diff --git a/benchmarks/cutlass_benchmarks/w8a8_benchmarks.py b/benchmarks/cutlass_benchmarks/w8a8_benchmarks.py
index a5a5b52f6039..02f8c593392c 100644
--- a/benchmarks/cutlass_benchmarks/w8a8_benchmarks.py
+++ b/benchmarks/cutlass_benchmarks/w8a8_benchmarks.py
@@ -17,7 +17,7 @@
 
 from vllm import _custom_ops as ops
 from vllm.model_executor.layers.quantization.utils.fp8_utils import (
-    w8a8_block_fp8_matmul,
+    w8a8_triton_block_scaled_mm,
 )
 from vllm.utils import FlexibleArgumentParser, cdiv
 
@@ -158,7 +158,7 @@ def bench_fp8(
         "cutlass_fp8_fp8_fp16_scaled_mm_bias": lambda: ops.cutlass_scaled_mm(
             a, b, scale_a, scale_b, torch.float16, bias.to(dtype=torch.float16)
         ),
-        "triton_fp8_fp8_fp16_scaled_mm_blockwise": lambda: w8a8_block_fp8_matmul(
+        "triton_fp8_fp8_fp16_scaled_mm_blockwise": lambda: w8a8_triton_block_scaled_mm(
             a_cont, b.t(), block_scale_a, block_scale_b.t(), (128, 128)
         ),
         "cutlass_fp8_fp8_fp16_scaled_mm_blockwise": lambda: ops.cutlass_scaled_mm(
diff --git a/benchmarks/kernels/deepgemm/benchmark_fp8_block_dense_gemm.py b/benchmarks/kernels/deepgemm/benchmark_fp8_block_dense_gemm.py
index b99c2099f2c3..b3c3742825de 100644
--- a/benchmarks/kernels/deepgemm/benchmark_fp8_block_dense_gemm.py
+++ b/benchmarks/kernels/deepgemm/benchmark_fp8_block_dense_gemm.py
@@ -10,7 +10,7 @@
 from vllm.model_executor.layers.quantization.utils.fp8_utils import (
     get_col_major_tma_aligned_tensor,
     per_token_group_quant_fp8,
-    w8a8_block_fp8_matmul,
+    w8a8_triton_block_scaled_mm,
 )
 from vllm.triton_utils import triton
 from vllm.utils.deep_gemm import calc_diff, fp8_gemm_nt, per_block_cast_to_fp8
@@ -59,7 +59,7 @@ def deepgemm_gemm():
 
     # === vLLM Triton Implementation ===
     def vllm_triton_gemm():
-        return w8a8_block_fp8_matmul(A_vllm,
+        return w8a8_triton_block_scaled_mm(A_vllm,
                                      B_vllm,
                                      A_scale_vllm,
                                      B_scale_vllm,
diff --git a/tests/kernels/quantization/test_block_fp8.py b/tests/kernels/quantization/test_block_fp8.py
index c440747316b8..c0b934fc55ae 100644
--- a/tests/kernels/quantization/test_block_fp8.py
+++ b/tests/kernels/quantization/test_block_fp8.py
@@ -12,7 +12,7 @@
 from vllm.config import VllmConfig
 from vllm.model_executor.layers.quantization.utils.fp8_utils import (
     cutlass_scaled_mm, get_col_major_tma_aligned_tensor,
-    per_token_group_quant_fp8, w8a8_block_fp8_matmul)
+    per_token_group_quant_fp8, w8a8_triton_block_scaled_mm)
 from vllm.platforms import current_platform
 from vllm.utils import has_deep_gemm
 from vllm.utils.deep_gemm import fp8_gemm_nt, per_block_cast_to_fp8
@@ -90,7 +90,8 @@ def test_w8a8_block_fp8_matmul(M, N, K, block_size, out_dtype, seed):
 
     ref_out = native_w8a8_block_matmul(A_fp8, B_fp8, As, Bs, block_size,
                                        out_dtype)
-    out = w8a8_block_fp8_matmul(A_fp8, B_fp8, As, Bs, block_size, out_dtype)
+    out = w8a8_triton_block_scaled_mm(A_fp8, B_fp8, As, Bs, block_size,
+                                      out_dtype)
 
     rel_diff = (torch.mean(
         torch.abs(out.to(torch.float32) - ref_out.to(torch.float32))) /
diff --git a/tests/kernels/quantization/test_fp8_quant_group.py b/tests/kernels/quantization/test_fp8_quant_group.py
index 720eee62760d..3d4c851a9b88 100644
--- a/tests/kernels/quantization/test_fp8_quant_group.py
+++ b/tests/kernels/quantization/test_fp8_quant_group.py
@@ -20,9 +20,11 @@
         (8, 513, 64),  # Non-divisible (native only)
     ])
 @pytest.mark.parametrize("seed", [42])
+@pytest.mark.parametrize("use_ue8m0", [True, False])
 @torch.inference_mode()
 def test_quantfp8_group_functionality(batch_size: int, hidden_dim: int,
-                                      group_size: int, seed: int) -> None:
+                                      group_size: int, seed: int,
+                                      use_ue8m0: bool) -> None:
     """Test QuantFP8 group quantization with various configurations.
 
     Tests both CUDA and native implementations, column-major scales,
@@ -38,7 +40,8 @@ def test_quantfp8_group_functionality(batch_size: int, hidden_dim: int,
     group_shape = GroupShape(1, group_size)
     quant_op = QuantFP8(static=False,
                         group_shape=group_shape,
-                        column_major_scales=False)
+                        column_major_scales=False,
+                        use_ue8m0=use_ue8m0)
 
     # 1. Test native implementation (always available)
     x_quant_native, scales_native = quant_op.forward_native(x.clone())
@@ -48,9 +51,15 @@ def test_quantfp8_group_functionality(batch_size: int, hidden_dim: int,
     # 2. Test column-major scales configuration
     quant_op_col = QuantFP8(static=False,
                             group_shape=group_shape,
-                            column_major_scales=True)
+                            column_major_scales=True,
+                            use_ue8m0=use_ue8m0)
     _, scales_col = quant_op_col.forward_native(x.clone())
-    assert scales_col.shape == (expected_num_groups, batch_size)
+    assert scales_col.shape == (batch_size, expected_num_groups)
+    assert scales_col.stride(0) == 1
+    assert scales_col.stride(1) == batch_size
+
+    # Test column-major scales consistency
+    assert torch.allclose(scales_col, scales_native, rtol=1e-9, atol=1e-8)
 
     # 3. Test CUDA implementation (only for divisible dimensions)
     if is_divisible:
@@ -68,8 +77,9 @@ def test_quantfp8_group_functionality(batch_size: int, hidden_dim: int,
 
 
 @pytest.mark.parametrize("seed", [42])
+@pytest.mark.parametrize("use_ue8m0", [True, False])
 @torch.inference_mode()
-def test_quantfp8_group_multidimensional(seed: int) -> None:
+def test_quantfp8_group_multidimensional(seed: int, use_ue8m0: bool) -> None:
     current_platform.seed_everything(seed)
 
     group_size = 64
@@ -82,7 +92,8 @@ def test_quantfp8_group_multidimensional(seed: int) -> None:
     group_shape = GroupShape(1, group_size)
     quant_op = QuantFP8(static=False,
                         group_shape=group_shape,
-                        column_major_scales=False)
+                        column_major_scales=False,
+                        use_ue8m0=use_ue8m0)
 
     x_quant, scales = quant_op.forward_native(x_3d.clone())
     assert x_quant.shape == x_3d.shape
@@ -91,7 +102,8 @@ def test_quantfp8_group_multidimensional(seed: int) -> None:
     # Test column_major_scales with multi-dim
     quant_op_col = QuantFP8(static=False,
                             group_shape=group_shape,
-                            column_major_scales=True)
+                            column_major_scales=True,
+                            use_ue8m0=use_ue8m0)
     _, scales_col = quant_op_col.forward_native(x_3d.clone())
     assert scales_col.shape == (batch1, hidden_dim // group_size, batch2)
 
diff --git a/tests/model_executor/test_enabled_custom_ops.py b/tests/model_executor/test_enabled_custom_ops.py
index 92ce10a9efc0..200b6ecd5852 100644
--- a/tests/model_executor/test_enabled_custom_ops.py
+++ b/tests/model_executor/test_enabled_custom_ops.py
@@ -17,8 +17,6 @@
 from vllm.model_executor.layers.layernorm import (RMSNorm,
                                                   dispatch_rocm_rmsnorm_func,
                                                   fused_add_rms_norm, rms_norm)
-from vllm.model_executor.layers.quantization.utils.fp8_utils import (
-    cutlass_scaled_mm, dispatch_w8a8_blockscale_func, w8a8_block_fp8_matmul)
 from vllm.platforms import current_platform
 
 RMS_NORM_SUPPORTED_DTYPES = [torch.float16, torch.bfloat16]
@@ -111,34 +109,6 @@ def test_enabled_ops_invalid(env: str):
             RMSNorm(1024).enabled()
 
