diff --git a/projects/hip-tests/catch/unit/rtc/CMakeLists.txt b/projects/hip-tests/catch/unit/rtc/CMakeLists.txt
index 42d5ec5d9a..a1aea77c78 100644
--- a/projects/hip-tests/catch/unit/rtc/CMakeLists.txt
+++ b/projects/hip-tests/catch/unit/rtc/CMakeLists.txt
@@ -9,6 +9,7 @@ set(TEST_SRC
 # AMD only tests
 set(AMD_TEST_SRC
     customOptions.cc
+    hipRtcBfloat16.cc
     linker.cc
 )
 
diff --git a/projects/hip-tests/catch/unit/rtc/hipRtcBfloat16.cc b/projects/hip-tests/catch/unit/rtc/hipRtcBfloat16.cc
new file mode 100644
index 0000000000..9f4404c288
--- /dev/null
+++ b/projects/hip-tests/catch/unit/rtc/hipRtcBfloat16.cc
@@ -0,0 +1,109 @@
+/*
+Copyright (c) 2022 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.
+*/
+
+// This test verifies the accuracy of hip_bfloat16 and its usage with hiprtc
+
+#include <hip_test_common.hh>
+#include <hip/hiprtc.h>
+#include <hip/hip_runtime.h>
+#include <hip/hip_bfloat16.h>
+#include <cassert>
+#include <cstddef>
+#include <memory>
+#include <iostream>
+#include <iterator>
+#include <vector>
+#include <cmath>
+
+const char* kernelname = "test_hip_bfloat16";
+
+static constexpr auto code{
+    R"(
+extern "C"
+__global__
+void test_hip_bfloat16(float* f, bool* result)
+{
+    float &f_a = *f;
+    hip_bfloat16 bf_a(f_a);
+    float f_c = float(bf_a);
+    // float relative error should be less than 1/(2^7) since bfloat16
+    // has 7 bits mantissa.
+    if (fabs(f_c - f_a) / f_a <= 1.0 / 128) {
+     *result = true;
+    } else {
+     *result = false;
+    }
+}
+)"};
+
+TEST_CASE("Unit_hiprtc_test_hip_bfloat16") {
+  using namespace std;
+  hiprtcProgram prog;
+  HIPRTC_CHECK(hiprtcCreateProgram(&prog, code, "code.cu", 0, nullptr, nullptr));
+  hipDeviceProp_t props;
+  int device = 0;
+  HIP_CHECK(hipGetDeviceProperties(&props, device));
+#ifdef __HIP_PLATFORM_AMD__
+  std::string sarg = std::string("--gpu-architecture=") + props.gcnArchName;
+#else
+  std::string sarg = std::string("--gpu-architecture=compute_")
+    + std::to_string(props.major) + std::to_string(props.minor);
+#endif
+  vector<const char*> opts;
+  opts.push_back(sarg.c_str());
+  hiprtcResult compileResult{hiprtcCompileProgram(prog, opts.size(), opts.data())};
+  size_t logSize;
+  HIPRTC_CHECK(hiprtcGetProgramLogSize(prog, &logSize));
+  if (logSize) {
+    string log(logSize, '\0');
+    HIPRTC_CHECK(hiprtcGetProgramLog(prog, &log[0]));
+    std::cout << log << '\n';
+  }
+  REQUIRE(compileResult == HIPRTC_SUCCESS);
+  size_t codeSize;
+  HIPRTC_CHECK(hiprtcGetCodeSize(prog, &codeSize));
+  vector<char> codec(codeSize);
+  HIPRTC_CHECK(hiprtcGetCode(prog, codec.data()));
+  HIPRTC_CHECK(hiprtcDestroyProgram(&prog));
+  float h_a = 10.0f;
+  float* f_a;
+  bool *d_result;
+  HIP_CHECK(hipMalloc(&f_a, sizeof(float)));
+  HIP_CHECK(hipMalloc(&d_result, sizeof(bool)));
+  HIP_CHECK(hipMemcpy(f_a, &h_a, sizeof(float), hipMemcpyHostToDevice));
+  hipModule_t module;
+  hipFunction_t function;
+  HIP_CHECK(hipModuleLoadData(&module, codec.data()));
+  HIP_CHECK(hipModuleGetFunction(&function, module, kernelname));
+  struct {
+    float *a_;
+    bool *b_;
+  } args{f_a, d_result};
+  auto sizeofargs = sizeof(args);
+  void* config[] = {HIP_LAUNCH_PARAM_BUFFER_POINTER, &args, HIP_LAUNCH_PARAM_BUFFER_SIZE,
+                    &sizeofargs, HIP_LAUNCH_PARAM_END};
+  HIP_CHECK(hipModuleLaunchKernel(function, 1, 1, 1, 1, 1, 1, 0, nullptr, nullptr, config));
+  HIP_CHECK(hipDeviceSynchronize());
+  bool h_result;
+  HIP_CHECK(hipMemcpyDtoH(&h_result, reinterpret_cast<hipDeviceptr_t>(d_result), sizeof(bool)));
+  HIP_CHECK(hipFree(d_result));
+  HIP_CHECK(hipModuleUnload(module));
+  // Result returned is true if the hip_bfloat16 accuracy is as expected
+  REQUIRE(h_result == true);
+}