diff --git a/test/dynamo/test_bridge.py b/test/dynamo/test_bridge.py
index a419f9335db..a40688a9164 100644
--- a/test/dynamo/test_bridge.py
+++ b/test/dynamo/test_bridge.py
@@ -240,6 +240,17 @@ def foo(x):
     x = torch.randint(0, 10, (10,), device=device)
     foo(x)
 
+  def test_inputs_not_computed(self):
+
+    @torch.compile(backend="openxla")
+    def foo(x):
+      return x * 2
+
+    device = xm.xla_device()
+    x = torch.rand(5, device=device)
+    x = x.unsqueeze(dim=-1)
+    foo(x)
+
 
 if __name__ == "__main__":
   from torch._dynamo.test_case import run_tests
diff --git a/torch_xla/core/dynamo_bridge.py b/torch_xla/core/dynamo_bridge.py
index d9c13c6ec69..e7a24a8e5f3 100644
--- a/torch_xla/core/dynamo_bridge.py
+++ b/torch_xla/core/dynamo_bridge.py
@@ -455,6 +455,12 @@ def call_module(self, target, args, kwargs):
 
 
 def extract_compiled_graph(xla_model: torch.fx.GraphModule, xla_args):
+  # Synchronize xla_args, so that each FunctionalTensorWrapper argument updates its
+  # value reference before actually computing it.
+  for a in xla_args:
+    if isinstance(a, torch.Tensor) and torch._is_functional_tensor(a):
+      torch._functionalize_sync(a)
+
   # This call is critical to make sure xla_args' tensor id show up in graph_input_tensor_ids
   xm.mark_step()