diff --git a/onnxruntime/core/providers/openvino/backend_manager.cc b/onnxruntime/core/providers/openvino/backend_manager.cc
index 3426a2781bbc6..b0d574874e505 100644
--- a/onnxruntime/core/providers/openvino/backend_manager.cc
+++ b/onnxruntime/core/providers/openvino/backend_manager.cc
@@ -96,7 +96,7 @@ BackendManager::BackendManager(SessionContext& session_context,
   ptr_stream_t model_stream;
   std::unique_ptr<onnx::ModelProto> model_proto;
   if (subgraph_context_.is_ep_ctx_graph) {
-    if (!session_context_.reshape.empty()) {
+    if (!session_context_.reshape.empty() && !subgraph_context_.is_ep_ctx_ovir_encapsulated) {
       std::string exception_str =
           "[OpenVINO-EP] Bounded dynamic model execution using provider option reshape_input is not supported for OVEP EPContext model";
       ORT_THROW(exception_str);
diff --git a/onnxruntime/core/providers/openvino/backends/basic_backend.cc b/onnxruntime/core/providers/openvino/backends/basic_backend.cc
index d7fc0553fb1d4..451d2b3ae266c 100644
--- a/onnxruntime/core/providers/openvino/backends/basic_backend.cc
+++ b/onnxruntime/core/providers/openvino/backends/basic_backend.cc
@@ -63,7 +63,8 @@ BasicBackend::BasicBackend(std::unique_ptr<ONNX_NAMESPACE::ModelProto>& model_pr
                                                                    hw_target,
                                                                    device_config,
                                                                    enable_causallm,
-                                                                   model_file_path());
+                                                                   model_file_path(),
+                                                                   session_context_);
       } else {
         // If the blob is held in an EPContext node, then skip FE+Compile
         // and directly move on to creating a backend with the executable blob
diff --git a/onnxruntime/core/providers/openvino/ov_interface.cc b/onnxruntime/core/providers/openvino/ov_interface.cc
index 23be3447b8799..4c5d8ba5ad1c1 100644
--- a/onnxruntime/core/providers/openvino/ov_interface.cc
+++ b/onnxruntime/core/providers/openvino/ov_interface.cc
@@ -226,7 +226,8 @@ OVExeNetwork OVCore::ImportEPCtxOVIREncapsulation(std::istream& model_stream,
                                                   std::string& hw_target,
                                                   const ov::AnyMap& device_config,
                                                   bool enable_causallm,
-                                                  std::filesystem::path model_file_path) {
+                                                  std::filesystem::path model_file_path,
+                                                  const SessionContext& session_context) {
   return OvExceptionBoundary<false>([&]() {
     OVExeNetwork exe;
 
@@ -259,6 +260,11 @@ OVExeNetwork OVCore::ImportEPCtxOVIREncapsulation(std::istream& model_stream,
       // Load the model explicitly with XML contents
       std::shared_ptr<ov::Model> model = core.read_model(xml_file_path.string());
 
+      if (!session_context.reshape.empty()) {
+        LOGS_DEFAULT(INFO) << log_tag << "Reshaping OV-IR model to specified shape";
+        model->reshape(session_context.reshape);
+      }
+
       if (enable_causallm) {
         exe = OVCore::Get()->StatefulCompileModel(model, hw_target, device_config);
       } else {
diff --git a/onnxruntime/core/providers/openvino/ov_interface.h b/onnxruntime/core/providers/openvino/ov_interface.h
index 8fc28b8885e5d..aa4b3fbe64898 100644
--- a/onnxruntime/core/providers/openvino/ov_interface.h
+++ b/onnxruntime/core/providers/openvino/ov_interface.h
@@ -39,6 +39,7 @@ class OVCore;
 class OVInferRequest;
 class OVExeNetwork;
 struct ModelBlobWrapper;
+struct SessionContext;
 
 typedef ov::Tensor OVTensor;
 typedef ov::ProfilingInfo OVProfilingInfo;
@@ -77,7 +78,8 @@ struct OVCore : WeakSingleton<OVCore> {
                                             std::string& hw_target,
                                             const ov::AnyMap& device_config,
                                             bool enable_causallm,
-                                            std::filesystem::path model_file_path);
+                                            std::filesystem::path model_file_path,
+                                            const SessionContext& session_context);
 
   std::vector<std::string> GetAvailableDevices() const;
   std::vector<std::string> GetAvailableDevices(const std::string& device_type) const;