diff --git a/unified-runtime/cmake/FetchLevelZero.cmake b/unified-runtime/cmake/FetchLevelZero.cmake
index 6c2cee33135c5..f80f20a93a776 100644
--- a/unified-runtime/cmake/FetchLevelZero.cmake
+++ b/unified-runtime/cmake/FetchLevelZero.cmake
@@ -41,7 +41,6 @@ if (NOT DEFINED LEVEL_ZERO_LIBRARY OR NOT DEFINED LEVEL_ZERO_INCLUDE_DIR)
         set(CMAKE_CXX_FLAGS "${CMAKE_CXX_FLAGS} -Wno-c++98-compat-extra-semi")
         set(CMAKE_CXX_FLAGS "${CMAKE_CXX_FLAGS} -Wno-unknown-warning-option")
     endif()
-    set(BUILD_STATIC ON)
 
     if (UR_LEVEL_ZERO_LOADER_REPO STREQUAL "")
         set(UR_LEVEL_ZERO_LOADER_REPO "https://github.com/oneapi-src/level-zero.git")
@@ -67,9 +66,46 @@ if (NOT DEFINED LEVEL_ZERO_LIBRARY OR NOT DEFINED LEVEL_ZERO_INCLUDE_DIR)
     if(MSVC)
         set(USE_Z7 ON)
     endif()
+    set(BUILD_STATIC ON)
     FetchContent_MakeAvailable(level-zero-loader)
     FetchContent_GetProperties(level-zero-loader)
-
+    # Allow build and install of the dynamic loader on Linux for Runtime Use.
+    # Windows cannot install the L0 Loader custom due to security which requires the Loader to be installed to System32.
+    if (NOT WIN32)
+        set(BUILD_STATIC OFF)
+        # Create a second copy of the repository for the second configuration
+        set(level-zero-loader-dynamic_SOURCE_DIR "${CMAKE_BINARY_DIR}/level-zero-loader-dynamic-src")
+
+        if(NOT EXISTS ${level-zero-loader-dynamic_SOURCE_DIR})
+            file(COPY ${level-zero-loader_SOURCE_DIR} DESTINATION ${level-zero-loader-dynamic_SOURCE_DIR})
+        endif()
+
+        # Build dynamic version for runtime purposes
+        set(BUILD_STATIC OFF)
+        set(level-zero-loader-dynamic_BUILD_DIR ${CMAKE_BINARY_DIR}/level-zero-loader-dynamic-build)
+        file(MAKE_DIRECTORY ${level-zero-loader-dynamic_BUILD_DIR})
+
+        execute_process(
+            COMMAND ${CMAKE_COMMAND} -G Ninja -DBUILD_STATIC=OFF -S ${CMAKE_BINARY_DIR}/level-zero-loader-dynamic-src/level-zero-loader-src -B ${level-zero-loader-dynamic_BUILD_DIR} -Wno-error
+        )
+
+        add_custom_target(
+            LEVEL_ZERO_DYNAMIC_LOADER
+            ALL
+            COMMAND ${CMAKE_COMMAND} --build ${level-zero-loader-dynamic_BUILD_DIR}
+        )
+
+        # Ensure the install directory exists or create it
+        file(MAKE_DIRECTORY ${CMAKE_INSTALL_PREFIX}/lib)
+        add_custom_command(
+            TARGET LEVEL_ZERO_DYNAMIC_LOADER POST_BUILD
+            COMMAND ${CMAKE_COMMAND} -E copy
+                ${CMAKE_BINARY_DIR}/level-zero-loader-dynamic-build/lib/libze_loader.so.1
+                ${CMAKE_BINARY_DIR}/level-zero-loader-dynamic-build/lib/libze_validation_layer.so.1
+                ${CMAKE_BINARY_DIR}/level-zero-loader-dynamic-build/lib/libze_tracing_layer.so.1
+                ${CMAKE_INSTALL_PREFIX}/lib
+        )
+    endif()
     # Restore original flags
     set(CMAKE_CXX_FLAGS "${CMAKE_CXX_FLAGS_BAK}")
     set(CMAKE_MSVC_RUNTIME_LIBRARY "${CMAKE_MSVC_RUNTIME_LIBRARY_BAK}")
diff --git a/unified-runtime/source/adapters/level_zero/CMakeLists.txt b/unified-runtime/source/adapters/level_zero/CMakeLists.txt
index 6eb08a6d93dde..0dc7cddb3a77f 100644
--- a/unified-runtime/source/adapters/level_zero/CMakeLists.txt
+++ b/unified-runtime/source/adapters/level_zero/CMakeLists.txt
@@ -116,6 +116,9 @@ if(UR_BUILD_ADAPTER_L0)
         "${CMAKE_CURRENT_SOURCE_DIR}/../../"
         LevelZeroLoader-Headers
     )
+    if (NOT WIN32)
+        add_dependencies(ur_adapter_level_zero LEVEL_ZERO_DYNAMIC_LOADER)
+    endif()
 endif()
 
 if(UR_BUILD_ADAPTER_L0_V2)
@@ -220,4 +223,7 @@ if(UR_BUILD_ADAPTER_L0_V2)
         "${CMAKE_CURRENT_SOURCE_DIR}/../../ur"
         LevelZeroLoader-Headers
     )
+    if (NOT WIN32)
+        add_dependencies(ur_adapter_level_zero_v2 LEVEL_ZERO_DYNAMIC_LOADER)
+    endif()
 endif()