diff --git a/CMakeLists.txt b/CMakeLists.txt
index 25c0865a90a..376565583d9 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -191,6 +191,7 @@ set(VLLM_EXT_SRC
   "csrc/pos_encoding_kernels.cu"
   "csrc/activation_kernels.cu"
   "csrc/layernorm_kernels.cu"
+  "csrc/layernorm_quant_kernels.cu"
   "csrc/quantization/gptq/q_gemm.cu"
   "csrc/quantization/compressed_tensors/int8_quant_kernels.cu"
   "csrc/quantization/fp8/common.cu"
diff --git a/csrc/layernorm_kernels.cu b/csrc/layernorm_kernels.cu
index 7a7a25d2173..fb6882f3e7c 100644
--- a/csrc/layernorm_kernels.cu
+++ b/csrc/layernorm_kernels.cu
@@ -1,21 +1,13 @@
-#include <torch/all.h>
-#include <ATen/cuda/CUDAContext.h>
+#include "type_convert.cuh"
+#include "dispatch_utils.h"
+
+#include <torch/cuda.h>
 #include <c10/cuda/CUDAGuard.h>
 
-#include "dispatch_utils.h"
 #ifndef USE_ROCM
-  #include <cuda_bf16.h>
-  #include <cuda_fp16.h>
-  #include <cub/util_type.cuh>
   #include <cub/cub.cuh>
 #else
-  #include <hip/hip_bf16.h>
-  #include <hip/hip_fp16.h>
-  #include <hipcub/util_type.hpp>
   #include <hipcub/hipcub.hpp>
-
-using __nv_bfloat16 = __hip_bfloat16;
-using __nv_bfloat162 = __hip_bfloat162;
 #endif
 
