diff --git a/projects/clr/rocclr/runtime/device/pal/palkernel.cpp b/projects/clr/rocclr/runtime/device/pal/palkernel.cpp
index 7a4823ddaa..de15c52a93 100644
--- a/projects/clr/rocclr/runtime/device/pal/palkernel.cpp
+++ b/projects/clr/rocclr/runtime/device/pal/palkernel.cpp
@@ -29,8 +29,13 @@ namespace pal {
 void HSAILKernel::setWorkGroupInfo(const uint32_t privateSegmentSize,
                                    const uint32_t groupSegmentSize, const uint16_t numSGPRs,
                                    const uint16_t numVGPRs) {
-  workGroupInfo_.scratchRegs_ = amd::alignUp(privateSegmentSize, 16) / sizeof(uint);
-  workGroupInfo_.privateMemSize_ = privateSegmentSize;
+  workGroupInfo_.scratchRegs_ = amd::alignUp(privateSegmentSize, 16) / sizeof(uint32_t);
+  // Make sure runtime matches HW alignment, which is 256 scratch regs (DWORDs) per wave
+  constexpr uint32_t ScratchRegAlignment = 256;
+  workGroupInfo_.scratchRegs_ =
+      amd::alignUp((workGroupInfo_.scratchRegs_ * dev().info().wavefrontWidth_),
+                   ScratchRegAlignment) / dev().info().wavefrontWidth_;
+  workGroupInfo_.privateMemSize_ = workGroupInfo_.scratchRegs_ * sizeof(uint32_t);
   workGroupInfo_.localMemSize_ = workGroupInfo_.usedLDSSize_ = groupSegmentSize;
   workGroupInfo_.usedSGPRs_ = numSGPRs;
   workGroupInfo_.usedStackSize_ = 0;