 
-@pytest.mark.skipif(
-    not current_platform.is_rocm() or not current_platform.is_fp8_fnuz(),
-    reason="AITER is a feature exclusive for ROCm and FP8_FNUZ")
-@pytest.mark.parametrize("use_cutlass", [True, False])
-@pytest.mark.parametrize("use_rocm_aiter", ["0", "1"])
-@pytest.mark.parametrize("use_rocm_aiter_gemm_w8a8_blockscale", ["0", "1"])
-def test_w8a8_blockscale_dispatch(use_cutlass: bool, use_rocm_aiter: str,
-                                  use_rocm_aiter_gemm_w8a8_blockscale: str,
-                                  monkeypatch):
-
-    monkeypatch.setenv("VLLM_ROCM_USE_AITER", use_rocm_aiter)
-    monkeypatch.setenv("VLLM_ROCM_USE_AITER_LINEAR",
-                       use_rocm_aiter_gemm_w8a8_blockscale)
-
-    use_aiter_and_is_supported = (bool(int(use_rocm_aiter)) and bool(
-        int(use_rocm_aiter_gemm_w8a8_blockscale)))
-    block_scale_func = dispatch_w8a8_blockscale_func(
-        use_cutlass, use_aiter_and_is_supported=use_aiter_and_is_supported)
-    if use_cutlass:
-        assert block_scale_func == cutlass_scaled_mm
-    elif current_platform.is_rocm() and int(use_rocm_aiter) and int(
-            use_rocm_aiter_gemm_w8a8_blockscale):
-        assert block_scale_func == (
-            torch.ops.vllm.rocm_aiter_gemm_w8a8_blockscale)
-    else:
-        assert block_scale_func == w8a8_block_fp8_matmul
-
-
 @pytest.mark.parametrize("use_rocm_aiter", ["0", "1"])
 def test_topk_dispatch(use_rocm_aiter: str, monkeypatch):
     monkeypatch.setenv("VLLM_ROCM_USE_AITER", use_rocm_aiter)
diff --git a/tests/quantization/test_compressed_tensors.py b/tests/quantization/test_compressed_tensors.py
index c0ab3fbb1062..af8c7ec3b482 100644
--- a/tests/quantization/test_compressed_tensors.py
+++ b/tests/quantization/test_compressed_tensors.py
@@ -18,6 +18,9 @@
     CompressedTensorsW4A16Fp4, CompressedTensorsW4A16Sparse24,
     CompressedTensorsW8A8Fp8, CompressedTensorsW8A8Int8,
     CompressedTensorsW8A16Fp8, CompressedTensorsWNA16)
+from vllm.model_executor.layers.quantization.input_quant_fp8 import QuantFP8
+from vllm.model_executor.layers.quantization.utils.fp8_utils import (
+    W8A8BlockFp8LinearOp)
 from vllm.model_executor.layers.quantization.utils.quant_utils import (
     cutlass_fp4_supported)
 from vllm.model_executor.layers.quantization.utils.w8a8_utils import (
@@ -742,3 +745,35 @@ def test_compressed_tensors_transforms_perplexity(vllm_runner, model, prompt,
         perplexity = llm.generate_prompt_perplexity([prompt])[0]
         print(perplexity)
         assert perplexity <= exp_perplexity
+
+
+def test_compressed_tensors_fp8_block_enabled(vllm_runner):
+    model_path = "RedHatAI/Qwen3-0.6B-FP8-BLOCK"
+    with vllm_runner(model_path) as llm:
+
+        fp8_dtype = current_platform.fp8_dtype()
+
+        def check_model(model):
+            layer = model.model.layers[0]
+
+            qkv_proj = layer.self_attn.qkv_proj
+            assert isinstance(qkv_proj.quant_method,
+                              CompressedTensorsLinearMethod)
+            assert isinstance(qkv_proj.scheme, CompressedTensorsW8A8Fp8)
+            assert isinstance(qkv_proj.scheme.w8a8_block_fp8_linear,
+                              W8A8BlockFp8LinearOp)
+
+            assert qkv_proj.weight.dtype is fp8_dtype
+            assert qkv_proj.weight_scale.dtype is torch.float32
+            assert len(qkv_proj.weight.shape) == 2
+            assert len(qkv_proj.weight_scale.shape) == 2
+
+            input_quant_op = \
+                qkv_proj.scheme.w8a8_block_fp8_linear.input_quant_op
+            assert isinstance(input_quant_op, QuantFP8)
+            assert input_quant_op._forward_method == input_quant_op.forward_cuda
+
+        llm.apply_model(check_model)
+
+        output = llm.generate_greedy("Hello my name is", max_tokens=20)
+        assert output
diff --git a/vllm/config/__init__.py b/vllm/config/__init__.py
index a2562a10b45a..50e8cad23617 100644
--- a/vllm/config/__init__.py
+++ b/vllm/config/__init__.py
@@ -687,6 +687,23 @@ def __post_init__(self):
                     # local attention.
                     self.scheduler_config.disable_hybrid_kv_cache_manager = True
 
+        def has_blocked_weights():
+            if self.quant_config is not None:
+                if hasattr(self.quant_config, "weight_block_size"):
+                    return self.quant_config.weight_block_size is not None
+                elif hasattr(self.quant_config, "has_blocked_weights"):
+                    return self.quant_config.has_blocked_weights()
+            return False
+
+        # Enable quant_fp8 CUDA ops (TODO disable in follow up)
+        # On H100 the CUDA kernel is faster than
+        # native implementation
+        # https://github.com/vllm-project/vllm/issues/25094
+        if has_blocked_weights():
+            custom_ops = self.compilation_config.custom_ops
+            if "none" not in custom_ops and "-quant_fp8" not in custom_ops:
+                custom_ops.append("+quant_fp8")
+
     def update_sizes_for_sequence_parallelism(self,
                                               possible_sizes: list) -> list:
         # remove the sizes that not multiple of tp_size when
diff --git a/vllm/model_executor/layers/quantization/compressed_tensors/compressed_tensors.py b/vllm/model_executor/layers/quantization/compressed_tensors/compressed_tensors.py
index d6550dd16892..3f771ea2abd1 100644
--- a/vllm/model_executor/layers/quantization/compressed_tensors/compressed_tensors.py
+++ b/vllm/model_executor/layers/quantization/compressed_tensors/compressed_tensors.py
@@ -644,6 +644,14 @@ def get_cache_scale(self, name: str) -> Optional[str]:
         # If no matches, return None
         return None
 
+    def has_blocked_weights(self) -> bool:
+        for scheme in self.target_scheme_map.values():
+            weight_quant = scheme.get("weights")
+            if (weight_quant is not None
+                    and weight_quant.strategy == QuantizationStrategy.BLOCK):
+                return True
+        return False
+
     @staticmethod
     def supports_cutlass_24(
             weight_quant: Optional[QuantizationArgs],
diff --git a/vllm/model_executor/layers/quantization/compressed_tensors/schemes/compressed_tensors_w8a8_fp8.py b/vllm/model_executor/layers/quantization/compressed_tensors/schemes/compressed_tensors_w8a8_fp8.py
index d42ae22c5139..fa0816959fcd 100644
--- a/vllm/model_executor/layers/quantization/compressed_tensors/schemes/compressed_tensors_w8a8_fp8.py
+++ b/vllm/model_executor/layers/quantization/compressed_tensors/schemes/compressed_tensors_w8a8_fp8.py
@@ -11,7 +11,7 @@
 from vllm.model_executor.layers.quantization.compressed_tensors.schemes import (
     CompressedTensorsScheme)
 from vllm.model_executor.layers.quantization.utils.fp8_utils import (
-    apply_fp8_block_linear, check_aiter_fp8_linear_support,
+    W8A8BlockFp8LinearOp, check_aiter_fp8_linear_support,
     create_fp8_input_scale, create_fp8_scale_parameter,
     create_fp8_weight_parameter, maybe_post_process_fp8_weight_block,
     process_fp8_weight_block_strategy, process_fp8_weight_channel_strategy,
@@ -41,16 +41,30 @@ def __init__(self, weight_quant: QuantizationArgs,
         self.strategy = weight_quant.strategy
         self.out_dtype = torch.get_default_dtype()
         self.is_static_input_scheme = is_static_input_scheme
-        self.act_q_group_shape = GroupShape.PER_TENSOR \
-            if is_static_input_scheme else GroupShape.PER_TOKEN
-        self.fp8_linear = Fp8LinearOp(
-            act_quant_static=self.is_static_input_scheme,
-            act_quant_group_shape=self.act_q_group_shape)
 
         self.weight_block_size = self.weight_quant.block_structure
+        if self.weight_block_size is not None:
+            self.act_q_group_shape = GroupShape(1, self.weight_block_size[0])
+        else:
+            self.act_q_group_shape = GroupShape.PER_TENSOR \
+                if is_static_input_scheme else GroupShape.PER_TOKEN
+
         self.cutlass_block_fp8_supported = cutlass_block_fp8_supported()
         self.use_aiter_and_is_supported = check_aiter_fp8_linear_support()
 
+        if self.weight_block_size is not None:
+            assert not self.is_static_input_scheme
+            self.w8a8_block_fp8_linear = W8A8BlockFp8LinearOp(
+                weight_group_shape=GroupShape(*self.weight_block_size),
+                act_quant_group_shape=self.act_q_group_shape,
+                cutlass_block_fp8_supported=self.cutlass_block_fp8_supported,
+                use_aiter_and_is_supported=self.use_aiter_and_is_supported,
+            )
+        else:
+            self.fp8_linear = Fp8LinearOp(
+                act_quant_static=self.is_static_input_scheme,
+                act_quant_group_shape=self.act_q_group_shape)
+
     @classmethod
     def get_min_capability(cls) -> int:
         # lovelace and up
@@ -141,13 +155,14 @@ def apply_weights(self,
                       x: torch.Tensor,
                       bias: Optional[torch.Tensor] = None) -> torch.Tensor:
 
-        if layer.weight_block_size is not None:
-            return apply_fp8_block_linear(
-                layer,
+        if self.weight_block_size is not None:
+            return self.w8a8_block_fp8_linear.apply(
                 input=x,
+                weight=layer.weight,
+                weight_scale=layer.weight_scale,
+                input_scale=layer.input_scale,
                 bias=bias,
-                cutlass_block_fp8_supported=self.cutlass_block_fp8_supported,
-                use_aiter_and_is_supported=self.use_aiter_and_is_supported)
+            )
 
         return self.fp8_linear.apply(input=x,
                                      weight=layer.weight,
diff --git a/vllm/model_executor/layers/quantization/deepgemm.py b/vllm/model_executor/layers/quantization/deepgemm.py
index d26a932eddb2..c2b3ccf19fca 100644
--- a/vllm/model_executor/layers/quantization/deepgemm.py
+++ b/vllm/model_executor/layers/quantization/deepgemm.py
@@ -43,7 +43,7 @@ def prepare_block_fp8_matmul_inputs(
     return M, N, K, C
 
 
-def w8a8_block_fp8_matmul_deepgemm(
+def w8a8_deepgemm_block_scaled_mm(
     A: torch.Tensor,
     B: torch.Tensor,
     As: torch.Tensor,
@@ -59,7 +59,7 @@ def w8a8_block_fp8_matmul_deepgemm(
     return C
 
 
-def w8a8_block_fp8_matmul_deepgemm_fake(
+def w8a8_deepgemm_block_scaled_mm_fake(
     A: torch.Tensor,
     B: torch.Tensor,
     As: torch.Tensor,
@@ -73,9 +73,9 @@ def w8a8_block_fp8_matmul_deepgemm_fake(
 
 
 direct_register_custom_op(
-    op_name="w8a8_block_fp8_matmul_deepgemm",
-    op_func=w8a8_block_fp8_matmul_deepgemm,
+    op_name="w8a8_deepgemm_block_scaled_mm",
+    op_func=w8a8_deepgemm_block_scaled_mm,
     mutates_args=[],
-    fake_impl=w8a8_block_fp8_matmul_deepgemm_fake,
+    fake_impl=w8a8_deepgemm_block_scaled_mm_fake,
     dispatch_key=current_platform.dispatch_key,
 )
diff --git a/vllm/model_executor/layers/quantization/fp8.py b/vllm/model_executor/layers/quantization/fp8.py
index 2b24e052053c..c4951712baa7 100644
--- a/vllm/model_executor/layers/quantization/fp8.py
+++ b/vllm/model_executor/layers/quantization/fp8.py
@@ -31,7 +31,7 @@
     register_moe_scaling_factors, rotate_flashinfer_fp8_moe_weights,
     select_cutlass_fp8_gemm_impl, swap_w13_to_w31)
 from vllm.model_executor.layers.quantization.utils.fp8_utils import (
-    apply_fp8_block_linear, check_aiter_fp8_linear_support,
+    W8A8BlockFp8LinearOp, check_aiter_fp8_linear_support,
     create_fp8_input_scale, create_fp8_scale_parameter,
     create_fp8_weight_parameter, expert_weight_is_col_major,
     get_col_major_tma_aligned_tensor, maybe_post_process_fp8_weight_block,
@@ -234,15 +234,28 @@ def __init__(self, quant_config: Fp8Config):
         self.weight_block_size = self.quant_config.weight_block_size
         self.block_quant = self.weight_block_size is not None
         self.act_q_static = self.quant_config.activation_scheme == "static"
-        # Use per-token quantization for better perf if dynamic and cutlass
-        if not self.act_q_static and cutlass_fp8_supported():
-            self.act_q_group_shape = GroupShape.PER_TOKEN
+        if self.weight_block_size:
+            self.act_q_group_shape = GroupShape(1, self.weight_block_size[0])
         else:
-            self.act_q_group_shape = GroupShape.PER_TENSOR
+            # Use per-token quantization for better perf if dynamic and cutlass
+            if not self.act_q_static and cutlass_fp8_supported():
+                self.act_q_group_shape = GroupShape.PER_TOKEN
+            else:
+                self.act_q_group_shape = GroupShape.PER_TENSOR
 
