diff --git a/docs/source/notes/ddp.rst b/docs/source/notes/ddp.rst
index 48cadb2218c0b..43256a2a68677 100644
--- a/docs/source/notes/ddp.rst
+++ b/docs/source/notes/ddp.rst
@@ -70,9 +70,6 @@ DDP works with TorchDynamo.  When used with TorchDynamo, apply the DDP model wra
 before compiling the model, such that torchdynamo can apply ``DDPOptimizer``
 (graph-break optimizations) based on DDP bucket sizes.  (See `TorchDynamo DDPOptimizer <./ddp.html#torchdynamo-ddpoptimizer>`_ for more information.)
 
-TorchDynamo support for DDP currently requires setting `static_graph=False`, due to
-interactions between the graph tracing process and DDP's mechanism for observing operations happening on its module,
-but this should be fixed ultimately.
 
 .. code::
 
diff --git a/test/distributed/test_dynamo_distributed.py b/test/distributed/test_dynamo_distributed.py
index 82d4248fb6cb1..c9646638bcfb6 100644
--- a/test/distributed/test_dynamo_distributed.py
+++ b/test/distributed/test_dynamo_distributed.py
@@ -290,26 +290,45 @@ def test_ddp_baseline_aot_eager_multiprocess(self):
             outputs = m(inputs)
             self.assertTrue(same(correct_outputs, outputs))
 
+    def _test_hf_bert_ddp_inductor(self, static_graph):
+        with _dynamo_dist_per_rank_init(self.rank, self.world_size):
+            model, inputs = get_hf_bert(self.rank)
+            model = DDP(model, static_graph=static_graph)
+            run_hf_bert_ddp(self, model, inputs, "inductor")
+
     @skip_if_lt_x_gpu(2)
     @import_transformers_or_skip()
     @unittest.skipIf(not has_triton(), "Inductor+gpu needs triton and recent GPU arch")
     @patch.object(config, "optimize_ddp", True)
     @patch.object(torch._inductor.config, "fallback_random", True)
     def test_hf_bert_ddp_inductor(self):
+        self._test_hf_bert_ddp_inductor(static_graph=False)
 
+    @skip_if_lt_x_gpu(2)
+    @import_transformers_or_skip()
+    @unittest.skipIf(not has_triton(), "Inductor+gpu needs triton and recent GPU arch")
+    @patch.object(config, "optimize_ddp", True)
+    @patch.object(torch._inductor.config, "fallback_random", True)
+    def test_hf_bert_ddp_inductor_static_graph(self):
+        self._test_hf_bert_ddp_inductor(static_graph=True)
+
+    def _test_hf_bert_aot_eager(self, static_graph):
         with _dynamo_dist_per_rank_init(self.rank, self.world_size):
             model, inputs = get_hf_bert(self.rank)
-            model = DDP(model)
-            run_hf_bert_ddp(self, model, inputs, "inductor")
+            model = DDP(model, static_graph=static_graph)
+            run_hf_bert_ddp(self, model, inputs, "aot_eager")
 
     @skip_if_lt_x_gpu(2)
     @import_transformers_or_skip()
     @patch.object(config, "optimize_ddp", True)
     def test_hf_bert_ddp_aot_eager(self):
-        with _dynamo_dist_per_rank_init(self.rank, self.world_size):
-            model, inputs = get_hf_bert(self.rank)
-            model = DDP(model)
-            run_hf_bert_ddp(self, model, inputs, "aot_eager")
+        self._test_hf_bert_aot_eager(static_graph=False)
+
+    @skip_if_lt_x_gpu(2)
+    @import_transformers_or_skip()
+    @patch.object(config, "optimize_ddp", True)
+    def test_hf_bert_ddp_aot_eager_static_graph(self):
+        self._test_hf_bert_aot_eager(static_graph=True)
 
     @skip_if_lt_x_gpu(2)
     @unittest.skipIf(not has_triton(), "Inductor+gpu needs triton and recent GPU arch")
diff --git a/torch/testing/_internal/distributed/distributed_test.py b/torch/testing/_internal/distributed/distributed_test.py
index a6e09e7c2e20a..3196d3cc7ea1f 100644
--- a/torch/testing/_internal/distributed/distributed_test.py
+++ b/torch/testing/_internal/distributed/distributed_test.py
@@ -10072,5 +10072,37 @@ def test_ddp_device_mesh_initialization(self):
                     model, device_mesh=device_mesh
                 )
 
+        @skip_if_lt_x_gpu(2)
+        @require_world_size(2)
+        @skip_but_pass_in_sandcastle_if(
+            BACKEND not in DistTestCases.backend_feature["ddp"],
+            f"The {BACKEND} backend does not support DistributedDataParallel",
+        )
+        def test_ddp_compile_static_graph(self):
+            "Tests that DDP works with torch compile when static_graph=True"
+            model = torch.nn.Linear(10, 10).cuda(self.rank)
+            model_clone = copy.deepcopy(model)
+            ddp = torch.nn.parallel.DistributedDataParallel(
+                model,
+                device_ids=[self.rank],
+            )
+            ddp_static = torch.nn.parallel.DistributedDataParallel(
+                model_clone,
+                device_ids=[self.rank],
+                static_graph=True
+            )
+            ddp = torch.compile(ddp)
+            ddp_static = torch.compile(ddp_static)
+            input = torch.rand(10, 10).cuda(self.rank)
+            # verify output and gradient parity
+            for _ in range(6):
+                out_ddp = ddp(input).sum()
+                out_ddp_static = ddp_static(input).sum()
+                self.assertEqual(out_ddp, out_ddp_static)
+                out_ddp.backward()
+                out_ddp_static.backward()
+                for p1, p2 in zip(ddp.parameters(), ddp_static.parameters()):
+                    self.assertEqual(p1.grad, p2.grad)
+
 
 instantiate_parametrized_tests(DistributedTest._DistTestBase)