diff --git a/tests/pytorch/distributed/run_numerics.py b/tests/pytorch/distributed/run_numerics.py
index a22fb7e16..9482dcccf 100644
--- a/tests/pytorch/distributed/run_numerics.py
+++ b/tests/pytorch/distributed/run_numerics.py
@@ -215,6 +215,9 @@ def _get_tolerances(dtype):
     if QUANTIZATION == "fp8_cs":
         return {"rtol": 0.4, "atol": 0.25}
     elif QUANTIZATION == "nvfp4":
+        if IS_HIP_EXTENSION:
+            # Higher tolerance for AMDGPU to account for intermediate bf16 step in GEMM
+            return {"rtol": 0.125, "atol": 0.15}
         # TODO(zhongboz): investigate why the tolerance is so large
         return {"rtol": 0.125, "atol": 0.12}
     elif QUANTIZATION is not None:
diff --git a/transformer_engine/pytorch/cpp_extensions/gemm.py b/transformer_engine/pytorch/cpp_extensions/gemm.py
index b22b50c70..e8f0f299e 100644
--- a/transformer_engine/pytorch/cpp_extensions/gemm.py
+++ b/transformer_engine/pytorch/cpp_extensions/gemm.py
@@ -103,6 +103,46 @@ def get_tensor_device(tensor: torch.Tensor) -> int:
         return tensor._transpose.device.index
     return torch.cuda.current_device()
 
+
+if IS_HIP_EXTENSION:
+    def _should_use_bf16_output_for_nvfp4_tn(
+        A,
+        B,
+        layout: str,
+        out_dtype: Optional[torch.dtype],
+        out,
+        bias,
+        quantization_params,
+        debug_quantizer,
+        grad: bool,
+        accumulate: bool,
+        ub,
+        extra_output,
+        gelu: bool,
+    ) -> bool:
+        """Work around ROCm NVFP4 TN GEMM corruption when requesting FP32 output.
+
+        FIXME: hipBLASLt BF16xBF16->FP32 GEMM algos with ALPHA_DEVICE_VECTOR
+        produce incorrect results intermittently on AMDGPU. Return True for the
+        narrow path where we force BF16 output, which empirically covers the
+        corruption cases.
+        """
+        return (
+            layout == "TN"
+            and out_dtype == torch.float32
+            and out is None
+            and bias is not None
+            and quantization_params is None
+            and debug_quantizer is None
+            and not grad
+            and not accumulate
+            and ub is None
+            and extra_output is None
+            and not gelu
+            and (isinstance(A, NVFP4TensorStorage) or isinstance(B, NVFP4TensorStorage))
+        )
+
+
 def _select_kernel_fp4(layout: str, grad: bool, M: int, N: int, K: int):
     """Select kernel via tuned CSV lookup, falling back to AITER heuristic."""
     from aiter.ops.gemm_op_a4w4 import get_GEMM_config
@@ -371,6 +411,24 @@ def general_gemm(
         # FP8 block-scaling requires split accumulator
         use_split_accumulator = True
 
+    if IS_HIP_EXTENSION:
+        use_bf16_tn_output_workaround = _should_use_bf16_output_for_nvfp4_tn(
+            A,
+            B,
+            layout,
+            out_dtype,
+            out,
+            bias,
+            quantization_params,
+            debug_quantizer,
+            grad,
+            accumulate,
+            ub,
+            extra_output,
+            gelu,
+        )
+        out_dtype = torch.bfloat16 if use_bf16_tn_output_workaround else out_dtype
+
     args = (
         A,
         transa,  # transa
@@ -400,6 +458,9 @@ def general_gemm(
 
     out, bias_grad, gelu_input, extra_output = tex.generic_gemm(*args, **kwargs)
 
+    if IS_HIP_EXTENSION and use_bf16_tn_output_workaround:
+        out = cast_if_needed(out, torch.float32)
+
     if debug_quantizer is not None:
         out = debug_quantizer.process_gemm_output(out)