diff --git a/sycl/test-e2e/Graph/Update/regression_padded_parameter.cpp b/sycl/test-e2e/Graph/Update/regression_padded_parameter.cpp
new file mode 100644
index 0000000000000..a3c5a7b4e9dd5
--- /dev/null
+++ b/sycl/test-e2e/Graph/Update/regression_padded_parameter.cpp
@@ -0,0 +1,49 @@
+// RUN: %{build} -o %t.out
+// RUN: %{run} %t.out
+// Extra run to check for leaks in Level Zero using UR_L0_LEAKS_DEBUG
+// RUN: %if level_zero %{env SYCL_PI_LEVEL_ZERO_USE_IMMEDIATE_COMMANDLISTS=0 %{l0_leak_check} %{run} %t.out 2>&1 | FileCheck %s --implicit-check-not=LEAK %}
+// Extra run to check for immediate-command-list in Level Zero
+// RUN: %if level_zero %{env SYCL_PI_LEVEL_ZERO_USE_IMMEDIATE_COMMANDLISTS=1 %{l0_leak_check} %{run} %t.out 2>&1 | FileCheck %s --implicit-check-not=LEAK %}
+
+// Tests that graph update works for kernel nodes whose parameters are large
+// structs with padding (added by the compiler).
+#include "../graph_common.hpp"
+
+int main() {
+
+  constexpr size_t Size = 8;
+
+  /* Since val1 is smaller than val2, the compiler should automatically add
+   * padding to val1 */
+  struct PaddedStruct {
+    uint8_t val1 = 20;
+    size_t val2[Size] = {1, 2, 3, 4, 5, 6, 7, 8};
+  } PaddedKernelParam;
+
+  static_assert(sizeof(PaddedStruct) == sizeof(size_t) * (Size + 1));
+
+  queue Queue{};
+  exp_ext::command_graph Graph{Queue.get_context(), Queue.get_device()};
+
+  int *PtrA = malloc_device<int>(Size, Queue);
+  Queue.memset(PtrA, 0, Size * sizeof(int)).wait();
+
+  auto KernelNode = Graph.add([&](handler &cgh) {
+    cgh.parallel_for(Size, [=](item<1> Item) {
+      size_t GlobalID = Item.get_id();
+      PtrA[GlobalID] +=
+          PaddedKernelParam.val1 * PaddedKernelParam.val2[GlobalID];
+    });
+  });
+
+  auto ExecGraph = Graph.finalize(exp_ext::property::graph::updatable{});
+  Queue.ext_oneapi_graph(ExecGraph).wait();
+
+  std::vector<int> HostDataA(Size);
+  Queue.copy(PtrA, HostDataA.data(), Size).wait();
+  for (size_t i = 0; i < Size; i++) {
+    assert(HostDataA[i] == PaddedKernelParam.val1 * PaddedKernelParam.val2[i]);
+  }
+
+  return 0;
+}