-        self.fp8_linear = Fp8LinearOp(
-            act_quant_static=self.act_q_static,
-            act_quant_group_shape=self.act_q_group_shape)
+        if self.block_quant:
+            assert not self.act_q_static
+            assert self.weight_block_size is not None
+            self.w8a8_block_fp8_linear = W8A8BlockFp8LinearOp(
+                weight_group_shape=GroupShape(*self.weight_block_size),
+                act_quant_group_shape=self.act_q_group_shape,
+                cutlass_block_fp8_supported=self.cutlass_block_fp8_supported,
+                use_aiter_and_is_supported=self.use_aiter_and_is_supported,
+            )
+        else:
+            self.fp8_linear = Fp8LinearOp(
+                act_quant_static=self.act_q_static,
+                act_quant_group_shape=self.act_q_group_shape)
 
     def create_weights(
         self,
@@ -391,12 +404,15 @@ def apply(self,
                 bias=bias)
 
         if self.block_quant:
-            return apply_fp8_block_linear(
-                layer,
+            assert self.weight_block_size is not None
+
+            return self.w8a8_block_fp8_linear.apply(
                 input=x,
+                weight=layer.weight,
+                weight_scale=layer.weight_scale,
+                input_scale=layer.input_scale,
                 bias=bias,
-                cutlass_block_fp8_supported=self.cutlass_block_fp8_supported,
-                use_aiter_and_is_supported=self.use_aiter_and_is_supported)
+            )
 
         return self.fp8_linear.apply(input=x,
                                      weight=layer.weight,
diff --git a/vllm/model_executor/layers/quantization/input_quant_fp8.py b/vllm/model_executor/layers/quantization/input_quant_fp8.py
index 31182f40b48f..ece3e5817116 100644
--- a/vllm/model_executor/layers/quantization/input_quant_fp8.py
+++ b/vllm/model_executor/layers/quantization/input_quant_fp8.py
@@ -27,11 +27,14 @@ class QuantFP8(CustomOp):
     This CustomOp supports both static and dynamic quantization.
     """
 
-    def __init__(self,
-                 static: bool,
-                 group_shape: GroupShape,
-                 num_token_padding: Optional[int] = None,
-                 column_major_scales: bool = False):
+    def __init__(
+            self,
+            static: bool,
+            group_shape: GroupShape,
+            num_token_padding: Optional[int] = None,
+            column_major_scales: bool = False,
+            use_ue8m0: Optional[bool] = None,  # for Torch compile
+    ):
         """
         :param static: static or dynamic quantization
         :param group_shape: quantization group shape (PER_TOKEN, PER_TENSOR,
@@ -46,6 +49,7 @@ def __init__(self,
         self.group_shape = group_shape
         self.num_token_padding = num_token_padding
         self.column_major_scales = column_major_scales
+        self.use_ue8m0 = use_ue8m0
 
         self.is_group_quant = group_shape.is_per_group()
         if self.is_group_quant:
@@ -70,7 +74,8 @@ def forward_cuda(
                 x,
                 group_size=self.group_size,
                 column_major_scales=self.column_major_scales,
-                dtype=_FP8_DTYPE)
+                dtype=_FP8_DTYPE,
+                use_ue8m0=self.use_ue8m0)
 
         assert (scale is not None) == self.static
         assert scale_ub is None or (not self.static and self.group_shape
@@ -137,7 +142,10 @@ def _quantize_group_native(
 
         x_grouped = x.view(-1, num_groups, self.group_size)
         absmax = x_grouped.abs().max(dim=-1, keepdim=True)[0].float()
-        scales = (absmax / _FP8_MAX).clamp(min=_FP8_MIN_SCALING_FACTOR)
+        scales_raw = absmax / _FP8_MAX
+        if self.use_ue8m0:
+            scales_raw = torch.exp2(torch.ceil(torch.log2(scales_raw)))
+        scales = (scales_raw).clamp(min=_FP8_MIN_SCALING_FACTOR)
 
         x_scaled = x_grouped / scales
         x_quant = x_scaled.clamp(_FP8_MIN, _FP8_MAX).to(_FP8_DTYPE)
@@ -151,6 +159,6 @@ def _quantize_group_native(
         scales = scales.reshape(orig_shape[:-1] + (num_groups, ))
 
         if self.column_major_scales:
-            scales = scales.transpose(-2, -1).contiguous()
+            scales = scales.transpose(-2, -1).contiguous().transpose(-1, -2)
 
         return x_quant, scales
diff --git a/vllm/model_executor/layers/quantization/utils/fp8_utils.py b/vllm/model_executor/layers/quantization/utils/fp8_utils.py
index d1d87b7ba12e..2098086bf240 100644
--- a/vllm/model_executor/layers/quantization/utils/fp8_utils.py
+++ b/vllm/model_executor/layers/quantization/utils/fp8_utils.py
@@ -13,8 +13,9 @@
 import vllm.envs as envs
 from vllm import _custom_ops as ops
 from vllm.logger import init_logger
+from vllm.model_executor.layers.quantization.input_quant_fp8 import QuantFP8
 from vllm.model_executor.layers.quantization.utils.quant_utils import (
-    group_broadcast)
+    GroupShape, group_broadcast)
 from vllm.model_executor.layers.quantization.utils.w8a8_utils import (
     CUTLASS_BLOCK_FP8_SUPPORTED)
 from vllm.model_executor.parameter import (BlockQuantScaleParameter,
@@ -24,6 +25,7 @@
 from vllm.triton_utils import tl, triton
 from vllm.utils import cdiv, direct_register_custom_op
 from vllm.utils.deep_gemm import (is_deep_gemm_e8m0_used,
+                                  is_deep_gemm_supported,
                                   should_use_deepgemm_for_fp8_linear)
 
 logger = init_logger(__name__)
@@ -35,6 +37,8 @@ def is_fp8(x: Union[torch.dtype, torch.Tensor]) -> bool:
     return x == torch.float8_e4m3fn or x == torch.float8_e4m3fnuz
 