 namespace vllm {
@@ -51,155 +43,6 @@ __global__ void rms_norm_kernel(
   }
 }
 
-/* Converter structs for the conversion from torch types to HIP/CUDA types,
-   and the associated type conversions within HIP/CUDA. These helpers need
-   to be implemented for now because the relevant type conversion
-   operators/constructors are not consistently implemented by HIP/CUDA, so
-   a generic conversion via type casts cannot be implemented.
-
-   Each struct should have the member static constexpr bool `exists`:
-   If false, the optimized kernel is not used for the corresponding torch type.
-   If true, the struct should be fully defined as shown in the examples below.
- */
-template <typename torch_type>
-struct _typeConvert {
-  static constexpr bool exists = false;
-};
-
-#if defined(USE_ROCM) || (defined(CUDA_VERSION) && (CUDA_VERSION >= 12000))
-// CUDA < 12.0 runs into issues with packed type conversion
-template <>
-struct _typeConvert<c10::Half> {
-  static constexpr bool exists = true;
-  using hip_type = __half;
-  using packed_hip_type = __half2;
-
-  __device__ static inline float convert(hip_type x) { return __half2float(x); }
-  __device__ static inline float2 convert(packed_hip_type x) {
-    return __half22float2(x);
-  }
-  __device__ static inline hip_type convert(float x) {
-    return __float2half_rn(x);
-  }
-  __device__ static inline packed_hip_type convert(float2 x) {
-    return __float22half2_rn(x);
-  }
-};
-
-  #if defined(__CUDA_ARCH__) && __CUDA_ARCH__ >= 800
-// CUDA_ARCH < 800 does not have BF16 support
-// TODO: Add in ROCm support once public headers handle bf16 maturely
-template <>
-struct _typeConvert<c10::BFloat16> {
-  static constexpr bool exists = true;
-  using hip_type = __nv_bfloat16;
-  using packed_hip_type = __nv_bfloat162;
-
-  __device__ static inline float convert(hip_type x) {
-    return __bfloat162float(x);
-  }
-  __device__ static inline float2 convert(packed_hip_type x) {
-    return __bfloat1622float2(x);
-  }
-  __device__ static inline hip_type convert(float x) {
-    return __float2bfloat16(x);
-  }
-  __device__ static inline packed_hip_type convert(float2 x) {
-    return __float22bfloat162_rn(x);
-  }
-};
-  #endif  // defined(__CUDA_ARCH__) && __CUDA_ARCH__ >= 800
-#endif    // defined(USE_ROCM) || (defined(CUDA_VERSION) && (CUDA_VERSION >=
-          // 12000))
-
-/* Vector POD struct to generate vectorized and packed FP16/BF16 ops
-   for appropriate specializations of fused_add_rms_norm_kernel.
-   Only functions that are necessary in that kernel are implemented.
-   Alignment to 16 bytes is required to use 128-bit global memory ops.
- */
-template <typename scalar_t, int width>
-struct alignas(16) _f16Vec {
-  /* Not theoretically necessary that width is a power of 2 but should
-     almost always be the case for optimization purposes */
-  static_assert(width > 0 && (width & (width - 1)) == 0,
-                "Width is not a positive power of 2!");
-  using Converter = _typeConvert<scalar_t>;
-  using T1 = typename Converter::hip_type;
-  using T2 = typename Converter::packed_hip_type;
-  T1 data[width];
-
-  __device__ _f16Vec& operator+=(const _f16Vec<scalar_t, width>& other) {
-    if constexpr (width % 2 == 0) {
-#pragma unroll
-      for (int i = 0; i < width; i += 2) {
-        T2 temp{data[i], data[i + 1]};
-        temp += T2{other.data[i], other.data[i + 1]};
-        data[i] = temp.x;
-        data[i + 1] = temp.y;
-      }
-    } else {
-#pragma unroll
-      for (int i = 0; i < width; ++i) data[i] += other.data[i];
-    }
-    return *this;
-  }
-
-  __device__ _f16Vec& operator*=(const _f16Vec<scalar_t, width>& other) {
-    if constexpr (width % 2 == 0) {
-#pragma unroll
-      for (int i = 0; i < width; i += 2) {
-        T2 temp{data[i], data[i + 1]};
-        temp *= T2{other.data[i], other.data[i + 1]};
-        data[i] = temp.x;
-        data[i + 1] = temp.y;
-      }
-    } else {
-#pragma unroll
-      for (int i = 0; i < width; ++i) data[i] *= other.data[i];
-    }
-    return *this;
-  }
-
-  __device__ _f16Vec& operator*=(const float scale) {
-    if constexpr (width % 2 == 0) {
-#pragma unroll
-      for (int i = 0; i < width; i += 2) {
-        float2 temp_f = Converter::convert(T2{data[i], data[i + 1]});
-        temp_f.x *= scale;
-        temp_f.y *= scale;
-        T2 temp = Converter::convert(temp_f);
-        data[i] = temp.x;
-        data[i + 1] = temp.y;
-      }
-    } else {
-#pragma unroll
-      for (int i = 0; i < width; ++i) {
-        float temp = Converter::convert(data[i]) * scale;
-        data[i] = Converter::convert(temp);
-      }
-    }
-    return *this;
-  }
-
-  __device__ float sum_squares() const {
-    float result = 0.0f;
-    if constexpr (width % 2 == 0) {
-#pragma unroll
-      for (int i = 0; i < width; i += 2) {
-        float2 z = Converter::convert(T2{data[i], data[i + 1]});
-        result += z.x * z.x + z.y * z.y;
-      }
-    } else {
-#pragma unroll
-      for (int i = 0; i < width; ++i) {
-        float x = Converter::convert(data[i]);
-        result += x * x;
-      }
-    }
-    return result;
-  }
-};
-
 /* Function specialization in the case of FP16/BF16 tensors.
    Additional optimizations we can make in this case are
    packed and vectorized operations, which help with the
diff --git a/csrc/layernorm_quant_kernels.cu b/csrc/layernorm_quant_kernels.cu
new file mode 100644
index 00000000000..c18e2a4e4ab
--- /dev/null
+++ b/csrc/layernorm_quant_kernels.cu
@@ -0,0 +1,234 @@
+/*
+ * This file contains the CUDA kernels for the fused quantized layernorm.
+ * The kernels correspond to the kernels in layernorm_kernels.cu, except they
+ * also produce quantized output directly.
+ * Currently, only static fp8 quantization is supported.
+ */
+
+#include "type_convert.cuh"
+#include "quantization/fp8/common.cuh"
+#include "dispatch_utils.h"
+
+#include <torch/cuda.h>
+#include <c10/cuda/CUDAGuard.h>
+
+#ifndef USE_ROCM
+  #include <cub/cub.cuh>
+#else
+  #include <hipcub/hipcub.hpp>
+#endif
+
+namespace vllm {
+
+// TODO(woosuk): Further optimize this kernel.
+template <typename scalar_t>
+__global__ void rms_norm_static_fp8_quant_kernel(
+    FP8_TYPE* __restrict__ out,           // [..., hidden_size]
+    const scalar_t* __restrict__ input,   // [..., hidden_size]
+    const scalar_t* __restrict__ weight,  // [hidden_size]
+    const float* __restrict__ scale,      // [1]
+    const float epsilon, const int num_tokens, const int hidden_size) {
+  __shared__ float s_variance;
+  float variance = 0.0f;
+
+  for (int idx = threadIdx.x; idx < hidden_size; idx += blockDim.x) {
+    const float x = (float)input[blockIdx.x * hidden_size + idx];
+    variance += x * x;
+  }
+
+  using BlockReduce = cub::BlockReduce<float, 1024>;
+  __shared__ typename BlockReduce::TempStorage reduceStore;
+  variance = BlockReduce(reduceStore).Reduce(variance, cub::Sum{}, blockDim.x);
+
+  if (threadIdx.x == 0) {
+    s_variance = rsqrtf(variance / hidden_size + epsilon);
+  }
+  __syncthreads();
+
+  // invert scale to avoid division
+  float const scale_inv = 1.0f / *scale;
+
+  for (int idx = threadIdx.x; idx < hidden_size; idx += blockDim.x) {
+    float x = (float)input[blockIdx.x * hidden_size + idx];
+    float const out_norm = ((scalar_t)(x * s_variance)) * weight[idx];
+    out[blockIdx.x * hidden_size + idx] =
+        scaled_fp8_conversion<true>(out_norm, scale_inv);
+  }
+}
+
+/* Function specialization in the case of FP16/BF16 tensors.
+   Additional optimizations we can make in this case are
+   packed and vectorized operations, which help with the
+   memory latency bottleneck. */
+template <typename scalar_t, int width>
+__global__ std::enable_if_t<(width > 0) && _typeConvert<scalar_t>::exists>
+fused_add_rms_norm_static_fp8_quant_kernel(
+    FP8_TYPE* __restrict__ out,           // [..., hidden_size]
+    scalar_t* __restrict__ input,         // [..., hidden_size]
+    scalar_t* __restrict__ residual,      // [..., hidden_size]
+    const scalar_t* __restrict__ weight,  // [hidden_size]
+    const float* __restrict__ scale,      // [1]
+    const float epsilon, const int num_tokens, const int hidden_size) {
+  // Sanity checks on our vector struct and type-punned pointer arithmetic
+  static_assert(std::is_pod_v<_f16Vec<scalar_t, width>>);
+  static_assert(sizeof(_f16Vec<scalar_t, width>) == sizeof(scalar_t) * width);
+
+  const int vec_hidden_size = hidden_size / width;
+  __shared__ float s_variance;
+  float variance = 0.0f;
+  /* These and the argument pointers are all declared `restrict` as they are
+     not aliased in practice. Argument pointers should not be dereferenced
+     in this kernel as that would be undefined behavior */
+  auto* __restrict__ input_v =
+      reinterpret_cast<_f16Vec<scalar_t, width>*>(input);
+  auto* __restrict__ residual_v =
+      reinterpret_cast<_f16Vec<scalar_t, width>*>(residual);
+  auto* __restrict__ weight_v =
+      reinterpret_cast<const _f16Vec<scalar_t, width>*>(weight);
+
+  for (int idx = threadIdx.x; idx < vec_hidden_size; idx += blockDim.x) {
+    int id = blockIdx.x * vec_hidden_size + idx;
+    _f16Vec<scalar_t, width> temp = input_v[id];
+    temp += residual_v[id];
+    variance += temp.sum_squares();
+    residual_v[id] = temp;
+  }
+
+  using BlockReduce = cub::BlockReduce<float, 1024>;
+  __shared__ typename BlockReduce::TempStorage reduceStore;
+  variance = BlockReduce(reduceStore).Reduce(variance, cub::Sum{}, blockDim.x);
+
+  if (threadIdx.x == 0) {
+    s_variance = rsqrtf(variance / hidden_size + epsilon);
+  }
+  __syncthreads();
+
+  // invert scale to avoid division
+  float const scale_inv = 1.0f / *scale;
+
+  for (int idx = threadIdx.x; idx < vec_hidden_size; idx += blockDim.x) {
+    int id = blockIdx.x * vec_hidden_size + idx;
+    _f16Vec<scalar_t, width> temp = residual_v[id];
+    temp *= s_variance;
+    temp *= weight_v[idx];
+#pragma unroll
+    for (int i = 0; i < width; ++i) {
+      out[id * width + i] =
+          scaled_fp8_conversion<true>(float(temp.data[i]), scale_inv);
+    }
+  }
+}
+
+/* Generic fused_add_rms_norm_kernel
+   The width field is not used here but necessary for other specializations.
+ */
+template <typename scalar_t, int width>
+__global__ std::enable_if_t<(width == 0) || !_typeConvert<scalar_t>::exists>
+fused_add_rms_norm_static_fp8_quant_kernel(
+    FP8_TYPE* __restrict__ out,           // [..., hidden_size]
+    scalar_t* __restrict__ input,         // [..., hidden_size]
+    scalar_t* __restrict__ residual,      // [..., hidden_size]
+    const scalar_t* __restrict__ weight,  // [hidden_size]
+    const float* __restrict__ scale,      // [1]
+    const float epsilon, const int num_tokens, const int hidden_size) {
+  __shared__ float s_variance;
+  float variance = 0.0f;
+
+  for (int idx = threadIdx.x; idx < hidden_size; idx += blockDim.x) {
+    scalar_t z = input[blockIdx.x * hidden_size + idx];
+    z += residual[blockIdx.x * hidden_size + idx];
+    float x = (float)z;
+    variance += x * x;
+    residual[blockIdx.x * hidden_size + idx] = z;
+  }
+
+  using BlockReduce = cub::BlockReduce<float, 1024>;
+  __shared__ typename BlockReduce::TempStorage reduceStore;
+  variance = BlockReduce(reduceStore).Reduce(variance, cub::Sum{}, blockDim.x);
+
+  if (threadIdx.x == 0) {
+    s_variance = rsqrtf(variance / hidden_size + epsilon);
+  }
+  __syncthreads();
+
+  // invert scale to avoid division
+  float const scale_inv = 1.0f / *scale;
+
+  for (int idx = threadIdx.x; idx < hidden_size; idx += blockDim.x) {
+    float x = (float)residual[blockIdx.x * hidden_size + idx];
+    float const out_norm = ((scalar_t)(x * s_variance)) * weight[idx];
+    out[blockIdx.x * hidden_size + idx] =
+        scaled_fp8_conversion<true>(out_norm, scale_inv);
+  }
+}
+
+}  // namespace vllm
+
+void rms_norm_static_fp8_quant(torch::Tensor& out,     // [..., hidden_size]
+                               torch::Tensor& input,   // [..., hidden_size]
+                               torch::Tensor& weight,  // [hidden_size]
+                               torch::Tensor& scale,   // [1]
+                               double epsilon) {
+  int hidden_size = input.size(-1);
+  int num_tokens = input.numel() / hidden_size;
+
+  dim3 grid(num_tokens);
+  dim3 block(std::min(hidden_size, 1024));
+  const at::cuda::OptionalCUDAGuard device_guard(device_of(input));
+  const cudaStream_t stream = at::cuda::getCurrentCUDAStream();
+  VLLM_DISPATCH_FLOATING_TYPES(input.scalar_type(), "rms_norm_kernel", [&] {
+    vllm::rms_norm_static_fp8_quant_kernel<scalar_t>
+        <<<grid, block, 0, stream>>>(
+            out.data_ptr<FP8_TYPE>(), input.data_ptr<scalar_t>(),
+            weight.data_ptr<scalar_t>(), scale.data_ptr<float>(), epsilon,
+            num_tokens, hidden_size);
+  });
+}
+
+#define LAUNCH_FUSED_ADD_RMS_NORM(width)                                    \
+  VLLM_DISPATCH_FLOATING_TYPES(                                             \
+      input.scalar_type(), "fused_add_rms_norm_kernel", [&] {               \
+        vllm::fused_add_rms_norm_static_fp8_quant_kernel<scalar_t, width>   \
+            <<<grid, block, 0, stream>>>(                                   \
+                out.data_ptr<FP8_TYPE>(), input.data_ptr<scalar_t>(),       \
+                residual.data_ptr<scalar_t>(), weight.data_ptr<scalar_t>(), \
+                scale.data_ptr<float>(), epsilon, num_tokens, hidden_size); \
+      });
+
+void fused_add_rms_norm_static_fp8_quant(
+    torch::Tensor& out,       // [..., hidden_size],
+    torch::Tensor& input,     // [..., hidden_size]
+    torch::Tensor& residual,  // [..., hidden_size]
+    torch::Tensor& weight,    // [hidden_size]
+    torch::Tensor& scale,     // [1]
+    double epsilon) {
+  int hidden_size = input.size(-1);
+  int num_tokens = input.numel() / hidden_size;
+
+  dim3 grid(num_tokens);
+  /* This kernel is memory-latency bound in many scenarios.
+     When num_tokens is large, a smaller block size allows
+     for increased block occupancy on CUs and better latency
+     hiding on global mem ops. */
+  const int max_block_size = (num_tokens < 256) ? 1024 : 256;
+  dim3 block(std::min(hidden_size, max_block_size));
+  const at::cuda::OptionalCUDAGuard device_guard(device_of(input));
+  const cudaStream_t stream = at::cuda::getCurrentCUDAStream();
+  /*If the tensor types are FP16/BF16, try to use the optimized kernel
+    with packed + vectorized ops.
+    Max optimization is achieved with a width-8 vector of FP16/BF16s
+    since we can load at most 128 bits at once in a global memory op.
+    However, this requires each tensor's data to be aligned to 16
+    bytes.
+   */
+  auto inp_ptr = reinterpret_cast<std::uintptr_t>(input.data_ptr());
+  auto res_ptr = reinterpret_cast<std::uintptr_t>(residual.data_ptr());
+  auto wt_ptr = reinterpret_cast<std::uintptr_t>(weight.data_ptr());
+  bool ptrs_are_aligned =
+      inp_ptr % 16 == 0 && res_ptr % 16 == 0 && wt_ptr % 16 == 0;
+  if (ptrs_are_aligned && hidden_size % 8 == 0) {
+    LAUNCH_FUSED_ADD_RMS_NORM(8);
+  } else {
+    LAUNCH_FUSED_ADD_RMS_NORM(0);
+  }
+}
diff --git a/csrc/ops.h b/csrc/ops.h
index e0775ee1891..672e608e9c4 100644
--- a/csrc/ops.h
+++ b/csrc/ops.h
@@ -56,6 +56,16 @@ void rms_norm(torch::Tensor& out, torch::Tensor& input, torch::Tensor& weight,
 void fused_add_rms_norm(torch::Tensor& input, torch::Tensor& residual,
                         torch::Tensor& weight, double epsilon);
 
+void rms_norm_static_fp8_quant(torch::Tensor& out, torch::Tensor& input,
+                               torch::Tensor& weight, torch::Tensor& scale,
+                               double epsilon);
+
+void fused_add_rms_norm_static_fp8_quant(torch::Tensor& out,
+                                         torch::Tensor& input,
+                                         torch::Tensor& residual,
+                                         torch::Tensor& weight,
+                                         torch::Tensor& scale, double epsilon);
+
 void rotary_embedding(torch::Tensor& positions, torch::Tensor& query,
                       torch::Tensor& key, int64_t head_size,
                       torch::Tensor& cos_sin_cache, bool is_neox);
diff --git a/csrc/quantization/fp8/common.cu b/csrc/quantization/fp8/common.cu
index f2c609c1b68..e4f6615ede1 100644
--- a/csrc/quantization/fp8/common.cu
+++ b/csrc/quantization/fp8/common.cu
@@ -1,185 +1,16 @@
-#include <ATen/cuda/CUDAContext.h>
-#include <torch/all.h>
-#include <c10/cuda/CUDAGuard.h>
-
-#include <cmath>
-
-#include "cuda_compat.h"
+#include "common.cuh"
 #include "dispatch_utils.h"
 
+#include <c10/cuda/CUDAGuard.h>
+
 #ifndef USE_ROCM
-  #include <cub/util_type.cuh>
   #include <cub/cub.cuh>
 #else
-  #include <hipcub/util_type.hpp>
   #include <hipcub/hipcub.hpp>
 #endif
 
-#ifndef USE_ROCM
-using FP8_TYPE = c10::Float8_e4m3fn;
-C10_HOST_DEVICE constexpr auto FP8_E4M3_MAX =
-    std::numeric_limits<FP8_TYPE>::max();
-#else
-  #include "amd/hip_float8.h"
-using FP8_TYPE = c10::Float8_e4m3fnuz;
-// Using the default max value from pytorch (240.0) will cause accuracy
-// issue when running dynamic quantization. Here use 224.0f for rocm.
-constexpr auto FP8_E4M3_MAX = 224.0f;
-#endif
-
 namespace vllm {
 
-__device__ __forceinline__ float atomicMaxFloat(float* addr, float value) {
-  float old;
-  old = (value >= 0)
-            ? __int_as_float(atomicMax((int*)addr, __float_as_int(value)))
-            : __uint_as_float(
-                  atomicMin((unsigned int*)addr, __float_as_uint(value)));
-
-  return old;
-}
-
-template <bool is_scale_inverted>
-__device__ __forceinline__ FP8_TYPE scaled_fp8_conversion(float const val,
-                                                          float const scale) {
-  float x = 0.0f;
-  if constexpr (is_scale_inverted) {
-    x = val * scale;
-  } else {
-    x = val / scale;
-  }
-
-  float r = fmax(-FP8_E4M3_MAX, fmin(x, FP8_E4M3_MAX));
-#ifndef USE_ROCM
-  return static_cast<c10::Float8_e4m3fn>(r);
-#else
-  // Use hardware cvt instruction for fp8 on rocm
-  return c10::Float8_e4m3fnuz(hip_fp8(r).data,
-                              c10::Float8_e4m3fnuz::from_bits());
-#endif
-}
-
-// Compute the absolute maximum m of the input tensor and store
-// m / float8_e4m3::max() in *scale. Each thread block performs a
-// reduction tree and the memory in scale is atomically updated.
-// So to get the right answer, *scale needs to be initialized to
-// a value <= 0.0 and we need to wait for all thread blocks to
-// finish before consuming *scale.
-template <typename scalar_t>
-__global__ void segmented_max_reduction(float* __restrict__ scale,
-                                        const scalar_t* __restrict__ input,
-                                        int64_t num_elems) {
-  __shared__ float cache[1024];
-  int64_t i = blockDim.x * blockIdx.x + threadIdx.x;
-
-  // First store maximum for all values processes by
-  // the current thread in cache[threadIdx.x]
-  scalar_t tmp = 0.0;
-  while (i < num_elems) {
-    float x = static_cast<float>(input[i]);
-    tmp = max(tmp, fabs(x));
-    i += blockDim.x * gridDim.x;
-  }
-  cache[threadIdx.x] = tmp;
-
-  __syncthreads();
-
-  // Now perform parallel reduction within the thread block
-  int ib = blockDim.x / 2;
-  while (ib != 0) {
-    if (threadIdx.x < ib && cache[threadIdx.x + ib] > cache[threadIdx.x]) {
-      cache[threadIdx.x] = cache[threadIdx.x + ib];
-    }
-    __syncthreads();
-    ib /= 2;
-  }
-  // Finally, since cache[0] contains the maximum for this thread block,
-  // atomically write the max to the target location
-  if (threadIdx.x == 0) {
-    atomicMaxFloat(scale, cache[0] / FP8_E4M3_MAX);
-  }
-}
-
-template <typename scalar_t>
-struct __align__(8) vec4_t {
-  scalar_t x;
-  scalar_t y;
-  scalar_t z;
-  scalar_t w;
-};
-
-typedef struct __align__(4) {
-  FP8_TYPE x;
-  FP8_TYPE y;
-  FP8_TYPE z;
-  FP8_TYPE w;
-}
-float8x4_t;
-
-template <typename scalar_t>
-__device__ float thread_max_vec(scalar_t const* __restrict__ input,
-                                int64_t const num_elems, int const tid,
-                                int const step) {
-  // Vectorized input/output to better utilize memory bandwidth.
-  vec4_t<scalar_t> const* vectorized_in =
-      reinterpret_cast<vec4_t<scalar_t> const*>(input);
-
-  int64_t const num_vec_elems = num_elems >> 2;
-  float absmax_val = 0.0f;
-
-#pragma unroll 4
-  for (int64_t i = tid; i < num_vec_elems; i += step) {
-    vec4_t<scalar_t> in_vec = vectorized_in[i];
-    absmax_val = max(absmax_val, fabs(in_vec.x));
-    absmax_val = max(absmax_val, fabs(in_vec.y));
-    absmax_val = max(absmax_val, fabs(in_vec.z));
-    absmax_val = max(absmax_val, fabs(in_vec.w));
-  }
-
-  // Handle the remaining elements if num_elems is not divisible by 4
-  for (int64_t i = num_vec_elems * 4 + tid; i < num_elems; i += step) {
-    absmax_val = max(absmax_val, fabs(input[i]));
-  }
-
-  return absmax_val;
-}
-
-template <typename scalar_t, bool is_scale_inverted>
-__device__ void scaled_fp8_conversion_vec(FP8_TYPE* __restrict__ out,
-                                          scalar_t const* __restrict__ input,
-                                          float const scale,
-                                          int64_t const num_elems,
-                                          int const tid, int const step) {
-  // Vectorized input/output to better utilize memory bandwidth.
-  vec4_t<scalar_t> const* vectorized_in =
-      reinterpret_cast<vec4_t<scalar_t> const*>(input);
-  float8x4_t* vectorized_out = reinterpret_cast<float8x4_t*>(out);
-
-  int64_t const num_vec_elems = num_elems >> 2;
-
-#pragma unroll 4
-  for (int64_t i = tid; i < num_vec_elems; i += step) {
-    vec4_t<scalar_t> in_vec = vectorized_in[i];
-    float8x4_t out_vec;
-
-    out_vec.x = scaled_fp8_conversion<is_scale_inverted>(
-        static_cast<float>(in_vec.x), scale);
-    out_vec.y = scaled_fp8_conversion<is_scale_inverted>(
-        static_cast<float>(in_vec.y), scale);
-    out_vec.z = scaled_fp8_conversion<is_scale_inverted>(
-        static_cast<float>(in_vec.z), scale);
-    out_vec.w = scaled_fp8_conversion<is_scale_inverted>(
-        static_cast<float>(in_vec.w), scale);
-    vectorized_out[i] = out_vec;
-  }
-
-  // Handle the remaining elements if num_elems is not divisible by 4
-  for (int64_t i = num_vec_elems * 4 + tid; i < num_elems; i += step) {
-    out[i] = scaled_fp8_conversion<is_scale_inverted>(
-        static_cast<float>(input[i]), scale);
-  }
-}
-
 template <typename scalar_t>
 __global__ void scaled_fp8_quant_kernel(FP8_TYPE* __restrict__ out,
                                         const scalar_t* __restrict__ input,
diff --git a/csrc/quantization/fp8/common.cuh b/csrc/quantization/fp8/common.cuh
new file mode 100644
index 00000000000..d7c0297d533
--- /dev/null
+++ b/csrc/quantization/fp8/common.cuh
@@ -0,0 +1,172 @@
+#pragma once
+
+#include <cmath>
+
+#ifndef USE_ROCM
+  #include <c10/util/Float8_e4m3fn.h>
+using FP8_TYPE = c10::Float8_e4m3fn;
+C10_HOST_DEVICE constexpr auto FP8_E4M3_MAX =
+    std::numeric_limits<FP8_TYPE>::max();
+#else
+  #include <c10/util/Float8_e4m3fnuz.h>
+  #include "amd/hip_float8.h"
+using FP8_TYPE = c10::Float8_e4m3fnuz;
+// Using the default max value from pytorch (240.0) will cause accuracy
+// issue when running dynamic quantization. Here use 224.0f for rocm.
+constexpr auto FP8_E4M3_MAX = 224.0f;
+#endif
+
+namespace vllm {
+
+__device__ __forceinline__ float atomicMaxFloat(float* addr, float value) {
+  float old;
+  old = (value >= 0)
+            ? __int_as_float(atomicMax((int*)addr, __float_as_int(value)))
+            : __uint_as_float(
+                  atomicMin((unsigned int*)addr, __float_as_uint(value)));
+
+  return old;
+}
+
+template <bool is_scale_inverted>
+__device__ __forceinline__ FP8_TYPE scaled_fp8_conversion(float const val,
+                                                          float const scale) {
+  float x = 0.0f;
+  if constexpr (is_scale_inverted) {
+    x = val * scale;
+  } else {
+    x = val / scale;
+  }
+
+  float r = fmax(-FP8_E4M3_MAX, fmin(x, FP8_E4M3_MAX));
+#ifndef USE_ROCM
+  return static_cast<c10::Float8_e4m3fn>(r);
+#else
+  // Use hardware cvt instruction for fp8 on rocm
+  return c10::Float8_e4m3fnuz(hip_fp8(r).data,
+                              c10::Float8_e4m3fnuz::from_bits());
+#endif
+}
+
+// Compute the absolute maximum m of the input tensor and store
+// m / float8_e4m3::max() in *scale. Each thread block performs a
+// reduction tree and the memory in scale is atomically updated.
+// So to get the right answer, *scale needs to be initialized to
+// a value <= 0.0 and we need to wait for all thread blocks to
+// finish before consuming *scale.
+template <typename scalar_t>
+__global__ void segmented_max_reduction(float* __restrict__ scale,
+                                        const scalar_t* __restrict__ input,
+                                        int64_t num_elems) {
+  __shared__ float cache[1024];
+  int64_t i = blockDim.x * blockIdx.x + threadIdx.x;
+
+  // First store maximum for all values processes by
+  // the current thread in cache[threadIdx.x]
+  scalar_t tmp = 0.0;
+  while (i < num_elems) {
+    float x = static_cast<float>(input[i]);
+    tmp = max(tmp, fabs(x));
+    i += blockDim.x * gridDim.x;
+  }
+  cache[threadIdx.x] = tmp;
+
+  __syncthreads();
+
+  // Now perform parallel reduction within the thread block
+  int ib = blockDim.x / 2;
+  while (ib != 0) {
+    if (threadIdx.x < ib && cache[threadIdx.x + ib] > cache[threadIdx.x]) {
+      cache[threadIdx.x] = cache[threadIdx.x + ib];
+    }
+    __syncthreads();
+    ib /= 2;
+  }
+  // Finally, since cache[0] contains the maximum for this thread block,
+  // atomically write the max to the target location
+  if (threadIdx.x == 0) {
+    atomicMaxFloat(scale, cache[0] / FP8_E4M3_MAX);
+  }
+}
+
+template <typename scalar_t>
+struct __align__(8) vec4_t {
+  scalar_t x;
+  scalar_t y;
+  scalar_t z;
+  scalar_t w;
+};
+
+typedef struct __align__(4) {
+  FP8_TYPE x;
+  FP8_TYPE y;
+  FP8_TYPE z;
+  FP8_TYPE w;
+}
+float8x4_t;
+
+template <typename scalar_t>
+__device__ float thread_max_vec(scalar_t const* __restrict__ input,
+                                int64_t const num_elems, int const tid,
+                                int const step) {
+  // Vectorized input/output to better utilize memory bandwidth.
+  vec4_t<scalar_t> const* vectorized_in =
+      reinterpret_cast<vec4_t<scalar_t> const*>(input);
+
+  int64_t const num_vec_elems = num_elems >> 2;
+  float absmax_val = 0.0f;
+
+#pragma unroll 4
+  for (int64_t i = tid; i < num_vec_elems; i += step) {
+    vec4_t<scalar_t> in_vec = vectorized_in[i];
+    absmax_val = max(absmax_val, fabs(in_vec.x));
+    absmax_val = max(absmax_val, fabs(in_vec.y));
+    absmax_val = max(absmax_val, fabs(in_vec.z));
+    absmax_val = max(absmax_val, fabs(in_vec.w));
+  }
+
+  // Handle the remaining elements if num_elems is not divisible by 4
+  for (int64_t i = num_vec_elems * 4 + tid; i < num_elems; i += step) {
+    absmax_val = max(absmax_val, fabs(input[i]));
+  }
+
+  return absmax_val;
+}
+
+template <typename scalar_t, bool is_scale_inverted>
+__device__ void scaled_fp8_conversion_vec(FP8_TYPE* __restrict__ out,
+                                          scalar_t const* __restrict__ input,
+                                          float const scale,
+                                          int64_t const num_elems,
+                                          int const tid, int const step) {
+  // Vectorized input/output to better utilize memory bandwidth.
+  vec4_t<scalar_t> const* vectorized_in =
+      reinterpret_cast<vec4_t<scalar_t> const*>(input);
+  float8x4_t* vectorized_out = reinterpret_cast<float8x4_t*>(out);
+
+  int64_t const num_vec_elems = num_elems >> 2;
+
+#pragma unroll 4
+  for (int64_t i = tid; i < num_vec_elems; i += step) {
+    vec4_t<scalar_t> in_vec = vectorized_in[i];
+    float8x4_t out_vec;
+
+    out_vec.x = scaled_fp8_conversion<is_scale_inverted>(
+        static_cast<float>(in_vec.x), scale);
+    out_vec.y = scaled_fp8_conversion<is_scale_inverted>(
+        static_cast<float>(in_vec.y), scale);
+    out_vec.z = scaled_fp8_conversion<is_scale_inverted>(
+        static_cast<float>(in_vec.z), scale);
+    out_vec.w = scaled_fp8_conversion<is_scale_inverted>(
+        static_cast<float>(in_vec.w), scale);
+    vectorized_out[i] = out_vec;
+  }
+
+  // Handle the remaining elements if num_elems is not divisible by 4
+  for (int64_t i = num_vec_elems * 4 + tid; i < num_elems; i += step) {
+    out[i] = scaled_fp8_conversion<is_scale_inverted>(
+        static_cast<float>(input[i]), scale);
+  }
+}
+
+}  // namespace vllm
\ No newline at end of file
diff --git a/csrc/torch_bindings.cpp b/csrc/torch_bindings.cpp
index 971a45d50ff..229fd554d3e 100644
--- a/csrc/torch_bindings.cpp
+++ b/csrc/torch_bindings.cpp
@@ -101,7 +101,7 @@ TORCH_LIBRARY_EXPAND(TORCH_EXTENSION_NAME, ops) {
   // Layernorm
   // Apply Root Mean Square (RMS) Normalization to the input tensor.
   ops.def(
-      "rms_norm(Tensor! out, Tensor input, Tensor weight, float epsilon) -> "
+      "rms_norm(Tensor! result, Tensor input, Tensor weight, float epsilon) -> "
       "()");
   ops.impl("rms_norm", torch::kCUDA, &rms_norm);
 
