diff --git a/cgmanifest.json b/cgmanifest.json
index b336195444..e00eb5d784 100644
--- a/cgmanifest.json
+++ b/cgmanifest.json
@@ -157,7 +157,7 @@
          "component":{
             "type":"git",
             "git":{
-               "commitHash":"b9ce57acb12f71776a3130ed6f031cc00757de3c",
+               "commitHash":"7de7e5d02bf687f971e7668963649728356e0c20",
                "repositoryUrl":"https://github.com/intel/mkl-dnn.git"
             }
          }
diff --git a/cmake/external/mkldnn.cmake b/cmake/external/mkldnn.cmake
index d97528b498..ed05d885a6 100644
--- a/cmake/external/mkldnn.cmake
+++ b/cmake/external/mkldnn.cmake
@@ -2,8 +2,8 @@ include (ExternalProject)
 
 set(MKLDNN_URL https://github.com/intel/mkl-dnn.git)
 # If MKLDNN_TAG is updated, check if MKLML_VERSION and platform.cmake.patch need to be updated.
-set(MKLDNN_TAG v0.17.2)
-set(MKLML_VERSION 2019.0.1.20180928)
+set(MKLDNN_TAG v0.18.1)
+set(MKLML_VERSION 2019.0.3.20190220)
 
 if(WIN32)
   set(MKLML_OS_VERSION_STR "win")
@@ -32,7 +32,8 @@ else()
 endif()
 
 if (onnxruntime_USE_MKLML)
-  set(MKLML_URL https://github.com/intel/mkl-dnn/releases/download/${MKLDNN_TAG}/mklml_${MKLML_OS_VERSION_STR}_${MKLML_VERSION}.${MKLML_FILE_EXTENSION})
+  set(MKLDNN_VERSION_SHORT v0.18)
+  set(MKLML_URL https://github.com/intel/mkl-dnn/releases/download/${MKLDNN_VERSION_SHORT}/mklml_${MKLML_OS_VERSION_STR}_${MKLML_VERSION}.${MKLML_FILE_EXTENSION})
 
   ExternalProject_Add(project_mklml
     PREFIX mklml
@@ -51,7 +52,12 @@ endif()
 if (onnxruntime_USE_MKLDNN)
   set(MKLDNN_SOURCE ${CMAKE_CURRENT_BINARY_DIR}/mkl-dnn/src/mkl-dnn/src)
   set(MKLDNN_INSTALL ${CMAKE_CURRENT_BINARY_DIR}/mkl-dnn/install)
-  set(MKLDNN_LIB_DIR ${MKLDNN_INSTALL}/lib)
+  set(MKLDNN_LIB_DIR ${MKLDNN_INSTALL}/${CMAKE_INSTALL_LIBDIR})
+  if(WIN32)
+    set(MKLDNN_DLL_PATH ${MKLDNN_INSTALL}/${CMAKE_INSTALL_BINDIR}/${MKLDNN_SHARED_LIB})
+  else()
+    set(MKLDNN_DLL_PATH ${MKLDNN_LIB_DIR}/${MKLDNN_SHARED_LIB})
+  endif()
   set(MKLDNN_INCLUDE_DIR ${MKLDNN_INSTALL}/include)
   if(NOT onnxruntime_BUILD_FOR_NATIVE_MACHINE)
     set(MKLDNN_PATCH_COMMAND1 git apply ${CMAKE_SOURCE_DIR}/patches/mkldnn/platform.cmake.patch)
@@ -64,7 +70,7 @@ if (onnxruntime_USE_MKLDNN)
     GIT_TAG ${MKLDNN_TAG}
     PATCH_COMMAND ${MKLDNN_PATCH_DISCARD_COMMAND} COMMAND ${MKLDNN_PATCH_COMMAND1}
     SOURCE_DIR ${MKLDNN_SOURCE}
-    CMAKE_ARGS -DCMAKE_BUILD_TYPE=${CMAKE_BUILD_TYPE} -DCMAKE_INSTALL_PREFIX=${MKLDNN_INSTALL} -DMKLROOT=${MKML_DIR}
+    CMAKE_ARGS -DMKLDNN_PRODUCT_BUILD_MODE=OFF -DCMAKE_BUILD_TYPE=${CMAKE_BUILD_TYPE} -DCMAKE_INSTALL_PREFIX=${MKLDNN_INSTALL} -DMKLROOT=${MKML_DIR}
   )
   link_directories(${MKLDNN_LIB_DIR})
   if (onnxruntime_USE_MKLML)
diff --git a/cmake/onnxruntime_python.cmake b/cmake/onnxruntime_python.cmake
index 06de47993a..d4686ba51c 100644
--- a/cmake/onnxruntime_python.cmake
+++ b/cmake/onnxruntime_python.cmake
@@ -168,8 +168,7 @@ add_custom_command(
 if (onnxruntime_USE_MKLDNN)
   add_custom_command(
     TARGET onnxruntime_pybind11_state POST_BUILD
-    COMMAND ${CMAKE_COMMAND} -E copy
-        ${MKLDNN_LIB_DIR}/${MKLDNN_SHARED_LIB}
+    COMMAND ${CMAKE_COMMAND} -E copy ${MKLDNN_DLL_PATH}
         $<TARGET_FILE_DIR:${test_data_target}>/onnxruntime/capi/
   )
 endif()
diff --git a/cmake/onnxruntime_unittests.cmake b/cmake/onnxruntime_unittests.cmake
index 6515e03a6e..71d3e1cf5a 100644
--- a/cmake/onnxruntime_unittests.cmake
+++ b/cmake/onnxruntime_unittests.cmake
@@ -339,7 +339,7 @@ if(WIN32)
     list(APPEND onnx_test_libs mkldnn)
     add_custom_command(
       TARGET ${test_data_target} POST_BUILD
-      COMMAND ${CMAKE_COMMAND} -E copy ${MKLDNN_LIB_DIR}/${MKLDNN_SHARED_LIB} $<TARGET_FILE_DIR:${test_data_target}>
+      COMMAND ${CMAKE_COMMAND} -E copy ${MKLDNN_DLL_PATH} $<TARGET_FILE_DIR:${test_data_target}>
       )
   endif()
   if (onnxruntime_USE_MKLML)