diff --git a/model-optimizer/extensions/back/compress_quantized_weights.py b/model-optimizer/extensions/back/compress_quantized_weights.py
index 62799acc1d1c39..98fbd57f4fd7b2 100644
--- a/model-optimizer/extensions/back/compress_quantized_weights.py
+++ b/model-optimizer/extensions/back/compress_quantized_weights.py
@@ -6,7 +6,8 @@
 import numpy as np
 
 from extensions.ops.Cast import Cast
-from extensions.ops.elementwise import Sub, Div, Mul, Negative
+from extensions.ops.elementwise import Sub, Div, Mul, Negative, Equal
+from extensions.ops.select import Select
 from mo.back.replacement import BackReplacementPattern
 from mo.graph.graph import Graph, Node
 from mo.middle.passes.convert_data_type import data_type_str_to_np, np_data_type_to_destination_type, packed_I4
@@ -70,15 +71,7 @@ class CompressQuantizeWeights(BackReplacementPattern):
             scale = (output_high - output_low) / (input_high - input_low)
                 WARNING: division by zero imposes restriction -- input_high can not be equal to input_low
             zero_point = input_low - output_low / scale
-
-    TODO: steps 5 and 6 are NOT IMPLEMENTED YET
-    TODO: DOES LPT NEED IT???
-    Step 5: Having zero_point == 0 is really beneficial for performance, so we try to fuse Subtract up to the Constant.
-        It is not always possible because of the quantized_dtype possible range of values.
-
-    Step 6: (Optional) From the nature of Subtract and Multiply operations they may be optimized out in cases:
-            zero_point == 0
-            scale == 1
+            NOTE: if scale == 0 than zero_point is equal to zero too (achieved through Select operation)
 
     BENEFITS:
         Such constant data packing reduces IR size (.bin file size)
@@ -186,14 +179,24 @@ def dequantize_data(fake_quantize: Node, dst_type: type, quantized_type: type) -
         descaled_output_low.in_port(0).connect(out_low)
         descaled_output_low.in_port(1).connect(scale.out_port(0))
 
-        shift = Sub(graph, {'name': name + '/zero_point'}).create_node()
+        shift = Sub(graph, {'name': name + '/shift'}).create_node()
         shift.in_port(0).connect(in_low)
         shift.in_port(1).connect(descaled_output_low.out_port(0))
 
+        zero = Const(graph, {'name': name + '/zero', 'value': np.array(0, dtype=dst_type)}).create_node()
+        scale_eq_zero = Equal(graph, {'name': name + '/scale_eq_zero'}).create_node()
+        scale_eq_zero.in_port(0).connect(scale.out_port(0))
+        scale_eq_zero.in_port(1).connect(zero.out_port(0))
+
+        zero_point = Select(graph, {'name': name + '/zero_point'}).create_node()
+        zero_point.in_port(0).connect(scale_eq_zero.out_port(0))
+        zero_point.in_port(1).connect(zero.out_port(0))
+        zero_point.in_port(2).connect(shift.out_port(0))
+
         # DeQuantize(x) == Mul(Sub(x, zero_point), scale)
         sub_zp = Sub(graph, {'name': name + '/minus_zp'}).create_node()
         sub_zp.in_port(0).connect(dequantizing_cast.out_port(0))
-        sub_zp.in_port(1).connect(shift.out_port(0))
+        sub_zp.in_port(1).connect(zero_point.out_port(0))
 
         mul_scale = Mul(graph, {'name': name + '/mulpiply_by_scale'}).create_node()
         mul_scale.in_port(0).connect(sub_zp.out_port(0))
@@ -221,6 +224,12 @@ def replace_pattern(self, graph: Graph, match: Dict[str, Node]):
 
 
 class ZeroPointOptimizer(BackReplacementPattern):
+    r"""
+    Step 1: Having zero_point == 0 is really beneficial for performance, so we try to fuse Subtract up to the Constant.
+        It is not always possible because of the quantized_dtype possible range of values.
+
+    Step 2: From the nature of Subtract operation it may be optimized out if zero_point == 0
+    """
     enabled = True
     force_clean_up = True
 
