diff --git a/mlir/test/Dialect/Bufferization/Transforms/one-shot-non-module-bufferize.mlir b/mlir/test/Dialect/Bufferization/Transforms/one-shot-non-module-bufferize.mlir
index e2ab876f8b46a..b52612d0d1f10 100644
--- a/mlir/test/Dialect/Bufferization/Transforms/one-shot-non-module-bufferize.mlir
+++ b/mlir/test/Dialect/Bufferization/Transforms/one-shot-non-module-bufferize.mlir
@@ -24,10 +24,46 @@
     // CHECK-NOT: copy
     // CHECK: %[[call:.*]]:2 = call @inner_func(%[[arg0]])
     %0, %1 = call @inner_func(%t0) : (tensor<?xf32>) -> (tensor<?xf32>, f32)
-    // CHECK: return %[[call]]#1, %[[call]]#0 : f32, memref<?xf32,{{.*}}>
+    // CHECK: return %[[call]]#1, %[[call]]#0 : f32, memref<?xf32{{.*}}>
     return %1, %0 : f32, tensor<?xf32>
   }
   "test.finish" () : () -> ()
 }) : () -> ()
 
+// -----
 
+#enc1 = #test.tensor_encoding<"hello">
+#enc2 = #test.tensor_encoding<"not hello">
+
+"test.symbol_scope_isolated"() ({
+  // CHECK: func @inner_func(
+  // CHECK-SAME:  %[[arg0:.*]]: memref<?xf32, #test.memref_layout<"hello">>)
+  // CHECK-SAME:  -> memref<?xf32, #test.memref_layout<"hello">>
+  func.func @inner_func(%t: tensor<?xf32, #enc1>)
+      -> tensor<?xf32, #enc1> {
+    // CHECK: return %[[arg0]]
+    return %t : tensor<?xf32, #enc1>
+  }
+
+  // CHECK: func @outer_func(
+  // CHECK-SAME:  %[[arg0:.*]]: memref<?xf32, #test.memref_layout<"hello">>)
+  // CHECK-SAME:  -> (memref<?xf32, #test.memref_layout<"hello">>,
+  // CHECK-SAME:      memref<?xf32, #test.memref_layout<"not hello">>)
+  func.func @outer_func(%t0: tensor<?xf32, #enc1>)
+      -> (tensor<?xf32, #enc1>, tensor<?xf32, #enc2>) {
+    // CHECK: %[[call:.*]] = call @inner_func(%[[arg0]])
+    %0 = call @inner_func(%t0)
+      : (tensor<?xf32, #enc1>) -> (tensor<?xf32, #enc1>)
+
+    // CHECK: %[[local:.*]] = "test.create_memref_op"() : ()
+    // CHECK-SAME:  -> memref<?xf32, #test.memref_layout<"not hello">>
+    %local = "test.create_tensor_op"() : () -> tensor<?xf32, #enc2>
+    // CHECK: %[[dummy:.*]] = "test.dummy_memref_op"(%[[local]])
+    %1 = "test.dummy_tensor_op"(%local) : (tensor<?xf32, #enc2>)
+      -> tensor<?xf32, #enc2>
+
+    // CHECK: return %[[call]], %[[dummy]]
+    return %0, %1 : tensor<?xf32, #enc1>, tensor<?xf32, #enc2>
+  }
+  "test.finish" () : () -> ()
+}) : () -> ()
diff --git a/mlir/test/lib/Dialect/Bufferization/TestOneShotModuleBufferize.cpp b/mlir/test/lib/Dialect/Bufferization/TestOneShotModuleBufferize.cpp
index 1e2d4a7c8f08d..4069a74dbf63c 100644
--- a/mlir/test/lib/Dialect/Bufferization/TestOneShotModuleBufferize.cpp
+++ b/mlir/test/lib/Dialect/Bufferization/TestOneShotModuleBufferize.cpp
@@ -11,11 +11,25 @@
 #include "mlir/Dialect/Bufferization/Transforms/Bufferize.h"
 #include "mlir/Dialect/Bufferization/Transforms/OneShotModuleBufferize.h"
 #include "mlir/Dialect/Bufferization/Transforms/Transforms.h"
+#include "mlir/Dialect/Func/IR/FuncOps.h"
 #include "mlir/Pass/Pass.h"
 
