diff --git a/backends-velox/src/main/scala/org/apache/gluten/backendsapi/velox/VeloxBackend.scala b/backends-velox/src/main/scala/org/apache/gluten/backendsapi/velox/VeloxBackend.scala
index 0238508d9699..9c1089a35bea 100644
--- a/backends-velox/src/main/scala/org/apache/gluten/backendsapi/velox/VeloxBackend.scala
+++ b/backends-velox/src/main/scala/org/apache/gluten/backendsapi/velox/VeloxBackend.scala
@@ -491,7 +491,7 @@ object VeloxBackendSettings extends BackendSettingsApi {
 
   override def supportTransformWriteFiles: Boolean = true
 
-  override def allowDecimalArithmetic: Boolean = SQLConf.get.decimalOperationsAllowPrecisionLoss
+  override def allowDecimalArithmetic: Boolean = true
 
   override def enableNativeWriteFiles(): Boolean = {
     GlutenConfig.getConf.enableNativeWriter.getOrElse(
diff --git a/cpp/core/config/GlutenConfig.h b/cpp/core/config/GlutenConfig.h
index ad7dacf113ec..060bbe111265 100644
--- a/cpp/core/config/GlutenConfig.h
+++ b/cpp/core/config/GlutenConfig.h
@@ -32,6 +32,8 @@ const std::string kCaseSensitive = "spark.sql.caseSensitive";
 
 const std::string kSessionTimezone = "spark.sql.session.timeZone";
 
+const std::string kAllowPrecisionLoss = "spark.sql.decimalOperations.allowPrecisionLoss";
+
 const std::string kIgnoreMissingFiles = "spark.sql.files.ignoreMissingFiles";
 
 const std::string kDefaultSessionTimezone = "spark.gluten.sql.session.timeZone.default";
diff --git a/cpp/velox/compute/WholeStageResultIterator.cc b/cpp/velox/compute/WholeStageResultIterator.cc
index 296b9415b159..8439545ca382 100644
--- a/cpp/velox/compute/WholeStageResultIterator.cc
+++ b/cpp/velox/compute/WholeStageResultIterator.cc
@@ -455,6 +455,10 @@ std::unordered_map<std::string, std::string> WholeStageResultIterator::getQueryC
     // Adjust timestamp according to the above configured session timezone.
     configs[velox::core::QueryConfig::kAdjustTimestampToTimezone] = "true";
 
+    // To align with Spark's behavior, allow decimal precision loss or not.
+    configs[velox::core::QueryConfig::kSparkDecimalOperationsAllowPrecisionLoss] =
+        veloxCfg_->get<std::string>(kAllowPrecisionLoss, "true");
+
     {
       // partial aggregation memory config
       auto offHeapMemory = veloxCfg_->get<int64_t>(kSparkTaskOffHeapMemory, facebook::velox::memory::kMaxMemory);
diff --git a/ep/build-velox/src/get_velox.sh b/ep/build-velox/src/get_velox.sh
index 07694a36102d..0d78d8946c76 100755
--- a/ep/build-velox/src/get_velox.sh
+++ b/ep/build-velox/src/get_velox.sh
@@ -16,6 +16,7 @@
 
 set -exu
 
+
 VELOX_REPO=https://github.com/oap-project/velox.git
 VELOX_BRANCH=2024_07_04
 VELOX_HOME=""
diff --git a/gluten-core/src/main/scala/org/apache/gluten/utils/DecimalArithmeticUtil.scala b/gluten-core/src/main/scala/org/apache/gluten/utils/DecimalArithmeticUtil.scala
index 479eb8bb5c29..d3a3373aa058 100644
--- a/gluten-core/src/main/scala/org/apache/gluten/utils/DecimalArithmeticUtil.scala
+++ b/gluten-core/src/main/scala/org/apache/gluten/utils/DecimalArithmeticUtil.scala
@@ -28,8 +28,14 @@ import org.apache.spark.sql.utils.DecimalTypeUtil
 
