diff --git a/jax_scaled_arithmetics/lax/scaled_ops.py b/jax_scaled_arithmetics/lax/scaled_ops.py
index b0548a9..a2d00c4 100644
--- a/jax_scaled_arithmetics/lax/scaled_ops.py
+++ b/jax_scaled_arithmetics/lax/scaled_ops.py
@@ -60,6 +60,12 @@ def scaled_convert_element_type(A: ScaledArray, new_dtype: DTypeLike, weak_type:
     return ScaledArray(lax.convert_element_type(A.data, new_dtype=new_dtype), A.scale)
 
 
+@core.register_scaled_lax_op
+def scaled_reduce_precision(A: ScaledArray, exponent_bits: int, mantissa_bits: int) -> ScaledArray:
+    # Applying precision reduction only data term.
+    return ScaledArray(lax.reduce_precision(A.data, exponent_bits=exponent_bits, mantissa_bits=mantissa_bits), A.scale)
+
+
 @core.register_scaled_lax_op
 def scaled_concatenate(operands: Sequence[ScaledArray], dimension: int) -> ScaledArray:
     # TODO: inputs checking (dtype and cie).
diff --git a/tests/lax/test_scaled_ops.py b/tests/lax/test_scaled_ops.py
index 42cb6e9..2dfe9b5 100644
--- a/tests/lax/test_scaled_ops.py
+++ b/tests/lax/test_scaled_ops.py
@@ -20,6 +20,7 @@
     scaled_min,
     scaled_mul,
     scaled_neg,
+    scaled_reduce_precision,
     scaled_reshape,
     scaled_select_n,
     scaled_slice,
@@ -70,6 +71,14 @@ def test__scaled_transpose__proper_scaling(self):
         assert z.scale == x.scale
         npt.assert_array_almost_equal(z.data, x.data.T)
 
+    def test__scaled_reduce_precision__proper_result(self):
+        x = scaled_array(self.rs.rand(3, 5), 2, dtype=np.float16)
+        # Reduction to pseudo FP8 format.
+        z = scaled_reduce_precision(x, exponent_bits=4, mantissa_bits=3)
+        assert isinstance(z, ScaledArray)
+        assert z.scale == x.scale
+        npt.assert_array_almost_equal(z.data, lax.reduce_precision(x.data, exponent_bits=4, mantissa_bits=3))
+
     def test__scaled_neg__proper_scaling(self):
         x = scaled_array(self.rs.rand(3, 5), 2, dtype=np.float32)
         z = scaled_neg(x)