diff --git a/sway-core/src/asm_generation/from_ir.rs b/sway-core/src/asm_generation/from_ir.rs
index d347b7f2e11..35c3a258869 100644
--- a/sway-core/src/asm_generation/from_ir.rs
+++ b/sway-core/src/asm_generation/from_ir.rs
@@ -1403,19 +1403,24 @@ impl<'ir> AsmBuilder<'ir> {
                         // Value can fit in a register, so we load the value.
                         if word_offs > compiler_constants::TWELVE_BITS {
                             let offs_reg = self.reg_seqr.next();
+                            self.number_to_reg(
+                                word_offs * 8, // Base reg for LW is in bytes
+                                &offs_reg,
+                                instr_val.get_span(self.context),
+                            );
                             self.bytecode.push(Op {
                                 opcode: Either::Left(VirtualOp::ADD(
-                                    base_reg.clone(),
+                                    offs_reg.clone(),
                                     base_reg,
                                     offs_reg.clone(),
                                 )),
-                                comment: "insert_value absolute offset".into(),
+                                comment: "absolute offset for load".into(),
                                 owning_span: instr_val.get_span(self.context),
                             });
                             self.bytecode.push(Op {
                                 opcode: Either::Left(VirtualOp::LW(
                                     instr_reg.clone(),
-                                    offs_reg,
+                                    offs_reg.clone(),
                                     VirtualImmediate12 { value: 0 },
                                 )),
                                 comment: "load value".into(),
@@ -1784,13 +1789,13 @@ impl<'ir> AsmBuilder<'ir> {
                         if word_offs > compiler_constants::TWELVE_BITS {
                             let offs_reg = self.reg_seqr.next();
                             self.number_to_reg(
-                                word_offs,
+                                word_offs * 8, // Base reg for SW is in bytes
                                 &offs_reg,
                                 instr_val.get_span(self.context),
                             );
                             self.bytecode.push(Op {
                                 opcode: Either::Left(VirtualOp::ADD(
-                                    base_reg.clone(),
+                                    offs_reg.clone(),
                                     base_reg,
                                     offs_reg.clone(),
                                 )),
diff --git a/test/src/e2e_vm_tests/test_programs/should_pass/language/many_stack_variables/src/main.sw b/test/src/e2e_vm_tests/test_programs/should_pass/language/many_stack_variables/src/main.sw
index f72d8f58d28..f38177b233c 100644
--- a/test/src/e2e_vm_tests/test_programs/should_pass/language/many_stack_variables/src/main.sw
+++ b/test/src/e2e_vm_tests/test_programs/should_pass/language/many_stack_variables/src/main.sw
@@ -10,7 +10,10 @@ struct Z {
 }
 
 fn main() -> u64 {
-    // Chosen name forces this variable to show up last in the list of locals in IR
+    // Chosen names force these variables to show up last in the list of locals in IR so they will
+    // be allocated last and require the highest offset to be computed
+
+    // Test get_ptr large offset
     let zzz = Z {
         a: 1,
         b: 2,
@@ -18,134 +21,171 @@ fn main() -> u64 {
         d: 4,
     };
 
-    // Add enough stack variables to reach > 4096 bytes
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
-    let b = ZERO_B256;
+    // Test LW/SW with large offsets
+    let z1 = 5;
+    let z2 = 6;
+
+    // Add enough stack variables to reach > 4096 words
+    foo();
+    foo();
+    foo();
+    foo();
+    foo();
+    foo();
+    foo();
+    foo();
+    foo();
+    foo();
+    foo();
+    foo();
+    foo();
+    foo();
+    foo();
+    foo();
+    foo();
+    foo();
+    foo();
+    foo();
+    foo();
+    foo();
+    foo();
+    foo();
+    foo();
+    foo();
+    foo();
+    foo();
+    foo();
+    foo();
+    foo();
+    foo();
+    foo();
+    foo();
+
+    return zzz.a + zzz.b + zzz.c + zzz.d + z1 + z2 // get 16
+}
 
-    return zzz.a + zzz.b + zzz.c + zzz.d
+fn foo() {
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
+    let c = 0;
 }
diff --git a/test/src/e2e_vm_tests/test_programs/should_pass/language/many_stack_variables/test.toml b/test/src/e2e_vm_tests/test_programs/should_pass/language/many_stack_variables/test.toml
index 1a37cf3ee4d..6238f8fd3f6 100644
--- a/test/src/e2e_vm_tests/test_programs/should_pass/language/many_stack_variables/test.toml
+++ b/test/src/e2e_vm_tests/test_programs/should_pass/language/many_stack_variables/test.toml
@@ -1,3 +1,3 @@
 category = "run"
-expected_result = { action = "return", value = 10 }
+expected_result = { action = "return", value = 21 }
 validate_abi = true