diff --git a/transformer_engine/pytorch/module/grouped_linear.py b/transformer_engine/pytorch/module/grouped_linear.py
index c1d45511df..ac304d3379 100644
--- a/transformer_engine/pytorch/module/grouped_linear.py
+++ b/transformer_engine/pytorch/module/grouped_linear.py
@@ -16,7 +16,10 @@
 import transformer_engine_torch as tex
 
 from transformer_engine.common.recipe import Recipe
-from transformer_engine.pytorch.tensor.grouped_tensor import GroupedTensor
+from transformer_engine.pytorch.tensor.grouped_tensor import (
+    GroupedTensor,
+    GroupedTensorStorage,
+)
 from .base import (
     get_dummy_wgrad,
     quantize_weight,
@@ -135,9 +138,9 @@ def _make_grouped_tensor(
         base_split_offsets: torch.Tensor,
         last_dim: int,
         dtype: torch.dtype,
-    ) -> GroupedTensor:
-        """Wrap a packed 2D buffer as a varying-first-dimension GroupedTensor."""
-        return GroupedTensor(
+    ) -> GroupedTensorStorage:
+        """Wrap a packed 2D buffer as a varying-first-dimension GroupedTensorStorage."""
+        return GroupedTensorStorage(
             shape=(data.size(0), last_dim),
             dtype=dtype,
             num_tensors=num_gemms,
@@ -154,13 +157,13 @@ def _make_grouped_bias(
         num_gemms: int,
         out_features: int,
         dtype: torch.dtype,
-    ) -> GroupedTensor:
+    ) -> GroupedTensorStorage:
         """Pack per-GEMM biases into the grouped GEMM bias format."""
         bias_data = torch.stack(
             [_GroupedLinear._maybe_dequantize(bias, dtype) for bias in biases],
             dim=0,
         ).contiguous()
-        return GroupedTensor(
+        return GroupedTensorStorage(
             shape=(num_gemms, out_features),
             dtype=dtype,
             num_tensors=num_gemms,
diff --git a/transformer_engine/pytorch/ops/basic/basic_linear.py b/transformer_engine/pytorch/ops/basic/basic_linear.py
index 95e0440303..6b17d66fcd 100644
--- a/transformer_engine/pytorch/ops/basic/basic_linear.py
+++ b/transformer_engine/pytorch/ops/basic/basic_linear.py
@@ -1050,6 +1050,9 @@ def op_forward(
                 saved_input = x_local
                 saved_weight = w
             if is_cpu_offload_enabled():
+                # No special CPU offloading logic is needed for weights. saved_weight is
+                # either self.weight (nn.Parameter, auto-excluded from offload) or a
+                # workspace freshly created each forward pass.
                 mark_activation_offload(saved_input)
             ctx.save_for_backward(saved_input, saved_weight)
             ctx.with_quantized_compute = with_quantized_compute and backward_override is None
diff --git a/transformer_engine/pytorch/ops/basic/grouped_linear.py b/transformer_engine/pytorch/ops/basic/grouped_linear.py
index 521ee59fa0..73e328c9d1 100644
--- a/transformer_engine/pytorch/ops/basic/grouped_linear.py
+++ b/transformer_engine/pytorch/ops/basic/grouped_linear.py
@@ -23,6 +23,7 @@
     _2X_ACC_DGRAD,
     _2X_ACC_WGRAD,
 )
+from ...cpu_offload import is_cpu_offload_enabled, mark_activation_offload, start_offload
 from ...quantization import FP8GlobalStateManager, QuantizerRole, Recipe
 from ...quantized_tensor import QuantizedTensorStorage
 from ...tensor import MXFP8Quantizer, MXFP8Tensor, Quantizer
@@ -783,7 +784,7 @@ def _get_grouped_weight_for_gemm(
         columnwise_usage: bool,
         with_quantized_compute: bool,
         dtype: torch.dtype,
-    ) -> GroupedTensor:
+    ) -> GroupedTensorStorage:
         """Prepare weights for ``general_grouped_gemm_for_grouped_tensor``.
         Supports MXFP8/BF16/FP16 compute paths.
         """
@@ -800,7 +801,7 @@ def _get_grouped_weight_for_gemm(
                 weight_parts = weight_param.split_into_quantized_tensors()
             dequantized = [maybe_dequantize(w, dtype) for w in weight_parts]
             weight_data = torch.stack(dequantized, dim=0).contiguous()
-            return GroupedTensor(
+            return GroupedTensorStorage(
                 shape=(num_groups * self.out_features, self.in_features),
                 dtype=dtype,
                 num_tensors=num_groups,
@@ -814,7 +815,7 @@ def _get_grouped_weight_for_gemm(
             if weight_param.rowwise_data.dtype == dtype:
                 return weight_param
             weight_data = weight_param.rowwise_data.to(dtype=dtype)
-            return GroupedTensor(
+            return GroupedTensorStorage(
                 shape=(num_groups * self.out_features, self.in_features),
                 dtype=dtype,
                 num_tensors=num_groups,
@@ -866,8 +867,8 @@ def _get_weight_tensors(self) -> list[torch.nn.Parameter]:
     def _get_grouped_bias_for_gemm(
         self,
         dtype: torch.dtype,
-    ) -> Optional[torch.Tensor]:
-        """Build a uniform GroupedTensor of per-group biases for the cublas
+    ) -> Optional[GroupedTensorStorage]:
+        """Build a uniform GroupedTensorStorage of per-group biases for the cublas
         grouped GEMM.
 
         Each group expects a (1, out_features) bias vector. Returns ``None``
@@ -888,7 +889,7 @@ def _get_grouped_bias_for_gemm(
             ]
             bias_data = torch.stack(bias_list, dim=0).contiguous()
 
-        return GroupedTensor(
+        return GroupedTensorStorage(
             shape=(num_groups, self.out_features),
             dtype=dtype,
             num_tensors=num_groups,
@@ -1026,6 +1027,25 @@ def fuser_forward_save_ctx(
             return
 
         ctx = basic_op_ctxs[0]
+
+        # Activation CPU offloading
+        # Note: No special logic is needed for weights. They are
+        # either nn.Parameter (auto-excluded from offload) or are
+        # temporary workspaces freshly created in each forward pass.
+        if is_cpu_offload_enabled():
+            saved = tensors_to_save[0]
+            offset = 4 if self._scale_bias else 3
+            if use_grouped_tensor_path:
+                # Layout: [split_sizes, base_split_offsets, split_points, (scales?), grouped_x, *weights]
+                grouped_x = saved[offset]
+                if grouped_x is not None:
+                    mark_activation_offload(grouped_x)
+            else:
+                # Layout: [split_sizes, None, None, (scales?), *xs, *ws]
+                live_xs = [t for t in saved[offset : offset + self.num_groups] if t is not None]
+                if live_xs:
+                    mark_activation_offload(*live_xs)
+
         ctx.save_for_backward(*tensors_to_save[0])
 
         num_groups = self.num_groups
@@ -1110,6 +1130,10 @@ def _fuser_forward_split_quantize(
             xs = tex.split_quantize(x, split_sizes_int, input_quantizers)
         else:
             xs = torch.split(x, split_sizes_int)
+        if is_cpu_offload_enabled():
+            live_xs = [t for t in xs if t is not None]
+            if live_xs:
+                start_offload(*live_xs)
 
         # Allocate output tensor
         in_shape = list(input_.size())
@@ -1205,7 +1229,7 @@ def _fuser_forward_grouped_tensor(
             grouped_x = tex.group_quantize(x, input_quantizer, num_groups, split_sizes)
         else:
             # No quantize: wrap the contiguous high-precision buffer.
-            grouped_x = GroupedTensor(
+            grouped_x = GroupedTensorStorage(
                 shape=(total_tokens, self.in_features),
                 dtype=dtype,
                 num_tensors=num_groups,
@@ -1215,6 +1239,9 @@ def _fuser_forward_grouped_tensor(
                 tensor_offsets=base_split_offsets * self.in_features,
             )
 
+        if is_cpu_offload_enabled() and grouped_x is not None:
+            start_offload(grouped_x)
+
         # Build the weight GroupedTensor / list.
         if self.single_grouped_weight:
             # GroupedTensor
@@ -1238,7 +1265,7 @@ def _fuser_forward_grouped_tensor(
         # Allocate output buffer and wrap as a GroupedTensor view.
         out_shape = original_shape[:-1] + [self.out_features]
         out = torch.empty(out_shape, dtype=dtype, device=device)
-        grouped_out = GroupedTensor(
+        grouped_out = GroupedTensorStorage(
             shape=(total_tokens, self.out_features),
             dtype=dtype,
             num_tensors=num_groups,
@@ -1566,7 +1593,7 @@ def _fuser_backward_grouped_tensor(
         else:
             dy_2d = maybe_dequantize(dy_2d, dtype)
             # Wrap BF16/FP16 buffer as a GroupedTensor for grouped gemm
-            grouped_dy = GroupedTensor(
+            grouped_dy = GroupedTensorStorage(
                 shape=(total_tokens, self.out_features),
                 dtype=dtype,
                 num_tensors=num_groups,
@@ -1602,7 +1629,7 @@ def _fuser_backward_grouped_tensor(
         if ctx.input_requires_grad:
             grad_input_shape = list(grad_output.size())[:-1] + [self.in_features]
             grad_input = torch.empty(grad_input_shape, dtype=dtype, device=device)
-            grouped_grad_input = GroupedTensor(
+            grouped_grad_input = GroupedTensorStorage(
                 shape=(total_tokens, self.in_features),
                 dtype=dtype,
                 num_tensors=num_groups,
diff --git a/transformer_engine/pytorch/ops/fused/forward_grouped_mlp.py b/transformer_engine/pytorch/ops/fused/forward_grouped_mlp.py
index ece670a539..f03ccc15b5 100644
--- a/transformer_engine/pytorch/ops/fused/forward_grouped_mlp.py
+++ b/transformer_engine/pytorch/ops/fused/forward_grouped_mlp.py
@@ -13,6 +13,7 @@
 import torch
 
 import transformer_engine_torch as tex
+from ...cpu_offload import is_cpu_offload_enabled, mark_activation_offload, start_offload
 from ...cpp_extensions import general_gemm, general_grouped_gemm_for_grouped_tensor
 from ...quantization import Recipe
 from ...tensor import NVFP4Quantizer, NVFP4Tensor, Quantizer
@@ -23,6 +24,7 @@
     mark_grouped_tensor,
 )
 from ...tensor.grouped_tensor import GroupedTensor
+from ...tensor.storage.grouped_tensor_storage import GroupedTensorStorage
 from ...tensor.mxfp8_tensor import MXFP8Quantizer
 from ...constants import MXFP8_BLOCK_SCALING_SIZE, NVFP4_BLOCK_SCALING_SIZE
 from ..basic import GroupedLinear, ScaledSReLU, ScaledClampedQGeGLU
@@ -316,6 +318,7 @@ def fuser_forward(
         # Group-quantize input tensor and convert dtypes if needed
         fc1_input_quantizer.set_usage(rowwise=True, columnwise=weight_requires_grad)
         fc1_input_quantizer.optimize_for_gemm = True
+        fc1_input_quantizer.internal = True
         input_quantizer = getattr(input_, "quantizer", None)
         if isinstance(input_, GroupedTensor) and (
             isinstance(fc1_input_quantizer, MXFP8Quantizer)
@@ -323,7 +326,36 @@ def fuser_forward(
             or isinstance(fc1_input_quantizer, NVFP4Quantizer)
             and isinstance(input_quantizer, NVFP4Quantizer)
         ):
-            grouped_fc1_x = input_
+            # GroupedTensor is a torch.Tensor subclass, so the CPU offload
+            # infrastructure's prepare_for_saving treats it as a plain tensor
+            # and does not decompose it into its component data tensors.  By
+            # repacking into a GroupedTensorStorage (not a torch.Tensor), we
+            # ensure the fuser's prepare_for_saving call correctly decomposes
+            # the activation before save_for_backward.
+            grouped_fc1_x = GroupedTensorStorage(
+                shape=input_.logical_shape,
+                dtype=input_.fake_dtype,
+                num_tensors=input_.num_tensors,
+                shapes=input_.tensor_shapes,
+                quantizer=input_.quantizer,
+                data=input_.rowwise_data,
+                columnwise_data=input_.columnwise_data,
+                scale_inv=input_.scale_inv,
+                columnwise_scale_inv=input_.columnwise_scale_inv,
+                amax=input_.amax,
+                columnwise_amax=input_.columnwise_amax,
+                scale=input_.scale,
+                first_dims=input_.first_dims,
+                last_dims=input_.last_dims,
+                tensor_offsets=input_.tensor_offsets,
+                offsets=input_.offsets,
+                scale_inv_offsets=input_.scale_inv_offsets,
+                columnwise_scale_inv_offsets=input_.columnwise_scale_inv_offsets,
+                with_gemm_swizzled_scales=input_._with_gemm_swizzled_scales,
+                row_scaled_nvfp4=input_.row_scaled_nvfp4,
+                nvfp4_use_4over6=input_.nvfp4_use_4over6,
+                nvfp4_e4m3_max=input_.nvfp4_e4m3_max,
+            )
         else:
             fc1_x = maybe_dequantize(input_, dtype)
             grouped_fc1_x = _group_quantize_for_grouped_mlp(
@@ -587,7 +619,7 @@ def fuser_forward(
                     else:
                         fc2_out_buf = fc2_out_buf + token_bias
             else:
-                fc2_out_grouped = GroupedTensor(
+                fc2_out_grouped = GroupedTensorStorage(
                     shape=(in_shape[0], fc2_weight_shape[0]),
                     dtype=dtype,
                     num_tensors=num_groups,
@@ -616,7 +648,7 @@ def fuser_forward(
             fc2_in_col_scale = fc1_kernel_out["sfd_col_tensor"]
             fc2_in_col_scale = fc2_in_col_scale.permute(5, 2, 4, 0, 1, 3)
 