 
+# We need to pass in the is_hopper flag as argument because the function
+# current_platform.is_device_capability() is not supported by Torch compiler.
 def cutlass_scaled_mm(
     A: torch.Tensor,
     B: torch.Tensor,
@@ -42,15 +46,17 @@ def cutlass_scaled_mm(
     Bs: torch.Tensor,
     block_size: list[int],
     output_dtype: torch.dtype = torch.float16,
+    is_hopper: Optional[bool] = None,
 ) -> torch.Tensor:
+    if is_hopper is None:
+        is_hopper = current_platform.is_device_capability(90)
     return ops.cutlass_scaled_mm(
         A,
         B.T,
         out_dtype=output_dtype,
         scale_a=As,
         # SM90 block FP8 requires row-major scale_b, which we do ahead of time
-        scale_b=Bs if block_size is not None
-        and current_platform.is_device_capability(90) else Bs.T)
+        scale_b=Bs if block_size is not None and is_hopper else Bs.T)
 
 
 def rocm_aiter_gemm_w8a8_blockscale_impl(
@@ -98,122 +104,189 @@ def rocm_aiter_gemm_w8a8_blockscale_fake(
         aiter_per1x128_quant = get_hip_quant(rocm_aiter.QuantType.per_1x128)
 
 
-def dispatch_w8a8_blockscale_func(
-    use_cutlass: bool, use_aiter_and_is_supported: bool
-) -> Callable[[
-        torch.Tensor,
-        torch.Tensor,
-        torch.Tensor,
-        torch.Tensor,
-        list[int],
-        torch.dtype,
-], torch.Tensor]:
-    if use_cutlass:
-        return cutlass_scaled_mm
-    if (use_aiter_and_is_supported):
-        return torch.ops.vllm.rocm_aiter_gemm_w8a8_blockscale
-    return w8a8_block_fp8_matmul
+# TODO we should be able to change the type of block_size to GroupShape
+# after we resolve GroupShape compilation issue
+# https://github.com/vllm-project/vllm/issues/25270
+def _w8a8_triton_block_scaled_mm_func(
+    qx: torch.Tensor,
+    weight: torch.Tensor,
+    x_scale: torch.Tensor,
+    weight_scale: torch.Tensor,
+    block_size: list[int],
+    output_dtype: torch.dtype,
+) -> torch.Tensor:
+    return w8a8_triton_block_scaled_mm(qx, weight, x_scale, weight_scale,
+                                       block_size, output_dtype)
 
 
-# TODO fix ROCm->Triton custom path:
-#  https://github.com/vllm-project/vllm/issues/14397
-def apply_w8a8_block_fp8_linear(
-    input: torch.Tensor,
+def _w8a8_triton_block_scaled_mm_fake(
+    qx: torch.Tensor,
     weight: torch.Tensor,
-    block_size: list[int],
+    x_scale: torch.Tensor,
     weight_scale: torch.Tensor,
-    input_scale: Optional[torch.Tensor] = None,
-    bias: Optional[torch.Tensor] = None,
-    cutlass_block_fp8_supported: bool = CUTLASS_BLOCK_FP8_SUPPORTED,
-    use_aiter_and_is_supported: bool = False,
+    block_size: list[int],
+    output_dtype: torch.dtype,
 ) -> torch.Tensor:
-    assert input_scale is None
-    # View input as 2D matrix for fp8 methods
-    input_2d = input.view(-1, input.shape[-1])
-    output_shape = [*input.shape[:-1], weight.shape[0]]
-    output_dtype = input.dtype
+    return torch.empty((qx.size(0), weight.size(0)),
+                       dtype=output_dtype,
+                       device=qx.device)
+
 
-    if should_use_deepgemm_for_fp8_linear(output_dtype, weight):
+direct_register_custom_op(
+    "w8a8_triton_block_scaled_mm_func",
+    _w8a8_triton_block_scaled_mm_func,
+    mutates_args=[],
+    fake_impl=_w8a8_triton_block_scaled_mm_fake,
+    dispatch_key="CUDA",
+)
 
