diff --git a/optimum/neuron/modeling_diffusion.py b/optimum/neuron/modeling_diffusion.py
index 76c07ed02..d6d0ede61 100644
--- a/optimum/neuron/modeling_diffusion.py
+++ b/optimum/neuron/modeling_diffusion.py
@@ -21,6 +21,7 @@
 import shutil
 from abc import abstractmethod
 from collections import OrderedDict
+from contextlib import contextmanager
 from dataclasses import asdict
 from pathlib import Path
 from tempfile import TemporaryDirectory
@@ -1321,6 +1322,11 @@ def forward(
             outputs = (outputs,)
         return outputs
 
+    # Dummy context manager
+    @contextmanager
+    def cache_context(self, name: str):
+        yield
+
 
 class NeuronModelVaeEncoder(_NeuronDiffusionModelPart):
     def __init__(
diff --git a/pyproject.toml b/pyproject.toml
index 0624bfb38..dbb926091 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -61,10 +61,10 @@ tests = [
     "sentencepiece",
     "datasets",
     "sacremoses",
-    "diffusers>=0.31.0, <=0.34.0",
+    "diffusers==0.35.*",
     "safetensors",
     "sentence-transformers >= 2.2.0",
-    "peft==0.16.0",
+    "peft==0.17.0",
     "trl==0.11.4",
     "compel",
     "rjieba",
@@ -75,7 +75,7 @@ tests = [
     "mediapipe",
     "timm >= 1.0.0",
     "hf_transfer",
-    "torchcodec",
+    "torchcodec < 0.6.0",
 ]
 quality = [
     "ruff",
@@ -83,7 +83,7 @@ quality = [
 ]
 training = [
     "trl == 0.11.4",
-    "peft == 0.16.0",
+    "peft == 0.17.0",
     "evaluate == 0.4.3",
     "neuronx_distributed==0.13.14393",
 ]
@@ -106,8 +106,8 @@ neuronx = [
     "libneuronxla==2.2.4410.0",
 ]
 diffusers = [
-    "diffusers>=0.31.0, <=0.34.0",
-    "peft==0.16.0",
+    "diffusers==0.35.*",
+    "peft==0.17.0",
 ]
 sentence-transformers = [
     "sentence-transformers >= 2.2.0",