diff --git a/clang/lib/Driver/ToolChains/SYCL.cpp b/clang/lib/Driver/ToolChains/SYCL.cpp
index 001e9a1100256..b7254040db0eb 100644
--- a/clang/lib/Driver/ToolChains/SYCL.cpp
+++ b/clang/lib/Driver/ToolChains/SYCL.cpp
@@ -705,10 +705,14 @@ SYCLToolChain::GetCXXStdlibType(const ArgList &Args) const {
 void SYCLToolChain::AddSYCLIncludeArgs(const clang::driver::Driver &Driver,
                                        const ArgList &DriverArgs,
                                        ArgStringList &CC1Args) {
+  // Add ../include/sycl and ../include (in that order)
   SmallString<128> P(Driver.getInstalledDir());
   llvm::sys::path::append(P, "..");
   llvm::sys::path::append(P, "include");
-  llvm::sys::path::append(P, "sycl");
+  SmallString<128> SYCLP(P);
+  llvm::sys::path::append(SYCLP, "sycl");
+  CC1Args.push_back("-internal-isystem");
+  CC1Args.push_back(DriverArgs.MakeArgString(SYCLP));
   CC1Args.push_back("-internal-isystem");
   CC1Args.push_back(DriverArgs.MakeArgString(P));
 }
diff --git a/clang/test/Driver/sycl-device.cpp b/clang/test/Driver/sycl-device.cpp
index f0df1baa79f54..db0ed87d6260e 100644
--- a/clang/test/Driver/sycl-device.cpp
+++ b/clang/test/Driver/sycl-device.cpp
@@ -6,7 +6,7 @@
 /// Check "-fsycl-is-device" is passed when compiling for device:
 // RUN:   %clang -### -fsycl-device-only %s 2>&1 \
 // RUN:   | FileCheck -check-prefix=CHECK-SYCL-DEV %s
-// CHECK-SYCL-DEV: "-fsycl-is-device"{{.*}} "-internal-isystem" "{{.*}}bin{{[/\\]+}}..{{[/\\]+}}include{{[/\\]+}}sycl"
+// CHECK-SYCL-DEV: "-fsycl-is-device"{{.*}} "-internal-isystem" "{{.*}}bin{{[/\\]+}}..{{[/\\]+}}include{{[/\\]+}}sycl" "-internal-isystem" "{{.*}}bin{{[/\\]+}}..{{[/\\]+}}include"
 
 /// Check that "-Wno-sycl-strict" is set on compiler invocation with "-fsycl"
 /// or "-fsycl-device-only" or both:
diff --git a/clang/test/Driver/sycl-offload.c b/clang/test/Driver/sycl-offload.c
index 23d3347c0005e..724fa88ac403b 100644
--- a/clang/test/Driver/sycl-offload.c
+++ b/clang/test/Driver/sycl-offload.c
@@ -922,3 +922,9 @@
 // CHK-POST-LINK-OPT-LEVEL-O3: sycl-post-link{{.*}} "-O3"
 // CHK-POST-LINK-OPT-LEVEL-Os: sycl-post-link{{.*}} "-Os"
 // CHK-POST-LINK-OPT-LEVEL-Oz: sycl-post-link{{.*}} "-Oz"
+
+// Verify header search dirs are added with -fsycl
+// RUN: %clang -### -fsycl %s 2>&1 | FileCheck %s -check-prefixes=CHECK-HEADER-DIR
+// RUN: %clang_cl -### -fsycl %s 2>&1 | FileCheck %s -check-prefixes=CHECK-HEADER-DIR
+// CHECK-HEADER-DIR: clang{{.*}} "-fsycl-is-device"{{.*}} "-internal-isystem" "{{.*}}bin{{[/\\]+}}..{{[/\\]+}}include{{[/\\]+}}sycl" "-internal-isystem" "{{.*}}bin{{[/\\]+}}..{{[/\\]+}}include"
+// CHECK-HEADER-DIR: clang{{.*}} "-internal-isystem" "{{.*}}bin{{[/\\]+}}..{{[/\\]+}}include{{[/\\]+}}sycl" "-internal-isystem" "{{.*}}bin{{[/\\]+}}..{{[/\\]+}}include"{{.*}} "-fsycl-is-host"
diff --git a/sycl/CMakeLists.txt b/sycl/CMakeLists.txt
index 53bec90a35bb6..7530f2213d236 100644
--- a/sycl/CMakeLists.txt
+++ b/sycl/CMakeLists.txt
@@ -67,7 +67,7 @@ endif()
 # Unlike PACKAGE_VERSION, CLANG_VERSION does not include LLVM_VERSION_SUFFIX.
 set(CLANG_VERSION "${CLANG_VERSION_MAJOR}.${CLANG_VERSION_MINOR}.${CLANG_VERSION_PATCHLEVEL}")
 
