diff --git a/examples/dreambooth/README_flux.md b/examples/dreambooth/README_flux.md
index 69dfd241395b..a724ca53b927 100644
--- a/examples/dreambooth/README_flux.md
+++ b/examples/dreambooth/README_flux.md
@@ -170,6 +170,21 @@ accelerate launch train_dreambooth_lora_flux.py \
   --push_to_hub
 ```
 
+### Target Modules
+When LoRA was first adapted from language models to diffusion models, it was applied to the cross-attention layers in the Unet that relate the image representations with the prompts that describe them. 
+More recently, SOTA text-to-image diffusion models replaced the Unet with a diffusion Transformer(DiT). With this change, we may also want to explore 
+applying LoRA training onto different types of layers and blocks. To allow more flexibility and control over the targeted modules we added `--lora_layers`- in which you can specify in a comma seperated string
+the exact modules for LoRA training. Here are some examples of target modules you can provide: 
+- for attention only layers: `--lora_layers="attn.to_k,attn.to_q,attn.to_v,attn.to_out.0"`
+- to train the same modules as in the fal trainer: `--lora_layers="attn.to_k,attn.to_q,attn.to_v,attn.to_out.0,attn.add_k_proj,attn.add_q_proj,attn.add_v_proj,attn.to_add_out,ff.net.0.proj,ff.net.2,ff_context.net.0.proj,ff_context.net.2"`
+- to train the same modules as in ostris ai-toolkit / replicate trainer: `--lora_blocks="attn.to_k,attn.to_q,attn.to_v,attn.to_out.0,attn.add_k_proj,attn.add_q_proj,attn.add_v_proj,attn.to_add_out,ff.net.0.proj,ff.net.2,ff_context.net.0.proj,ff_context.net.2,norm1_context.linear, norm1.linear,norm.linear,proj_mlp,proj_out"`
+> [!NOTE]
+> `--lora_layers` can also be used to specify which **blocks** to apply LoRA training to. To do so, simply add a block prefix to each layer in the comma seperated string:
+> **single DiT blocks**: to target the ith single transformer block, add the prefix `single_transformer_blocks.i`, e.g. - `single_transformer_blocks.i.attn.to_k`
+> **MMDiT blocks**: to target the ith MMDiT block, add the prefix `transformer_blocks.i`, e.g. - `transformer_blocks.i.attn.to_k` 
+> [!NOTE]
+> keep in mind that while training more layers can improve quality and expressiveness, it also increases the size of the output LoRA weights.
+
 ### Text Encoder Training
 
 Alongside the transformer, fine-tuning of the CLIP text encoder is also supported.
diff --git a/examples/dreambooth/test_dreambooth_lora_flux.py b/examples/dreambooth/test_dreambooth_lora_flux.py
index d197c8187b87..a76825e29448 100644
--- a/examples/dreambooth/test_dreambooth_lora_flux.py
+++ b/examples/dreambooth/test_dreambooth_lora_flux.py
@@ -37,6 +37,7 @@ class DreamBoothLoRAFlux(ExamplesTestsAccelerate):
     instance_prompt = "photo"
     pretrained_model_name_or_path = "hf-internal-testing/tiny-flux-pipe"
     script_path = "examples/dreambooth/train_dreambooth_lora_flux.py"
+    transformer_layer_type = "single_transformer_blocks.0.attn.to_k"
 
     def test_dreambooth_lora_flux(self):
         with tempfile.TemporaryDirectory() as tmpdir:
@@ -136,6 +137,43 @@ def test_dreambooth_lora_latent_caching(self):
             starts_with_transformer = all(key.startswith("transformer") for key in lora_state_dict.keys())
             self.assertTrue(starts_with_transformer)
 
+    def test_dreambooth_lora_layers(self):
+        with tempfile.TemporaryDirectory() as tmpdir:
+            test_args = f"""
+                {self.script_path}
+                --pretrained_model_name_or_path {self.pretrained_model_name_or_path}
+                --instance_data_dir {self.instance_data_dir}
+                --instance_prompt {self.instance_prompt}
+                --resolution 64
+                --train_batch_size 1
+                --gradient_accumulation_steps 1
+                --max_train_steps 2
+                --cache_latents
+                --learning_rate 5.0e-04
+                --scale_lr
+                --lora_layers {self.transformer_layer_type}
+                --lr_scheduler constant
+                --lr_warmup_steps 0
+                --output_dir {tmpdir}
+                """.split()
+
+            run_command(self._launch_args + test_args)
+            # save_pretrained smoke test
+            self.assertTrue(os.path.isfile(os.path.join(tmpdir, "pytorch_lora_weights.safetensors")))
+
+            # make sure the state_dict has the correct naming in the parameters.
