diff --git a/test/pjrt/test_collective_ops_tpu.py b/test/pjrt/test_collective_ops_tpu.py
index 7ee9e7d8a66f..50a85b92dbb7 100644
--- a/test/pjrt/test_collective_ops_tpu.py
+++ b/test/pjrt/test_collective_ops_tpu.py
@@ -103,29 +103,6 @@ def test_reduce_scatter(self, pin_layout):
     for ordinal, value in results.items():
       np.testing.assert_array_equal(value, [-ordinal])
 
-  @staticmethod
-  def _scatter():
-    dist.init_process_group("xla", init_method='xla://')
-    device = torch_xla.device()
-    world_size = xr.world_size()
-    tensors = None
-    if xr.global_ordinal() == 0:
-      tensors = [
-          torch.tensor([i], device=device, dtype=torch.float)
-          for i in range(world_size)
-      ]
-
-    output_tensor = torch.tensor([-1], dtype=torch.float, device=device)
-    dist.scatter(output_tensor, tensors, src=0)
-    return output_tensor.cpu()
-
-  def test_scatter(self):
-    """self._scatter instantiates a list of tensors [[0], [1], ..., [n-1]]
-    on device 0, then scatters it. Device i should therefore receive [i]."""
-    results = pjrt.run_multiprocess(self._scatter)
-    for ordinal, value in results.items():
-      np.testing.assert_array_equal(value, [ordinal])
-
   @staticmethod
   def _all_to_all(pin_layout):
     device = torch_xla.device()
@@ -359,6 +336,49 @@ def test_all_to_all_single(self, use_dynamo):
                          expected.sort().values),
           f"Got {val}, expected {expected}")
 
+  @staticmethod
+  def _scatter():
+    dist.init_process_group("xla", init_method='xla://')
+    device = torch_xla.device()
+    world_size = xr.world_size()
+    tensors = None
+    if xr.global_ordinal() == 0:
+      tensors = [
+          torch.tensor([i], device=device, dtype=torch.float)
+          for i in range(world_size)
+      ]
+
+    output_tensor = torch.tensor([-1], dtype=torch.float, device=device)
+    dist.scatter(output_tensor, tensors, src=0)
+    return output_tensor.cpu()
+
+  def test_scatter(self):
+    """self._scatter instantiates a list of tensors [[0], [1], ..., [n-1]]
+    on device 0, then scatters it. Device i should therefore receive [i]."""
+    results = pjrt.run_multiprocess(self._scatter)
+    for ordinal, value in results.items():
+      np.testing.assert_array_equal(value, [ordinal])
+
+  @staticmethod
+  def _reduce():
+    dist.init_process_group("xla", init_method='xla://')
+    device = torch_xla.device()
+    input = torch.tensor([xr.global_ordinal()],
+                         dtype=torch.float,
+                         device=device)
+    dist.reduce(input, dst=0, op=dist.ReduceOp.SUM)
+
+    return input.cpu()
+
+  def test_reduce(self):
+    results = pjrt.run_multiprocess(self._reduce)
+    for ordinal, value in results.items():
+      if ordinal == 0:
+        expected = sum(range(tpu.num_expected_global_devices()))
+      else:
+        expected = ordinal
+      np.testing.assert_array_equal(value, [expected])
+
 
 if __name__ == '__main__':
   absltest.main()
diff --git a/test/test_torch_distributed_xla_backend.py b/test/test_torch_distributed_xla_backend.py
index 99b721a4fa16..e0c5af31bf2a 100644
--- a/test/test_torch_distributed_xla_backend.py
+++ b/test/test_torch_distributed_xla_backend.py
@@ -356,7 +356,6 @@ def test_barrier(self):
     dist.barrier()
 
   @parameterized.parameters(
-      'reduce',
       'allreduce_coalesced',
       'alltoall',
       'gather',
diff --git a/torch_xla/distributed/xla_backend.py b/torch_xla/distributed/xla_backend.py
index daef50c243dc..7c14f0f23f69 100644
--- a/torch_xla/distributed/xla_backend.py
+++ b/torch_xla/distributed/xla_backend.py
@@ -1,11 +1,12 @@
 import torch
 import torch.distributed as dist
+import torch_xla
 import torch_xla.core.xla_model as xm
 import torch_xla.runtime as xr
 from torch_xla._internal import rendezvous
 import logging
 import os
-from torch._C._distributed_c10d import ProcessGroup, ScatterOptions, ReduceScatterOptions, AllgatherOptions
+from torch._C._distributed_c10d import ProcessGroup, ScatterOptions, ReduceScatterOptions, AllgatherOptions, ReduceOptions
 
 
 def _create_xla_process_group(prefix_store, rank, size, timeout):
@@ -224,11 +225,24 @@ def _reduce_scatter_base(self, output_tensor, input_tensor, opts):
   def barrier(self, opts):
     return _ret_work([])
 
-  # Call site:
-  # https://github.com/pytorch/pytorch/blob/70f57bcb1e45d21532bdb1c44d3aab018d1cbe88/torch/distributed/distributed_c10d.py#L1417
-  # `reduce` is not needed by DeepSpeed for now.
-  def reduce(self, *args):
-    raise NotImplementedError
+  # Called by torch.distributed.reduce. Call site example:
+  # https://github.com/pytorch/pytorch/blob/v2.7.1/torch/distributed/distributed_c10d.py#L2925
+  # Tensors are reduced but result is only saved on dst device.
+  # Input tensor is unchanged on all other devices.
+  # This is an inefficient operation. In order to avoid XLA deadlocks it
+  # performs redundant reductions on all devices and materializes the result.
+  def reduce(self, tensors: list[torch.Tensor], opts: ReduceOptions):
+    rank = xr.global_ordinal()
+    dst = opts.rootRank
+    reduce_type = self._get_reduce_type(opts.reduceOp)
+    for tensor in tensors:
+      result = xm.all_reduce(reduce_type, inputs=tensor)
+      torch_xla.sync()
+
+      if rank == dst:
+        tensor.copy_(result)
+
+    return _ret_work(tensors)
 
   def allreduce_coalesced(self, *args):
     raise NotImplementedError