diff --git a/tests/kernels/test_block_fp8.py b/tests/kernels/test_block_fp8.py
new file mode 100644
index 0000000000000..a16cc4582a180
--- /dev/null
+++ b/tests/kernels/test_block_fp8.py
@@ -0,0 +1,265 @@
+# Adapted from https://github.com/sgl-project/sglang/pull/2575
+import itertools
+
+import pytest
+import torch
+
+from vllm.model_executor.layers.activation import SiluAndMul
+from vllm.model_executor.layers.fused_moe import fused_moe
+from vllm.model_executor.layers.quantization.utils.fp8_utils import (
+    per_token_group_quant_fp8, w8a8_block_fp8_matmul)
+from vllm.platforms import current_platform
+
+if current_platform.get_device_capability() < (9, 0):
+    pytest.skip("FP8 Triton requires CUDA 9.0 or higher",
+                allow_module_level=True)
+
+# Test configurations
+DTYPES = [torch.bfloat16]  # [torch.half, torch.bfloat16, torch.float32]
+NUM_TOKENS = [7, 83, 2048]
+D = [512, 4096, 5120, 13824]
+GROUP_SIZE = [64, 128, 256, 512]
+M = [1, 7, 83, 512, 2048]
+N = [128, 512, 1024, 4096, 7748, 13824]
+K = [256, 4096, 5120, 3884, 13824]
+# Deepseek-V3's intermediate size 18432, so N is 18432*2/8=4608 at TP8
+# and its hidden size is 7168.
+M_moe = [1, 7, 83, 512, 2048]
+N_moe = [4608]  # [128, 4608, 13824]
+K_moe = [7168]  # [256, 7168, 13824]
+BLOCK_SIZE = [[128, 128]]
+E = [256]  # [8, 24, 128, 256]
+TOP_KS = [1]  # [1, 2, 6]
+OUT_DTYPES = [torch.bfloat16]  # [torch.float32, torch.half, torch.bfloat16]
+SEEDS = [0]
+
+
+def native_per_token_group_quant_fp8(x,
+                                     group_size,
+                                     eps=1e-10,
+                                     dtype=torch.float8_e4m3fn):
+    """Function to perform per-token-group quantization on an input tensor
+    `x` using native torch."""
+    assert x.shape[-1] % group_size == 0, ("the last dimension of `x` cannot "
+                                           "be divisible by `group_size`")
+    assert x.is_contiguous(), "`x` is not contiguous"
+
+    finfo = torch.finfo(dtype)
+    fp8_min = finfo.min
+    fp8_max = finfo.max
+
+    x_ = x.reshape(x.numel() // group_size, group_size)
+    amax = x_.abs().max(dim=-1,
+                        keepdim=True)[0].clamp(min=eps).to(torch.float32)
+    x_s = amax / fp8_max
+    x_q = (x_ / x_s).clamp(min=fp8_min, max=fp8_max).to(dtype)
+    x_q = x_q.reshape(x.shape)
+    x_s = x_s.reshape(x.shape[:-1] + (x.shape[-1] // group_size, ))
+
+    return x_q, x_s
+
+
+def native_w8a8_block_fp8_matmul(A,
+                                 B,
+                                 As,
+                                 Bs,
+                                 block_size,
+                                 output_dtype=torch.float16):
+    """Matrix multiplication with block-wise quantization using native torch."""
+    A = A.to(torch.float32)
+    B = B.to(torch.float32)
+    assert A.shape[-1] == B.shape[-1]
+    assert B.ndim == 2 and B.is_contiguous() and Bs.ndim == 2
+    assert len(block_size) == 2
+    block_n, block_k = block_size[0], block_size[1]
+    assert (A.shape[-1] + block_k - 1) // block_k == As.shape[-1]
+    assert A.shape[:-1] == As.shape[:-1]
+
+    M = A.numel() // A.shape[-1]
+    N, K = B.shape
+    origin_C_shape = A.shape[:-1] + (N, )
+    A = A.reshape(M, A.shape[-1])
+    As = As.reshape(M, As.shape[-1])
+    n_tiles = (N + block_n - 1) // block_n
+    k_tiles = (K + block_k - 1) // block_k
+    assert n_tiles == Bs.shape[0]
+    assert k_tiles == Bs.shape[1]
+
+    C_shape = (M, N)
+    C = torch.zeros(C_shape, dtype=torch.float32, device=A.device)
+
+    A_tiles = [
+        A[:, i * block_k:min((i + 1) * block_k, K)] for i in range(k_tiles)
+    ]
+    B_tiles = [[
+        B[j * block_n:min((j + 1) * block_n, N),
+          i * block_k:min((i + 1) * block_k, K), ] for i in range(k_tiles)
+    ] for j in range(n_tiles)]
+    C_tiles = [
+        C[:, j * block_n:min((j + 1) * block_n, N)] for j in range(n_tiles)
+    ]
+    As_tiles = [As[:, i:i + 1] for i in range(k_tiles)]
+
+    for i in range(k_tiles):
+        for j in range(n_tiles):
+            a = A_tiles[i]
+            b = B_tiles[j][i]
+            c = C_tiles[j]
+            s = As_tiles[i] * Bs[j][i]
+            c[:, :] += torch.matmul(a, b.t()) * s
+
+    C = C.reshape(origin_C_shape).to(output_dtype)
+    return C
+
+
+def torch_w8a8_block_fp8_moe(a, w1, w2, w1_s, w2_s, score, topk, block_shape):
+    """Fused moe with block-wise quantization using native torch."""
+    B, D = a.shape
+    a = a.view(B, -1, D).repeat(1, topk, 1).reshape(-1, D)
+    out = torch.zeros(B * topk, w2.shape[1], dtype=a.dtype, device=a.device)
+    score = torch.softmax(score, dim=-1, dtype=torch.float32)
+    topk_weight, topk_ids = torch.topk(score, topk)
+    topk_weight = topk_weight.view(-1)
+    topk_ids = topk_ids.view(-1)
+
+    _, block_k = block_shape[0], block_shape[1]
+    a_q, a_s = native_per_token_group_quant_fp8(a, block_k)
+    a_q = a_q.to(torch.float32)
+    for i in range(w1.shape[0]):
+        mask = topk_ids == i
+        if mask.sum():
+            inter_out = native_w8a8_block_fp8_matmul(a_q[mask],
+                                                     w1[i],
+                                                     a_s[mask],
+                                                     w1_s[i],
+                                                     block_shape,
+                                                     output_dtype=a.dtype)
+            act_out = SiluAndMul().forward_native(inter_out)
+            act_out_q, act_out_s = native_per_token_group_quant_fp8(
+                act_out, block_k)
+            act_out = act_out.to(torch.float32)
+            out[mask] = native_w8a8_block_fp8_matmul(act_out_q,
+                                                     w2[i],
+                                                     act_out_s,
+                                                     w2_s[i],
+                                                     block_shape,
+                                                     output_dtype=a.dtype)
+    return (out.view(B, -1, w2.shape[1]) *
+            topk_weight.view(B, -1, 1).to(out.dtype)).sum(dim=1)
+
+
+# Skip all tests if CUDA is not available
+pytest.importorskip("torch.cuda")
+
+
+@pytest.fixture(autouse=True)
+def setup_cuda():
+    torch.set_default_device("cuda")
+
+
+@pytest.mark.parametrize("num_tokens,d,dtype,group_size,seed",
+                         itertools.product(NUM_TOKENS, D, DTYPES, GROUP_SIZE,
+                                           SEEDS))
+@torch.inference_mode()
+def test_per_token_group_quant_fp8(num_tokens, d, dtype, group_size, seed):
+    torch.manual_seed(seed)
+    x = torch.rand(num_tokens, d, dtype=dtype)
+
+    ref_out, ref_scale = native_per_token_group_quant_fp8(x, group_size)
+    out, scale = per_token_group_quant_fp8(x, group_size)
+
+    assert torch.allclose(out.to(torch.float32),
+                          ref_out.to(torch.float32),
+                          rtol=0.15)
+    assert torch.allclose(scale, ref_scale)
+
+
+@pytest.mark.parametrize("M,N,K,block_size,out_dtype,seed",
+                         itertools.product(M, N, K, BLOCK_SIZE, OUT_DTYPES,
+                                           SEEDS))
+@torch.inference_mode()
+def test_w8a8_block_fp8_matmul(M, N, K, block_size, out_dtype, seed):
+    torch.manual_seed(seed)
+    factor_for_scale = 1e-2
+    fp8_info = torch.finfo(torch.float8_e4m3fn)
+    fp8_max, fp8_min = fp8_info.max, fp8_info.min
+
+    A_fp32 = (torch.rand(M, K, dtype=torch.float32) - 0.5) * 2 * fp8_max
+    A_fp8 = A_fp32.clamp(min=fp8_min, max=fp8_max).to(torch.float8_e4m3fn)
+
+    B_fp32 = (torch.rand(N, K, dtype=torch.float32) - 0.5) * 2 * fp8_max
+    B_fp8 = B_fp32.clamp(min=fp8_min, max=fp8_max).to(torch.float8_e4m3fn)
+
+    block_n, block_k = block_size[0], block_size[1]
+    n_tiles = (N + block_n - 1) // block_n
+    k_tiles = (K + block_k - 1) // block_k
+
+    As = torch.rand(M, k_tiles, dtype=torch.float32) * factor_for_scale
+    Bs = torch.rand(n_tiles, k_tiles, dtype=torch.float32) * factor_for_scale
+
+    ref_out = native_w8a8_block_fp8_matmul(A_fp8, B_fp8, As, Bs, block_size,
+                                           out_dtype)
+    out = w8a8_block_fp8_matmul(A_fp8, B_fp8, As, Bs, block_size, out_dtype)
+
+    rel_diff = (torch.mean(
+        torch.abs(out.to(torch.float32) - ref_out.to(torch.float32))) /
+                torch.mean(torch.abs(ref_out.to(torch.float32))))
+    assert rel_diff < 0.001
+
+
+@pytest.mark.parametrize("M,N,K,E,topk,block_size,dtype,seed",
+                         itertools.product(M_moe, N_moe, K_moe, E, TOP_KS,
+                                           BLOCK_SIZE, DTYPES, SEEDS))
+@torch.inference_mode()
+def test_w8a8_block_fp8_fused_moe(M, N, K, E, topk, block_size, dtype, seed):
+    torch.manual_seed(seed)
+    factor_for_scale = 1e-2
+    fp8_info = torch.finfo(torch.float8_e4m3fn)
+    fp8_max, fp8_min = fp8_info.max, fp8_info.min
+
+    a = torch.randn((M, K), dtype=dtype) / 10
+
+    w1_bf16 = (torch.rand(
+        (E, 2 * N, K), dtype=torch.bfloat16) - 0.5) * 2 * fp8_max
+    w1 = w1_bf16.clamp(min=fp8_min, max=fp8_max).to(torch.float8_e4m3fn)
+    del w1_bf16
+
+    w2_bf16 = (torch.rand((E, K, N), dtype=torch.bfloat16) - 0.5) * 2 * fp8_max
+    w2 = w2_bf16.clamp(min=fp8_min, max=fp8_max).to(torch.float8_e4m3fn)
+    del w2_bf16
+
+    block_n, block_k = block_size[0], block_size[1]
+    n_tiles_w1 = (2 * N + block_n - 1) // block_n
+    n_tiles_w2 = (K + block_n - 1) // block_n
+    k_tiles_w1 = (K + block_k - 1) // block_k
+    k_tiles_w2 = (N + block_k - 1) // block_k
+
+    w1_s = torch.rand(
+        (E, n_tiles_w1, k_tiles_w1), dtype=torch.float32) * factor_for_scale
+    w2_s = torch.rand(
+        (E, n_tiles_w2, k_tiles_w2), dtype=torch.float32) * factor_for_scale
+
+    score = torch.randn((M, E), dtype=dtype)
+
+    out = fused_moe(
+        a,
+        w1,
+        w2,
+        score,
+        topk,
+        renormalize=False,
+        use_fp8_w8a8=True,
+        w1_scale=w1_s,
+        w2_scale=w2_s,
+        block_shape=block_size,
+    )
+    ref_out = torch_w8a8_block_fp8_moe(a, w1, w2, w1_s, w2_s, score, topk,
+                                       block_size)
+
+    print(f"{out.sum()=}")
+    print(f"{ref_out.sum()=}")
+
+    rel_diff = (torch.mean(
+        torch.abs(out.to(torch.float32) - ref_out.to(torch.float32))) /
+                torch.mean(torch.abs(ref_out.to(torch.float32))))
+    assert rel_diff < 0.03
diff --git a/vllm/config.py b/vllm/config.py
index de8ba029ddc23..58649236b4225 100644
--- a/vllm/config.py
+++ b/vllm/config.py
@@ -161,7 +161,7 @@ class ModelConfig:
             override default pooling config for the pooling model.
         logits_processor_pattern: Optional regex pattern specifying valid
             logits processor qualified names that can be passed with the
-            `logits_processors` extra completion argument. Defaults to None, 
+            `logits_processors` extra completion argument. Defaults to None,
             which allows no processors.
         generation_config: Configuration parameter file for generation.
     """
@@ -364,7 +364,7 @@ def __init__(self,
     def maybe_pull_model_tokenizer_for_s3(self, model: str,
                                           tokenizer: str) -> None:
         """
-        Pull the model config or tokenizer to a temporary 
+        Pull the model config or tokenizer to a temporary
         directory in case of S3.
 