+
+# TODO fix ROCm->Triton custom path:
+#  https://github.com/vllm-project/vllm/issues/14397
+class W8A8BlockFp8LinearOp:
+    """
+    This class executes a Blocked FP8 linear layer using cutlass if supported
+    and torch.scaled_mm otherwise.
+    """
+
+    def __init__(
+        self,
+        weight_group_shape: GroupShape,
+        act_quant_group_shape: GroupShape,
+        cutlass_block_fp8_supported: bool = CUTLASS_BLOCK_FP8_SUPPORTED,
+        use_aiter_and_is_supported: bool = False,
+    ):
+        self.weight_group_shape = weight_group_shape
+        self.act_quant_group_shape = act_quant_group_shape
+        self.is_deep_gemm_supported = is_deep_gemm_supported()
+        self.is_hopper = current_platform.is_device_capability(90)
+
+        # Get the correct blockscale mul and input quant operations.
+        # We can't use _dispatch_w8a8_blockscale_op to figure out if we want
+        # to use deepgemm because we don't know the shape of weights (and
+        # whether deepgemm supports it) at the init time.
+        self.w8a8_blockscale_op, self.input_quant_op = \
+         self._dispatch_w8a8_blockscale_op(
+            cutlass_block_fp8_supported, use_aiter_and_is_supported)
+        self.deepgemm_input_quant_op = (QuantFP8(
+            False,
+            self.act_quant_group_shape,
+            column_major_scales=True,
+            use_ue8m0=is_deep_gemm_e8m0_used()) if self.is_deep_gemm_supported
+                                        else None)
+
+    def apply(
+        self,
+        input: torch.Tensor,
+        weight: torch.Tensor,
+        weight_scale: torch.Tensor,
+        input_scale: Optional[torch.Tensor] = None,
+        bias: Optional[torch.Tensor] = None,
+    ) -> torch.Tensor:
+        assert input_scale is None
+        # View input as 2D matrix for fp8 methods
         input_2d = input.view(-1, input.shape[-1])
         output_shape = [*input.shape[:-1], weight.shape[0]]
+        output_dtype = input.dtype
 
-        q_input, x_scale = per_token_group_quant_fp8(
-            input_2d,
-            block_size[1],
-            column_major_scales=True,
-        )
+        if should_use_deepgemm_for_fp8_linear(output_dtype, weight,
+                                              self.is_deep_gemm_supported):
+            output = self._run_deepgemm(input, weight, weight_scale)
+            if bias is not None:
+                output = output + bias
+            return output.to(dtype=input.dtype).view(*output_shape)
 
+        output = self.w8a8_blockscale_op(input_2d, weight, weight_scale)
+        if bias is not None:
+            output = output + bias
+        return output.to(dtype=input.dtype).view(*output_shape)
+
+    def _run_deepgemm(
+        self,
+        input_2d: torch.Tensor,
+        weight: torch.Tensor,
+        weight_scale: torch.Tensor,
+    ) -> torch.Tensor:
         # ensure DeepGEMM-backed custom op is registered before use
         import vllm.model_executor.layers.quantization.deepgemm  # noqa: F401
 
-        output = torch.ops.vllm.w8a8_block_fp8_matmul_deepgemm(
+        assert self.deepgemm_input_quant_op is not None
+        q_input, x_scale = self.deepgemm_input_quant_op(input_2d)
+        return torch.ops.vllm.w8a8_deepgemm_block_scaled_mm(
             q_input,
             weight,
             x_scale,
             weight_scale,
-            block_size,
-            output_dtype=output_dtype)
-        if bias is not None:
-            output += bias
-        return output.to(dtype=output_dtype).view(*output_shape)
-
-    w8a8_blockscale_func = dispatch_w8a8_blockscale_func(
-        cutlass_block_fp8_supported, use_aiter_and_is_supported)
-    if cutlass_block_fp8_supported:
-        num_pad = 0
-        if current_platform.is_device_capability(90):
-            # pad first dimension to be divisible by 4 due to
-            # cutlass blockwise gemm limitation for hopper
-            num_pad = 4 - (input_2d.shape[0] % 4)
-            if num_pad > 0:
-                input_2d = torch.nn.functional.pad(input_2d,
-                                                   (0, 0, 0, num_pad),
-                                                   "constant", 0)
-        q_input, x_scale = per_token_group_quant_fp8(input_2d,
-                                                     block_size[1],
-                                                     column_major_scales=True)
-        output = w8a8_blockscale_func(q_input, weight, x_scale, weight_scale,
-                                      block_size, input.dtype)
-        if num_pad > 0:
-            output = output[:-num_pad]
-    else:
-        if use_aiter_and_is_supported:
-            q_input, x_scale = aiter_per1x128_quant(
-                input_2d.contiguous(), quant_dtype=rocm_aiter.dtypes.fp8)
-        else:
-            q_input, x_scale = per_token_group_quant_fp8(
-                input_2d, block_size[1], column_major_scales=False)
-
-        output = w8a8_blockscale_func(q_input, weight, x_scale, weight_scale,
-                                      block_size, input.dtype)
-
-    if bias is not None:
-        output = output + bias
-    return output.to(dtype=input.dtype).view(*output_shape)
-
-
-def apply_w8a8_block_fp8_linear_fake(
-    input: torch.Tensor,
-    weight: torch.Tensor,
-    block_size: list[int],
-    weight_scale: torch.Tensor,
-    input_scale: Optional[torch.Tensor] = None,
-    bias: Optional[torch.Tensor] = None,
-    cutlass_block_fp8_supported: bool = CUTLASS_BLOCK_FP8_SUPPORTED,
-    use_aiter_and_is_supported: bool = False,
-) -> torch.Tensor:
-    output_shape = [*input.shape[:-1], weight.shape[0]]
-    return torch.empty(output_shape, dtype=input.dtype, device=input.device)
-
+            self.weight_group_shape,
+            output_dtype=input_2d.dtype)
 