-set(SYCL_INCLUDE_DIR "include/sycl")
+set(SYCL_INCLUDE_DIR "include")
 set(SYCL_INCLUDE_BUILD_DIR ${LLVM_BINARY_DIR}/${SYCL_INCLUDE_DIR})
 set(SYCL_INCLUDE_DEPLOY_DIR ${CMAKE_INSTALL_PREFIX}/${SYCL_INCLUDE_DIR})
 
@@ -104,7 +104,7 @@ if( NOT OpenCL_INCLUDE_DIRS )
     UPDATE_DISCONNECTED ${SYCL_EP_OCL_HEADERS_SKIP_AUTO_UPDATE}
     SOURCE_DIR        ${OpenCL_INCLUDE_DIRS}
     CONFIGURE_COMMAND ""
-    BUILD_COMMAND     ${CMAKE_COMMAND} -E copy_directory ${OpenCL_INCLUDE_DIRS}/CL ${SYCL_INCLUDE_BUILD_DIR}/CL
+    BUILD_COMMAND     ${CMAKE_COMMAND} -E copy_directory ${OpenCL_INCLUDE_DIRS}/CL ${SYCL_INCLUDE_BUILD_DIR}/sycl/CL
     INSTALL_COMMAND   ""
     STEP_TARGETS      build
     COMMENT           "Downloading OpenCL headers."
@@ -116,7 +116,7 @@ if( NOT OpenCL_INCLUDE_DIRS )
 else()
   add_custom_target( ocl-headers ALL
     DEPENDS ${OpenCL_INCLUDE_DIRS}
-    COMMAND ${CMAKE_COMMAND} -E copy_directory ${OpenCL_INCLUDE_DIRS}/CL ${SYCL_INCLUDE_BUILD_DIR}/CL
+    COMMAND ${CMAKE_COMMAND} -E copy_directory ${OpenCL_INCLUDE_DIRS}/CL ${SYCL_INCLUDE_BUILD_DIR}/sycl/CL
     COMMENT "Copying OpenCL headers ..."
   )
 endif()
@@ -192,7 +192,7 @@ target_include_directories(OpenCL-Headers
   INTERFACE ${OPENCL_INCLUDE}
 )
 install(DIRECTORY ${OPENCL_INCLUDE}/CL
-  DESTINATION ${SYCL_INCLUDE_DEPLOY_DIR}
+  DESTINATION ${SYCL_INCLUDE_DEPLOY_DIR}/sycl
   COMPONENT opencl-headers
 )
 
@@ -209,11 +209,13 @@ configure_file("${version_header}.in" "${version_header}")
 
 # Copy SYCL headers
 add_custom_target(sycl-headers ALL
-COMMAND ${CMAKE_COMMAND} -E copy_directory ${sycl_inc_dir} ${SYCL_INCLUDE_BUILD_DIR}
+COMMAND ${CMAKE_COMMAND} -E copy_directory ${sycl_inc_dir}/sycl ${SYCL_INCLUDE_BUILD_DIR}/sycl
+COMMAND ${CMAKE_COMMAND} -E copy_directory ${sycl_inc_dir}/CL ${SYCL_INCLUDE_BUILD_DIR}/sycl/CL
 COMMENT "Copying SYCL headers ...")
 
 # Configure SYCL headers
-install(DIRECTORY "${sycl_inc_dir}/." DESTINATION ${SYCL_INCLUDE_DEPLOY_DIR} COMPONENT sycl-headers)
+install(DIRECTORY "${sycl_inc_dir}/sycl" DESTINATION ${SYCL_INCLUDE_DEPLOY_DIR} COMPONENT sycl-headers)
+install(DIRECTORY "${sycl_inc_dir}/CL" DESTINATION ${SYCL_INCLUDE_DEPLOY_DIR}/sycl COMPONENT sycl-headers)
 
