diff --git a/mlir/lib/Dialect/SPIRV/Transforms/UpdateVCEPass.cpp b/mlir/lib/Dialect/SPIRV/Transforms/UpdateVCEPass.cpp
index 6a9b951ca61d6..9b1c84ee66156 100644
--- a/mlir/lib/Dialect/SPIRV/Transforms/UpdateVCEPass.cpp
+++ b/mlir/lib/Dialect/SPIRV/Transforms/UpdateVCEPass.cpp
@@ -95,6 +95,13 @@ static LogicalResult checkAndUpdateCapabilityRequirements(
   return success();
 }
 
+static void addAllImpliedCapabilities(SetVector<spirv::Capability> &caps) {
+  for (spirv::Capability cap : caps) {
+    ArrayRef<spirv::Capability> impliedCaps = getDirectImpliedCapabilities(cap);
+    caps.insert_range(impliedCaps);
+  }
+}
+
 void UpdateVCEPass::runOnOperation() {
   spirv::ModuleOp module = getOperation();
 
@@ -168,6 +175,8 @@ void UpdateVCEPass::runOnOperation() {
         return WalkResult::interrupt();
     }
 
+    addAllImpliedCapabilities(deducedCapabilities);
+
     return WalkResult::advance();
   });
 
diff --git a/mlir/test/Dialect/SPIRV/Transforms/vce-deduction.mlir b/mlir/test/Dialect/SPIRV/Transforms/vce-deduction.mlir
index 2b237665ffc4a..d657633665876 100644
--- a/mlir/test/Dialect/SPIRV/Transforms/vce-deduction.mlir
+++ b/mlir/test/Dialect/SPIRV/Transforms/vce-deduction.mlir
@@ -7,7 +7,7 @@
 // Test deducing minimal version.
 // spirv.IAdd is available from v1.0.
 
-// CHECK: requires #spirv.vce<v1.0, [Shader], []>
+// CHECK: requires #spirv.vce<v1.0, [Shader, Matrix], []>
 spirv.module Logical GLSL450 attributes {
   spirv.target_env = #spirv.target_env<
     #spirv.vce<v1.5, [Shader], []>, #spirv.resource_limits<>>
@@ -21,7 +21,7 @@ spirv.module Logical GLSL450 attributes {
 // Test deducing minimal version.
 // spirv.GroupNonUniformBallot is available since v1.3.
 
-// CHECK: requires #spirv.vce<v1.3, [GroupNonUniformBallot, Shader], []>
+// CHECK: requires #spirv.vce<v1.3, [GroupNonUniformBallot, GroupNonUniform, Shader, Matrix], []>
 spirv.module Logical GLSL450 attributes {
   spirv.target_env = #spirv.target_env<
     #spirv.vce<v1.5, [Shader, GroupNonUniformBallot], []>, #spirv.resource_limits<>>
@@ -32,7 +32,7 @@ spirv.module Logical GLSL450 attributes {
   }
 }
 
-// CHECK: requires #spirv.vce<v1.4, [Shader], []>
+// CHECK: requires #spirv.vce<v1.4, [Shader, Matrix], []>
 spirv.module Logical GLSL450 attributes {
   spirv.target_env = #spirv.target_env<#spirv.vce<v1.6, [Shader], []>, #spirv.resource_limits<>>
 } {
@@ -48,7 +48,7 @@ spirv.module Logical GLSL450 attributes {
 
 // Test minimal capabilities.
 
-// CHECK: requires #spirv.vce<v1.0, [Shader], []>
+// CHECK: requires #spirv.vce<v1.0, [Shader, Matrix], []>
 spirv.module Logical GLSL450 attributes {
   spirv.target_env = #spirv.target_env<
     #spirv.vce<v1.0, [Shader, Float16, Float64, Int16, Int64, VariablePointers], []>, #spirv.resource_limits<>>
@@ -61,10 +61,10 @@ spirv.module Logical GLSL450 attributes {
 
 // Test Physical Storage Buffers are deduced correctly.
 
-// CHECK: spirv.module PhysicalStorageBuffer64 GLSL450 requires #spirv.vce<v1.0, [PhysicalStorageBufferAddresses, Shader], [SPV_EXT_physical_storage_buffer]>
+// CHECK: spirv.module PhysicalStorageBuffer64 GLSL450 requires #spirv.vce<v1.0, [PhysicalStorageBufferAddresses, Shader, Matrix], [SPV_EXT_physical_storage_buffer]>
 spirv.module PhysicalStorageBuffer64 GLSL450 attributes {
   spirv.target_env = #spirv.target_env<
-    #spirv.vce<v1.0, [Shader, PhysicalStorageBufferAddresses], [SPV_EXT_physical_storage_buffer]>, #spirv.resource_limits<>>
+    #spirv.vce<v1.0, [PhysicalStorageBufferAddresses], [SPV_EXT_physical_storage_buffer]>, #spirv.resource_limits<>>
 } {
   spirv.func @physical_ptr(%val : !spirv.ptr<f32, PhysicalStorageBuffer> { spirv.decoration = #spirv.decoration<Aliased> }) "None" {
     spirv.Return
@@ -74,7 +74,7 @@ spirv.module PhysicalStorageBuffer64 GLSL450 attributes {
 // Test deducing implied capability.
 // AtomicStorage implies Shader.
 
-// CHECK: requires #spirv.vce<v1.0, [Shader], []>
+// CHECK: requires #spirv.vce<v1.0, [Shader, Matrix], []>
 spirv.module Logical GLSL450 attributes {
   spirv.target_env = #spirv.target_env<
     #spirv.vce<v1.0, [AtomicStorage], []>, #spirv.resource_limits<>>
@@ -95,7 +95,7 @@ spirv.module Logical GLSL450 attributes {
 // * GroupNonUniformArithmetic
 // * GroupNonUniformBallot
 
-// CHECK: requires #spirv.vce<v1.3, [GroupNonUniformArithmetic, Shader], []>
+// CHECK: requires #spirv.vce<v1.3, [GroupNonUniformArithmetic, GroupNonUniform, Shader, Matrix], []>
 spirv.module Logical GLSL450 attributes {
   spirv.target_env = #spirv.target_env<
     #spirv.vce<v1.3, [Shader, GroupNonUniformArithmetic], []>, #spirv.resource_limits<>>
@@ -106,7 +106,7 @@ spirv.module Logical GLSL450 attributes {
   }
 }
 
-// CHECK: requires #spirv.vce<v1.3, [GroupNonUniformClustered, GroupNonUniformBallot, Shader], []>
+// CHECK: requires #spirv.vce<v1.3, [GroupNonUniformClustered, GroupNonUniformBallot, GroupNonUniform, Shader, Matrix], []>
 spirv.module Logical GLSL450 attributes {
   spirv.target_env = #spirv.target_env<
     #spirv.vce<v1.3, [Shader, GroupNonUniformClustered, GroupNonUniformBallot], []>, #spirv.resource_limits<>>
@@ -120,7 +120,7 @@ spirv.module Logical GLSL450 attributes {
 // Test type required capabilities
 
 // Using 8-bit integers in non-interface storage class requires Int8.
-// CHECK: requires #spirv.vce<v1.0, [Int8, Shader], []>
+// CHECK: requires #spirv.vce<v1.0, [Int8, Shader, Matrix], []>
 spirv.module Logical GLSL450 attributes {
   spirv.target_env = #spirv.target_env<
     #spirv.vce<v1.3, [Shader, Int8], []>, #spirv.resource_limits<>>
@@ -132,7 +132,7 @@ spirv.module Logical GLSL450 attributes {
 }
 
 // Using 16-bit floats in non-interface storage class requires Float16.
-// CHECK: requires #spirv.vce<v1.0, [Float16, Shader], []>
+// CHECK: requires #spirv.vce<v1.0, [Float16, Shader, Matrix], []>
 spirv.module Logical GLSL450 attributes {
   spirv.target_env = #spirv.target_env<
     #spirv.vce<v1.3, [Shader, Float16], []>, #spirv.resource_limits<>>
@@ -144,7 +144,7 @@ spirv.module Logical GLSL450 attributes {
 }
 
 // Using 16-element vectors requires Vector16.
-// CHECK: requires #spirv.vce<v1.0, [Vector16, Shader], []>
+// CHECK: requires #spirv.vce<v1.0, [Vector16, Kernel, Shader, Matrix], []>
 spirv.module Logical GLSL450 attributes {
   spirv.target_env = #spirv.target_env<
     #spirv.vce<v1.3, [Shader, Vector16], []>, #spirv.resource_limits<>>
@@ -162,7 +162,7 @@ spirv.module Logical GLSL450 attributes {
 // Test deducing minimal extensions.
 // spirv.KHR.SubgroupBallot requires the SPV_KHR_shader_ballot extension.
 
