diff --git a/deepspeed/runtime/zero/partition_parameters.py b/deepspeed/runtime/zero/partition_parameters.py
index 6ef87f9e00aa..34f10ec56210 100755
--- a/deepspeed/runtime/zero/partition_parameters.py
+++ b/deepspeed/runtime/zero/partition_parameters.py
@@ -228,10 +228,34 @@ def __enter__(self):
         def partition_after(f):
             @functools.wraps(f)
             def wrapper(module, *args, **kwargs):
+
+                # important logic: We want to run post_init only after child's __init__ is
+                # completed, and do nothing after __init__ of any of its parents and grandparents in
+                # the inheritance ancestry. This way the partitioning will need to happen only once
+                # when the whole object is ready to be partitioned and not before. This is because
+                # often the child module will need to tweak the weights - for example running a
+                # custom weights init function. So if a parent created the weights param, the child
+                # won't need to gather it in order to tweak it
+
                 print_rank_0(f'Before initializing {module.__class__.__name__}',
                              force=False)
+
+                is_child_module = False
+                if not hasattr(module, "_ds_child_entered"):
+                    # child's __init__ was called, since parents all see the same object they can now skip post_init
+                    is_child_module = True
+                    setattr(module, "_ds_child_entered", True)
+
                 f(module, *args, **kwargs)
-                self._post_init_method(module)
+
+                if is_child_module:
+                    # child's __init__ is done, now we can run a single post_init on the child object
+                    delattr(module, "_ds_child_entered")
+
+                    print_rank_0(f'Running post_init for {module.__class__.__name__}',
+                                 force=False)
+                    self._post_init_method(module)
+
                 print_rank_0(
                     f'After initializing followed by post init for {module.__class__.__name__}',
                     force=False)
diff --git a/tests/unit/test_zero_context.py b/tests/unit/test_zero_context.py
index 98ee0c7ad00b..edeeb1c6e960 100644
--- a/tests/unit/test_zero_context.py
+++ b/tests/unit/test_zero_context.py
@@ -283,6 +283,7 @@ def test_stage_3_output_type(output_type):
             engine.step()
 
 
+# test that no sub-class or super-class is missed
 class ConvX(torch.nn.Conv1d):
     def __init__(self, *args):
         super().__init__(*args)
@@ -310,3 +311,52 @@ def test_subclass_param():
 
     assert model.param.ds_status == ZeroParamStatus.NOT_AVAILABLE
     assert model.conv1.param_in.ds_status == ZeroParamStatus.NOT_AVAILABLE
+
+
+# test that sub-classes get params that aren't prematurely partitioned and thus requiring gathering
+# fixed by https://github.com/microsoft/DeepSpeed/pull/1202
+class GrandPa(torch.nn.Module):
+    def __init__(self, *args):
+        super().__init__(*args)
+        self.param_grandpa = torch.nn.Parameter(torch.ones(5))
+        self.param_grandpa.data = (self.param_grandpa.data +
+                                   1).data  # test param is not yet partitioned
+
+
+class Pa(GrandPa):
+    def __init__(self, *args):
+        super().__init__(*args)
+        self.param_pa = torch.nn.Parameter(torch.ones(5))
+        self.param_pa.data = (self.param_pa.data +
+                              1).data  # test param is not yet partitioned
+        self.param_grandpa.data = (self.param_grandpa.data +
+                                   1).data  # test param is not yet partitioned
+
+
+class Son(Pa):
+    def __init__(self):
+        super().__init__()
+        self.param = torch.nn.Parameter(torch.ones(5))
+        self.param.data = (self.param.data + 1).data  # test param is not yet partitioned
+        self.param_pa.data = (self.param_pa.data +
+                              1).data  # test param is not yet partitioned
+        self.param_grandpa.data = (self.param_grandpa.data +
+                                   1).data  # test param is not yet partitioned
+
+
+def test_subclass_param_init():
+    setup_serial_env()
+    with deepspeed.zero.Init(config=config):
+        model = Son().cpu()
+
+    # test that all params have been partitioned
+    assert model.param_grandpa.ds_status == ZeroParamStatus.NOT_AVAILABLE
+    assert model.param_pa.ds_status == ZeroParamStatus.NOT_AVAILABLE
+    assert model.param.ds_status == ZeroParamStatus.NOT_AVAILABLE
+
+    # test that the weights manipulation during each __init__ worked in all w/o needing gathering
+    ones = torch.ones(5).half().cuda()
+    with deepspeed.zero.GatheredParameters(list(model.parameters(recurse=False))):
+        assert torch.equal(model.param, ones + 1)
+        assert torch.equal(model.param_pa, ones + 2)
+        assert torch.equal(model.param_grandpa, ones + 3)