-            grouped_fc2_x = GroupedTensor(
+            grouped_fc2_x = GroupedTensorStorage(
                 shape=(in_shape[0], fc2_weight_shape[1]),
                 dtype=dtype,
                 num_tensors=num_groups,
@@ -695,6 +727,7 @@ def fuser_forward(
         if requires_grad:
             mark_grouped_tensor(grouped_fc1_x, activation_in, scales, grouped_fc2_x)
             activation_op = self.basic_ops[1]
+            cpu_offloading = is_cpu_offload_enabled()
             activation_is_srelu = isinstance(activation_op, ScaledSReLU)
             activation_recompute_in_mlp = bool(
                 getattr(activation_op, "activation_recompute_in_mlp", False)
@@ -716,6 +749,13 @@ def fuser_forward(
                         grouped_fc_x.rowwise_data = None
                         grouped_fc_x.scale_inv = None
 
+            if cpu_offloading:
+                activation_tensors = [
+                    t for t in (grouped_fc1_x, activation_in, saved_grouped_fc2_x) if t is not None
+                ]
+                start_offload(*activation_tensors)
+                mark_activation_offload(*activation_tensors)
+
             # FC1 saved-tensor layout.
             #   [split_sizes, base_split_offsets, split_points,
             #    grouped_fc1_x, *fc1_weight_tensors]
@@ -755,7 +795,7 @@ def fuser_forward(
             fc2_weight_tensors = (
                 [grouped_fc2_weight] if fc2_op.single_grouped_weight else grouped_fc2_weight
             )
-            fc2_saved: list[Optional[torch.Tensor]] = [
+            fc2_saved: list[Optional[torch.Tensor | GroupedTensorStorage]] = [
                 split_sizes,
                 base_split_offsets,
                 split_points,
diff --git a/transformer_engine/pytorch/tensor/storage/grouped_tensor_storage.py b/transformer_engine/pytorch/tensor/storage/grouped_tensor_storage.py
index 438e124021..c112634024 100644
--- a/transformer_engine/pytorch/tensor/storage/grouped_tensor_storage.py
+++ b/transformer_engine/pytorch/tensor/storage/grouped_tensor_storage.py
@@ -387,6 +387,21 @@ def restore_from_saved(
         self.tensor_offsets = tensors[9]
         return tensors[10:]
 
+    def get_data_tensors(self):
+        """Get tensor fields that may be saved or offloaded."""
+        return (
+            self.rowwise_data,
+            self.columnwise_data,
+            self.scale_inv,
+            self.columnwise_scale_inv,
+            self.amax,
+            self.columnwise_amax,
+            self.scale,
+            self.first_dims,
+            self.last_dims,
+            self.tensor_offsets,
+        )
+
     def clear(self) -> None:
         """
         Reset tensor data and clear all buffers.