diff --git a/src/common/snippets/include/snippets/pass/softmax_decomposition.hpp b/src/common/snippets/include/snippets/pass/softmax_decomposition.hpp
new file mode 100644
index 00000000000000..51d80520d4991f
--- /dev/null
+++ b/src/common/snippets/include/snippets/pass/softmax_decomposition.hpp
@@ -0,0 +1,27 @@
+// Copyright (C) 2023 Intel Corporation
+// SPDX-License-Identifier: Apache-2.0
+//
+
+#pragma once
+
+#include "openvino/pass/graph_rewrite.hpp"
+#include "openvino/pass/pattern/matcher.hpp"
+
+namespace ov {
+namespace snippets {
+namespace pass {
+
+/**
+ * @interface SoftmaxDecomposition
+ * @brief Decomposes Softmax to a range of low-level operations
+ * @ingroup snippets
+ */
+class SoftmaxDecomposition: public ov::pass::MatcherPass {
+public:
+    OPENVINO_RTTI("SoftmaxDecomposition", "0");
+    SoftmaxDecomposition();
+};
+
+}  // namespace pass
+}  // namespace snippets
+}  // namespace ov
diff --git a/src/common/snippets/src/op/subgraph.cpp b/src/common/snippets/src/op/subgraph.cpp
index d2ff6ac5d6c9a6..6b66b10fafc578 100644
--- a/src/common/snippets/src/op/subgraph.cpp
+++ b/src/common/snippets/src/op/subgraph.cpp
@@ -12,6 +12,7 @@
 #include "snippets/pass/convert_constants.hpp"
 #include "snippets/pass/convert_power_to_powerstatic.hpp"
 #include "snippets/pass/transpose_decomposition.hpp"
+#include "snippets/pass/softmax_decomposition.hpp"
 #include "snippets/pass/matmul_to_brgemm.hpp"
 #include "snippets/pass/fuse_transpose_brgemm.hpp"
 #include "snippets/pass/set_softmax_ports.hpp"
@@ -401,7 +402,11 @@ void Subgraph::data_flow_transformations(const BlockedShapeVector& blocked_input
         manager.register_pass<snippets::pass::MatMulToBrgemm>();
         manager.register_pass<snippets::pass::FuseTransposeBrgemm>();
         manager.register_pass<snippets::pass::TransposeDecomposition>();
-        manager.register_pass<snippets::pass::SetSoftmaxPorts>();
+        if (getenv("DISABLE_DATA_FLOW_DECOMPOSITION")) {
+            manager.register_pass<snippets::pass::SetSoftmaxPorts>();
+        } else {
+            manager.register_pass<snippets::pass::SoftmaxDecomposition>();
+        }
     }
     manager.register_pass<snippets::pass::BroadcastToMoveBroadcast>();
     manager.register_pass<snippets::pass::ConvertConstantsToScalars>();
diff --git a/src/common/snippets/src/pass/softmax_decomposition.cpp b/src/common/snippets/src/pass/softmax_decomposition.cpp
new file mode 100644
index 00000000000000..aeeff79128adbe
--- /dev/null
+++ b/src/common/snippets/src/pass/softmax_decomposition.cpp
@@ -0,0 +1,73 @@
+// Copyright (C) 2018-2023 Intel Corporation
+// SPDX-License-Identifier: Apache-2.0
+//
+
+#include "snippets/pass/softmax_decomposition.hpp"
+
+#include "openvino/op/softmax.hpp"
+#include "openvino/pass/pattern/op/or.hpp"
+#include "openvino/pass/pattern/op/wrap_type.hpp"
+#include "snippets/itt.hpp"
+#include "snippets/lowered/port_descriptor.hpp"
+#include "snippets/op/reduce.hpp"
+#include "snippets/snippets_isa.hpp"
+
+namespace ov {
+namespace snippets {
+namespace pass {
+using namespace lowered;
+
+SoftmaxDecomposition::SoftmaxDecomposition() {
+    MATCHER_SCOPE(SoftmaxDecomposition);
+    auto softmax_v1_m = ov::pass::pattern::wrap_type<ov::op::v1::Softmax>();
+    auto softmax_v8_m = ov::pass::pattern::wrap_type<ov::op::v8::Softmax>();
+    auto softmax_m = std::make_shared<ov::pass::pattern::op::Or>(ov::OutputVector{softmax_v1_m, softmax_v8_m});
+
+    ov::matcher_pass_callback callback = [=](ov::pass::pattern::Matcher& m) {
+        OV_ITT_SCOPED_TASK(ov::pass::itt::domains::SnippetsTransform, "Snippets::op::SoftmaxDecomposition")
+        auto softmax = m.get_match_root();
+
+        const auto& pshape = softmax->get_input_partial_shape(0);
+        OPENVINO_ASSERT(!pshape.rank().is_dynamic(), "SetSoftmaxPorts doesn't support dynamic ranks");
+        const auto rank = pshape.size();
+
+        size_t axis;
+        if (const auto softmax_v8 = ov::as_type_ptr<ov::op::v8::Softmax>(softmax)) {
+            OPENVINO_SUPPRESS_DEPRECATED_START
+            axis = ov::normalize_axis(softmax->get_friendly_name(), softmax_v8->get_axis(), rank);
+            OPENVINO_SUPPRESS_DEPRECATED_END
+        } else if (const auto softmax_v1 = ov::as_type_ptr<ov::op::v1::Softmax>(softmax)) {
+            axis = softmax_v1->get_axis();
+        } else {
+            OPENVINO_THROW("Unexpected node matched");
+        }
+
+        const auto& softmax_input = softmax->input_value(0);
+        const auto reduce_max = std::make_shared<ov::snippets::op::ReduceMax>(softmax_input, axis);
+        const auto subtract = std::make_shared<ov::op::v1::Subtract>(softmax_input, reduce_max);
+        const auto exp = std::make_shared<ov::op::v0::Exp>(subtract);
+
+        const auto reduce_sum = std::make_shared<ov::snippets::op::ReduceSum>(exp, axis);
+        const auto power = std::make_shared<ov::snippets::op::PowerStatic>(reduce_sum, -1.f);
+        const auto multiply = std::make_shared<ov::op::v1::Multiply>(exp, power);
+
+        OPENVINO_ASSERT(axis < rank, "Softmax has incorrect axis");
+        std::vector<size_t> subtensor(rank, 1);
+        for (size_t i = axis; i < rank; ++i)
+            subtensor[i] = PortDescriptor::ServiceDimensions::FULL_DIM;
+
+        PortDescriptorUtils::set_port_descriptor_ptr(reduce_max->input(0), std::make_shared<PortDescriptor>(reduce_max->input(0), subtensor));
+        PortDescriptorUtils::set_port_descriptor_ptr(reduce_sum->input(0), std::make_shared<PortDescriptor>(reduce_sum->input(0), subtensor));
+        PortDescriptorUtils::set_port_descriptor_ptr(reduce_max->output(0), std::make_shared<PortDescriptor>(reduce_max->output(0), subtensor));
+        PortDescriptorUtils::set_port_descriptor_ptr(reduce_sum->output(0), std::make_shared<PortDescriptor>(reduce_sum->output(0), subtensor));
+
+        return ov::replace_node_update_name(softmax, multiply);
+    };
+
+    auto m = std::make_shared<ov::pass::pattern::Matcher>(softmax_m, matcher_name);
+    register_matcher(m, callback);
+}
+
+}  // namespace pass
+}  // namespace snippets
+}  // namespace ov