diff --git a/rocclr/device/device.hpp b/rocclr/device/device.hpp
index 523eb56385..45e0ac1dfa 100644
--- a/rocclr/device/device.hpp
+++ b/rocclr/device/device.hpp
@@ -1326,6 +1326,7 @@ class VirtualDevice : public amd::HeapObject {
   virtual void submitVirtualMap(amd::VirtualMapCommand& cmd) { ShouldNotReachHere(); }
 
   virtual address allocKernelArguments(size_t size, size_t alignment) { return nullptr; }
+  virtual void ReleaseAllHwQueues() {}
   virtual void ReleaseHwQueue() {}
 
   //! Get the blit manager object
diff --git a/rocclr/device/rocm/rocdevice.hpp b/rocclr/device/rocm/rocdevice.hpp
index fd366928ee..c1a7c3b920 100644
--- a/rocclr/device/rocm/rocdevice.hpp
+++ b/rocclr/device/rocm/rocdevice.hpp
@@ -567,6 +567,9 @@ class Device : public NullDevice {
   //! Removes a kernel from the kernel map
   void RemoveKernel(Kernel& gpuKernel) const;
 
+  // Returns the number of allocated normal queues on this device
+  uint32_t NumNormalQueues() const { return num_normal_queues_.load(); }
+
  private:
   bool create();
 
diff --git a/rocclr/device/rocm/rocvirtual.cpp b/rocclr/device/rocm/rocvirtual.cpp
index f51fd35e52..8d323c2e77 100644
--- a/rocclr/device/rocm/rocvirtual.cpp
+++ b/rocclr/device/rocm/rocvirtual.cpp
@@ -1066,6 +1066,8 @@ bool VirtualGPU::dispatchGenericAqlPacket(
     blocking = true;
   }
 
+  TrackQueueProgress(*packet, index);
+
   AqlPacket* aql_loc = &((AqlPacket*)(gpu_queue_->base_address))[index & queueMask];
   *aql_loc = *packet;
   if (header != 0) {
@@ -1241,6 +1243,8 @@ void VirtualGPU::dispatchBarrierPacket(uint16_t packetHeader, bool skipSignal,
     barrier_packet_.completion_signal = signal;
   }
 
+  TrackQueueProgress(barrier_packet_, index);
+
   // Reset fence_dirty_ flag if we submit a barrier with system scopes
   if (cache_state == amd::Device::kCacheStateSystem) {
     fence_dirty_ = false;
@@ -1336,6 +1340,8 @@ void VirtualGPU::dispatchBarrierValuePacket(uint16_t packetHeader, bool resolveD
   uint64_t index = hsa_queue_add_write_index_screlease(gpu_queue_, 1);
   uint64_t read = hsa_queue_load_read_index_relaxed(gpu_queue_);
 
+  TrackQueueProgress(barrier_value_packet_, index);
+
   while ((index - hsa_queue_load_read_index_scacquire(gpu_queue_)) >= queueMask);
   hsa_amd_barrier_value_packet_t* aql_loc = &(reinterpret_cast<hsa_amd_barrier_value_packet_t*>(
       gpu_queue_->base_address))[index & queueMask];
@@ -1465,6 +1471,10 @@ VirtualGPU::~VirtualGPU() {
   delete blitMgr_;
 
   if (tracking_created_) {
+    amd::ScopedLock l(execution());
+    if (gpu_queue_ == nullptr) {
+      gpu_queue_ = roc_device_.AcquireActiveNormalQueue();
+    }
     // Release the resources of signal
     releaseGpuMemoryFence();
   }
@@ -1673,6 +1683,18 @@ address VirtualGPU::allocKernelArguments(size_t size, size_t alignment) {
   }
 }
 
