diff --git a/onnxruntime/core/optimizer/transpose_optimizer/transpose_optimizer.cc b/onnxruntime/core/optimizer/transpose_optimizer/transpose_optimizer.cc
index b117fa5526d3b..6cdb63319a5bf 100644
--- a/onnxruntime/core/optimizer/transpose_optimizer/transpose_optimizer.cc
+++ b/onnxruntime/core/optimizer/transpose_optimizer/transpose_optimizer.cc
@@ -1979,11 +1979,18 @@ OptimizeResult OptimizeImpl(OptimizerCtx& ctx) {
         continue;
       }
 
-      auto consumers = ctx.graph.GetValueConsumers(transpose_node.Outputs()[0]);
-      bool is_part_of_qdq_group = std::find_if(consumers->nodes.cbegin(), consumers->nodes.cend(),
+      // Check if Transpose node is the only consumer of dq node
+      auto consumers_of_dq_node = ctx.graph.GetValueConsumers(dq_node->Outputs()[0]);
+      if (!consumers_of_dq_node->comprehensive || consumers_of_dq_node->nodes.size() > 1) {
+        continue;
+      }
+
+      auto consumers_of_transpose_node = ctx.graph.GetValueConsumers(transpose_node.Outputs()[0]);
+      bool is_part_of_qdq_group = std::find_if(consumers_of_transpose_node->nodes.cbegin(),
+                                               consumers_of_transpose_node->nodes.cend(),
                                                [](const std::unique_ptr<api::NodeRef>& node) {
                                                  return node->OpType() == "QuantizeLinear";
-                                               }) != consumers->nodes.cend();
+                                               }) != consumers_of_transpose_node->nodes.cend();
       if (is_part_of_qdq_group) {
         continue;
       }
diff --git a/onnxruntime/test/optimizer/qdq_test_utils.cc b/onnxruntime/test/optimizer/qdq_test_utils.cc
index ab392d9640708..a18d699560632 100644
--- a/onnxruntime/test/optimizer/qdq_test_utils.cc
+++ b/onnxruntime/test/optimizer/qdq_test_utils.cc
@@ -171,5 +171,15 @@ GetQDQTestCaseFn BuildQDQMatMulTestCase(const std::vector<int64_t>& input1_shape
   };
 }
 
+std::vector<std::string> GetNodeOpTypesInTopologicalOrder(const Graph& graph) {
+  std::vector<std::string> op_types{};
+  GraphViewer graph_viewer{graph};
+  const auto& ordering = graph_viewer.GetNodesInTopologicalOrder();
+  for (const auto node_idx : ordering) {
+    op_types.push_back(graph.GetNode(node_idx)->OpType());
+  }
+  return op_types;
+}
+
 }  // namespace test
 }  // namespace onnxruntime
\ No newline at end of file
diff --git a/onnxruntime/test/optimizer/qdq_test_utils.h b/onnxruntime/test/optimizer/qdq_test_utils.h
index 2a8d2d9a06a75..3d9f5c7271a9c 100644
--- a/onnxruntime/test/optimizer/qdq_test_utils.h
+++ b/onnxruntime/test/optimizer/qdq_test_utils.h
@@ -3,6 +3,9 @@
 
 #pragma once
 
+#include <vector>
+#include <string>
+
 #include "graph_transform_test_builder.h"
 
 #include "core/optimizer/qdq_transformer/selectors_actions/qdq_selector_action_transformer.h"
@@ -359,5 +362,7 @@ GetQDQTestCaseFn BuildQDQGemmTestCase(const std::vector<int64_t>& input1_shape,
   };
 }
 
+std::vector<std::string> GetNodeOpTypesInTopologicalOrder(const Graph& graph);
+
 }  // namespace test
 }  // namespace onnxruntime
diff --git a/onnxruntime/test/optimizer/qdq_transformer_test.cc b/onnxruntime/test/optimizer/qdq_transformer_test.cc
index 787cbc0d7021d..79bb64b1223f9 100644
--- a/onnxruntime/test/optimizer/qdq_transformer_test.cc
+++ b/onnxruntime/test/optimizer/qdq_transformer_test.cc
@@ -36,16 +36,6 @@
 namespace onnxruntime {
 namespace test {
 
