diff --git a/examples/large_models/diffusion_fast/Download_model.py b/examples/large_models/diffusion_fast/Download_model.py
new file mode 100644
index 0000000000..bbff5b9580
--- /dev/null
+++ b/examples/large_models/diffusion_fast/Download_model.py
@@ -0,0 +1,9 @@
+import torch
+from diffusers import DiffusionPipeline
+
+pipeline = DiffusionPipeline.from_pretrained(
+    "stabilityai/stable-diffusion-xl-base-1.0",
+    torch_dtype=torch.float32,
+    use_safetensors=True,
+)
+pipeline.save_pretrained("./Base_Diffusion_model")
diff --git a/examples/large_models/diffusion_fast/README.md b/examples/large_models/diffusion_fast/README.md
new file mode 100644
index 0000000000..aec7a52fb6
--- /dev/null
+++ b/examples/large_models/diffusion_fast/README.md
@@ -0,0 +1,64 @@
+
+## Diffusion-Fast
+
+[Diffusion fast](https://github.com/huggingface/diffusion-fast) is a simple and efficient pytorch-native way of optimizing Stable Diffusion XL (SDXL).
+
+It features:
+* Running with the bfloat16 precision
+* scaled_dot_product_attention (SDPA)
+* torch.compile
+* Combining q,k,v projections for attention computation
+* Dynamic int8 quantization
+
+Details about the optimizations and various results can be found in this  [blog](https://pytorch.org/blog/accelerating-generative-ai-3/).
+The example has been tested on A10, A100 as well as H100.
+
+
+#### Pre-requisites
+
+`cd` to the example folder `examples/image_generation/diffusion_fast`
+
+Install dependencies and upgrade torch to nightly build (currently required)
+```
+git clone https://github.com/huggingface/diffusion-fast.git
+pip install --pre torch --index-url https://download.pytorch.org/whl/nightly/cu121 --ignore-installed -y
+pip install accelerate transformers peft
+pip install --no-cache-dir git+https://github.com/pytorch-labs/ao@54bcd5a10d0abbe7b0c045052029257099f83fd9
+pip install pandas matplotlib seaborn
+```
+### Step 1: Download the Stable diffusion model
+
+```bash
+python Download_model.py
+```
+This saves the model in `Base_Diffusion_model`
+
+### Step 1: Generate model archive
+At this stage we're creating the model archive which includes the configuration of our model in [model_config.yaml](./model_config.yaml).
+It's also the point where we need to decide if we want to deploy our model on a single or multiple GPUs.
+For the single GPU case we can use the default configuration that can be found in [model_config.yaml](./model_config.yaml).
+
+```
+torch-model-archiver --model-name diffusion_fast --version 1.0 --handler diffusion_fast_handler.py --config-file model_config.yaml --extra-files "diffusion-fast/utils/pipeline_utils.py" --archive-format no-archive
+mv Base_Diffusion_model diffusion_fast/
+```
+
+### Step 2: Add the model archive to model store
+
+```
+mkdir model_store
+mv diffusion_fast model_store
+```
+
+### Step 3: Start torchserve
+
+```
+torchserve --start --ts-config config.properties --model-store model_store --models diffusion_fast
+```
+
+### Step 4: Run inference
+
+```
+python query.py --url "http://localhost:8080/predictions/diffusion_fast" --prompt "a photo of an astronaut riding a horse on mars"
+```
+The image generated will be written to a file `output-<>.jpg`
diff --git a/examples/large_models/diffusion_fast/config.properties b/examples/large_models/diffusion_fast/config.properties
new file mode 100644
index 0000000000..114b2f5222
--- /dev/null
+++ b/examples/large_models/diffusion_fast/config.properties
@@ -0,0 +1,4 @@
+inference_address=http://127.0.0.1:8080
+management_address=http://127.0.0.1:8081
+metrics_address=http://127.0.0.1:8082
+max_response_size=655350000
diff --git a/examples/large_models/diffusion_fast/diffusion_fast_handler.py b/examples/large_models/diffusion_fast/diffusion_fast_handler.py
new file mode 100644
index 0000000000..20ebdeaea4
--- /dev/null
+++ b/examples/large_models/diffusion_fast/diffusion_fast_handler.py
@@ -0,0 +1,133 @@
+import logging
+import os
+from pathlib import Path
+
+import numpy as np
+import torch
+from pipeline_utils import load_pipeline
+
+from ts.handler_utils.timer import timed
+from ts.torch_handler.base_handler import BaseHandler
+
+logger = logging.getLogger(__name__)
+
+
+class DiffusionFastHandler(BaseHandler):
+    """
+    Diffusion-Fast handler class for text to image generation.
+    """
+
+    def __init__(self):
+        super().__init__()
+        self.initialized = False
+
+    def initialize(self, ctx):
+        """In this initialize function, the Diffusion Fast model is loaded and
+        initialized here.
+        Args:
+            ctx (context): It is a JSON Object containing information
+            pertaining to the model artifacts parameters.
