diff --git a/sycl/plugins/level_zero/CMakeLists.txt b/sycl/plugins/level_zero/CMakeLists.txt
index 28cf7d7800dec..01c2ce74179c6 100755
--- a/sycl/plugins/level_zero/CMakeLists.txt
+++ b/sycl/plugins/level_zero/CMakeLists.txt
@@ -23,7 +23,7 @@ if (NOT DEFINED LEVEL_ZERO_LIBRARY OR NOT DEFINED LEVEL_ZERO_INCLUDE_DIR)
   endif()
   ExternalProject_Add(level-zero-loader
     GIT_REPOSITORY    https://github.com/oneapi-src/level-zero.git
-    GIT_TAG           v1.0.16
+    GIT_TAG           v1.2.3
     UPDATE_DISCONNECTED ${SYCL_EP_LEVEL_ZERO_LOADER_SKIP_AUTO_UPDATE}
     SOURCE_DIR        ${LEVEL_ZERO_LOADER_SOURCE_DIR}
     BINARY_DIR        "${CMAKE_CURRENT_BINARY_DIR}/level_zero_loader_build"