diff --git a/tests/pytorch/debug/test_log.py b/tests/pytorch/debug/test_log.py
index 5d6fc41ac7..b16291ff61 100644
--- a/tests/pytorch/debug/test_log.py
+++ b/tests/pytorch/debug/test_log.py
@@ -151,6 +151,58 @@ def test_sanity(feature_dirs):
         assert stat in output, f"Stat {stat} not found in output"
 
 
+LOG_FP8_MODEL_PARAMETERS_CONFIG_BASE = """
+log:
+    layers:
+        layer_name_regex_pattern: .*
+    enabled:
+        True
+    transformer_engine:
+        LogTensorStats:
+            enabled:
+                True
+            stats: [min]
+            tensors: [weight, activation, gradient]
+            freq: 1
+        LogFp8TensorStats:
+            enabled:
+                True
+            tensors_struct:
+                - tensor: activation
+                  stats: [scale_inv_min, scale_inv_max, underflows%]
+                - tensor: weight
+                  stats: [scale_inv_min, scale_inv_max]
+            freq: 1
+"""
+
+
+def test_sanity_log_fp8_model_parameters(feature_dirs):
+    """
+    Tests logging stats when model parameters are in fp8.
+    It tests 3 things:
+        - LogTensorStats for weight tensor should work without change,
+        - LogTensorStats and LogFp8TensorStats for non-weight tensors should work without change,
+        - LogFp8TensorStats should support scale_inv_min, scale_inv_max for weight tensor.
+
+    """
+    if not fp8_available:
+        pytest.skip(reason_for_no_fp8)
+
+    with debug_session(LOG_FP8_MODEL_PARAMETERS_CONFIG_BASE, feature_dirs) as log_dir:
+        with te.fp8_model_init(recipe=recipe.DelayedScaling()):
+            model = te.Linear(128, 128, params_dtype=torch.bfloat16)
+        inp = torch.zeros(128, 128, dtype=torch.bfloat16).cuda()
+        for _ in range(10):
+            with te.fp8_autocast(fp8_recipe=recipe.DelayedScaling()):
+                output = model(inp)
+            loss = output.sum()
+            loss.backward()
+            debug_api.step()
+        output = read_log(log_dir)
+    assert output, "Output is empty"
+    TEDebugState._reset()
+
+
 fp8_recipes = [
     recipe.MXFP8BlockScaling(),
     recipe.DelayedScaling(),
diff --git a/tests/pytorch/test_sanity.py b/tests/pytorch/test_sanity.py
index d47bc553b0..3ef8c0983f 100644
--- a/tests/pytorch/test_sanity.py
+++ b/tests/pytorch/test_sanity.py
@@ -551,8 +551,6 @@ def test_sanity_linear(dtype, fp8_recipe, model, skip_wgrad, skip_dgrad, microba
 @pytest.mark.parametrize("fp8_model_params", all_boolean)
 @pytest.mark.parametrize("use_bias", all_boolean)
 def test_sanity_linear_with_zero_tokens(dtype, bs, model, fp8_recipe, fp8_model_params, use_bias):
-    if NVTE_TEST_NVINSPECT_ENABLED and fp8_model_params:
-        pytest.skip("Quantized model parameters are not supported in debug mode.")
     config = model_configs[model]
     ffn_hidden_size = 4 * config.hidden_size
     num_tokens = bs * config.max_seqlen_q
@@ -599,8 +597,6 @@ def test_sanity_grouped_linear(
     num_gemms,
     empty_split,
 ):
-    if NVTE_TEST_NVINSPECT_ENABLED and fp8_model_params:
-        pytest.skip("FP8 model parameters are not supported in debug mode.")
     config = model_configs[model]
     ffn_hidden_size = 4 * config.hidden_size
     # Small batch size used to catch bug from https://github.com/NVIDIA/TransformerEngine/pull/1527.
@@ -1222,8 +1218,6 @@ def test_inference_mode(
     quantization: Optional[str],
 ) -> None:
     """Test heuristics for initializing quantized weights"""
-    if NVTE_TEST_NVINSPECT_ENABLED and quantization is not None:
-        pytest.skip("Quantized model parameters are not supported in debug mode.")
 
