diff --git a/rocclr/runtime/device/gpu/gpuresource.cpp b/rocclr/runtime/device/gpu/gpuresource.cpp
index aa3d1fdf07..d601553123 100644
--- a/rocclr/runtime/device/gpu/gpuresource.cpp
+++ b/rocclr/runtime/device/gpu/gpuresource.cpp
@@ -1937,8 +1937,8 @@ ResourceCache::findCalResource(Resource::CalResourceDesc* desc)
     GslResourceReference* ref = NULL;
     size_t  size = getResourceSize(desc);
 
-    // Early exit if resource is too big
-    if (size >= cacheSizeLimit_ || desc->skipRsrcCache_) {
+    // Early exit if resource is too big or it is for scratch buffer
+    if (size >= cacheSizeLimit_ || desc->skipRsrcCache_ || desc->scratch_) {
         //! \note we may need to free the cache here to reduce memory pressure
         return ref;
     }
diff --git a/rocclr/runtime/device/gpu/gslbe/src/rt/GSLDevice.cpp b/rocclr/runtime/device/gpu/gslbe/src/rt/GSLDevice.cpp
index 19de5ed4f9..5edfdea48c 100644
--- a/rocclr/runtime/device/gpu/gslbe/src/rt/GSLDevice.cpp
+++ b/rocclr/runtime/device/gpu/gslbe/src/rt/GSLDevice.cpp
@@ -1217,7 +1217,7 @@ CALGSLDevice::calcScratchBufferSize(uint32 regNum) const
 {
     gslProgramTargetEnum target = GSL_COMPUTE_PROGRAM;
 
-    // Determine the scratch size we need to allocate.
+    // Determine the scratch size we need to allocate
     cmScratchSpaceNeededPerShaderStage scratchSpacePerShaderStage;
     memset(&scratchSpacePerShaderStage, 0, sizeof(scratchSpacePerShaderStage));
     uint32 scratchBufferSizes[gslProgramTarget_COUNT];
@@ -1231,6 +1231,21 @@ CALGSLDevice::calcScratchBufferSize(uint32 regNum) const
 
     m_cs->CalcAllScratchBufferSizes(enabledShadersFlag, scratchSpacePerShaderStage,
                                 scratchBufferSizes);
+
+    // SWDEV-79308:
+    //   Reduce the total scratch buffer size by a factor of 4, which in effect reducing the
+    //   max. scratch waves from 32 to 8. This will avoid the required total scratch buffer
+    //   size exceeds the available local memory. (Note: the scratch buffer size needs to
+    //   be 64K alignment)
+    if (scratchBufferSizes[target] > 0)
+    {
+        scratchBufferSizes[target] = (scratchBufferSizes[target] >> 2) & 0xFFFF0000;
+
+        if (scratchBufferSizes[target] == 0) {  // assign minimum scratch buffer size of 64K
+            scratchBufferSizes[target] = 0x10000;
+        }
+    }
+
     return scratchBufferSizes[target];
 }