diff --git a/test/float8/test_utils.py b/test/float8/test_utils.py
new file mode 100644
index 0000000000..34b07d502e
--- /dev/null
+++ b/test/float8/test_utils.py
@@ -0,0 +1,35 @@
+import pytest
+import torch
+
+from torchao.float8.float8_utils import _round_down_to_power_of_2
+
+
+@pytest.mark.parametrize(
+    "input_shape",
+    [
+        (1,),
+        (2, 3),
+        (8, 2048, 4, 1024),
+    ],
+)
+@pytest.mark.parametrize(
+    "multiplier",
+    [
+        1.0,
+        2.5,
+        10.0,
+    ],
+)
+def test_round_down_to_power_of_2(input_shape: tuple[int], multiplier: int):
+    input_tensor = torch.rand(*input_shape, dtype=torch.float32) * multiplier
+    expected_output = torch.exp2(torch.floor(torch.log2(input_tensor)))
+    result = _round_down_to_power_of_2(input_tensor)
+    assert torch.equal(
+        result, expected_output
+    ), f"expected {expected_output}, but got {result}"
+
+
+def test_non_float32_input():
+    non_float32_tensor = torch.tensor([3.0], dtype=torch.float64)
+    with pytest.raises(AssertionError, match="input must be float32 tensor"):
+        _round_down_to_power_of_2(non_float32_tensor)
diff --git a/torchao/float8/float8_utils.py b/torchao/float8/float8_utils.py
index bdb08bbb01..a7002516b8 100644
--- a/torchao/float8/float8_utils.py
+++ b/torchao/float8/float8_utils.py
@@ -49,10 +49,7 @@ def amax_to_scale(
     else:
         raise ValueError(f"Unsupported float8_dtype: {float8_dtype}")
     if round_scales_to_power_of_2:
-        # rounds down to the nearest power of 2
-        res = res.view(torch.int32)
-        res = (res >> 23) << 23
-        res = res.view(torch.float32)
+        res = _round_down_to_power_of_2(res)
     return res
 
 
@@ -286,3 +283,12 @@ def config_has_stateful_scaling(config: Float8LinearConfig) -> bool:
         or config.cast_config_weight.scaling_type != ScalingType.DYNAMIC
         or config.cast_config_grad_output.scaling_type != ScalingType.DYNAMIC
     )
+
+
+def _round_down_to_power_of_2(x: torch.Tensor) -> torch.Tensor:
+    assert x.dtype == torch.float32, "input must be float32 tensor"
+    # rounds down to the nearest power of 2
+    x = x.view(torch.int32)
+    x = (x >> 23) << 23
+    x = x.view(torch.float32)
+    return x