     # Tensor dimensions
     sequence_length = 32
diff --git a/transformer_engine/debug/features/api.py b/transformer_engine/debug/features/api.py
index 9c30f87c3b..774fae3594 100644
--- a/transformer_engine/debug/features/api.py
+++ b/transformer_engine/debug/features/api.py
@@ -244,7 +244,7 @@ def inspect_tensor(
         config: Dict,
         layer_name: str,
         tensor_name: str,
-        tensor: torch.Tensor,
+        tensor: Optional[torch.Tensor],
         rowwise_quantized_tensor: Optional[torch.Tensor],
         columnwise_quantized_tensor: Optional[torch.Tensor],
         quantizer: Optional[Quantizer],
@@ -262,8 +262,8 @@ def inspect_tensor(
         layer_name: str
         tensor_name: str
             one of [`activation`, `weight`, `gradient`, `output`, `wgrad`, `dgrad`],
-        tensor: torch.Tensor
-            tensor in high precision,
+        tensor: Optional[torch.Tensor]
+            tensor in high precision. It can be None only if fp8 model parameters are used and tensor name is `weight`.
         rowwise_quantized_tensor: Optional[torch.Tensor]
             rowwise quantized tensor,
         columnwise_quantized_tensor: Optional[torch.Tensor]
diff --git a/transformer_engine/debug/features/log_fp8_tensor_stats.py b/transformer_engine/debug/features/log_fp8_tensor_stats.py
index 108b33fd86..fd18d590ec 100644
--- a/transformer_engine/debug/features/log_fp8_tensor_stats.py
+++ b/transformer_engine/debug/features/log_fp8_tensor_stats.py
@@ -122,6 +122,10 @@ class LogFp8TensorStats(BaseLogTensorStats):
                 - scale_inv_max - maximum of the inverse of the scaling factors,
                 - mse - mean squared error of the quantized tensor and the original tensor = sum((quantized_tensor - original_tensor)**2) / num_elements,
 
+            When collecting stats for the weight tensor with FP8 model parameters enabled,
+            only "scale_inv_min" and "scale_inv_max" are available.
+            All other statistics require access to the high precision tensor.
+
         tensors/tensors_struct: List[str]
             list of tensors to log
                 - activation,
@@ -159,7 +163,9 @@ class LogFp8TensorStats(BaseLogTensorStats):
                     end_step: 80
     """
 
-    def check_if_stat_is_supported(self, stat: str, current_recipe: str):
+    def check_if_stat_is_supported(
+        self, stat: str, current_recipe: str, high_precision_tensor_provided: bool
+    ):
         """Returns True if stat is supported, raises ValueError otherwise."""
         columnwise = stat.endswith("_columnwise")
         if columnwise:
@@ -167,6 +173,17 @@ def check_if_stat_is_supported(self, stat: str, current_recipe: str):
         recipe_from_stat, _ = self.get_recipe_from_stat(stat, default_recipe=current_recipe)
         stat_without_recipe = stat.replace(recipe_from_stat + "_", "")
 
+        need_high_precision_tensor_stats = ["underflows%", "overflows%", "mse"]
+        if (
+            stat_without_recipe in need_high_precision_tensor_stats
+            and not high_precision_tensor_provided
+        ):
+            raise ValueError(
+                f"Stat {stat} requires a high precision tensor to be provided. "
+                "This feature is not supported for weight tensors when using fp8 model "
+                "parameters."
+            )
+
         if current_recipe == "" and recipe_from_stat == "":
             raise ValueError(
                 f"Stat {stat} does not contain a recipe name and the current recipe is not set."
@@ -290,7 +307,7 @@ def inspect_tensor(
         tensor_name: str,
         iteration: int,
         tp_group: torch.distributed.ProcessGroup,
-        tensor: torch.Tensor,
+        tensor: Optional[torch.Tensor],
         rowwise_quantized_tensor: Optional[torch.Tensor | QuantizedTensor] = None,
         columnwise_quantized_tensor: Optional[torch.Tensor | QuantizedTensor] = None,
         quantizer: Optional[Quantizer] = None,
@@ -322,7 +339,9 @@ def inspect_tensor(
         recipe_name = _get_recipe_name(quantizer)
 
         for stat in config["stats"]:
-            self.check_if_stat_is_supported(stat, recipe_name)
+            self.check_if_stat_is_supported(
+                stat, recipe_name, high_precision_tensor_provided=tensor is not None
+            )
 
         start_step = config.get("start_step", None)
         end_step = config.get("end_step", None)
diff --git a/transformer_engine/debug/features/log_tensor_stats.py b/transformer_engine/debug/features/log_tensor_stats.py
index 100fa64481..76e61fab24 100644
--- a/transformer_engine/debug/features/log_tensor_stats.py
+++ b/transformer_engine/debug/features/log_tensor_stats.py
@@ -180,13 +180,19 @@ def inspect_tensor(
         tensor_name: str,
         iteration: int,
         tp_group: torch.distributed.ProcessGroup,
-        tensor: torch.Tensor,
+        tensor: Optional[torch.Tensor],
         rowwise_quantized_tensor: Optional[torch.Tensor | QuantizedTensor] = None,
         columnwise_quantized_tensor: Optional[torch.Tensor | QuantizedTensor] = None,
         quantizer: Optional[Quantizer] = None,
     ):  # pylint: disable=unused-argument
         """API call used to collect the data about the tensor before process_tensor()/quantization."""
 
