diff --git a/onnxruntime/core/providers/openvino/backend_manager.cc b/onnxruntime/core/providers/openvino/backend_manager.cc
index cadeab4cbd4cc..2af414bd359bf 100644
--- a/onnxruntime/core/providers/openvino/backend_manager.cc
+++ b/onnxruntime/core/providers/openvino/backend_manager.cc
@@ -387,6 +387,44 @@ static bool IsModelBF16(const onnxruntime::GraphViewer& graph_viewer) {
   return false;
 }
 
+static bool Is16BitTensor(const onnxruntime::NodeArg* node_arg) {
+  const auto* type_proto = node_arg ? node_arg->TypeAsProto() : nullptr;
+  return type_proto && type_proto->has_tensor_type() &&
+         (type_proto->tensor_type().elem_type() == ONNX_NAMESPACE::TensorProto_DataType_UINT16 ||
+          type_proto->tensor_type().elem_type() == ONNX_NAMESPACE::TensorProto_DataType_INT16);
+}
+
+// Check to see if the graph has Q/DQ nodes with int16 or uint16 quantization
+static bool IsQDQGraphWithUint16OrInt16(const onnxruntime::GraphViewer& graph_viewer) {
+  std::unordered_set<std::string> qdq_ops = {"QuantizeLinear", "DequantizeLinear"};
+  const auto& node_indices = graph_viewer.GetNodesInTopologicalOrder();
+
+  for (size_t i = 0; i < node_indices.size(); i++) {
+    gsl::not_null<const onnxruntime::Node*> node(graph_viewer.GetNode(node_indices[i]));
+
+    if (qdq_ops.find(node->OpType()) != qdq_ops.end()) {
+      const auto& input_defs = node->InputDefs();
+
+      if (node->OpType() == "DequantizeLinear") {
+        // DequantizeLinear: [quantized_input, scale, zero_point] -> [float_output]
+        // Check quantized input tensor and optional zero point
+        if (Is16BitTensor(input_defs.empty() ? nullptr : input_defs[0]) ||
+            (input_defs.size() >= 3 && Is16BitTensor(input_defs[2]))) {
+          return true;
+        }
+      } else if (node->OpType() == "QuantizeLinear") {
+        // QuantizeLinear: [float_input, scale, zero_point] -> [quantized_output]
+        const auto& output_defs = node->OutputDefs();
+        if (Is16BitTensor(output_defs.empty() ? nullptr : output_defs[0]) ||
+            (input_defs.size() >= 3 && Is16BitTensor(input_defs[2]))) {
+          return true;
+        }
+      }
+    }
+  }
+  return false;
+}
+
 static void DumpOpenVINOEPModel([[maybe_unused]] const std::filesystem::path& onnx_model_path_name,
                                 [[maybe_unused]] ONNX_NAMESPACE::ModelProto* model_proto,
                                 [[maybe_unused]] const onnxruntime::Node& fused_node) {
@@ -445,6 +483,10 @@ BackendManager::GetModelProtoFromFusedNode(const onnxruntime::Node& fused_node,
   }
 #endif
 
+  // Check if the graph is QDQ and has int16 or uint16 quantization
+  // If so, we will apply the QDQ scales fix transformation (for GPU device only)
+  bool is_qdq_graph_uint16_or_int16 = IsQDQGraphWithUint16OrInt16(subgraph);
+
   const auto& onnx_model_path_name = subgraph.ModelPath();
   // QDQ stripping enabled only for the NPU and experimentally on the GPU
   if ((session_context_.device_type.find("NPU") != std::string::npos) &&
@@ -458,7 +500,7 @@ BackendManager::GetModelProtoFromFusedNode(const onnxruntime::Node& fused_node,
     ORT_ENFORCE(status.IsOK(), status.ErrorMessage());
     return model_proto;
   } else if ((session_context_.device_type.find("GPU") != std::string::npos) &&
-             enable_ovep_qdq_optimizer) {
+             is_qdq_graph_uint16_or_int16) {
     // Create a copy of the model
     std::unique_ptr<onnxruntime::Model> model;
     Status status = qdq_scales_fix::Transform(subgraph, logger, model);
diff --git a/onnxruntime/core/providers/openvino/ov_versions/data_ops.cc b/onnxruntime/core/providers/openvino/ov_versions/data_ops.cc
index f991e85ebe518..3b25d67b6b376 100644
--- a/onnxruntime/core/providers/openvino/ov_versions/data_ops.cc
+++ b/onnxruntime/core/providers/openvino/ov_versions/data_ops.cc
@@ -557,7 +557,9 @@ bool DataOps::type_is_supported(const NodeArg* node_arg, bool is_initializer) {
 
   auto dtype = type_proto->tensor_type().elem_type();
   // Enable bfloat16 -> float16 on-the-fly conversion
-  if (dtype == ONNX_NAMESPACE::TensorProto_DataType::TensorProto_DataType_BFLOAT16)
+  if (dtype == ONNX_NAMESPACE::TensorProto_DataType::TensorProto_DataType_BFLOAT16 ||
+      dtype == ONNX_NAMESPACE::TensorProto_DataType::TensorProto_DataType_INT16 ||
+      dtype == ONNX_NAMESPACE::TensorProto_DataType::TensorProto_DataType_UINT16)
     return true;
   if (is_initializer) {
     for (auto const& var : supported_types_initializer_) {
@@ -610,9 +612,6 @@ bool DataOps::type_is_supported(const NodeArg* node_arg, bool is_initializer) {
             (var.second == dtype)) {
           return true;
         }
-        // experimentally for GPU and qdq stripping mode allow int16 types
-        if (npu_qdq_optimizer_enabled_ && (dtype == ONNX_NAMESPACE::TensorProto_DataType::TensorProto_DataType_INT16 || dtype == ONNX_NAMESPACE::TensorProto_DataType::TensorProto_DataType_UINT16))
-          return true;
       }
 #ifndef NDEBUG
       if (openvino_ep::backend_utils::IsDebugEnabled()) {
diff --git a/onnxruntime/core/providers/openvino/qdq_transformations/qdq_scales_fix.cpp b/onnxruntime/core/providers/openvino/qdq_transformations/qdq_scales_fix.cpp
index f1ce230387565..3a39152b5d17d 100644
--- a/onnxruntime/core/providers/openvino/qdq_transformations/qdq_scales_fix.cpp
+++ b/onnxruntime/core/providers/openvino/qdq_transformations/qdq_scales_fix.cpp
@@ -3,6 +3,7 @@
 
 #include "qdq_scales_fix.h"
 #include "core/providers/openvino/ov_protobuf_utils.h"
+#include "core/framework/ort_value.h"
 #include "core/framework/float16.h"
 
 #include <fstream>
@@ -904,22 +905,11 @@ Status copy_model(const GraphViewer& src_graph_viewer,
   }
 
   for (auto& [name, tensor_proto] : src_graph.GetAllInitializedTensors()) {
-    dst_graph.AddInitializedTensor(*tensor_proto);
-  }
-
-  for (auto node_arg : src_graph.GetInputsIncludingInitializers()) {
-    auto check_inputs = [node_arg](auto input_node_arg) {
-      return input_node_arg->Name() == node_arg->Name();
-    };
-    if (std::find_if(dst_graph_inputs.begin(), dst_graph_inputs.end(), check_inputs) != dst_graph_inputs.end())
-      continue;
-
-    auto src_tensor_proto = src_graph.GetConstantInitializer(node_arg->Name(), true);
-    if (src_tensor_proto) {
-      auto dst_tensor_proto = onnx::TensorProto::Create();
-      dst_tensor_proto->copy_from(src_tensor_proto);
-      dst_graph.AddInitializedTensor(*dst_tensor_proto);
-    }
+    auto ort_value = OrtValue();
+    if (src_graph.GetOrtValueInitializer(name, ort_value))
+      ORT_RETURN_IF_ERROR(dst_graph.AddInitializedOrtValue(*tensor_proto, ort_value));
+    else
+      dst_graph.AddInitializedTensor(*tensor_proto);
   }
 
   ORT_RETURN_IF_ERROR(dst_graph.Resolve());