diff --git a/src/compressed_tensors/quantization/lifecycle/forward.py b/src/compressed_tensors/quantization/lifecycle/forward.py
index 58a16dfba..9d1970156 100644
--- a/src/compressed_tensors/quantization/lifecycle/forward.py
+++ b/src/compressed_tensors/quantization/lifecycle/forward.py
@@ -468,6 +468,7 @@ def _quantize(
     if global_scale is not None:
         scale = scale.to(global_scale.dtype) / global_scale
 
+    scale = scale.to(x.dtype) / torch.iinfo(torch.uint8).max
     scaled = x / scale
 
     if zero_point is not None:
@@ -501,6 +502,8 @@ def _dequantize(
     if global_scale is not None:
         scale = scale.to(global_scale.dtype) / global_scale
 
+    scale = scale.to(torch.float16) / torch.iinfo(torch.uint8).max
+
     dequant_value = x_q.to(scale.dtype)
 
     if zero_point is not None:
@@ -510,5 +513,4 @@ def _dequantize(
 
     if dtype is not None:
         dequant_value = dequant_value.to(dtype)
-
     return dequant_value
diff --git a/src/compressed_tensors/quantization/lifecycle/initialize.py b/src/compressed_tensors/quantization/lifecycle/initialize.py
index c9430e9ec..2fd0a6f8f 100644
--- a/src/compressed_tensors/quantization/lifecycle/initialize.py
+++ b/src/compressed_tensors/quantization/lifecycle/initialize.py
@@ -216,7 +216,11 @@ def _initialize_scale_zero_point(
     scale_dtype = scale_dtype if scale_dtype is not None else module.weight.dtype
 
     if is_fp4(quantization_args=quantization_args):
-        scale_dtype = zp_dtype = FP8_E4M3_DATA.dtype
+        if quantization_args.group_size == 16:
+            scale_dtype = zp_dtype = FP8_E4M3_DATA.dtype
+        else:
+            # group_size 32
+            scale_dtype = zp_dtype = torch.uint8
     else:
         # TODO: consider erroring out in the future as if the dtype if not one of these,
         # there is likely bug
diff --git a/src/compressed_tensors/quantization/utils/helpers.py b/src/compressed_tensors/quantization/utils/helpers.py
index 73d545193..bbdaadfb5 100644
--- a/src/compressed_tensors/quantization/utils/helpers.py
+++ b/src/compressed_tensors/quantization/utils/helpers.py
@@ -63,6 +63,18 @@ def is_fp4(quantization_args: QuantizationArgs):
         and quantization_args.type == QuantizationType.FLOAT
     )
 
+def get_power_of_two(x):
+    powers = torch.tensor([0, 1, 2, 4, 8, 16, 32, 64, 128], dtype=torch.uint8).to(x.device)
+    
+    # Expand and compute distances
+    diff = (x.unsqueeze(-1).to(torch.int16) - powers.to(torch.int16)).abs()
+    
+    # Find nearest index
+    nearest_idx = diff.argmin(dim=-1)
+    
+    return powers[nearest_idx]
+
+
 
 def calculate_qparams(
     min_vals: Tensor,
@@ -93,33 +105,50 @@ def calculate_qparams(
     bit_range = bit_max - bit_min
 
     if is_fp4(quantization_args=quantization_args):
-        zp_dtype = FP8_E4M3_DATA.dtype
+        if quantization_args.group_size == 16:
+            zp_dtype = FP8_E4M3_DATA.dtype
+        else:
+            # group_size 32
+            zp_dtype = torch.uint8
     else:
         zp_dtype = quantization_args.pytorch_dtype()
 
     if quantization_args.symmetric:
         max_val_pos = torch.max(torch.abs(min_vals), torch.abs(max_vals))
 
-        if is_fp4(quantization_args=quantization_args) and global_scale is not None:
-            # Conditionally scale the generated local scale by a global_scale
-            scales = global_scale * (max_val_pos / FP4_E2M1_DATA.max)
-            scales = torch.clamp(scales, max=FP8_E4M3_DATA.max, min=FP8_E4M3_DATA.min)
-            scales = scales.to(FP8_E4M3_DATA.dtype)
+        if is_fp4(quantization_args=quantization_args):
+            if global_scale is not None:
+                # Conditionally scale the generated local scale by a global_scale
+                scales = global_scale * (max_val_pos / FP4_E2M1_DATA.max)
+                scales = torch.clamp(
+                    scales, max=FP8_E4M3_DATA.max, min=FP8_E4M3_DATA.min
+                )
+                scales = scales.to(FP8_E4M3_DATA.dtype)
+            else:
+                
+                scales = torch.iinfo(torch.uint8).max * (max_val_pos) # / FP4_E2M1_DATA.max)
+                scales = torch.clamp(
+                    scales,
+                    max=torch.iinfo(torch.uint8).max,
+                    min=torch.iinfo(torch.uint8).min,
+                )
+                scales = scales.to(torch.uint8)
+                scales = get_power_of_two(scales)
 
         else:
             scales = max_val_pos / (float(bit_range) / 2)
 
         # TODO: in the case of MoEs, the global_scale may also be 0/need to be clamped
-        if scales.dtype == FP8_E4M3_DATA.dtype:
-            # torch.clamp not supported for FP8
-            # use the next largest fp8 value from 0
-            scales = torch.where(
-                scales == 0,
-                torch.tensor(0.125, dtype=FP8_E4M3_DATA.dtype, device=device),
-                scales,
-            )
-        else:
-            scales = torch.clamp(scales, min=torch.finfo(torch.float32).eps)
+        # if scales.dtype == FP8_E4M3_DATA.dtype:
+        # torch.clamp not supported for FP8
+        # use the next largest fp8 value from 0
+        #    scales = torch.where(
+        #        scales == 0,
+        #        torch.tensor(0.125, dtype=FP8_E4M3_DATA.dtype, device=device),
+        #        scales,
+        #    )
+        # else:
+        #    scales = torch.clamp(scales, min=torch.finfo(torch.float32).eps)
 
         zero_points = torch.zeros(scales.shape, device=device, dtype=min_vals.dtype)
     else: