diff --git a/com.unity.render-pipelines.high-definition/CHANGELOG.md b/com.unity.render-pipelines.high-definition/CHANGELOG.md
index 4f37a99dd0d..1bd570e18c3 100644
--- a/com.unity.render-pipelines.high-definition/CHANGELOG.md
+++ b/com.unity.render-pipelines.high-definition/CHANGELOG.md
@@ -39,6 +39,7 @@ and this project adheres to [Semantic Versioning](http://semver.org/spec/v2.0.0.
 - Fixed white screen when undoing in the editor.
 - Fixed display of LOD Bias and maximum level in frame settings when using Quality Levels
 - Fixed an issue when trying to open a look dev env library when Look Dev is not supported.
+- Fixed shader graph not supporting indirectdxr multibounce (case 1294694).
 
 ### Changed
 - Removed the material pass probe volumes evaluation mode.
diff --git a/com.unity.render-pipelines.high-definition/Editor/Material/ShaderGraph/HDShaderPasses.cs b/com.unity.render-pipelines.high-definition/Editor/Material/ShaderGraph/HDShaderPasses.cs
index 918925d1ae3..a2ab4acf30f 100644
--- a/com.unity.render-pipelines.high-definition/Editor/Material/ShaderGraph/HDShaderPasses.cs
+++ b/com.unity.render-pipelines.high-definition/Editor/Material/ShaderGraph/HDShaderPasses.cs
@@ -878,6 +878,11 @@ public static PassDescriptor GenerateLitRaytracingPrepass()
 
         #region Raytracing Indirect
 
+        public static KeywordCollection IndirectDiffuseKeywordCollection = new KeywordCollection
+        {
+            { CoreKeywordDescriptors.multiBounceIndirect },
+        };
+
         public static PassDescriptor GenerateRaytracingIndirect(bool supportLighting)
         {
             return new PassDescriptor
@@ -891,6 +896,7 @@ public static PassDescriptor GenerateRaytracingIndirect(bool supportLighting)
                 // Collections
                 pragmas = CorePragmas.RaytracingBasic,
                 defines = supportLighting ? RaytracingIndirectDefines : null,
+                keywords = supportLighting ? IndirectDiffuseKeywordCollection : null,
                 includes = GenerateIncludes(),
             };
 
diff --git a/com.unity.render-pipelines.high-definition/Editor/Material/ShaderGraph/HDTarget.cs b/com.unity.render-pipelines.high-definition/Editor/Material/ShaderGraph/HDTarget.cs
index 8f382d1759d..aacd9b2a39f 100644
--- a/com.unity.render-pipelines.high-definition/Editor/Material/ShaderGraph/HDTarget.cs
+++ b/com.unity.render-pipelines.high-definition/Editor/Material/ShaderGraph/HDTarget.cs
@@ -1324,6 +1324,15 @@ static class CoreKeywordDescriptors
             definition = KeywordDefinition.ShaderFeature,
             scope = KeywordScope.Local,
         };
+
+        public static KeywordDescriptor multiBounceIndirect = new KeywordDescriptor
+        {
+            displayName = "Multi Bounce Indirect",
+            referenceName = "MULTI_BOUNCE_INDIRECT",
+            type = KeywordType.Boolean,
+            definition = KeywordDefinition.MultiCompile,
+            scope = KeywordScope.Global,
+        };
     }
     #endregion
 }