diff --git a/third_party/xla/xla/service/while_loop_invariant_code_motion.cc b/third_party/xla/xla/service/while_loop_invariant_code_motion.cc
index 1f670664434c02..ed44547af3fca4 100644
--- a/third_party/xla/xla/service/while_loop_invariant_code_motion.cc
+++ b/third_party/xla/xla/service/while_loop_invariant_code_motion.cc
@@ -15,6 +15,11 @@ limitations under the License.
 
 #include "xla/service/while_loop_invariant_code_motion.h"
 
+#include <cstdint>
+#include <iterator>
+#include <string>
+#include <vector>
+
 #include "absl/algorithm/container.h"
 #include "absl/container/flat_hash_map.h"
 #include "absl/container/flat_hash_set.h"
@@ -32,7 +37,6 @@ limitations under the License.
 #include "xla/service/while_util.h"
 #include "xla/shape.h"
 #include "xla/shape_util.h"
-#include "xla/statusor.h"
 #include "xla/util.h"
 #include "tsl/platform/errors.h"
 #include "tsl/platform/statusor.h"
@@ -112,10 +116,14 @@ static void CreateLoopInvariantCopy(
 }
 
 // Returns true if `instruction` is worth hoisting only if it lets us hoist some
-// instruction using it.  The rationale is that hoisting these instructions will
-// prevent simplification and fusion in the while body.
+// instruction using it. The rationale is that hoisting these instructions will
+// prevent simplification, fusion, and sharding annotation in the while body.
 bool WhileLoopInvariantCodeMotion::NotWorthHoistingIndividually(
     const HloInstruction& instruction) {
+  if (instruction.IsCustomCall("Sharding")) {
+    return true;
+  }
+
   switch (instruction.opcode()) {
     default:
       return false;
diff --git a/third_party/xla/xla/service/while_loop_invariant_code_motion_test.cc b/third_party/xla/xla/service/while_loop_invariant_code_motion_test.cc
index 5a9a35e31fbe9b..57f2768b458c0e 100644
--- a/third_party/xla/xla/service/while_loop_invariant_code_motion_test.cc
+++ b/third_party/xla/xla/service/while_loop_invariant_code_motion_test.cc
@@ -639,7 +639,7 @@ TEST_F(WhileLoopInvariantCodeMotionTest, NoHoistInflating) {
   EXPECT_FALSE(simplified_loop);
 }
 
-TEST_F(WhileLoopInvariantCodeMotionTest, DoesNotHoistShardingCustomCalls) {
+TEST_F(WhileLoopInvariantCodeMotionTest, DoesNotHoistSPMDFullToShardShape) {
   auto m = CreateNewVerifiedModule();
   auto array_s32 = ShapeUtil::MakeShape(S32, {4});
   Shape while_shape =
@@ -690,5 +690,43 @@ TEST_F(WhileLoopInvariantCodeMotionTest, DoesNotHoistShardingCustomCalls) {
   EXPECT_FALSE(simplified_loop);
 }
 
+TEST_F(WhileLoopInvariantCodeMotionTest, DoesNotHoistShardingCustomCalls) {
+  const char* const kHloModule = R"(
+    HloModule ModuleWithWhile
+
+    body {
+      p_body = (f32[2], f32[2], s32[]) parameter(0)
+      gte.0 = f32[2] get-tuple-element(p_body), index=0
+      gte.1 = f32[2] get-tuple-element(p_body), index=1
+      sharding.0 = f32[2] custom-call(gte.0), custom_call_target="Sharding", sharding={devices=[2]<=[2]}
+      sharding.1 = f32[2] custom-call(gte.1), custom_call_target="Sharding", sharding={replicated}
+      add.0 = f32[2] add(sharding.0, sharding.1)
+      gte.2 = s32[] get-tuple-element(p_body), index=2
+      const = s32[] constant(1)
+      add.1 = s32[] add(gte.2, const)
+      ROOT root = (f32[2], f32[2], s32[]) tuple(gte.0, add.0, add.1)
+    }
+
+    condition {
+      p_cond = (f32[2], f32[2], s32[]) parameter(0)
+      gte = s32[] get-tuple-element(p_cond), index=2
+      const = s32[] constant(5)
+      ROOT result = pred[] compare(gte, const), direction=LT
+    }
+
+    ENTRY entry {
+      param.0 = f32[2] parameter(0)
+      param.1 = s32[] parameter(1)
+      while_init = (f32[2], f32[2], s32[]) tuple(param.0, param.0, param.1)
+      ROOT while = (f32[2], f32[2], s32[]) while(while_init), condition=condition, body=body
+    })";
+  TF_ASSERT_OK_AND_ASSIGN(std::unique_ptr<HloModule> module,
+                          ParseAndReturnVerifiedModule(kHloModule));
+
+  TF_ASSERT_OK_AND_ASSIGN(bool simplified_loop,
+                          WhileLoopInvariantCodeMotion{}.Run(module.get()));
+  EXPECT_FALSE(simplified_loop);
+}
+
 }  // namespace
 }  // namespace xla