diff --git a/deepspeed/runtime/compiler.py b/deepspeed/runtime/compiler.py
index 84f2067a0dce..6c605658e2a3 100644
--- a/deepspeed/runtime/compiler.py
+++ b/deepspeed/runtime/compiler.py
@@ -4,8 +4,10 @@
 # DeepSpeed Team
 
 import torch
+import contextlib
 import functools
 from deepspeed.utils.torch import required_torch_version
+from deepspeed.accelerator import get_accelerator
 
 try:
     from torch.compiler import is_compiling as torch_is_compiling
@@ -16,6 +18,16 @@
         # Torch does not have compiler support
         torch_is_compiling = lambda: False
 
+try:
+    if required_torch_version(min_version="2.6.0a"):
+        from torch._dynamo.compiled_autograd import _enable as compiled_autograd_enable
+    else:
+        from torch._dynamo.compiled_autograd import enable as compiled_autograd_enable
+
+    _COMPILED_AUTOGRAD_AVAILABLE = True
+except (ImportError, ModuleNotFoundError):
+    _COMPILED_AUTOGRAD_AVAILABLE = False
+
 
 def is_compile_supported():
     return required_torch_version(min_version=2.1)
@@ -73,6 +85,22 @@ def is_compiling():
     return torch_is_compiling()
 
 
+@contextlib.contextmanager
+def compiled_autograd(enabled: bool, kwargs: dict):
+    if not enabled or not _COMPILED_AUTOGRAD_AVAILABLE:
+        yield
+        return
+
+    if torch_is_compiling():
+        yield
+        return
+
+    compiler_fn = torch.compile(backend=get_accelerator().get_compile_backend(), **kwargs)
+
+    with compiled_autograd_enable(compiler_fn):
+        yield
+
+
 def dummy_decorator(func):
     return func
 
diff --git a/deepspeed/runtime/engine.py b/deepspeed/runtime/engine.py
index 760d92f91146..5ec61ca79dc7 100755
--- a/deepspeed/runtime/engine.py
+++ b/deepspeed/runtime/engine.py
@@ -106,7 +106,7 @@
 
 from .pipe.module import PipelineModule
 from .utils import get_ma_status
-from .compiler import is_compile_supported
+from .compiler import is_compile_supported, compiled_autograd
 from ..ops.adam import FusedAdam
 from ..moe.sharded_moe import TopKGate, MOELayer
 from ..moe.layer import MoE
@@ -446,6 +446,9 @@ def __init__(self,
             # See also: https://pytorch.org/docs/stable/generated/torch.nn.Module.html#torch.nn.Module.register_full_backward_hook
             self.optimizer.register_grad_acc_post_hook(self._backward_post_hook)
 
+        self._is_compiled_autograd_enabled = False
+        self._compile_kwargs = {}
+
     def _optimized_linear_offload_setup(self):
         self.optimized_linear_base_weight_sharding = False
         self.optimized_linear_lora_enabled = False
@@ -2476,17 +2479,18 @@ def backward(self, loss, retain_graph=False, scale_wrt_gas=True):
         elif self.torch_autocast_z0_gradscaler:
             loss = self.torch_autocast_z0_gradscaler.scale(loss)
 
-        if self.zero_optimization() or not self.amp_enabled():
-            loss.backward(**backward_kwargs)
-        elif self.amp_enabled():
-            # AMP requires delaying unscale when inside gradient accumulation boundaries
-            # https://nvidia.github.io/apex/advanced.html#gradient-accumulation-across-iterations
-            delay_unscale = not self.is_gradient_accumulation_boundary()
-            with amp.scale_loss(loss, self.optimizer, delay_unscale=delay_unscale) as scaled_loss:
-                scaled_loss.backward(**backward_kwargs)
+        with compiled_autograd(self._is_compiled_autograd_enabled, self._compile_kwargs):
+            if self.zero_optimization() or not self.amp_enabled():
+                loss.backward(**backward_kwargs)
+            elif self.amp_enabled():
+                # AMP requires delaying unscale when inside gradient accumulation boundaries
+                # https://nvidia.github.io/apex/advanced.html#gradient-accumulation-across-iterations
+                delay_unscale = not self.is_gradient_accumulation_boundary()
+                with amp.scale_loss(loss, self.optimizer, delay_unscale=delay_unscale) as scaled_loss:
+                    scaled_loss.backward(**backward_kwargs)
 
-        # backward_epilogue is not called in a hook when self._support_torch_style_backward is False
-        self._backward_epilogue()
+            # backward_epilogue is not called in a hook when self._support_torch_style_backward is False
+            self._backward_epilogue()
 
         self._running_engine_backward = False
 
@@ -4205,7 +4209,11 @@ def empty_partition_cache(self):
             gc.collect()
             get_accelerator().empty_cache()
 
-    def compile(self, backend=get_accelerator().get_compile_backend(), compile_kwargs={}, schedule=None) -> None:
+    def compile(self,
+                backend=get_accelerator().get_compile_backend(),
+                compile_kwargs={},
+                schedule=None,
+                compiled_autograd_enabled=False) -> None:
         """Compile the module using the specified backend and kwargs.
         If a compiler_fn is set, it will be used instead of torch.compile().
         """
@@ -4271,6 +4279,13 @@ def passes_name_to_fn(passes):
             raise
 
         self._is_compiled = True
+        self._compile_kwargs = compile_kwargs
+        if compiled_autograd_enabled:
+            if not self._deepcompile_active:
+                self._is_compiled_autograd_enabled = compiled_autograd_enabled
+            else:
+                logger.warning("Compiled autograd is not compatible with DeepCompile, disabling compiled autograd.")
+                self._is_compiled_autograd_enabled = False
 
     def _set_deepcompile_active(self, active: bool) -> None:
         """Toggle DeepCompile runtime state and manage forward hooks accordingly."""