+        # Tensor is None only if fp8 model parameters are used and tensor name is `weight`.
+        # If one wants to collect stats for this tensor, we need to dequantize it.
+        if tensor is None:
+            assert isinstance(rowwise_quantized_tensor, QuantizedTensor)
+            tensor = rowwise_quantized_tensor.dequantize()
+
         assert (
             type(tensor) not in [Float8Tensor, Float8TensorStorage, MXFP8Tensor, MXFP8TensorStorage]
             and tensor.dtype != torch.uint8
diff --git a/transformer_engine/debug/features/utils/stats_buffer.py b/transformer_engine/debug/features/utils/stats_buffer.py
index 9ce56dd76d..ca7f22e2de 100644
--- a/transformer_engine/debug/features/utils/stats_buffer.py
+++ b/transformer_engine/debug/features/utils/stats_buffer.py
@@ -90,12 +90,19 @@ def feed(self, tensor, iteration, aux_dict=None):
         if self.modified[0] and not self.reduce_within_microbatch:
             return
 
-        if (
-            tensor.numel() == 0
-            if hasattr(tensor, "numel")
-            else all((t is None or t.numel() == 0) for t in tensor.get_data_tensors())
-        ):
-            return
+        if tensor is not None:
+            # tensor can be None if we compute fp8 stats for weight and fp8 model parameters are used
+            # then high precision is not provided and quantized tensor from aux_dict is used.
+
+            # This condition prevents computation of stats for empty tensor.
+            # This will not happen for weight - since it is the only situation then tensor can be None,
+            # we do not need to check similar condition for weight.
+            if (
+                tensor.numel() == 0
+                if hasattr(tensor, "numel")
+                else all((t is None or t.numel() == 0) for t in tensor.get_data_tensors())
+            ):
+                return
 
         # save stats for tensor to tmp buffer
         for stat_name in self.stats_to_compute:
diff --git a/transformer_engine/debug/pytorch/debug_quantization.py b/transformer_engine/debug/pytorch/debug_quantization.py
index 455079143b..5624970547 100644
--- a/transformer_engine/debug/pytorch/debug_quantization.py
+++ b/transformer_engine/debug/pytorch/debug_quantization.py
@@ -267,7 +267,7 @@ def _call_inspect_tensor_api(
             "rowwise_quantized_tensor": rowwise_gemm_tensor,
             "quantizer": self.parent_quantizer,
         }
-        if tensor is not None and self.inspect_tensor_enabled:
+        if self.inspect_tensor_enabled:
             debug_api.transformer_engine.inspect_tensor(**args)
 
         if self.output_tensor:
@@ -559,6 +559,30 @@ def set_usage(self, rowwise: bool = None, columnwise: bool = None):
         if not self.output_tensor:
             self._update_parent_quantizer_usage()
 
+    def wrap_quantized_tensor(self, tensor: QuantizedTensor):
+        """
+        Wraps the quantized tensor with the debug quantizer.
+        It is used for weight tensors when fp8 model parameters are enabled.
+        """
+
+        assert (
+            self.rowwise_tensor_plan == STANDARD_QUANTIZE
+            and self.columnwise_tensor_plan == STANDARD_QUANTIZE
+        ), (
+            "[NVTORCH INSPECT ERROR] Weight tensor with fp8 model parameters enabled cannot be"
+            " modified by any feature."
+        )
+
+        self._call_inspect_tensor_api(None, tensor, tensor)
+
+        return DebugQuantizedTensor(
+            rowwise_gemm_tensor=tensor,
+            columnwise_gemm_tensor=tensor,
+            quantizer=self,
+            layer_name=self.layer_name,
+            tensor_name=self.tensor_name,
+        )
+
     @classmethod
     def multi_tensor_quantize(
         cls,
diff --git a/transformer_engine/pytorch/module/base.py b/transformer_engine/pytorch/module/base.py
index 09b12afa21..4858383c26 100644
--- a/transformer_engine/pytorch/module/base.py
+++ b/transformer_engine/pytorch/module/base.py
@@ -1390,6 +1390,10 @@ def get_weight_workspace(
                 rowwise_usage=update_rowwise_usage,
                 columnwise_usage=update_columnwise_usage,
             )
+
+            if isinstance(quantizer, DebugQuantizer):
+                tensor = quantizer.wrap_quantized_tensor(tensor)
+
             return tensor
 