+#include "TestAttributes.h" // TestTensorEncodingAttr, TestMemRefLayoutAttr
+#include "TestDialect.h"
+
 using namespace mlir;
 
 namespace {
+MemRefLayoutAttrInterface
+getMemRefLayoutForTensorEncoding(RankedTensorType tensorType) {
+  if (auto encoding = dyn_cast_if_present<test::TestTensorEncodingAttr>(
+          tensorType.getEncoding())) {
+    return cast<MemRefLayoutAttrInterface>(test::TestMemRefLayoutAttr::get(
+        tensorType.getContext(), encoding.getDummy()));
+  }
+  return {};
+}
+
 struct TestOneShotModuleBufferizePass
     : public PassWrapper<TestOneShotModuleBufferizePass, OperationPass<>> {
   MLIR_DEFINE_EXPLICIT_INTERNAL_INLINE_TYPE_ID(TestOneShotModuleBufferizePass)
@@ -25,6 +39,7 @@ struct TestOneShotModuleBufferizePass
       : PassWrapper(pass) {}
 
   void getDependentDialects(DialectRegistry &registry) const override {
+    registry.insert<test::TestDialect>();
     registry.insert<bufferization::BufferizationDialect>();
   }
   StringRef getArgument() const final {
@@ -41,6 +56,17 @@ struct TestOneShotModuleBufferizePass
     bufferization::OneShotBufferizationOptions opt;
 
     opt.bufferizeFunctionBoundaries = true;
+    opt.functionArgTypeConverterFn =
+        [&](bufferization::TensorLikeType tensor, Attribute memSpace,
+            func::FuncOp, const bufferization::BufferizationOptions &) {
+          assert(isa<RankedTensorType>(tensor) && "tests only builtin tensors");
+          auto tensorType = cast<RankedTensorType>(tensor);
+          auto layout = getMemRefLayoutForTensorEncoding(tensorType);
+          return cast<bufferization::BufferLikeType>(
+              MemRefType::get(tensorType.getShape(),
+                              tensorType.getElementType(), layout, memSpace));
+        };
+
     bufferization::BufferizationState bufferizationState;
 
     if (failed(bufferization::runOneShotModuleBufferize(getOperation(), opt,
diff --git a/mlir/test/lib/Dialect/Test/TestAttrDefs.td b/mlir/test/lib/Dialect/Test/TestAttrDefs.td
index 5685004bbbd25..9e7e4f883b576 100644
--- a/mlir/test/lib/Dialect/Test/TestAttrDefs.td
+++ b/mlir/test/lib/Dialect/Test/TestAttrDefs.td
@@ -22,6 +22,7 @@ include "mlir/IR/AttrTypeBase.td"
 include "mlir/IR/BuiltinAttributeInterfaces.td"
 include "mlir/IR/EnumAttr.td"
 include "mlir/IR/OpAsmInterface.td"
+include "mlir/IR/TensorEncoding.td"
 
 // All of the attributes will extend this class.
 class Test_Attr<string name, list<Trait> traits = []>
@@ -439,4 +440,20 @@ def TestCustomStorageCtorAttr : Test_Attr<"TestCustomStorageCtorAttr"> {
     let hasStorageCustomConstructor = 1;
 }
 
+def TestTensorEncodingAttr : Test_Attr<"TestTensorEncoding",
+    [DeclareAttrInterfaceMethods<VerifiableTensorEncoding>]> {
+  let mnemonic = "tensor_encoding";
+
+  let parameters = (ins "mlir::StringAttr":$dummy);
+  let assemblyFormat = "`<` $dummy `>`";
+}
+
+def TestMemRefLayoutAttr : Test_Attr<"TestMemRefLayout",
+    [DeclareAttrInterfaceMethods<MemRefLayoutAttrInterface>]> {
+  let mnemonic = "memref_layout";
+
+  let parameters = (ins "mlir::StringAttr":$dummy);
+  let assemblyFormat = "`<` $dummy `>`";
+}
+
 #endif // TEST_ATTRDEFS
diff --git a/mlir/test/lib/Dialect/Test/TestAttributes.cpp b/mlir/test/lib/Dialect/Test/TestAttributes.cpp
index fe1e9166a3099..9db7b01dd193b 100644
--- a/mlir/test/lib/Dialect/Test/TestAttributes.cpp
+++ b/mlir/test/lib/Dialect/Test/TestAttributes.cpp
@@ -541,6 +541,24 @@ test::detail::TestCustomStorageCtorAttrAttrStorage::construct(
   return nullptr;
 }
 
+//===----------------------------------------------------------------------===//
+// TestTensorEncodingAttr
+//===----------------------------------------------------------------------===//
+
+::llvm::LogicalResult TestTensorEncodingAttr::verifyEncoding(
+    mlir::ArrayRef<int64_t> shape, mlir::Type elementType,
+    llvm::function_ref<::mlir::InFlightDiagnostic()> emitError) const {
+  return mlir::success();
+}
+
+//===----------------------------------------------------------------------===//
+// TestMemRefLayoutAttr
+//===----------------------------------------------------------------------===//
+
+mlir::AffineMap TestMemRefLayoutAttr::getAffineMap() const {
+  return mlir::AffineMap::getMultiDimIdentityMap(1, getContext());
+}
+
 //===----------------------------------------------------------------------===//
 // TestDialect
 //===----------------------------------------------------------------------===//
diff --git a/mlir/test/lib/Dialect/Test/TestAttributes.h b/mlir/test/lib/Dialect/Test/TestAttributes.h
index 778d84fae7365..0ad5ab641c6d0 100644
--- a/mlir/test/lib/Dialect/Test/TestAttributes.h
+++ b/mlir/test/lib/Dialect/Test/TestAttributes.h
@@ -24,6 +24,7 @@
 #include "mlir/IR/Dialect.h"
 #include "mlir/IR/DialectImplementation.h"
 #include "mlir/IR/DialectResourceBlobManager.h"
+#include "mlir/IR/TensorEncoding.h"
 
 // generated files require above includes to come first
 #include "TestAttrInterfaces.h.inc"
diff --git a/mlir/test/lib/Dialect/Test/TestDialect.h b/mlir/test/lib/Dialect/Test/TestDialect.h
index f2adca6310d78..bcf3b55d33cb9 100644
--- a/mlir/test/lib/Dialect/Test/TestDialect.h
+++ b/mlir/test/lib/Dialect/Test/TestDialect.h
@@ -18,6 +18,7 @@
 #include "TestInterfaces.h"
 #include "TestTypes.h"
 #include "mlir/Bytecode/BytecodeImplementation.h"
+#include "mlir/Dialect/Bufferization/IR/Bufferization.h"
 #include "mlir/Dialect/DLTI/DLTI.h"
 #include "mlir/Dialect/DLTI/Traits.h"
 #include "mlir/Dialect/Func/IR/FuncOps.h"
diff --git a/mlir/test/lib/Dialect/Test/TestDialect.td b/mlir/test/lib/Dialect/Test/TestDialect.td
index 2b5491fc0c6a0..37a263f1d10b8 100644
--- a/mlir/test/lib/Dialect/Test/TestDialect.td
+++ b/mlir/test/lib/Dialect/Test/TestDialect.td
@@ -24,7 +24,10 @@ def Test_Dialect : Dialect {
   let useDefaultTypePrinterParser = 0;
   let useDefaultAttributePrinterParser = 1;
   let isExtensible = 1;
-  let dependentDialects = ["::mlir::DLTIDialect"];
+  let dependentDialects = [
+    "::mlir::DLTIDialect",
+    "::mlir::bufferization::BufferizationDialect"
+  ];
   let discardableAttrs = (ins
      "mlir::IntegerAttr":$discardable_attr_key,
      "SimpleAAttr":$other_discardable_attr_key
diff --git a/mlir/test/lib/Dialect/Test/TestOpDefs.cpp b/mlir/test/lib/Dialect/Test/TestOpDefs.cpp
index 53055fea215b7..b211e243f234c 100644
--- a/mlir/test/lib/Dialect/Test/TestOpDefs.cpp
+++ b/mlir/test/lib/Dialect/Test/TestOpDefs.cpp
@@ -1425,6 +1425,39 @@ TestMultiSlotAlloca::handleDestructuringComplete(
   return createNewMultiAllocaWithoutSlot(slot, builder, *this);
 }
 
+namespace {
+/// Returns test dialect's memref layout for test dialect's tensor encoding when
+/// applicable.
+MemRefLayoutAttrInterface
+getMemRefLayoutForTensorEncoding(RankedTensorType tensorType) {
+  if (auto encoding =
+          dyn_cast<test::TestTensorEncodingAttr>(tensorType.getEncoding())) {
+    return cast<MemRefLayoutAttrInterface>(test::TestMemRefLayoutAttr::get(
+        tensorType.getContext(), encoding.getDummy()));
+  }
+  return {};
+}
+
+/// Auxiliary bufferization function for test and builtin tensors.
+bufferization::BufferLikeType
+convertTensorToBuffer(mlir::Operation *op,
+                      const bufferization::BufferizationOptions &options,
+                      bufferization::TensorLikeType tensorLike) {
+  auto buffer =
+      *tensorLike.getBufferType(options, [&]() { return op->emitError(); });
+  if (auto memref = dyn_cast<MemRefType>(buffer)) {
+    // Note: For the sake of testing, we want to ensure that encoding -> layout
+    // bufferization happens. This is currently achieved manually.
+    auto layout =
+        getMemRefLayoutForTensorEncoding(cast<RankedTensorType>(tensorLike));
+    return cast<bufferization::BufferLikeType>(
+        MemRefType::get(memref.getShape(), memref.getElementType(), layout,
+                        memref.getMemorySpace()));
+  }
+  return buffer;
+}
+} // namespace
+
 ::mlir::LogicalResult test::TestDummyTensorOp::bufferize(
     ::mlir::RewriterBase &rewriter,
     const ::mlir::bufferization::BufferizationOptions &options,
@@ -1435,8 +1468,8 @@ ::mlir::LogicalResult test::TestDummyTensorOp::bufferize(
     return failure();
 
   const auto outType = getOutput().getType();
-  const auto bufferizedOutType = test::TestMemrefType::get(
-      getContext(), outType.getShape(), outType.getElementType(), nullptr);
+  const auto bufferizedOutType =
+      convertTensorToBuffer(getOperation(), options, outType);
   // replace op with memref analogy
   auto dummyMemrefOp = test::TestDummyMemrefOp::create(
       rewriter, getLoc(), bufferizedOutType, *buffer);
@@ -1470,13 +1503,12 @@ ::mlir::LogicalResult test::TestCreateTensorOp::bufferize(
 
 mlir::FailureOr<mlir::bufferization::BufferLikeType>
 test::TestCreateTensorOp::getBufferType(
-    mlir::Value value, const mlir::bufferization::BufferizationOptions &,
+    mlir::Value value, const mlir::bufferization::BufferizationOptions &options,
     const mlir::bufferization::BufferizationState &,
     llvm::SmallVector<::mlir::Value> &) {
-  const auto type = dyn_cast<test::TestTensorType>(value.getType());
+  const auto type = dyn_cast<bufferization::TensorLikeType>(value.getType());
   if (type == nullptr)
     return failure();
 