         Args:
@@ -866,14 +866,14 @@ def try_get_generation_config(self) -> Dict[str, Any]:
 
     def get_diff_sampling_param(self) -> Dict[str, Any]:
         """
-        This method returns a dictionary containing the parameters 
-        that differ from the default sampling parameters, but only 
-        if `generation_config` is set. If `generation_config` is not 
+        This method returns a dictionary containing the parameters
+        that differ from the default sampling parameters, but only
+        if `generation_config` is set. If `generation_config` is not
         set, an empty dictionary is returned.
 
         Returns:
-            Dict[str, Any]: A dictionary with the differing sampling 
-            parameters if `generation_config` is set, otherwise an 
+            Dict[str, Any]: A dictionary with the differing sampling
+            parameters if `generation_config` is set, otherwise an
             empty dictionary.
         """
         if self.generation_config is None:
diff --git a/vllm/model_executor/layers/fused_moe/fused_moe.py b/vllm/model_executor/layers/fused_moe/fused_moe.py
index e6f9f01ef0f74..92e9ba3c9cebd 100644
--- a/vllm/model_executor/layers/fused_moe/fused_moe.py
+++ b/vllm/model_executor/layers/fused_moe/fused_moe.py
@@ -2,7 +2,7 @@
 import functools
 import json
 import os
-from typing import Any, Callable, Dict, Optional, Tuple
+from typing import Any, Callable, Dict, List, Optional, Tuple
 
 import torch
 import triton
@@ -11,6 +11,8 @@
 import vllm.envs as envs
 from vllm import _custom_ops as ops
 from vllm.logger import init_logger
+from vllm.model_executor.layers.quantization.utils.fp8_utils import (
+    per_token_group_quant_fp8)
 from vllm.platforms import current_platform
 from vllm.utils import direct_register_custom_op
 
