uint32_t getNumSupportedDevices() const { return numSupportedDevices; }
@@ -57,7 +57,7 @@ class OsContext : public ReferenceTrackedObject<OsContext> {
     uint32_t getRootDeviceIndex() { return rootDeviceIndex; }
 
   protected:
-    virtual void initializeContext() {}
+    virtual bool initializeContext() { return true; }
 
     const uint32_t rootDeviceIndex;
     const uint32_t contextId;
diff --git a/shared/source/os_interface/windows/os_context_win.cpp b/shared/source/os_interface/windows/os_context_win.cpp
index ae02039650..ef0162e2f8 100644
--- a/shared/source/os_interface/windows/os_context_win.cpp
+++ b/shared/source/os_interface/windows/os_context_win.cpp
@@ -1,5 +1,5 @@
 /*
- * Copyright (C) 2020-2022 Intel Corporation
+ * Copyright (C) 2020-2023 Intel Corporation
  *
  * SPDX-License-Identifier: MIT
  *
@@ -28,7 +28,7 @@ OsContextWin::OsContextWin(Wddm &wddm, uint32_t rootDeviceIndex, uint32_t contex
       wddm(wddm) {
 }
 
-void OsContextWin::initializeContext() {
+bool OsContextWin::initializeContext() {
 
     if (wddm.getRootDeviceEnvironment().executionEnvironment.isDebuggingEnabled()) {
         debuggableContext = wddm.getRootDeviceEnvironment().osInterface->isDebugAttachAvailable() && !isInternalEngine();
@@ -43,6 +43,8 @@ void OsContextWin::initializeContext() {
 
     residencyController.registerCallback();
     UNRECOVERABLE_IF(!residencyController.isInitialized());
+
+    return true;
 };
 
 void OsContextWin::reInitializeContext() {
diff --git a/shared/source/os_interface/windows/os_context_win.h b/shared/source/os_interface/windows/os_context_win.h
index 2add071e0f..6b15ae9d9f 100644
--- a/shared/source/os_interface/windows/os_context_win.h
+++ b/shared/source/os_interface/windows/os_context_win.h
@@ -1,5 +1,5 @@
 /*
- * Copyright (C) 2018-2022 Intel Corporation
+ * Copyright (C) 2018-2023 Intel Corporation
  *
  * SPDX-License-Identifier: MIT
  *
@@ -39,7 +39,7 @@ class OsContextWin : public OsContext {
     uint32_t getDeviceNodeMask();
 
   protected:
-    void initializeContext() override;
+    bool initializeContext() override;
 
     WddmResidencyController residencyController;
     HardwareQueue hardwareQueue;
diff --git a/shared/test/common/libult/linux/drm_mock.h b/shared/test/common/libult/linux/drm_mock.h
index d9fb0aad23..daee7786cb 100644
--- a/shared/test/common/libult/linux/drm_mock.h
+++ b/shared/test/common/libult/linux/drm_mock.h
@@ -112,7 +112,7 @@ class DrmMock : public Drm {
         queryPageFaultSupportCalled = true;
     }
 
-    uint32_t createDrmContext(uint32_t drmVmId, bool isDirectSubmissionRequested, bool isCooperativeContextRequested) override {
+    int createDrmContext(uint32_t drmVmId, bool isDirectSubmissionRequested, bool isCooperativeContextRequested) override {
         capturedCooperativeContextRequest = isCooperativeContextRequested;
         if (callBaseCreateDrmContext) {
             return Drm::createDrmContext(drmVmId, isDirectSubmissionRequested, isCooperativeContextRequested);
diff --git a/shared/test/unit_test/command_stream/command_stream_receiver_tests.cpp b/shared/test/unit_test/command_stream/command_stream_receiver_tests.cpp
index 0afcb61ac5..f6204c5902 100644
--- a/shared/test/unit_test/command_stream/command_stream_receiver_tests.cpp
+++ b/shared/test/unit_test/command_stream/command_stream_receiver_tests.cpp
@@ -18,6 +18,7 @@
 #include "shared/source/memory_manager/unified_memory_manager.h"
 #include "shared/source/os_interface/device_factory.h"
 #include "shared/source/os_interface/hw_info_config.h"
+#include "shared/source/os_interface/os_context.h"
 #include "shared/source/os_interface/os_interface.h"
 #include "shared/source/utilities/tag_allocator.h"
 #include "shared/test/common/cmd_parse/gen_cmd_parse.h"
@@ -111,6 +112,28 @@ HWTEST_F(CommandStreamReceiverTest, WhenInitializeResourcesThenCallFillReusableA
     EXPECT_EQ(1u, pDevice->getUltCommandStreamReceiver<FamilyType>().fillReusableAllocationsListCalled);
 }
 
