diff --git a/examples/gpu_shared_memory/CMakeLists.txt b/examples/gpu_shared_memory/CMakeLists.txt
index 259b47d08a..659d223975 100644
--- a/examples/gpu_shared_memory/CMakeLists.txt
+++ b/examples/gpu_shared_memory/CMakeLists.txt
@@ -24,11 +24,11 @@ endif()
 include(FetchContent)
 
 set(LEVEL_ZERO_LOADER_REPO "https://github.com/oneapi-src/level-zero.git")
-set(LEVEL_ZERO_LOADER_TAG v1.16.1)
+set(LEVEL_ZERO_LOADER_TAG v1.17.39)
 
 message(
     STATUS
-        "Installing level-zero ${LEVEL_ZERO_LOADER_TAG} from ${LEVEL_ZERO_LOADER_REPO} ..."
+        "Fetching L0 loader (${LEVEL_ZERO_LOADER_TAG}) from ${LEVEL_ZERO_LOADER_REPO} ..."
 )
 
 FetchContent_Declare(
diff --git a/examples/ipc_level_zero/CMakeLists.txt b/examples/ipc_level_zero/CMakeLists.txt
index e38adf25f1..18b9f542ee 100644
--- a/examples/ipc_level_zero/CMakeLists.txt
+++ b/examples/ipc_level_zero/CMakeLists.txt
@@ -24,11 +24,11 @@ endif()
 include(FetchContent)
 
 set(LEVEL_ZERO_LOADER_REPO "https://github.com/oneapi-src/level-zero.git")
-set(LEVEL_ZERO_LOADER_TAG v1.16.1)
+set(LEVEL_ZERO_LOADER_TAG v1.17.39)
 
 message(
     STATUS
-        "Installing level-zero ${LEVEL_ZERO_LOADER_TAG} from ${LEVEL_ZERO_LOADER_REPO} ..."
+        "Fetching L0 loader (${LEVEL_ZERO_LOADER_TAG}) from ${LEVEL_ZERO_LOADER_REPO} ..."
 )
 
 FetchContent_Declare(
diff --git a/src/CMakeLists.txt b/src/CMakeLists.txt
index e9cdbc7159..bab0cba46c 100644
--- a/src/CMakeLists.txt
+++ b/src/CMakeLists.txt
@@ -6,23 +6,25 @@ include(${UMF_CMAKE_SOURCE_DIR}/cmake/helpers.cmake)
 
 set(UMF_LEVEL_ZERO_INCLUDE_DIR
     ""
-    CACHE FILEPATH "Directory containing the Level Zero Headers")
+    CACHE PATH "Directory containing the Level Zero Headers")
 
 # Compile definitions for UMF library.
 #
 # TODO: Cleanup the compile definitions across all the CMake files
 set(UMF_COMMON_COMPILE_DEFINITIONS UMF_VERSION=${UMF_VERSION})
 
+# Only fetch L0 loader if needed (L0 provider and GPU tests are ON), and not
+# already provided by the user (via setting UMF_LEVEL_ZERO_INCLUDE_DIR).
 if(UMF_BUILD_LEVEL_ZERO_PROVIDER AND (UMF_BUILD_GPU_TESTS
                                       OR (NOT UMF_LEVEL_ZERO_INCLUDE_DIR)))
     include(FetchContent)
 
     set(LEVEL_ZERO_LOADER_REPO "https://github.com/oneapi-src/level-zero.git")
-    set(LEVEL_ZERO_LOADER_TAG v1.16.1)
+    set(LEVEL_ZERO_LOADER_TAG v1.17.39)
 
     message(
         STATUS
-            "Installing level-zero ${LEVEL_ZERO_LOADER_TAG} from ${LEVEL_ZERO_LOADER_REPO} ..."
+            "Fetching L0 loader (${LEVEL_ZERO_LOADER_TAG}) from ${LEVEL_ZERO_LOADER_REPO} ..."
     )
 
     FetchContent_Declare(