diff --git a/onert-micro/onert-micro/include/OMConfig.h b/onert-micro/onert-micro/include/OMConfig.h
index 0ffbf024b1f..cce3022d6f7 100644
--- a/onert-micro/onert-micro/include/OMConfig.h
+++ b/onert-micro/onert-micro/include/OMConfig.h
@@ -52,6 +52,7 @@ enum OMLoss
   CROSS_ENTROPY,
   MSE,
   MAE,
+  SPARSE_CROSS_ENTROPY,
 };
 
 /*
diff --git a/onert-micro/onert-micro/include/train/losses_functions/SparseCrossEntropy.h b/onert-micro/onert-micro/include/train/losses_functions/SparseCrossEntropy.h
new file mode 100644
index 00000000000..198cbf35dc9
--- /dev/null
+++ b/onert-micro/onert-micro/include/train/losses_functions/SparseCrossEntropy.h
@@ -0,0 +1,43 @@
+/*
+ * Copyright (c) 2024 Samsung Electronics Co., Ltd. All Rights Reserved
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *    http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+#ifndef ONERT_MICRO_TRAIN_LOSSES_FUNCTIONS_SPARSE_CROSS_ENTROPY_H
+#define ONERT_MICRO_TRAIN_LOSSES_FUNCTIONS_SPARSE_CROSS_ENTROPY_H
+
+#include "OMStatus.h"
+
+#include <cstdint>
+
+namespace onert_micro
+{
+namespace train
+{
+namespace losses_functions
+{
+
+// Cross Entropy
+struct SparseCrossEntropy
+{
+  // Calculate sparse cross entropy error backpropagation between calculated and target data
+  static void calculateErrorBackpropagation(const uint32_t flat_size, const float *calculated_data,
+                                            const float *target_data, float *output_grad);
+};
+
+} // namespace losses_functions
+} // namespace train
+} // namespace onert_micro
+
+#endif // ONERT_MICRO_TRAIN_LOSSES_FUNCTIONS_SPARSE_CROSS_ENTROPY_H
\ No newline at end of file
diff --git a/onert-micro/onert-micro/src/core/train/OMTrainingHandler.cpp b/onert-micro/onert-micro/src/core/train/OMTrainingHandler.cpp
index 24535625a02..097a39d3ba5 100644
--- a/onert-micro/onert-micro/src/core/train/OMTrainingHandler.cpp
+++ b/onert-micro/onert-micro/src/core/train/OMTrainingHandler.cpp
@@ -19,6 +19,7 @@
 #include "core/train/OMTrainingHandler.h"
 #include "train/losses_functions/MSE.h"
 #include "train/losses_functions/CrossEntropy.h"
+#include "train/losses_functions/SparseCrossEntropy.h"
 #include "train/metrics/MSE.h"
 #include "train/metrics/CrossEntropy.h"
 #include "train/metrics/Accuracy.h"
@@ -56,11 +57,18 @@ OMStatus OMTrainingHandler::handleError(const OMConfig &config, OMRuntimeStorage
     OMStatus status = forward_storage.getDataByTensorIndex(&calculated_data, forward_output_index);
     assert(calculated_data != nullptr);
 
+    OMLoss loss_type = config.training_context.loss;
+
     // Get target data
     auto data_type_size = sizeof(core::OMDataType(forward_output_tensor->type()));
     size_t offset = batch_num * data_type_size * flat_size;
+    
+    // Need to check loss type to control proper offset.
+    if (loss_type == SPARSE_CROSS_ENTROPY)
+    {
+      offset = batch_num * data_type_size;
+    }
     uint8_t *target_data = _training_storage.getTargetData(i) + offset;
-    OMLoss loss_type = config.training_context.loss;
 
     // Allocate data for error gradient for current calculated data and target data
     uint8_t *output_grad_data;
@@ -85,6 +93,13 @@ OMStatus OMTrainingHandler::handleError(const OMConfig &config, OMRuntimeStorage
           reinterpret_cast<float *>(target_data), reinterpret_cast<float *>(output_grad_data));
         break;
       }
+      case SPARSE_CROSS_ENTROPY:
+      {
+        losses_functions::SparseCrossEntropy::calculateErrorBackpropagation(
+          flat_size, reinterpret_cast<float *>(calculated_data),
+          reinterpret_cast<float *>(target_data), reinterpret_cast<float *>(output_grad_data));
+        break;
+      }
       default:
       {
         assert(false && "Unsupported loss type");
diff --git a/onert-micro/onert-micro/src/train/CMakeLists.txt b/onert-micro/onert-micro/src/train/CMakeLists.txt
index 6374a9dfc9e..baf3e1034b1 100644
--- a/onert-micro/onert-micro/src/train/CMakeLists.txt
+++ b/onert-micro/onert-micro/src/train/CMakeLists.txt
@@ -14,6 +14,7 @@ set(SOURCES
         OMBackpropExecutionBuilder.cpp
         losses_functions/MSE.cpp
         losses_functions/CrossEntropy.cpp
+        losses_functions/SparseCrossEntropy.cpp
         metrics/CrossEntropy.cpp
         metrics/MAE.cpp
         metrics/MSE.cpp
diff --git a/onert-micro/onert-micro/src/train/losses_functions/SparseCrossEntropy.cpp b/onert-micro/onert-micro/src/train/losses_functions/SparseCrossEntropy.cpp
new file mode 100644
index 00000000000..08292b680de
--- /dev/null
+++ b/onert-micro/onert-micro/src/train/losses_functions/SparseCrossEntropy.cpp
@@ -0,0 +1,44 @@
+/*
+ * Copyright (c) 2024 Samsung Electronics Co., Ltd. All Rights Reserved
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *    http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+#include "train/losses_functions/SparseCrossEntropy.h"
+#include <cmath>
+
+using namespace onert_micro;
+using namespace onert_micro::train;
+using namespace onert_micro::train::losses_functions;
+
+/*
+ * dE/dZi = (dE/dy) * (dy / dZi)
+ * where Z - vector of logits, 
+ *       y - probaility of target.
+ * 
+ * Since dE/dy = -(1/y), 
+ *      (true label)   if  i == y : dE/dZi = py - 1 = y - 1
+ *      (wrong label)  else :       dE/dZi = pj 
+ * 
+ */
+void SparseCrossEntropy::calculateErrorBackpropagation(const uint32_t flat_size,
+                                                 const float *calculated_data,
+                                                 const float *target_data, float *output_grad)
+{
+  uint32_t label = static_cast<uint32_t>(target_data[0]);
+
+  for (uint32_t i = 0; i < flat_size; ++i)
+  {
+    output_grad[i] = (calculated_data[i] + float(10.0e-32)) - (i == label);
+  }
+}
\ No newline at end of file