diff --git a/inference-engine/src/legacy_api/src/ngraph_ops/fully_connected.cpp b/inference-engine/src/legacy_api/src/ngraph_ops/fully_connected.cpp
index 9f6d504935d..764519614b1 100644
--- a/inference-engine/src/legacy_api/src/ngraph_ops/fully_connected.cpp
+++ b/inference-engine/src/legacy_api/src/ngraph_ops/fully_connected.cpp
@@ -28,8 +28,6 @@ shared_ptr<Node> op::FullyConnected::clone_with_new_inputs(const OutputVector& n
 }
 
 void op::FullyConnected::validate_and_infer_types() {
-    if (m_output_shape.size() < 2)
-        throw ngraph_error("FullyConnected shape is incorrect");
     m_output_size = m_output_shape.back();
     set_output_type(
         0,
diff --git a/inference-engine/tests/functional/inference_engine/ngraph_reader/matmul_tests.cpp b/inference-engine/tests/functional/inference_engine/ngraph_reader/matmul_tests.cpp
index 37bc3bfc303..cb7388d951d 100644
--- a/inference-engine/tests/functional/inference_engine/ngraph_reader/matmul_tests.cpp
+++ b/inference-engine/tests/functional/inference_engine/ngraph_reader/matmul_tests.cpp
@@ -564,3 +564,154 @@ TEST_F(NGraphReaderTests, ReadMatMulNetwork5) {
 )V0G0N";
     compareIRs(model, modelV5, 48);
 }
+
+TEST_F(NGraphReaderTests, ReadMatMul1DNetwork) {
+    std::string model = R"V0G0N(
+<net name="Network" version="10">
+    <layers>
+        <layer id="0" name="data" type="Parameter" version="opset1">
+            <data element_type="f32" shape="2048"/>
+            <output>
+                <port id="0" precision="FP32">
+                    <dim>2048</dim>
+                </port>
+            </output>
+        </layer>
+        <layer id="1" name="embedded_input__const" type="Const" version="opset1">
+            <data element_type="f32" offset="0" shape="2048,1000" size="8192000"/>
+            <output>
+                <port id="1" precision="FP32">
+                    <dim>2048</dim>
+                    <dim>1000</dim>
+                </port>
+            </output>
+        </layer>
+        <layer id="3" name="fc" type="MatMul" version="opset1">
+            <input>
+                <port id="0" precision="FP32">
+                    <dim>2048</dim>
+                </port>
+                <port id="1" precision="FP32">
+                    <dim>2048</dim>
+                    <dim>1000</dim>
+                </port>
+            </input>
+            <output>
+                <port id="3" precision="FP32">
+                    <dim>1000</dim>
+                </port>
+            </output>
+        </layer>
+        <layer name="output" type="Result" id="2" version="opset1">
+            <input>
+                <port id="0" precision="FP32">
+                    <dim>1000</dim>
+                </port>
+            </input>
+        </layer>
+    </layers>
+    <edges>
+        <edge from-layer="0" from-port="0" to-layer="3" to-port="0"/>
+        <edge from-layer="1" from-port="1" to-layer="3" to-port="1"/>
+        <edge from-layer="3" from-port="3" to-layer="2" to-port="0"/>
+    </edges>
+</net>
+)V0G0N";
+    // 'fc' layer biases are fake and added due to IE limitation for Fully Connected layer
+    std::string modelV5 = R"V0G0N(
+<?xml version="1.0"?>
+<net name="Network" version="6" batch="1">
+	<layers>
+		<layer name="data" type="Input" precision="FP32" id="0">
+			<data originalLayersNames="data" />
+			<output>
+				<port id="0" precision="FP32">
+					<dim>2048</dim>
+				</port>
+			</output>
+		</layer>
+		<layer name="Constant_735" type="Const" precision="I64" id="1">
+			<output>
+				<port id="0" precision="I64">
+					<dim>2</dim>
+				</port>
+			</output>
+			<blobs>
+				<custom offset="0" size="16" precision="I64" />
+			</blobs>
+		</layer>
+		<layer name="fc/Reshape" type="Reshape" precision="FP32" id="2">
+			<data dim="" originalLayersNames="fc" />
+			<input>
+				<port id="0">
+					<dim>2048</dim>
+				</port>
+				<port id="1">
+					<dim>2</dim>
+				</port>
+			</input>
+			<output>
+				<port id="2" precision="FP32">
+					<dim>1</dim>
+					<dim>2048</dim>
+				</port>
+			</output>
+		</layer>
+		<layer name="FullyConnected_737" type="FullyConnected" precision="FP32" id="3">
+			<data originalLayersNames="fc" out-size="1000" />
+			<input>
+				<port id="0">
+					<dim>1</dim>
+					<dim>2048</dim>
+				</port>
+			</input>
+			<output>
+				<port id="1" precision="FP32">
+					<dim>1</dim>
+					<dim>1000</dim>
+				</port>
+			</output>
+			<blobs>
+				<biases offset="16" size="4000" precision="FP32" />
+				<weights offset="4016" size="8192000" precision="FP32" />
+			</blobs>
+		</layer>
+		<layer name="Constant_738" type="Const" precision="I64" id="4">
+			<output>
+				<port id="0" precision="I64">
+					<dim>1</dim>
+				</port>
+			</output>
+			<blobs>
+				<custom offset="8196016" size="8" precision="I64" />
+			</blobs>
+		</layer>
+		<layer name="fc" type="Reshape" precision="FP32" id="5">
+			<data dim="" originalLayersNames="fc" />
+			<input>
+				<port id="0">
+					<dim>1</dim>
+					<dim>1000</dim>
+				</port>
+				<port id="1">
+					<dim>1</dim>
+				</port>
+			</input>
+			<output>
+				<port id="2" precision="FP32">
+					<dim>1000</dim>
+				</port>
+			</output>
+		</layer>
+	</layers>
+	<edges>
+		<edge from-layer="0" from-port="0" to-layer="2" to-port="0" />
+		<edge from-layer="1" from-port="0" to-layer="2" to-port="1" />
+		<edge from-layer="2" from-port="2" to-layer="3" to-port="0" />
+		<edge from-layer="3" from-port="1" to-layer="5" to-port="0" />
+		<edge from-layer="4" from-port="0" to-layer="5" to-port="1" />
+	</edges>
+</net>
+)V0G0N";
+    compareIRs(model, modelV5, 8293000);
+}