@@ -45,8 +47,14 @@ def fused_moe_kernel(
         stride_bn,
         stride_cm,
         stride_cn,
+        stride_asm,
+        stride_ask,
         stride_bse,
+        stride_bsk,
         stride_bsn,
+        # Block size for block-wise quantization
+        group_n: tl.constexpr,
+        group_k: tl.constexpr,
         # Meta-parameters
         BLOCK_SIZE_M: tl.constexpr,
         BLOCK_SIZE_N: tl.constexpr,
@@ -125,8 +133,14 @@ def fused_moe_kernel(
         b_scale = tl.load(b_scale_ptrs)
 
     if use_fp8_w8a8:
-        a_scale = tl.load(a_scale_ptr)
-        b_scale = tl.load(b_scale_ptr + off_experts)
+        if group_k > 0 and group_n > 0:
+            a_scale_ptrs = a_scale_ptr + (offs_token // top_k) * stride_asm
+            offs_bsn = offs_bn // group_n
+            b_scale_ptrs = (b_scale_ptr + off_experts * stride_bse +
+                            offs_bsn * stride_bsn)
+        else:
+            a_scale = tl.load(a_scale_ptr)
+            b_scale = tl.load(b_scale_ptr + off_experts)
 
     # -----------------------------------------------------------
     # Iterate to compute a block of the C matrix.
@@ -149,7 +163,18 @@ def fused_moe_kernel(
         if use_int8_w8a16:
             accumulator = tl.dot(a, b.to(compute_type), acc=accumulator)
         elif use_fp8_w8a8:
-            accumulator = tl.dot(a, b, acc=accumulator)
+            if group_k > 0 and group_n > 0:
+                k_start = k * BLOCK_SIZE_K
+                offs_ks = k_start // group_k
+                a_scale = tl.load(a_scale_ptrs + offs_ks * stride_ask,
+                                  mask=token_mask,
+                                  other=0.0)
+                b_scale = tl.load(b_scale_ptrs + offs_ks * stride_bsk)
+
+                accumulator += tl.dot(a, b) * a_scale[:,
+                                                      None] * b_scale[None, :]
+            else:
+                accumulator = tl.dot(a, b, acc=accumulator)
         else:
             accumulator += tl.dot(a, b)
         # Advance the ptrs to the next K block.
@@ -164,7 +189,10 @@ def fused_moe_kernel(
     if use_int8_w8a16:
         accumulator = (accumulator * b_scale).to(compute_type)
     elif use_fp8_w8a8:
-        accumulator = (accumulator * a_scale * b_scale).to(compute_type)
+        if group_k > 0 and group_n > 0:
+            accumulator = accumulator.to(compute_type)
+        else:
+            accumulator = (accumulator * a_scale * b_scale).to(compute_type)
     else:
         accumulator = accumulator.to(compute_type)
     # -----------------------------------------------------------
@@ -233,22 +261,37 @@ def moe_align_block_size(
     return sorted_ids, expert_ids, num_tokens_post_pad
 
 
-def invoke_fused_moe_kernel(A: torch.Tensor, B: torch.Tensor, C: torch.Tensor,
+def invoke_fused_moe_kernel(A: torch.Tensor,
+                            B: torch.Tensor,
+                            C: torch.Tensor,
                             A_scale: Optional[torch.Tensor],
                             B_scale: Optional[torch.Tensor],
-                            topk_weights: torch.Tensor, topk_ids: torch.Tensor,
+                            topk_weights: torch.Tensor,
+                            topk_ids: torch.Tensor,
                             sorted_token_ids: torch.Tensor,
                             expert_ids: torch.Tensor,
                             num_tokens_post_padded: torch.Tensor,
-                            mul_routed_weight: bool, top_k: int,
-                            config: Dict[str, Any], compute_type: tl.dtype,
-                            use_fp8_w8a8: bool, use_int8_w8a16: bool) -> None:
+                            mul_routed_weight: bool,
+                            top_k: int,
+                            config: Dict[str, Any],
+                            compute_type: tl.dtype,
+                            use_fp8_w8a8: bool,
+                            use_int8_w8a16: bool,
+                            block_shape: Optional[List[int]] = None) -> None:
     assert topk_weights.stride(1) == 1
     assert sorted_token_ids.stride(0) == 1
 
     if use_fp8_w8a8:
-        A, A_scale = ops.scaled_fp8_quant(A, A_scale)
         assert B_scale is not None
+        if block_shape is None:
+            A, A_scale = ops.scaled_fp8_quant(A, A_scale)
+        else:
+            assert len(block_shape) == 2
+            block_n, block_k = block_shape[0], block_shape[1]
+            A, A_scale = per_token_group_quant_fp8(A, block_k)
+            assert triton.cdiv(A.shape[-1], block_k) == A_scale.shape[-1]
+            assert triton.cdiv(B.shape[-2], block_n) == B_scale.shape[-2]
+            assert triton.cdiv(B.shape[-1], block_k) == B_scale.shape[-1]
     elif use_int8_w8a16:
         assert B_scale is not None
     else:
@@ -279,8 +322,13 @@ def invoke_fused_moe_kernel(A: torch.Tensor, B: torch.Tensor, C: torch.Tensor,
         B.stride(1),
         C.stride(1),
         C.stride(2),
-        B_scale.stride(0) if B_scale is not None and use_int8_w8a16 else 0,
-        B_scale.stride(1) if B_scale is not None and use_int8_w8a16 else 0,
+        A_scale.stride(0) if A_scale is not None and A_scale.ndim == 2 else 0,
+        A_scale.stride(1) if A_scale is not None and A_scale.ndim == 2 else 0,
+        B_scale.stride(0) if B_scale is not None and B_scale.ndim >= 2 else 0,
+        B_scale.stride(2) if B_scale is not None and B_scale.ndim == 3 else 0,
+        B_scale.stride(1) if B_scale is not None and B_scale.ndim >= 2 else 0,
+        0 if block_shape is None else block_shape[0],
+        0 if block_shape is None else block_shape[1],
         MUL_ROUTED_WEIGHT=mul_routed_weight,
         top_k=top_k,
         compute_type=compute_type,
@@ -362,6 +410,7 @@ def try_get_optimal_moe_config(
     dtype: Optional[str],
     M: int,
     is_marlin: bool = False,
+    block_shape: Optional[List[int]] = None,
 ):
     from vllm.model_executor.layers.fused_moe import get_config
     override_config = get_config()
@@ -380,6 +429,12 @@ def try_get_optimal_moe_config(
             # Else use the default config
             config = get_default_config(M, E, N, w1_shape[2], top_k, dtype,
                                         is_marlin)
+    # NOTE: For block-wise quant,
+    # BLOCK_K must be divisible by block_shape[1]
+    # BLOCK_N and BLOCK_M has no requirements
+    if block_shape is not None:
+        config["BLOCK_SIZE_N"] = block_shape[0]
+        config["BLOCK_SIZE_K"] = block_shape[1]
     return config
 
 
@@ -479,10 +534,11 @@ def inplace_fused_experts(hidden_states: torch.Tensor,
                           w1_scale: Optional[torch.Tensor] = None,
                           w2_scale: Optional[torch.Tensor] = None,
                           a1_scale: Optional[torch.Tensor] = None,
-                          a2_scale: Optional[torch.Tensor] = None) -> None:
+                          a2_scale: Optional[torch.Tensor] = None,
+                          block_shape: Optional[List[int]] = None) -> None:
     fused_experts_impl(hidden_states, w1, w2, topk_weights, topk_ids, True,
                        use_fp8_w8a8, use_int8_w8a16, w1_scale, w2_scale,
-                       a1_scale, a2_scale)
+                       a1_scale, a2_scale, block_shape)
 
 
 def inplace_fused_experts_fake(
@@ -496,7 +552,8 @@ def inplace_fused_experts_fake(
         w1_scale: Optional[torch.Tensor] = None,
         w2_scale: Optional[torch.Tensor] = None,
         a1_scale: Optional[torch.Tensor] = None,
-        a2_scale: Optional[torch.Tensor] = None) -> None:
+        a2_scale: Optional[torch.Tensor] = None,
+        block_shape: Optional[List[int]] = None) -> None:
     pass
 
