diff --git a/.gitignore b/.gitignore
index 6803a919e..bca79f043 100644
--- a/.gitignore
+++ b/.gitignore
@@ -70,6 +70,7 @@ test/SBLAT2.SUMM
 test/SBLAT3.SUMM
 test/ZBLAT2.SUMM
 test/ZBLAT3.SUMM
+test/SHBLAT3.SUMM
 test/cblat1
 test/cblat2
 test/cblat3
@@ -79,6 +80,7 @@ test/dblat3
 test/sblat1
 test/sblat2
 test/sblat3
+test/test_shgemm
 test/zblat1
 test/zblat2
 test/zblat3
diff --git a/test/Makefile b/test/Makefile
index 7a873b7e5..45f9821ec 100644
--- a/test/Makefile
+++ b/test/Makefile
@@ -64,9 +64,17 @@ endif
 endif
 endif
 
+ifeq ($(BUILD_HALF),1)
+level3 : test_shgemm sblat3 dblat3 cblat3 zblat3
+else
 level3 : sblat3 dblat3 cblat3 zblat3
+endif
 ifndef CROSS
 	rm -f ?BLAT3.SUMM
+ifeq ($(BUILD_HALF),1)
+	OPENBLAS_NUM_THREADS=1 OMP_NUM_THREADS=1 ./test_shgemm > SHBLAT3.SUMM
+	@$(GREP) -q FATAL SHBLAT3.SUMM && cat SHBLAT3.SUMM || exit 0
+endif
 	OPENBLAS_NUM_THREADS=1 OMP_NUM_THREADS=1 ./sblat3 < ./sblat3.dat
 	@$(GREP) -q FATAL SBLAT3.SUMM && cat SBLAT3.SUMM || exit 0
 	OPENBLAS_NUM_THREADS=1 OMP_NUM_THREADS=1 ./dblat3 < ./dblat3.dat
@@ -78,6 +86,10 @@ ifndef CROSS
 ifdef SMP
 	rm -f ?BLAT3.SUMM
 ifeq ($(USE_OPENMP), 1)
+ifeq ($(BUILD_HALF),1)
+	OMP_NUM_THREADS=2 ./test_shgemm > SHBLAT3.SUMM
+	@$(GREP) -q FATAL SHBLAT3.SUMM && cat SHBLAT3.SUMM || exit 0
+endif
 	OMP_NUM_THREADS=2 ./sblat3 < ./sblat3.dat
 	@$(GREP) -q FATAL SBLAT3.SUMM && cat SBLAT3.SUMM || exit 0
 	OMP_NUM_THREADS=2 ./dblat3 < ./dblat3.dat
@@ -87,6 +99,10 @@ ifeq ($(USE_OPENMP), 1)
 	OMP_NUM_THREADS=2 ./zblat3 < ./zblat3.dat
 	@$(GREP) -q FATAL ZBLAT3.SUMM && cat ZBLAT3.SUMM || exit 0
 else
+ifeq ($(BUILD_HALF),1)
+	OPENBLAS_NUM_THREADS=2 ./test_shgemm > SHBLAT3.SUMM
+	@$(GREP) -q FATAL SHBLAT3.SUMM && cat SHBLAT3.SUMM || exit 0
+endif
 	OPENBLAS_NUM_THREADS=2 ./sblat3 < ./sblat3.dat
 	@$(GREP) -q FATAL SBLAT3.SUMM && cat SBLAT3.SUMM || exit 0
 	OPENBLAS_NUM_THREADS=2 ./dblat3 < ./dblat3.dat
@@ -165,6 +181,11 @@ zblat2 : zblat2.$(SUFFIX) ../$(LIBNAME)
 sblat3 : sblat3.$(SUFFIX) ../$(LIBNAME)
 	$(FC) $(FLDFLAGS) -o sblat3 sblat3.$(SUFFIX) ../$(LIBNAME) $(EXTRALIB) $(CEXTRALIB)
 
+ifeq ($(BUILD_HALF),1)
+test_shgemm : compare_sgemm_shgemm.c ../$(LIBNAME)
+	$(FC) $(FLDFLAGS) -o test_shgemm compare_sgemm_shgemm.c ../$(LIBNAME) $(EXTRALIB) $(CEXTRALIB)
+endif
+
 dblat3 : dblat3.$(SUFFIX) ../$(LIBNAME)
 	$(FC) $(FLDFLAGS) -o dblat3 dblat3.$(SUFFIX) ../$(LIBNAME) $(EXTRALIB) $(CEXTRALIB)
 
@@ -187,7 +208,7 @@ clean:
 	@rm -f *.$(SUFFIX) *.$(PSUFFIX) gmon.$(SUFFIX)ut *.SUMM *.cxml *.exe *.pdb *.dwf \
 	sblat1 dblat1 cblat1 zblat1 \
 	sblat2 dblat2 cblat2 zblat2 \
-	sblat3 dblat3 cblat3 zblat3 \
+	test_shgemm sblat3 dblat3 cblat3 zblat3 \
 	sblat1p dblat1p cblat1p zblat1p \
 	sblat2p dblat2p cblat2p zblat2p \
 	sblat3p dblat3p cblat3p zblat3p \
diff --git a/test/compare_sgemm_shgemm.c b/test/compare_sgemm_shgemm.c
index 978972b24..d5bd84b91 100644
--- a/test/compare_sgemm_shgemm.c
+++ b/test/compare_sgemm_shgemm.c
@@ -26,7 +26,7 @@ USE OF THIS SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
 *****************************************************************************/
 #include <stdio.h>
 #include <stdint.h>
-#include "common.h"
+#include "../common.h"
 #define SGEMM   BLASFUNC(sgemm)
 #define SHGEMM   BLASFUNC(shgemm)
 typedef union
@@ -52,7 +52,7 @@ main (int argc, char *argv[])
   int m, n, k;
   int i, j, l;
   int ret = 0;
-  int loop = 20;
+  int loop = 100;
   char transA = 'N', transB = 'N';
   float alpha = 1.0, beta = 0.0;
   char transa = 'N';
@@ -71,8 +71,8 @@ main (int argc, char *argv[])
 	{
 	  for (int i = 0; i < m; i++)
 	    {
-	      A[j * k + i] = j * 9.0;
-	      B[j * k + i] = i * 2.0;
+	      A[j * k + i] = ((FLOAT) rand() / (FLOAT) RAND_MAX) + 0.5;
+	      B[j * k + i] = ((FLOAT) rand() / (FLOAT) RAND_MAX) + 0.5;
 	      C[j * k + i] = 0;
 	      AA[j * k + i].v = *(uint32_t *) & A[j * k + i] >> 16;
 	      BB[j * k + i].v = *(uint32_t *) & B[j * k + i] >> 16;
@@ -85,11 +85,12 @@ main (int argc, char *argv[])
 	       &m, BB, &k, &beta, CC, &m);
 
       for (i = 0; i < n; i++)
-	for (j = 0; j < m; j++)
-	  for (l = 0; l < k; l++)
-	    if (CC[i * m + j] != C[i * m + j])
-	      ret++;
+        for (j = 0; j < m; j++)
+          for (l = 0; l < k; l++)
+            if (fabs(CC[i * m + j]-C[i * m + j]) > 1.0)
+              ret++;
     }
-  fprintf (stderr, "Return code: %d\n", ret);
+  if (ret != 0)
+    fprintf (stderr, "FATAL ERROR SHGEMM - Return code: %d\n", ret);
   return ret;
 }