diff --git a/tests/pytorch/test_parallel_cross_entropy.py b/tests/pytorch/test_parallel_cross_entropy.py
index 77bea2b360..fa56852ffc 100644
--- a/tests/pytorch/test_parallel_cross_entropy.py
+++ b/tests/pytorch/test_parallel_cross_entropy.py
@@ -6,6 +6,8 @@
 import torch
 from transformer_engine.pytorch.cross_entropy import parallel_cross_entropy
 
+from utils import dtype_tols
+
 
 class TestParallelCrossEntropy:
 
@@ -18,19 +20,25 @@ def generate_infra(self, reduce_loss: bool, label_smoothing: float):
             label_smoothing=label_smoothing, reduction="mean" if reduce_loss else "none"
         )
 
-    def generate_input(self, dtype: torch.dtype, swap_dim: bool, ignore_idx: bool):
-
+    def generate_input(
+        self,
+        dtype: torch.dtype,
+        swap_dim: bool,
+        ignore_idx: bool,
+        device: torch.device = "cuda",
+    ):
         SQ = random.choice([64, 128])
         batch = random.choice([1, 2])
         vocab = random.choice([64000, 128000])
         ignore = random.sample(range(0, SQ - 1), 5)
 
+        # Generate random data
         if swap_dim:
-            self.input_test = torch.rand((SQ, batch, vocab), dtype=dtype).cuda()
-            self.tar_test = torch.randint(0, vocab, (SQ, batch)).cuda()
+            self.input_test = torch.rand((SQ, batch, vocab), dtype=dtype, device=device)
+            self.tar_test = torch.randint(0, vocab, (SQ, batch), device=device)
         else:
-            self.input_test = torch.rand((batch, SQ, vocab), dtype=dtype).cuda()
-            self.tar_test = torch.randint(0, vocab, (batch, SQ)).cuda()
+            self.input_test = torch.rand((batch, SQ, vocab), dtype=dtype, device=device)
+            self.tar_test = torch.randint(0, vocab, (batch, SQ), device=device)
 
         if ignore_idx:
             for i in ignore:
@@ -40,9 +48,14 @@ def generate_input(self, dtype: torch.dtype, swap_dim: bool, ignore_idx: bool):
                 else:
                     self.tar_test[0][i] = -100
 
+        # Make copy of data for reference implementation
         self.input_ref = torch.reshape(self.input_test.clone().detach(), (batch * SQ, vocab))
         self.tar_ref = torch.reshape(self.tar_test.clone().detach(), (batch * SQ,))
 
+        # Enable autograd
+        self.input_test.requires_grad_()
+        self.input_ref.requires_grad_()
+
     def one_iteration_test(
         self,
         dtype: torch.dtype,
@@ -52,18 +65,20 @@ def one_iteration_test(
         ignore_idx: bool = False,
     ):
 
+        # Random data
         self.generate_input(dtype, swap_dim, ignore_idx)
 
-        self.input_test.requires_grad_(True)
-        self.input_ref.requires_grad_(True)
-
+        # Forward pass
         test_loss = self.test_loss_func(
             self.input_test, self.tar_test, label_smoothing, reduce_loss, None
         )
-
         ref_loss = self.ref_loss_func(self.input_ref, self.tar_ref)
 
-        # Handle backward pass based on the test scenario
+        # Compute square to avoid trivial backward pass
+        test_loss = torch.square(test_loss)
+        ref_loss = torch.square(ref_loss)
+
+        # Backward pass
         if reduce_loss:
             test_loss.backward()
             ref_loss.backward()
@@ -71,16 +86,18 @@ def one_iteration_test(
             test_loss.sum().backward()
             ref_loss.sum().backward()
 
-        test_loss = torch.flatten(test_loss) if not reduce_loss else test_loss
-
-        if ignore_idx:
-            print(test_loss, ref_loss)
-
-        # Compare gradients when backward pass was called
-        torch.testing.assert_close(
-            torch.flatten(self.input_test.grad, start_dim=0, end_dim=1), self.input_ref.grad
-        )
-
+        # Check that loss and grad input match
+        tols = dtype_tols(dtype)
+        test_loss = test_loss.to(dtype=torch.float64, device="cpu")
+        ref_loss = test_loss.to(dtype=torch.float64, device="cpu")
+        ref_loss = ref_loss.reshape(test_loss.size())
+        test_grad_input = self.input_test.grad.to(dtype=torch.float64, device="cpu")
+        ref_grad_input = self.input_ref.grad.to(dtype=torch.float64, device="cpu")
+        ref_grad_input = ref_grad_input.reshape(test_grad_input.size())
+        torch.testing.assert_close(test_loss, ref_loss, **tols)
+        torch.testing.assert_close(test_grad_input, ref_grad_input, **tols)
+
+        # Reset data
         self.input_test = None
         self.input_ref = None
         self.tar_test = None
diff --git a/transformer_engine/pytorch/triton/cross_entropy.py b/transformer_engine/pytorch/triton/cross_entropy.py
index 323a939223..7cfff1da9d 100644
--- a/transformer_engine/pytorch/triton/cross_entropy.py
+++ b/transformer_engine/pytorch/triton/cross_entropy.py
@@ -230,6 +230,7 @@ def element_mul_kernel(
     X_ptr,
     X_stride,
     grad_output_ptr,
+    grad_output_stride,
     n_cols,
     BLOCK_SIZE: tl.constexpr,
 ):
@@ -252,6 +253,7 @@ def element_mul_kernel(
     X_ptr += program_id * X_stride
 
     # Load the gradient output value
+    grad_output_ptr += program_id * grad_output_stride
     grad_output = tl.load(grad_output_ptr)
 
     # Perform the element-wise multiplication
@@ -360,6 +362,7 @@ def cross_entropy_backward(
             _input,
             _input.stride(-2),
             grad_output,
+            1 if grad_output.numel() > 1 else 0,
             V,
             BLOCK_SIZE=BLOCK_SIZE,
             num_warps=32,