diff --git a/.github/workflows/build_and_test.yml b/.github/workflows/build_and_test.yml
index c28e4a1544a..a24bad4aa51 100644
--- a/.github/workflows/build_and_test.yml
+++ b/.github/workflows/build_and_test.yml
@@ -45,7 +45,7 @@ jobs:
     with:
       docker-image: ${{ needs.build.outputs.docker-image }}
       runner: linux.8xlarge.nvidia.gpu
-      timeout-minutes: 240
+      timeout-minutes: 300
       disable-xrt: 1
     secrets:
       gcloud-service-key: ${{ secrets.GCLOUD_SERVICE_KEY }}
diff --git a/test/spmd/test_xla_spmd_python_api_interaction.py b/test/spmd/test_xla_spmd_python_api_interaction.py
index 1d061f0d400..8ea4db3e051 100644
--- a/test/spmd/test_xla_spmd_python_api_interaction.py
+++ b/test/spmd/test_xla_spmd_python_api_interaction.py
@@ -6,6 +6,7 @@
 import torch_xla
 import torch_xla.core.xla_model as xm
 from torch_xla import runtime as xr
+from torch_xla.amp import autocast
 
 import test_xla_sharding_base
 
@@ -112,6 +113,25 @@ def test_runtime_spmd_api(self):
     os.environ["XLA_USE_SPMD"] = "1"
 
 
+class BasicAutocastAPITest(test_xla_sharding_base.XlaShardingTest):
+
+  @classmethod
+  def setUpClass(cls):
+    xr.use_spmd()
+    super().setUpClass()
+
+  @unittest.skipIf(xr.device_type() not in ['GPU', 'TPU'],
+                   f"TPU/GPU autocast test.")
+  def test_xla_autocast_api(self):
+    device = xm.xla_device()
+    t1 = torch.ones([2, 3], device=device, dtype=torch.float32)
+    t2 = torch.ones([3, 2], device=device, dtype=torch.float32)
+    with autocast(device, dtype=torch.bfloat16):
+      t3 = torch.matmul(t1, t2)
+    expected_dtype = torch.bfloat16 if xr.is_bf16_supported() else torch.float16
+    self.assertTrue(t3.dtype == expected_dtype)
+
+
 if __name__ == '__main__':
   test = unittest.main()
   sys.exit(0 if test.result.wasSuccessful() else 1)
diff --git a/test/test_autocast.py b/test/test_autocast.py
index 7e1a01e346d..ec8246ec22c 100644
--- a/test/test_autocast.py
+++ b/test/test_autocast.py
@@ -7,7 +7,6 @@
 sys.argv = [sys.argv[0]] + leftovers
 
 import torch
-import torch_xla
 import torch_xla.core.xla_model as xm
 import collections
 import unittest
@@ -152,6 +151,48 @@ def __init__(self, dev):
     self.methods_bf16 = [("__matmul__", mat0_bf16 + mat1_fp32)]
 