 set(SYCL_RT_LIBS sycl)
 if (MSVC)
diff --git a/sycl/test/basic_tests/image_accessor_types.cpp b/sycl/test/basic_tests/image_accessor_types.cpp
index 36e8ca4d790c9..85e731c731192 100644
--- a/sycl/test/basic_tests/image_accessor_types.cpp
+++ b/sycl/test/basic_tests/image_accessor_types.cpp
@@ -1,4 +1,4 @@
-// RUN: not %clangxx -fsyntax-only %s -I %sycl_include 2>&1 | FileCheck %s
+// RUN: not %clangxx -fsyntax-only %s -I %sycl_include/sycl 2>&1 | FileCheck %s
 #include <CL/sycl.hpp>
 #include <iostream>
 
diff --git a/sycl/test/basic_tests/vectors/ctad_fail.cpp b/sycl/test/basic_tests/vectors/ctad_fail.cpp
index 7ef4a121a7532..bdae6b013e62c 100644
--- a/sycl/test/basic_tests/vectors/ctad_fail.cpp
+++ b/sycl/test/basic_tests/vectors/ctad_fail.cpp
@@ -1,4 +1,4 @@
-// RUN: %clangxx -std=c++17 -fsyntax-only -Xclang -verify %s -I %sycl_include -Xclang -verify-ignore-unexpected
+// RUN: %clangxx -std=c++17 -fsyntax-only -Xclang -verify %s -I %sycl_include/sycl -Xclang -verify-ignore-unexpected
 //==--------------- ctad.cpp - SYCL vector CTAD fail test ------------------==//
 //
 // Part of the LLVM Project, under the Apache License v2.0 with LLVM Exceptions.
diff --git a/sycl/test/gdb/accessors.cpp b/sycl/test/gdb/accessors.cpp
index 34ee280350509..8bb37bf4e99c0 100644
--- a/sycl/test/gdb/accessors.cpp
+++ b/sycl/test/gdb/accessors.cpp
@@ -1,4 +1,4 @@
-// RUN: %clangxx -c -fno-color-diagnostics -I %sycl_include -Xclang -ast-dump %s | FileCheck %s
+// RUN: %clangxx -c -fno-color-diagnostics -I %sycl_include/sycl -Xclang -ast-dump %s | FileCheck %s
 // UNSUPPORTED: windows
 #include <CL/sycl/accessor.hpp>
 
diff --git a/sycl/test/gdb/printers.cpp b/sycl/test/gdb/printers.cpp
index 1d7898d5686f9..39336135bc662 100644
--- a/sycl/test/gdb/printers.cpp
+++ b/sycl/test/gdb/printers.cpp
@@ -1,4 +1,4 @@
-// RUN: %clangxx -c -fno-color-diagnostics -I %sycl_include -Xclang -ast-dump %s | FileCheck %s
+// RUN: %clangxx -c -fno-color-diagnostics -I %sycl_include/sycl -Xclang -ast-dump %s | FileCheck %s
 // UNSUPPORTED: windows
 #include <CL/sycl/buffer.hpp>
 #include <CL/sycl/detail/array.hpp>
diff --git a/sycl/test/separate-compile/test.cpp b/sycl/test/separate-compile/test.cpp
index a6e7a91169ca9..a2666b79bf27b 100644
--- a/sycl/test/separate-compile/test.cpp
+++ b/sycl/test/separate-compile/test.cpp
@@ -7,13 +7,13 @@
 // >> host compilation...
 // Driver automatically adds -D_DLL and -D_MT on Windows with -fsycl.
 // Add those defines required for Windows and harmless for Linux.
-// RUN: %clangxx -D_DLL -D_MT -include sycl_ihdr_a.h -g -c %s -o a.o -I %sycl_include -Wno-sycl-strict
+// RUN: %clangxx -D_DLL -D_MT -include sycl_ihdr_a.h -g -c %s -o a.o -I %sycl_include/sycl -Wno-sycl-strict
 //
 // >> ---- compile src2
 // >> device compilation...
 // RUN: %clangxx -DB_CPP=1 -fsycl-device-only -Xclang -fsycl-int-header=sycl_ihdr_b.h %s -c -o b_kernel.bc -Wno-sycl-strict
 // >> host compilation...
-// RUN: %clangxx -DB_CPP=1 -D_DLL -D_MT -include sycl_ihdr_b.h -g -c %s -o b.o -I %sycl_include -Wno-sycl-strict
+// RUN: %clangxx -DB_CPP=1 -D_DLL -D_MT -include sycl_ihdr_b.h -g -c %s -o b.o -I %sycl_include/sycl -Wno-sycl-strict
 //
 // >> ---- bundle .o with .spv
 // >> run bundler