diff --git a/clang/lib/Driver/ToolChains/HIPUtility.cpp b/clang/lib/Driver/ToolChains/HIPUtility.cpp
index b3adfe65402ff..8f6b305aaf691 100644
--- a/clang/lib/Driver/ToolChains/HIPUtility.cpp
+++ b/clang/lib/Driver/ToolChains/HIPUtility.cpp
@@ -324,7 +324,10 @@ void HIP::constructHIPFatbinCommand(Compilation &C, const JobAction &JA,
       Args.MakeArgString(std::string("-output=").append(Output));
   BundlerArgs.push_back(BundlerOutputArg);
 
-  addOffloadCompressArgs(Args, BundlerArgs);
+  // For SYCL, the compression is occurring during the wrapping step, so we do
+  // not want to do additional compression here.
+  if (!JA.isDeviceOffloading(Action::OFK_SYCL))
+    addOffloadCompressArgs(Args, BundlerArgs);
 
   const char *Bundler = Args.MakeArgString(
       T.getToolChain().GetProgramPath("clang-offload-bundler"));
diff --git a/clang/test/Driver/sycl-offload-wrapper-compression.cpp b/clang/test/Driver/sycl-offload-wrapper-compression.cpp
index 1ef9282ee3598..9e9aa437047d4 100644
--- a/clang/test/Driver/sycl-offload-wrapper-compression.cpp
+++ b/clang/test/Driver/sycl-offload-wrapper-compression.cpp
@@ -10,5 +10,11 @@
 // RUN: %clangxx -### -fsycl %s 2>&1 | FileCheck %s --check-prefix=CHECK-NO-COMPRESS
 // RUN: %clangxx -### -fsycl --offload-compression-level=3 %s 2>&1 | FileCheck %s --check-prefix=CHECK-NO-COMPRESS
 
+// For SYCL offloading to HIP, make sure we don't pass '--compress' to offload-bundler.
+// RUN: %clangxx -### -fsycl --offload-compress -Xsycl-target-backend=amdgcn-amd-amdhsa --offload-arch=gfx1031 -fsycl-targets=amdgcn-amd-amdhsa -fno-sycl-libspirv -nogpulib %s &> %t.driver
+// RUN: FileCheck %s --check-prefix=CHECK-NO-COMPRESS-BUNDLER --input-file=%t.driver
+
 // CHECK-NO-COMPRESS-NOT: {{.*}}clang-offload-wrapper{{.*}}"-offload-compress"{{.*}}
 // CHECK-NO-COMPRESS-NOT: {{.*}}clang-offload-wrapper{{.*}}"-offload-compression-level=3"{{.*}}
+
+// CHECK-NO-COMPRESS-BUNDLER-NOT: {{.*}}clang-offload-bundler{{.*}}"-compress"{{.*}}
diff --git a/sycl/test-e2e/Compression/compression.cpp b/sycl/test-e2e/Compression/compression.cpp
index bd2c8ef558e6f..ffabf1cb07aad 100644
--- a/sycl/test-e2e/Compression/compression.cpp
+++ b/sycl/test-e2e/Compression/compression.cpp
@@ -1,9 +1,6 @@
 // End-to-End test for testing device image compression.
 // REQUIRES: zstd
 
-// XFAIL: hip_amd
-// XFAIL-TRACKER: https://github.com/intel/llvm/issues/15829
-
 // RUN: %{build} -O0 -g %S/Inputs/single_kernel.cpp -o %t_not_compress.out
 // RUN: %{build} -O0 -g --offload-compress --offload-compression-level=3 %S/Inputs/single_kernel.cpp -o %t_compress.out
 // RUN: %{run} %t_not_compress.out
diff --git a/sycl/test-e2e/Compression/compression_multiple_tu.cpp b/sycl/test-e2e/Compression/compression_multiple_tu.cpp
index a561ec5f342a9..72eb3f0904790 100644
--- a/sycl/test-e2e/Compression/compression_multiple_tu.cpp
+++ b/sycl/test-e2e/Compression/compression_multiple_tu.cpp
@@ -2,9 +2,6 @@
 // translation units, one compressed and one not compressed.
 // REQUIRES: zstd, linux
 
-// XFAIL: hip_amd
-// XFAIL-TRACKER: https://github.com/intel/llvm/issues/15829
-
 // RUN: %{build} --offload-compress -DENABLE_KERNEL1 -shared -fPIC -o %T/kernel1.so
 // RUN: %{build} -DENABLE_KERNEL2 -shared -fPIC -o %T/kernel2.so