+        """
+        self.context = ctx
+        self.manifest = ctx.manifest
+        properties = ctx.system_properties
+        model_dir = properties.get("model_dir")
+
+        if torch.cuda.is_available() and properties.get("gpu_id") is not None:
+            self.map_location = "cuda"
+            self.device = torch.device(
+                self.map_location + ":" + str(properties.get("gpu_id"))
+            )
+        else:
+            self.map_location = "cpu"
+            self.device = torch.device(self.map_location)
+
+        self.num_inference_steps = ctx.model_yaml_config["handler"][
+            "num_inference_steps"
+        ]
+
+        # Parameters for the model
+        compile_unet = ctx.model_yaml_config["handler"]["compile_unet"]
+        compile_vae = ctx.model_yaml_config["handler"]["compile_vae"]
+        compile_mode = ctx.model_yaml_config["handler"]["compile_mode"]
+        enable_fused_projections = ctx.model_yaml_config["handler"][
+            "enable_fused_projections"
+        ]
+        do_quant = ctx.model_yaml_config["handler"]["do_quant"]
+        change_comp_config = ctx.model_yaml_config["handler"]["change_comp_config"]
+        no_sdpa = ctx.model_yaml_config["handler"]["no_sdpa"]
+        no_bf16 = ctx.model_yaml_config["handler"]["no_bf16"]
+        upcast_vae = ctx.model_yaml_config["handler"]["upcast_vae"]
+
+        # Load model weights
+        model_path = Path(ctx.model_yaml_config["handler"]["model_path"])
+        ckpt = os.path.join(model_dir, model_path)
+
+        self.pipeline = load_pipeline(
+            ckpt=ckpt,
+            compile_unet=compile_unet,
+            compile_vae=compile_vae,
+            compile_mode=compile_mode,
+            enable_fused_projections=enable_fused_projections,
+            do_quant=do_quant,
+            change_comp_config=change_comp_config,
+            no_bf16=no_bf16,
+            no_sdpa=no_sdpa,
+            upcast_vae=upcast_vae,
+        )
+
+        logger.info("Diffusion Fast model loaded successfully")
+
+        self.initialized = True
+
+    @timed
+    def preprocess(self, requests):
+        """Basic text preprocessing, of the user's prompt.
+        Args:
+            requests (str): The Input data in the form of text is passed on to the preprocess
+            function.
+        Returns:
+            list : The preprocess function returns a list of prompts.
+        """
+
+        assert (
+            len(requests) == 1
+        ), "Diffusion Fast is currently only supported with batch_size=1"
+
+        inputs = []
+        for _, data in enumerate(requests):
+            input_text = data.get("data")
+            if input_text is None:
+                input_text = data.get("body")
+            if isinstance(input_text, (bytes, bytearray)):
+                input_text = input_text.decode("utf-8")
+            inputs.append(input_text)
+        return inputs
+
+    @timed
+    def inference(self, inputs):
+        """Generates the image relevant to the received text.
+        Args:
+            input_batch (list): List of Text from the pre-process function is passed here
+        Returns:
+            list : It returns a list of the generate images for the input text
+        """
+        # Handling inference for sequence_classification.
+        inferences = self.pipeline(
+            inputs, num_inference_steps=self.num_inference_steps, height=768, width=768
+        ).images
+
+        return inferences
+
+    @timed
+    def postprocess(self, inference_output):
+        """Post Process Function converts the generated image into Torchserve readable format.
+        Args:
+            inference_output (list): It contains the generated image of the input text.
+        Returns:
+            (list): Returns a list of the images.
+        """
+        images = []
+        for image in inference_output:
+            images.append(np.array(image).tolist())
+        return images
diff --git a/examples/large_models/diffusion_fast/model_config.yaml b/examples/large_models/diffusion_fast/model_config.yaml
new file mode 100644
index 0000000000..fb831a29dc
--- /dev/null
+++ b/examples/large_models/diffusion_fast/model_config.yaml
@@ -0,0 +1,18 @@
+minWorkers: 1
+maxWorkers: 1
+maxBatchDelay: 200
+responseTimeout: 3600
+deviceType: "gpu"
+handler:
+    model_path: "Base_Diffusion_model"
+    num_inference_steps: 30
+    compile_unet: true
+    compile_mode: "max-autotune"
+    compile_vae: true
+    enable_fused_projections: true
+    do_quant: "int8dynamic"
+    change_comp_config: true
+    no_sdpa: false
+    no_bf16: false
+    upcast_vae: false
+    profile: true
diff --git a/examples/large_models/diffusion_fast/query.py b/examples/large_models/diffusion_fast/query.py
new file mode 100644
index 0000000000..484f89f220
--- /dev/null
+++ b/examples/large_models/diffusion_fast/query.py
@@ -0,0 +1,27 @@
+import argparse
+import json
+from datetime import datetime
+
+import numpy as np
+import requests
+from PIL import Image
+
+parser = argparse.ArgumentParser()
+parser.add_argument(
+    "--url", type=str, required=True, help="Torchserve inference endpoint"
+)
+parser.add_argument(
+    "--prompt", type=str, required=True, help="Prompt for image generation"
+)
+parser.add_argument(
+    "--filename",
+    type=str,
+    default="output-{}.jpg".format(str(datetime.now().strftime("%Y%m%d%H%M%S"))),
+    help="Filename of output image",
+)
+args = parser.parse_args()
+
+response = requests.post(args.url, data=args.prompt)
+# Contruct image from response
+image = Image.fromarray(np.array(json.loads(response.text), dtype="uint8"))
+image.save(args.filename)
diff --git a/ts_scripts/spellcheck_conf/wordlist.txt b/ts_scripts/spellcheck_conf/wordlist.txt
index f25d204fc3..ccc2188e9f 100644
--- a/ts_scripts/spellcheck_conf/wordlist.txt
+++ b/ts_scripts/spellcheck_conf/wordlist.txt
@@ -1164,6 +1164,9 @@ compilable
 nightlies
 torchexportaotcompile
 autotune
+SDXL
+SDPA
+bfloat
 bb
 babyllama
 libbabyllama