+// ================================================================================================
+void VirtualGPU::ReleaseAllHwQueues() {
+  if (roc_device_.settings().dynamic_queues_ &&
+      (roc_device_.NumNormalQueues() > GPU_MAX_HW_QUEUES)) {
+    // Lock the device to make the following thread safe
+    amd::ScopedLock lock(roc_device_.vgpusAccess());
+    for (uint idx = 0; idx < roc_device_.vgpus().size(); ++idx) {
+      roc_device_.vgpus()[idx]->ReleaseHwQueue();
+    }
+  }
+}
+
 // ================================================================================================
 void VirtualGPU::ReleaseHwQueue() {
   // Try to release normal queue to the pool of active queues
@@ -1680,8 +1702,12 @@ void VirtualGPU::ReleaseHwQueue() {
       (priority_ == amd::CommandQueue::Priority::Normal) &&
       !cooperative_ && (cuMask_.size() == 0)) {
     amd::ScopedLock lock(execution());
-    if ((gpu_queue_ != nullptr) && roc_device_.ReleaseActiveNormalQueue(gpu_queue_)) {
-      gpu_queue_ = nullptr;
+    if (gpu_queue_ != nullptr) {
+      if (IsQueueIdle()) {
+        if (roc_device_.ReleaseActiveNormalQueue(gpu_queue_)) {
+          gpu_queue_ = nullptr;
+        }
+      }
     }
   }
 }
diff --git a/rocclr/device/rocm/rocvirtual.hpp b/rocclr/device/rocm/rocvirtual.hpp
index bc683ecff8..83f80824ba 100644
--- a/rocclr/device/rocm/rocvirtual.hpp
+++ b/rocclr/device/rocm/rocvirtual.hpp
@@ -390,6 +390,7 @@ class VirtualGPU : public device::VirtualDevice {
   virtual void submitExternalSemaphoreCmd(amd::ExternalSemaphoreCmd& cmd){}
 
   virtual address allocKernelArguments(size_t size, size_t alignment) final;
+  virtual void ReleaseAllHwQueues() final;
   virtual void ReleaseHwQueue() final;
 
   /**
@@ -529,6 +530,33 @@ class VirtualGPU : public device::VirtualDevice {
   //! Resets the current queue state. Note: should be called after AQL queue becomes idle
   void ResetQueueStates();
 
+  //! Track the progress of the queue based on the last write index and completion signal
+  template <typename AqlPacket>
+  inline void TrackQueueProgress(const AqlPacket& packet, uint64_t index) {
+    // Track the progress of the current virtual queue
+    last_write_index_ = index;
+    // Update the last completion signal if the packet has one
+    if (packet.completion_signal.handle != 0) {
+      last_barrier_index_ = index;
+      last_completion_signal_ = packet.completion_signal;
+    }
+  }
+
+  //! Returns true if the queue is considered as idle. That means all submitted packets are complete.
+  //! Note: it doesn't track the state of caches
+  bool IsQueueIdle() const {
+    bool result = false;
+    // Make sure the last packet contained a completion signal
+    if (last_barrier_index_ == last_write_index_) {
+      if ((last_write_index_ == 0) && (last_completion_signal_.handle == 0)) {
+        result = true;
+      } else {
+        result = (hsa_signal_load_relaxed(last_completion_signal_) == 0);
+      }
+    }
+    return result;
+  }
+
   std::vector<amd::Memory*> pinnedMems_;   //!< Pinned memory list
 
   //! Queue state flags
@@ -595,6 +623,10 @@ class VirtualGPU : public device::VirtualDevice {
   bool fence_dirty_;                    //!< Fence modified flag
 
   std::atomic<uint> lastUsedSdmaEngineMask_;     //!< Last Used SDMA Engine mask
+  uint64_t last_write_index_ = 0;       //!< The last HW queue write index for any packet
+  uint64_t last_barrier_index_ = 0;     //!< The last HW queue write index for a packet
+                                        //!< with a complition signal
+  hsa_signal_t last_completion_signal_{}; //!< The last completion signal
 
   using KernelArgImpl = device::Settings::KernelArgImpl;
 };
diff --git a/rocclr/platform/commandqueue.cpp b/rocclr/platform/commandqueue.cpp
index 5382f2e1e7..fafc89f472 100644
--- a/rocclr/platform/commandqueue.cpp
+++ b/rocclr/platform/commandqueue.cpp
@@ -195,10 +195,13 @@ void HostQueue::finish(bool cpu_wait) {
         device_.removeFromActiveQueues(this);
         lastEnqueueCommand_->release();
         lastEnqueueCommand_ = nullptr;
-        vdev()->ReleaseHwQueue(); // we can only release HwQueue when no commmand in quque.
       }
     }
   }
+
+  // Release all HW queues, which are idle or nearly idle
+  vdev()->ReleaseAllHwQueues();
+
   command->release();
   ClPrint(LOG_DEBUG, LOG_CMD, "All commands finished for host queue : %p", this);
 }