-  return cast<mlir::bufferization::BufferLikeType>(test::TestMemrefType::get(
-      getContext(), type.getShape(), type.getElementType(), nullptr));
+  return convertTensorToBuffer(getOperation(), options, type);
 }
diff --git a/mlir/test/lib/Dialect/Test/TestOps.td b/mlir/test/lib/Dialect/Test/TestOps.td
index 6ea27187655ee..b08933c08d132 100644
--- a/mlir/test/lib/Dialect/Test/TestOps.td
+++ b/mlir/test/lib/Dialect/Test/TestOps.td
@@ -32,6 +32,7 @@ include "mlir/Interfaces/MemorySlotInterfaces.td"
 include "mlir/Interfaces/SideEffectInterfaces.td"
 include "mlir/Interfaces/ValueBoundsOpInterface.td"
 include "mlir/Dialect/Bufferization/IR/BufferizableOpInterface.td"
+include "mlir/Dialect/Bufferization/IR/BufferizationTypeInterfaces.td"
 
 // Include the attribute definitions.
 include "TestAttrDefs.td"
@@ -2322,7 +2323,7 @@ def SideEffectWithRegionOp : TEST_Op<"side_effect_with_region_op",
 }
 
 //===----------------------------------------------------------------------===//
-// Copy Operation Test 
+// Copy Operation Test
 //===----------------------------------------------------------------------===//
 
 def CopyOp : TEST_Op<"copy", []> {
@@ -3663,10 +3664,10 @@ def TestDummyTensorOp : TEST_Op<"dummy_tensor_op",
         ["bufferize", "bufferizesToMemoryRead",
          "bufferizesToMemoryWrite", "getAliasingValues"]>]> {
   let arguments = (ins
-    Arg<TestTensorType>:$input
+    Arg<Bufferization_TensorLikeTypeInterface>:$input
   );
   let results = (outs
-    Arg<TestTensorType>:$output
+    Arg<Bufferization_TensorLikeTypeInterface>:$output
   );
 
   let extraClassDefinition = [{
@@ -3688,10 +3689,10 @@ def TestDummyTensorOp : TEST_Op<"dummy_tensor_op",
 
 def TestDummyMemrefOp : TEST_Op<"dummy_memref_op", []> {
   let arguments = (ins
-    Arg<TestMemrefType>:$input
+    Arg<Bufferization_BufferLikeTypeInterface>:$input
   );
   let results = (outs
-    Arg<TestMemrefType>:$output
+    Arg<Bufferization_BufferLikeTypeInterface>:$output
   );
 }
 
@@ -3701,7 +3702,7 @@ def TestCreateTensorOp : TEST_Op<"create_tensor_op",
          "bufferizesToMemoryWrite", "getAliasingValues",
          "bufferizesToAllocation"]>]> {
   let arguments = (ins);
-  let results = (outs Arg<TestTensorType>:$output);
+  let results = (outs Arg<Bufferization_TensorLikeTypeInterface>:$output);
   let extraClassDefinition = [{
     bool test::TestCreateTensorOp::bufferizesToMemoryRead(::mlir::OpOperand&,
         const ::mlir::bufferization::AnalysisState&) {
@@ -3725,7 +3726,7 @@ def TestCreateTensorOp : TEST_Op<"create_tensor_op",
 
 def TestCreateMemrefOp : TEST_Op<"create_memref_op"> {
   let arguments = (ins);
-  let results = (outs Arg<TestMemrefType>:$output);
+  let results = (outs Arg<Bufferization_BufferLikeTypeInterface>:$output);
 }
 
 //===----------------------------------------------------------------------===//