diff --git a/estimation.py b/estimation.py
index ddf24d8a..e652c581 100644
--- a/estimation.py
+++ b/estimation.py
@@ -124,8 +124,8 @@ def loss_fn(pred, labels):
             whole_model = model_cls.from_model_args(model_config)
 
         # apply fp8 linear module swap
-        if job_config.training.fp8_linear:
-            build_fp8_linear(whole_model, job_config)
+        if job_config.training.enable_fp8_linear:
+            build_fp8_linear(whole_model, job_config, parallel_dims.dp_enabled)
 
         # apply PT-D DP/TP parallelisms and activation checkpointing
         model_parts = [whole_model]
diff --git a/test_runner.py b/test_runner.py
index 319f99d7..f2f80504 100755
--- a/test_runner.py
+++ b/test_runner.py
@@ -273,6 +273,39 @@ def build_test_list():
             "fsdp2_mem_tracker",
             ngpu=4,
         ),
+        OverrideDefinitions(
+            [
+                [
+                    "--training.enable_fp8_linear",
+                ]
+            ],
+            "FSDP2 with original dtype",
+            "fp8_fsdp2_orig_all_gather",
+            ngpu=4,
+        ),
+        OverrideDefinitions(
+            [
+                [
+                    "--training.enable_fp8_linear",
+                    "--training.enable_fsdp_fp8_all_gather",
+                ]
+            ],
+            "FSDP2 with fp8 all-gather",
+            "fsdp2_fp8_all_gather",
+            ngpu=4,
+        ),
+        OverrideDefinitions(
+            [
+                [
+                    "--training.enable_fp8_linear",
+                    "--training.enable_fsdp_fp8_all_gather",
+                    "--training.precompute_float8_dynamic_scale_for_fsdp",
+                ]
+            ],
+            "FSDP2 with fp8 all-gather and precomputed dynamic scales",
+            "fsdp2_fp8_all_gather_precompute_dynamic_scales",
+            ngpu=4,
+        ),
     ]
     return integration_tests_flavors
 
diff --git a/torchtitan/config_manager.py b/torchtitan/config_manager.py
index 3ade1b9d..0dfe1bb0 100644
--- a/torchtitan/config_manager.py
+++ b/torchtitan/config_manager.py
@@ -338,7 +338,7 @@ def __init__(self):
             help="Whether to compile the model",
         )
         self.parser.add_argument(
-            "--training.fp8_linear",
+            "--training.enable_fp8_linear",
             action="store_true",
             help="""
                 If true, swaps `torch.nn.Linear` with `Float8Linear` with
@@ -347,6 +347,18 @@ def __init__(self):
                 here: https://github.com/pytorch-labs/float8_experimental
             """,
         )
+        self.parser.add_argument(
+            "--training.enable_fsdp_fp8_all_gather",
+            action="store_true",
+            default=False,
+            help="Whether enable fp8 all-gather in FSDP",
+        )
+        self.parser.add_argument(
+            "--training.precompute_float8_dynamic_scale_for_fsdp",
+            action="store_true",
+            default=False,
+            help="Whether precompute fp8 scales dynamically for FSDP",
+        )
         self.parser.add_argument(
             "--training.gc_freq",
             type=int,
diff --git a/torchtitan/float8_linear.py b/torchtitan/float8_linear.py
index 0bd0900c..f41a812d 100644
--- a/torchtitan/float8_linear.py
+++ b/torchtitan/float8_linear.py
@@ -12,31 +12,58 @@
 
 # Note: Performance
 # Float8 experimental is intended to be ran under `torch.compile`` for competitive performance
+import contextlib
+from typing import Optional
 
+import float8_experimental.config as config
+
+import torch
 import torch.nn as nn
+from float8_experimental.float8_linear import TensorScalingType
 
 from torchtitan.config_manager import JobConfig
 from torchtitan.logging_utils import logger
 
 
-def build_fp8_linear(model: nn.Module, job_config: JobConfig):
+@contextlib.contextmanager
+def set_enable_fsdp_fp8_all_gather(enable_fsdp_fp8_all_gather: bool):
+    prev = config.enable_fsdp_fp8_all_gather
+    torch.distributed.barrier()
+    config.enable_fsdp_fp8_all_gather = enable_fsdp_fp8_all_gather
+    try:
+        yield
+    finally:
+        torch.distributed.barrier()
+        config.enable_fsdp_fp8_all_gather = prev
+
+
+def build_fp8_linear(
+    model: nn.Module, job_config: JobConfig, dp_enabled: Optional[bool] = False
+):
     """
     This function converts the linear layers to `Float8Linear`. Note that today,
     only dynamic tensor scaling (the default) is supported.
 
     This will mutate the model inplace.
     """
-    use_fp8_linear = job_config.training.fp8_linear
+    enable_fp8_linear = job_config.training.enable_fp8_linear
+    enable_fsdp_fp8_all_gather = (
+        job_config.training.enable_fsdp_fp8_all_gather and dp_enabled
+    )
     try:
-        from float8_experimental.float8_linear import Float8Linear
         from float8_experimental.float8_linear_utils import (
             swap_linear_with_float8_linear,
         )
+
+        # Mutates the model inplace replacing instances of torch.nn.Linear with Float8Linear
+        with set_enable_fsdp_fp8_all_gather(enable_fsdp_fp8_all_gather):
+            swap_linear_with_float8_linear(
+                model, scaling_type_w=TensorScalingType.DYNAMIC
+            )
+        logger.info(
+            f"Swapped to Float8Linear layers with {enable_fsdp_fp8_all_gather=}"
+        )
     except ImportError as exc:
         raise ImportError(
             "float8_experimental is not installed. Please install it to use fp8 linear layers."
         ) from exc
-    if use_fp8_linear:
-        # Mutates the model inplace replacing instances of torch.nn.Linear with Float8Linear
-        swap_linear_with_float8_linear(model, Float8Linear)
-        logger.info("Swapped to Float8Linear layers")
diff --git a/torchtitan/parallelisms/parallelize_llama.py b/torchtitan/parallelisms/parallelize_llama.py
index 1b414159..b33e8870 100644
--- a/torchtitan/parallelisms/parallelize_llama.py
+++ b/torchtitan/parallelisms/parallelize_llama.py
@@ -117,12 +117,24 @@ def selective_checkpointing_context_fn():
 
 def get_tp_parallel_strategy(
     job_config: JobConfig,
+    model: nn.Module,
 ) -> Tuple[RowwiseParallel, ColwiseParallel, PrepareModuleInput]:
     """Get the parallel strategy for the transformer model.
 
     This function handles the special case of using float8 with tensor parallelism.
     """
-    if job_config.training.fp8_linear == "dynamic":
+    if job_config.training.enable_fp8_linear:
+        from float8_experimental.float8_linear import Float8Linear, TensorScalingType
+
+        if any(
+            isinstance(m, Float8Linear)
+            and m.scaling_type_w is TensorScalingType.DELAYED
+            for m in model.modules()
+        ):
+            raise NotImplementedError(
+                "1D TP fp8 all-gather only supports dynamic scaling"
+            )
+
         from float8_experimental.float8_tensor_parallel import (
             Float8ColwiseParallel,
             Float8RowwiseParallel,
@@ -346,7 +358,7 @@ def apply_tp(
         rowwise_parallel_weight,
         colwise_parallel_weight,
         prepare_module_input,
-    ) = get_tp_parallel_strategy(job_config)
+    ) = get_tp_parallel_strategy(job_config, model)
     loss_parallel = parallel_dims.loss_parallel_enabled
 
     # 1. Parallelize the embedding and shard its outputs (which are the first
diff --git a/train.py b/train.py
index 8e55c210..14008525 100644
--- a/train.py
+++ b/train.py
@@ -19,6 +19,7 @@
 
 import torch
 import torch.nn.functional as F
+from float8_experimental.fsdp_utils import precompute_float8_dynamic_scale_for_fsdp
 from torch.distributed import destroy_process_group
 from torch.distributed.checkpoint.stateful import Stateful
 from torch.distributed.elastic.multiprocessing.errors import record
@@ -216,8 +217,8 @@ def loss_fn(pred, labels):
         whole_model = model_cls.from_model_args(model_config)
 
     # apply fp8 linear module swap
-    if job_config.training.fp8_linear:
-        build_fp8_linear(whole_model, job_config)
+    if job_config.training.enable_fp8_linear:
+        build_fp8_linear(whole_model, job_config, parallel_dims.dp_enabled)
 
     # log model size
     model_param_count = get_num_params(whole_model)
@@ -398,6 +399,15 @@ def loss_fn(pred, labels):
             optimizers.step()
             lr_schedulers.step()
 
+            if (
+                job_config.training.enable_fp8_linear
+                and job_config.training.enable_fsdp_fp8_all_gather
+                and job_config.training.precompute_float8_dynamic_scale_for_fsdp
+            ):
+                # calculate float8 dynamic amax/scale for all-parameter for FSDP2
+                # it issues a single all-reduce for all parameters at once for better performance
+                precompute_float8_dynamic_scale_for_fsdp(model)
+
             losses_since_last_log.append(loss)
 
             # log metrics
diff --git a/train_configs/debug_model.toml b/train_configs/debug_model.toml
index cb2fb215..6064ced1 100644
--- a/train_configs/debug_model.toml
+++ b/train_configs/debug_model.toml
@@ -37,7 +37,7 @@ max_norm = 1.0  # grad norm clipping
 steps = 10
 data_parallel_degree = -1
 tensor_parallel_degree = 1
-fp8_linear = false
+enable_fp8_linear = false
 compile = false
 dataset = "c4_mini"  # supported datasets: c4_mini (45K), c4 (177M)
 
diff --git a/train_configs/llama2_13b.toml b/train_configs/llama2_13b.toml
index 05e3c27b..f4061ad0 100644
--- a/train_configs/llama2_13b.toml
+++ b/train_configs/llama2_13b.toml
@@ -33,7 +33,7 @@ max_norm = 1.0  # grad norm clipping
 steps = 1000
 data_parallel_degree = -1
 tensor_parallel_degree = 1
-fp8_linear = false
+enable_fp8_linear = false
 compile = false
 dataset = "c4"
 
diff --git a/train_configs/llama2_70b.toml b/train_configs/llama2_70b.toml
index 5b2dd493..19e033b8 100644
--- a/train_configs/llama2_70b.toml
+++ b/train_configs/llama2_70b.toml
@@ -33,7 +33,7 @@ max_norm = 1.0  # grad norm clipping
 steps = 1000
 data_parallel_degree = -1
 tensor_parallel_degree = 8  # 8-way TP
-fp8_linear = false
+enable_fp8_linear = false
 compile = false
 dataset = "c4"
 
diff --git a/train_configs/llama2_7b.toml b/train_configs/llama2_7b.toml
index 9b72246a..95d67667 100644
--- a/train_configs/llama2_7b.toml
+++ b/train_configs/llama2_7b.toml
@@ -32,7 +32,7 @@ max_norm = 1.0  # grad norm clipping
 steps = 1000
 data_parallel_degree = -1
 tensor_parallel_degree = 1  # dp-only would be sufficient for 7B
-fp8_linear = false
+enable_fp8_linear = false
 compile = false
 dataset = "c4"
 
diff --git a/train_configs/llama3_70b.toml b/train_configs/llama3_70b.toml
index 93b529f6..ac6b31c1 100644
--- a/train_configs/llama3_70b.toml
+++ b/train_configs/llama3_70b.toml
@@ -33,7 +33,7 @@ max_norm = 1.0  # grad norm clipping
 steps = 1000
 data_parallel_degree = -1
 tensor_parallel_degree = 8  # 8-way TP
-fp8_linear = false
+enable_fp8_linear = false
 compile = false
 dataset = "c4"
 
diff --git a/train_configs/llama3_8b.toml b/train_configs/llama3_8b.toml
index 95a53d56..2c3c6e63 100644
--- a/train_configs/llama3_8b.toml
+++ b/train_configs/llama3_8b.toml
@@ -33,7 +33,7 @@ max_norm = 1.0  # grad norm clipping
 steps = 1000
 data_parallel_degree = -1
 tensor_parallel_degree = 1
-fp8_linear = false
+enable_fp8_linear = false
 compile = false
 dataset = "c4"