diff --git a/numba_dpex/core/pipelines/dpjit_compiler.py b/numba_dpex/core/pipelines/dpjit_compiler.py
new file mode 100644
index 0000000000..11dea8a288
--- /dev/null
+++ b/numba_dpex/core/pipelines/dpjit_compiler.py
@@ -0,0 +1,120 @@
+# SPDX-FileCopyrightText: 2020 - 2022 Intel Corporation
+#
+# SPDX-License-Identifier: Apache-2.0
+
+from numba.core.compiler import CompilerBase, DefaultPassBuilder
+from numba.core.compiler_machinery import PassManager
+from numba.core.typed_passes import (
+    AnnotateTypes,
+    InlineOverloads,
+    IRLegalization,
+    NopythonRewrites,
+    NoPythonSupportedFeatureValidation,
+    NopythonTypeInference,
+    PreLowerStripPhis,
+    PreParforPass,
+)
+
+from numba_dpex.core.exceptions import UnsupportedCompilationModeError
+from numba_dpex.core.passes import ParforLoweringPass
+from numba_dpex.core.passes.passes import (
+    DumpParforDiagnostics,
+    NoPythonBackend,
+    ParforFusionPass,
+    ParforPass,
+    ParforPreLoweringPass,
+)
+from numba_dpex.parfor_diagnostics import ExtendedParforDiagnostics
+
+
+class _DpjitPassBuilder(object):
+    """
+    A pass builder for dpex's DpjitCompiler that adds supports for
+    offloading dpnp array expressions and dpnp library calls to a SYCL device.
+
+    The pass builder does not implement pipelines for objectmode or interpreted
+    execution.
+    """
+
+    @staticmethod
+    def define_typed_pipeline(state, name="dpex_dpjit_typed"):
+        """Returns the typed part of the nopython pipeline"""
+        pm = PassManager(name)
+        # typing
+        pm.add_pass(NopythonTypeInference, "nopython frontend")
+        # Annotate only once legalized
+        pm.add_pass(AnnotateTypes, "annotate types")
+        # strip phis
+        pm.add_pass(PreLowerStripPhis, "remove phis nodes")
+
+        # optimization
+        pm.add_pass(InlineOverloads, "inline overloaded functions")
+        pm.add_pass(PreParforPass, "Preprocessing for parfors")
+        if not state.flags.no_rewrites:
+            pm.add_pass(NopythonRewrites, "nopython rewrites")
+        pm.add_pass(ParforPass, "convert to parfors")
+        pm.add_pass(ParforFusionPass, "fuse parfors")
+        pm.add_pass(ParforPreLoweringPass, "parfor prelowering")
+
+        pm.finalize()
+        return pm
+
+    @staticmethod
+    def define_nopython_lowering_pipeline(state, name="dpex_dpjit_lowering"):
+        """Returns an nopython mode pipeline based PassManager"""
+        pm = PassManager(name)
+
+        # legalize
+        pm.add_pass(
+            NoPythonSupportedFeatureValidation,
+            "ensure features that are in use are in a valid form",
+        )
+        pm.add_pass(IRLegalization, "ensure IR is legal prior to lowering")
+
+        # lower
+        pm.add_pass(ParforLoweringPass, "Custom lowerer for dpex parfor nodes")
+        pm.add_pass(NoPythonBackend, "nopython mode backend")
+        pm.add_pass(DumpParforDiagnostics, "dump parfor diagnostics")
+
+        pm.finalize()
+        return pm
+
+    @staticmethod
+    def define_nopython_pipeline(state, name="dpex_dpjit_nopython"):
+        """Returns an nopython mode pipeline based PassManager"""
+        # compose pipeline from untyped, typed and lowering parts
+        dpb = _DpjitPassBuilder
+        pm = PassManager(name)
+        untyped_passes = DefaultPassBuilder.define_untyped_pipeline(state)
+        pm.passes.extend(untyped_passes.passes)
+
+        typed_passes = dpb.define_typed_pipeline(state)
+        pm.passes.extend(typed_passes.passes)
+
+        lowering_passes = dpb.define_nopython_lowering_pipeline(state)
+        pm.passes.extend(lowering_passes.passes)
+
+        pm.finalize()
+        return pm
+
+
+class DpjitCompiler(CompilerBase):
+    """Dpex's offload compiler pipeline that can offload parfor nodes and
+    other NumPy-based library calls to a SYCL device.
+
+    .. note:: Deprecated in 0.20
+          The offload compiler is deprecated and will be removed in a future
+          release.
+    """
+
+    def define_pipelines(self):
+        pms = []
+        self.state.parfor_diagnostics = ExtendedParforDiagnostics()
+        self.state.metadata[
+            "parfor_diagnostics"
+        ] = self.state.parfor_diagnostics
+        if not self.state.flags.force_pyobject:
+            pms.append(_DpjitPassBuilder.define_nopython_pipeline(self.state))
+        if self.state.status.can_fallback or self.state.flags.force_pyobject:
+            raise UnsupportedCompilationModeError()
+        return pms
diff --git a/numba_dpex/decorators.py b/numba_dpex/decorators.py
index 1c05dfe495..8b27c0d358 100644
--- a/numba_dpex/decorators.py
+++ b/numba_dpex/decorators.py
@@ -16,7 +16,7 @@
     compile_func,
     compile_func_template,
 )
-from numba_dpex.core.pipelines.offload_compiler import OffloadCompiler
+from numba_dpex.core.pipelines.dpjit_compiler import DpjitCompiler
 
 
 def kernel(
@@ -165,7 +165,8 @@ def dpjit(*args, **kws):
         )
         del kws["forceobj"]
     kws.update({"nopython": True})
-    kws.update({"pipeline_class": OffloadCompiler})
+    kws.update({"parallel": True})
+    kws.update({"pipeline_class": DpjitCompiler})
 
     # FIXME: When trying to use dpex's target context, overloads do not work
     # properly. We will turn on dpex target once the issue is fixed.