diff --git a/compiler/luci/service/src/Nodes/CircleReshape.cpp b/compiler/luci/service/src/Nodes/CircleReshape.cpp
index 0450ba8358d..e45655c54c9 100644
--- a/compiler/luci/service/src/Nodes/CircleReshape.cpp
+++ b/compiler/luci/service/src/Nodes/CircleReshape.cpp
@@ -120,8 +120,7 @@ loco::TensorShape Algorithm::visit(const luci::CircleReshape *node)
       // for non-existing `shape`, we can use `newShape` if it's valid
       auto new_shape = node->newShape();
       auto rank = new_shape->rank();
-      auto shape_dummy = dynamic_cast<luci::CircleOutputDummy *>(node->shape());
-      if (shape_dummy && rank > 0)
+      if (rank > 0)
       {
         is_static_shape = true;
         shape_by_input.rank(rank);
@@ -154,7 +153,14 @@ loco::TensorShape Algorithm::visit(const luci::CircleReshape *node)
 
     for (uint32_t axis = 0; axis < shape_by_attr.rank(); ++axis)
     {
-      shape_by_attr.dim(axis) = node->newShape()->dim(axis);
+      if (node->newShape()->dim(axis) > 0)
+      {
+        shape_by_attr.dim(axis) = node->newShape()->dim(axis);
+      }
+      else
+      {
+        shape_by_attr.dim(axis).unset(); // unset means unknown dimension
+      }
     }
   }
 
diff --git a/compiler/luci/service/src/Nodes/CircleReshape.test.cpp b/compiler/luci/service/src/Nodes/CircleReshape.test.cpp
index 653cb690d18..a5a4f0532d9 100644
--- a/compiler/luci/service/src/Nodes/CircleReshape.test.cpp
+++ b/compiler/luci/service/src/Nodes/CircleReshape.test.cpp
@@ -197,3 +197,39 @@ TEST(ShapeRuleTest, reshape_by_newShape)
   ASSERT_EQ(2, output_shape.dim(0).value());
   ASSERT_EQ(12, output_shape.dim(1).value());
 }
+
+TEST(ShapeRuleTest, reshape_by_newShape_dynamic)
+{
+  auto g = loco::make_graph();
+  auto node_reshape = g->nodes()->create<luci::CircleReshape>();
+  auto tensor_input = g->nodes()->create<luci::CircleInput>();
+  auto target_shape = g->nodes()->create<luci::CircleInput>();
+
+  tensor_input->dtype(loco::DataType::S32);
+  tensor_input->shape({2, 3, 4});
+  tensor_input->shape_status(luci::ShapeStatus::VALID);
+
+  target_shape->dtype(loco::DataType::S32);
+  target_shape->rank(1);
+  target_shape->shape_status(luci::ShapeStatus::VALID);
+
+  node_reshape->tensor(tensor_input);
+  node_reshape->shape(target_shape);
+
+  // reshape to {dynamic, 4, dynamic}
+  node_reshape->newShape()->rank(3);
+  node_reshape->newShape()->dim(0) = -1;
+  node_reshape->newShape()->dim(1) = 2;
+  node_reshape->newShape()->dim(2) = -1;
+
+  loco::TensorShape output_shape;
+  luci::sinf::Rule shape_inf_rule;
+
+  ASSERT_TRUE(shape_inf_rule.infer(node_reshape, output_shape));
+
+  ASSERT_EQ(3, output_shape.rank());
+  ASSERT_FALSE(output_shape.dim(0).known());
+  ASSERT_TRUE(output_shape.dim(1).known());
+  ASSERT_EQ(2, output_shape.dim(1).value());
+  ASSERT_FALSE(output_shape.dim(2).known());
+}