diff --git a/src/plugins/intel_gpu/src/plugin/ops/gather_elements.cpp b/src/plugins/intel_gpu/src/plugin/ops/gather_elements.cpp
index 9834d032027..ad0501b5373 100644
--- a/src/plugins/intel_gpu/src/plugin/ops/gather_elements.cpp
+++ b/src/plugins/intel_gpu/src/plugin/ops/gather_elements.cpp
@@ -18,21 +18,25 @@ static void CreateGatherElementsOp(Program& p, const std::shared_ptr<ngraph::op:
     auto inputs = p.GetInputInfo(op);
     std::string layerName = layer_type_name_ID(op);
 
-    auto outLayout = cldnn::format::get_default_format(op->get_output_shape(0).size());
-
-    size_t rank = op->get_input_shape(0).size();
+    size_t rank = op->get_input_partial_shape(0).size();
     int64_t axis = op->get_axis();
     if (axis < 0)
         axis += rank;
     OPENVINO_ASSERT(axis >= 0 && axis < static_cast<int64_t>(rank),
                     "GatherElements axis is not correspond to number of dimensions");
 
-    auto primitive = cldnn::gather_elements(layerName,
-                                            inputs[0],
-                                            inputs[1],
-                                            outLayout,
-                                            tensor_from_dims(op->get_output_shape(0)),
-                                            axis);
+    std::shared_ptr<cldnn::gather_elements> primitive = nullptr;
+    if (op->get_output_partial_shape(0).is_dynamic() || p.use_new_shape_infer()) {
+        primitive = std::make_shared<cldnn::gather_elements>(layerName, inputs[0], inputs[1], axis);
+    } else {
+        auto outLayout = cldnn::format::get_default_format(op->get_output_shape(0).size());
+        primitive = std::make_shared<cldnn::gather_elements>(layerName,
+                                                             inputs[0],
+                                                             inputs[1],
+                                                             outLayout,
+                                                             tensor_from_dims(op->get_output_shape(0)),
+                                                             axis);
+    }
 
     p.add_primitive(*op, primitive);
 }
diff --git a/src/tests/functional/plugin/gpu/single_layer_tests/dynamic/gather_elements.cpp b/src/tests/functional/plugin/gpu/single_layer_tests/dynamic/gather_elements.cpp
new file mode 100644
index 00000000000..23cef5216d3
--- /dev/null
+++ b/src/tests/functional/plugin/gpu/single_layer_tests/dynamic/gather_elements.cpp
@@ -0,0 +1,111 @@
+// Copyright (C) 2023 Intel Corporation
+// SPDX-License-Identifier: Apache-2.0
+//
+
+#include "shared_test_classes/base/ov_subgraph.hpp"
+#include "ie_precision.hpp"
+#include "ngraph_functions/builders.hpp"
+#include "common_test_utils/ov_tensor_utils.hpp"
+#include <string>
+
+using namespace ov::test;
+using namespace ngraph;
+using namespace InferenceEngine;
+using namespace ngraph::helpers;
+
+namespace GPULayerTestsDefinitions  {
+
+using GatherElementsParams = std::tuple<
+        std::vector<InputShape>,           // Dynamic shape + Target static shapes
+        int,                               // Axis
+        ElementType,                       // Data precision
+        ElementType,                       // Indices precision
+        TargetDevice                       // Device name
+>;
+
+class GatherElementsGPUTest : public testing::WithParamInterface<GatherElementsParams>,
+                              virtual public ov::test::SubgraphBaseTest {
+public:
+    static std::string getTestCaseName(const testing::TestParamInfo<GatherElementsParams>& obj) {
+        std::vector<InputShape> shapes;
+        ElementType dPrecision, iPrecision;
+        int axis;
+        std::string device;
+        std::tie(shapes, axis, dPrecision, iPrecision, device) = obj.param;
+
+        std::ostringstream result;
+        result << "IS=(";
+        for (const auto& shape : shapes) {
+            result << CommonTestUtils::partialShape2str({shape.first}) << "_";
+        }
+        result << ")_TS=(";
+        for (const auto& shape : shapes) {
+            for (const auto& item : shape.second) {
+                result << CommonTestUtils::vec2str(item) << "_";
+            }
+        }
+        result << "Ax=" << axis << "_";
+        result << "DP=" << dPrecision << "_";
+        result << "IP=" << iPrecision << "_";
+        result << "device=" << device;
+
+        return result.str();
+    }
+
+    void generate_inputs(const std::vector<ngraph::Shape>& targetInputStaticShapes) override {
+        inputs.clear();
+        const auto& funcInputs = function->inputs();
+        for (int i = 0; i < funcInputs.size(); ++i) {
+            const auto& funcInput = funcInputs[i];
+            ov::Tensor tensor;
+
+            tensor = ov::test::utils::create_and_fill_tensor(funcInput.get_element_type(), targetInputStaticShapes[i], 15, 0, 32768);
+
+            inputs.insert({funcInput.get_node_shared_ptr(), tensor});
+        }
+    }
+
+protected:
+    void SetUp() override {
+        std::vector<InputShape> shapes;
+        ElementType dPrecision, iPrecision;
+        int axis;
+        std::tie(shapes, axis, dPrecision, iPrecision, targetDevice) = this->GetParam();
+        init_input_shapes(shapes);
+
+        ngraph::ParameterVector params = {
+            std::make_shared<ngraph::opset1::Parameter>(dPrecision, inputDynamicShapes[0]),
+            std::make_shared<ngraph::opset1::Parameter>(iPrecision, inputDynamicShapes[1]),
+        };
+
+        auto gather = std::make_shared<ngraph::op::v6::GatherElements>(params[0], params[1], axis);
+
+        ngraph::ResultVector results{std::make_shared<ngraph::opset4::Result>(gather)};
+        function = std::make_shared<ngraph::Function>(results, params, "GatherElements");
+    }
+};
+
+TEST_P(GatherElementsGPUTest, CompareWithRefs) {
+    run();
+}
+
+namespace {
+
+const std::vector<std::vector<InputShape>> inDynamicShapeParams = {
+    {{{-1, -1, -1, -1}, {{2, 3, 5, 7}, {3, 4, 6, 8}}},
+     {{-1, -1, -1, -1}, {{2, 3, 9, 7}, {3, 4, 4, 8}}}},
+    {{{{1, 10}, {1, 10}, {1, 10}, {1, 10}}, {{3, 4, 6, 8}, {2, 3, 5, 7}}},
+     {{{1, 10}, {1, 10}, {1, 10}, {1, 10}}, {{3, 4, 4, 8}, {2, 3, 9, 7}}}}
+};
+
+INSTANTIATE_TEST_SUITE_P(smoke_set1, GatherElementsGPUTest,
+                ::testing::Combine(
+                    ::testing::ValuesIn(inDynamicShapeParams),                // shape
+                    ::testing::ValuesIn(std::vector<int>({2, -2})),           // Axis
+                    ::testing::ValuesIn(std::vector<ElementType>({ElementType::f16, ElementType::f32})),
+                    ::testing::Values(ElementType::i32),
+                    ::testing::Values(CommonTestUtils::DEVICE_GPU)),
+        GatherElementsGPUTest::getTestCaseName);
+
+} // namespace
+} // namespace GPULayerTestsDefinitions