diff --git a/examples/llm_pte_finetuning/llama3_config.yaml b/examples/llm_pte_finetuning/llama3_config.yaml
new file mode 100644
index 00000000000..e4428ff6e01
--- /dev/null
+++ b/examples/llm_pte_finetuning/llama3_config.yaml
@@ -0,0 +1,94 @@
+output_dir: /tmp/llama-3.2-1B_ft-output # /tmp may be deleted by your system. Change it to your preference.
+
+# Model Arguments
+model:
+  _component_: torchtune.models.llama3_2.lora_llama3_2_1b
+  lora_attn_modules: ['q_proj', 'v_proj', 'output_proj']
+  apply_lora_to_mlp: True
+  lora_rank: 64  # higher increases accuracy and memory
+  lora_alpha: 128  # usually alpha=2*rank
+  lora_dropout: 0.0
+
+# Tokenizer
+tokenizer:
+  _component_: torchtune.models.llama3.llama3_tokenizer
+  path:  /tmp/Llama-3.2-1B-Instruct/original/tokenizer.model
+  special_tokens_path: null
+  max_seq_len: 512
+  prompt_template: null
+
+# Dataset
+dataset:
+  _component_: torchtune.datasets.alpaca_dataset
+  packed: False  # True increases speed
+seed: null
+shuffle: True
+
+checkpointer:
+  _component_: torchtune.training.FullModelHFCheckpointer
+  checkpoint_dir: /tmp/Llama-3.2-1B-Instruct/
+  checkpoint_files: [
+    model.safetensors
+  ]
+  recipe_checkpoint: null
+  output_dir: ${output_dir}
+  model_type: LLAMA3_2
+resume_from_checkpoint: False
+
+# Fine-tuning arguments
+batch_size: 1
+epochs: 1
+optimizer:
+  _component_: torch.optim.AdamW
+  fused: True
+  weight_decay: 0.01
+  lr: 3e-4
+
+loss:
+  _component_: torchtune.modules.loss.CEWithChunkedOutputLoss
+max_steps_per_epoch: null
+gradient_accumulation_steps: 1  # Use to increase effective batch size
+optimizer_in_bwd: True  # True saves memory. Requires gradient_accumulation_steps=1
+clip_grad_norm: null
+compile: False  # torch.compile the model + loss, True increases speed + decreases memory
+
+# Training environment
+device: cpu
+dtype: fp32
+
+# Memory management
+enable_activation_checkpointing: False  # True reduces memory
+enable_activation_offloading: False  # True reduces memory
+
+# Logging
+metric_logger:
+  _component_: torchtune.training.metric_logging.DiskLogger
+  log_dir: ${output_dir}/logs
+log_every_n_steps: 1
+log_peak_memory_stats: True
+
+
+# Profiler (disabled)
+profiler:
+  _component_: torchtune.training.setup_torch_profiler
+  enabled: False
+
+  #Output directory of trace artifacts
+  output_dir: ${output_dir}/profiling_outputs
+
+  #`torch.profiler.ProfilerActivity` types to trace
+  cpu: True
+  cuda: True
+
+  #trace options passed to `torch.profiler.profile`
+  profile_memory: False
+  with_stack: False
+  record_shapes: True
+  with_flops: False
+
+  # `torch.profiler.schedule` options:
+  # wait_steps -> wait, warmup_steps -> warmup, active_steps -> active, num_cycles -> repeat
+  wait_steps: 5
+  warmup_steps: 3
+  active_steps: 2
+  num_cycles: 1
diff --git a/examples/llm_pte_finetuning/model_exporter.py b/examples/llm_pte_finetuning/model_exporter.py
index e7f074c8769..d510dbe199c 100644
--- a/examples/llm_pte_finetuning/model_exporter.py
+++ b/examples/llm_pte_finetuning/model_exporter.py
@@ -48,7 +48,7 @@ def main() -> None:
     loss_fn = config.instantiate(cfg.loss)
 
     ds = config.instantiate(cfg.dataset, tokenizer)
-    train_set, val_set = torch.utils.data.random_split(ds, [0.8, 0.2])
+    train_set, _ = torch.utils.data.random_split(ds, [0.8, 0.2])
     train_dataloader = get_dataloader(cfg, train_set, tokenizer, loss_fn)
 
     max_seq_len = cfg.tokenizer.max_seq_len
diff --git a/examples/llm_pte_finetuning/training_lib.py b/examples/llm_pte_finetuning/training_lib.py
index f8cae70d39c..edd5e04d291 100644
--- a/examples/llm_pte_finetuning/training_lib.py
+++ b/examples/llm_pte_finetuning/training_lib.py
@@ -36,13 +36,26 @@ def __init__(
         super().__init__()
         self.model = model
         self.loss = loss
+        if loss.__class__.__name__ == "CEWithChunkedOutputLoss":
+            # set num_output_chunks for model
+            # pyre-ignore
+            model.set_num_output_chunks(self.loss.num_output_chunks)
+
+        # (batch_size, 1) tensor of ignore_index
+        # pyre-ignore
+        self.ignore_labels_cache = torch.full(
+            (1, 1), self.loss.ignore_index, device="cpu"  # pyre-ignore
+        )
 
     def forward(self, input: torch.Tensor, labels: torch.Tensor) -> torch.Tensor:
         # Output is of the shape (seq_len, vocab_size).
         logits = self.model(input)
-        logits = logits[..., :-1, :].contiguous()
-        labels = labels[..., 1:].contiguous()
-        logits = logits.transpose(1, 2)
+        labels = torch.hstack(
+            (labels[..., 1:], self.ignore_labels_cache[: labels.shape[0]])
+        )
+        if not isinstance(logits, list):
+            labels = labels.reshape(-1)
+            logits = logits.reshape(-1, logits.size(-1))
         return self.loss(logits, labels)