diff --git a/test/distributed/_composable/fsdp/test_fully_shard_compile.py b/test/distributed/_composable/fsdp/test_fully_shard_compile.py
index b1552909d457d..fb75cb735531c 100644
--- a/test/distributed/_composable/fsdp/test_fully_shard_compile.py
+++ b/test/distributed/_composable/fsdp/test_fully_shard_compile.py
@@ -256,7 +256,7 @@ def _check_count(copy_count, resize_count):
                 f"Unexpected number of `inductor.resize_storage_bytes_` ops (expected {resize_count}, got {actual_resize_count}) in graph: {graph}",  # noqa: B950
             )
 
-        if not torch._dynamo.compiled_autograd.in_compiled_autograd_region:
+        if not torch._dynamo.compiled_autograd.local.get("in_compiled_autograd_region"):
             _check_count(fwd_copy_count, fwd_resize_count)  # fwd graph
         else:
             _check_count(bwd_copy_count, bwd_resize_count)  # bwd graph
diff --git a/test/dynamo/test_activation_checkpointing.py b/test/dynamo/test_activation_checkpointing.py
index e82ad38d1fbd5..3a4c44cdd3c86 100644
--- a/test/dynamo/test_activation_checkpointing.py
+++ b/test/dynamo/test_activation_checkpointing.py
@@ -86,7 +86,9 @@ def match_rng_op(node, op):
 
 
 def collect_fwd_graph_outputs(graph: torch.fx.Graph, *, fwd_outputs: Set[str]):
-    if not torch._dynamo.compiled_autograd.in_compiled_autograd_region:  # fwd graph
+    if not torch._dynamo.compiled_autograd.local.get(
+        "in_compiled_autograd_region"
+    ):  # fwd graph
         return_node = list(graph.nodes)[-1]
         assert return_node.target == "output"
         for x in return_node.args[0]:
diff --git a/test/inductor/test_compiled_autograd.py b/test/inductor/test_compiled_autograd.py
index f65e700749977..5a4256ce469f0 100644
--- a/test/inductor/test_compiled_autograd.py
+++ b/test/inductor/test_compiled_autograd.py
@@ -6,9 +6,11 @@
 import itertools
 import logging
 import os
+import queue
 import re
 import subprocess
 import sys
+import threading
 import unittest
 from importlib.machinery import SourceFileLoader
 from pathlib import Path
@@ -2405,6 +2407,39 @@ def test_logs(self):
             not in logs.getvalue()
         )
 
+    def test_multithreading_tls(self):
+        def train(errors, model, x):
+            try:
+                out = model(x)
+                with compiled_autograd.enable(compiler_fn):
+                    self.assertEqual(compiled_autograd.local.enabled(), True)
+                    self.assertEqual(compiled_autograd.local.get("next_ctx_id"), 1)
+            except Exception as e:
+                print(f"Found error: {e}")
+                errors.put(1)
+                raise
+
+        model = torch.nn.Sequential(
+            torch.nn.Linear(4, 4),
+            torch.nn.ReLU(),
+            torch.nn.Linear(4, 4),
+            torch.nn.ReLU(),
+        )
+        x = torch.randn([2, 4])
+
+        threads = []
+        errors = queue.Queue()
+        with compiled_autograd.enable(compiler_fn):
+            for i in range(4):
+                thread = threading.Thread(target=train, args=(errors, model, x))
+                threads.append(thread)
+                thread.start()
+
+        for thread in threads:
+            thread.join()
+
+        assert errors.empty()
+
     def test_verbose_logs_graph(self):
         def fn():
             model = torch.nn.Sequential(
diff --git a/torch/_C/_dynamo/compiled_autograd.pyi b/torch/_C/_dynamo/compiled_autograd.pyi
index 80144e3a77907..b308f63844ed6 100644
--- a/torch/_C/_dynamo/compiled_autograd.pyi
+++ b/torch/_C/_dynamo/compiled_autograd.pyi
@@ -1,10 +1,6 @@
 from typing import Callable
 