@@ -111,6 +111,23 @@ TORCH_LIBRARY_EXPAND(TORCH_EXTENSION_NAME, ops) {
       "float epsilon) -> ()");
   ops.impl("fused_add_rms_norm", torch::kCUDA, &fused_add_rms_norm);
 
+  // Layernorm-quant
+  // Apply Root Mean Square (RMS) Normalization to the input tensor.
+  ops.def(
+      "rms_norm_static_fp8_quant(Tensor! result, Tensor input, Tensor weight, "
+      "Tensor scale, float epsilon) -> "
+      "()");
+  ops.impl("rms_norm_static_fp8_quant", torch::kCUDA,
+           &rms_norm_static_fp8_quant);
+
+  // In-place fused Add and RMS Normalization.
+  ops.def(
+      "fused_add_rms_norm_static_fp8_quant(Tensor! result, Tensor input, "
+      "Tensor! residual, Tensor weight, "
+      "Tensor scale, float epsilon) -> ()");
+  ops.impl("fused_add_rms_norm_static_fp8_quant", torch::kCUDA,
+           &fused_add_rms_norm_static_fp8_quant);
+
   // Rotary embedding
   // Apply GPT-NeoX or GPT-J style rotary embedding to query and key.
   ops.def(
@@ -322,18 +339,20 @@ TORCH_LIBRARY_EXPAND(TORCH_EXTENSION_NAME, ops) {
 
   // Compute FP8 quantized tensor for given scaling factor.
   ops.def(
-      "static_scaled_fp8_quant(Tensor! out, Tensor input, Tensor scale) -> ()");
+      "static_scaled_fp8_quant(Tensor! result, Tensor input, Tensor scale) -> "
+      "()");
   ops.impl("static_scaled_fp8_quant", torch::kCUDA, &static_scaled_fp8_quant);
 
   // Compute dynamic-per-tensor FP8 quantized tensor and scaling factor.
   ops.def(
-      "dynamic_scaled_fp8_quant(Tensor! out, Tensor input, Tensor! scale) -> "
+      "dynamic_scaled_fp8_quant(Tensor! result, Tensor input, Tensor! scale) "
+      "-> "
       "()");
   ops.impl("dynamic_scaled_fp8_quant", torch::kCUDA, &dynamic_scaled_fp8_quant);
 
   // Compute dynamic-per-token FP8 quantized tensor and scaling factor.
   ops.def(
-      "dynamic_per_token_scaled_fp8_quant(Tensor! out, Tensor input, "
+      "dynamic_per_token_scaled_fp8_quant(Tensor! result, Tensor input, "
       "Tensor! scale, Tensor? scale_ub) -> "
       "()");
   ops.impl("dynamic_per_token_scaled_fp8_quant", torch::kCUDA,
@@ -341,13 +360,13 @@ TORCH_LIBRARY_EXPAND(TORCH_EXTENSION_NAME, ops) {
 
   // Compute int8 quantized tensor for given scaling factor.
   ops.def(
-      "static_scaled_int8_quant(Tensor! out, Tensor input, Tensor scale,"
+      "static_scaled_int8_quant(Tensor! result, Tensor input, Tensor scale,"
       "Tensor? azp) -> ()");
   ops.impl("static_scaled_int8_quant", torch::kCUDA, &static_scaled_int8_quant);
 
