diff --git a/sycl/source/detail/device_binary_image.cpp b/sycl/source/detail/device_binary_image.cpp
index 0b58e9c5a7279..f339b7280fbce 100644
--- a/sycl/source/detail/device_binary_image.cpp
+++ b/sycl/source/detail/device_binary_image.cpp
@@ -710,22 +710,29 @@ CompressedRTDeviceBinaryImage::CompressedRTDeviceBinaryImage(
       static_cast<size_t>(Bin->BinaryEnd - Bin->BinaryStart));
 }
 
+// std::call_once ensures that this function is thread_safe and prevents
+// race during image decompression.
 void CompressedRTDeviceBinaryImage::Decompress() {
+  auto DecompressFunc = [&]() {
+    size_t CompressedDataSize =
+        static_cast<size_t>(Bin->BinaryEnd - Bin->BinaryStart);
 
-  size_t CompressedDataSize =
-      static_cast<size_t>(Bin->BinaryEnd - Bin->BinaryStart);
+    size_t DecompressedSize = 0;
+    m_DecompressedData = ZSTDCompressor::DecompressBlob(
+        reinterpret_cast<const char *>(Bin->BinaryStart), CompressedDataSize,
+        DecompressedSize);
 
-  size_t DecompressedSize = 0;
-  m_DecompressedData = ZSTDCompressor::DecompressBlob(
-      reinterpret_cast<const char *>(Bin->BinaryStart), CompressedDataSize,
-      DecompressedSize);
+    Bin->BinaryStart =
+        reinterpret_cast<const unsigned char *>(m_DecompressedData.get());
+    Bin->BinaryEnd = Bin->BinaryStart + DecompressedSize;
 
-  Bin->BinaryStart =
-      reinterpret_cast<const unsigned char *>(m_DecompressedData.get());
-  Bin->BinaryEnd = Bin->BinaryStart + DecompressedSize;
+    Bin->Format = ur::getBinaryImageFormat(Bin->BinaryStart, getSize());
+    Format = static_cast<ur::DeviceBinaryType>(Bin->Format);
 
-  Bin->Format = ur::getBinaryImageFormat(Bin->BinaryStart, getSize());
-  Format = static_cast<ur::DeviceBinaryType>(Bin->Format);
+    m_IsCompressed.store(false);
+  };
+
+  std::call_once(m_InitFlag, DecompressFunc);
 }
 
 CompressedRTDeviceBinaryImage::~CompressedRTDeviceBinaryImage() {
diff --git a/sycl/source/detail/device_binary_image.hpp b/sycl/source/detail/device_binary_image.hpp
index ac4fb92d3f9a8..075229effb3ec 100644
--- a/sycl/source/detail/device_binary_image.hpp
+++ b/sycl/source/detail/device_binary_image.hpp
@@ -19,6 +19,7 @@
 #include <atomic>
 #include <cstring>
 #include <memory>
+#include <mutex>
 
 namespace sycl {
 inline namespace _V1 {
@@ -321,7 +322,8 @@ class CompressedRTDeviceBinaryImage : public RTDeviceBinaryImage {
     return m_ImageSize;
   }
 
-  bool IsCompressed() const { return m_DecompressedData.get() == nullptr; }
+  bool IsCompressed() const { return m_IsCompressed.load(); }
+
   void print() const override {
     RTDeviceBinaryImage::print();
     std::cerr << "    COMPRESSED\n";
@@ -330,6 +332,10 @@ class CompressedRTDeviceBinaryImage : public RTDeviceBinaryImage {
 private:
   std::unique_ptr<char[]> m_DecompressedData;
   size_t m_ImageSize = 0;
+
+  // Flag to ensure decompression happens only once.
+  std::once_flag m_InitFlag;
+  std::atomic<bool> m_IsCompressed{true};
 };
 #endif // SYCL_RT_ZSTD_AVAILABLE
 
diff --git a/sycl/unittests/compression/CompressionTests.cpp b/sycl/unittests/compression/CompressionTests.cpp
index 55e99dd3685fc..9ce8dda9bc830 100644
--- a/sycl/unittests/compression/CompressionTests.cpp
+++ b/sycl/unittests/compression/CompressionTests.cpp
@@ -8,6 +8,7 @@
 
 #include "../thread_safety/ThreadUtils.h"
 #include <detail/compression.hpp>
+#include <detail/device_binary_image.hpp>
 #include <sycl/sycl.hpp>
 
 #include <string>
@@ -113,3 +114,61 @@ TEST(CompressionTest, ConcurrentCompressionDecompression) {
     ::ThreadPool MPool(ThreadCount, testCompressDecompress);
   }
 }
+
+// Test to decompress CompressedRTDeviceImage using multiple threads.
+// The idea behind this test is to ensure that a device image is
+// decompressed only once even if multiple threads try to decompress
+// it at the same time.
+TEST(CompressionTest, ConcurrentDecompressionOfDeviceImage) {
+  // Data to compress.
+  std::string data = "Hello World! I'm about to get compressed :P";
+
+  // Compress this data.
+  size_t compressedSize = 0;
+  auto compressedData = ZSTDCompressor::CompressBlob(data.c_str(), data.size(),
+                                                     compressedSize, 1);
+
+  unsigned char *compressedDataPtr =
+      reinterpret_cast<unsigned char *>(compressedData.get());
+
+  const char *EntryName = "Entry";
+  _sycl_offload_entry_struct EntryStruct = {
+      /*addr*/ nullptr, const_cast<char *>(EntryName), strlen(EntryName),
+      /*flags*/ 0, /*reserved*/ 0};
+  sycl_device_binary_struct BinStruct{/*Version*/ 1,
+                                      /*Kind*/ 4,
+                                      /*Format*/ SYCL_DEVICE_BINARY_TYPE_SPIRV,
+                                      /*DeviceTargetSpec*/ nullptr,
+                                      /*CompileOptions*/ nullptr,
+                                      /*LinkOptions*/ nullptr,
+                                      /*ManifestStart*/ nullptr,
+                                      /*ManifestEnd*/ nullptr,
+                                      /*BinaryStart*/ compressedDataPtr,
+                                      /*BinaryEnd*/ compressedDataPtr +
+                                          compressedSize,
+                                      /*EntriesBegin*/ &EntryStruct,
+                                      /*EntriesEnd*/ &EntryStruct + 1,
+                                      /*PropertySetsBegin*/ nullptr,
+                                      /*PropertySetsEnd*/ nullptr};
+  sycl_device_binary Bin = &BinStruct;
+  CompressedRTDeviceBinaryImage Img{Bin};
+
+  // Decompress the image with multiple threads.
+  constexpr size_t ThreadCount = 20;
+  Barrier b(ThreadCount);
+  {
+    auto testDecompress = [&](size_t threadId) {
+      b.wait();
+      Img.Decompress();
+
+      // Check if decompressed data is same as original data.
+      // Img.getRawData will change if there's a race in image decompression
+      // and the check will fail.
+      for (size_t i = 0; i < Img.getSize(); ++i) {
+        ASSERT_EQ(data[i], Img.getRawData().BinaryStart[i]);
+      }
+    };
+
+    ::ThreadPool MPool(ThreadCount, testDecompress);
+  }
+}