diff --git a/projects/clr/hipamd/src/hip_memory.cpp b/projects/clr/hipamd/src/hip_memory.cpp
index 6721b86d81..6ff0939b2c 100644
--- a/projects/clr/hipamd/src/hip_memory.cpp
+++ b/projects/clr/hipamd/src/hip_memory.cpp
@@ -344,11 +344,11 @@ hipError_t ihipMalloc(void** ptr, size_t sizeBytes, unsigned int flags)
   const auto& dev_info = amdContext->devices()[0]->info();
   hip::getCurrentDevice()->SetActiveStatus();
 
-  if (dev_info.maxPhysicalMemAllocSize_ < sizeBytes) {
-    return hipErrorOutOfMemory;
-  }
-  // PAL allocates from system memory if needed
-  if (IS_LINUX && !useHostDevice && (dev_info.maxMemAllocSize_ < sizeBytes)) {
+  size_t max_device_size = IS_LINUX ? dev_info.maxMemAllocSize_ :
+                           (dev_info.maxMemAllocSize_ +  dev_info.maxPhysicalMemAllocSize_);
+
+  if ((useHostDevice && dev_info.maxPhysicalMemAllocSize_ < sizeBytes) ||
+     (!useHostDevice && max_device_size < sizeBytes)) {
     return hipErrorOutOfMemory;
   }