diff --git a/clients/common/client_utility.cpp b/clients/common/client_utility.cpp
index a077dd20e..01342a3c1 100644
--- a/clients/common/client_utility.cpp
+++ b/clients/common/client_utility.cpp
@@ -382,10 +382,30 @@ rocblas_local_handle::rocblas_local_handle()
 }
 
 rocblas_local_handle::rocblas_local_handle(const Arguments& arg)
-    : rocblas_local_handle()
 {
+    if(arg.use_hipblaslt >= 0)
+    {
+        auto hipblaslt_env = getenv("ROCBLAS_USE_HIPBLASLT");
+        if(hipblaslt_env)
+            m_hipblaslt_saved_status = std::string(hipblaslt_env);
+        m_hipblaslt_env_set = true;
+        setenv("ROCBLAS_USE_HIPBLASLT", std::to_string(arg.use_hipblaslt).c_str(), true);
+    }
+
+    auto status = rocblas_create_handle(&m_handle);
+    if(status != rocblas_status_success)
+        throw std::runtime_error(rocblas_status_to_string(status));
+
+#ifdef GOOGLE_TEST
+    if(t_set_stream_callback)
+    {
+        (*t_set_stream_callback)(m_handle);
+        t_set_stream_callback.reset();
+    }
+#endif
+
     // Set the atomics mode
-    auto status = rocblas_set_atomics_mode(m_handle, arg.atomics_mode);
+    status = rocblas_set_atomics_mode(m_handle, arg.atomics_mode);
 
     // The check_numerics mode conditional defeat with "rocblas_check_numerics_mode_no_check"
     // Defeat check numerics when initializing any data with NaN with due to alpha or beta having NaN flags,
@@ -438,6 +458,11 @@ rocblas_local_handle::~rocblas_local_handle()
     if(m_memory)
         (hipFree)(m_memory);
 
+    if(m_hipblaslt_env_set)
+    {
+        setenv("ROCBLAS_USE_HIPBLASLT", m_hipblaslt_saved_status.c_str(), true);
+    }
+
     rocblas_destroy_handle(m_handle);
 }
 
diff --git a/clients/gtest/gemm_gtest.yaml b/clients/gtest/gemm_gtest.yaml
index a3a7173c8..4a0b1843b 100644
--- a/clients/gtest/gemm_gtest.yaml
+++ b/clients/gtest/gemm_gtest.yaml
@@ -3988,6 +3988,16 @@ Tests:
   use_hipblaslt: 1
   os_flags: LINUX
 
+- name: non_hipblaslt_f16
+  category: pre_checkin
+  function: gemm_ex
+  precision: *hpa_half_precision
+  transA_transB: *transA_transB_range
+  alpha_beta: *alpha_beta_range
+  matrix_size: *medium_matrix_size_range
+  use_hipblaslt: 0
+  os_flags: LINUX
+
 
 # Commented out as the category known_bug has currently no good purpose
 # This is category known_bug until the sizes are supported by Tensile,
diff --git a/clients/include/client_utility.hpp b/clients/include/client_utility.hpp
index 782fe1064..b4ca613e6 100644
--- a/clients/include/client_utility.hpp
+++ b/clients/include/client_utility.hpp
@@ -116,6 +116,8 @@ class rocblas_local_handle
     void*          m_memory{nullptr};
     hipStream_t    m_graph_stream{nullptr};
     hipStream_t    m_old_stream{nullptr};
+    std::string    m_hipblaslt_saved_status = "";
+    bool           m_hipblaslt_env_set{false};
 
     void rocblas_stream_begin_capture();
     void rocblas_stream_end_capture();
diff --git a/clients/include/type_dispatch.hpp b/clients/include/type_dispatch.hpp
index 43e567084..45def8c4d 100644
--- a/clients/include/type_dispatch.hpp
+++ b/clients/include/type_dispatch.hpp
@@ -1,5 +1,5 @@
 /* ************************************************************************
- * Copyright (C) 2018-2024 Advanced Micro Devices, Inc. All rights reserved.
+ * Copyright (C) 2018-2025 Advanced Micro Devices, Inc. All rights reserved.
  *
  * Permission is hereby granted, free of charge, to any person obtaining a copy
  * of this software and associated documentation files (the "Software"), to deal
@@ -440,20 +440,6 @@ auto rocblas_gemv_batched_and_strided_batched_dispatch(const Arguments& arg)
 template <template <typename...> class TEST>
 auto rocblas_gemm_dispatch(const Arguments& arg)
 {
-    int setenv_status;
-    if(arg.use_hipblaslt != -1)
-    {
-        setenv_status
-            = setenv("ROCBLAS_USE_HIPBLASLT", std::to_string(arg.use_hipblaslt).c_str(), true);
-    }
-    else
-    {
-        setenv_status = unsetenv("ROCBLAS_USE_HIPBLASLT");
-    }
-#ifdef GOOGLE_TEST
-    EXPECT_EQ(setenv_status, 0);
-#endif
-
     const auto Ti = arg.a_type, To = arg.c_type, Tc = arg.compute_type;
     const auto Tc_new = arg.composite_compute_type;