   // Compute int8 quantized tensor and scaling factor
   ops.def(
-      "dynamic_scaled_int8_quant(Tensor! out, Tensor input, Tensor! scale, "
+      "dynamic_scaled_int8_quant(Tensor! result, Tensor input, Tensor! scale, "
       "Tensor!? azp) -> ()");
   ops.impl("dynamic_scaled_int8_quant", torch::kCUDA,
            &dynamic_scaled_int8_quant);
diff --git a/csrc/type_convert.cuh b/csrc/type_convert.cuh
new file mode 100644
index 00000000000..21b9d0ae515
--- /dev/null
+++ b/csrc/type_convert.cuh
@@ -0,0 +1,165 @@
+#pragma once
+
+#include <torch/all.h>
+
+#ifndef USE_ROCM
+  #include <cuda_bf16.h>
+  #include <cuda_fp16.h>
+#else
+  #include <hip/hip_bf16.h>
+  #include <hip/hip_fp16.h>
+
+using __nv_bfloat16 = __hip_bfloat16;
+using __nv_bfloat162 = __hip_bfloat162;
+#endif
+
+namespace vllm {
+/* Converter structs for the conversion from torch types to HIP/CUDA types,
+   and the associated type conversions within HIP/CUDA. These helpers need
+   to be implemented for now because the relevant type conversion
+   operators/constructors are not consistently implemented by HIP/CUDA, so
+   a generic conversion via type casts cannot be implemented.
+
+   Each struct should have the member static constexpr bool `exists`:
+   If false, the optimized kernel is not used for the corresponding torch type.
+   If true, the struct should be fully defined as shown in the examples below.
+ */
+template <typename torch_type>
+struct _typeConvert {
+  static constexpr bool exists = false;
+};
+
+#if defined(USE_ROCM) || (defined(CUDA_VERSION) && (CUDA_VERSION >= 12000))
+// CUDA < 12.0 runs into issues with packed type conversion
+template <>
+struct _typeConvert<c10::Half> {
+  static constexpr bool exists = true;
+  using hip_type = __half;
+  using packed_hip_type = __half2;
+
+  __device__ static inline float convert(hip_type x) { return __half2float(x); }
+  __device__ static inline float2 convert(packed_hip_type x) {
+    return __half22float2(x);
+  }
+  __device__ static inline hip_type convert(float x) {
+    return __float2half_rn(x);
+  }
+  __device__ static inline packed_hip_type convert(float2 x) {
+    return __float22half2_rn(x);
+  }
+};
+
+  #if defined(__CUDA_ARCH__) && __CUDA_ARCH__ >= 800
+// CUDA_ARCH < 800 does not have BF16 support
+// TODO: Add in ROCm support once public headers handle bf16 maturely
+template <>
+struct _typeConvert<c10::BFloat16> {
+  static constexpr bool exists = true;
+  using hip_type = __nv_bfloat16;
+  using packed_hip_type = __nv_bfloat162;
+
+  __device__ static inline float convert(hip_type x) {
+    return __bfloat162float(x);
+  }
+  __device__ static inline float2 convert(packed_hip_type x) {
+    return __bfloat1622float2(x);
+  }
+  __device__ static inline hip_type convert(float x) {
+    return __float2bfloat16(x);
+  }
+  __device__ static inline packed_hip_type convert(float2 x) {
+    return __float22bfloat162_rn(x);
+  }
+};
+  #endif  // defined(__CUDA_ARCH__) && __CUDA_ARCH__ >= 800
+#endif    // defined(USE_ROCM) || (defined(CUDA_VERSION) && (CUDA_VERSION >=
+          // 12000))
+
+/* Vector POD struct to generate vectorized and packed FP16/BF16 ops
+   for appropriate specializations of fused_add_rms_norm_kernel.
+   Only functions that are necessary in that kernel are implemented.
+   Alignment to 16 bytes is required to use 128-bit global memory ops.
+ */
+template <typename scalar_t, int width>
+struct alignas(16) _f16Vec {
+  /* Not theoretically necessary that width is a power of 2 but should
+     almost always be the case for optimization purposes */
+  static_assert(width > 0 && (width & (width - 1)) == 0,
+                "Width is not a positive power of 2!");
+  using Converter = _typeConvert<scalar_t>;
+  using T1 = typename Converter::hip_type;
+  using T2 = typename Converter::packed_hip_type;
+  T1 data[width];
+
+  __device__ _f16Vec& operator+=(const _f16Vec<scalar_t, width>& other) {
+    if constexpr (width % 2 == 0) {
+#pragma unroll
+      for (int i = 0; i < width; i += 2) {
+        T2 temp{data[i], data[i + 1]};
+        temp += T2{other.data[i], other.data[i + 1]};
+        data[i] = temp.x;
+        data[i + 1] = temp.y;
+      }
+    } else {
+#pragma unroll
+      for (int i = 0; i < width; ++i) data[i] += other.data[i];
+    }
+    return *this;
+  }
+
+  __device__ _f16Vec& operator*=(const _f16Vec<scalar_t, width>& other) {
+    if constexpr (width % 2 == 0) {
+#pragma unroll
+      for (int i = 0; i < width; i += 2) {
+        T2 temp{data[i], data[i + 1]};
+        temp *= T2{other.data[i], other.data[i + 1]};
+        data[i] = temp.x;
+        data[i + 1] = temp.y;
+      }
+    } else {
+#pragma unroll
+      for (int i = 0; i < width; ++i) data[i] *= other.data[i];
+    }
+    return *this;
+  }
+
+  __device__ _f16Vec& operator*=(const float scale) {
+    if constexpr (width % 2 == 0) {
+#pragma unroll
+      for (int i = 0; i < width; i += 2) {
+        float2 temp_f = Converter::convert(T2{data[i], data[i + 1]});
+        temp_f.x *= scale;
+        temp_f.y *= scale;
+        T2 temp = Converter::convert(temp_f);
+        data[i] = temp.x;
+        data[i + 1] = temp.y;
+      }
+    } else {
+#pragma unroll
+      for (int i = 0; i < width; ++i) {
+        float temp = Converter::convert(data[i]) * scale;
+        data[i] = Converter::convert(temp);
+      }
+    }
+    return *this;
+  }
+
+  __device__ float sum_squares() const {
+    float result = 0.0f;
+    if constexpr (width % 2 == 0) {
+#pragma unroll
+      for (int i = 0; i < width; i += 2) {
+        float2 z = Converter::convert(T2{data[i], data[i + 1]});
+        result += z.x * z.x + z.y * z.y;
+      }
+    } else {
+#pragma unroll
+      for (int i = 0; i < width; ++i) {
+        float x = Converter::convert(data[i]);
+        result += x * x;
+      }
+    }
+    return result;
+  }
+};
+}  // namespace vllm
\ No newline at end of file
diff --git a/tests/compile/backend.py b/tests/compile/backend.py
new file mode 100644
index 00000000000..9d5c6827437
--- /dev/null
+++ b/tests/compile/backend.py
@@ -0,0 +1,33 @@
+from copy import deepcopy
+from typing import Callable
+
+import torch
+
+
+class TestBackend:
+    """
+    This class provides a simple Inductor backend that can be used for testing.
+    It takes a list of custom passes and runs them after Inductor's passes.
+    It also saves the graph before and after the custom passes for inspection.
+    """
+
+    def __init__(self, *args: Callable[[torch.fx.Graph], None]):
+        self.custom_passes = args
+        from torch._inductor import config
+        self.current_config = config.shallow_copy_dict()
+        self.current_config['post_grad_custom_post_pass'] = self.post_pass
+
+    def __call__(self, graph: torch.fx.GraphModule, example_inputs):
+        from torch._inductor.compile_fx import compile_fx
+        return compile_fx(graph,
+                          example_inputs,
+                          config_patches=self.current_config)
+
+    def post_pass(self, graph: torch.fx.Graph):
+        self.graph_pre_pass = deepcopy(graph)
+        for pass_ in self.custom_passes:
+            pass_(graph)
+
+        self.graph_post_pass = deepcopy(graph)
+        # assign by reference, will reflect the final state of the graph
+        self.final_graph = graph
diff --git a/tests/compile/test_fusion.py b/tests/compile/test_fusion.py
new file mode 100644
index 00000000000..e4d3defafb9
--- /dev/null
+++ b/tests/compile/test_fusion.py
@@ -0,0 +1,92 @@
+import pytest
+import torch
+from compressed_tensors.quantization import FP8_DTYPE
+
+import vllm.envs as envs
+from vllm.compilation.config import CompilationConfig
+from vllm.compilation.fusion import (FusionPass, find_auto_fn,
+                                     find_auto_fn_maybe)
+from vllm.compilation.reshapes import RedundantReshapesPass
+from vllm.model_executor.layers.layernorm import RMSNorm
+from vllm.model_executor.layers.quantization.utils.w8a8_utils import (
+    apply_fp8_linear)
+
+from .backend import TestBackend
+
+
+class TestModel(torch.nn.Module):
+
+    def __init__(self, hidden_size: int, eps: float, *args, **kwargs):
+        super().__init__(*args, **kwargs)
+        self.norm = [RMSNorm(hidden_size, eps) for _ in range(3)]
+        self.scale = [torch.rand(1, dtype=torch.float32) for _ in range(4)]
+        self.w = [
+            torch.rand(hidden_size, hidden_size).to(dtype=FP8_DTYPE).t()
+            for _ in range(2)
+        ]
+
+    def forward(self, x):
+        resid = torch.relu(x)
+        y = self.norm[0](x)
+
+        x2 = apply_fp8_linear(y, self.w[0], self.scale[0], self.scale[1])
+        # make sure resid is used for replacement to work
+        y2, resid = self.norm[1](x2, resid)
+
+        x3 = apply_fp8_linear(y2, self.w[1], self.scale[2], self.scale[3])
+        y3, resid = self.norm[2](x3, resid)  # use resid here
+        return y3
+
+
+# Init does pattern registration, which can only happen once
+config = CompilationConfig(enable_fusion=True)
+reshape_pass = RedundantReshapesPass(config)
+fusion_pass = FusionPass.instance(config)
+
+
+@pytest.mark.parametrize("dtype", [torch.float16, torch.bfloat16])
+@pytest.mark.parametrize("hidden_size", [64, 3392, 4096])
+@pytest.mark.parametrize("num_tokens", [7, 256, 533, 2048, 2049])
+@pytest.mark.parametrize("eps", [1e-5, 1e-6])
+@pytest.mark.skipif(envs.VLLM_TARGET_DEVICE != "cuda",
+                    reason="Only test on CUDA")
+def test_fusion_rmsnorm_quant(dtype, hidden_size, num_tokens, eps):
+    torch.set_default_device("cuda")
+    torch.set_default_dtype(torch.float16)
+
+    if eps != 1e-5:
+        pytest.skip("Only test eps=1e-5 for now")
+
+    # Reshape pass is needed for the fusion pass to work
+    backend = TestBackend(reshape_pass, fusion_pass)
+    model = TestModel(hidden_size, eps)
+
+    # First dimension dynamic
+    x = torch.rand(num_tokens, hidden_size)
+    torch._dynamo.mark_dynamic(x, 0)
+
+    result = model(x)
+
+    model2 = torch.compile(model, backend=backend)
+    result2 = model2(x)
+
+    # Check that it gives the same answer
+    torch.testing.assert_close(result, result2, atol=1e-3, rtol=1e-3)
+
+    # Check substitution worked
+    pre_nodes = backend.graph_pre_pass.nodes
+    post_nodes = backend.graph_post_pass.nodes
+
+    rms_quant = torch.ops._C.rms_norm_static_fp8_quant.default
+    add_rms_quant = torch.ops._C.fused_add_rms_norm_static_fp8_quant.default
+    fp8_quant = torch.ops._C.static_scaled_fp8_quant.default
+
+    # In pre-nodes, fp8 quant should be present and fused kernels should not
+    assert find_auto_fn_maybe(pre_nodes, rms_quant) is None
+    assert find_auto_fn_maybe(pre_nodes, add_rms_quant) is None
+    find_auto_fn(pre_nodes, fp8_quant)
+
+    # In post-nodes, fused kernels should be present and fp8 quant should not
+    find_auto_fn(post_nodes, rms_quant)
+    find_auto_fn(post_nodes, add_rms_quant)
+    assert find_auto_fn_maybe(post_nodes, fp8_quant) is None
diff --git a/tests/kernels/test_layernorm.py b/tests/kernels/test_layernorm.py
index 9dfa2cbe45e..727769e0718 100644
--- a/tests/kernels/test_layernorm.py
+++ b/tests/kernels/test_layernorm.py
@@ -1,13 +1,14 @@
 import pytest
 import torch
 
+from tests.kernels.quant_utils import FP8_DTYPE
 from tests.kernels.utils import opcheck
 from vllm.model_executor.layers.layernorm import RMSNorm
 from vllm.platforms import current_platform
 
 DTYPES = [torch.half, torch.bfloat16, torch.float]
 NUM_TOKENS = [7, 83, 4096]  # Arbitrary values for testing
-HIDDEN_SIZES = [768, 769, 770, 771, 5120, 5124, 5125, 5126, 8192,
+HIDDEN_SIZES = [8, 768, 769, 770, 771, 5120, 5124, 5125, 5126, 8192,
                 8199]  # Arbitrary values for testing
 ADD_RESIDUAL = [False, True]
 SEEDS = [0]
@@ -59,3 +60,75 @@ def test_rms_norm(
     else:
         opcheck(torch.ops._C.rms_norm,
                 (out, x, layer.weight.data, layer.variance_epsilon))
+
+
+@pytest.mark.parametrize("num_tokens", NUM_TOKENS)
+@pytest.mark.parametrize("hidden_size", HIDDEN_SIZES)
+@pytest.mark.parametrize("add_residual", ADD_RESIDUAL)
+@pytest.mark.parametrize("dtype", DTYPES)
+@pytest.mark.parametrize("quant_scale", [1.0, 0.01, 10.0])
+@pytest.mark.parametrize("seed", SEEDS)
+@pytest.mark.parametrize("device", CUDA_DEVICES)
+def test_fused_rms_norm_quant(
+    num_tokens: int,
+    hidden_size: int,
+    add_residual: bool,
+    dtype: torch.dtype,
+    quant_scale: float,
+    seed: int,
+    device: str,
+) -> None:
+    current_platform.seed_everything(seed)
+    torch.set_default_device(device)
+
+    weight = torch.empty(hidden_size, dtype=dtype).normal_(mean=1.0, std=0.1)
+    scale = 1 / (2 * hidden_size)
+    x = torch.randn(num_tokens, hidden_size, dtype=dtype)
+    x *= scale
+    if add_residual:
+        residual = torch.randn_like(x) * scale
+        residual_fused = residual.clone()
+    else:
+        residual = residual_fused = None
+
+    out_norm = torch.empty_like(x)
+    out_quant = torch.empty_like(x, dtype=FP8_DTYPE)
+    out_quant_fused = torch.empty_like(out_quant)
+
+    quant_scale_t = torch.tensor(quant_scale, dtype=torch.float32)
+
+    if add_residual:
+        torch.ops._C.fused_add_rms_norm_static_fp8_quant(
+            out_quant_fused, x, residual_fused, weight, quant_scale_t, 1e-6)
+
+        # Unfused kernel is in-place so it goes second
+        # Also use a separate clone of x to avoid modifying the input
+        x_unfused = x.clone()
+        torch.ops._C.fused_add_rms_norm(x_unfused, residual, weight, 1e-6)
+        torch.ops._C.static_scaled_fp8_quant(out_quant, x_unfused,
+                                             quant_scale_t)
+
+        torch.cuda.synchronize()
+        torch.testing.assert_close(residual_fused,
+                                   residual,
+                                   atol=1e-2,
+                                   rtol=1e-2)
+
+        opcheck(
+            torch.ops._C.fused_add_rms_norm_static_fp8_quant,
+            (out_quant_fused, x, residual_fused, weight, quant_scale_t, 1e-6))
+    else:
+        torch.ops._C.rms_norm_static_fp8_quant(out_quant_fused, x, weight,
+                                               quant_scale_t, 1e-6)
+
+        torch.ops._C.rms_norm(out_norm, x, weight, 1e-6)
+        torch.ops._C.static_scaled_fp8_quant(out_quant, out_norm,
+                                             quant_scale_t)
+
+        opcheck(torch.ops._C.rms_norm_static_fp8_quant,
+                (out_quant_fused, x, weight, quant_scale_t, 1e-6))
+
+    torch.testing.assert_close(out_quant_fused.to(dtype=torch.float32),
+                               out_quant.to(dtype=torch.float32),
+                               atol=1e-3,
+                               rtol=1e-3)
diff --git a/vllm/compilation/backends.py b/vllm/compilation/backends.py
index abd1d16acca..f5fff344a1f 100644
--- a/vllm/compilation/backends.py
+++ b/vllm/compilation/backends.py
@@ -2,7 +2,8 @@
 import dataclasses
 import operator
 from contextlib import ExitStack
-from typing import Any, Callable, Dict, List, Optional, Set, Tuple, Union
+from typing import (Any, Callable, Dict, List, Optional, Sequence, Set, Tuple,
+                    Union)
 from unittest.mock import patch
 
 import torch
@@ -10,11 +11,13 @@
 
 import vllm.envs as envs
 from vllm.logger import init_logger
-from vllm.utils import weak_ref_tensors
+from vllm.utils import combine_fx_passes, weak_ref_tensors
 
 from .config import CompilationConfig
 from .counter import compilation_counter
+from .fusion import FusionPass
 from .levels import CompilationLevel
+from .reshapes import RedundantReshapesPass
 
 logger = init_logger(__name__)
 
@@ -99,28 +102,74 @@ def fix_functionalization(graph: fx.Graph):
                         user.replace_all_uses_with(replace_node)
                         nodes_to_remove.append(user)
                 nodes_to_remove.append(node)
+            elif (node.args[0] ==
+                  torch.ops._C.fused_add_rms_norm_static_fp8_quant.default):
+                # manual replace for fused_add_rms_norm_static_fp8_quant
+                # this is the most effective optimization for llama
+                # failing to do this will result in many unnecessary copies
+
+                kwargs = node.kwargs
+
+                result = kwargs['result']
+                residual = kwargs['residual']
+
+                # Create a new call to
+                # torch.ops._C.fused_add_rms_norm_static_fp8_quant.default
+                with graph.inserting_before(node):
+                    # just insert the call to the custom op
+                    # NOTE: don't run dead code elimination,
+                    # otherwise this op will be removed
+                    graph.call_function(
+                        torch.ops._C.fused_add_rms_norm_static_fp8_quant.
+                        default,
+                        kwargs=kwargs)
+
+                for user in list(node.users):
+                    if user.op == 'call_function' and user.target == operator.getitem:  # noqa
+                        # Remove the getitem node
+                        if user.args[1] == 1:
+                            replace_node = result
+                        elif user.args[1] == 2:
+                            replace_node = residual
+                        user.replace_all_uses_with(replace_node)
+                        nodes_to_remove.append(user)
+                nodes_to_remove.append(node)
 
             elif node.args[0] == torch.ops._C.rms_norm.default:
                 # manual replace for rms_norm
 
                 kwargs = node.kwargs
 
-                input = kwargs['input']
-                out = kwargs['out']
-                weight = kwargs['weight']
-                epsilon = kwargs['epsilon']
-                # Create a new call to torch.ops._C.rotary_embedding.default
-                # cannot use kwargs, because we have an `out`, see https://github.com/pytorch/pytorch/blob/a00faf440888ffb724bad413f329a49e2b6388e7/torch/_inductor/lowering.py#L351 # noqa
+                replace_node = kwargs['result']
+                # Create a new call to torch.ops._C.rms_norm.default
                 with graph.inserting_before(node):
                     # just insert the call to the custom op
                     # NOTE: don't run dead code elimination,
                     # otherwise this op will be removed
-                    graph.call_function(
-                        torch.ops._C.rms_norm.default,
-                        args=(out, input, weight, epsilon),
-                    )
+                    graph.call_function(torch.ops._C.rms_norm.default,
+                                        kwargs=kwargs)
 
-                replace_node = out
+                for user in list(node.users):
+                    if user.op == 'call_function' and user.target == operator.getitem:  # noqa
+                        user.replace_all_uses_with(replace_node)
+                        nodes_to_remove.append(user)
+                nodes_to_remove.append(node)
+
+            elif node.args[
+                    0] == torch.ops._C.rms_norm_static_fp8_quant.default:  # noqa
+                # manual replace for rms_norm_static_fp8_quant
+
+                kwargs = node.kwargs
+
+                replace_node = kwargs['result']
+                # Create a new call to torch.ops._C.rms_norm_static_fp8_quant.default  # noqa
+                with graph.inserting_before(node):
+                    # just insert the call to the custom op
+                    # NOTE: don't run dead code elimination,
+                    # otherwise this op will be removed
+                    graph.call_function(
+                        torch.ops._C.rms_norm_static_fp8_quant.default,
+                        kwargs=kwargs)
 
                 for user in list(node.users):
                     if user.op == 'call_function' and user.target == operator.getitem:  # noqa
@@ -136,7 +185,7 @@ def fix_functionalization(graph: fx.Graph):
                 input = kwargs['input']
                 out = kwargs['out']
 
-                # Create a new call to torch.ops._C.rotary_embedding.default
+                # Create a new call to torch.ops._C.silu_and_mul.default
                 # cannot use kwargs, because we have an `out`, see https://github.com/pytorch/pytorch/blob/a00faf440888ffb724bad413f329a49e2b6388e7/torch/_inductor/lowering.py#L351 # noqa
                 with graph.inserting_before(node):
                     # just insert the call to the custom op
@@ -319,6 +368,13 @@ class VllmBackend:
 
     The major work of this backend is to split the graph into
     piecewise graphs, and pass them to the piecewise backend.
+
+    This backend also handles custom passes and adds them to Inductor config.
+    The order of the post-grad post-passes is:
+    1. post_grad_passes (constructor parameter)
+    2. config["post_grad_custom_post_pass"]
+    3. fix_functionalization
+    This way, all passes operate on a functionalized graph.
     """
 
     compilation_configs: CompilationConfig
@@ -330,8 +386,10 @@ class VllmBackend:
     split_gm: fx.GraphModule
     piecewise_graphs: List[SplitItem]
     returned_callable: Callable
+    # Inductor passes to run on the graph pre-defunctionalization
+    post_grad_passes: Sequence[Callable]
 
-    def __init__(self, ):
+    def __init__(self, post_grad_passes: Sequence[Callable] = ()):
         global global_graph_pool
         if global_graph_pool is None:
             global_graph_pool = torch.cuda.graph_pool_handle()
@@ -340,10 +398,30 @@ def __init__(self, ):
         # streams, it might not be safe to share a global pool.
         # only investigate this when we use multiple streams
         self.graph_pool = global_graph_pool
+        self.post_grad_passes = post_grad_passes
 
