diff --git a/test/conformance/exp_command_buffer/update/local_memory_update.cpp b/test/conformance/exp_command_buffer/update/local_memory_update.cpp
index d55094a52c..3c680b9a83 100644
--- a/test/conformance/exp_command_buffer/update/local_memory_update.cpp
+++ b/test/conformance/exp_command_buffer/update/local_memory_update.cpp
@@ -17,11 +17,6 @@ struct LocalMemoryUpdateTestBase
     UUR_RETURN_ON_FATAL_FAILURE(
         urUpdatableCommandBufferExpExecutionTest::SetUp());
 
-    if (backend == UR_PLATFORM_BACKEND_LEVEL_ZERO) {
-      GTEST_SKIP()
-          << "Local memory argument update not supported on Level Zero.";
-    }
-
     // HIP has extra args for local memory so we define an offset for arg
     // indices here for updating
     hip_arg_offset = backend == UR_PLATFORM_BACKEND_HIP ? 3 : 0;
@@ -391,6 +386,8 @@ TEST_P(LocalMemoryUpdateTest, UpdateParametersEmptyLocalSize) {
 // Test updating A,X,Y parameters to new values and local memory parameters
 // to new smaller values.
 TEST_P(LocalMemoryUpdateTest, UpdateParametersSmallerLocalSize) {
+  UUR_KNOWN_FAILURE_ON(uur::LevelZero{});
+
   // Run command-buffer prior to update an verify output
   ASSERT_SUCCESS(urCommandBufferEnqueueExp(updatable_cmd_buf_handle, queue, 0,
                                            nullptr, nullptr));
@@ -1310,4 +1307,4 @@ TEST_P(LocalMemoryUpdateTestOutOfOrder, UpdateAllParameters) {
   uint32_t *new_X = (uint32_t *)shared_ptrs[3];
   uint32_t *new_Y = (uint32_t *)shared_ptrs[4];
   Validate(new_output, new_X, new_Y, new_A, global_size, local_size);
-}
\ No newline at end of file
+}