diff --git a/sycl/include/CL/sycl/detail/accessor_impl.hpp b/sycl/include/CL/sycl/detail/accessor_impl.hpp
index b561e123baef..14baf3338e23 100644
--- a/sycl/include/CL/sycl/detail/accessor_impl.hpp
+++ b/sycl/include/CL/sycl/detail/accessor_impl.hpp
@@ -160,6 +160,8 @@ class LocalAccessorImplHost {
   }
 };
 
+using LocalAccessorImplPtr = std::shared_ptr<LocalAccessorImplHost>;
+
 class LocalAccessorBaseHost {
 public:
   LocalAccessorBaseHost(sycl::range<3> Size, int Dims, int ElemSize) {
diff --git a/sycl/include/CL/sycl/handler.hpp b/sycl/include/CL/sycl/handler.hpp
index 6c054a6c3f38..ddd8dd8b88ad 100644
--- a/sycl/include/CL/sycl/handler.hpp
+++ b/sycl/include/CL/sycl/handler.hpp
@@ -143,6 +143,7 @@ class handler {
   // we exit the method they are passed in.
   std::vector<std::vector<char>> MArgsStorage;
   std::vector<detail::AccessorImplPtr> MAccStorage;
+  std::vector<detail::LocalAccessorImplPtr> MLocalAccStorage;
   std::vector<std::shared_ptr<detail::stream_impl>> MStreamStorage;
   std::vector<std::shared_ptr<const void>> MSharedPtrStorage;
   // The list of arguments for the kernel.
@@ -221,6 +222,10 @@ class handler {
           detail::AccessorBaseHost *AccBase =
               static_cast<detail::AccessorBaseHost *>(Ptr);
           Ptr = detail::getSyclObjImpl(*AccBase).get();
+        } else if (AccTarget == access::target::local) {
+          detail::LocalAccessorBaseHost *LocalAccBase =
+              static_cast<detail::LocalAccessorBaseHost *>(Ptr);
+          Ptr = detail::getSyclObjImpl(*LocalAccBase).get();
         }
       }
       processArg(Ptr, Kind, Size, I, IndexShift, IsKernelCreatedFromSource);
@@ -292,20 +297,17 @@ class handler {
         break;
       }
       case access::target::local: {
-        detail::LocalAccessorBaseHost *LAcc =
-            static_cast<detail::LocalAccessorBaseHost *>(Ptr);
+        detail::LocalAccessorImplHost *LAcc =
+            static_cast<detail::LocalAccessorImplHost *>(Ptr);
         // Stream implementation creates local accessor with size per work item
         // in work group. Number of work items is not available during stream
         // construction, that is why size of the accessor is updated here using
         // information about number of work items in the work group.
-        if (detail::getSyclObjImpl(*LAcc)->PerWI) {
-          auto LocalAccImpl = detail::getSyclObjImpl(*LAcc);
-          LocalAccImpl->resize(MNDRDesc.LocalSize.size(),
-                               MNDRDesc.GlobalSize.size());
-        }
-        range<3> &Size = LAcc->getSize();
-        const int Dims = LAcc->getNumOfDims();
-        int SizeInBytes = LAcc->getElementSize();
+        if (LAcc->PerWI)
+          LAcc->resize(MNDRDesc.LocalSize.size(), MNDRDesc.GlobalSize.size());
+        range<3> &Size = LAcc->MSize;
+        const int Dims = LAcc->MDims;
+        int SizeInBytes = LAcc->MElemSize;
         for (int I = 0; I < Dims; ++I)
           SizeInBytes *= Size[I];
         MArgs.emplace_back(kind_std_layout, nullptr, SizeInBytes,
@@ -480,7 +482,11 @@ class handler {
                              IsPlaceholder> &&Arg) {
     detail::LocalAccessorBaseHost *LocalAccBase =
         (detail::LocalAccessorBaseHost *)&Arg;
-    MArgs.emplace_back(detail::kernel_param_kind_t::kind_accessor, LocalAccBase,
+    detail::LocalAccessorImplPtr LocalAccImpl =
+        detail::getSyclObjImpl(*LocalAccBase);
+    detail::LocalAccessorImplHost *Req = LocalAccImpl.get();
+    MLocalAccStorage.push_back(std::move(LocalAccImpl));
+    MArgs.emplace_back(detail::kernel_param_kind_t::kind_accessor, Req,
                        static_cast<int>(access::target::local), ArgIndex);
   }
 
diff --git a/sycl/test/basic_tests/set_arg_interop.cpp b/sycl/test/basic_tests/set_arg_interop.cpp
index 5e97675be342..3e8362720e54 100644
--- a/sycl/test/basic_tests/set_arg_interop.cpp
+++ b/sycl/test/basic_tests/set_arg_interop.cpp
@@ -16,12 +16,14 @@ int main() {
 
     cl_context ClContext = Context.get();
 
-    const size_t CountSources = 2;
+    const size_t CountSources = 3;
     const char *Sources[CountSources] = {
         "kernel void foo1(global float* Array, global int* Value) { *Array = "
         "42; *Value = 1; }\n",
         "kernel void foo2(global float* Array) { int id = get_global_id(0); "
         "Array[id] = id; }\n",
+        "kernel void foo3(global float* Array, local float* LocalArray) { "
+        "(void)LocalArray; (void)Array; }\n",
     };
 
     cl_int Err;
@@ -38,11 +40,15 @@ int main() {
     cl_kernel SecondCLKernel = clCreateKernel(ClProgram, "foo2", &Err);
     assert(Err == CL_SUCCESS);
 
+    cl_kernel ThirdCLKernel = clCreateKernel(ClProgram, "foo3", &Err);
+    assert(Err == CL_SUCCESS);
+
     const size_t Count = 100;
     float Array[Count];
 
     kernel FirstKernel(FirstCLKernel, Context);
     kernel SecondKernel(SecondCLKernel, Context);
+    kernel ThirdKernel(ThirdCLKernel, Context);
     int Value;
     {
       buffer<float, 1> FirstBuffer(Array, range<1>(1));
@@ -92,9 +98,24 @@ int main() {
       }
     }
 
+    {
+      buffer<float, 1> FirstBuffer(Array, range<1>(Count));
+      Queue.submit([&](handler &CGH) {
+        auto Acc = FirstBuffer.get_access<access::mode::read_write>(CGH);
+        CGH.set_arg(0, FirstBuffer.get_access<access::mode::read_write>(CGH));
+        CGH.set_arg(
+            1, cl::sycl::accessor<float, 1, cl::sycl::access::mode::read_write,
+                                  cl::sycl::access::target::local>(
+                   cl::sycl::range<1>(Count), CGH));
+        CGH.parallel_for(range<1>{Count}, ThirdKernel);
+      });
+    }
+    Queue.wait_and_throw();
+
     clReleaseContext(ClContext);
     clReleaseKernel(FirstCLKernel);
     clReleaseKernel(SecondCLKernel);
+    clReleaseKernel(ThirdCLKernel);
     clReleaseProgram(ClProgram);
   }
   return 0;