 
@@ -519,10 +576,11 @@ def outplace_fused_experts(
         w1_scale: Optional[torch.Tensor] = None,
         w2_scale: Optional[torch.Tensor] = None,
         a1_scale: Optional[torch.Tensor] = None,
-        a2_scale: Optional[torch.Tensor] = None) -> torch.Tensor:
+        a2_scale: Optional[torch.Tensor] = None,
+        block_shape: Optional[List[int]] = None) -> torch.Tensor:
     return fused_experts_impl(hidden_states, w1, w2, topk_weights, topk_ids,
                               False, use_fp8_w8a8, use_int8_w8a16, w1_scale,
-                              w2_scale, a1_scale, a2_scale)
+                              w2_scale, a1_scale, a2_scale, block_shape)
 
 
 def outplace_fused_experts_fake(
@@ -536,7 +594,8 @@ def outplace_fused_experts_fake(
         w1_scale: Optional[torch.Tensor] = None,
         w2_scale: Optional[torch.Tensor] = None,
         a1_scale: Optional[torch.Tensor] = None,
-        a2_scale: Optional[torch.Tensor] = None) -> torch.Tensor:
+        a2_scale: Optional[torch.Tensor] = None,
+        block_shape: Optional[List[int]] = None) -> torch.Tensor:
     return torch.empty_like(hidden_states)
 
 
@@ -559,18 +618,22 @@ def fused_experts(hidden_states: torch.Tensor,
                   w1_scale: Optional[torch.Tensor] = None,
                   w2_scale: Optional[torch.Tensor] = None,
                   a1_scale: Optional[torch.Tensor] = None,
-                  a2_scale: Optional[torch.Tensor] = None):
+                  a2_scale: Optional[torch.Tensor] = None,
+                  block_shape: Optional[List[int]] = None):
     if inplace:
         torch.ops.vllm.inplace_fused_experts(hidden_states, w1, w2,
                                              topk_weights, topk_ids,
                                              use_fp8_w8a8, use_int8_w8a16,
                                              w1_scale, w2_scale, a1_scale,
-                                             a2_scale)
+                                             a2_scale, block_shape)
         return hidden_states
     else:
-        return torch.ops.vllm.outplace_fused_experts(
-            hidden_states, w1, w2, topk_weights, topk_ids, use_fp8_w8a8,
-            use_int8_w8a16, w1_scale, w2_scale, a1_scale, a2_scale)
+        return torch.ops.vllm.outplace_fused_experts(hidden_states, w1, w2,
+                                                     topk_weights, topk_ids,
+                                                     use_fp8_w8a8,
+                                                     use_int8_w8a16, w1_scale,
+                                                     w2_scale, a1_scale,
+                                                     a2_scale, block_shape)
 
 
 def fused_experts_impl(hidden_states: torch.Tensor,
@@ -584,7 +647,8 @@ def fused_experts_impl(hidden_states: torch.Tensor,
                        w1_scale: Optional[torch.Tensor] = None,
                        w2_scale: Optional[torch.Tensor] = None,
                        a1_scale: Optional[torch.Tensor] = None,
-                       a2_scale: Optional[torch.Tensor] = None):
+                       a2_scale: Optional[torch.Tensor] = None,
+                       block_shape: Optional[List[int]] = None):
     # Check constraints.
     assert hidden_states.shape[1] == w1.shape[2], "Hidden size mismatch"
     assert topk_weights.shape == topk_ids.shape, "topk shape mismatch"
@@ -611,6 +675,7 @@ def fused_experts_impl(hidden_states: torch.Tensor,
         w2.shape,
         topk_ids.shape[1],
         config_dtype,
+        block_shape=block_shape,
     )
 
     config = get_config_func(M)
@@ -674,7 +739,8 @@ def fused_experts_impl(hidden_states: torch.Tensor,
                                 config,
                                 compute_type=compute_type,
                                 use_fp8_w8a8=use_fp8_w8a8,
-                                use_int8_w8a16=use_int8_w8a16)
+                                use_int8_w8a16=use_int8_w8a16,
+                                block_shape=block_shape)
 
         ops.silu_and_mul(intermediate_cache2, intermediate_cache1.view(-1, N))
 
@@ -693,7 +759,8 @@ def fused_experts_impl(hidden_states: torch.Tensor,
                                 config,
                                 compute_type=compute_type,
                                 use_fp8_w8a8=use_fp8_w8a8,
-                                use_int8_w8a16=use_int8_w8a16)
+                                use_int8_w8a16=use_int8_w8a16,
+                                block_shape=block_shape)
 
         ops.moe_sum(intermediate_cache3.view(*intermediate_cache3.shape),
                     out_hidden_states[begin_chunk_idx:end_chunk_idx])
@@ -718,6 +785,7 @@ def fused_moe(
     w2_scale: Optional[torch.Tensor] = None,
     a1_scale: Optional[torch.Tensor] = None,
     a2_scale: Optional[torch.Tensor] = None,
+    block_shape: Optional[List[int]] = None,
 ) -> torch.Tensor:
     """
     This function computes a Mixture of Experts (MoE) layer using two sets of
@@ -745,6 +813,12 @@ def fused_moe(
         w1.
     - w2_scale (Optional[torch.Tensor]): Optional scale to be used for
         w2.
+    - a1_scale (Optional[torch.Tensor]): Optional scale to be used for
+        a1.
+    - a2_scale (Optional[torch.Tensor]): Optional scale to be used for
+        a2.
+    - block_shape: (Optional[List[int]]): Optional block size for block-wise
+        quantization.
 
     Returns:
     - torch.Tensor: The output tensor after applying the MoE layer.
@@ -775,4 +849,5 @@ def fused_moe(
                          w1_scale=w1_scale,
                          w2_scale=w2_scale,
                          a1_scale=a1_scale,
-                         a2_scale=a2_scale)
+                         a2_scale=a2_scale,
+                         block_shape=block_shape)
diff --git a/vllm/model_executor/layers/fused_moe/layer.py b/vllm/model_executor/layers/fused_moe/layer.py
index 8c6f7c6e06515..55c0a202920ff 100644
--- a/vllm/model_executor/layers/fused_moe/layer.py
+++ b/vllm/model_executor/layers/fused_moe/layer.py
@@ -29,6 +29,7 @@ class FusedMoeWeightScaleSupported(Enum):
     TENSOR = "tensor"
     CHANNEL = "channel"
     GROUP = "group"
+    BLOCK = "block"
 
 
 class FusedMoEMethodBase(QuantizeMethodBase):
@@ -199,6 +200,7 @@ def __init__(
                         get_tensor_model_parallel_world_size())
         self.top_k = top_k
         self.num_experts = num_experts
+        assert intermediate_size % self.tp_size == 0
         self.intermediate_size_per_partition = intermediate_size // self.tp_size
         self.reduce_results = reduce_results
         self.renormalize = renormalize
@@ -398,7 +400,10 @@ def weight_loader(self, param: torch.nn.Parameter,
                     loaded_weight=loaded_weight,
                     expert_data=expert_data,
                     tp_rank=tp_rank)
-            elif quant_method == FusedMoeWeightScaleSupported.GROUP.value:
+            elif quant_method in [
+                    FusedMoeWeightScaleSupported.GROUP.value,
+                    FusedMoeWeightScaleSupported.BLOCK.value,
+            ]:
                 self._load_model_weight_or_group_weight_scale(
                     shard_id=shard_id,
                     shard_dim=shard_dim,
diff --git a/vllm/model_executor/layers/linear.py b/vllm/model_executor/layers/linear.py
index 46ef11e7d02c6..33b221b994b2b 100644
--- a/vllm/model_executor/layers/linear.py
+++ b/vllm/model_executor/layers/linear.py
@@ -14,11 +14,14 @@
 from vllm.logger import init_logger
 from vllm.model_executor.layers.quantization.base_config import (
     QuantizationConfig, QuantizeMethodBase)
+# yapf: disable
 from vllm.model_executor.parameter import (BasevLLMParameter,
+                                           BlockQuantScaleParameter,
                                            PackedColumnParameter,
                                            PackedvLLMParameter,
                                            PerTensorScaleParameter,
                                            RowvLLMParameter)
+# yapf: enable
 from vllm.model_executor.utils import set_weight_attrs
 
 logger = init_logger(__name__)
@@ -623,8 +626,24 @@ def weight_loader_v2(self,
         assert loaded_shard_id < len(self.output_sizes)
 
         tp_size = get_tensor_model_parallel_world_size()
-        shard_offset = sum(self.output_sizes[:loaded_shard_id]) // tp_size
-        shard_size = self.output_sizes[loaded_shard_id] // tp_size
+
+        if isinstance(param, BlockQuantScaleParameter):
+            from vllm.model_executor.layers.quantization.fp8 import (
+                Fp8LinearMethod, Fp8MoEMethod)
+            assert self.quant_method is not None
+            assert isinstance(self.quant_method,
+                              (Fp8LinearMethod, Fp8MoEMethod))
+            weight_block_size = self.quant_method.quant_config.weight_block_size
+            assert weight_block_size is not None
+            block_n, _ = weight_block_size[0], weight_block_size[1]
+            shard_offset = (
+                (sum(self.output_sizes[:loaded_shard_id]) + block_n - 1) //
+                block_n) // tp_size
+            shard_size = ((self.output_sizes[loaded_shard_id] + block_n - 1) //
+                          block_n // tp_size)
+        else:
+            shard_offset = sum(self.output_sizes[:loaded_shard_id]) // tp_size
+            shard_size = self.output_sizes[loaded_shard_id] // tp_size
 
         param.load_merged_column_weight(loaded_weight=loaded_weight,
                                         shard_id=loaded_shard_id,
diff --git a/vllm/model_executor/layers/quantization/fp8.py b/vllm/model_executor/layers/quantization/fp8.py
index 978e727bc7cb3..5dfd86727a02a 100644
--- a/vllm/model_executor/layers/quantization/fp8.py
+++ b/vllm/model_executor/layers/quantization/fp8.py
@@ -6,6 +6,7 @@
 
 import vllm.envs as envs
 from vllm import _custom_ops as ops
+from vllm.distributed import get_tensor_model_parallel_world_size
 from vllm.logger import init_logger
 from vllm.model_executor.layers.fused_moe import (FusedMoE, FusedMoEMethodBase,
                                                   FusedMoeWeightScaleSupported)
@@ -14,6 +15,8 @@
 from vllm.model_executor.layers.quantization.base_config import (
     QuantizationConfig, QuantizeMethodBase)
 from vllm.model_executor.layers.quantization.kv_cache import BaseKVCacheMethod
+from vllm.model_executor.layers.quantization.utils.fp8_utils import (
+    apply_w8a8_block_fp8_linear)
 from vllm.model_executor.layers.quantization.utils.marlin_utils_fp8 import (
     apply_fp8_marlin_linear, prepare_fp8_layer_for_marlin)
 from vllm.model_executor.layers.quantization.utils.quant_utils import (
@@ -22,7 +25,8 @@
     all_close_1d, apply_fp8_linear, convert_to_channelwise,
     cutlass_fp8_supported, normalize_e4m3fn_to_e4m3fnuz, per_tensor_dequantize,
     requantize_with_max_scale)
-from vllm.model_executor.parameter import (ModelWeightParameter,
+from vllm.model_executor.parameter import (BlockQuantScaleParameter,
+                                           ModelWeightParameter,
                                            PerTensorScaleParameter)
 from vllm.model_executor.utils import set_weight_attrs
 from vllm.platforms import current_platform
@@ -41,6 +45,7 @@ def __init__(
         is_checkpoint_fp8_serialized: bool = False,
         activation_scheme: str = "dynamic",
         ignored_layers: Optional[List[str]] = None,
+        weight_block_size: Optional[List[int]] = None,
     ) -> None:
         self.is_checkpoint_fp8_serialized = is_checkpoint_fp8_serialized
         if is_checkpoint_fp8_serialized:
@@ -51,6 +56,20 @@ def __init__(
                 f"Unsupported activation scheme {activation_scheme}")
         self.activation_scheme = activation_scheme
         self.ignored_layers = ignored_layers or []
+        if weight_block_size is not None:
+            if not is_checkpoint_fp8_serialized:
+                raise ValueError(
+                    "The block-wise quantization only supports fp8-serialized "
+                    "checkpoint for now.")
+            if len(weight_block_size) != 2:
+                raise ValueError(
+                    "The quantization block size of weight must have 2 "
+                    f"dimensions, but got {len(weight_block_size)} dimensions")
+            if activation_scheme != "dynamic":
+                raise ValueError("The block-wise quantization only supports "
+                                 "dynamic activation scheme for now, but got "
+                                 f"{activation_scheme} activation scheme.")
+        self.weight_block_size = weight_block_size
 
     @classmethod
     def get_name(cls) -> str:
@@ -74,9 +93,12 @@ def from_config(cls, config: Dict[str, Any]) -> "Fp8Config":
         is_checkpoint_fp8_serialized = ("fp8" in quant_method)
         activation_scheme = cls.get_from_keys(config, ["activation_scheme"])
         ignored_layers = cls.get_from_keys_or(config, ["ignored_layers"], None)
+        weight_block_size = cls.get_from_keys_or(config, ["weight_block_size"],
+                                                 None)
         return cls(is_checkpoint_fp8_serialized=is_checkpoint_fp8_serialized,
                    activation_scheme=activation_scheme,
-                   ignored_layers=ignored_layers)
+                   ignored_layers=ignored_layers,
+                   weight_block_size=weight_block_size)
 
     def get_quant_method(self, layer: torch.nn.Module,
                          prefix: str) -> Optional["QuantizeMethodBase"]:
@@ -123,6 +145,11 @@ def __init__(self, quant_config: Fp8Config):
         if current_platform.is_rocm():
             self.use_marlin = False
 
+        self.block_quant = self.quant_config.weight_block_size is not None
+        if self.block_quant:
+            # Marlin doesn't support block-wise fp8
+            self.use_marlin = False
+
     def create_weights(
         self,
         layer: torch.nn.Module,
@@ -133,10 +160,34 @@ def create_weights(
         params_dtype: torch.dtype,
         **extra_weight_attrs,
     ):
-        del input_size, output_size
         output_size_per_partition = sum(output_partition_sizes)
         weight_loader = extra_weight_attrs.get("weight_loader")
 
+        if self.block_quant:
+            tp_size = get_tensor_model_parallel_world_size()
+            assert self.quant_config.weight_block_size is not None
+            block_n, block_k = (
+                self.quant_config.weight_block_size[0],
+                self.quant_config.weight_block_size[1],
+            )
+            # Required by row parallel
+            if (tp_size > 1
+                    and input_size // input_size_per_partition == tp_size
+                    and input_size_per_partition % block_k != 0):
+                raise ValueError(
+                    f"Weight input_size_per_partition = "
+                    f"{input_size_per_partition} is not divisible by "
+                    f"weight quantization block_k = {block_k}.")
+            # Required by column parallel or enabling merged weights
+            if (tp_size > 1 and output_size // output_size_per_partition
+                    == tp_size) or len(output_partition_sizes) > 1:
+                for output_partition_size in output_partition_sizes:
+                    if output_partition_size % block_n != 0:
+                        raise ValueError(
+                            f"Weight output_partition_size = "
+                            f"{output_partition_size} is not divisible by "
+                            f"weight quantization block_n = {block_n}.")
+
         layer.logical_widths = output_partition_sizes
 
         layer.input_size_per_partition = input_size_per_partition
@@ -161,12 +212,29 @@ def create_weights(
         # Otherwise, wait until process_weights_after_loading.
         if self.quant_config.is_checkpoint_fp8_serialized:
             # WEIGHT SCALE
-            scale = PerTensorScaleParameter(data=torch.empty(
-                len(output_partition_sizes), dtype=torch.float32),
-                                            weight_loader=weight_loader)
-
-            scale[:] = torch.finfo(torch.float32).min
-            layer.register_parameter("weight_scale", scale)
+            if not self.block_quant:
+                scale = PerTensorScaleParameter(
+                    data=torch.empty(len(output_partition_sizes),
+                                     dtype=torch.float32),
+                    weight_loader=weight_loader,
+                )
+                scale[:] = torch.finfo(torch.float32).min
+                layer.register_parameter("weight_scale", scale)
+            else:
+                assert self.quant_config.activation_scheme == "dynamic"
+                scale = BlockQuantScaleParameter(
+                    data=torch.empty(
+                        (output_size_per_partition + block_n - 1) // block_n,
+                        (input_size_per_partition + block_k - 1) // block_k,
+                        dtype=torch.float32,
+                    ),
+                    input_dim=1,
+                    output_dim=0,
+                    weight_loader=weight_loader,
+                )
+                scale[:] = torch.finfo(torch.float32).min
+                # The weight_scale_inv name is intentional for deepseekv3
+                layer.register_parameter("weight_scale_inv", scale)
 
             # INPUT ACTIVATION SCALE
             if self.quant_config.activation_scheme == "static":
@@ -180,6 +248,9 @@ def create_weights(
                 layer.register_parameter("input_scale", None)
 
     def process_weights_after_loading(self, layer: Module) -> None:
+        # Block quant doesn't need to process weights after loading
+        if self.block_quant:
+            return
         layer.weight = torch.nn.Parameter(layer.weight.data,
                                           requires_grad=False)
         # If checkpoint not serialized fp8, quantize the weights.
@@ -266,6 +337,17 @@ def apply(self,
                 size_k=layer.input_size_per_partition,
                 bias=bias)
 
+        if self.block_quant:
+            assert self.quant_config.weight_block_size is not None
+            return apply_w8a8_block_fp8_linear(
+                input=x,
+                weight=layer.weight,
+                block_size=self.quant_config.weight_block_size,
+                weight_scale=layer.weight_scale_inv,
+                input_scale=layer.input_scale,
+                bias=bias,
+            )
+
         return apply_fp8_linear(
             input=x,
             weight=layer.weight,
@@ -291,6 +373,7 @@ class Fp8MoEMethod(FusedMoEMethodBase):
 
     def __init__(self, quant_config: Fp8Config):
         self.quant_config = quant_config
+        self.block_quant = self.quant_config.weight_block_size is not None
 
     def create_weights(self, layer: Module, num_experts: int, hidden_size: int,
                        intermediate_size: int, params_dtype: torch.dtype,
@@ -298,6 +381,27 @@ def create_weights(self, layer: Module, num_experts: int, hidden_size: int,
 
         if self.quant_config.is_checkpoint_fp8_serialized:
             params_dtype = torch.float8_e4m3fn
+        if self.block_quant:
+            assert self.quant_config.weight_block_size is not None
+            tp_size = get_tensor_model_parallel_world_size()
+            block_n, block_k = (
+                self.quant_config.weight_block_size[0],
+                self.quant_config.weight_block_size[1],
+            )
+            # NOTE: To ensure proper alignment of the block-wise quantization
+            # scales, the output_size of the weights for both the gate and up
+            # layers must be divisible by block_n.
+            # Required by column parallel or enabling merged weights
+            if intermediate_size % block_n != 0:
+                raise ValueError(
+                    f"The output_size of gate's and up's weight = "
+                    f"{intermediate_size} is not divisible by "
+                    f"weight quantization block_n = {block_n}.")
+            if (tp_size > 1 and intermediate_size % block_k != 0):
+                # Required by row parallel
+                raise ValueError(f"The input_size of down's weight = "
+                                 f"{intermediate_size} is not divisible by "
+                                 f"weight quantization block_k = {block_k}.")
 
         # WEIGHTS
         w13_weight = torch.nn.Parameter(torch.empty(num_experts,
@@ -317,21 +421,45 @@ def create_weights(self, layer: Module, num_experts: int, hidden_size: int,
         set_weight_attrs(w2_weight, extra_weight_attrs)
 
         # WEIGHT_SCALES
-        # Allocate 2 scales for w1 and w3 respectively.
-        # They will be combined to a single scale after weight loading.
-        w13_weight_scale = torch.nn.Parameter(torch.ones(num_experts,
-                                                         2,
-                                                         dtype=torch.float32),
-                                              requires_grad=False)
-        layer.register_parameter("w13_weight_scale", w13_weight_scale)
+        if not self.block_quant:
+            # Allocate 2 scales for w1 and w3 respectively.
+            # They will be combined to a single scale after weight loading.
+            w13_weight_scale = torch.nn.Parameter(torch.ones(
+                num_experts, 2, dtype=torch.float32),
+                                                  requires_grad=False)
+            w2_weight_scale = torch.nn.Parameter(torch.ones(
+                num_experts, dtype=torch.float32),
+                                                 requires_grad=False)
+            layer.register_parameter("w13_weight_scale", w13_weight_scale)
+            layer.register_parameter("w2_weight_scale", w2_weight_scale)
+        else:
+            w13_weight_scale = torch.nn.Parameter(
+                torch.ones(
+                    num_experts,
+                    2 * ((intermediate_size + block_n - 1) // block_n),
+                    (hidden_size + block_k - 1) // block_k,
+                    dtype=torch.float32,
+                ),
+                requires_grad=False,
+            )
+            w2_weight_scale = torch.nn.Parameter(
+                torch.ones(
+                    num_experts,
+                    (hidden_size + block_n - 1) // block_n,
+                    (intermediate_size + block_k - 1) // block_k,
+                    dtype=torch.float32,
+                ),
+                requires_grad=False,
+            )
+            layer.register_parameter("w13_weight_scale_inv", w13_weight_scale)
+            layer.register_parameter("w2_weight_scale_inv", w2_weight_scale)
+            assert self.quant_config.activation_scheme == "dynamic"
 
-        w2_weight_scale = torch.nn.Parameter(torch.ones(num_experts,
-                                                        dtype=torch.float32),
-                                             requires_grad=False)
-        layer.register_parameter("w2_weight_scale", w2_weight_scale)
         # Add the quantization method used (per tensor/grouped/channel)
         # to ensure the weight scales are loaded in properly
         extra_weight_attrs.update(
+            {"quant_method": FusedMoeWeightScaleSupported.BLOCK.
+             value} if self.block_quant else
             {"quant_method": FusedMoeWeightScaleSupported.TENSOR.value})
         # If loading fp8 checkpoint, pass the weight loaders.
         # If loading an fp16 checkpoint, do not (we will quantize in
@@ -364,7 +492,9 @@ def create_weights(self, layer: Module, num_experts: int, hidden_size: int,
             layer.w2_input_scale = None
 
     def process_weights_after_loading(self, layer: Module) -> None:
-
+        # Block quant doesn't need to process weights after loading
+        if self.block_quant:
+            return
         # If checkpoint is fp16, quantize in place.
         if not self.quant_config.is_checkpoint_fp8_serialized:
             # If rocm, use float8_e4m3fnuz as dtype
@@ -489,17 +619,22 @@ def apply(
             num_expert_group=num_expert_group,
             custom_routing_function=custom_routing_function)
 
-        return fused_experts(x,
-                             layer.w13_weight,
-                             layer.w2_weight,
-                             topk_weights=topk_weights,
-                             topk_ids=topk_ids,
-                             inplace=True,
-                             use_fp8_w8a8=True,
-                             w1_scale=layer.w13_weight_scale,
-                             w2_scale=layer.w2_weight_scale,
-                             a1_scale=layer.w13_input_scale,
-                             a2_scale=layer.w2_input_scale)
+        return fused_experts(
+            x,
+            layer.w13_weight,
+            layer.w2_weight,
+            topk_weights=topk_weights,
+            topk_ids=topk_ids,
+            inplace=True,
+            use_fp8_w8a8=True,
+            w1_scale=(layer.w13_weight_scale_inv
+                      if self.block_quant else layer.w13_weight_scale),
+            w2_scale=(layer.w2_weight_scale_inv
+                      if self.block_quant else layer.w2_weight_scale),
+            a1_scale=layer.w13_input_scale,
+            a2_scale=layer.w2_input_scale,
+            block_shape=self.quant_config.weight_block_size,
+        )
 
 
 class Fp8KVCacheMethod(BaseKVCacheMethod):
diff --git a/vllm/model_executor/layers/quantization/utils/fp8_utils.py b/vllm/model_executor/layers/quantization/utils/fp8_utils.py
new file mode 100644
index 0000000000000..f3c3e130e4161
--- /dev/null
+++ b/vllm/model_executor/layers/quantization/utils/fp8_utils.py
@@ -0,0 +1,353 @@
+# Adapted from https://github.com/sgl-project/sglang/pull/2575
+from typing import List, Optional, Tuple
+
+import torch
+import triton
+import triton.language as tl
+
+
+def apply_w8a8_block_fp8_linear(
+    input: torch.Tensor,
+    weight: torch.Tensor,
+    block_size: List[int],
+    weight_scale: torch.Tensor,
+    input_scale: Optional[torch.Tensor] = None,
+    bias: Optional[torch.Tensor] = None,
+) -> torch.Tensor:
+    assert input_scale is None
+    # View input as 2D matrix for fp8 methods
+    input_2d = input.view(-1, input.shape[-1])
+    output_shape = [*input.shape[:-1], weight.shape[0]]
+
+    q_input, x_scale = per_token_group_quant_fp8(input_2d, block_size[1])
+    output = w8a8_block_fp8_matmul(q_input,
+                                   weight,
+                                   x_scale,
+                                   weight_scale,
+                                   block_size,
+                                   output_dtype=input.dtype)
+
+    if bias is not None:
+        output = output + bias
+    return output.to(dtype=input.dtype).view(*output_shape)
+
+
+def input_to_float8(
+    x: torch.Tensor,
+    dtype: torch.dtype = torch.float8_e4m3fn
+) -> Tuple[torch.Tensor, torch.Tensor]:
+    """This function quantizes input values to float8 values "
+    "with tensor-wise quantization."""
+    finfo = torch.finfo(dtype)
+    min_val, max_val = x.aminmax()
+    amax = torch.maximum(min_val.abs(), max_val.abs()).clamp(min=1e-12)
+    scale = finfo.max / amax
+    x_scl_sat = (x * scale).clamp(min=finfo.min, max=finfo.max)
+    return x_scl_sat.to(dtype).contiguous(), scale.float().reciprocal()
+
+
+def block_quant_to_tensor_quant(
+    x_q_block: torch.Tensor,
+    x_s: torch.Tensor,
+    block_size: List[int],
+) -> Tuple[torch.Tensor, torch.Tensor]:
+    """This function converts block-wise quantization to tensor-wise
+    quantization. The inputs are block-wise quantization tensor `x_q_block`,
+    block-wise quantization scale and the block size.
+    The outputs are tensor-wise quantization tensor and tensor-wise
+    quantization scale. Note only float8 is supported for now.
+    """
+    block_n, block_k = block_size[0], block_size[1]
+    n, k = x_q_block.shape
+    n_tiles = (n + block_n - 1) // block_n
+    k_tiles = (k + block_k - 1) // block_k
+    assert n_tiles == x_s.shape[0]
+    assert k_tiles == x_s.shape[1]
+
+    x_dq_block = x_q_block.to(torch.float32)
+
+    x_dq_block_tiles = [[
+        x_dq_block[j * block_n:min((j + 1) * block_n, n),
+                   i * block_k:min((i + 1) * block_k, k), ]
+        for i in range(k_tiles)
+    ] for j in range(n_tiles)]
+
+    for i in range(k_tiles):
+        for j in range(n_tiles):
+            x_dq_block_tiles[j][i][:, :] = x_dq_block_tiles[j][i] * x_s[j][i]
+
+    x_q_tensor, scale = input_to_float8(x_dq_block, dtype=x_q_block.dtype)
+    return x_q_tensor, scale
+
+
+@triton.jit
+def _per_token_group_quant_fp8(
+    # Pointers to inputs and output
+    y_ptr,
+    y_q_ptr,
+    y_s_ptr,
+    # Stride of input
+    y_stride,
+    # Columns of input
+    N,
+    # Avoid to divide zero
+    eps,
+    # Information for float8
+    fp8_min,
+    fp8_max,
+    # Meta-parameters
+    BLOCK: tl.constexpr,
+):
+    """A Triton-accelerated function to perform per-token-group
+    quantization on a tensor.
+    This function converts the tensor values into float8 values.
+    """
+    # Map the program id to the row of X and Y it should compute.
+    g_id = tl.program_id(0)
+    y_ptr += g_id * y_stride
+    y_q_ptr += g_id * y_stride
+    y_s_ptr += g_id
+
+    cols = tl.arange(0, BLOCK)  # N <= BLOCK
+    mask = cols < N
+
+    y = tl.load(y_ptr + cols, mask=mask, other=0.0).to(tl.float32)
+    # Quant
+    _absmax = tl.maximum(tl.max(tl.abs(y)), eps)
+    y_s = _absmax / fp8_max
+    y_q = tl.clamp(y / y_s, fp8_min, fp8_max).to(y_q_ptr.dtype.element_ty)
+
+    tl.store(y_q_ptr + cols, y_q, mask=mask)
+    tl.store(y_s_ptr, y_s)
+
+
+def per_token_group_quant_fp8(
+    x: torch.Tensor,
+    group_size: int,
+    eps: float = 1e-10,
+    dtype: torch.dtype = torch.float8_e4m3fn,
+) -> Tuple[torch.Tensor, torch.Tensor]:
+    """Function to perform per-token-group quantization on an input tensor `x`.
+    It converts the tensor values into signed float8 values and returns the
+    quantized tensor along with the scaling factor used for quantization.
+    Args:
+        x: The input tenosr with ndim >= 2.
+        group_size: The group size used for quantization.
+        eps: The minimum to avoid dividing zero.
+        dtype: The dype of output tensor. Note that only `torch.float8_e4m3fn`
+        is supported for now.
+    Returns:
+        Tuple[torch.Tensor, torch.Tensor]: The quantized tensor and the
+        scaling factor for quantization.
+    """
+    assert (x.shape[-1] % group_size == 0), (
+        f"the last dimension of `x` {x.shape[-1]} must be divisible "
+        f"by `group_size` {group_size}")
+    assert x.is_contiguous(), "`x` must be contiguous"
+
+    finfo = torch.finfo(dtype)
+    fp8_min = finfo.min
+    fp8_max = finfo.max
+
+    x_q = torch.empty_like(x, device=x.device, dtype=dtype)
+    M = x.numel() // group_size
+    N = group_size
+    x_s = torch.empty(