-static std::vector<std::string> GetNodeOpTypesInTopologicalOrder(const Graph& graph) {
-  std::vector<std::string> op_types{};
-  GraphViewer graph_viewer{graph};
-  const auto& ordering = graph_viewer.GetNodesInTopologicalOrder();
-  for (const auto node_idx : ordering) {
-    op_types.push_back(graph.GetNode(node_idx)->OpType());
-  }
-  return op_types;
-}
-
 #if !defined(DISABLE_CONTRIB_OPS)
 
 template <typename InputType, typename WeightType, typename BiasType, typename OutputType>
diff --git a/onnxruntime/test/optimizer/transpose_optimizer_test.cc b/onnxruntime/test/optimizer/transpose_optimizer_test.cc
index 176d1541583fd..68e2be1b34cf7 100644
--- a/onnxruntime/test/optimizer/transpose_optimizer_test.cc
+++ b/onnxruntime/test/optimizer/transpose_optimizer_test.cc
@@ -8,6 +8,7 @@
 #include "graph_transform_test_builder.h"
 
 #include "core/graph/graph.h"
+#include "qdq_test_utils.h"
 #include "test/test_environment.h"
 #include "test/util/include/asserts.h"
 
@@ -3591,6 +3592,42 @@ TEST(TransposeOptimizerTests, TestDequantizeLinearNoAxis) {
                     /*opset_version*/ 10);
 }
 
+TEST(TransposeOptimizerTests, TestDequantizeLinearTransposePropagation) {
+  auto build_test_case_1 = [&](ModelTestBuilder& builder) {
+    auto* input0_arg = MakeInput<uint8_t>(builder, {{2, -1, 6, 3}}, {2, 4, 6, 3}, 0, 5);
+    auto* input1_arg = MakeInput<float>(builder, {std::vector<int64_t>{}}, std::vector<int64_t>{}, {2.3f});
+    auto* input2_arg = MakeInput<uint8_t>(builder, {std::vector<int64_t>{}}, std::vector<int64_t>{}, {10});
+    auto* dequantizelinear_1_out_0 = builder.MakeIntermediate();
+    auto* transpose_1_out_0 = builder.MakeOutput();
+    auto* transpose_2_out_0 = builder.MakeOutput();
+
+    builder.AddNode("DequantizeLinear", {input0_arg, input1_arg, input2_arg}, {dequantizelinear_1_out_0});
+
+    auto& transpose_1 = builder.AddNode("Transpose", {dequantizelinear_1_out_0}, {transpose_1_out_0});
+    transpose_1.AddAttribute("perm", std::vector<int64_t>{0, 3, 1, 2});
+
+    auto& transpose_2 = builder.AddNode("Transpose", {dequantizelinear_1_out_0}, {transpose_2_out_0});
+    transpose_2.AddAttribute("perm", std::vector<int64_t>{0, 2, 3, 1});
+  };
+
+  auto check_graph = [&](InferenceSessionWrapper& session) {
+    std::vector<std::string> expected_op_types_in_order{
+        "DequantizeLinear",
+        "Transpose",
+        "Transpose"};
+
+    const auto op_types_in_order = GetNodeOpTypesInTopologicalOrder(session.GetGraph());
+    EXPECT_EQ(op_types_in_order, expected_op_types_in_order);
+  };
+
+
+  TransformerTester(build_test_case_1,
+                    check_graph,
+                    TransformerLevel::Default,
+                    TransformerLevel::Level1,
+                    /*opset_version*/ 10);
+}
+
 TEST(TransposeOptimizerTests, TestCast) {
   auto build_test_case_1 = [&](ModelTestBuilder& builder) {
     auto* input0_arg = MakeInput<int32_t>(builder, {{-1, 4, -1, 5}}, {2, 4, 6, 5}, -1, 5);