diff --git a/CHANGELOG.md b/CHANGELOG.md
index 27c8329caa19..2387c6244036 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -54,6 +54,7 @@ This release is compatible with NumPy 2.5.
 * Fixed `dpnp.linalg.svd(..., hermitian=True)` returning a non-unitary `vh` for singular input arrays due to a zero sign appearing [#2954](https://github.com/IntelPython/dpnp/pull/2954)
 * Fixed scalar conversion of size-one `dpnp.tensor.usm_ndarray` (e.g. `int()`, `float()`, indexing) which failed with NumPy 2.5 after the in-place `ndarray.shape` assignment was deprecated [#2958](https://github.com/IntelPython/dpnp/pull/2958)
 * Fixed `dpnp.mgrid` and `dpnp.ogrid` to return consistent results between single-slice and tuple-of-slices syntax when the step is a complex number with a non-integer magnitude (e.g. `2.5j`) [#2971](https://github.com/IntelPython/dpnp/pull/2971)
+* Fixed `icx`/`icpx` warning during `conda build` by stripping the GCC-only `-fno-merge-constants` flag injected by conda-forge into `CFLAGS`/`CXXFLAGS` [#2978](https://github.com/IntelPython/dpnp/pull/2978)
 
 ### Security
 
diff --git a/conda-recipe/build.sh b/conda-recipe/build.sh
index 9d280274c784..65dcf04182bb 100755
--- a/conda-recipe/build.sh
+++ b/conda-recipe/build.sh
@@ -22,6 +22,15 @@ fi
 export CC=icx
 export CXX=icpx
 
+# conda-forge's gcc/g++ activation injects -fno-merge-constants into CFLAGS/CXXFLAGS
+# when CONDA_BUILD==1. icx/icpx don't implement this GCC flag and emit warning #10430
+# (they have -fmerge-all-constants instead). Drop it to keep the build log clean; it
+# is a no-op for the Intel compiler. See CMPLRLLVM-19167 / CMPLRLLVM-28729 and the
+# conda-forge change that added the flag (later scoped to CONDA_BUILD only in #194):
+# https://github.com/conda-forge/ctng-compiler-activation-feedstock/pull/193
+export CFLAGS="${CFLAGS//-fno-merge-constants/}"
+export CXXFLAGS="${CXXFLAGS//-fno-merge-constants/}"
+
 export CMAKE_GENERATOR=Ninja
 # Make CMake verbose
 export VERBOSE=1