diff --git a/SYCL/Regression/stream_exception_no_alloc.cpp b/SYCL/Regression/stream_exception_no_alloc.cpp
new file mode 100644
index 0000000000..550f6bf0a0
--- /dev/null
+++ b/SYCL/Regression/stream_exception_no_alloc.cpp
@@ -0,0 +1,30 @@
+// RUN: %clangxx -fsycl %s -o %t.out
+// RUN: env SYCL_PI_TRACE=2 %CPU_RUN_PLACEHOLDER %t.out 2>&1 %CPU_CHECK_PLACEHOLDER
+// RUN: env SYCL_PI_TRACE=2 %GPU_RUN_PLACEHOLDER %t.out 2>&1 %GPU_CHECK_PLACEHOLDER
+// RUN: env SYCL_PI_TRACE=2 %ACC_RUN_PLACEHOLDER %t.out 2>&1 %ACC_CHECK_PLACEHOLDER
+
+// NOTE: This test checks that sycl::stream does not allocate memory if it fails
+// during construction.
+
+#include <CL/sycl.hpp>
+
+#include <limits>
+
+int main() {
+  sycl::queue q;
+  q.submit([&](sycl::handler &cgh) {
+    try {
+      // Try to create stream with invalid workItemBufferSize parameter.
+      sycl::stream invalidStream{256, std::numeric_limits<size_t>::max(), cgh};
+      assert(false && "No exception was thrown.");
+    } catch (const sycl::invalid_parameter_error &) {
+      // Expected exception
+    } catch (...) {
+      assert(false && "Unexpected exception was thrown.");
+    }
+
+    cgh.single_task([=]() {});
+  });
+}
+
+// CHECK-NOT:---> piMemBufferCreate