diff --git a/src/plugins/intel_gpu/src/graph/graph_optimizer/prepare_primitive_fusing.cpp b/src/plugins/intel_gpu/src/graph/graph_optimizer/prepare_primitive_fusing.cpp
index abbdbe1ce1b..e87b90537e7 100644
--- a/src/plugins/intel_gpu/src/graph/graph_optimizer/prepare_primitive_fusing.cpp
+++ b/src/plugins/intel_gpu/src/graph/graph_optimizer/prepare_primitive_fusing.cpp
@@ -70,7 +70,7 @@ void prepare_primitive_fusing::remove_redundant_reshape(program &p) {
             for (auto prev : node.get_dependencies()) {
                 if (!prev.first->is_type<reshape>())
                     return;
-                if (prev.first->get_users().size() > 1)
+                if (prev.first->get_users().size() > 1 || prev.first->get_dependencies().size() > 1)
                     return;
                 if (prev.first->as<reshape>().input().get_output_layout() == node.get_output_layout()) {
                     p.add_optimized_primitive_info(prev.first->id());
diff --git a/src/plugins/intel_gpu/src/graph/primitive_inst.cpp b/src/plugins/intel_gpu/src/graph/primitive_inst.cpp
index a6f7755d908..f072f798fac 100644
--- a/src/plugins/intel_gpu/src/graph/primitive_inst.cpp
+++ b/src/plugins/intel_gpu/src/graph/primitive_inst.cpp
@@ -153,6 +153,9 @@ void primitive_inst::update_shape() {
         auto idx = _deps[i].second;
         auto new_shape = _deps[i].first->_impl_params->get_output_layout(idx);
         if (_impl_params->get_input_layout(i) != new_shape) {
+            GPU_DEBUG_TRACE_DETAIL << id() << ": update shape dep: " << _deps[i].first->id()
+                                   << " was: " << _impl_params->get_input_layout(i).to_short_string()
+                                   << " now: " << new_shape.to_short_string() << std::endl;
             _impl_params->input_layouts[i] = new_shape;
             input_shape_changed = true;
         }
diff --git a/src/plugins/intel_gpu/src/kernel_selector/kernels/gather/gather_kernel_ref.cpp b/src/plugins/intel_gpu/src/kernel_selector/kernels/gather/gather_kernel_ref.cpp
index c5dc9a2db62..4e15c2d8fef 100644
--- a/src/plugins/intel_gpu/src/kernel_selector/kernels/gather/gather_kernel_ref.cpp
+++ b/src/plugins/intel_gpu/src/kernel_selector/kernels/gather/gather_kernel_ref.cpp
@@ -297,7 +297,7 @@ KernelsData GatherKernelRef::GetKernelsData(const Params& params, const optional
                      2,
                      GetFusedPrimitiveInputsCount(params),
                      1,
-                     newParams.outputs[0].is_dynamic());
+                     newParams.has_dynamic_tensors());
 
     return {kd};
 }
diff --git a/src/plugins/intel_gpu/tests/passes/prepare_primitive_fusing_test.cpp b/src/plugins/intel_gpu/tests/passes/prepare_primitive_fusing_test.cpp
index 6a7d397edb2..b4175a32ed7 100644
--- a/src/plugins/intel_gpu/tests/passes/prepare_primitive_fusing_test.cpp
+++ b/src/plugins/intel_gpu/tests/passes/prepare_primitive_fusing_test.cpp
@@ -11,6 +11,8 @@
 #include "data_inst.h"
 #include "eltwise_inst.h"
 #include "reduce_inst.h"
+#include "reshape_inst.h"
+#include "gemm_inst.h"
 #include "pass_manager.h"
 #include "to_string_utils.h"
 
@@ -403,3 +405,38 @@ TEST(prepare_primitive_fusing, fuse_eltwise_to_fc_dyn_illegal_2) {
     ASSERT_EQ(lock[2], 93);
     ASSERT_EQ(lock[3], 94);
 }
+
+TEST(prepare_primitive_fusing, dont_remove_only_dep_reshape) {
+    // Topology:
+    // input -> reshape(w/ 2nd non-const input) -> reshape(w/ 2nd const input) -> gemm
+    //
+    // Expectation:
+    // If only the input size of depedency reshape is not 1 among the sequence of reshapes
+    // The current reshape alone should not be removed, and removing redundant reshapes is skipped
+
+    auto& engine = get_test_engine();
+    auto in_layout = layout{ ov::PartialShape::dynamic(4), data_types::f32, format::bfyx };
+    auto pattern_layout = layout{ ov::PartialShape{ 4 }, data_types::i64, format::bfyx };
+
+    std::vector<int64_t> output_pattern { 0, 1, -1, 0 };
+
+    topology topology;
+    topology.add(input_layout("input1", in_layout));
+    topology.add(input_layout("pattern1", pattern_layout));
+    topology.add(input_layout("input2", in_layout));
+    topology.add(reshape("reshape1", input_info("input1"), input_info("pattern1"), true, ov::PartialShape::dynamic(4)));
+    topology.add(reshape("reshape2", input_info("reshape1"), true, output_pattern, ov::PartialShape::dynamic(4)));
+    topology.add(gemm("gemm", { input_info("reshape2"), input_info("input2") }, data_types::f32, false, false));
+
+    ExecutionConfig config;
+    config.set_property(ov::intel_gpu::optimize_data(true));
+    config.set_property(ov::intel_gpu::allow_new_shape_infer(true));
+    auto prog = program::build_program(engine, topology, config, false, true);
+
+    layout_optimizer lo(true);
+
+    program_wrapper::apply_opt_pass<prepare_primitive_fusing>(*prog, lo);
+
+    ASSERT_NE(prog, nullptr);
+    ASSERT_TRUE(has_node(*prog, "reshape2"));
+}