diff --git a/src/petals/models/falcon/block.py b/src/petals/models/falcon/block.py
index aa9702c74..d6475127d 100644
--- a/src/petals/models/falcon/block.py
+++ b/src/petals/models/falcon/block.py
@@ -9,6 +9,9 @@
 from transformers.models.falcon.modeling_falcon import FalconDecoderLayer, FalconModel, build_alibi_tensor
 
 
+KVCache = Tuple[torch.Tensor, torch.Tensor]
+
+
 class WrappedFalconBlock(FalconDecoderLayer):
     def forward(
         self,
@@ -16,7 +19,7 @@ def forward(
         *args,
         attention_mask: Optional[torch.Tensor] = None,
         alibi: Optional[torch.Tensor] = None,
-        layer_past: Optional[Tuple[torch.Tensor, torch.Tensor]] = None,
+        layer_past: Optional[KVCache] = None,
         use_cache: bool = False,
         **kwargs
     ):
@@ -44,15 +47,50 @@ def forward(
 
         if use_cache:
             present_key_value = outputs[-1]
-            present_key_value = self._reorder_cache_from_bloom_to_falcon(present_key_value)
+            present_key_value = self._reorder_cache_from_falcon_to_bloom(present_key_value)
             outputs = outputs[:-1] + (present_key_value,)
 
         return outputs
 
-    @staticmethod
-    def _reorder_cache_from_bloom_to_falcon(
-        key_value: Tuple[torch.Tensor, torch.Tensor]
-    ) -> Tuple[torch.Tensor, torch.Tensor]:
+    def _reorder_cache_from_bloom_to_falcon(self, key_value: KVCache) -> KVCache:
+        key_states, value_states = key_value
+
+        key_states = key_states.permute(0, 2, 1)
+        assert key_states.shape == value_states.shape  # Both are [batch_size * num_kv_heads, seq_len, head_dim]
+
+        if self.config.new_decoder_architecture:
+            key_states = self._expand_states(key_states)
+            value_states = self._expand_states(value_states)
+
+        return (key_states, value_states)
+
+    def _reorder_cache_from_falcon_to_bloom(self, key_value: KVCache) -> KVCache:
         key_states, value_states = key_value
+
+        if self.config.new_decoder_architecture:
+            key_states = self._collapse_states(key_states)
+            value_states = self._collapse_states(value_states)
+
+        assert key_states.shape == value_states.shape  # Both are [batch_size * num_kv_heads, seq_len, head_dim]
         key_states = key_states.permute(0, 2, 1)
+
         return (key_states, value_states)
+
+    def _expand_states(self, state: torch.Tensor) -> torch.Tensor:
+        # Shape: [batch_size * num_kv_heads, seq_len, head_dim] -> [batch_size * num_attn_heads, seq_len, head_dim]
+
+        _, seq_len, head_dim = state.shape
+        state = state.view(-1, 1, self.config.num_kv_heads, seq_len, head_dim)
+        # Here, .expand() doesn't allocate new memory, instead uses stride=0 along dim=1
+        state = state.expand(-1, self.config.num_key_value_groups, self.config.num_kv_heads, seq_len, head_dim)
+        state = state.reshape(-1, seq_len, head_dim)
+        return state
+
+    def _collapse_states(self, state: torch.Tensor) -> torch.Tensor:
+        # Shape: [batch_size * num_attn_heads, seq_len, head_dim] -> [batch_size * num_kv_heads, seq_len, head_dim]
+
+        _, seq_len, head_dim = state.shape
+        state = state.view(-1, self.config.num_key_value_groups, self.config.num_kv_heads, seq_len, head_dim)
+        state = state[:, 0]
+        state = state.view(-1, seq_len, head_dim)
+        return state