@@ -249,16 +258,18 @@ def pattern(self):
         )
 
     def replace_pattern(self, graph: Graph, match: Dict[str, Node]):
+        zero_point = match['const_zp'].out_port(0).data.get_value()
+        assert zero_point is not None
+        convert = match['convert']
         sub = match['sub']
-        zero_point = sub.in_port(1).data.get_value()
-        if zero_point is None or np.allclose(zero_point, 0):
+        if np.allclose(zero_point, 0):
+            sub.out_port(0).get_connection().set_source(convert.out_port(0))
             return
 
-        convert = match['convert']
-        dst_type = convert.dst_type
-        weights = convert.in_port(0).data.get_value()
+        weights = match['const'].out_port(0).data.get_value()
         if weights is None or weights.dtype != np.int8:
             return
+        dst_type = convert.dst_type
 
         int8_zero_point = np.round(zero_point).astype(np.int8)
         adj_zero_point = (zero_point - int8_zero_point).astype(dst_type)
@@ -266,8 +277,8 @@ def replace_pattern(self, graph: Graph, match: Dict[str, Node]):
         original = weights.astype(dst_type) - zero_point
         transformed = (weights - int8_zero_point).astype(np.int8) - adj_zero_point
 
-        if not np.allclose(original, transformed) or not np.allclose(adj_zero_point, 0):
+        if not np.allclose(original, transformed) or not np.allclose(adj_zero_point, 0, atol=1.e-04):
             return
 
         match['const_d']['value'] = (weights - int8_zero_point).astype(np.int8)
-        match['const_zp_d']['value'] = np.zeros(adj_zero_point.shape, dst_type)
+        sub.out_port(0).get_connection().set_source(convert.out_port(0))
diff --git a/model-optimizer/unit_tests/extensions/back/compress_quantized_weights_test.py b/model-optimizer/unit_tests/extensions/back/compress_quantized_weights_test.py
index 5e4aa87b525883..45d977beb55da0 100644
--- a/model-optimizer/unit_tests/extensions/back/compress_quantized_weights_test.py
+++ b/model-optimizer/unit_tests/extensions/back/compress_quantized_weights_test.py
@@ -254,10 +254,42 @@ class ZeroPointOptimizerTestClass(unittest.TestCase):
     @generate(*[
         ([-10, 7], [-1], [-9, 8], [0]),
         ([-10, 7], [-0.99999999], [-9, 8], [0]),
+    ])
+    def test_zero_point_optimization(self, weights, zero_point, adj_weights, adj_zero_point):
+        nodes = lambda w, zp: {
+            **valued_const_with_data('weights', np.array(w, dtype=np.int8)),
+            **regular_op_with_shaped_data(
+                'cast', len(w), {'type': 'Convert', 'op': 'Cast', 'infer': Cast.infer, 'dst_type': np.float32}),
+            **valued_const_with_data('zp', np.array(zp, dtype=np.float32)),
+            **regular_op_with_shaped_data(
+                'sub', len(w),
+                {'type': 'Subtract', 'op': 'Sub', 'infer': lambda node: eltwise_infer(node, Sub.operation)}),
+            **result()
+        }
+        edges = [
+            *connect("weights:0", "0:cast"),
+            *connect("cast:0", "0:sub"),
+            *connect("zp:0", "1:sub"),
+            *connect("sub:0", "0:output"),
+        ]
+        graph = build_graph(nodes(weights, zero_point), edges, nodes_with_edges_only=True)
+        ZeroPointOptimizer().find_and_replace_pattern(graph)
+        graph.clean_up()
+
+        graph_ref = build_graph(nodes(adj_weights, adj_zero_point), [
+            *connect("weights:0", "0:cast"),
+            *connect("cast:0", "0:output"),
+        ], nodes_with_edges_only=True)
+        graph_ref.clean_up()
+
+        (flag, resp) = compare_graphs(graph, graph_ref, 'output', check_op_attrs=True)
+        self.assertTrue(flag, resp)
+
+    @generate(*[
         ([-128, 7], [1], [-128, 7], [1]),
         ([127, 7], [-1], [127, 7], [-1]),
     ])
-    def test_zero_point_optimization(self, weights, zero_point, adj_weights, adj_zero_point):
+    def test_negative_zero_point_optimization(self, weights, zero_point, adj_weights, adj_zero_point):
         nodes = lambda w, zp: {
             **valued_const_with_data('weights', np.array(w, dtype=np.int8)),
             **regular_op_with_shaped_data(