diff --git a/optimum/habana/transformers/models/llama/modeling_llama.py b/optimum/habana/transformers/models/llama/modeling_llama.py
index 18867ff8a4..6ab636f565 100755
--- a/optimum/habana/transformers/models/llama/modeling_llama.py
+++ b/optimum/habana/transformers/models/llama/modeling_llama.py
@@ -430,7 +430,68 @@ def forward(self, cur, dim, idx):
         return self.update(self.cache, cur, dim, idx, self.inp_seq_len)
 
 
-def GaudiDistributedAttention(fused_scaled_dot_product_attention, fused_scaled_dot_product_attention_distributed):
+class GaudiDistributedAttention(torch.nn.Module):
+    def __init__(
+        self, hpu_module_fsdpa: ModuleFusedSDPA, scale, attention_dropout, enable_recompute, flash_attention_fp8
+    ):
+        super().__init__()
+        self._hpu_module_fsdpa = hpu_module_fsdpa
+        if parallel_state.sequence_parallel_is_initialized() and parallel_state.get_sequence_parallel_world_size() > 1:
+            from deepspeed.sequence.layer import DistributedAttention
+
+            self._hpu_module_fsdpa_distributed = DistributedAttention(
+                self._hpu_module_fsdpa, parallel_state.get_sequence_parallel_group(), 1, 2
+            )
+
+    def forward(
+        self,
+        query: torch.Tensor,
+        key: torch.Tensor,
+        value: torch.Tensor,
+        attn_mask: torch.Tensor,
+        dropout_p: float,
+        is_casual,
+        scale,
+        softmax_mode,
+        recompute_mode,
+        valid_sequence_lengths,
+        padding_side="left",
+    ):
+        if parallel_state.sequence_parallel_is_initialized() and parallel_state.get_sequence_parallel_world_size() > 1:
+            return self._hpu_module_fsdpa_distributed(
+                query,
+                key,
+                value,
+                0,  # As the shape for inputs is [B, N, S, H]
+                None,
+                attn_mask,
+                dropout_p,
+                is_casual,
+                scale,
+                softmax_mode,
+                recompute_mode,
+                valid_sequence_lengths,
+                padding_side,
+            )
+        else:
+            return self._hpu_module_fsdpa(
+                query,
+                key,
+                value,
+                attn_mask,
+                dropout_p,
+                is_casual,
+                scale,
+                softmax_mode,
+                recompute_mode,
+                valid_sequence_lengths,
+                padding_side,
+            )
+
+
+def get_gaudi_distributed_attention(
+    fused_scaled_dot_product_attention, fused_scaled_dot_product_attention_distributed
+):
     if parallel_state.sequence_parallel_is_initialized() and parallel_state.get_sequence_parallel_world_size() > 1:
         return fused_scaled_dot_product_attention_distributed
     else:
@@ -472,14 +533,19 @@ def __init__(self, config: LlamaConfig, layer_idx: Optional[int] = None):
             if FusedSDPA
             else None
         )
-        # https://github.com/microsoft/DeepSpeed/issues/4359
         # for all2all comm, Distributed Attention cares about sequence (s) and number of heads (h) dimensions. In HPU, they are at 1 and 2 indices
         self.fused_scaled_dot_product_attention_distributed = None
         if parallel_state.sequence_parallel_is_initialized() and parallel_state.get_sequence_parallel_world_size() > 1:
-            from deepspeed.sequence.layer import DistributedAttention
-
-            self.fused_scaled_dot_product_attention_distributed = DistributedAttention(
-                self.fused_scaled_dot_product_attention, parallel_state.get_sequence_parallel_group(), 1, 2
+            self.fused_scaled_dot_product_attention_distributed = (
+                GaudiDistributedAttention(
+                    self.fused_scaled_dot_product_attention,
+                    scale=self.norm_factor,
+                    attention_dropout=self.attention_dropout,
+                    enable_recompute=False,
+                    flash_attention_fp8=getattr(config, "flash_attention_fp8", False),
+                )
+                if FusedSDPA
+                else None
             )
 
     def get_k_proj_weight(self):
@@ -696,7 +762,7 @@ def pre_attn_forward(
                 kv_seq_len = key_states.shape[-2]
         else:
             past_key_value = None
-        fused_scaled_dot_product_attention = GaudiDistributedAttention(
+        fused_scaled_dot_product_attention = get_gaudi_distributed_attention(
             self.fused_scaled_dot_product_attention, self.fused_scaled_dot_product_attention_distributed
         )
         if use_flash_attention and FusedSDPA is not None: