diff --git a/examples/text-generation/run_lm_eval.py b/examples/text-generation/run_lm_eval.py
index 4f90306354..8d61118890 100644
--- a/examples/text-generation/run_lm_eval.py
+++ b/examples/text-generation/run_lm_eval.py
@@ -75,10 +75,15 @@ def __init__(self, tokenizer, model, args, options):
         self.options = options
         self._device = args.device
         self.model_inputs = {"use_cache": self.options.use_cache}
-        if self.model.config.model_type == "llama":
+        if self.model.config.model_type == "llama" or "falcon":
             self.model_inputs.update(
                 {
                     "reuse_cache": self.options.reuse_cache,
+                }
+            )
+        if self.model.config.model_type == "llama":
+            self.model_inputs.update(
+                {
                     "attn_softmax_bf16": self.options.attn_softmax_bf16,
                 }
             )
@@ -131,11 +136,7 @@ def _model_call(self, inps):
         if self.options.static_shapes:
             bucket_length = self.find_bucket(seq_length)
             if self.options.use_cache and self.options.reuse_cache:
-                self.model.allocate_kv_cache(
-                    bs,
-                    bucket_length + 1,
-                    bucket_length
-                )
+                self.model.allocate_kv_cache(bs, bucket_length + 1, bucket_length)
             padding_length = bucket_length - seq_length
             inps = F.pad(inps, (0, padding_length), value=self.model.config.pad_token_id)
         logits = self.model(inps.to(self._device), **self.model_inputs)["logits"].cpu()
@@ -177,6 +178,7 @@ def main():
         habana_quantization_toolkit.finish_measurements(model)
     if args.const_serialization_path and os.path.isdir(args.const_serialization_path):
         import shutil
+
         shutil.rmtree(args.const_serialization_path)
 
 
diff --git a/tests/test_text_generation_example.py b/tests/test_text_generation_example.py
index ff6f94d002..00602dbd0e 100644
--- a/tests/test_text_generation_example.py
+++ b/tests/test_text_generation_example.py
@@ -26,6 +26,9 @@
             ("mistralai/Mistral-7B-v0.1", 125.26115369093216),
             ("mistralai/Mixtral-8x7B-v0.1", 23.78652574031883),
         ],
+        "fp8": [
+            ("tiiuae/falcon-180B", 47.67900945905787),
+        ],
         "deepspeed": [
             ("bigscience/bloomz", 36.34664210641816),
             ("meta-llama/Llama-2-70b-hf", 61.973950428647164),
@@ -69,6 +72,7 @@ def _test_text_generation(
     deepspeed: bool = False,
     world_size: int = 8,
     torch_compile: bool = False,
+    fp8: bool = False,
 ):
     command = ["python3"]
     path_to_example_dir = Path(__file__).resolve().parent.parent / "examples"
@@ -103,6 +107,13 @@ def _test_text_generation(
     if not deepspeed:
         command.append("--bf16")
 
+    if fp8:
+        command += [
+            "--fp8",
+            "--reuse_cache",
+            "--trim_logits",
+        ]
+
     with TemporaryDirectory() as tmp_dir:
         command.append(f"--output_dir {tmp_dir}")
         print(f"\n\nCommand to test: {' '.join(command)}\n")
@@ -112,6 +123,15 @@ def _test_text_generation(
         pattern = re.compile(r"([\"\'].+?[\"\'])|\s")
         command = [x for y in command for x in re.split(pattern, y) if x]
 
+        if fp8:
+            os.environ["QUANT_CONFIG"] = os.path.join(
+                path_to_example_dir, "text-generation/quantization_config/maxabs_measure_include_outputs.json"
+            )
+            subprocess.run(command)
+            os.environ["QUANT_CONFIG"] = os.path.join(
+                path_to_example_dir, "text-generation/quantization_config/maxabs_quant.json"
+            )
+
         proc = subprocess.run(command)
 
         # Ensure the run finished without any issue
@@ -135,6 +155,13 @@ def test_text_generation_bf16(model_name: str, baseline: float, token: str):
     _test_text_generation(model_name, baseline, token)
 
 
+@pytest.mark.parametrize("model_name, baseline", MODELS_TO_TEST["fp8"])
+def test_text_generation_fp8(model_name: str, baseline: float, token: str):
+    deepspeed = True if "falcon-180B" in model_name else False
+    world_size = 8 if "falcon-180B" in model_name else None
+    _test_text_generation(model_name, baseline, token, deepspeed=deepspeed, world_size=world_size, fp8=True)
+
+
 @pytest.mark.parametrize("model_name, baseline", MODELS_TO_TEST["deepspeed"])
 def test_text_generation_deepspeed(model_name: str, baseline: float, token: str):
     world_size = 2 if "opt-66b" in model_name else 8