diff --git a/dpctl/tensor/_searchsorted.py b/dpctl/tensor/_searchsorted.py
index 3091c8fc5b..d9408e072e 100644
--- a/dpctl/tensor/_searchsorted.py
+++ b/dpctl/tensor/_searchsorted.py
@@ -22,7 +22,7 @@ def searchsorted(
     *,
     side: Literal["left", "right"] = "left",
     sorter: Union[usm_ndarray, None] = None,
-):
+) -> usm_ndarray:
     """searchsorted(x1, x2, side='left', sorter=None)
 
     Finds the indices into `x1` such that, if the corresponding elements
@@ -50,6 +50,8 @@ def searchsorted(
         sorter (Optional[usm_ndarray]):
             array of indices that sort `x1` in ascending order. The array must
             have the same shape as `x1` and have an integral data type.
+            Out of bound index values of `sorter` array are treated using
+            `"wrap"` mode documented in :py:func:`dpctl.tensor.take`.
             Default: `None`.
     """
     if not isinstance(x1, usm_ndarray):
diff --git a/dpctl/tests/test_usm_ndarray_searchsorted.py b/dpctl/tests/test_usm_ndarray_searchsorted.py
index 5004f71b70..4d2e899fe1 100644
--- a/dpctl/tests/test_usm_ndarray_searchsorted.py
+++ b/dpctl/tests/test_usm_ndarray_searchsorted.py
@@ -340,3 +340,18 @@ def test_pw_linear_interpolation_example():
     exp = dpt.vecdot(vals[1:] + vals[:-1], bins[1:] - bins[:-1]) / 2
 
     assert dpt.abs(av - exp) < 0.1
+
+
+def test_out_of_bound_sorter_values():
+    get_queue_or_skip()
+
+    x = dpt.asarray([1, 2, 0], dtype="i4")
+    n = x.shape[0]
+
+    # use out-of-bounds indices in sorter
+    sorter = dpt.asarray([2, 0 - n, 1 - n], dtype="i8")
+
+    x2 = dpt.arange(3, dtype=x.dtype)
+    p = dpt.searchsorted(x, x2, sorter=sorter)
+    # verify that they were applied with mode="wrap"
+    assert dpt.all(p == dpt.arange(3, dtype=p.dtype))