diff --git a/numba_dpex/core/utils/kernel_templates/reduction_template.py b/numba_dpex/core/utils/kernel_templates/reduction_template.py
index 3aefb202ef..882570bce1 100644
--- a/numba_dpex/core/utils/kernel_templates/reduction_template.py
+++ b/numba_dpex/core/utils/kernel_templates/reduction_template.py
@@ -99,7 +99,9 @@ def _generate_kernel_stub_as_string(self):
         for redvar in self._redvars:
             legal_redvar = self._redvars_dict[redvar]
             gufunc_txt += "    "
-            gufunc_txt += legal_redvar + " = 0\n"
+            gufunc_txt += legal_redvar + " = "
+            gufunc_txt += f"{self._parfor_reddict[redvar].init_val} \n"
+
         gufunc_txt += "    "
         gufunc_txt += self._sentinel_name + " = 0\n"
 
@@ -265,8 +267,15 @@ def _generate_kernel_stub_as_string(self):
         )
 
         for i, redvar in enumerate(self._redvars):
-            gufunc_txt += f"        {self._final_sum_var_name[i]}[0] += \
-                {self._partial_sum_var_name[i]}[j]\n"
+            redop = self._parfor_reddict[redvar].redop
+            if redop == operator.iadd:
+                gufunc_txt += f"        {self._final_sum_var_name[i]}[0] += \
+                    {self._partial_sum_var_name[i]}[j]\n"
+            elif redop == operator.imul:
+                gufunc_txt += f"        {self._final_sum_var_name[i]}[0] *= \
+                    {self._partial_sum_var_name[i]}[j]\n"
+            else:
+                raise NotImplementedError
 
         gufunc_txt += (
             f"    for j in range ({self._global_size_mod_var_name[0]}) :\n"
@@ -275,7 +284,8 @@ def _generate_kernel_stub_as_string(self):
         for redvar in self._redvars:
             legal_redvar = self._redvars_dict[redvar]
             gufunc_txt += "        "
-            gufunc_txt += legal_redvar + " = 0\n"
+            gufunc_txt += legal_redvar + " = "
+            gufunc_txt += f"{self._parfor_reddict[redvar].init_val}\n"
 
         gufunc_txt += (
             "        "
diff --git a/numba_dpex/tests/dpjit_tests/test_dpjit_reduction.py b/numba_dpex/tests/dpjit_tests/test_dpjit_reduction.py
index 64da9351b7..06fb8f2671 100644
--- a/numba_dpex/tests/dpjit_tests/test_dpjit_reduction.py
+++ b/numba_dpex/tests/dpjit_tests/test_dpjit_reduction.py
@@ -9,11 +9,11 @@
 
 import numba_dpex as dpex
 
-N = 100
+N = 10
 
 
 @dpex.dpjit
-def vecadd_prange(a, b):
+def vecadd_prange1(a, b):
     s = 0
     t = 0
     for i in nb.prange(a.shape[0]):
@@ -24,13 +24,21 @@ def vecadd_prange(a, b):
 
 
 @dpex.dpjit
-def vecmul_prange(a, b):
+def vecadd_prange2(a, b):
     t = 0
     for i in nb.prange(a.shape[0]):
         t += a[i] * b[i]
     return t
 
 
+@dpex.dpjit
+def vecmul_prange(a, b):
+    t = 1
+    for i in nb.prange(a.shape[0]):
+        t *= a[i] + b[i]
+    return t
+
+
 @dpex.dpjit
 def vecadd_prange_float(a, b):
     s = numpy.float32(0)
@@ -57,22 +65,34 @@ def input_arrays(request):
     return a, b
 
 
-def test_dpjit_array_arg_types(input_arrays):
+def test_dpjit_array_arg_types_add1(input_arrays):
     """Tests passing float and int type dpnp arrays to a dpjit
     prange function.
 
     Args:
         input_arrays (dpnp.ndarray): Array arguments to be passed to a kernel.
     """
-    s = 200
-
+    s = 20
     a, b = input_arrays
-
-    c = vecadd_prange(a, b)
+    c = vecadd_prange1(a, b)
 
     assert s == c
 
 
+def test_dpjit_array_arg_types_add2(input_arrays):
+    """Tests passing float and int type dpnp arrays to a dpjit
+    prange function.
+
+    Args:
+        input_arrays (dpnp.ndarray): Array arguments to be passed to a kernel.
+    """
+    t = 45
+    a, b = input_arrays
+    d = vecadd_prange2(a, b)
+
+    assert t == d
+
+
 def test_dpjit_array_arg_types_mul(input_arrays):
     """Tests passing float and int type dpnp arrays to a dpjit
     prange function.
@@ -80,7 +100,7 @@ def test_dpjit_array_arg_types_mul(input_arrays):
     Args:
         input_arrays (dpnp.ndarray): Array arguments to be passed to a kernel.
     """
-    s = 4950
+    s = 3628800
 
     a, b = input_arrays
 
@@ -97,8 +117,8 @@ def test_dpjit_array_arg_float32_types(input_arrays):
         input_arrays (dpnp.ndarray): Array arguments to be passed to a kernel.
     """
     s = 9900
-    a = dpnp.arange(N, dtype=dpnp.float32)
-    b = dpnp.arange(N, dtype=dpnp.float32)
+    a = dpnp.arange(100, dtype=dpnp.float32)
+    b = dpnp.arange(100, dtype=dpnp.float32)
 
     c = vecadd_prange_float(a, b)