diff --git a/auto_round_extension/vllm_ext/auto_round_ext.py b/auto_round_extension/vllm_ext/auto_round_ext.py
index d665fd568..8ef85069a 100644
--- a/auto_round_extension/vllm_ext/auto_round_ext.py
+++ b/auto_round_extension/vllm_ext/auto_round_ext.py
@@ -33,6 +33,12 @@ class AutoRoundExtensionConfig(_BaseAutoRoundConfig):
 
     def get_quant_method(self, layer: torch.nn.Module, prefix: str):
         # FIXME: (yi) make it compatible with `AutoRoundConfig`
+        from vllm.attention.layer import Attention
+
+        if isinstance(layer, Attention):
+            from auto_round_extension.vllm_ext.kv_cache import AutoRoundKVCacheMethod
+
+            return AutoRoundKVCacheMethod(self)
         if isinstance(layer, FusedMoE):
             quant_method = AutoRoundMoEMethod.get_moe_method(self, layer, prefix)
             return quant_method
diff --git a/auto_round_extension/vllm_ext/kv_cache.py b/auto_round_extension/vllm_ext/kv_cache.py
new file mode 100644
index 000000000..ec2b7e179
--- /dev/null
+++ b/auto_round_extension/vllm_ext/kv_cache.py
@@ -0,0 +1,38 @@
+# Copyright (c) 2025 Intel Corporation
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#    http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+
+
+from typing import TYPE_CHECKING, Any, Literal, Optional, cast
+
+import torch
+from vllm.logger import init_logger
+from vllm.model_executor.layers.quantization.kv_cache import BaseKVCacheMethod
+
+logger = init_logger(__name__)
+
+
+class AutoRoundKVCacheMethod(BaseKVCacheMethod):
+    """
+    Supports loading kv-cache scaling factors from compressed-tensors
+    checkpoints.
+    """
+
+    def __init__(self, quant_config):
+        self.validate_kv_cache_scheme(quant_config)
+        super().__init__(quant_config)
+
+    @staticmethod
+    def validate_kv_cache_scheme(quant_config):
+        # FIXME: parse from quant_config
+        return True
diff --git a/auto_round_extension/vllm_ext/linear_impl_mxfp4.py b/auto_round_extension/vllm_ext/linear_impl_mxfp4.py
index 04d5e20f8..e544fdbbf 100644
--- a/auto_round_extension/vllm_ext/linear_impl_mxfp4.py
+++ b/auto_round_extension/vllm_ext/linear_impl_mxfp4.py
@@ -86,8 +86,7 @@ def create_weights(
 
     def process_weights_after_loading(self, layer) -> None:
         # FIXME: may dequant to bf16
-        if envs.VLLM_MXFP4_PRE_UNPACK_WEIGHTS:
-
+        if envs.VLLM_MXFP4_PRE_UNPACK_TO_FP8:
             weight_fp8, scale_bf16 = dequant_mxfp4_to_fp8(
                 data_lp=layer.weight_packed,
                 scale_e8m0=layer.weight_scale,
@@ -110,20 +109,16 @@ def process_weights_after_loading(self, layer) -> None:
                     requires_grad=False,
                 ),
             )
+        else:
+            raise NotImplementedError("Only VLLM_MXFP4_PRE_UNPACK_TO_FP8 is supported now.")
 
     def apply_weights(
         self, layer: torch.nn.Module, x: torch.Tensor, bias: Optional[torch.Tensor] = None
     ) -> torch.Tensor:
-        if not envs.VLLM_MXFP4_PRE_UNPACK_WEIGHTS:
-            out = run_mxfp4_emulations(x=x, weight=layer.weight_packed, weight_scale=layer.weight_scale)
-            if bias is not None:
-                out = out + bias
-            return out
-        else:
-            out = mxfp4_gemm_with_unpacked_weight(
-                x=x,
-                weight_fp8=layer.weight_unpacked_fp8,
-                weight_scale_bf16=layer.weight_scale_bf16,
-                bias=bias,
-            )
-            return out
+        out = mxfp4_gemm_with_unpacked_weight(
+            x=x,
+            weight_fp8=layer.weight_unpacked_fp8,
+            weight_scale_bf16=layer.weight_scale_bf16,
+            bias=bias,
+        )
+        return out
diff --git a/auto_round_extension/vllm_ext/tests/test_fp8kv.py b/auto_round_extension/vllm_ext/tests/test_fp8kv.py
new file mode 100644
index 000000000..709308f9a
--- /dev/null
+++ b/auto_round_extension/vllm_ext/tests/test_fp8kv.py
@@ -0,0 +1,61 @@
+# Copyright (c) 2025 Intel Corporation
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#    http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+import pytest
+import torch
+from vllm.platforms import current_platform
+
+
+def cuda_capability_at_least(major, minor):
+    device_capability = torch.cuda.get_device_capability()
+    return device_capability[0] >= major or (device_capability[0] == major and device_capability[1] >= minor)
+
+
+MODELS = ["/home/yiliu7/workspace/auto-round/examples/Qwen2.5-0.5B-Instruct-ar-MXFP4-fp8"]
+
+
+@pytest.fixture(autouse=True)
+def set_vllm_ar_env(monkeypatch):
+    monkeypatch.setenv("VLLM_AR_MXFP4_MODULAR_MOE", "1")
+    monkeypatch.setenv("VLLM_MXFP4_PRE_UNPACK_TO_FP8", "1")
+    monkeypatch.setenv("VLLM_MXFP4_PRE_UNPACK_WEIGHTS", "0")
+    monkeypatch.setenv("VLLM_ENABLE_STATIC_MOE", "0")
+    monkeypatch.setenv("VLLM_USE_DEEP_GEMM", "0")
+    monkeypatch.setenv("VLLM_ENABLE_AR_EXT", "1")
+    monkeypatch.setenv("VLLM_ENABLE_V1_MULTIPROCESSING", "0")
+    monkeypatch.setenv("VLLM_FLASHINFER_DISABLE_Q_QUANTIZATION", "1")
+    monkeypatch.setenv("VLLM_ATTENTION_BACKEND", "FLASHINFER")
+
+
+@pytest.mark.skipif(
+    not current_platform.is_cuda(),
+    reason="only supports CUDA backend.",
+)
+@pytest.mark.skipif(
+    not cuda_capability_at_least(10, 0), reason="FP8 KV cache only supported on CUDA with compute capability >= 10.0"
+)
+@pytest.mark.parametrize("model", MODELS)
+def test_auto_fp8_kv(vllm_runner, model):
+    with vllm_runner(
+        model,
+        # enforce_eager=True,
+        kv_cache_dtype="fp8",
+        gpu_memory_utilization=0.1,
+    ) as llm:
+        output = llm.generate_greedy(["The capital of France is"], max_tokens=8)
+        assert (
+            llm.llm.llm_engine.engine_core.engine_core.model_executor.driver_worker.worker.model_runner.kv_cache_dtype
+            == torch.uint8
+        ), f"Expected kv_cache_dtype to be torch.uint8, but got {llm.llm.llm_engine.engine_core.engine_core.model_executor.driver_worker.worker.model_runner.kv_cache_dtype}"
+    assert output
+    print(f"output is: {output[0][1]}")