 
+class AutocastCudaTestExtraLists(object):
+
+  def __init__(self, dev):
+    super().__init__()
+    n = 8
+    dimsets = ((n, n, n), (n, n, n, n), (n, n, n, n, n))
+    conv_args_fp32 = [(torch.randn(dimset, dtype=torch.float32, device=dev),
+                       torch.randn(dimset, dtype=torch.float32, device=dev))
+                      for dimset in dimsets]
+
+    mat0_fp32 = (torch.randn((n, n), dtype=torch.float32, device=dev),)
+    mat1_fp32 = (torch.randn((n, n), dtype=torch.float32, device=dev),)
+    mat2_fp32 = (torch.randn((n, n), dtype=torch.float32, device=dev),)
+    mat3_fp32 = (torch.randn((n, n), dtype=torch.float32, device=dev),)
+
+    pointwise0_fp32 = (torch.randn(n, dtype=torch.float32, device=dev),)
+
+    element0_fp32 = (torch.randn(1, dtype=torch.float32, device=dev),)
+
+    # This is currently not part of AutocastTestLists and excludes `relu`, `addbmm`
+    self.torch_bf16 = [
+        ("conv1d", conv_args_fp32[0]),
+        ("conv2d", conv_args_fp32[1]),
+        ("conv3d", conv_args_fp32[2]),
+        ("bmm", (torch.randn((n, n, n), device=dev, dtype=torch.float32),
+                 torch.randn((n, n, n), device=dev, dtype=torch.float32))),
+        ("mm", mat0_fp32 + mat1_fp32),
+        ("matmul", mat0_fp32 + mat1_fp32),
+        ("baddbmm", (torch.randn((n, n, n), device=dev, dtype=torch.float32),
+                     torch.randn((n, n, n), device=dev, dtype=torch.float32),
+                     torch.randn((n, n, n), device=dev, dtype=torch.float32))),
+        ("addmm", mat1_fp32 + mat2_fp32 + mat3_fp32),
+        ("conv_tbc", (torch.randn((10, 7, 3), device=dev, dtype=torch.float32),
+                      torch.randn((5, 3, 5), device=dev, dtype=torch.float32),
+                      torch.randn(5, device=dev, dtype=torch.float32), 0)),
+        ("conv_transpose1d", conv_args_fp32[0]),
+        ("conv_transpose2d", conv_args_fp32[1]),
+        ("conv_transpose3d", conv_args_fp32[2]),
+        ("prelu", pointwise0_fp32 + element0_fp32),
+    ]
+
+
 class AutocastCudaTestUnsupportedLists(object):
 
   def __init__(self):
@@ -301,8 +342,10 @@ class TestAutocastCuda(TestAutocastBase):
 
   def setUp(self):
     super(TestAutocastCuda, self).setUp()
-    self.is_autocast_enabled = torch.is_autocast_enabled
+    self.is_autocast_enabled = torch.is_autocast_xla_enabled
     self.autocast_lists = AutocastTestLists(torch.device(xm.xla_device()))
+    self.autocast_lists_extra = AutocastCudaTestExtraLists(
+        torch.device(xm.xla_device()))
     self.autocast_unsupported_lists = AutocastCudaTestUnsupportedLists()
 
   def test_autocast_nn_fp16(self):
@@ -334,6 +377,17 @@ def test_autocast_torch_fp32(self):
       self._run_autocast_outofplace(
           op, args, torch.float32, add_kwargs=maybe_kwargs)
 
+  def test_autocast_torch_bf16(self):
+    bf16_test_list = [
+        tp for tp in getattr(self.autocast_lists_extra, 'torch_bf16')
+    ]
+    for op_with_args in bf16_test_list:
+      op, args, maybe_kwargs = self.args_maybe_kwargs(op_with_args)
+      # Expects float16, following the torch GPU autocast policy:
+      # https://github.com/pytorch/pytorch/blob/main/aten/src/ATen/autocast_mode.cpp
+      self._run_autocast_outofplace(
+          op, args, torch.float16, add_kwargs=maybe_kwargs)
+
   def test_autocast_torch_need_autocast_promote(self):
     for op, args in self.get_autocast_list('torch_need_autocast_promote'):
       self._run_autocast_outofplace(op, args, torch.float32)
diff --git a/torch_xla/amp/autocast_mode.py b/torch_xla/amp/autocast_mode.py
index 4394a537fd0..975376e5057 100644
--- a/torch_xla/amp/autocast_mode.py
+++ b/torch_xla/amp/autocast_mode.py
@@ -1,48 +1,85 @@
 import torch
 import torch_xla.core.xla_model as xm
+from torch_xla import runtime as xr
 from typing import Any
 import warnings
 
 
 class autocast(torch.amp.autocast_mode.autocast):
   r"""
-    See :class:`torch.autocast`.
-    ``torch_xla.amp.autocast(device, **kwargs)`` is equivalent to 
-    ``torch.autocast("xla", **kwargs)`` for TPUs
-    ``torch.autocast("cuda", **kwargs)`` for GPUs.
-    """
+  `torch.autocast` for XLA backend devices. See :class:`torch.autocast`.
+  ``torch_xla.amp.autocast(device, **kwargs)`` is equivalent to
+  ``torch.autocast("xla", **kwargs)`` for XLA:GPU and XLA:TPU for dtype torch.bfloat16,
+  ``torch.autocast("cuda", **kwargs)`` for XLA:GPU and other dtypes.
+  """
 