+HWTEST_F(CommandStreamReceiverTest, whenContextCreateReturnsFalseThenExpectCSRInitializeResourcesFail) {
+    struct MyOsContext : OsContext {
+        MyOsContext(uint32_t contextId,
+                    const EngineDescriptor &engineDescriptor) : OsContext(0, contextId, engineDescriptor) {}
+
+        bool initializeContext() override {
+            initializeContextCalled++;
+            return false;
+        }
+
+        size_t initializeContextCalled = 0u;
+    };
+
+    const EngineTypeUsage engineTypeUsageRegular{aub_stream::ENGINE_RCS, EngineUsage::Regular};
+    MyOsContext osContext{0, EngineDescriptorHelper::getDefaultDescriptor(engineTypeUsageRegular)};
+    auto &ultCsr = pDevice->getUltCommandStreamReceiver<FamilyType>();
+    ultCsr.resourcesInitialized = false;
+    ultCsr.setupContext(osContext);
+    bool ret = ultCsr.initializeResources();
+    EXPECT_FALSE(ret);
+}
+
 HWTEST_F(CommandStreamReceiverTest, givenCsrWhenCallFillReusableAllocationsListThenAllocateCommandBufferAndMakeItResident) {
     DebugManagerStateRestore stateRestore;
     DebugManager.flags.SetAmountOfReusableAllocations.set(1);
diff --git a/shared/test/unit_test/os_interface/linux/drm_query_prelim_tests.cpp b/shared/test/unit_test/os_interface/linux/drm_query_prelim_tests.cpp
index aa7006a86b..86a471622a 100644
--- a/shared/test/unit_test/os_interface/linux/drm_query_prelim_tests.cpp
+++ b/shared/test/unit_test/os_interface/linux/drm_query_prelim_tests.cpp
@@ -108,7 +108,7 @@ TEST(DrmQueryTest, givenCreateContextWithAccessCountersWhenDrmContextIsCreatedTh
     DrmQueryMock drm{*executionEnvironment->rootDeviceEnvironments[0]};
 
     auto ret = drm.createDrmContext(0, false, false);
-    EXPECT_EQ(0u, ret);
+    EXPECT_EQ(0, ret);
 
     EXPECT_TRUE(drm.receivedContextCreateFlags & I915_CONTEXT_CREATE_FLAGS_USE_EXTENSIONS);
 
@@ -130,6 +130,15 @@ TEST(DrmQueryTest, givenCreateContextWithAccessCountersWhenDrmContextIsCreatedTh
     EXPECT_EQ(static_cast<uint8_t>(DrmPrelimHelper::getContextAcgValues()[1]), paramAcc->granularity);
 }
 
+TEST(DrmQueryTest, GivenDrmWhenAskedForContextThatFailsThenFalseIsReturned) {
+    auto executionEnvironment = std::make_unique<MockExecutionEnvironment>();
+    DrmMock *pDrm = new DrmMock(*executionEnvironment->rootDeviceEnvironments[0]);
+    pDrm->storedRetVal = -1;
+    EXPECT_EQ(-1, pDrm->createDrmContext(1, false, false));
+    pDrm->storedRetVal = 0;
+    delete pDrm;
+}
+
 TEST(DrmQueryTest, givenCreateContextWithAccessCounterWhenDrmContextIsCreatedThenProgramAccessCountersWithSpecifiedTriggeringThreshold) {
     DebugManagerStateRestore restorer;
     DebugManager.flags.CreateContextWithAccessCounters.set(0);
@@ -141,7 +150,7 @@ TEST(DrmQueryTest, givenCreateContextWithAccessCounterWhenDrmContextIsCreatedThe
         DebugManager.flags.AccessCountersTrigger.set(threshold);
 
         auto ret = drm.createDrmContext(0, false, false);
-        EXPECT_EQ(0u, ret);
+        EXPECT_EQ(0, ret);
 
         EXPECT_TRUE(drm.receivedContextCreateFlags & I915_CONTEXT_CREATE_FLAGS_USE_EXTENSIONS);
 
@@ -175,7 +184,7 @@ TEST(DrmQueryTest, givenCreateContextWithAccessCounterWhenDrmContextIsCreatedThe
         DebugManager.flags.AccessCountersGranularity.set(granularity);
 
         auto ret = drm.createDrmContext(0, false, false);
-        EXPECT_EQ(0u, ret);
+        EXPECT_EQ(0, ret);
 
         EXPECT_TRUE(drm.receivedContextCreateFlags & I915_CONTEXT_CREATE_FLAGS_USE_EXTENSIONS);
 
diff --git a/shared/test/unit_test/os_interface/linux/drm_tests.cpp b/shared/test/unit_test/os_interface/linux/drm_tests.cpp
index ae171c61dd..1a46391c35 100644
--- a/shared/test/unit_test/os_interface/linux/drm_tests.cpp
+++ b/shared/test/unit_test/os_interface/linux/drm_tests.cpp
@@ -348,11 +348,19 @@ TEST(DrmTest, GivenDrmWhenAskedForContextThatFailsThenFalseIsReturned) {
     auto executionEnvironment = std::make_unique<MockExecutionEnvironment>();
     DrmMock *pDrm = new DrmMock(*executionEnvironment->rootDeviceEnvironments[0]);
     pDrm->storedRetVal = -1;
-    EXPECT_THROW(pDrm->createDrmContext(1, false, false), std::exception);
+    EXPECT_EQ(-1, pDrm->createDrmContext(1, false, false));
     pDrm->storedRetVal = 0;
     delete pDrm;
 }
 
