diff --git a/src/bindings/python/src/openvino/runtime/opset16/__init__.py b/src/bindings/python/src/openvino/runtime/opset16/__init__.py
index bf155b81312090..ce52690e919fc3 100644
--- a/src/bindings/python/src/openvino/runtime/opset16/__init__.py
+++ b/src/bindings/python/src/openvino/runtime/opset16/__init__.py
@@ -3,6 +3,7 @@
 # SPDX-License-Identifier: Apache-2.0
 
 # New operations added in Opset16
+from openvino.runtime.opset16.ops import identity
 
 # Operators from previous opsets
 # TODO (ticket: 156877): Add previous opset operators at the end of opset16 development
diff --git a/src/bindings/python/src/openvino/runtime/opset16/ops.py b/src/bindings/python/src/openvino/runtime/opset16/ops.py
index 0825ccb9d0f487..60656f6d993b6a 100644
--- a/src/bindings/python/src/openvino/runtime/opset16/ops.py
+++ b/src/bindings/python/src/openvino/runtime/opset16/ops.py
@@ -4,9 +4,31 @@
 
 """Factory functions for ops added to openvino opset16."""
 from functools import partial
+from typing import Optional
 
+from openvino.runtime import Node
+from openvino.runtime.utils.decorators import nameable_op
 from openvino.runtime.opset_utils import _get_node_factory
+from openvino.runtime.utils.types import NodeInput, as_nodes
 
 _get_node_factory_opset16 = partial(_get_node_factory, "opset16")
 
 # -------------------------------------------- ops ------------------------------------------------
+
+
+@nameable_op
+def identity(
+    data: NodeInput,
+    name: Optional[str] = None,
+) -> Node:
+    """Identity operation is used as a placeholder. It creates a copy of the input to forward to the output.
+
+    :param data: Tensor with data.
+
+    :return: The new node performing Identity operation.
+    """
+    return _get_node_factory_opset16().create(
+        "Identity",
+        as_nodes(data, name=name),
+        {},
+    )
diff --git a/src/bindings/python/tests/test_graph/test_identity.py b/src/bindings/python/tests/test_graph/test_identity.py
new file mode 100644
index 00000000000000..fea1c88858c874
--- /dev/null
+++ b/src/bindings/python/tests/test_graph/test_identity.py
@@ -0,0 +1,31 @@
+# -*- coding: utf-8 -*-
+# Copyright (C) 2018-2024 Intel Corporation
+# SPDX-License-Identifier: Apache-2.0
+
+import numpy as np
+import pytest
+
+from openvino.runtime.opset15 import parameter
+from openvino.runtime.opset16 import identity
+from openvino import PartialShape, Type
+
+
+@pytest.mark.parametrize(
+    ("input_shape", "expected_output_shape"),
+    [
+        ([4, 4], PartialShape([4, 4])),
+        ([10, 8, 8], PartialShape([10, 8, 8])),
+        ([-1, -1, -1], PartialShape([-1, -1, -1])),
+        ([10, -1, -1], PartialShape([10, -1, -1])),
+    ],
+)
+@pytest.mark.parametrize("op_name", ["identity", "identityOpset16"])
+def test_inverse_param_inputs(input_shape, expected_output_shape, op_name):
+    data = parameter(input_shape, dtype=np.float32)
+
+    op = identity(data, name=op_name)
+    assert op.get_output_size() == 1
+    assert op.get_type_name() == "Identity"
+    assert op.get_friendly_name() == op_name
+    assert op.get_output_element_type(0) == Type.f32
+    assert op.get_output_partial_shape(0) == expected_output_shape