   def __init__(self,
                device,
                enabled: bool = True,
                dtype: torch.dtype = None,
                cache_enabled: bool = True):
-    if xm.xla_device_hw(device) == 'GPU':
+    # `torch_xla.amp.autocast` is intended for XLA backend, with AutocastXLA dispatch key.
+    assert 'xla' in device.__str__(
+    ), "torch_xla.autocast is available for XLA:TPU, XLA:GPU"
+
+    self._enabled = enabled
+    self._xla_device = xm.xla_device_hw(device)
+    if self._xla_device == 'GPU':
+      backend = 'cuda'
       if dtype is None:
         dtype = torch.float16
+      elif dtype == torch.bfloat16:
+        if xr.is_bf16_supported() and not torch.cuda.is_available():
+          # XLA:GPU with bfloat16 should run on `xla` backend
+          # unless torch.autocast is compiled with cuda.
+          backend = 'xla'
+        else:
+          # This has been the default behavior for unsupported bfloat16 dtype
+          dtype = torch.float16
+          error_message = "In XLA:GPU autocast, but bfloat16 is not supported on this HW.\n"
+          error_message += ("Using the default cuda autocast dtype float16.")
+      self._dtype = dtype
       super().__init__(
-          "cuda", enabled=enabled, dtype=dtype, cache_enabled=cache_enabled)
-    elif xm.xla_device_hw(device) == 'TPU':
+          backend,
+          enabled=enabled,
+          dtype=self._dtype,
+          cache_enabled=cache_enabled)
+    elif self._xla_device == 'TPU':
       if dtype is None:
         dtype = torch.bfloat16
       if dtype != torch.bfloat16:
-        error_message = "In TPU autocast, but the target dtype is not supported. Disabling autocast.\n"
+        error_message = "In XLA:TPU autocast, but the target dtype is not supported. Disabling autocast.\n"
         error_message += (
             "TPU Autocast only supports dtype of torch.bfloat16 currently.")
         warnings.warn(error_message)
         enabled = False
+      self._dtype = dtype
       super().__init__(
-          "xla", enabled=enabled, dtype=dtype, cache_enabled=cache_enabled)
+          "xla",
+          enabled=enabled,
+          dtype=self._dtype,
+          cache_enabled=cache_enabled)
     else:
       print(
           'Warning: AMP only supported for XLA:TPU and XLA:GPU. Ignoring autocast.'
       )
 
   def __enter__(self):
+    # This ensures that xla autocast is enabled even for XLA:GPU, which calls
+    # `torch.amp.autocast_mode.autocast` with `cuda` backend.
+    if self._xla_device == 'GPU':
+      self.prev = torch.is_autocast_xla_enabled()  # type: ignore[attr-defined]
+      self.prev_dtype = torch.get_autocast_xla_dtype(
+      )  # type: ignore[attr-defined]
+      torch.set_autocast_xla_enabled(self._enabled)
+      torch.set_autocast_xla_dtype(self._dtype)
     return super().__enter__()
 
   def __exit__(self, exc_type: Any, exc_val: Any,
                exc_tb: Any):  # type: ignore[override]
+    if self._xla_device == 'GPU':
+      torch.set_autocast_xla_enabled(self.prev)
+      torch.set_autocast_xla_dtype(self.prev_dtype)
     return super().__exit__(exc_type, exc_val, exc_tb)
 
   def __call__(self, func):
diff --git a/torch_xla/runtime.py b/torch_xla/runtime.py
index ee05ddc14b5..a50e92b55a5 100644
--- a/torch_xla/runtime.py
+++ b/torch_xla/runtime.py
@@ -84,6 +84,16 @@ def wrapper(*args, **kwargs):
   return wrapper
 
 
+def is_bf16_supported():
+  """Returns whether torch.bfloat16 is supported on this environment.
+  """
+  try:
+    torch.tensor([1.], dtype=torch.bfloat16, device=xm.xla_device())
+    return True
+  except Exception as e:
+    return False
+
+
 @requires_pjrt
 def xla_device(n: Optional[int] = None,
                devkind: Optional[str] = None) -> torch.device: