diff --git a/shardy/dialect/sdy/transforms/export/insert_explicit_reshards.cc b/shardy/dialect/sdy/transforms/export/insert_explicit_reshards.cc
index 04c5ba45..19ec5e59 100644
--- a/shardy/dialect/sdy/transforms/export/insert_explicit_reshards.cc
+++ b/shardy/dialect/sdy/transforms/export/insert_explicit_reshards.cc
@@ -532,6 +532,14 @@ struct InsertExplicitReshardsPass
         return;
       }
 
+      // GSPMD partitioner adds extra all-gathers when an explicit
+      // reshards added for the case that the operand is not sharded but the
+      // result is sharded on the cholesky-factorization dimensions.
+      // TODO(enver): Handle CholeskyOp.
+      if (isa<stablehlo::CholeskyOp>(op)) {
+        return;
+      }
+
       // Checks if factors are sharded the same way across operands and results.
       if (hasCompatibleFactorShardings(shardingProjection)) {
         return;
diff --git a/shardy/dialect/sdy/transforms/export/test/insert_explicit_reshards.mlir b/shardy/dialect/sdy/transforms/export/test/insert_explicit_reshards.mlir
index eab0c60b..4668a986 100644
--- a/shardy/dialect/sdy/transforms/export/test/insert_explicit_reshards.mlir
+++ b/shardy/dialect/sdy/transforms/export/test/insert_explicit_reshards.mlir
@@ -450,3 +450,10 @@ func.func @dot_genaral_overlaps_and_trimmable_on_subaxis_multiple_axes(%arg0: te
   return %0 : tensor<64x8x16xf32>
 }
 
+// CHECK-LABEL: func @cholesky
+func.func @cholesky(%arg0: tensor<4x4xf32>) -> (tensor<4x4xf32> {sdy.sharding = #sdy.sharding<@mesh, [{"x"}, {"y"}]>}) {
+  // CHECK-NOT: sdy.reshard
+  %0 = stablehlo.cholesky %arg0 {sdy.sharding = #sdy.sharding_per_value<[<@mesh, [{"x"}, {"y"}]>]>, sdy.sharding_rule = #sdy.op_sharding_rule<([i, j])->([i, j]) {i=4, j=4}>} : tensor<4x4xf32>
+  return %0 : tensor<4x4xf32>
+}
+