diff --git a/sycl/test-e2e/DeviceLib/built-ins/offload-prec-div-sqrt.cpp b/sycl/test-e2e/DeviceLib/built-ins/offload-prec-div-sqrt.cpp
new file mode 100644
index 0000000000000..e00e123ca1aaf
--- /dev/null
+++ b/sycl/test-e2e/DeviceLib/built-ins/offload-prec-div-sqrt.cpp
@@ -0,0 +1,56 @@
+// RUN: %{build} -foffload-fp32-prec-div -foffload-fp32-prec-sqrt -o %t.out
+// RUN: %{run} %t.out
+
+// Test if div and sqrt become precise from IEEE-754 perspective when
+// -foffload-fp32-prec-div -foffload-fp32-prec-sqrt are passed.
+
+#include <cmath>
+#include <sycl/detail/core.hpp>
+#include <sycl/usm.hpp>
+
+constexpr float value = 560.0f;
+constexpr float divider = 279.9f;
+
+void test_div() {
+  sycl::queue q(sycl::default_selector_v);
+  float *inValue = (float *)sycl::malloc_shared(sizeof(float), q);
+  float *inDivider = (float *)sycl::malloc_shared(sizeof(float), q);
+  float *output = (float *)sycl::malloc_shared(sizeof(float), q);
+  *inValue = value;
+  *inDivider = divider;
+  q.submit([&](sycl::handler &h) {
+     h.single_task([=] {
+       float res = *inValue / *inDivider;
+       *output = res;
+     });
+   }).wait();
+
+  float hostRef = value / divider;
+  int ulpDist = std::abs(sycl::bit_cast<int32_t>(hostRef) -
+                         sycl::bit_cast<int32_t>(*output));
+  assert(ulpDist == 0 && "Division is not precise");
+}
+
+void test_sqrt() {
+  sycl::queue q(sycl::default_selector_v);
+  float *inValue = (float *)sycl::malloc_shared(sizeof(float), q);
+  float *output = (float *)sycl::malloc_shared(sizeof(float), q);
+  *inValue = value;
+  q.submit([&](sycl::handler &h) {
+     h.single_task([=] {
+       float res = sycl::sqrt(*inValue);
+       *output = res;
+     });
+   }).wait();
+
+  float hostRef = std::sqrt(value);
+  int ulpDist = std::abs(sycl::bit_cast<int32_t>(hostRef) -
+                         sycl::bit_cast<int32_t>(*output));
+  assert(ulpDist == 0 && "Sqrt is not precise");
+}
+
+int main() {
+  test_div();
+  test_sqrt();
+  return 0;
+}