diff --git a/recipes/accelerate_configs/fsdp_qlora.yaml b/recipes/accelerate_configs/fsdp_qlora.yaml
new file mode 100644
index 00000000..f28a0f10
--- /dev/null
+++ b/recipes/accelerate_configs/fsdp_qlora.yaml
@@ -0,0 +1,25 @@
+compute_environment: LOCAL_MACHINE                                                                                                                                           
+debug: false                                                                                                                                                                 
+distributed_type: FSDP
+downcast_bf16: 'no'
+fsdp_config:
+  fsdp_auto_wrap_policy: TRANSFORMER_BASED_WRAP
+  fsdp_backward_prefetch: BACKWARD_PRE
+  fsdp_cpu_ram_efficient_loading: true
+  fsdp_forward_prefetch: false
+  fsdp_offload_params: true
+  fsdp_sharding_strategy: FULL_SHARD
+  fsdp_state_dict_type: SHARDED_STATE_DICT
+  fsdp_sync_module_states: true
+  fsdp_use_orig_params: false
+machine_rank: 0
+main_training_function: main
+mixed_precision: 'no'
+num_machines: 1
+num_processes: 2
+rdzv_backend: static
+same_network: true
+tpu_env: []
+tpu_use_cluster: false
+tpu_use_sudo: false
+use_cpu: false
\ No newline at end of file
diff --git a/scripts/README.md b/scripts/README.md
index 01efe528..3860e41b 100644
--- a/scripts/README.md
+++ b/scripts/README.md
@@ -7,6 +7,7 @@ In the handbook, we provide three main ways to align LLMs for chat:
 - Full fine-tuning on a multi-GPU machine with DeepSpeed ZeRO-3 (tested on an 8 x A100 (80GB) node).
 - LoRA or QLoRA fine-tuning on a single consumer 24GB GPU (tested on an RTX 4090).
 - LoRA fine-tuning on a multi-GPU machine with DeepSpeed ZeRO-3 (tested on a 2 x A100s (80GB)).
+- QLoRA fine-tuning on multi-GPU machine with FSDP (tested on a 2 x A6000s (48GB)).
 
 In practice, we find comparable performance for both full and QLoRA fine-tuning, with the latter having the advantage of producing small adapter weights that are fast to upload and download from the Hugging Face Hub. Here are the general commands to fine-tune your models:
 
@@ -22,6 +23,9 @@ ACCELERATE_LOG_LEVEL=info accelerate launch --config_file recipes/accelerate_con
 
 # LoRA training with ZeRO-3 on two or more GPUs
 ACCELERATE_LOG_LEVEL=info accelerate launch --config_file recipes/accelerate_configs/deepspeed_zero3.yaml --num_processes={num_gpus} scripts/run_{task}.py recipes/{model_name}/{task}/config_qlora.yaml --load_in_4bit=false
+
+# QLoRA training with FSDP on two or more GPUs
+ACCELERATE_LOG_LEVEL=info accelerate launch --config_file recipes/accelerate_configs/fsdp+qlora.yaml --num_processes={num_gpus} scripts/run_{task}.py recipes/{model_name}/{task}/config_qlora.yaml --torch_dtype=bfloat16 --bnb_4bit_quant_storage=bfloat16
 ```
 
 Here `{task}` refers to the type of training you wish to run. Currently the following tasks are supported:
diff --git a/setup.py b/setup.py
index 61737130..5ae2312e 100644
--- a/setup.py
+++ b/setup.py
@@ -42,7 +42,7 @@
 #   * If a dependency is fast-moving (e.g. transformers), pin to the exact version
 _deps = [
     "accelerate>=0.29.2",
-    "bitsandbytes==0.41.2.post2",
+    "bitsandbytes>=0.43.0",
     "black==23.1.0",
     "datasets>=2.18.0",
     "deepspeed==0.12.2",
@@ -57,7 +57,7 @@
     "numpy>=1.24.2",
     "packaging>=23.0",
     "parameterized>=0.9.0",
-    "peft==0.7.1",
+    "peft>=0.9.0",
     "protobuf<=3.20.2",  # Needed to avoid conflicts with `transformers`
     "pytest",
     "safetensors>=0.3.3",
diff --git a/src/alignment/configs.py b/src/alignment/configs.py
index 9881206d..208be0e2 100644
--- a/src/alignment/configs.py
+++ b/src/alignment/configs.py
@@ -185,6 +185,9 @@ class ModelArguments:
         default="nf4", metadata={"help": "precise the quantization type (fp4 or nf4)"}
     )
     use_bnb_nested_quant: bool = field(default=False, metadata={"help": "use nested quantization"})
+    bnb_4bit_quant_storage: Optional[str] = field(
+        default="uint8", metadata={"help": "storage type to pack the quanitzed 4-bit prarams."}
+    )
 
     def __post_init__(self):
         if self.load_in_8bit and self.load_in_4bit:
diff --git a/src/alignment/model_utils.py b/src/alignment/model_utils.py
index 14cd9cbb..fe1ecadb 100644
--- a/src/alignment/model_utils.py
+++ b/src/alignment/model_utils.py
@@ -51,6 +51,7 @@ def get_quantization_config(model_args: ModelArguments) -> BitsAndBytesConfig |
             bnb_4bit_compute_dtype=compute_dtype,
             bnb_4bit_quant_type=model_args.bnb_4bit_quant_type,
             bnb_4bit_use_double_quant=model_args.use_bnb_nested_quant,
+            bnb_4bit_quant_storage=model_args.bnb_4bit_quant_storage,
         )
     elif model_args.load_in_8bit:
         quantization_config = BitsAndBytesConfig(