+TEST(DrmTest, GivenDrmWhenAskedForContextThatIsSuccessThenTrueIsReturned) {
+    auto executionEnvironment = std::make_unique<MockExecutionEnvironment>();
+    DrmMock *pDrm = new DrmMock(*executionEnvironment->rootDeviceEnvironments[0]);
+    pDrm->storedRetVal = 0;
+    EXPECT_EQ(0, pDrm->createDrmContext(1, false, false));
+    delete pDrm;
+}
+
 TEST(DrmTest, givenDrmWhenOsContextIsCreatedThenCreateAndDestroyNewDrmOsContext) {
     auto executionEnvironment = std::make_unique<MockExecutionEnvironment>();
     DrmMock drmMock(*executionEnvironment->rootDeviceEnvironments[0]);
diff --git a/shared/test/unit_test/os_interface/linux/os_context_linux_tests.cpp b/shared/test/unit_test/os_interface/linux/os_context_linux_tests.cpp
index a168e12583..7d3f55edbc 100644
--- a/shared/test/unit_test/os_interface/linux/os_context_linux_tests.cpp
+++ b/shared/test/unit_test/os_interface/linux/os_context_linux_tests.cpp
@@ -8,6 +8,7 @@
 #include "shared/source/os_interface/linux/drm_memory_operations_handler.h"
 #include "shared/source/os_interface/linux/os_context_linux.h"
 #include "shared/test/common/helpers/engine_descriptor_helper.h"
+#include "shared/test/common/libult/linux/drm_mock.h"
 #include "shared/test/common/mocks/mock_execution_environment.h"
 #include "shared/test/common/os_interface/linux/device_command_stream_fixture.h"
 
@@ -25,3 +26,14 @@ TEST(OSContextLinux, givenReinitializeContextWhenContextIsInitThenContextIsStill
     EXPECT_NO_THROW(osContext.reInitializeContext());
     EXPECT_NO_THROW(osContext.ensureContextInitialized());
 }
+
+TEST(OSContextLinux, givenInitializeContextWhenContextCreateIoctlFailsThenContextNotInitialized) {
+    auto executionEnvironment = std::make_unique<MockExecutionEnvironment>();
+    DrmMock *pDrm = new DrmMock(*executionEnvironment->rootDeviceEnvironments[0]);
+    pDrm->storedRetVal = -1;
+    EXPECT_EQ(-1, pDrm->createDrmContext(1, false, false));
+
+    OsContextLinux osContext(*pDrm, 0, 0u, EngineDescriptorHelper::getDefaultDescriptor());
+    EXPECT_EQ(false, osContext.ensureContextInitialized());
+    delete pDrm;
+}
\ No newline at end of file
diff --git a/shared/test/unit_test/os_interface/os_context_tests.cpp b/shared/test/unit_test/os_interface/os_context_tests.cpp
index 8229c7cbd0..d9d0e122ed 100644
--- a/shared/test/unit_test/os_interface/os_context_tests.cpp
+++ b/shared/test/unit_test/os_interface/os_context_tests.cpp
@@ -1,5 +1,5 @@
 /*
- * Copyright (C) 2019-2022 Intel Corporation
+ * Copyright (C) 2019-2023 Intel Corporation
  *
  * SPDX-License-Identifier: MIT
  *
@@ -166,13 +166,35 @@ TEST_F(DeferredOsContextCreationTests, givenBlitterEngineWhenCreatingOsContextTh
     expectImmediateContextCreation(engineTypeUsageBlitter, false);
 }
 
+TEST_F(DeferredOsContextCreationTests, givenEnsureContextInitializeCalledAndReturnsErrorThenOsContextIsNotInitialized) {
+    struct MyOsContext : OsContext {
+        MyOsContext(uint32_t contextId,
+                    const EngineDescriptor &engineDescriptor) : OsContext(0, contextId, engineDescriptor) {}
+
+        bool initializeContext() override {
+            initializeContextCalled++;
+            return false;
+        }
+
+        size_t initializeContextCalled = 0u;
+    };
+
+    MyOsContext osContext{0, EngineDescriptorHelper::getDefaultDescriptor(engineTypeUsageRegular)};
+    EXPECT_FALSE(osContext.isInitialized());
+
+    osContext.ensureContextInitialized();
+    EXPECT_FALSE(osContext.isInitialized());
+    EXPECT_EQ(1u, osContext.initializeContextCalled);
+}
+
 TEST_F(DeferredOsContextCreationTests, givenEnsureContextInitializeCalledMultipleTimesWhenOsContextIsCreatedThenInitializeOnlyOnce) {
     struct MyOsContext : OsContext {
         MyOsContext(uint32_t contextId,
                     const EngineDescriptor &engineDescriptor) : OsContext(0, contextId, engineDescriptor) {}
 
-        void initializeContext() override {
+        bool initializeContext() override {
             initializeContextCalled++;
+            return true;
         }
 
         size_t initializeContextCalled = 0u;