+            lora_state_dict = safetensors.torch.load_file(os.path.join(tmpdir, "pytorch_lora_weights.safetensors"))
+            is_lora = all("lora" in k for k in lora_state_dict.keys())
+            self.assertTrue(is_lora)
+
+            # when not training the text encoder, all the parameters in the state dict should start
+            # with `"transformer"` in their names. In this test, we only params of
+            # transformer.single_transformer_blocks.0.attn.to_k should be in the state dict
+            starts_with_transformer = all(
+                key.startswith("transformer.single_transformer_blocks.0.attn.to_k") for key in lora_state_dict.keys()
+            )
+            self.assertTrue(starts_with_transformer)
+
     def test_dreambooth_lora_flux_checkpointing_checkpoints_total_limit(self):
         with tempfile.TemporaryDirectory() as tmpdir:
             test_args = f"""
diff --git a/examples/dreambooth/train_dreambooth_flux.py b/examples/dreambooth/train_dreambooth_flux.py
index 8ab6f4bb6c30..f720afef6542 100644
--- a/examples/dreambooth/train_dreambooth_flux.py
+++ b/examples/dreambooth/train_dreambooth_flux.py
@@ -161,7 +161,7 @@ def log_validation(
         f"Running validation... \n Generating {args.num_validation_images} images with prompt:"
         f" {args.validation_prompt}."
     )
-    pipeline = pipeline.to(accelerator.device, dtype=torch_dtype)
+    pipeline = pipeline.to(accelerator.device)
     pipeline.set_progress_bar_config(disable=True)
 
     # run inference
@@ -1579,7 +1579,7 @@ def get_sigmas(timesteps, n_dim=4, dtype=torch.float32):
                 )
 
                 # handle guidance
-                if transformer.config.guidance_embeds:
+                if accelerator.unwrap_model(transformer).config.guidance_embeds:
                     guidance = torch.tensor([args.guidance_scale], device=accelerator.device)
                     guidance = guidance.expand(model_input.shape[0])
                 else:
@@ -1693,6 +1693,8 @@ def get_sigmas(timesteps, n_dim=4, dtype=torch.float32):
                 # create pipeline
                 if not args.train_text_encoder:
                     text_encoder_one, text_encoder_two = load_text_encoders(text_encoder_cls_one, text_encoder_cls_two)
+                    text_encoder_one.to(weight_dtype)
+                    text_encoder_two.to(weight_dtype)
                 else:  # even when training the text encoder we're only training text encoder one
                     text_encoder_two = text_encoder_cls_two.from_pretrained(
                         args.pretrained_model_name_or_path,
diff --git a/examples/dreambooth/train_dreambooth_lora_flux.py b/examples/dreambooth/train_dreambooth_lora_flux.py
index 5df071b19121..b6e657234850 100644
--- a/examples/dreambooth/train_dreambooth_lora_flux.py
+++ b/examples/dreambooth/train_dreambooth_lora_flux.py
@@ -554,6 +554,15 @@ def parse_args(input_args=None):
         "--adam_weight_decay_text_encoder", type=float, default=1e-03, help="Weight decay to use for text_encoder"
     )
 
+    parser.add_argument(
+        "--lora_layers",
+        type=str,
+        default=None,
+        help=(
+            'The transformer modules to apply LoRA training on. Please specify the layers in a comma seperated. E.g. - "to_k,to_q,to_v,to_out.0" will result in lora training of attention layers only'
+        ),
+    )
+
     parser.add_argument(
         "--adam_epsilon",
         type=float,
@@ -1186,12 +1195,30 @@ def main(args):
         if args.train_text_encoder:
             text_encoder_one.gradient_checkpointing_enable()
 
-    # now we will add new LoRA weights to the attention layers
+    if args.lora_layers is not None:
+        target_modules = [layer.strip() for layer in args.lora_layers.split(",")]
+    else:
+        target_modules = [
+            "attn.to_k",
+            "attn.to_q",
+            "attn.to_v",
+            "attn.to_out.0",
+            "attn.add_k_proj",
+            "attn.add_q_proj",
+            "attn.add_v_proj",
+            "attn.to_add_out",
+            "ff.net.0.proj",
+            "ff.net.2",
+            "ff_context.net.0.proj",
+            "ff_context.net.2",
+        ]
+
+    # now we will add new LoRA weights the transformer layers
     transformer_lora_config = LoraConfig(
         r=args.rank,
         lora_alpha=args.rank,
         init_lora_weights="gaussian",
-        target_modules=["to_k", "to_q", "to_v", "to_out.0"],
+        target_modules=target_modules,
     )
     transformer.add_adapter(transformer_lora_config)
     if args.train_text_encoder:
@@ -1367,7 +1394,7 @@ def load_model_hook(models, input_dir):
                 f" {args.text_encoder_lr} and learning_rate: {args.learning_rate}. "
                 f"When using prodigy only learning_rate is used as the initial learning rate."
             )
-            # changes the learning rate of text_encoder_parameters_one and text_encoder_parameters_two to be
+            # changes the learning rate of text_encoder_parameters_one to be
             # --learning_rate
             params_to_optimize[1]["lr"] = args.learning_rate