diff --git a/aten/src/ATen/native/cuda/ReduceSumProdKernel.cu b/aten/src/ATen/native/cuda/ReduceSumProdKernel.cu
index aee2961f56c5b5..93ff4272769476 100644
--- a/aten/src/ATen/native/cuda/ReduceSumProdKernel.cu
+++ b/aten/src/ATen/native/cuda/ReduceSumProdKernel.cu
@@ -172,7 +172,7 @@ template <
     typename GeneralDispatcher>
 static void reduce_dispatch(TensorIterator& iter, GeneralDispatcher op) {
   if (iter.dtype() == kHalf) {
-    return OpFunctor<at::Half, float>{}(iter);
+    return OpFunctor<at::Half, at::Half>{}(iter);
   } else if (iter.dtype(1) == kHalf && iter.dtype() == kFloat) {
     // type promotion that does cast and reduction in a single kernel
     return OpFunctor<at::Half, float, float>{}(iter);
diff --git a/c10/util/Half-inl.h b/c10/util/Half-inl.h
index cad9762d4469f9..3ae2d5284f9310 100644
--- a/c10/util/Half-inl.h
+++ b/c10/util/Half-inl.h
@@ -105,7 +105,12 @@ inline __device__ Half __ldg(const Half* ptr) {
 /// Arithmetic
 
 inline C10_HOST_DEVICE Half operator+(const Half& a, const Half& b) {
+#if (defined(__CUDACC__) || defined(__HIPCC__)) && \
+    defined(PYTORCH_ENABLE_NATIVE_HALF)
+  return __half{a} + __half{b};
+#else
   return static_cast<float>(a) + static_cast<float>(b);
+#endif
 }
 
 inline C10_HOST_DEVICE Half operator-(const Half& a, const Half& b) {
diff --git a/cmake/Dependencies.cmake b/cmake/Dependencies.cmake
index 504d6ee2243db1..8fe222abc1fa38 100644
--- a/cmake/Dependencies.cmake
+++ b/cmake/Dependencies.cmake
@@ -1000,6 +1000,10 @@ if(USE_CUDNN)
   target_include_directories(torch::cudnn INTERFACE ${CUDNN_FRONTEND_INCLUDE_DIR})
 endif()
 
+# Note: This variable also affects CUDA as well.
+set(PYTORCH_ENABLE_HALF $ENV{PYTORCH_ENABLE_HALF} CACHE BOOL "Native support for half data type from EnVar." FORCE)
+
+
 # ---[ HIP
 if(USE_ROCM)
   # This prevents linking in the libtinfo from /opt/conda/lib which conflicts with ROCm libtinfo.
@@ -1042,7 +1046,11 @@ if(USE_ROCM)
     list(APPEND HIP_CXX_FLAGS -D__HIP_PLATFORM_AMD__=1)
     list(APPEND HIP_CXX_FLAGS -DCUDA_HAS_FP16=1)
     list(APPEND HIP_CXX_FLAGS -DUSE_ROCM)
-    list(APPEND HIP_CXX_FLAGS -D__HIP_NO_HALF_OPERATORS__=1)
+    if(NOT PYTORCH_ENABLE_HALF)
+      list(APPEND HIP_CXX_FLAGS -D__HIP_NO_HALF_OPERATORS__=1)
+    else()
+      add_definitions(-DPYTORCH_ENABLE_NATIVE_HALF)
+    endif()
     list(APPEND HIP_CXX_FLAGS -D__HIP_NO_HALF_CONVERSIONS__=1)
     list(APPEND HIP_CXX_FLAGS -DTORCH_HIP_VERSION=${TORCH_HIP_VERSION})
     list(APPEND HIP_CXX_FLAGS -Wno-shift-count-negative)
@@ -1369,11 +1377,16 @@ if(NOT INTERN_BUILD_MOBILE)
 
   message(STATUS "Found CUDA with FP16 support, compiling with torch.cuda.HalfTensor")
   string(APPEND CMAKE_CUDA_FLAGS " -DCUDA_HAS_FP16=1"
-                                 " -D__CUDA_NO_HALF_OPERATORS__"
                                  " -D__CUDA_NO_HALF_CONVERSIONS__"
                                  " -D__CUDA_NO_HALF2_OPERATORS__"
                                  " -D__CUDA_NO_BFLOAT16_CONVERSIONS__")
 
+  if(NOT PYTORCH_ENABLE_HALF)
+    string(APPEND CMAKE_CUDA_FLAGS " -D__CUDA_NO_HALF_OPERATORS__")
+  else()
+    add_definitions(-DPYTORCH_ENABLE_NATIVE_HALF)
+  endif()
+
   string(APPEND CMAKE_C_FLAGS_RELEASE " -DNDEBUG")
   string(APPEND CMAKE_CXX_FLAGS_RELEASE " -DNDEBUG")
   if(NOT GENERATOR_IS_MULTI_CONFIG)
diff --git a/setup.py b/setup.py
index ea087c356c1520..0ae7e53cbca1a9 100644
--- a/setup.py
+++ b/setup.py
@@ -197,6 +197,10 @@
 #
 #   BUILD_PYTHON_ONLY
 #      Builds pytorch as a wheel using libtorch.so from a seperate wheel
+#
+#   PYTORCH_ENABLE_HALF
+#      If set to '1' will enable native support for FP16 datatypes in certain functors.
+#      Note: Currently, this is considered experimental and will only affect reductions.
 
 import os
 import pkgutil
@@ -676,6 +680,11 @@ def run(self):
         else:
             report("-- Not using ITT")
 
+        if cmake_cache_vars["PYTORCH_ENABLE_HALF"]:
+            report("-- Using native FP16 support")
+        else:
+            report("-- Not using native FP16 support")
+
         # Do not use clang to compile extensions if `-fstack-clash-protection` is defined
         # in system CFLAGS
         c_flags = str(os.getenv("CFLAGS", ""))