         # Try getting workspace from cache
@@ -1585,8 +1589,6 @@ def no_debug_features_active(self, quantizers):
         if not run_current:
             return True
 
-        if self.primary_weights_in_fp8:
-            raise RuntimeError("FP8 weights are not supported in debug mode.")
         return False
 
     def _validate_name(self):
diff --git a/transformer_engine/pytorch/module/grouped_linear.py b/transformer_engine/pytorch/module/grouped_linear.py
index 2f859e748b..b381073d78 100644
--- a/transformer_engine/pytorch/module/grouped_linear.py
+++ b/transformer_engine/pytorch/module/grouped_linear.py
@@ -123,8 +123,9 @@ def forward(
                     and not in_fp8_activation_recompute_phase()
                 )
             # No need to set the quantizer states if weight is already quantized
-            if weight_quantizers[0] is not None and not isinstance(
-                weights[0], QuantizedTensorStorage
+            # for debug mode we create quantizer every iteration, thus we need to set the quantizer states
+            if weight_quantizers[0] is not None and (
+                not isinstance(weights[0], QuantizedTensorStorage) or debug
             ):
                 for weight_quantizer in weight_quantizers:
                     weight_quantizer.set_usage(rowwise=True, columnwise=columnwise_usage)
@@ -874,9 +875,6 @@ def forward(
                     debug = False
                     quantizers = self._get_quantizers()
 
-                if isinstance(weight_tensors, QuantizedTensorStorage):
-                    raise RuntimeError("FP8 weights are not supported in debug mode.")
-
             (
                 input_quantizers,
                 weight_quantizers,
diff --git a/transformer_engine/pytorch/module/layernorm_linear.py b/transformer_engine/pytorch/module/layernorm_linear.py
index 702916696b..27632db15b 100644
--- a/transformer_engine/pytorch/module/layernorm_linear.py
+++ b/transformer_engine/pytorch/module/layernorm_linear.py
@@ -293,7 +293,8 @@ def forward(
 
             # Configure quantizer
             # If weight is already quantized, no need to set quantizer states
-            if is_weight_param_quantized:
+            # for debug mode we create quantizer every iteration, thus we need to set the quantizer states
+            if is_weight_param_quantized and not debug:
                 weight_quantizer = weight._quantizer
             elif weight_quantizer is not None:
                 weight_quantizer.set_usage(rowwise=True, columnwise=is_grad_enabled)
diff --git a/transformer_engine/pytorch/module/layernorm_mlp.py b/transformer_engine/pytorch/module/layernorm_mlp.py
index 4532ea60e7..b8823e46ca 100644
--- a/transformer_engine/pytorch/module/layernorm_mlp.py
+++ b/transformer_engine/pytorch/module/layernorm_mlp.py
@@ -473,12 +473,13 @@ def _forward(
             # FP8 cast to workspace buffer
             update_workspace = is_first_microbatch is None or is_first_microbatch
             # No need to set the quantizer states if weights are already quantized
-            if isinstance(fc1_weight, QuantizedTensorStorage):
+            # for debug mode we create quantizer every iteration, thus we need to set the quantizer states
+            if isinstance(fc1_weight, QuantizedTensorStorage) and not debug:
                 fc1_weight_quantizer = fc1_weight._quantizer
             elif fc1_weight_quantizer is not None:
                 fc1_weight_quantizer.set_usage(rowwise=True, columnwise=is_grad_enabled)
 
-            if isinstance(fc2_weight, QuantizedTensorStorage):
+            if isinstance(fc2_weight, QuantizedTensorStorage) and not debug:
                 fc2_weight_quantizer = fc2_weight._quantizer
             elif fc2_weight_quantizer is not None:
                 fc2_weight_quantizer.set_usage(rowwise=True, columnwise=is_grad_enabled)
diff --git a/transformer_engine/pytorch/module/linear.py b/transformer_engine/pytorch/module/linear.py
index 23ad8cacb0..a55429d33d 100644
--- a/transformer_engine/pytorch/module/linear.py
+++ b/transformer_engine/pytorch/module/linear.py
@@ -253,7 +253,8 @@ def forward(
         if fp8 or debug:
             # Configure quantizer
             # No need to set the quantizer states if weight is already quantized
-            if weight_quantizer is not None and not isinstance(weight, QuantizedTensor):
+            # for debug mode we create quantizer every iteration, thus we need to set the quantizer states
+            if weight_quantizer is not None and (not isinstance(weight, QuantizedTensor) or debug):
                 columnwise_usage = is_grad_enabled and inp.requires_grad
                 if not columnwise_usage:
                     columnwise_usage = (