-from torch._dynamo.compiled_autograd import AutogradCompilerInstance
-
-def set_autograd_compiler(
-    autograd_compiler: Callable[[], AutogradCompilerInstance] | None,
-) -> Callable[[], AutogradCompilerInstance] | None: ...
+def notify_autograd_engine() -> None: ...
 def clear_cache() -> None: ...
 def is_cache_empty() -> bool: ...
 def set_verbose_logger(fn: Callable[[str], None] | None) -> bool: ...
diff --git a/torch/_dynamo/compiled_autograd.py b/torch/_dynamo/compiled_autograd.py
index 950737d4bcba6..8cb7c15c3e8d5 100644
--- a/torch/_dynamo/compiled_autograd.py
+++ b/torch/_dynamo/compiled_autograd.py
@@ -1,7 +1,10 @@
 # mypy: allow-untyped-defs
 import contextlib
 import functools
-from typing import Any, Dict, List, Optional, Tuple, TYPE_CHECKING, Union
+import threading
+from dataclasses import dataclass
+from logging import Logger
+from typing import Any, Callable, Dict, List, Optional, Tuple, TYPE_CHECKING, Union
 
 import torch
 from torch._dynamo.external_utils import (
@@ -38,14 +41,90 @@
 verbose_log = getArtifactLogger(__name__, "compiled_autograd_verbose")
 
 
-def snapshot_verbose_logging_enabled():
-    return torch._logging._internal.log_state.is_artifact_enabled(
-        "compiled_autograd_verbose"
-    )
+@dataclass
+class CompiledAutogradTLS:
+    next_ctx_id: int = 0
+    in_compiled_autograd_region: bool = False
+    compiler: Optional["AutogradCompilerInstance"] = None
+    vlogger: Optional[Logger] = None
+
+
+class TLSWrapper:
+    tls_key = "compiled_autograd_state"
+
+    def __init__(self):
+        self._local = threading.local()
+
+    def _get_tls(self) -> CompiledAutogradTLS:
+        if hasattr(self._local, self.tls_key):
+            # first look in python
+            state = getattr(self._local, self.tls_key)
+        if torch._C._is_key_in_tls(self.tls_key):
+            # then look in cpp
+            state = torch._C._get_obj_in_tls(self.tls_key)
+        else:
+            # init new thread created outside of autograd
+            # TODO: what if context manager wrapped outside of thread?
+            setattr(self._local, self.tls_key, CompiledAutogradTLS())
+            state = getattr(self._local, self.tls_key)
+            torch._C._stash_obj_in_tls(self.tls_key, state)
+        return state
+
+    # queries on the object stored in TLS
+    def get(self, name):
+        return getattr(self._get_tls(), name)
+
+    def set_tls(self, **kwargs) -> Callable[[], None]:
+        priors: Dict[str, Any] = {}
+        for k, v in kwargs.items():
+            state = self._get_tls()
+            priors[k] = getattr(state, k)
+            setattr(state, k, v)
+
+        torch._C._dynamo.compiled_autograd.notify_autograd_engine()
+
+        def revert():
+            self.set_tls(**priors)
+
+        return revert
+
+    def enabled(self) -> bool:
+        return self.get("compiler") is not None
+
+    def enter_ctx(self) -> Callable[[], None]:
+        state = self._get_tls()
+        state.next_ctx_id += 1
+        id = state.next_ctx_id
+
+        def exit():
+            assert (
+                state is self._get_tls()
+            ), "Runtime must begin and end on the same thread"
+            assert state.next_ctx_id == id, (
+                "Error nesting compiled autograd context managers: "
+                "inner context managers must have shorter lifetime than the outer context manager"
+            )
+            state.next_ctx_id -= 1
+
+        return exit
+
+    def enter_compiled_region(self) -> Callable[[], None]:
+        state = self._get_tls()
+        prior = state.in_compiled_autograd_region
+        state.in_compiled_autograd_region = True
+        assert prior is False, "Nested compiled autograd regions are not supported"
+
+        def exit():
+            assert (
+                state is self._get_tls()
+            ), "Runtime must begin and end on the same thread"
+            assert state.in_compiled_autograd_region is True
+            state.in_compiled_autograd_region = prior
+
+        return exit
 
 
-def snapshot_cudagraph_enabled():
-    return torch._inductor.config.triton.cudagraphs
+local = TLSWrapper()
 
 
 def maybe_clone(x):
@@ -307,7 +386,7 @@ def end_capture(self, outputs):
         self.rename_aot_dispatcher_nodes()
         self.reorder_accumulate_grad_nodes()
         runtime_inputs_to_move: List[int] = []
-        if snapshot_cudagraph_enabled():
+        if torch._inductor.config.triton.cudagraphs:
             runtime_inputs_to_move = self.move_graph_nodes_to_cuda(self.fx_tracer.graph)
 
         graph = GraphModule(
@@ -329,16 +408,15 @@ def end_capture(self, outputs):
         )
 
         def runtime_wrapper(compiled_fn, inputs, sizes, scalars, hooks):
-            global in_compiled_autograd_region
             try:
-                in_compiled_autograd_region = True
+                exit_compiled_region = local.enter_compiled_region()
                 for i in runtime_inputs_to_move:
                     inputs[i] = inputs[i].pin_memory().cuda(non_blocking=True)
 
                 with disable():
                     return compiled_fn(inputs, sizes, scalars, hooks)
             finally:
-                in_compiled_autograd_region = False
+                exit_compiled_region()
 
         return runtime_wrapper, self.compiler_fn(graph)
 
@@ -510,15 +588,9 @@ def set_node_origin(
         set_stack_trace(new_stack_trace)
 
 
-# state of the autograd engine dispatch, kept in sync by enable/disable context managers
-compiled_autograd_enabled = False
-
 # global flag to check if compiled autograd is enabled but Dynamo stance is "force_eager"
 compiled_autograd_enabled_force_eager = False
 
-# global flag to check if we are processing graphs produced from a compiled autograd graph
-in_compiled_autograd_region = False
-
 
 @contextlib.contextmanager
 def enable(compiler_fn):
@@ -538,39 +610,42 @@ def enable(compiler_fn):
         # we need to lazily import it, because of circular dependencies
         import torch._inductor.cudagraph_trees
 
-        prior = torch._C._dynamo.compiled_autograd.set_autograd_compiler(
-            functools.partial(AutogradCompilerInstance, compiler_fn)
+        exit_ctx = local.enter_ctx()
+        revert_tls = local.set_tls(
+            compiler=functools.partial(AutogradCompilerInstance, compiler_fn),
+            vlogger=verbose_log
+            if torch._logging._internal.log_state.is_artifact_enabled(
+                "compiled_autograd_verbose"
+            )
+            else None,
         )
-        if snapshot_verbose_logging_enabled():
-            torch._C._dynamo.compiled_autograd.set_verbose_logger(verbose_log)
-        global compiled_autograd_enabled
-        compiled_autograd_enabled = True
         try:
             with torch.autograd.set_multithreading_enabled(False):
                 yield
         finally:
-            if not prior:
-                compiled_autograd_enabled = False
-            torch._C._dynamo.compiled_autograd.set_autograd_compiler(prior)
+            revert_tls()
+            exit_ctx()
 
 
 @contextlib.contextmanager
 def disable():
-    prior = torch._C._dynamo.compiled_autograd.set_autograd_compiler(None)
-    global compiled_autograd_enabled
-    compiled_autograd_enabled = False
+    exit_ctx = local.enter_ctx()
+    revert_tls = local.set_tls(
+        compiler=None,
+        vlogger=None,
+    )
     try:
         yield
     finally:
-        if prior:
-            compiled_autograd_enabled = True
-        torch._C._dynamo.compiled_autograd.set_autograd_compiler(prior)
+        revert_tls()
+        exit_ctx()
 
 
 # return to starting state of a new process
 def reset() -> None:
-    global compiled_autograd_enabled
-    compiled_autograd_enabled = False
-    assert not in_compiled_autograd_region
-    torch._C._dynamo.compiled_autograd.set_autograd_compiler(None)
-    torch._C._dynamo.compiled_autograd.set_verbose_logger(None)
+    assert local.get("next_ctx_id") == 0
+    assert local.get("in_compiled_autograd_region") is False
+    local.set_tls(
+        compiler=None,
+        vlogger=None,
+    )
diff --git a/torch/_dynamo/config.py b/torch/_dynamo/config.py
index c3db01dfa454b..47c3b5470612d 100644
--- a/torch/_dynamo/config.py
+++ b/torch/_dynamo/config.py
@@ -472,6 +472,11 @@ def default_debug_dir_root():
 # Overrides torch.compile() kwargs for Compiled Autograd:
 compiled_autograd_kwargs_override: Dict[str, Any] = {}
 
+# Compiled Autograd will attempt to automatically wrap C++ autograd functions found in the autograd graph,
+# and make them opaque to the compiler. This does not work when the C++ backward implementation involves
+# other dispatcher subsystems e.g. custom subclasses, autocast, vmap.
+compiled_autograd_opaque_cpp_node = False
+
 # Enables use of collectives *during* compilation to synchronize behavior
 # across ranks.  Today, this is used solely to modify automatic_dynamic_shapes
 # behavior, making it so that we infer that if an input is dynamic by
diff --git a/torch/_dynamo/utils.py b/torch/_dynamo/utils.py
index 3d4f00480be0f..40e3e76e12f70 100644
--- a/torch/_dynamo/utils.py
+++ b/torch/_dynamo/utils.py
@@ -3051,7 +3051,7 @@ def flatten_graph_inputs(gm: torch.fx.GraphModule, inputs, compile_gm):
         if node.op == "placeholder" and node.meta.get("steal_arg", False)
     ]
 
-    if torch._dynamo.compiled_autograd.in_compiled_autograd_region:
+    if torch._dynamo.compiled_autograd.local.get("in_compiled_autograd_region"):
         # fast path, avoid pytree overhead
         # compiled autograd inputs are always a list of tensors, maybe followed by symints
         assert inputs_idx_to_clear == [0]
diff --git a/torch/_dynamo/variables/distributed.py b/torch/_dynamo/variables/distributed.py
index c14b8794cba5f..42aec8b40ba60 100644
--- a/torch/_dynamo/variables/distributed.py
+++ b/torch/_dynamo/variables/distributed.py
@@ -313,7 +313,7 @@ def create(
         user_hooks: VariableTracker,
         user_pre_hooks: VariableTracker,
     ):
-        if not compiled_autograd.compiled_autograd_enabled:
+        if not compiled_autograd.local.enabled():
             unimplemented("module-level backwards hooks require compiled autograd")
 
         def _in_graph_bw_hooks(bw_state: BackwardState):
diff --git a/torch/_dynamo/variables/misc.py b/torch/_dynamo/variables/misc.py
index 7f4ad96601a73..8526c9b965a3d 100644
--- a/torch/_dynamo/variables/misc.py
+++ b/torch/_dynamo/variables/misc.py
@@ -929,7 +929,7 @@ def call_method(
         kwargs: "Dict[str, VariableTracker]",
     ) -> "VariableTracker":
         if name == "queue_callback":
-            if torch._dynamo.compiled_autograd.in_compiled_autograd_region:
+            if torch._dynamo.compiled_autograd.local.get("in_compiled_autograd_region"):
                 assert (
                     tx.one_graph
                 ), "queue_callback() is only supported when Compiled Autograd is enabled with fullgraph=True"
diff --git a/torch/_dynamo/variables/tensor.py b/torch/_dynamo/variables/tensor.py
index c6c9918a71449..fb3fa959ceafd 100644
--- a/torch/_dynamo/variables/tensor.py
+++ b/torch/_dynamo/variables/tensor.py
@@ -1007,7 +1007,7 @@ def _method_register_hook(self, name: str, hook: VariableTracker):
         tx = InstructionTranslator.current_tx()
 
         if not self.source:
-            if not compiled_autograd.compiled_autograd_enabled:
+            if not compiled_autograd.local.enabled():
                 # TODO(voz):
                 # We can relax this by speculating the callable and ensuring that it doesn't modify arbitrary
                 # python state.
diff --git a/torch/_functorch/_aot_autograd/autograd_cache.py b/torch/_functorch/_aot_autograd/autograd_cache.py
index 833958c78cb9e..e31e572e624a1 100644
--- a/torch/_functorch/_aot_autograd/autograd_cache.py
+++ b/torch/_functorch/_aot_autograd/autograd_cache.py
@@ -176,7 +176,7 @@ def check_cacheable(gm: torch.fx.GraphModule):
     Checks that the graph module only uses supported operators
     """
     nodes = gm.graph.nodes
-    if torch._dynamo.compiled_autograd.in_compiled_autograd_region:
+    if torch._dynamo.compiled_autograd.local.get("in_compiled_autograd_region"):
         raise BypassAOTAutogradCache(
             "Cannot cache a graph with compiled autograd enabled"
         )
diff --git a/torch/_functorch/_aot_autograd/collect_metadata_analysis.py b/torch/_functorch/_aot_autograd/collect_metadata_analysis.py
index 9be7779789196..59d01817bbdbf 100644
--- a/torch/_functorch/_aot_autograd/collect_metadata_analysis.py
+++ b/torch/_functorch/_aot_autograd/collect_metadata_analysis.py
@@ -704,7 +704,7 @@ def view_avoid_dupes_with_primals(t):
         traced_tangent_memory_formats = [t[1] for t in tangents_and_memory_formats]
         nonlocal static_input_indices
         static_input_indices = static_input_indices or []
-        if torch._dynamo.compiled_autograd.in_compiled_autograd_region:
+        if torch._dynamo.compiled_autograd.local.get("in_compiled_autograd_region"):
             passed_indices = set(static_input_indices)
             static_input_indices = [
                 i
diff --git a/torch/_functorch/_aot_autograd/jit_compile_runtime_wrappers.py b/torch/_functorch/_aot_autograd/jit_compile_runtime_wrappers.py
index 496d93d0cd035..bfe90378b3b52 100644
--- a/torch/_functorch/_aot_autograd/jit_compile_runtime_wrappers.py
+++ b/torch/_functorch/_aot_autograd/jit_compile_runtime_wrappers.py
@@ -760,7 +760,7 @@ def aot_dispatch_autograd(
             # becomes the lazy version again. One example is when dynamic shape is enabled
             # upfront, the bw_compiler will be called above which can cause extra
             # graph module recompilation on bw_module.
-            if torch._dynamo.compiled_autograd.in_compiled_autograd_region:
+            if torch._dynamo.compiled_autograd.local.get("in_compiled_autograd_region"):
                 from torch.fx._lazy_graph_module import _LazyGraphModule
 
                 _LazyGraphModule.force_recompile(bw_module)
diff --git a/torch/csrc/dynamo/compiled_autograd.h b/torch/csrc/dynamo/compiled_autograd.h
index db69b17ecee39..2f7f364300105 100644
--- a/torch/csrc/dynamo/compiled_autograd.h
+++ b/torch/csrc/dynamo/compiled_autograd.h
@@ -224,11 +224,29 @@ struct LiftedIValueArgs {
   const std::optional<size_t>& active_node_call_idx;
 };
 
+// Hold GIL while using
+struct PyTLSWrapper {
+  PyTLSWrapper(PyObject* state) : state(state) {}
+  PyTLSWrapper(const PyTLSWrapper&) = delete;
+  PyTLSWrapper& operator=(const PyTLSWrapper&) = delete;
+  PyTLSWrapper(PyTLSWrapper&&) = default;
+  PyTLSWrapper& operator=(PyTLSWrapper&&) = default;
+
+  static PyTLSWrapper create();
+
+  PyObject* get(std::string_view key) const;
+
+ private:
+  PyObject* state;
+};
+
 struct AutogradCompilerCall {
-  AutogradCompilerCall()
+  AutogradCompilerCall() = delete;
+  AutogradCompilerCall(PyTLSWrapper&& state)
       : active_node_call_idx(std::nullopt),
         tensor_args(active_node_call_idx),
-        lifted_ivalue_args(active_node_call_idx) {}
+        lifted_ivalue_args(active_node_call_idx),
+        state(std::move(state)) {}
   void add_size_input(const c10::SymInt& s) {
     all_size_inputs.emplace_back(
         default_dyn_type, s.guard_int(__FILE__, __LINE__));
@@ -254,8 +272,11 @@ struct AutogradCompilerCall {
   std::vector<c10::SafePyObject> hooks;
   NodeCalls node_calls;
   SizeInput::DynType default_dyn_type = SizeInput::STATIC;
+
   // NodeCall id of each size, only when verbose logging is enabled
   std::vector<uint32_t> size_input_origins;
+
+  const PyTLSWrapper state;
 };
 
 class CompiledNodeArgs {
diff --git a/torch/csrc/dynamo/python_compiled_autograd.cpp b/torch/csrc/dynamo/python_compiled_autograd.cpp
index 732b43d7d5c7c..7a5969fffba16 100644
--- a/torch/csrc/dynamo/python_compiled_autograd.cpp
+++ b/torch/csrc/dynamo/python_compiled_autograd.cpp
@@ -88,10 +88,6 @@ static void check(bool result) {
   if (C10_UNLIKELY(!result))
     check(nullptr);
 }
-
-// snapshot of python verbose logging toggle
-static PyObject* python_verbose_logger = nullptr;
-
 struct PythonLogger {
   PythonLogger() = delete;
   explicit PythonLogger(PyObject* logger) : logger_(logger) {
@@ -135,15 +131,15 @@ struct PythonLogger {
 };
 
 struct VerboseLogger : public PythonLogger {
-  static std::optional<VerboseLogger> maybe_create() {
-    if (python_verbose_logger == nullptr) {
+  VerboseLogger(PyObject* vlogger) : PythonLogger(vlogger) {}
+
+  static std::optional<VerboseLogger> maybe_create(PyObject* vlogger) {
+    if (vlogger == Py_None) {
       return std::nullopt;
     }
-    return VerboseLogger(python_verbose_logger);
+    return VerboseLogger(vlogger);
   }
 
-  VerboseLogger(PyObject* vlogger) : PythonLogger(vlogger) {}
-
   void log_node_check(
       const Node& fn,
       size_t size_inputs_num,
@@ -368,8 +364,22 @@ struct InputBuffers : public std::unordered_map<Node*, InputBuffer> {
   }
 };
 
-static PyObject* the_autograd_compiler = nullptr;
-static PyObject* set_autograd_compiler(PyObject* dummy, PyObject* args);
+/* static */ PyTLSWrapper PyTLSWrapper::create() {
+  TORCH_INTERNAL_ASSERT(
+      at::impl::ThreadLocalPythonObjects::contains("compiled_autograd_state"));
+  PyObject* compiled_autograd_state =
+      check(at::impl::ThreadLocalPythonObjects::get("compiled_autograd_state")
+                ->ptr(getPyInterpreter()));
+  return PyTLSWrapper(compiled_autograd_state);
+}
+
+// Refer to fields in python class CompiledAutogradTLS
+// May return Py_None
+PyObject* PyTLSWrapper::get(std::string_view key) const {
+  return check(PyObject_GetAttrString(state, key.data()));
+}
+
+static PyObject* notify_autograd_engine(PyObject* dummy, PyObject* args);
 
 static PyObject* clear_cache(PyObject* dummy, PyObject* args) {
   HANDLE_TH_ERRORS;
@@ -387,28 +397,11 @@ static PyObject* is_cache_empty(PyObject* dummy, PyObject* args) {
   END_HANDLE_TH_ERRORS;
 }
 
-static PyObject* set_verbose_logger(PyObject* dummy, PyObject* args) {
-  HANDLE_TH_ERRORS;
-  PyObject* logger = nullptr;
-  if (!PyArg_ParseTuple(args, "O", &logger)) {
-    throw_python_error();
-  }
-
-  if (logger == Py_None) {
-    python_verbose_logger = nullptr;
-  } else {
-    python_verbose_logger = logger;
-  }
-  Py_RETURN_TRUE;
-  END_HANDLE_TH_ERRORS;
-}
-
 // NOLINTNEXTLINE(*array*)
 static PyMethodDef _methods[] = {
-    {"set_autograd_compiler", set_autograd_compiler, METH_VARARGS, nullptr},
+    {"notify_autograd_engine", notify_autograd_engine, METH_NOARGS, nullptr},
     {"clear_cache", clear_cache, METH_NOARGS, nullptr},
     {"is_cache_empty", is_cache_empty, METH_NOARGS, nullptr},
-    {"set_verbose_logger", set_verbose_logger, METH_VARARGS, nullptr},
     {nullptr, nullptr, 0, nullptr}};
 
 static struct PyModuleDef _module = {
@@ -568,7 +561,7 @@ CacheNode* _compiled_autograd_impl(
     THPObjectPtr* graph_arg_hooks) {
   std::unordered_map<Node*, int>& dependencies = graph_task.dependencies_;
   std::vector<std::shared_ptr<Node>> worklist{graph_root};
-  AutogradCompilerCall compiler_call;
+  AutogradCompilerCall compiler_call(PyTLSWrapper::create());
 
   for (const auto i : c10::irange(output_edges.size())) {
     compiler_call.node_calls
@@ -583,7 +576,8 @@ CacheNode* _compiled_autograd_impl(
       check_exec_info ? graph_task.exec_info_.size() : dependencies.size() + 1);
 
   int i = 0;
-  std::optional<VerboseLogger> vlogger = VerboseLogger::maybe_create();
+  std::optional<VerboseLogger> vlogger =
+      VerboseLogger::maybe_create(compiler_call.state.get("vlogger"));
   while (!worklist.empty()) {
     std::shared_ptr<Node> fn = std::move(worklist.back());
     worklist.pop_back();
@@ -642,6 +636,8 @@ CacheNode* _compiled_autograd_impl(
   // TODO(jansel): some dynamic sizes seem to be ints not symints
   if (!cache->check_dynamic_sizes(compiler_call, vlogger)) {
     // cache miss, need to capture FX graph
+    PyObject* the_autograd_compiler = compiler_call.state.get("compiler");
+    TORCH_INTERNAL_ASSERT(the_autograd_compiler != Py_None);
     ClosingTHPObjectPtr py_compiler(
         check(PyObject_CallNoArgs((the_autograd_compiler))));
 
@@ -839,28 +835,16 @@ variable_list compiled_autograd(
   return outputs;
 }
 
-static PyObject* set_autograd_compiler(PyObject* dummy, PyObject* args) {
+static PyObject* notify_autograd_engine(PyObject* dummy, PyObject* args) {
   HANDLE_TH_ERRORS;
-  PyObject* obj = nullptr;
-  if (!PyArg_ParseTuple(args, "O", &obj)) {
-    return nullptr;
-  }
-
-  PyObject* prior = the_autograd_compiler;
-  if (obj == Py_None) { // disable
-    the_autograd_compiler = nullptr; // decref not needed due to `prior`
+  PyTLSWrapper state = PyTLSWrapper::create();
+  PyObject* compiler = state.get("compiler");
+  if (compiler == Py_None) { // disable
     Engine::set_compiled_autograd(nullptr);
   } else { // enable
-    Py_INCREF(obj);
-    the_autograd_compiler = obj;
     Engine::set_compiled_autograd(&compiled_autograd);
   }
-
-  if (prior == nullptr) {
-    Py_RETURN_NONE;
-  } else {
-    return prior;
-  }
+  Py_RETURN_NONE;
   END_HANDLE_TH_ERRORS;
 }
 
diff --git a/torch/distributed/_composable/fsdp/_fsdp_common.py b/torch/distributed/_composable/fsdp/_fsdp_common.py
index 74c6f4fdfea7b..c4be02d10ae7f 100644
--- a/torch/distributed/_composable/fsdp/_fsdp_common.py
+++ b/torch/distributed/_composable/fsdp/_fsdp_common.py
@@ -33,9 +33,9 @@ def detect_compiled_autograd():
         import torch._dynamo.compiled_autograd as ca
 
         _compiled_autograd_enabled = (
-            ca.compiled_autograd_enabled
+            ca.local.enabled()
             or ca.compiled_autograd_enabled_force_eager
-            or ca.in_compiled_autograd_region
+            or ca.local.get("in_compiled_autograd_region")
         )
 
     def compiled_autograd_enabled():