diff --git a/projects/clr/hipamd/src/hip_device_runtime.cpp b/projects/clr/hipamd/src/hip_device_runtime.cpp
index adb58a63ec..beb00e2589 100644
--- a/projects/clr/hipamd/src/hip_device_runtime.cpp
+++ b/projects/clr/hipamd/src/hip_device_runtime.cpp
@@ -777,12 +777,14 @@ hipError_t hipSetDevice(int device) {
 
   hip::tls.isSetDeviceCalled = true;
   // Check if the device is already set
-  if (hip::tls.device_ != nullptr && hip::tls.device_->deviceId() == device) {
+  if (hip::tls.device_ != nullptr && hip::tls.device_->deviceId() == device
+      && hip::tls.device_->GetActiveStatus() == true) {
     HIP_RETURN(hipSuccess);
   }
 
   if (static_cast<unsigned int>(device) < g_devices.size()) {
     hip::setCurrentDevice(device);
+    hip::getCurrentDevice()->SetActiveStatus();
 
     HIP_RETURN(hipSuccess);
   } else if (g_devices.empty()) {
diff --git a/projects/hip-tests/catch/unit/context/CMakeLists.txt b/projects/hip-tests/catch/unit/context/CMakeLists.txt
index 8f5ac897a1..3ab58901b9 100644
--- a/projects/hip-tests/catch/unit/context/CMakeLists.txt
+++ b/projects/hip-tests/catch/unit/context/CMakeLists.txt
@@ -23,6 +23,7 @@ set(TEST_SRC
   hipDrvMemcpy.cc
   hipMemsetD8.cc
   hipCtxNotSupported.cc
+  hipCtxActivate.cc
 )
 hip_add_exe_to_target(NAME Context
                       TEST_SRC ${TEST_SRC}
diff --git a/projects/hip-tests/catch/unit/context/hipCtxActivate.cc b/projects/hip-tests/catch/unit/context/hipCtxActivate.cc
new file mode 100644
index 0000000000..5a959b02a3
--- /dev/null
+++ b/projects/hip-tests/catch/unit/context/hipCtxActivate.cc
@@ -0,0 +1,44 @@
+/*
+Copyright (c) 2025 Advanced Micro Devices, Inc. All rights reserved.
+Permission is hereby granted, free of charge, to any person obtaining a copy
+of this software and associated documentation files (the "Software"), to deal
+in the Software without restriction, including without limitation the rights
+to use, copy, modify, merge, publish, distribute, sublicense, and/or sell
+copies of the Software, and to permit persons to whom the Software is
+furnished to do so, subject to the following conditions:
+The above copyright notice and this permission notice shall be included in
+all copies or substantial portions of the Software.
+THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR
+IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY,
+FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT.  IN NO EVENT SHALL THE
+AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER
+LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM,
+OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN
+THE SOFTWARE.
+*/
+
+#include <hip_test_common.hh>
+
+/**
+ * Test Description
+ * ------------------------
+ *  - Validates that the primary context is active when hipSetDevice is called
+ *      - Expected output: is_active = 1
+ * Test source
+ * ------------------------
+ *  - unit/context/hipCtxActivate.cc
+ * Test requirements
+ * ------------------------
+ *  - HIP_VERSION >= 7.2
+ */
+TEST_CASE("Unit_hipSetDevice_CheckPrimaryCtxState") {
+  int device_id = 0;
+  HIP_CHECK(hipSetDevice(device_id));
+
+  unsigned flags;
+  int is_active;
+  HIP_CHECK(hipDevicePrimaryCtxGetState(device_id, &flags, &is_active));
+
+  REQUIRE(is_active == 1);
+}
+