diff --git a/test/neuron/run_tests.sh b/test/neuron/run_tests.sh
index c1bb656b8b37..1f5025239b32 100755
--- a/test/neuron/run_tests.sh
+++ b/test/neuron/run_tests.sh
@@ -172,7 +172,8 @@ function run_xla_op_tests1 {
 function run_xla_op_tests2 {
   run_test "$CDIR/pjrt/test_dtypes.py"
   #run_test "$CDIR/test_while_loop.py"
-  run_test "$CDIR/test_scan.py"
+  run_test "$CDIR/scan/test_scan.py"
+  run_xla_hlo_debug "$CDIR/scan/test_scan_debug.py"
   run_test "$CDIR/test_autocast.py"
   run_test "$CDIR/test_grad_checkpoint.py"
   run_test "$CDIR/test_grad_checkpoint.py" "$@" --test_autocast
@@ -319,4 +320,4 @@ if [ "$LOGFILE" != "" ]; then
   run_tests 2>&1 | tee $LOGFILE
 else
   run_tests
-fi
\ No newline at end of file
+fi
diff --git a/test/run_tests.sh b/test/run_tests.sh
index bf72d9d075b6..ba87a3ce3653 100755
--- a/test/run_tests.sh
+++ b/test/run_tests.sh
@@ -192,6 +192,7 @@ function run_xla_op_tests2 {
   run_test "$CDIR/scan/test_scan.py"
   run_test "$CDIR/scan/test_scan_spmd.py"
   run_test "$CDIR/scan/test_scan_layers.py"
+  run_xla_hlo_debug run_test "$CDIR/scan/test_scan_debug.py"
   run_test "$CDIR/test_autocast.py"
   run_test "$CDIR/eager/test_eager.py"
   run_test "$CDIR/eager/test_eager_with_xla_compile.py"
diff --git a/test/scan/test_scan_debug.py b/test/scan/test_scan_debug.py
new file mode 100644
index 000000000000..d800a36998df
--- /dev/null
+++ b/test/scan/test_scan_debug.py
@@ -0,0 +1,69 @@
+import sys
+import os
+import unittest
+
+import torch
+import torch_xla
+import torch_xla.debug.metrics as met
+from torch_xla.experimental.scan import scan
+
+parent_folder = os.path.dirname(os.path.dirname(__file__))
+sys.path.append(parent_folder)
+from test_utils import XlaTestCase  # type:ignore
+
+
+class ScanDebugTest(XlaTestCase):
+
+  def test_scan_no_recompile_with_debug_annotations(self):
+    """
+    When someone adds debugging annotations to the HLO via env vars, the
+    HLO graph of the combine function captured by scan would have additional metadata
+    such as line numbers and scopes. Still, that should not cause the final IR
+    graph hash to change. This is subtle because the IR of the `scan` operation will
+    reference the HLO computation within.
+    """
+    assert os.environ["XLA_HLO_DEBUG"] == "1"
+    met.clear_all()
+
+    def fn(carry, x):
+      carry = carry + x
+      y = x + 42
+      return carry, y
+
+    # fn2 should trace to the same graph despite having different line numbers
+    def fn2(carry, x):
+      carry = carry + x
+      y = x + 42
+      return carry, y
+
+    init = torch.tensor([0.0, 0.0],
+                        requires_grad=True,
+                        device=torch_xla.device())
+    xs = torch.tensor([[1.0, 2.0], [3.0, 4.0], [5.0, 6.0]],
+                      requires_grad=True,
+                      device=torch_xla.device())
+
+    # Run some graph involving a scan operation two times.
+    for i in range(2):
+      init.grad = None
+      xs.grad = None
+      carry, ys = scan(fn, init, xs)
+      (carry.sum() + ys.sum()).backward()
+      torch_xla.sync()
+
+    # Use a differently named but semantically the same combine function.
+    # This should still trace to identical HLO and hence reuse the cache.
+    init.grad = None
+    xs.grad = None
+    carry, ys = scan(fn2, init, xs)
+    (carry.sum() + ys.sum()).backward()
+    torch_xla.sync()
+
+    # Should only compile once and cache the last two times.
+    self.assertEqual(int(met.counter_value("UncachedCompile")), 1)
+    self.assertEqual(int(met.counter_value("CachedCompile")), 2)
+
+
+if __name__ == '__main__':
+  test = unittest.main()
+  sys.exit(0 if test.result.wasSuccessful() else 1)
diff --git a/test/tpu/run_tests.sh b/test/tpu/run_tests.sh
index d33d50cd9580..76959214300a 100755
--- a/test/tpu/run_tests.sh
+++ b/test/tpu/run_tests.sh
@@ -33,6 +33,7 @@ python3 "$TEST_CDIR/test_while_loop.py"
 python3 "$TEST_CDIR/scan/test_scan.py"
 python3 "$TEST_CDIR/scan/test_scan_spmd.py"
 python3 "$TEST_CDIR/scan/test_scan_layers.py"
+run_xla_hlo_debug python3 "$TEST_CDIR/scan/test_scan_debug.py"
 python3 "$TEST_CDIR/test_pallas.py" -v
 python3 "$TEST_CDIR/test_pallas_spmd.py"
 python3 "$TEST_CDIR/test_tpu_paged_attention_kernel.py"