diff --git a/transformer_engine/common/gemm/cublaslt_gemm.cu b/transformer_engine/common/gemm/cublaslt_gemm.cu
index a0529c80c0..1982ba15bb 100644
--- a/transformer_engine/common/gemm/cublaslt_gemm.cu
+++ b/transformer_engine/common/gemm/cublaslt_gemm.cu
@@ -747,6 +747,15 @@ void cublas_gemm(const Tensor *inputA, const Tensor *inputB, Tensor *outputD,
   NVTE_CHECK_CUBLAS(cublasLtMatmulPreferenceCreate(&preference));
   NVTE_CHECK_CUBLAS(cublasLtMatmulPreferenceSetAttribute(
       preference, CUBLASLT_MATMUL_PREF_MAX_WORKSPACE_BYTES, &workspaceSize, sizeof(workspaceSize)));
+  // Avoid reduced-precision split-K reductions. In particular,
+  // CUBLASLT_REDUCTION_SCHEME_OUTPUT_TYPE converts each split-K partial to BF16 before the final
+  // reduction, which can introduce significant error for cancellation-heavy dot products.
+  // Non-split algorithms remain eligible, as do split-K algorithms that reduce their partials in
+  // the FP32 compute type.
+  const uint32_t reduction_scheme_mask = CUBLASLT_REDUCTION_SCHEME_COMPUTE_TYPE;
+  NVTE_CHECK_CUBLAS(
+      cublasLtMatmulPreferenceSetAttribute(preference, CUBLASLT_MATMUL_PREF_REDUCTION_SCHEME_MASK,
+                                           &reduction_scheme_mask, sizeof(reduction_scheme_mask)));
   const auto A_alignment = _getAlignment(reinterpret_cast<uintptr_t>(param.A));
   const auto B_alignment = _getAlignment(reinterpret_cast<uintptr_t>(param.B));
   const auto C_alignment = _getAlignment(reinterpret_cast<uintptr_t>(C));