diff --git a/rocclr/runtime/device/pal/palresource.cpp b/rocclr/runtime/device/pal/palresource.cpp
index 73565bac0f..1ee7d2ca37 100644
--- a/rocclr/runtime/device/pal/palresource.cpp
+++ b/rocclr/runtime/device/pal/palresource.cpp
@@ -41,6 +41,8 @@ GpuMemoryReference* GpuMemoryReference::Create(const Device& dev,
     result = dev.iDev()->CreateGpuMemory(createInfo, &memRef[1], &memRef->gpuMem_);
     if (result != Pal::Result::Success) {
       memRef->release();
+      // Free cache if PAL failed allocation
+      dev.resourceCache().free();
       return nullptr;
     }
   }