         # `torch.compile` is JIT compiled, so we don't need to
         # do anything here
 
+    def add_passes_to_config(self):
+        config = self.compilation_configs
+        passes = list(self.post_grad_passes)
+
+        passes = passes + [RedundantReshapesPass(config)]
+
+        if config.enable_fusion:
+            passes = passes + [FusionPass.instance(config)]
+
+        inductor_config = config.inductor_compile_config
+        if "post_grad_custom_post_pass" in inductor_config:
+            passes = passes + [inductor_config["post_grad_custom_post_pass"]]
+
+        # add the fix_functionalization pass last, so that all other
+        # passes operate on a functionalized graph
+        passes = passes + [fix_functionalization]
+        combined_pass = combine_fx_passes(passes)
+        inductor_config["post_grad_custom_post_pass"] = combined_pass
+
     def __call__(self, graph: fx.GraphModule, example_inputs) -> Callable:
 
         compilation_counter.num_graphs_seen += 1
@@ -357,6 +435,7 @@ def __call__(self, graph: fx.GraphModule, example_inputs) -> Callable:
         # we get the sizes to capture for cudagraph
         # from compilation context
         self.compilation_configs = CompilationConfig.select_and_init_config()
+        self.add_passes_to_config()
 
         self.split_gm, self.piecewise_graphs = split_graph(
             graph, self.compilation_configs.non_cudagraph_ops)
diff --git a/vllm/compilation/config.py b/vllm/compilation/config.py
index 514f2b93ef6..72377533140 100644
--- a/vllm/compilation/config.py
+++ b/vllm/compilation/config.py
@@ -1,4 +1,5 @@
 import copy
+from pathlib import Path
 from typing import Any, Dict, List, Optional
 
 from pydantic import BaseModel, Field, PrivateAttr
@@ -50,6 +51,12 @@ class CompilationConfig(BaseModel):
             name because the config uses json format. If we pass the config
             from Python, functions can also be passed directly via Python object
             constructor, e.g. `CompilationConfig(inductor_passes={"a": func})`
+    - Custom inductor passes:
+        - dump_graph_stages: list of stages for which we want to dump the graph.
+            Each pass defines its own stages (before, after, maybe in-between).
+        - dump_graph_dir: directory to dump the graph. Default is .
+        - enable_fusion: whether to enable the custom fusion pass.
+            TODO better pass enabling system.
     
     Why we have different sizes for cudagraph and inductor:
     - cudagraph: a cudagraph captured for a specific size can only be used
@@ -72,6 +79,10 @@ class CompilationConfig(BaseModel):
     cudagraph_num_of_warmups: int = 0
     cudagraph_capture_sizes: Optional[List[int]] = None
 
+    dump_graph_stages: List[str] = Field(default_factory=list)
+    dump_graph_dir: Path = Field(default=Path("."))
+    enable_fusion: bool = True
+
     # not configurable, computed after init
     compile_sizes: List[int] = PrivateAttr
     capture_sizes: List[int] = PrivateAttr
@@ -81,7 +92,7 @@ def model_post_init(self, __context: Any) -> None:
             if not isinstance(v, str):
                 assert callable(v), (
                     f"pass {k} should be a function or a qualified name")
-                self.inductor_passes[k] = v
+                self.inductor_compile_config[k] = v
                 continue
 
             # resolve function from qualified name
@@ -91,18 +102,6 @@ def model_post_init(self, __context: Any) -> None:
             func = __import__(module).__dict__[func_name]
             self.inductor_compile_config[k] = func
 
