diff --git a/src/xccl/ProcessGroupXCCL.cpp b/src/xccl/ProcessGroupXCCL.cpp
index 9f72cd1bd..c820a1c48 100644
--- a/src/xccl/ProcessGroupXCCL.cpp
+++ b/src/xccl/ProcessGroupXCCL.cpp
@@ -283,6 +283,11 @@ bool ProcessGroupXCCL::WorkXCCL::isCompleted() {
 
 void ProcessGroupXCCL::WorkXCCL::synchronize() {
   synchronizeStream();
+  if (c10d::allow_inflight_collective_as_graph_input()) {
+    c10d::unregister_work(
+        c10::intrusive_ptr<
+            ProcessGroupXCCL::WorkXCCL>::unsafe_reclaim_from_nonowning(this));
+  }
 }
 
 void ProcessGroupXCCL::WorkXCCL::synchronizeStream() {
diff --git a/test/xpu/distributed/test_c10d_xccl.py b/test/xpu/distributed/test_c10d_xccl.py
index 916524073..44a3ac148 100644
--- a/test/xpu/distributed/test_c10d_xccl.py
+++ b/test/xpu/distributed/test_c10d_xccl.py
@@ -12,6 +12,7 @@
 
 import torch
 import torch.distributed as c10d
+import torch.distributed._functional_collectives as _functional_collectives
 
 if not c10d.is_available() or not c10d.is_xccl_available():
     print("c10d XCCL not available, skipping tests", file=sys.stderr)
@@ -626,6 +627,86 @@ def test_all_gather_into_tensor(self):
                     tensor.view(torch.float32),
                 )
 
+    @requires_xccl()
+    @skip_if_lt_x_gpu(2)
+    def test_unwaited(self) -> None:
+        # Verify that the process can terminate gracefully
+        # even with unwaited tensors
+        store = c10d.FileStore(self.file_name, self.world_size)
+        c10d.init_process_group(
+            backend="xccl", rank=self.rank, world_size=self.world_size, store=store
+        )
+
+        # Case 1: Run collectives under context manager, and don't call wait on them.
+        with _functional_collectives.allow_inflight_collective_as_graph_input_ctx():
+            self.assertEqual(torch._C._distributed_c10d._get_work_registry_size(), 0)
+            input = torch.full(
+                (10240, 10240), float(self.rank), device=f"xpu:{self.rank}"
+            )
+            dist.all_reduce(input, op=dist.ReduceOp.SUM, async_op=True)
+            # Non-functional collectives run under the context manager is registered in the work registry.
+            self.assertEqual(torch._C._distributed_c10d._get_work_registry_size(), 1)
+            # Running another collective on the same tensor should still work
+            dist.all_reduce(input, op=dist.ReduceOp.SUM, async_op=True)
+            self.assertEqual(torch._C._distributed_c10d._get_work_registry_size(), 2)
+
+        # Case 2: Run collectives not under context manager, and don't call wait on them.
+        # NOTE: Here we intentionally test memory-stressed case.
+        self.assertEqual(torch._C._distributed_c10d._get_work_registry_size(), 2)
+        for _ in range(50000):
+            input = torch.full(
+                (1024, 1024), float(self.rank), device=f"xpu:{self.rank}"
+            )
+            dist.all_reduce(input, op=dist.ReduceOp.SUM, async_op=True)
+        # Work registry size is unchanged, since non-functional collectives not run under
+        # the context manager is not registered in the work registry.
+        self.assertEqual(torch._C._distributed_c10d._get_work_registry_size(), 2)
+
+    @requires_xccl()
+    @skip_if_lt_x_gpu(2)
+    def test_wait_tensor(self) -> None:
+        # Verify that c10d_functional.wait_tensor() can be invoked on
+        # output tensor of non-functional collective
+        store = c10d.FileStore(self.file_name, self.world_size)
+        c10d.init_process_group(
+            backend="xccl", rank=self.rank, world_size=self.world_size, store=store
+        )
+
+        # Case 1: under context manager (i.e. work is registered in registry)
+        with _functional_collectives.allow_inflight_collective_as_graph_input_ctx():
+            input1 = torch.full((10, 10), float(self.rank), device=f"xpu:{self.rank}")
+            self.assertEqual(torch._C._distributed_c10d._get_work_registry_size(), 0)
+            dist.all_reduce(input1, op=dist.ReduceOp.SUM, async_op=True)
+            self.assertEqual(torch._C._distributed_c10d._get_work_registry_size(), 1)
+            torch.ops.c10d_functional.wait_tensor(input1)
+            self.assertEqual(torch._C._distributed_c10d._get_work_registry_size(), 0)
+
+            input2 = torch.full((10, 10), float(self.rank), device=f"xpu:{self.rank}")
+            self.assertEqual(torch._C._distributed_c10d._get_work_registry_size(), 0)
+            work = dist.all_reduce(input2, op=dist.ReduceOp.SUM, async_op=True)
+            self.assertEqual(torch._C._distributed_c10d._get_work_registry_size(), 1)
+            work.wait()
+            self.assertEqual(torch._C._distributed_c10d._get_work_registry_size(), 0)
+            self.assertEqual(input1, input2)
+
+        # Case 2: not under context manager (i.e. work is not registered in registry)
+        input1 = torch.full((10, 10), float(self.rank), device=f"xpu:{self.rank}")
+        self.assertEqual(torch._C._distributed_c10d._get_work_registry_size(), 0)
+        dist.all_reduce(input1, op=dist.ReduceOp.SUM, async_op=True)
+        self.assertEqual(torch._C._distributed_c10d._get_work_registry_size(), 0)
+        # this does not take effect, since the underlying wait_tensor() logic would not
+        # be able to find the corresponding work object (because it's not registered in registry)
+        torch.ops.c10d_functional.wait_tensor(input1)
+        self.assertEqual(torch._C._distributed_c10d._get_work_registry_size(), 0)
+
+        input2 = torch.full((10, 10), float(self.rank), device=f"xpu:{self.rank}")
+        self.assertEqual(torch._C._distributed_c10d._get_work_registry_size(), 0)
+        work = dist.all_reduce(input2, op=dist.ReduceOp.SUM, async_op=True)
+        self.assertEqual(torch._C._distributed_c10d._get_work_registry_size(), 0)
+        work.wait()
+        self.assertEqual(torch._C._distributed_c10d._get_work_registry_size(), 0)
+        self.assertEqual(input1, input2)
+
 
 instantiate_parametrized_tests(ProcessGroupXCCLTest)