-// CHECK: requires #spirv.vce<v1.0, [SubgroupBallotKHR, Shader], [SPV_KHR_shader_ballot]>
+// CHECK: requires #spirv.vce<v1.0, [SubgroupBallotKHR, Shader, Matrix], [SPV_KHR_shader_ballot]>
 spirv.module Logical GLSL450 attributes {
   spirv.target_env = #spirv.target_env<
     #spirv.vce<v1.0, [Shader, SubgroupBallotKHR],
@@ -193,7 +193,7 @@ spirv.module Logical Vulkan attributes {
 
 // Using 8-bit integers in interface storage class requires additional
 // extensions and capabilities.
-// CHECK: requires #spirv.vce<v1.0, [StorageBuffer16BitAccess, Shader, Int16], [SPV_KHR_16bit_storage, SPV_KHR_storage_buffer_storage_class]>
+// CHECK: requires #spirv.vce<v1.0, [StorageBuffer16BitAccess, Shader, Int16, Matrix], [SPV_KHR_16bit_storage, SPV_KHR_storage_buffer_storage_class]>
 spirv.module Logical GLSL450 attributes {
   spirv.target_env = #spirv.target_env<
     #spirv.vce<v1.3, [Shader, StorageBuffer16BitAccess, Int16], []>, #spirv.resource_limits<>>
@@ -208,7 +208,7 @@ spirv.module Logical GLSL450 attributes {
 // Complicated nested types
 // * Buffer requires ImageBuffer or SampledBuffer.
 // * Rg32f requires StorageImageExtendedFormats.
-// CHECK: requires #spirv.vce<v1.0, [UniformAndStorageBuffer8BitAccess, StorageUniform16, Int64, Shader, ImageBuffer, StorageImageExtendedFormats], [SPV_KHR_8bit_storage, SPV_KHR_16bit_storage]>
+// CHECK: requires #spirv.vce<v1.0, [UniformAndStorageBuffer8BitAccess, StorageUniform16, Int64, Shader, StorageBuffer8BitAccess, StorageBuffer16BitAccess, Matrix, ImageBuffer, StorageImageExtendedFormats, SampledBuffer], [SPV_KHR_8bit_storage, SPV_KHR_16bit_storage]>
 spirv.module Logical GLSL450 attributes {
   spirv.target_env = #spirv.target_env<
     #spirv.vce<v1.5, [Shader, UniformAndStorageBuffer8BitAccess, StorageBuffer16BitAccess, StorageUniform16, Int16, Int64, ImageBuffer, StorageImageExtendedFormats], []>,
@@ -219,7 +219,7 @@ spirv.module Logical GLSL450 attributes {
 }
 
 // Using bfloat16 requires BFloat16TypeKHR capability and SPV_KHR_bfloat16 extension.
-// CHECK: requires #spirv.vce<v1.0, [StorageBuffer16BitAccess, Shader, BFloat16TypeKHR], [SPV_KHR_bfloat16, SPV_KHR_16bit_storage, SPV_KHR_storage_buffer_storage_class]>
+// CHECK: requires #spirv.vce<v1.0, [StorageBuffer16BitAccess, Shader, BFloat16TypeKHR, Matrix], [SPV_KHR_bfloat16, SPV_KHR_16bit_storage, SPV_KHR_storage_buffer_storage_class]>
 spirv.module Logical GLSL450 attributes {
   spirv.target_env = #spirv.target_env<
     #spirv.vce<v1.0, [Shader, StorageBuffer16BitAccess, BFloat16TypeKHR], [SPV_KHR_bfloat16, SPV_KHR_16bit_storage, SPV_KHR_storage_buffer_storage_class]>,