diff --git a/projects/clr/rocclr/device/rocm/rocvirtual.cpp b/projects/clr/rocclr/device/rocm/rocvirtual.cpp
index 2ff4c3483b..2b58a4715c 100644
--- a/projects/clr/rocclr/device/rocm/rocvirtual.cpp
+++ b/projects/clr/rocclr/device/rocm/rocvirtual.cpp
@@ -2853,9 +2853,18 @@ void VirtualGPU::flush(amd::Command* list, bool wait) {
   if (skip_cpu_wait) {
     // Search for the last command in the batch to track GPU state
     amd::Command* current = list;
+    // HIP tests expect callbacks processed from another thread, hence force AQL barrier always, so
+    // HSA signal callback will process HIP callback asynchronously
+    if (list->Callback() != nullptr) {
+      hasPendingDispatch_ = true;
+    }
     while (current->getNext() != nullptr) {
       current = current->getNext();
+      if (current->Callback() != nullptr) {
+        hasPendingDispatch_ = true;
+      }
     }
+
     // Enable profiling, so runtime can track TS
     profilingBegin(*current);
 
diff --git a/projects/clr/rocclr/platform/command.cpp b/projects/clr/rocclr/platform/command.cpp
index c5af772111..2f5cffa535 100644
--- a/projects/clr/rocclr/platform/command.cpp
+++ b/projects/clr/rocclr/platform/command.cpp
@@ -105,13 +105,26 @@ bool Event::setStatus(int32_t status, uint64_t timeStamp) {
     }
   }
 
-  if (!status_.compare_exchange_strong(currentStatus, status, std::memory_order_relaxed)) {
-    // Somebody else beat us to it, let them deal with the release/signal.
-    return false;
-  }
-
-  if (callbacks_ != (CallBackEntry*)0) {
-    processCallbacks(status);
+  if (amd::IS_HIP) {
+    // HIP API doesn't have any event, associated with a callback. Hence the SW status of
+    // the event is irrelevant, during the actual callback. At the same time HIP API requires
+    // to finish the callback before HIP stream can continue. Hence runtime has to process
+    // the callback first and then update the status.
+    if (callbacks_ != (CallBackEntry*)0) {
+      processCallbacks(status);
+    }
+    if (!status_.compare_exchange_strong(currentStatus, status, std::memory_order_relaxed)) {
+      // Somebody else beat us to it, let them deal with the release/signal.
+      return false;
+    }
+  } else {
+    if (!status_.compare_exchange_strong(currentStatus, status, std::memory_order_relaxed)) {
+      // Somebody else beat us to it, let them deal with the release/signal.
+      return false;
+    }
+    if (callbacks_ != (CallBackEntry*)0) {
+      processCallbacks(status);
+    }
   }
 
   if (Agent::shouldPostEventEvents() && command().type() != 0) {
diff --git a/projects/clr/rocclr/platform/command.hpp b/projects/clr/rocclr/platform/command.hpp
index 4ae045c724..01ae5c6324 100644
--- a/projects/clr/rocclr/platform/command.hpp
+++ b/projects/clr/rocclr/platform/command.hpp
@@ -204,6 +204,9 @@ class Event : public RuntimeObject {
 
   //! RTTI internal implementation
   virtual ObjectType objectType() const { return ObjectTypeEvent; }
+
+  //! Returns the callback for this event
+  const CallBackEntry* Callback() const { return callbacks_; }
 };
 
 /*! \brief An operation that is submitted to a command queue.