diff --git a/.bazelrc b/.bazelrc
index b5e1def120cc..fdcc9b4cec74 100644
--- a/.bazelrc
+++ b/.bazelrc
@@ -116,6 +116,7 @@ test --test_env=PJRT_LOCAL_PROCESS_RANK
 
 # This environmental variable is important for properly integrating with XLA.
 test --test_env=XLA_EXPERIMENTAL
+test --test_env=XLA_STABLEHLO_COMPILE
 
 # To find `libpython` that is required to run tests (they run using installed wheels).
 test --test_env=LD_LIBRARY_PATH
diff --git a/.github/scripts/run_tests.sh b/.github/scripts/run_tests.sh
index 6d35cfb2dabe..a3704e618496 100755
--- a/.github/scripts/run_tests.sh
+++ b/.github/scripts/run_tests.sh
@@ -87,6 +87,8 @@ PYTORCH_DIR=$1
 XLA_DIR=$2
 USE_COVERAGE="${3:-0}"
 
+export XLA_STABLEHLO_COMPILE=1
+
 if [ -x "$(command -v nvidia-smi)" ]; then
   num_devices=$(nvidia-smi --list-gpus | wc -l)
   echo "Found $num_devices GPU devices..."
diff --git a/configuration.yaml b/configuration.yaml
index c2f8c8290bd4..02f433d72e44 100644
--- a/configuration.yaml
+++ b/configuration.yaml
@@ -387,7 +387,7 @@ variables:
           flag is experimental. The default_value will be set to true when
           StableHLO workflow is mature.
       type: bool
-      default_value: false
+      default_value: true
     XLA_DUMP_POST_OPTIMIZATIONS:
       description:
         - Dump the HLO graph after optimizations. You need to use it together
diff --git a/test/cpp/run_tests.sh b/test/cpp/run_tests.sh
index d6b492dc6945..dffc8b709fc8 100755
--- a/test/cpp/run_tests.sh
+++ b/test/cpp/run_tests.sh
@@ -49,6 +49,7 @@ shift $(($OPTIND - 1))
 
 # Set XLA_EXPERIMENTAL var to subsequently executed commands.
 export XLA_EXPERIMENTAL
+export XLA_STABLEHLO_COMPILE=1
 
 EXTRA_FLAGS=""
 
diff --git a/test/neuron/run_tests.sh b/test/neuron/run_tests.sh
index c5f277fe06a5..6ccf4422a01d 100755
--- a/test/neuron/run_tests.sh
+++ b/test/neuron/run_tests.sh
@@ -44,6 +44,7 @@ export TORCH_TEST_DEVICES="$CDIR/pytorch_test_base.py"
 export PYTORCH_TEST_WITH_SLOW=1
 export XLA_DUMP_FATAL_STACK=1
 export CPU_NUM_DEVICES=4
+export XLA_STABLEHLO_COMPILE=1
 
 TORCH_XLA_DIR=$(cd ~; dirname "$(python -c 'import torch_xla; print(torch_xla.__file__)')")
 COVERAGE_FILE="$CDIR/../.coverage"
diff --git a/test/run_tests.sh b/test/run_tests.sh
index 142ca53f2ae2..f83896f54301 100755
--- a/test/run_tests.sh
+++ b/test/run_tests.sh
@@ -44,6 +44,7 @@ export TORCH_TEST_DEVICES="$CDIR/pytorch_test_base.py"
 export PYTORCH_TEST_WITH_SLOW=1
 export XLA_DUMP_FATAL_STACK=1
 export CPU_NUM_DEVICES=4
+unset XLA_STABLEHLO_COMPILE
 
 TORCH_XLA_DIR=$(cd ~; dirname "$(python -c 'import torch_xla; print(torch_xla.__file__)')")
 COVERAGE_FILE="$CDIR/../.coverage"