diff --git a/lib/Dialect/Torch/Transforms/DecomposeComplexOps.cpp b/lib/Dialect/Torch/Transforms/DecomposeComplexOps.cpp
index 335277aa4462..ece87bda88ae 100644
--- a/lib/Dialect/Torch/Transforms/DecomposeComplexOps.cpp
+++ b/lib/Dialect/Torch/Transforms/DecomposeComplexOps.cpp
@@ -1894,6 +1894,63 @@ class DecomposeAtenAtleast1dOp : public OpRewritePattern<AtenAtleast1dOp> {
 };
 } // namespace
 
+// Decompose 'aten.outer' into 'aten.unsqueeze', 'aten.matmul'
+
+namespace {
+class DecomposeAtenOuterOp : public OpRewritePattern<AtenOuterOp> {
+public:
+  using OpRewritePattern::OpRewritePattern;
+  LogicalResult matchAndRewrite(AtenOuterOp op,
+                                PatternRewriter &rewriter) const override {
+
+    Location loc = op.getLoc();
+    Value input = op.getSelf();
+    Value vec2 = op.getVec2();
+    Type opType = op.getType();
+
+    auto inputType = cast<BaseTensorType>(input.getType());
+    auto vec2Type = cast<BaseTensorType>(vec2.getType());
+
+    // Check if tensors not empty
+    if (!inputType.hasSizes() || !vec2Type.hasSizes()) {
+      return rewriter.notifyMatchFailure(
+          op, "Inputs must be ranked tensors for aten.outer");
+    }
+
+    // Check if both tensors are 1-dimensional
+    SmallVector<int64_t> inputShape(inputType.getSizes());
+    SmallVector<int64_t> vec2Shape(vec2Type.getSizes());
+
+    if (inputShape.size() != 1 || vec2Shape.size() != 1) {
+      return rewriter.notifyMatchFailure(
+          op, "Inputs must be 1-dimensional vectors for aten.outer");
+    }
+
+    Value one = rewriter.create<Torch::ConstantIntOp>(
+        loc, rewriter.getI64IntegerAttr(1)); // Dimension index
+    inputShape.push_back(1);
+    Type inputMatrixType = inputType.getWithSizesAndDtype(
+        inputShape, inputType.getOptionalDtype());
+
+    Value inputMatrix =
+        rewriter.create<AtenUnsqueezeOp>(loc, inputMatrixType, input, one);
+
+    Value zero = rewriter.create<Torch::ConstantIntOp>(
+        loc, rewriter.getI64IntegerAttr(0));
+    vec2Shape.insert(vec2Shape.begin(), 1);
+    Type vec2MatrixType =
+        vec2Type.getWithSizesAndDtype(vec2Shape, vec2Type.getOptionalDtype());
+
+    Value vec2Matrix =
+        rewriter.create<AtenUnsqueezeOp>(loc, vec2MatrixType, vec2, zero);
+
+    rewriter.replaceOpWithNewOp<AtenMatmulOp>(op, opType, inputMatrix,
+                                              vec2Matrix);
+    return success();
+  }
+};
+} // namespace
+
 namespace {
 // Decompose aten.atleast_2d into: aten.reshape. See
 // https://github.com/pytorch/pytorch/blob/9a8ab778d34bd24c5caceb340837483decc4c311/torch/_refs/__init__.py#L2604
@@ -11591,6 +11648,7 @@ class DecomposeComplexOpsPass
     addPatternIfTargetOpIsIllegal<DecomposeAtenEmptyLikeOp>(patterns);
     addPatternIfTargetOpIsIllegal<
         DecomposeConstantTensorAllocLikeOp<AtenOnesLikeOp, 1>>(patterns);
+    addPatternIfTargetOpIsIllegal<DecomposeAtenOuterOp>(patterns);
     addPatternIfTargetOpIsIllegal<
         DecomposeConstantTensorAllocLikeOp<AtenZerosLikeOp, 0>>(patterns);
     addPatternIfTargetOpIsIllegal<DecomposeAtenStackOp>(patterns);