+        x.shape[:-1] + (x.shape[-1] // group_size, ),
+        device=x.device,
+        dtype=torch.float32,
+    )
+
+    BLOCK = triton.next_power_of_2(N)
+    # heuristics for number of warps
+    num_warps = min(max(BLOCK // 256, 1), 8)
+    num_stages = 1
+    _per_token_group_quant_fp8[(M, )](
+        x,
+        x_q,
+        x_s,
+        group_size,
+        N,
+        eps,
+        fp8_min=fp8_min,
+        fp8_max=fp8_max,
+        BLOCK=BLOCK,
+        num_warps=num_warps,
+        num_stages=num_stages,
+    )
+
+    return x_q, x_s
+
+
+@triton.jit
+def _w8a8_block_fp8_matmul(
+    # Pointers to inputs and output
+    A,
+    B,
+    C,
+    As,
+    Bs,
+    # Shape for matmul
+    M,
+    N,
+    K,
+    # Block size for block-wise quantization
+    group_n,
+    group_k,
+    # Stride for inputs and output
+    stride_am,
+    stride_ak,
+    stride_bk,
+    stride_bn,
+    stride_cm,
+    stride_cn,
+    stride_As_m,
+    stride_As_k,
+    stride_Bs_k,
+    stride_Bs_n,
+    # Meta-parameters
+    BLOCK_SIZE_M: tl.constexpr,
+    BLOCK_SIZE_N: tl.constexpr,
+    BLOCK_SIZE_K: tl.constexpr,
+    GROUP_SIZE_M: tl.constexpr,
+):
+    """Triton-accelerated function used to perform linear operations (dot
+    product) on input tensors `A` and `B` with block-wise quantization, and
+    store the result in output tensor `C`.
+    """
+
+    pid = tl.program_id(axis=0)
+    num_pid_m = tl.cdiv(M, BLOCK_SIZE_M)
+    num_pid_n = tl.cdiv(N, BLOCK_SIZE_N)
+    num_pid_in_group = GROUP_SIZE_M * num_pid_n
+    group_id = pid // num_pid_in_group
+    first_pid_m = group_id * GROUP_SIZE_M
+    group_size_m = min(num_pid_m - first_pid_m, GROUP_SIZE_M)
+    pid_m = first_pid_m + (pid % group_size_m)
+    pid_n = (pid % num_pid_in_group) // group_size_m
+
+    offs_am = (pid_m * BLOCK_SIZE_M + tl.arange(0, BLOCK_SIZE_M)) % M
+    offs_bn = (pid_n * BLOCK_SIZE_N + tl.arange(0, BLOCK_SIZE_N)) % N
+    offs_k = tl.arange(0, BLOCK_SIZE_K)
+    a_ptrs = A + (offs_am[:, None] * stride_am + offs_k[None, :] * stride_ak)
+    b_ptrs = B + (offs_k[:, None] * stride_bk + offs_bn[None, :] * stride_bn)
+
+    As_ptrs = As + offs_am * stride_As_m
+    offs_bsn = offs_bn // group_n
+    Bs_ptrs = Bs + offs_bsn * stride_Bs_n
+
+    accumulator = tl.zeros((BLOCK_SIZE_M, BLOCK_SIZE_N), dtype=tl.float32)
+    for k in range(0, tl.cdiv(K, BLOCK_SIZE_K)):
+        a = tl.load(a_ptrs,
+                    mask=offs_k[None, :] < K - k * BLOCK_SIZE_K,
+                    other=0.0)
+        b = tl.load(b_ptrs,
+                    mask=offs_k[:, None] < K - k * BLOCK_SIZE_K,
+                    other=0.0)
+
+        k_start = k * BLOCK_SIZE_K
+        offs_ks = k_start // group_k
+        a_s = tl.load(As_ptrs + offs_ks * stride_As_k)
+        b_s = tl.load(Bs_ptrs + offs_ks * stride_Bs_k)
+
+        accumulator += tl.dot(a, b) * a_s[:, None] * b_s[None, :]
+        a_ptrs += BLOCK_SIZE_K * stride_ak
+        b_ptrs += BLOCK_SIZE_K * stride_bk
+
+    if C.dtype.element_ty == tl.bfloat16:
+        c = accumulator.to(tl.bfloat16)
+    elif C.dtype.element_ty == tl.float16:
+        c = accumulator.to(tl.float16)
+    else:
+        c = accumulator.to(tl.float32)
+
+    offs_cm = pid_m * BLOCK_SIZE_M + tl.arange(0, BLOCK_SIZE_M)
+    offs_cn = pid_n * BLOCK_SIZE_N + tl.arange(0, BLOCK_SIZE_N)
+    c_ptrs = C + stride_cm * offs_cm[:, None] + stride_cn * offs_cn[None, :]
+    c_mask = (offs_cm[:, None] < M) & (offs_cn[None, :] < N)
+    tl.store(c_ptrs, c, mask=c_mask)
+
+
+def w8a8_block_fp8_matmul(
+    A: torch.Tensor,
+    B: torch.Tensor,
+    As: torch.Tensor,
+    Bs: torch.Tensor,
+    block_size: List[int],
+    output_dtype: torch.dtype = torch.float16,
+) -> torch.Tensor:
+    """This function performs matrix multiplication with block-wise
+    quantization.
+    It takes two input tensors `A` and `B` with scales `As` and `Bs`.
+    The output is returned in the specified `output_dtype`.
+    Args:
+        A: The input tensor, e.g., activation.
+        B: The input tensor, e.g., weight.
+        As: The per-token-group quantization scale for `A`.
+        Bs: The per-block quantization scale for `B`.
+        block_size: The block size for per-block quantization. It should
+        be 2-dim, e.g., [128, 128].
+        output_dytpe: The dtype of the returned tensor.
+    Returns:
+        torch.Tensor: The result of matmul.
+    """
+    assert len(block_size) == 2
+    block_n, block_k = block_size[0], block_size[1]
+
+    assert A.shape[-1] == B.shape[-1]
+    assert A.shape[:-1] == As.shape[:-1] and A.is_contiguous()
+    assert triton.cdiv(A.shape[-1], block_k) == As.shape[-1]
+    M = A.numel() // A.shape[-1]
+
+    assert B.ndim == 2 and B.is_contiguous() and Bs.ndim == 2
+    N, K = B.shape
+    assert triton.cdiv(N, block_n) == Bs.shape[0]
+    assert triton.cdiv(K, block_k) == Bs.shape[1]
+
+    C_shape = A.shape[:-1] + (N, )
+    C = A.new_empty(C_shape, dtype=output_dtype)
+
+    # TODO:
+    # BLOCK_SIZE_M, BLOCK_SIZE_K, BLOCK_SIZE_N can be optimized.
+    # BLOCK_SIZE_K must be divisible by block_k
+    # BLOCK_SIZE_N and BLOCK_SIZE_M has no requirements
+    BLOCK_SIZE_M = 128
+    if M < BLOCK_SIZE_M:
+        BLOCK_SIZE_M = triton.next_power_of_2(M)
+        BLOCK_SIZE_M = max(BLOCK_SIZE_M, 16)
+    BLOCK_SIZE_K = block_k
+    assert block_k % BLOCK_SIZE_K == 0
+    BLOCK_SIZE_N = block_n
+
+    def grid(META):
+        return (triton.cdiv(M, META["BLOCK_SIZE_M"]) *
+                triton.cdiv(N, META["BLOCK_SIZE_N"]), )
+
+    _w8a8_block_fp8_matmul[grid](
+        A,
+        B,
+        C,
+        As,
+        Bs,
+        M,
+        N,
+        K,
+        block_n,
+        block_k,
+        A.stride(-2),
+        A.stride(-1),
+        B.stride(1),
+        B.stride(0),
+        C.stride(-2),
+        C.stride(-1),
+        As.stride(-2),
+        As.stride(-1),
+        Bs.stride(1),
+        Bs.stride(0),
+        BLOCK_SIZE_M=BLOCK_SIZE_M,
+        BLOCK_SIZE_N=BLOCK_SIZE_N,
+        BLOCK_SIZE_K=BLOCK_SIZE_K,
+        GROUP_SIZE_M=8,
+    )
+
+    return C
diff --git a/vllm/model_executor/parameter.py b/vllm/model_executor/parameter.py
index 7a6d7c90f34d5..02d22a5ca62c0 100644
--- a/vllm/model_executor/parameter.py
+++ b/vllm/model_executor/parameter.py
@@ -328,6 +328,15 @@ def adjust_shard_indexes_for_packing(self, shard_size, shard_offset):
             marlin_tile_size=self.marlin_tile_size)
 
 
+class BlockQuantScaleParameter(_ColumnvLLMParameter, RowvLLMParameter):
+    """
+    Parameter class for weight scales loaded for weights with
+    block-wise quantization. Uses both column and row parallelism.
+    """
+
+    pass
+
+
 def permute_param_layout_(param: BasevLLMParameter, input_dim: int,
                           output_dim: int, **kwargs) -> BasevLLMParameter:
     """