diff --git a/sycl/doc/design/PropagateCompilerFlagsToRuntime.md b/sycl/doc/design/PropagateCompilerFlagsToRuntime.md
index 55ce19c6f5074..c73bd55b357d8 100644
--- a/sycl/doc/design/PropagateCompilerFlagsToRuntime.md
+++ b/sycl/doc/design/PropagateCompilerFlagsToRuntime.md
@@ -73,8 +73,8 @@ OpenCL backends.
 | Front-end option | L0 backend option | OpenCL backend option |
 | ---------------- | ----------------- | --------------------- |
 |      -O0         |  -ze-opt-disable  |   -cl-opt-disable     |
-|      -O1         |  -ze-opt-level=1  |   /* no option */     |
-|      -O2         |  -ze-opt-level=1  |   /* no option */     |
+|      -O1         |  -ze-opt-level=2  |   /* no option */     |
+|      -O2         |  -ze-opt-level=2  |   /* no option */     |
 |      -O3         |  -ze-opt-level=2  |   /* no option */     |
 
 
diff --git a/sycl/plugins/level_zero/pi_level_zero.cpp b/sycl/plugins/level_zero/pi_level_zero.cpp
index 4816341bb0f01..eb5ab8a42259f 100644
--- a/sycl/plugins/level_zero/pi_level_zero.cpp
+++ b/sycl/plugins/level_zero/pi_level_zero.cpp
@@ -58,8 +58,7 @@ pi_result piPluginGetLastError(char **message) {
 
 // Returns plugin specific backend option.
 // Return '-ze-opt-disable' for frontend_option = -O0.
-// Return '-ze-opt-level=1' for frontend_option = -O1 or -O2.
-// Return '-ze-opt-level=2' for frontend_option = -O3.
+// Return '-ze-opt-level=2' for frontend_option = -O1, O2 or -O3.
 // Return '-igc_opts 'PartitionUnit=1,SubroutineThreshold=50000'' for
 // frontend_option = -ftarget-compile-fast.
 pi_result piPluginGetBackendOption(pi_platform platform,
diff --git a/sycl/plugins/unified_runtime/CMakeLists.txt b/sycl/plugins/unified_runtime/CMakeLists.txt
index 46bd16b592553..c3273c9affb9e 100644
--- a/sycl/plugins/unified_runtime/CMakeLists.txt
+++ b/sycl/plugins/unified_runtime/CMakeLists.txt
@@ -57,13 +57,13 @@ if(SYCL_PI_UR_USE_FETCH_CONTENT)
   include(FetchContent)
 
   set(UNIFIED_RUNTIME_REPO "https://github.com/oneapi-src/unified-runtime.git")
-  # commit 12a67f56c3c5d08cfac0852d552b4e5fe0452d04
-  # Merge: 2b7b827c c10968f5
+  # commit c2d78257ba7e7bbc230333f291282d16145aaac7
+  # Merge: 8bb539c5 b3a1d52d
   # Author: Kenneth Benzie (Benie) <k.benzie@codeplay.com>
-  # Date:   Tue Jan 9 10:53:32 2024 +0000
-  #     Merge pull request #1027 from GeorgeWeb/georgi/hip_memadvise
-  #     [SYCL][HIP] Implement mem_advise for HIP
-  set(UNIFIED_RUNTIME_TAG 12a67f56c3c5d08cfac0852d552b4e5fe0452d04)
+  # Date:   Wed Jan 10 11:24:12 2024 +0000
+  #     Merge pull request #1129 from sarnex/adapters
+  #     [UR][L0] Make urPlatformGetBackendOption return -ze-opt-level=2 for -O1 and -O2
+  set(UNIFIED_RUNTIME_TAG c2d78257ba7e7bbc230333f291282d16145aaac7)
 
   if(SYCL_PI_UR_OVERRIDE_FETCH_CONTENT_REPO)
     set(UNIFIED_RUNTIME_REPO "${SYCL_PI_UR_OVERRIDE_FETCH_CONTENT_REPO}")
diff --git a/sycl/test-e2e/PropagateOptionsToBackend/sycl-opt-level-level-zero.cpp b/sycl/test-e2e/PropagateOptionsToBackend/sycl-opt-level-level-zero.cpp
index b3dddbd87b0fd..e454a85151c26 100644
--- a/sycl/test-e2e/PropagateOptionsToBackend/sycl-opt-level-level-zero.cpp
+++ b/sycl/test-e2e/PropagateOptionsToBackend/sycl-opt-level-level-zero.cpp
@@ -5,9 +5,9 @@
 // RUN: %{build} -O1 -o %t1.out
 // RUN: env SYCL_PI_TRACE=-1 %{run} %t1.out 2>&1 | FileCheck %s --check-prefixes=CHECK1
 // RUN: %{build} -O2 -o %t2.out
-// RUN: env SYCL_PI_TRACE=-1 %{run} %t2.out 2>&1 | FileCheck %s --check-prefixes=CHECK2
+// RUN: env SYCL_PI_TRACE=-1 %{run} %t2.out 2>&1 | FileCheck %s --check-prefixes=CHECK1
 // RUN: %{build} -O3 -o %t3.out
-// RUN: env SYCL_PI_TRACE=-1 %{run} %t3.out 2>&1 | FileCheck %s --check-prefixes=CHECK3
+// RUN: env SYCL_PI_TRACE=-1 %{run} %t3.out 2>&1 | FileCheck %s --check-prefixes=CHECK1
 
 // This test verifies the propagation of front-end compiler optimization
 // option to the backend.
@@ -15,8 +15,8 @@
 // Following is expected addition of options for level_zero backend:
 // Front-end option | L0 backend option
 //       -O0        |    -ze-opt-disable
-//       -O1        |    -ze-opt-level=1
-//       -O2        |    -ze-opt-level=1
+//       -O1        |    -ze-opt-level=2
+//       -O2        |    -ze-opt-level=2
 //       -O3        |    -ze-opt-level=2
 
 #include <sycl/sycl.hpp>
@@ -30,7 +30,5 @@ int main() {
 
 // CHECK-LABEL: ---> piProgramBuild(
 // CHECK0: -ze-opt-disable
-// CHECK1: -ze-opt-level=1
-// CHECK2: -ze-opt-level=1
-// CHECK3: -ze-opt-level=2
+// CHECK1: -ze-opt-level=2
 // CHECK: ) ---> pi_result : PI_SUCCESS