diff --git a/lib/Dialect/Torch/Transforms/LowerToBackendContract.cpp b/lib/Dialect/Torch/Transforms/LowerToBackendContract.cpp
index 6695f2964b65..95bacd9fc9e6 100644
--- a/lib/Dialect/Torch/Transforms/LowerToBackendContract.cpp
+++ b/lib/Dialect/Torch/Transforms/LowerToBackendContract.cpp
@@ -379,6 +379,7 @@ static void markDecomposedOpsAsIllegal(MLIRContext *context,
   target.addIllegalOp<AtenSoftshrinkOp>();
   target.addIllegalOp<AtenEmptyLikeOp>();
   target.addIllegalOp<AtenOnesLikeOp>();
+  target.addIllegalOp<AtenOuterOp>();
   target.addIllegalOp<AtenZerosLikeOp>();
   target.addIllegalOp<AtenStackOp>();
   target.addIllegalOp<AtenHstackOp>();
diff --git a/projects/pt1/e2e_testing/xfail_sets.py b/projects/pt1/e2e_testing/xfail_sets.py
index 6904b4acb3c6..00a493c0db58 100644
--- a/projects/pt1/e2e_testing/xfail_sets.py
+++ b/projects/pt1/e2e_testing/xfail_sets.py
@@ -3810,6 +3810,7 @@
 }
 
 ONNX_TOSA_XFAIL_SET = {
+    "AtenOuter_basic",
     "AtenFftRfft2DLastDim_basic",
     "AtenFftRfft2DMiddleDim_basic",
     "AtenNonzero1DDynamicModule_basic",
diff --git a/projects/pt1/python/torch_mlir_e2e_test/test_suite/matmul.py b/projects/pt1/python/torch_mlir_e2e_test/test_suite/matmul.py
index 17240cf953df..25cb3cf57e35 100644
--- a/projects/pt1/python/torch_mlir_e2e_test/test_suite/matmul.py
+++ b/projects/pt1/python/torch_mlir_e2e_test/test_suite/matmul.py
@@ -918,3 +918,61 @@ def forward(self, a, b):
 @register_test_case(module_factory=lambda: AtenLinalgCrossDynamic())
 def AtenLinalgCrossDynamic_basic(module, tu: TestUtils):
     module.forward(tu.rand(4, 3, 1, 6), tu.rand(4, 3, 7, 1))
+
+
+# ==============================================================================
+
+
+class AtenOuter(torch.nn.Module):
+    def __init__(self):
+        super().__init__()
+
+    @export
+    @annotate_args(
+        [
+            None,
+            ([3], torch.float32, True),
+            ([3], torch.float32, True),
+        ]
+    )
+    def forward(self, lhs, rhs):
+        return torch.outer(lhs, rhs)
+
+
+@register_test_case(module_factory=lambda: AtenOuter())
+def AtenOuter_basic(module, tu: TestUtils):
+    module.forward(tu.rand(3), tu.rand(2))
+
+
+# ==============================================================================
+
+
+class AtenOuterDynamic(torch.nn.Module):
+    def __init__(self):
+        super().__init__()
+
+    @export
+    @annotate_args(
+        [
+            None,
+            ([-1], torch.float32, True),
+            ([-1], torch.float32, True),
+        ]
+    )
+    def forward(self, lhs, rhs):
+        return torch.outer(lhs, rhs)
+
+
+@register_test_case(module_factory=lambda: AtenOuterDynamic())
+def AtenOuterDynamic_basic(module, tu: TestUtils):
+    module.forward(tu.rand(5), tu.rand(5))
+
+
+@register_test_case(module_factory=lambda: AtenOuterDynamic())
+def AtenOuterDynamic_lhs_larger(module, tu: TestUtils):
+    module.forward(tu.rand(7), tu.rand(4))
+
+
+@register_test_case(module_factory=lambda: AtenOuterDynamic())
+def AtenOuterDynamic_rhs_larger(module, tu: TestUtils):
+    module.forward(tu.rand(2), tu.rand(6))