diff --git a/unified-runtime/source/adapters/level_zero/device.cpp b/unified-runtime/source/adapters/level_zero/device.cpp
index e2c7a5e4d6aa3..c372443d07ec2 100644
--- a/unified-runtime/source/adapters/level_zero/device.cpp
+++ b/unified-runtime/source/adapters/level_zero/device.cpp
@@ -16,6 +16,7 @@
 #include <algorithm>
 #include <climits>
 #include <optional>
+#include <vector>
 
 // UR_L0_USE_COPY_ENGINE can be set to an integer value, or
 // a pair of integer values of the form "lower_index:upper_index".
@@ -1456,7 +1457,7 @@ ur_result_t urDevicePartition(
 
 ur_result_t urDeviceSelectBinary(
     /// [in] handle of the device to select binary for.
-    ur_device_handle_t /*Device*/,
+    [[maybe_unused]] ur_device_handle_t Device,
     /// [in] the array of binaries to select from.
     const ur_device_binary_t *Binaries,
     /// [in] the number of binaries passed in ppBinaries. Must greater than or
@@ -1486,21 +1487,34 @@ ur_result_t urDeviceSelectBinary(
 
   uint32_t *SelectedBinaryInd = SelectedBinary;
 
-  // Find the appropriate device image, fallback to spirv if not found
-  constexpr uint32_t InvalidInd = (std::numeric_limits<uint32_t>::max)();
-  uint32_t Spirv = InvalidInd;
+  // Find the appropriate device image
+  // The order of elements is important, as it defines the priority:
+  std::vector<const char *> FallbackTargets = {UR_DEVICE_BINARY_TARGET_SPIRV64};
+
+  constexpr uint32_t InvalidInd = std::numeric_limits<uint32_t>::max();
+  uint32_t FallbackInd = InvalidInd;
+  uint32_t FallbackPriority = InvalidInd;
 
   for (uint32_t i = 0; i < NumBinaries; ++i) {
     if (strcmp(Binaries[i].pDeviceTargetSpec, BinaryTarget) == 0) {
       *SelectedBinaryInd = i;
       return UR_RESULT_SUCCESS;
     }
-    if (strcmp(Binaries[i].pDeviceTargetSpec,
-               UR_DEVICE_BINARY_TARGET_SPIRV64) == 0)
-      Spirv = i;
+    for (uint32_t j = 0; j < FallbackTargets.size(); ++j) {
+      // We have a fall-back with the same or higher priority already
+      // no need to check the rest
+      if (FallbackPriority <= j)
+        break;
+
+      if (strcmp(Binaries[i].pDeviceTargetSpec, FallbackTargets[j]) == 0) {
+        FallbackInd = i;
+        FallbackPriority = j;
+        break;
+      }
+    }
   }
-  // Points to a spirv image, if such indeed was found
-  if ((*SelectedBinaryInd = Spirv) != InvalidInd)
+  // We didn't find a primary target, try the highest-priority fall-back
+  if ((*SelectedBinaryInd = FallbackInd) != InvalidInd)
     return UR_RESULT_SUCCESS;
 
   // No image can be loaded for the given device
diff --git a/unified-runtime/test/adapters/level_zero/CMakeLists.txt b/unified-runtime/test/adapters/level_zero/CMakeLists.txt
index a834300bbc528..7c6b7ca1b2fa8 100644
--- a/unified-runtime/test/adapters/level_zero/CMakeLists.txt
+++ b/unified-runtime/test/adapters/level_zero/CMakeLists.txt
@@ -98,6 +98,14 @@ function(add_adapter_tests adapter)
         )
     endif()
 
+    add_adapter_test(${adapter}_device_select_binary
+        FIXTURE DEVICES
+        SOURCES
+            urDeviceSelectBinary.cpp
+        ENVIRONMENT
+            "UR_ADAPTERS_FORCE_LOAD=\"$<TARGET_FILE:ur_adapter_${adapter}>\""
+        )
+
     add_adapter_test(${adapter}_mem_buffer_map
         FIXTURE DEVICES
         SOURCES
diff --git a/unified-runtime/test/adapters/level_zero/urDeviceSelectBinary.cpp b/unified-runtime/test/adapters/level_zero/urDeviceSelectBinary.cpp
new file mode 100644
index 0000000000000..5a4495f078343
--- /dev/null
+++ b/unified-runtime/test/adapters/level_zero/urDeviceSelectBinary.cpp
@@ -0,0 +1,71 @@
+// Copyright (C) 2025 Intel Corporation
+// Part of the Unified-Runtime Project, under the Apache License v2.0 with LLVM
+// Exceptions. See LICENSE.TXT
+//
+// SPDX-License-Identifier: Apache-2.0 WITH LLVM-exception
+#include "ur_api.h"
+#include <uur/fixtures.h>
+
+#include <array>
+#include <vector>
+
+using urLevelZeroDeviceSelectBinaryTest = uur::urDeviceTest;
+UUR_INSTANTIATE_DEVICE_TEST_SUITE(urLevelZeroDeviceSelectBinaryTest);
+
+static ur_device_binary_t binary_for_tgt(const char *Target) {
+  return {UR_STRUCTURE_TYPE_DEVICE_BINARY, nullptr, Target};
+}
+
+TEST_P(urLevelZeroDeviceSelectBinaryTest, TargetPreference) {
+  std::vector<ur_device_binary_t> binaries = {
+      binary_for_tgt(UR_DEVICE_BINARY_TARGET_UNKNOWN),
+      binary_for_tgt(UR_DEVICE_BINARY_TARGET_SPIRV64),
+      binary_for_tgt(UR_DEVICE_BINARY_TARGET_SPIRV64_GEN)};
+
+  // Gen binary should be preferred over SPIR-V
+  {
+    uint32_t selected_binary = binaries.size(); // invalid index
+    ASSERT_SUCCESS(urDeviceSelectBinary(device, binaries.data(),
+                                        binaries.size(), &selected_binary));
+    ASSERT_EQ(selected_binary, binaries.size() - 1);
+  }
+
+  // Remove the Gen binary,
+  // SPIR-V should be selected
+  binaries.pop_back();
+  {
+    uint32_t selected_binary = binaries.size(); // invalid index
+    ASSERT_SUCCESS(urDeviceSelectBinary(device, binaries.data(),
+                                        binaries.size(), &selected_binary));
+    ASSERT_EQ(selected_binary, binaries.size() - 1);
+  }
+
+  // No supported binaries left, should return an error
+  binaries.pop_back();
+  {
+    uint32_t selected_binary = binaries.size(); // invalid index
+    ASSERT_EQ_RESULT(UR_RESULT_ERROR_INVALID_BINARY,
+                     urDeviceSelectBinary(device, binaries.data(),
+                                          binaries.size(), &selected_binary));
+  }
+}
+
+TEST_P(urLevelZeroDeviceSelectBinaryTest, FirstOfSupported) {
+  std::vector<const char *> SupportedTargets = {
+      UR_DEVICE_BINARY_TARGET_SPIRV64,
+      UR_DEVICE_BINARY_TARGET_SPIRV64_GEN,
+  };
+  for (const char *Target : SupportedTargets) {
+    std::array binaries = {
+        binary_for_tgt(UR_DEVICE_BINARY_TARGET_UNKNOWN),
+        binary_for_tgt(Target),
+        binary_for_tgt(UR_DEVICE_BINARY_TARGET_AMDGCN),
+        binary_for_tgt(Target),
+    };
+
+    uint32_t selected_binary = binaries.size(); // invalid index
+    ASSERT_SUCCESS(urDeviceSelectBinary(device, binaries.data(),
+                                        binaries.size(), &selected_binary));
+    ASSERT_EQ(selected_binary, 1u);
+  }
+}