diff --git a/transformations/tests/sources/projParallelRoutineDispatch/dispatch_routine.F90 b/transformations/tests/sources/projParallelRoutineDispatch/dispatch_routine.F90
index f4e6dfa1a..5b3fbe641 100644
--- a/transformations/tests/sources/projParallelRoutineDispatch/dispatch_routine.F90
+++ b/transformations/tests/sources/projParallelRoutineDispatch/dispatch_routine.F90
@@ -40,14 +40,16 @@ SUBROUTINE DISPATCH_ROUTINE(YDGEOMETRY, YDCPG_BNDS, YDCPG_OPTS, &
 
 INSTEP_DEB=1
 INSTEP_FIN=1
-!$ACDC PARALLEL,TARGET=OpenMP/OpenMPSingleColumn/OpenACCSingleColumn,NAME=CPPHINP {
+!!!$ACDC PARALLEL,TARGET=OpenMP/OpenMPSingleColumn/OpenACCSingleColumn,NAME=CPPHINP {
+!$loki parallel PARALLEL,TARGET=OpenMP/OpenMPSingleColumn/OpenACCSingleColumn,NAME=CPPHINP
 
 CALL CPPHINP(YDGEOMETRY, YDMODEL, YDCPG_BNDS%KIDIA, YDCPG_BNDS%KFDIA, YDVARS%GEOMETRY%GEMU%T0,                     &
 & YDVARS%GEOMETRY%GELAM%T0, YDVARS%U%T0, YDVARS%V%T0, YDVARS%Q%T0, YDVARS%Q%DL, YDVARS%Q%DM, YDVARS%CVGQ%DL,       &
 & YDVARS%CVGQ%DM, YDCPG_PHY0%XYB%RDELP, YDCPG_DYN0%CTY%EVEL, YDVARS%CVGQ%T0, ZRDG_MU0, ZRDG_MU0LU, ZRDG_MU0M,      &
 & ZRDG_MU0N, ZRDG_CVGQ, YDMF_PHYS_SURF%GSD_VF%PZ0F)
 
-!$ACDC }
+!$loki end parallel
+!!!$ACDC }
 
 IF (LHOOK) CALL DR_HOOK('DISPATCH_ROUTINE',1,ZHOOK_HANDLE)
 
diff --git a/transformations/tests/test_parallel_routine_dispatch.py b/transformations/tests/test_parallel_routine_dispatch.py
index 2161fbe7b..e4afc3739 100644
--- a/transformations/tests/test_parallel_routine_dispatch.py
+++ b/transformations/tests/test_parallel_routine_dispatch.py
@@ -11,7 +11,7 @@
 import pytest
 
 from loki.frontend import available_frontends, OMNI
-from loki import Sourcefile
+from loki import Sourcefile, FindNodes, CallStatement
 
 from transformations.parallel_routine_dispatch import ParallelRoutineDispatchTransformation
 
@@ -22,10 +22,19 @@ def fixture_here():
 
 
 @pytest.mark.parametrize('frontend', available_frontends(skip=[OMNI]))
-def test_parallel_routine_dispatch_parallel_regions(here, frontend):
+def test_parallel_routine_dispatch_dr_hook(here, frontend):
 
     source = Sourcefile.from_file(here/'sources/projParallelRoutineDispatch/dispatch_routine.F90', frontend=frontend)
+    routine = source['dispatch_routine']
+
+    calls = FindNodes(CallStatement).visit(routine.body)
+    assert len(calls) == 3
+
     transformation = ParallelRoutineDispatchTransformation()
     transformation.apply(source['dispatch_routine'])
 
-    assert transformation.dummy_return_value == ['dispatch_routine']
+    calls = FindNodes(CallStatement).visit(routine.body)
+    assert len(calls) == 5
+    assert [str(call.name).lower() for call in calls] == [
+        'dr_hook', 'dr_hook', 'cpphinp', 'dr_hook', 'dr_hook'
+    ]
diff --git a/transformations/transformations/parallel_routine_dispatch.py b/transformations/transformations/parallel_routine_dispatch.py
index 064a71e55..2639dfd22 100644
--- a/transformations/transformations/parallel_routine_dispatch.py
+++ b/transformations/transformations/parallel_routine_dispatch.py
@@ -5,6 +5,11 @@
 # granted to it by virtue of its status as an intergovernmental organisation
 # nor does it submit to any jurisdiction.
 
+from loki.expression import symbols as sym
+from loki.ir import (
+    is_loki_pragma, get_pragma_parameters, pragma_regions_attached,
+    FindNodes, nodes as ir
+)
 from loki.transform import Transformation
 
 __all__ = ['ParallelRoutineDispatchTransformation']
@@ -12,8 +17,42 @@
 
 class ParallelRoutineDispatchTransformation(Transformation):
 
-    def __init__(self):
-        self.dummy_return_value = []
-
     def transform_subroutine(self, routine, **kwargs):
-        self.dummy_return_value += [routine.name.lower()]
+        with pragma_regions_attached(routine):
+            for region in FindNodes(ir.PragmaRegion).visit(routine.body):
+                if is_loki_pragma(region.pragma):
+                    self.process_parallel_region(routine, region)
+
+    def process_parallel_region(self, routine, region):
+        pragma_content = region.pragma.content.split(maxsplit=1)
+        pragma_content = [entry.split('=', maxsplit=1) for entry in pragma_content[1].split(',')]
+        pragma_attrs = {
+            entry[0].lower(): entry[1] if len(entry) == 2 else None
+            for entry in pragma_content
+        }
+        if 'parallel' not in pragma_attrs:
+            return
+
+        dr_hook_calls = self.create_dr_hook_calls(
+            routine, pragma_attrs['name'],
+            sym.Variable(name='ZHOOK_HANDLE_FIELD_API', scope=routine)
+        )
+
+        region.prepend(dr_hook_calls[0])
+        region.append(dr_hook_calls[1])
+
+    @staticmethod
+    def create_dr_hook_calls(scope, cdname, pkey):
+        dr_hook_calls = []
+        for kswitch in (0, 1):
+            call_stmt = ir.CallStatement(
+                name=sym.Variable(name='DR_HOOK', scope=scope),
+                arguments=(sym.StringLiteral(cdname), sym.IntLiteral(kswitch), pkey)
+            )
+            dr_hook_calls += [
+                ir.Conditional(
+                    condition=sym.Variable(name='LHOOK', scope=scope),
+                    inline=True, body=(call_stmt,)
+                )
+            ]
+        return dr_hook_calls