diff --git a/sycl/source/detail/queue_impl.cpp b/sycl/source/detail/queue_impl.cpp
index 2b18a4fb6e28f..4ed73e700d8ce 100644
--- a/sycl/source/detail/queue_impl.cpp
+++ b/sycl/source/detail/queue_impl.cpp
@@ -572,12 +572,15 @@ EventImplPtr queue_impl::submit_kernel_direct_impl(
   KernelData KData;
 
   KData.setDeviceKernelInfoPtr(DeviceKernelInfo);
-  KData.setKernelFunc(HostKernel.getPtr());
   KData.setNDRDesc(NDRDesc);
 
   auto SubmitKernelFunc = [&](detail::CG::StorageInitHelper &CGData,
                               bool SchedulerBypass) -> EventImplPtr {
     if (SchedulerBypass) {
+      // No need to copy/move the kernel function, so we set
+      // the function pointer to the original function
+      KData.setKernelFunc(HostKernel.getPtr());
+
       return submit_kernel_scheduler_bypass(KData, CGData.MEvents,
                                             CallerNeedsEvent, nullptr, nullptr,
                                             CodeLoc, IsTopCodeLoc);
@@ -589,6 +592,10 @@ EventImplPtr queue_impl::submit_kernel_direct_impl(
     std::shared_ptr<detail::HostKernelBase> HostKernelPtr =
         HostKernel.takeOrCopyOwnership();
 
+    // When the kernel function is stored for future use,
+    // set the function pointer to the stored function
+    KData.setKernelFunc(HostKernelPtr->getPtr());
+
     KData.extractArgsAndReqsFromLambda();
 
     CommandGroup.reset(new detail::CGExecKernel(
diff --git a/sycl/unittests/kernel-and-program/CMakeLists.txt b/sycl/unittests/kernel-and-program/CMakeLists.txt
index 2ac6af2296f83..a96e1e80335c8 100644
--- a/sycl/unittests/kernel-and-program/CMakeLists.txt
+++ b/sycl/unittests/kernel-and-program/CMakeLists.txt
@@ -8,6 +8,7 @@ add_sycl_unittest(KernelAndProgramTests OBJECT
   KernelBuildOptions.cpp
   OutOfResources.cpp
   InMemCacheEviction.cpp
+  KernelArgs.cpp
 )
 target_compile_definitions(KernelAndProgramTests_non_preview PRIVATE __SYCL_INTERNAL_API)
 target_compile_definitions(KernelAndProgramTests_preview PRIVATE __SYCL_INTERNAL_API __INTEL_PREVIEW_BREAKING_CHANGES)
diff --git a/sycl/unittests/kernel-and-program/KernelArgs.cpp b/sycl/unittests/kernel-and-program/KernelArgs.cpp
new file mode 100644
index 0000000000000..b4cd8bf8af89c
--- /dev/null
+++ b/sycl/unittests/kernel-and-program/KernelArgs.cpp
@@ -0,0 +1,113 @@
+//==------------ KernelArgs.cpp ------ Kernel arguments unit tests ---------==//
+//
+// Part of the LLVM Project, under the Apache License v2.0 with LLVM Exceptions.
+// See https://llvm.org/LICENSE.txt for license information.
+// SPDX-License-Identifier: Apache-2.0 WITH LLVM-exception
+//
+//===----------------------------------------------------------------------===//
+
+#include <helpers/CommandSubmitWrappers.hpp>
+#include <helpers/MockDeviceImage.hpp>
+#include <helpers/MockKernelInfo.hpp>
+#include <helpers/UrMock.hpp>
+
+#include <gtest/gtest.h>
+
+#include <condition_variable>
+
+#include <sycl/sycl.hpp>
+
+using namespace sycl;
+
+class TestKernelWithIntPtr;
+
+namespace sycl {
+inline namespace _V1 {
+namespace detail {
+
+template <>
+struct KernelInfo<TestKernelWithIntPtr> : public unittest::MockKernelInfoBase {
+  static constexpr unsigned getNumParams() { return 1; }
+  static constexpr const char *getName() { return "TestKernelWithIntPtr"; }
+  static constexpr int64_t getKernelSize() { return sizeof(int); }
+
+  static constexpr const detail::kernel_param_desc_t &getParamDesc(int Index) {
+    return Index == 0 ? IntParamDesc : Dummy;
+  }
+
+private:
+  static constexpr detail::kernel_param_desc_t IntParamDesc = {
+      detail::kernel_param_kind_t::kind_std_layout, 0, 0};
+};
+
+} // namespace detail
+} // namespace _V1
+} // namespace sycl
+
+static sycl::unittest::MockDeviceImage Img =
+    sycl::unittest::generateDefaultImage({"TestKernelWithIntPtr"});
+static sycl::unittest::MockDeviceImageArray<1> ImgArray{&Img};
+
+static int ArgInt = 123;
+
+ur_result_t redefined_urKernelSetArgValue(void *pParams) {
+  auto params = *static_cast<ur_kernel_set_arg_value_params_t *>(pParams);
+
+  int ArgValue = *static_cast<const int *>(*params.ppArgValue);
+  EXPECT_EQ(ArgValue, ArgInt);
+
+  return UR_RESULT_SUCCESS;
+}
+
+void runKernelWithArgs(queue &Queue, int ArgI) {
+// Pack to 1-byte boundaries, so the kernel size is not padded
+#pragma pack(push, 1)
+  auto KernelLambda = [=]([[maybe_unused]] nd_item<1> i) {
+    [[maybe_unused]] volatile int ArgILocal = ArgI;
+  };
+#pragma pack(pop)
+
+  Queue.parallel_for<TestKernelWithIntPtr>(nd_range<1>{32, 32}, KernelLambda);
+  // Erase the memory to make sure the lambda is not accessible
+  std::memset(&KernelLambda, 0, sizeof(KernelLambda));
+}
+
+// This test checks, if the kernel lambda is copied properly,
+// so the arguments extraction can happen after the local copy
+// of the kernel lambda is deallocated.
+TEST(KernelArgsTest, KernelCopy) {
+  sycl::unittest::UrMock<> Mock;
+  mock::getCallbacks().set_before_callback("urKernelSetArgValue",
+                                           &redefined_urKernelSetArgValue);
+
+  platform Plt = sycl::platform();
+
+  context Ctx{Plt};
+  queue Queue{Ctx, default_selector_v, property::queue::in_order()};
+
+  std::mutex CvMutex;
+  std::condition_variable Cv;
+  bool ready = false;
+
+  // The kernel submission is queued behind a host task,
+  // to force the scheduler-based submission.
+  Queue.submit([&](sycl::handler &CGH) {
+    CGH.host_task([&] {
+      std::unique_lock<std::mutex> lk(CvMutex);
+      Cv.wait(lk, [&ready] { return ready; });
+    });
+  });
+
+  // The kernel lambda is defined in a separate function,
+  // so it will be deallocated before the argument extraction
+  // and kernel submission happens.
+  runKernelWithArgs(Queue, ArgInt);
+
+  {
+    std::unique_lock<std::mutex> lk(CvMutex);
+    ready = true;
+  }
+  Cv.notify_one();
+
+  Queue.wait();
+}