diff --git a/easybuild/easyblocks/d/deepspeed.py b/easybuild/easyblocks/d/deepspeed.py
new file mode 100644
index 0000000000..55e9db3f97
--- /dev/null
+++ b/easybuild/easyblocks/d/deepspeed.py
@@ -0,0 +1,105 @@
+##
+# Copyright 2009-2024 Ghent University
+#
+# This file is part of EasyBuild,
+# originally created by the HPC team of Ghent University (http://ugent.be/hpc/en),
+# with support of Ghent University (http://ugent.be/hpc),
+# the Flemish Supercomputer Centre (VSC) (https://www.vscentrum.be),
+# Flemish Research Foundation (FWO) (http://www.fwo.be/en)
+# and the Department of Economy, Science and Innovation (EWI) (http://www.ewi-vlaanderen.be/en).
+#
+# https://github.com/easybuilders/easybuild
+#
+# EasyBuild is free software: you can redistribute it and/or modify
+# it under the terms of the GNU General Public License as published by
+# the Free Software Foundation v2.
+#
+# EasyBuild is distributed in the hope that it will be useful,
+# but WITHOUT ANY WARRANTY; without even the implied warranty of
+# MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+# GNU General Public License for more details.
+#
+# You should have received a copy of the GNU General Public License
+# along with EasyBuild.  If not, see <http://www.gnu.org/licenses/>.
+##
+"""
+EasyBuild support for building and installing DeepSpeed, implemented as an easyblock
+
+author: Viktor Rehnberg (Chalmers University of Technology)
+"""
+from easybuild.easyblocks.generic.pythonpackage import PythonPackage
+from easybuild.framework.easyconfig import CUSTOM
+from easybuild.tools.build_log import EasyBuildError
+from easybuild.tools.config import build_option
+import easybuild.tools.environment as env
+
+
+class EB_DeepSpeed(PythonPackage):
+    """Custom easyblock for DeepSpeed"""
+
+    @staticmethod
+    def extra_options():
+        """Change some defaults for easyconfig parameters."""
+        extra_vars = PythonPackage.extra_options()
+        extra_vars['use_pip'][0] = True
+        extra_vars['download_dep_fail'][0] = True
+        extra_vars['sanity_pip_check'][0] = True
+
+        # Add DeepSpeed specific vars
+        extra_vars['ds_build_ops_to_skip'] = [[], "For <val> in list will set DS_BUILD_<val>=0 (default: [])", CUSTOM]
+        return extra_vars
+
+    def __init__(self, *args, **kwargs):
+        """Initialize DeepSpeed easyblock."""
+        super().__init__(*args, **kwargs)
+
+        dep_names = set(dep['name'] for dep in self.cfg.dependencies())
+
+        # enable building with GPU support if CUDA is included as dependency
+        if 'CUDA' in dep_names:
+            self.with_cuda = True
+        else:
+            self.with_cuda = False
+
+    @property
+    def cuda_compute_capabilities(self):
+        return self.cfg['cuda_compute_capabilities'] or build_option('cuda_compute_capabilities')
+
+    def configure_step(self):
+        """Set up DeepSpeed config"""
+        # require that PyTorch is listed as dependency
+        dep_names = set(dep['name'] for dep in self.cfg.dependencies())
+        if 'PyTorch' not in dep_names:
+            raise EasyBuildError('PyTorch not found as a dependency')
+
+        if self.with_cuda:
+            # https://github.com/microsoft/DeepSpeed/issues/3358
+            env.setvar('NVCC_PREPEND_FLAGS', '--forward-unknown-opts')
+
+            if self.cuda_compute_capabilities:
+                # specify CUDA compute capabilities via $TORCH_CUDA_ARCH_LIST
+                env.setvar('TORCH_CUDA_ARCH_LIST', ';'.join(self.cuda_compute_capabilities))
+
+        # By default prebuild all ops with a few exceptions
+        # http://www.deepspeed.ai/tutorials/advanced-install/#pre-install-deepspeed-ops
+        # > DeepSpeed will only install any ops that are compatible with your machine
+        env.setvar('DS_BUILD_OPS', '1')
+
+        # Some may be problematic for different reasons, these are specified in the easyconfig
+        for opt in self.cfg['ds_build_ops_to_skip']:
+            env.setvar('DS_BUILD_{}'.format(opt), '0')
+
+        super().configure_step()
+
+    def sanity_check_step(self):
+        '''Custom sanity check for DeepSpeed.'''
+        custom_paths = {
+            'files': ['bin/deepspeed'],
+            'dirs': [],
+        }
+        custom_commands = [
+            'deepspeed --help',
+            'python -m deepspeed.env_report',
+            '[ "$(ds_report | grep -c "\\[NO\\]")" -eq "{:d}" ]'.format(len(self.cfg['ds_build_ops_to_skip']))
+        ]
+        return super().sanity_check_step(custom_paths=custom_paths, custom_commands=custom_commands)
diff --git a/easybuild/easyblocks/generic/pythonpackage.py b/easybuild/easyblocks/generic/pythonpackage.py
index eae50cae7c..93142dbb9e 100644
--- a/easybuild/easyblocks/generic/pythonpackage.py
+++ b/easybuild/easyblocks/generic/pythonpackage.py
@@ -861,8 +861,13 @@ def test_step(self, return_output_ec=False):
                 # print Python search path (just debugging purposes)
                 run_cmd("%s -c 'import sys; print(sys.path)'" % self.python_cmd, verbose=False, trace=False)
 
+                abs_bindirs = [os.path.join(actual_installdir, 'bin')]
                 abs_pylibdirs = [os.path.join(actual_installdir, pylibdir) for pylibdir in self.all_pylibdirs]
-                extrapath = "export PYTHONPATH=%s &&" % os.pathsep.join(abs_pylibdirs + ['$PYTHONPATH'])
+                extrapath = "export PATH={path} PYTHONPATH={pythonpath} LD_LIBRARY_PATH={ld_library_path} &&".format(
+                    path=os.pathsep.join(abs_bindirs + ['$PATH']),
+                    pythonpath=os.pathsep.join(abs_pylibdirs + ['$PYTHONPATH']),
+                    ld_library_path=os.pathsep.join(abs_pylibdirs + ['$LD_LIBRARY_PATH']),
+                )
 
                 cmd = self.compose_install_command(test_installdir, extrapath=extrapath)
                 run_cmd(cmd, log_all=True, simple=True, verbose=False)