-if not current_platform.is_cpu():
-    direct_register_custom_op(
-        op_name="apply_w8a8_block_fp8_linear",
-        op_func=apply_w8a8_block_fp8_linear,
-        mutates_args=[],
-        fake_impl=apply_w8a8_block_fp8_linear_fake,
-    )
+    def _run_cutlass(
+        self,
+        input_2d: torch.Tensor,
+        weight: torch.Tensor,
+        weight_scale: torch.Tensor,
+    ) -> torch.Tensor:
+        assert self.input_quant_op is not None
+        if self.is_hopper:
+            # We pad unconditionally (even if shape is already divisible by 4)
+            # to support dynamic shape for input_2d.shape[0] in torch.compile
+            x = torch.nn.functional.pad(input_2d,
+                                        (0, 0, 0, -input_2d.shape[0] % 4))
+        else:
+            x = input_2d
+
+        q_input, x_scale = self.input_quant_op(x)
+        output = cutlass_scaled_mm(q_input, weight, x_scale, weight_scale,
+                                   list(self.weight_group_shape),
+                                   input_2d.dtype, self.is_hopper)
+        output = output[0:input_2d.shape[0], ...]
+        return output
+
+    def _run_aiter(
+        self,
+        input_2d: torch.Tensor,
+        weight: torch.Tensor,
+        weight_scale: torch.Tensor,
+    ) -> torch.Tensor:
+        assert self.act_quant_group_shape == GroupShape(1, 128)
+        q_input, x_scale = aiter_per1x128_quant(
+            input_2d.contiguous(), quant_dtype=rocm_aiter.dtypes.fp8)
+        return torch.ops.vllm.rocm_aiter_gemm_w8a8_blockscale(
+            q_input, weight, x_scale, weight_scale, self.weight_group_shape,
+            input_2d.dtype)
+
+    def _run_triton(
+        self,
+        input_2d: torch.Tensor,
+        weight: torch.Tensor,
+        weight_scale: torch.Tensor,
+    ) -> torch.Tensor:
+        assert self.input_quant_op is not None
+        q_input, x_scale = self.input_quant_op(input_2d)
+        return torch.ops.vllm.w8a8_triton_block_scaled_mm_func(
+            q_input, weight, x_scale, weight_scale, self.weight_group_shape,
+            input_2d.dtype)
+
+    def _dispatch_w8a8_blockscale_op(
+        self,
+        use_cutlass: bool,
+        use_aiter_and_is_supported: bool,
+    ) -> tuple[Callable[[
+            torch.Tensor,
+            torch.Tensor,
+            torch.Tensor,
+    ], torch.Tensor], Optional[QuantFP8]]:
+        if use_cutlass:
+            return self._run_cutlass, (QuantFP8(False,
+                                                self.act_quant_group_shape,
+                                                column_major_scales=True,
+                                                use_ue8m0=False))
+        if use_aiter_and_is_supported:
+            return self._run_aiter, None
+        return self._run_triton, (QuantFP8(False,
+                                           self.act_quant_group_shape,
+                                           column_major_scales=False,
+                                           use_ue8m0=False))
 
 
 def input_to_float8(
@@ -465,7 +538,7 @@ def per_token_group_quant_fp8(
 
 
 @triton.jit
-def _w8a8_block_fp8_matmul(
+def _w8a8_triton_block_scaled_mm(
     # Pointers to inputs and output
     A,
     B,
@@ -590,7 +663,7 @@ def get_w8a8_block_fp8_configs(N: int, K: int, block_n: int,
     return None
 
 
-def w8a8_block_fp8_matmul(
+def w8a8_triton_block_scaled_mm(
     A: torch.Tensor,
     B: torch.Tensor,
     As: torch.Tensor,
@@ -650,7 +723,7 @@ def grid(META):
         return (triton.cdiv(M, META["BLOCK_SIZE_M"]) *
                 triton.cdiv(N, META["BLOCK_SIZE_N"]), )
 
-    _w8a8_block_fp8_matmul[grid](
+    _w8a8_triton_block_scaled_mm[grid](
         A,
         B,
         C,
@@ -997,25 +1070,6 @@ def maybe_post_process_fp8_weight_block(layer: torch.nn.Module,
             layer.weight_scale.data.T.contiguous(), requires_grad=False)
 
 
-def apply_fp8_block_linear(layer: torch.nn.Module, input: torch.Tensor,
-                           bias: Optional[torch.Tensor],
-                           cutlass_block_fp8_supported: bool,
-                           use_aiter_and_is_supported: bool) -> torch.Tensor:
-    """Apply block-wise FP8 linear operation."""
-    assert layer.weight_block_size is not None
-
-    return torch.ops.vllm.apply_w8a8_block_fp8_linear(
-        input=input,
-        weight=layer.weight,
-        block_size=layer.weight_block_size,
-        weight_scale=layer.weight_scale,
-        input_scale=layer.input_scale,
-        bias=bias,
-        cutlass_block_fp8_supported=cutlass_block_fp8_supported,
-        use_aiter_and_is_supported=use_aiter_and_is_supported,
-    )
-
-
 def expert_weight_is_col_major(x: torch.Tensor) -> bool:
     assert x.dim() == 3
     b, m, n = x.shape
diff --git a/vllm/utils/deep_gemm.py b/vllm/utils/deep_gemm.py
index 4083193d7650..2f533ca0639f 100644
--- a/vllm/utils/deep_gemm.py
+++ b/vllm/utils/deep_gemm.py
@@ -9,7 +9,7 @@
 import functools
 import importlib
 import os
-from typing import Any, Callable, NoReturn
+from typing import Any, Callable, NoReturn, Optional
 
 import torch
 
@@ -172,9 +172,13 @@ def calc_diff(x: torch.Tensor, y: torch.Tensor):
     return 1 - sim
 
 
-def should_use_deepgemm_for_fp8_linear(output_dtype: torch.dtype,
-                                       weight: torch.Tensor):
-    return (is_deep_gemm_supported() and output_dtype == torch.bfloat16
+def should_use_deepgemm_for_fp8_linear(
+        output_dtype: torch.dtype,
+        weight: torch.Tensor,
+        supports_deep_gemm: Optional[bool] = None):
+    if supports_deep_gemm is None:
+        supports_deep_gemm = is_deep_gemm_supported()
+    return (supports_deep_gemm and output_dtype == torch.bfloat16
             and weight.shape[0] % 128 == 0 and weight.shape[1] % 128 == 0)