diff --git a/mlir/lib/Dialect/Arith/IR/ArithOps.cpp b/mlir/lib/Dialect/Arith/IR/ArithOps.cpp
index 8a9f223089794..e9545c3146b2f 100644
--- a/mlir/lib/Dialect/Arith/IR/ArithOps.cpp
+++ b/mlir/lib/Dialect/Arith/IR/ArithOps.cpp
@@ -1518,6 +1518,27 @@ LogicalResult arith::TruncIOp::verify() {
 /// can be represented without precision loss.
 OpFoldResult arith::TruncFOp::fold(FoldAdaptor adaptor) {
   auto resElemType = cast<FloatType>(getElementTypeOrSelf(getType()));
+  if (auto extOp = getOperand().getDefiningOp<arith::ExtFOp>()) {
+    Value src = extOp.getIn();
+    auto srcType = cast<FloatType>(getElementTypeOrSelf(src.getType()));
+    auto intermediateType =
+        cast<FloatType>(getElementTypeOrSelf(extOp.getType()));
+    // Check if the srcType is representable in the intermediateType.
+    if (llvm::APFloatBase::isRepresentableBy(
+            srcType.getFloatSemantics(),
+            intermediateType.getFloatSemantics())) {
+      // truncf(extf(a)) -> truncf(a)
+      if (srcType.getWidth() > resElemType.getWidth()) {
+        setOperand(src);
+        return getResult();
+      }
+
+      // truncf(extf(a)) -> a
+      if (srcType == resElemType)
+        return src;
+    }
+  }
+
   const llvm::fltSemantics &targetSemantics = resElemType.getFloatSemantics();
   return constFoldCastOp<FloatAttr, FloatAttr>(
       adaptor.getOperands(), getType(),
diff --git a/mlir/test/Dialect/Arith/canonicalize.mlir b/mlir/test/Dialect/Arith/canonicalize.mlir
index e3750bb020cad..f0b2731707d18 100644
--- a/mlir/test/Dialect/Arith/canonicalize.mlir
+++ b/mlir/test/Dialect/Arith/canonicalize.mlir
@@ -714,6 +714,45 @@ func.func @extFPVectorConstant() -> vector<2xf128> {
   return %0 : vector<2xf128>
 }
 
+// CHECK-LABEL: @truncExtf
+//       CHECK-NOT:  truncf
+//       CHECK:   return  %arg0
+func.func @truncExtf(%arg0: f32) -> f32 {
+  %extf = arith.extf %arg0 : f32 to f64
+  %trunc = arith.truncf %extf : f64 to f32
+  return %trunc : f32
+}
+
+// CHECK-LABEL: @truncExtf1
+//       CHECK-NOT:  truncf
+//       CHECK:   return  %arg0
+func.func @truncExtf1(%arg0: bf16) -> bf16 {
+  %extf = arith.extf %arg0 : bf16 to f32
+  %trunc = arith.truncf %extf : f32 to bf16
+  return %trunc : bf16
+}
+
+// CHECK-LABEL: @truncExtf2
+//       CHECK:  %[[ARG0:.+]]: bf16
+//       CHECK:  %[[EXTF:.*]] = arith.extf %[[ARG0:.+]] : bf16 to f32
+//       CHECK:  %[[TRUNCF:.*]] = arith.truncf %[[EXTF:.*]] : f32 to f16
+//       CHECK:   return  %[[TRUNCF:.*]]
+func.func @truncExtf2(%arg0: bf16) -> f16 {
+  %extf = arith.extf %arg0 : bf16 to f32
+  %trunc = arith.truncf %extf : f32 to f16
+  return %trunc : f16
+}
+
+// CHECK-LABEL: @truncExtf3
+//       CHECK:  %[[ARG0:.+]]: f32
+//       CHECK:  %[[CST:.*]] = arith.truncf %[[ARG0:.+]] : f32 to f16
+//       CHECK:   return  %[[CST:.*]]
+func.func @truncExtf3(%arg0: f32) -> f16 {
+  %extf = arith.extf %arg0 : f32 to f64
+  %truncf = arith.truncf %extf : f64 to f16
+  return %truncf : f16
+}
+
 // TODO: We should also add a test for not folding arith.extf on information loss.
 // This may happen when extending f8E5M2FNUZ to f16.