diff --git a/test/dynamo/test_misc.py b/test/dynamo/test_misc.py
index 43e79960fff8..3c3a5ae7bb08 100644
--- a/test/dynamo/test_misc.py
+++ b/test/dynamo/test_misc.py
@@ -242,6 +242,67 @@ class MiscTests(torch._inductor.test_case.TestCase):
         self.assertTrue(same(val4, correct1))
         self.assertEqual(counter.frame_count, 3)
 
+    def test_compile_non_infra_inside_compile(self):
+        from torch.utils._python_dispatch import TorchDispatchMode
+
+        backend = torch._dynamo.testing.EagerAndRecordGraphs()
+
+        class YoloMode(TorchDispatchMode):
+            def __torch_dispatch__(self, func, types, args=(), kwargs=None):
+                out = torch.compile(func, backend=backend, fullgraph=True)(
+                    *args, **kwargs
+                )
+                return out
+
+        x = torch.randn(5)
+        with YoloMode():
+            out = torch.add(x, x)
+
+        self.assertEqual(len(backend.graphs), 1)
+
+    def test_compile_non_infra_empty(self):
+        from torch.utils._python_dispatch import TorchDispatchMode
+
+        backend = torch._dynamo.testing.EagerAndRecordGraphs()
+
+        class YoloMode(TorchDispatchMode):
+            def __torch_dispatch__(self, func, types, args=(), kwargs=None):
+                return torch.ops.aten.mul.Tensor(args[0], args[1])
+
+        x = torch.ones(5)
+        with YoloMode():
+            out = torch.compile(torch.add, backend=backend, fullgraph=True)(x, x)
+
+        self.assertEqual(out.sum().item(), 5.0)
+        self.assertEqual(len(backend.graphs), 0)
+
+    def test_compile_non_infra_multiple(self):
+        from torch.utils._python_dispatch import TorchDispatchMode
+
+        backend3 = torch._dynamo.testing.EagerAndRecordGraphs()
+        backend2 = torch._dynamo.testing.EagerAndRecordGraphs()
+        backend = torch._dynamo.testing.EagerAndRecordGraphs()
+
+        class YoloMode2(TorchDispatchMode):
+            def __torch_dispatch__(self, func, types, args=(), kwargs=None):
+                out = torch.compile(func, backend=backend3, fullgraph=True)(
+                    *args, **kwargs
+                )
+                return out
+
+        class YoloMode(TorchDispatchMode):
+            def __torch_dispatch__(self, func, types, args=(), kwargs=None):
+                out = torch.compile(torch.add, backend=backend2, fullgraph=True)(args[0], args[1])
+                return out
+
+        x = torch.ones(5)
+        with YoloMode(), YoloMode2():
+            torch.compile(lambda x, y: torch.add(x, y), fullgraph=True, backend=backend)(x, x)
+
+        self.assertEqual(len(backend2.graphs), 1)
+        self.assertEqual(len(backend3.graphs), 0)
+        self.assertEqual(len(backend.graphs), 0)
+
     def test_dynamo_inside_custom_op(self):
         cnt = torch._dynamo.testing.InductorAndRecordGraphs()
         cnt1 = torch._dynamo.testing.InductorAndRecordGraphs()
diff --git a/torch/_dynamo/convert_frame.py b/torch/_dynamo/convert_frame.py
index cf7392763e6c..173f38cac29d 100644
--- a/torch/_dynamo/convert_frame.py
+++ b/torch/_dynamo/convert_frame.py
@@ -74,8 +74,8 @@ from torch.monitor import _WaitCounter
 from torch.nn.parallel.distributed import DistributedDataParallel
 from torch.utils._python_dispatch import (
     _disable_current_modes,
-    is_in_any_mode_without_ignore_compile_internals,
     is_in_torch_dispatch_mode,
+    any_torch_dispatch_mode_on_stack
 )
 from torch.utils._traceback import CapturedTraceback, format_traceback_short
 
@@ -1940,10 +1940,6 @@ class ConvertFrameProtocol(typing.Protocol):
     ) -> ConvertFrameReturn: ...
 
 
-def should_skip_due_to_torch_dispatch_mode() -> bool:
-    return is_in_any_mode_without_ignore_compile_internals()
-
-
 class CatchErrorsWrapper:
     def __init__(self, callback: ConvertFrameProtocol, hooks: Hooks) -> None:
         functools.wraps(callback)(self)
@@ -1964,13 +1960,15 @@ class CatchErrorsWrapper:
             has_started_execution = frame.f_lasti > first_real_inst_idx(frame.f_code)
         else:
             has_started_execution = frame.f_lasti >= first_real_inst_idx(frame.f_code)
+        
+        should_skip_due_to_torch_dispatch = any_torch_dispatch_mode_on_stack(include_infra_modes=False, respect_ignore_compile_internals=True)
         if (
             # TODO: the first condition is not covered by any test
             has_started_execution
             or is_skipfile
             or config.disable
             or (
-                should_skip_due_to_torch_dispatch_mode()
+                should_skip_due_to_torch_dispatch
                 and not getattr(self._torchdynamo_orig_backend, "_export", False)
             )
         ):
@@ -1979,7 +1977,7 @@ class CatchErrorsWrapper:
                     skip_reason = "traced frame already"
                 elif trace_rules.check(frame.f_code):
                     skip_reason = "in skipfiles"
-                elif is_in_torch_dispatch_mode(include_infra_modes=False):
+                elif should_skip_due_to_torch_dispatch:
                     skip_reason = "non-infra torch dispatch mode present, this is not supported today in torch.compile"
                 else:
                     skip_reason = "dynamo tracing is disabled"
diff --git a/torch/utils/_python_dispatch.py b/torch/utils/_python_dispatch.py
index 7d844cd3f91b..845ce617cffe 100644
--- a/torch/utils/_python_dispatch.py
+++ b/torch/utils/_python_dispatch.py
@@ -48,6 +48,35 @@ def is_in_torch_dispatch_mode(include_infra_modes: bool = True) -> bool:
 def is_in_any_mode_without_ignore_compile_internals() -> bool:
     return _is_in_any_mode_without_ignore_compile_internals
 
+def any_torch_dispatch_mode_on_stack(
+    *, 
+    include_infra_modes=True, 
+    respect_ignore_compile_internals=False, 
+) -> bool:
+    """
+    Check if there are any ambient (non-entered) modes on the stack.
+    Returns True if there are modes that are on the stack but NOT entered.
+    """
+    stack_len = torch._C._len_torch_dispatch_stack()
+
+    for idx in range(stack_len):
+        mode = _get_dispatch_stack_at(idx)
+        print("MODE", mode)
+
+        # Apply filters first
+        if mode.is_infra_mode():
+            if not include_infra_modes:
+                continue
+        if mode.ignore_compile_internals():
+            print("HUUSH")
+            if respect_ignore_compile_internals:
+                continue
+        print("GOT HERE")
+        breakpoint()
+        return True 
+    breakpoint()
+    return False
+
 
 class TorchDispatchMode:
     """