-        from vllm.compilation.backends import fix_functionalization
-        from vllm.utils import combine_fx_passes
-        if "post_grad_custom_post_pass" in self.inductor_compile_config:
-            self.inductor_compile_config[
-                "post_grad_custom_post_pass"] = combine_fx_passes(
-                    fix_functionalization,
-                    self.inductor_compile_config["post_grad_custom_post_pass"],
-                )
-        else:
-            self.inductor_compile_config[
-                "post_grad_custom_post_pass"] = fix_functionalization
-
     def init_during_runtime(self):
         """To complete the initialization of config,
         we need to know the compile context, which is only available
diff --git a/vllm/compilation/fusion.py b/vllm/compilation/fusion.py
new file mode 100644
index 00000000000..2a0cf0002c9
--- /dev/null
+++ b/vllm/compilation/fusion.py
@@ -0,0 +1,291 @@
+import operator
+from typing import Iterable, List, Optional
+
+import torch
+from torch._higher_order_ops.auto_functionalize import auto_functionalized
+from torch._inductor.pattern_matcher import (Match, PatternMatcherPass,
+                                             fwd_only, register_replacement)
+
+from vllm.compilation.config import CompilationConfig
+from vllm.compilation.inductor_pass import InductorPass
+from vllm.logger import init_logger
+
+logger = init_logger(__name__)
+
+
+def rms_pattern_static(result: torch.Tensor, result_rms: torch.Tensor,
+                       input: torch.Tensor, weight: torch.Tensor,
+                       scale: torch.Tensor):
+    at1 = auto_functionalized(torch.ops._C.rms_norm.default,
+                              result=result_rms,
+                              input=input,
+                              weight=weight,
+                              epsilon=1e-5)
+    at2 = auto_functionalized(torch.ops._C.static_scaled_fp8_quant.default,
+                              result=result,
+                              input=at1[1],
+                              scale=scale)
+
+    # result
+    return at2[1]
+
+
+def rms_replacement_static(result: torch.Tensor, result_rms: torch.Tensor,
+                           input: torch.Tensor, weight: torch.Tensor,
+                           scale: torch.Tensor):
+    at = auto_functionalized(torch.ops._C.rms_norm_static_fp8_quant.default,
+                             result=result,
+                             input=input,
+                             weight=weight,
+                             scale=scale,
+                             epsilon=1e-5)
+
+    # result
+    return at[1]
+
+
+def rms_pattern_residual_static(result: torch.Tensor, input: torch.Tensor,
+                                residual: torch.Tensor, weight: torch.Tensor,
+                                scale: torch.Tensor):
+    at = auto_functionalized(torch.ops._C.fused_add_rms_norm.default,
+                             input=input,
+                             residual=residual,
+                             weight=weight,
+                             epsilon=1e-5)
+    at1 = auto_functionalized(torch.ops._C.static_scaled_fp8_quant.default,
+                              result=result,
+                              input=at[1],
+                              scale=scale)
+
+    # result, residual
+    return at1[1], at[2]
+
+
+def rms_replacement_residual_static(result: torch.Tensor, input: torch.Tensor,
+                                    residual: torch.Tensor,
+                                    weight: torch.Tensor, scale: torch.Tensor):
+    at = auto_functionalized(
+        torch.ops._C.fused_add_rms_norm_static_fp8_quant.default,
+        result=result,
+        input=input,
+        residual=residual,
+        weight=weight,
+        scale=scale,
+        epsilon=1e-5)
+    # result, residual
+    return at[1], at[2]
+
+
+def empty_bf16(*args, **kwargs):
+    return torch.empty(*args, **kwargs, dtype=torch.bfloat16, device="cuda")
+
+
+def empty_fp8(*args, **kwargs):
+    fp8 = torch.float8_e4m3fn
+    return torch.empty(*args, **kwargs, dtype=fp8, device="cuda")
+
+
+def empty_fp32(*args, **kwargs):
+    return torch.empty(*args, **kwargs, dtype=torch.float32, device="cuda")
+
+
+# Utilities for post-processing multi-output matches
+def is_func(node: torch.fx.Node, target) -> bool:
+    return node.op == "call_function" and node.target == target
+
+
+# Returns the first auto_functionalized node with the given op (if it exists)
+def find_auto_fn_maybe(nodes: Iterable[torch.fx.Node],
+                       op) -> Optional[torch.fx.Node]:
+    for node in nodes:
+        if is_func(node, auto_functionalized) and node.args[0] == op:  # noqa
+            return node
+    return None
+
+
+# Returns the first auto_functionalized node with the given op
+def find_auto_fn(nodes: Iterable[torch.fx.Node], op) -> torch.fx.Node:
+    node = find_auto_fn_maybe(nodes, op)
+    assert node is not None, f"Could not find {op} in nodes {nodes}"
+    return node
+
+
+# Returns the getitem node that extracts the idx-th element from node
+# (if it exists)
+def find_getitem_maybe(node: torch.fx.Node,
+                       idx: int) -> Optional[torch.fx.Node]:
+    for user in node.users:
+        if is_func(user, operator.getitem) and user.args[1] == idx:
+            return user
+    return None
+
+
+# Returns the getitem node that extracts the idx-th element from node
+def find_getitem(node: torch.fx.Node, idx: int) -> torch.fx.Node:
+    ret = find_getitem_maybe(node, idx)
+    assert ret is not None, f"Could not find getitem {idx} in node {node}"
+    return ret
+
+
+class FusionPass(InductorPass):
+    """
+    This pass fuses a pre-defined set of custom ops into fused ops.
+    It uses the torch pattern matcher to find the patterns and replace them.
+    It also manually processes multi-output matches, as those are broken in
+    the torch pattern matcher.
+
+    Because patterns can only be registered once, the pass is a singleton.
+    This will be addressed in a future version of PyTorch:
+    https://github.com/pytorch/pytorch/pull/139321#issuecomment-2452354980
+    """
+
+    _instance: 'Optional[FusionPass]' = None
+
+    @classmethod
+    def instance(cls, config: CompilationConfig):
+        """
+        Get the singleton instance of the FusionPass.
+        If the instance exists, the config is updated but
+        initialization is not repeated.
+        """
+        if cls._instance is None:
+            cls._instance = FusionPass(config)
+        else:
+            cls._instance.config = config
+        return cls._instance
+
+    def __init__(self, config: CompilationConfig):
+        assert self.__class__._instance is None, \
+            "FusionPass singleton instance already exists"
+        super().__init__(config)
+
+        self.matches: List[Match] = []
+        self.patterns: PatternMatcherPass = PatternMatcherPass(
+            pass_name="fusion_pass")
+
+        # Fuse rms_norm + static_scaled_fp8_quant into
+        # rms_norm_static_fp8_quant
+        inputs = [
+            empty_fp8(5, 4),
+            empty_bf16(5, 4),
+            empty_bf16(5, 4),
+            empty_bf16(1, 5),
+            empty_fp32(1, 1)
+        ]
+        register_replacement(rms_pattern_static, rms_replacement_static,
+                             inputs, fwd_only, self.patterns)
+
+        # Fuse fused_add_rms_norm + static_scaled_fp8_quant into
+        # fused_add_rms_norm_static_fp8_quant
+        # Because pattern has 2 outputs, we need to manually process the match
+        # (see process_matches)
+        inputs = [
+            empty_fp8(5, 4),
+            empty_bf16(5, 4),
+            empty_bf16(5, 4),
+            empty_bf16(1, 5),
+            empty_fp32(1, 1)
+        ]
+        register_replacement(rms_pattern_residual_static,
+                             rms_replacement_residual_static,
+                             inputs,
+                             fwd_only,
+                             self.patterns,
+                             extra_check=lambda m: self.record_match(m))
+
+    def record_match(self, match: Match) -> bool:
+        # Hijack the extra_check to record the match and
+        # save it for post-processing.
+        self.matches.append(match)
+
+        # Return False to prevent automatic replacement.
+        return False
+
+    def process_matches(self, graph: torch.fx.Graph):
+        """
+        Manually process multi-output matches and replace them with fused nodes.
+        This is necessary because the automatic replacement for multi-output
+        matches is broken: https://github.com/pytorch/pytorch/issues/137280
+        """
+        for match in self.matches:
+            # To avoid use-before-definition errors, insert replacement nodes
+            # after the last node in the match.
+            # match.nodes is not guaranteed to be sorted.
+            # Find the last node in the match.
+            for last_node_in_match in reversed(graph.nodes):
+                if last_node_in_match in match.nodes:
+                    break
+            else:
+                raise ValueError("No nodes in graph")
+
+            # Insert a new auto_functionalized node for the fused operation,
+            # as well as getitem nodes to extract the result and residual.
+            # The auto_functionalized node returns a tuple of
+            # (None, result, residual) - None is the function return value.
+            # The resulting graph looks like this:
+            # at = auto_functionalized(torch.ops._C.fused_add_rms_norm_static_fp8_quant.default, ...)  # noqa
+            # result_node_new = at[1]
+            # residual_node_new = at[2]
+            with graph.inserting_after(last_node_in_match):
+                kwargs = match.kwargs
+                kwargs["epsilon"] = 1e-5  # Currently hard-coded in RMSNorm
+
+                fused_node = graph.call_function(
+                    auto_functionalized,
+                    (torch.ops._C.fused_add_rms_norm_static_fp8_quant.default,
+                     ),
+                    kwargs=kwargs)
+
+                graph.inserting_after(fused_node)
+                result_node_new = graph.call_function(operator.getitem,
+                                                      (fused_node, 1))
+                residual_node_new = graph.call_function(
+                    operator.getitem, (fused_node, 2))
+
+            # Last part of replacement is rebinding the users of nodes in the
+            # match to use the new nodes.
+
+            # Find the nodes in the match that we need to rebind
+            rms_node = find_auto_fn(match.nodes,
+                                    torch.ops._C.fused_add_rms_norm.default)
+            quant_node = find_auto_fn(
+                match.nodes, torch.ops._C.static_scaled_fp8_quant.default)
+
+            assert len(rms_node.users) == 2
+            assert len(quant_node.users) == 1
+
+            # meta["val"] is used by de-functionalization and has to contain the
+            # value of the node (tuple of tensors) that would be returned by the
+            # functionalized node during tracing.
+
+            rms_tup = rms_node.meta["val"]
+            quant_tup = quant_node.meta["val"]
+
+            # The result of fused_node must be a tuple with the first element
+            # None (the function return value) and the remaining elements
+            # representing the mutated inputs.
+            fused_tup = (None, quant_tup[1], rms_tup[1], rms_tup[2])
+            fused_node.meta["val"] = fused_tup
+
+            # Find the getitem nodes and replace their uses with the new nodes.
+            # The old nodes will be removed by DCE at the end of the pass.
+            find_getitem(rms_node, 2).replace_all_uses_with(residual_node_new)
+            find_getitem(quant_node, 1).replace_all_uses_with(result_node_new)
+
+        # Finally, remove matched nodes
+        graph.eliminate_dead_code()
+        assert all(node not in graph.nodes for match in self.matches
+                   for node in match.nodes)
+
+    def __call__(self, graph: torch.fx.Graph):
+        self.dump_graph(graph, "before_fusion")
+
+        count = self.patterns.apply(graph)
+        logger.info("Replaced %s patterns", count)
+        self.dump_graph(graph, "after_pattern_match")
+
+        # Manually process multi-output matches (and run DCE)
+        self.process_matches(graph)
+        logger.info("Post-processed %s matches", len(self.matches))
+        self.dump_graph(graph, "after_fusion")
+        self.matches.clear()
diff --git a/vllm/compilation/inductor_pass.py b/vllm/compilation/inductor_pass.py
new file mode 100644
index 00000000000..b23351fa197
--- /dev/null
+++ b/vllm/compilation/inductor_pass.py
@@ -0,0 +1,38 @@
+from abc import ABC, abstractmethod
+
+import torch
+
+from vllm.compilation.config import CompilationConfig
+# yapf: disable
+from vllm.distributed import get_tensor_model_parallel_rank as get_tp_rank
+from vllm.distributed import (
+    get_tensor_model_parallel_world_size as get_tp_world_size)
+from vllm.distributed import model_parallel_is_initialized as p_is_init
+# yapf: enable
+from vllm.logger import init_logger
+
+logger = init_logger(__name__)
+
+
+class InductorPass(ABC):
+
+    @abstractmethod
+    def __call__(self, graph: torch.fx.Graph):
+        raise NotImplementedError
+
+    def __init__(self, config: CompilationConfig):
+        self.config = config
+
+    def dump_graph(self, graph: torch.fx.Graph, stage: str):
+        if stage in self.config.dump_graph_stages:
+            # Make sure filename includes rank in the distributed setting
+            parallel = p_is_init() and get_tp_world_size() > 1
+            rank = f"-{get_tp_rank()}" if parallel else ""
+            filepath = self.config.dump_graph_dir / f"{stage}{rank}.py"
+
+            logger.info("Printing graph to %s", filepath)
+            with open(filepath, "w") as f:
+                src = graph.python_code(root_module="self", verbose=True).src
+                # Add imports so it's not full of errors
+                print("import torch; from torch import device", file=f)
+                print(src, file=f)
diff --git a/vllm/compilation/reshapes.py b/vllm/compilation/reshapes.py
new file mode 100644
index 00000000000..0d284246d25
--- /dev/null
+++ b/vllm/compilation/reshapes.py
@@ -0,0 +1,85 @@
+from typing import Union
+
+import torch.fx
+from torch import SymInt
+
+from vllm.compilation.fusion import is_func
+from vllm.compilation.inductor_pass import InductorPass
+from vllm.logger import init_logger
+
+logger = init_logger(__name__)
+
+
+class RedundantReshapesPass(InductorPass):
+    """
+    This is an inductor pass that removes redundant reshape operations.
+    It is required for RMSNorm-quant fusion to work properly.
+    That's because apply_fp8_linear adds a reshape, which is redundant
+    in the 2D-case.
+
+    Example graph:
+
+    getitem_1: "f16[s0, 4096]" = ...
+    view_1: "f16[s0, 4096]" = torch.reshape(getitem_1, [-1, 4096])
+    at = auto_functionalized(static_scaled_fp8_quant, input = view_1, ...)
+    out: "f8e4m3fn[s0, 4096]" = at[1]
+
+    Can be replaced with:
+    getitem_1: "f16[s0, 4096]" = ...
+    at = auto_functionalized(static_scaled_fp8_quant, input = getitem_1, ...)
+    out: "f8e4m3fn[s0, 4096]" = at[1]
+    """
+
+    def __call__(self, graph: torch.fx.Graph):
+        self.dump_graph(graph, "before_reshapes")
+        count = 0
+        # Remove no-op reshapes/views:
+        for node in graph.nodes:
+            if is_func(node, torch.ops.aten.reshape.default):
+                input, shape = node.args[:2]
+                input_shape = input.meta["val"].shape
+                if len(shape) != len(input_shape):
+                    # Reshape changing rank, skip
+                    continue
+
+                if shape.count(-1) > 1:
+                    # Invalid reshape args, skip
+                    continue
+
+                if all(
+                        self.dims_equivalent(s, i_s)
+                        for s, i_s in zip(shape, input_shape)):
+                    node.replace_all_uses_with(input)
+                    graph.erase_node(node)
+                    count += 1
+
+        logger.info("Removed %s no-op reshapes", count)
+
+        self.dump_graph(graph, "after_reshapes")
+
+    def dims_equivalent(self, dim: Union[int, torch.fx.Node],
+                        i_dim: Union[int, SymInt]) -> bool:
+        """
+        This function checks if two dimensions are equivalent.
+        :param dim: The dimension arg to reshape
+        :param i_dim: The corresponding dimension in the input tensor
+        :return: Are the dimensions equivalent?
+
+        There are three cases in which the dimensions are equivalent:
+        1. The dimensions are equal (both integers)
+        2. The reshape dimension is -1 (i.e. inferred)
+        3. The dimensions both correspond to the same SymInt
+
+        While case 2 does not guarantee the dimensions are equal,
+        they are equal if all other dimensions are equal.
+
+        In case 3, the reshape dimension is a torch.fx.Node,
+        and its value is a SymInt. That value is equal to the
+        input dimension.
+
+        """
+        # Case 1 and 2
+        if dim == i_dim or dim == -1:
+            return True
+        # Case 3
+        return isinstance(dim, torch.fx.Node) and dim.meta["val"] == i_dim
diff --git a/vllm/envs.py b/vllm/envs.py
index 9e596a699e4..154246c69f1 100644
--- a/vllm/envs.py
+++ b/vllm/envs.py
@@ -68,6 +68,7 @@
     VLLM_ALLOW_RUNTIME_LORA_UPDATING: bool = False
     VLLM_SKIP_P2P_CHECK: bool = False
     VLLM_TORCH_COMPILE_LEVEL: int = 0
+    VLLM_TORCH_COMPILE_CONFIG: Optional[str] = None
     VLLM_CUSTOM_OPS: List[str] = []
     VLLM_DISABLED_KERNELS: List[str] = []
     VLLM_USE_V1: bool = False
@@ -226,6 +227,7 @@ def get_default_config_root():
     # and disabled when running with Inductor (compile_level >= Inductor).
     "VLLM_CUSTOM_OPS":
     lambda: os.environ.get("VLLM_CUSTOM_OPS", "").replace(" ", "").split(","),
+
     # local rank of the process in the distributed setting, used to determine
     # the GPU device id
     "LOCAL_RANK":