diff --git a/tests/python/test_dtensor.py b/tests/python/test_dtensor.py
index de52067b500..6d976e0ee74 100644
--- a/tests/python/test_dtensor.py
+++ b/tests/python/test_dtensor.py
@@ -116,3 +116,119 @@ def define_fusion(fd: FusionDefinition):
     torch.testing.assert_close(out_dtensor.to_local(), in_dtensor.to_local() + 1)
     assert out_dtensor.device_mesh == in_dtensor.device_mesh
     assert out_dtensor.placements == in_dtensor.placements
+
+
+@pytest.mark.mpi
+def test_linear(setup_process_group):
+    class FusionDefintionArguments:
+        def __init__(self, num_devices: int, batch: int, sequence: int, hidden: int):
+            self.d = num_devices
+            self.b = batch
+            self.s = sequence
+            self.e = hidden
+
+    class LinearForwardDefinition(FusionDefintionArguments):
+        def __call__(self, fd: FusionDefinition):
+            inp = fd.define_tensor([self.b, self.s, self.e])
+            weight = fd.define_tensor(
+                [self.d, self.e, self.e], contiguity=[True, True, True]
+            )
+            bias = fd.define_tensor([self.d, self.e], contiguity=[True, True])
+            out = fd.ops.linear(inp, weight, bias)
+            fd.add_output(out)
+
+    class LinearBackwardDefinition(FusionDefintionArguments):
+        def __call__(self, fd: FusionDefinition):
+            x = fd.define_tensor([self.b, self.s, self.e])
+            x = fd.ops.reshape(x, [self.b * self.s, self.e])
+            w = fd.define_tensor([self.d, self.e, self.e], contiguity=True)
+            grad = fd.define_tensor([self.d, self.b, self.s, self.e], contiguity=True)
+            grad = fd.ops.reshape(grad, [self.d, self.b * self.s, self.e])
+
+            grad_x_partials = fd.ops.matmul(grad, w)
+            grad_x = fd.ops.sum(grad_x_partials, [0])  # all reduce
+            grad_t = fd.ops.permute(grad, [0, 2, 1])
+            grad_w = fd.ops.matmul(grad_t, x)
+            grad_b = fd.ops.sum(grad, [1])
+
+            grad_x = fd.ops.reshape(grad_x, [self.b, self.s, self.e])
+            fd.add_output(grad_x)
+            fd.add_output(grad_w)
+            fd.add_output(grad_b)
+
+    class LinearFunction(torch.autograd.Function):
+        @staticmethod
+        def forward(
+            ctx,
+            input: DTensor,
+            weight: DTensor,
+            bias: DTensor,
+        ):
+            b, s, e = input._local_tensor.shape
+            d = weight.device_mesh.size()
+            op = FusionDefinitionWrapper(LinearForwardDefinition(d, b, s, e))
+            outputs = op([input, weight, bias])
+            ctx.save_for_backward(input, weight)
+            return outputs[0]
+
+        @staticmethod
+        def backward(ctx, grad_output: DTensor):
+            d, b, s, e = grad_output.shape
+            op = FusionDefinitionWrapper(LinearBackwardDefinition(d, b, s, e))
+            input, weight = ctx.saved_tensors
+            outputs = op([input, weight, grad_output])
+            return outputs[0], outputs[1], outputs[2]
+
+    world_size = dist.get_world_size()
+    rank = dist.get_rank()
+    torch.cuda.set_device(rank)
+
+    mesh = dist.device_mesh.init_device_mesh("cuda", [world_size])
+
+    d = world_size
+    b, s, e = 2, 1024, 768
+    inp_tensor = torch.randn(b, s, e, device="cuda", requires_grad=True)
+    weight_tensor = torch.randn(world_size, e, e, device="cuda", requires_grad=True)
+    bias_tensor = torch.randn(world_size, e, device="cuda", requires_grad=True)
+
+    inp_dtensor = dist.tensor.distribute_tensor(inp_tensor, mesh, [Replicate()])
+    weight_dtensor = dist.tensor.distribute_tensor(weight_tensor, mesh, [Shard(0)])
+    bias_dtensor = dist.tensor.distribute_tensor(bias_tensor, mesh, [Shard(0)])
+
+    # expected forward
+    unsharded_out_tensor = torch.nn.functional.linear(
+        inp_tensor, weight_tensor.view([d * e, e]), bias_tensor.view([d * e])
+    )
+    expected_out_tensor = unsharded_out_tensor.view([b, s, d, e]).permute(2, 0, 1, 3)[
+        rank : rank + 1
+    ]
+
+    # multidevice forward
+    out_dtensor = LinearFunction.apply(inp_dtensor, weight_dtensor, bias_dtensor)
+
+    # expected backward
+    (expected_grad_x, expected_grad_w, expected_grad_b) = torch.autograd.grad(
+        unsharded_out_tensor,
+        (inp_tensor, weight_tensor, bias_tensor),
+        torch.ones_like(unsharded_out_tensor),
+    )
+
+    # multidevice backward
+    (grad_x, grad_w, grad_b) = torch.autograd.grad(
+        out_dtensor,
+        (inp_dtensor, weight_dtensor, bias_dtensor),
+        torch.ones_like(out_dtensor),
+    )
+
+    torch.testing.assert_close(
+        out_dtensor.to_local(), expected_out_tensor, rtol=1.3e-6, atol=1e-3
+    )
+    torch.testing.assert_close(
+        expected_grad_x, grad_x.to_local(), rtol=1.3e-6, atol=1e-3
+    )
+    torch.testing.assert_close(
+        expected_grad_w[rank : rank + 1], grad_w.to_local(), rtol=1.3e-6, atol=1e-3
+    )
+    torch.testing.assert_close(
+        expected_grad_b[rank : rank + 1], grad_b.to_local(), rtol=1.3e-6, atol=1e-3
+    )