 object DecimalArithmeticUtil {
 
+  val MIN_ADJUSTED_SCALE = 6
+  val MAX_PRECISION = 38
+  val MAX_SCALE = 38
+
   // Returns the result decimal type of a decimal arithmetic computing.
   def getResultType(expr: BinaryArithmetic, type1: DecimalType, type2: DecimalType): DecimalType = {
+
+    val allowPrecisionLoss = SQLConf.get.decimalOperationsAllowPrecisionLoss
     var resultScale = 0
     var resultPrecision = 0
     expr match {
@@ -45,13 +51,34 @@ object DecimalArithmeticUtil {
         resultScale = type1.scale + type2.scale
         resultPrecision = type1.precision + type2.precision + 1
       case _: Divide =>
-        resultScale =
-          Math.max(DecimalType.MINIMUM_ADJUSTED_SCALE, type1.scale + type2.precision + 1)
-        resultPrecision = type1.precision - type1.scale + type2.scale + resultScale
+        if (allowPrecisionLoss) {
+          resultScale = Math.max(MIN_ADJUSTED_SCALE, type1.scale + type2.precision + 1)
+          resultPrecision = type1.precision - type1.scale + type2.scale + resultScale
+        } else {
+          var intDig = Math.min(MAX_SCALE, type1.precision - type1.scale + type2.scale)
+          var decDig = Math.min(MAX_SCALE, Math.max(6, type1.scale + type2.precision + 1))
+          val diff = (intDig + decDig) - MAX_SCALE
+          if (diff > 0) {
+            decDig -= diff / 2 + 1
+            intDig = MAX_SCALE - decDig
+          }
+          resultPrecision = intDig + decDig
+          resultScale = decDig
+        }
       case other =>
         throw new GlutenNotSupportException(s"$other is not supported.")
     }
-    DecimalTypeUtil.adjustPrecisionScale(resultPrecision, resultScale)
+
+    if (allowPrecisionLoss) {
+      DecimalTypeUtil.adjustPrecisionScale(resultPrecision, resultScale)
+    } else {
+      bounded(resultPrecision, resultScale)
+    }
+
+  }
+
+  def bounded(precision: Int, scale: Int): DecimalType = {
+    DecimalType(Math.min(precision, MAX_PRECISION), Math.min(scale, MAX_SCALE))
   }
 
   // If casting between DecimalType, unnecessary cast is skipped to avoid data loss,
diff --git a/shims/common/src/main/scala/org/apache/gluten/GlutenConfig.scala b/shims/common/src/main/scala/org/apache/gluten/GlutenConfig.scala
index 4ef96bec27eb..ef4618fca1d1 100644
--- a/shims/common/src/main/scala/org/apache/gluten/GlutenConfig.scala
+++ b/shims/common/src/main/scala/org/apache/gluten/GlutenConfig.scala
@@ -636,6 +636,7 @@ object GlutenConfig {
       GLUTEN_DEFAULT_SESSION_TIMEZONE_KEY,
       SQLConf.LEGACY_SIZE_OF_NULL.key,
       "spark.io.compression.codec",
+      "spark.sql.decimalOperations.allowPrecisionLoss",
       COLUMNAR_VELOX_BLOOM_FILTER_EXPECTED_NUM_ITEMS.key,
       COLUMNAR_VELOX_BLOOM_FILTER_NUM_BITS.key,
       COLUMNAR_VELOX_BLOOM_FILTER_MAX_NUM_BITS.key,
@@ -717,6 +718,7 @@ object GlutenConfig {
       ("spark.hadoop.input.write.timeout", "180000"),
       ("spark.hadoop.dfs.client.log.severity", "INFO"),
       ("spark.sql.orc.compression.codec", "snappy"),
+      ("spark.sql.decimalOperations.allowPrecisionLoss", "true"),
       (
         COLUMNAR_VELOX_FILE_HANDLE_CACHE_ENABLED.key,
         COLUMNAR_VELOX_FILE_HANDLE_CACHE_ENABLED.defaultValueString),