diff --git a/optimum/habana/accelerate/accelerator.py b/optimum/habana/accelerate/accelerator.py
index 67aa9b8984..e5c0ea9ea9 100644
--- a/optimum/habana/accelerate/accelerator.py
+++ b/optimum/habana/accelerate/accelerator.py
@@ -568,7 +568,10 @@ def prepare_model(self, model: torch.nn.Module, device_placement: bool = None, e
                 self._models[-1] = model
         # torch.compile should be called last and only if the model isn't already compiled.
         if self.state.dynamo_plugin.backend != GaudiDynamoBackend.NO and not is_compiled_module(model):
-            model = torch.compile(model, **self.state.dynamo_plugin.to_kwargs())
+            if self.dynamic is not None:
+                model = torch.compile(model, dynamic=self.dynamic, **self.state.dynamo_plugin.to_kwargs())
+            else:
+                model = torch.compile(model, **self.state.dynamo_plugin.to_kwargs())
         return model
 
     def _prepare_deepspeed(self, *args):
diff --git a/tests/test_examples.py b/tests/test_examples.py
index c5668e5b7c..78aabcefda 100644
--- a/tests/test_examples.py
+++ b/tests/test_examples.py
@@ -319,6 +319,7 @@ def __new__(
         fsdp=False,
         torch_compile=False,
         fp8=False,
+        compile_dynamic: Optional[bool] = None,
     ):
         distribution = "single_card"
         if multi_card:
@@ -355,6 +356,7 @@ def _create_test(
         fsdp: bool = False,
         torch_compile: bool = False,
         fp8: bool = False,
+        compile_dynamic: Optional[bool] = None,
     ) -> Callable[[], None]:
         """
         Create a test function that runs an example for a specific (model_name, gaudi_config_name) pair.
@@ -479,6 +481,8 @@ def test(self):
             ):
                 extra_command_line_arguments.append("--torch_compile_backend hpu_backend")
                 extra_command_line_arguments.append("--torch_compile")
+                if compile_dynamic is not None:
+                    extra_command_line_arguments.append(f"--compile_dynamic {compile_dynamic}")
                 if "--use_hpu_graphs_for_inference" in extra_command_line_arguments:
                     extra_command_line_arguments.remove("--use_hpu_graphs_for_inference")
                 env_variables["PT_HPU_LAZY_MODE"] = "0"
@@ -774,6 +778,16 @@ class MultiCardSummarizationExampleTester(
     TASK_NAME = "cnn_dailymail"
 
 
+class MultiCardDynamicCompileSummarizationExampleTester(
+    ExampleTesterBase,
+    metaclass=ExampleTestMeta,
+    example_name="run_summarization",
+    multi_card=True,
+    compile_dynamic=True,
+):
+    TASK_NAME = "cnn_dailymail"
+
+
 class DeepspeedSummarizationExampleTester(
     ExampleTesterBase, metaclass=ExampleTestMeta, example_name="run_summarization", deepspeed=True
 ):