diff --git a/.ci/docker/requirements.txt b/.ci/docker/requirements.txt
index 2321627e1..9bea6f9e0 100644
--- a/.ci/docker/requirements.txt
+++ b/.ci/docker/requirements.txt
@@ -6,3 +6,5 @@ sentencepiece
 tiktoken
 blobfile
 tabulate
+pwlf
+pulp
diff --git a/scripts/estimate/estimation.py b/scripts/estimate/estimation.py
index 09b1ce4f6..a05fde623 100644
--- a/scripts/estimate/estimation.py
+++ b/scripts/estimate/estimation.py
@@ -7,10 +7,18 @@
 import contextlib
 import gc
 import os
+from typing import Any, Set, Union
 
 import torch
+from torch import nn, optim
 from torch._guards import active_fake_mode
 from torch._subclasses.fake_tensor import FakeTensorMode
+from torch.distributed._tools.auto_sac import (
+    AutoSACResult,
+    get_auto_sac_policies,
+    get_module_name_dict,
+    SACAlgorithm,
+)
 from torch.distributed._tools.fsdp2_mem_tracker import FSDPMemTracker
 from torch.testing._internal.distributed.fake_pg import FakeStore
 
@@ -18,14 +26,21 @@
 from torchtitan.config_manager import JobConfig
 from torchtitan.datasets import build_tokenizer
 from torchtitan.float8 import Float8Handler
-from torchtitan.logging import init_logger, logger
+from torchtitan.logging import init_logger, logger, logging
 from torchtitan.models import model_name_to_cls, model_name_to_tokenizer, models_config
 from torchtitan.optimizer import build_lr_schedulers, build_optimizers
 from torchtitan.parallelisms import models_parallelize_fns, ParallelDims
 
 
-def estimate_memory(job_config: JobConfig):
-    init_logger()
+def estimate(job_config: JobConfig) -> Union[AutoSACResult, None]:
+    assert not (
+        job_config.memory_estimation.enabled and job_config.sac_estimation.enabled
+    ), "Enabling SAC estimation and FSDP memory estimation together is not permitted."
+    if job_config.memory_estimation.enabled:
+        init_logger()
+    else:
+        logging.disable()
+
     logger.info("Estimating memory usage...")
     gc.disable()
     gc.collect(1)
@@ -37,10 +52,9 @@ def estimate_memory(job_config: JobConfig):
     if (
         job_config.training.tensor_parallel_degree > 1
         or job_config.experimental.pipeline_parallel_degree > 1
+        or job_config.experimental.context_parallel_degree > 1
     ):
-        logger.info(
-            "Tensor parallelism and pipeline parallelism are not supported yet."
-        )
+        logger.info("Tensor, Context and Pipeline parallelism are not supported yet.")
         return
 
     # fake tensor doesn't work with fused rmsnorm
@@ -76,25 +90,12 @@ def estimate_memory(job_config: JobConfig):
     device = torch.device(f"cuda:{int(os.environ['LOCAL_RANK'])}")
     torch.cuda.set_device(device)
 
-    # init fake pg
-    store = FakeStore()
-    torch.distributed.init_process_group(
-        "fake", rank=int(os.environ["LOCAL_RANK"]), world_size=world_size, store=store
-    )
-
-    # build meshes
-    world_mesh = parallel_dims.build_mesh(device_type="cuda")
-
     if not parallel_dims.dp_enabled:
         logger.info("Data parallelism is not enabled. Skipping memory estimation.")
         return
 
     model_name = job_config.model.name
 
-    # build tokenizer
-    tokenizer_type = model_name_to_tokenizer[model_name]
-    tokenizer = build_tokenizer(tokenizer_type, job_config.model.tokenizer_path)
-
     train_context = utils.get_train_context(
         parallel_dims.loss_parallel_enabled,
         job_config.experimental.enable_compiled_autograd,
@@ -111,11 +112,28 @@ def loss_fn(pred, labels):
     model_config = models_config[model_name][job_config.model.flavor]
     # set the model configs from training inputs:
     # 1. norm type to decide which norm layer to use
-    # 2. vocab size from tokenizer
-    # 3. max_seq_len base on inputs
+    # 2. max_seq_len base on inputs
+    # 3. vocab size from tokenizer
+
     model_config.norm_type = job_config.model.norm_type
-    model_config.vocab_size = tokenizer.n_words
     model_config.max_seq_len = job_config.training.seq_len
+    model_config.vocab_size = 128256
+    if not job_config.sac_estimation.enabled:
+        # build tokenizer
+        tokenizer_type = model_name_to_tokenizer[model_name]
+        tokenizer = build_tokenizer(tokenizer_type, job_config.model.tokenizer_path)
+        model_config.vocab_size = tokenizer.n_words
+        # init fake pg
+        store = FakeStore()
+        torch.distributed.init_process_group(
+            "fake",
+            rank=int(os.environ["LOCAL_RANK"]),
+            world_size=world_size,
+            store=store,
+        )
+
+        # build meshes
+        world_mesh = parallel_dims.build_mesh(device_type="cuda")
 
     with FakeTensorMode() if not job_config.memory_estimation.disable_fake_mode else contextlib.nullcontext():
 
@@ -130,8 +148,11 @@ def loss_fn(pred, labels):
         # swap to Float8Linear based on float8 configs
         float8_handler.convert_to_float8_training(model)
 
-        # apply PT-D DP/TP parallelisms and activation checkpointing
-        models_parallelize_fns[model_name](model, world_mesh, parallel_dims, job_config)
+        if not job_config.sac_estimation.enabled:
+            # apply PT-D DP/TP parallelisms and activation checkpointing
+            models_parallelize_fns[model_name](
+                model, world_mesh, parallel_dims, job_config
+            )
 
         model.to_empty(device="cuda")
         if not active_fake_mode():
@@ -158,32 +179,74 @@ def loss_fn(pred, labels):
                 device="cuda",
             ),
         )
+
+        def train_step(models: nn.Module, optims: optim.Optimizer, batch: Any):
+            # train step
+            input_ids, labels = batch
+            with train_context():
+                pred = model(input_ids)
+                loss = loss_fn(pred, labels)
+                del pred
+                loss.backward()
+
+            # clip gradients
+            torch.nn.utils.clip_grad_norm_(
+                model.parameters(), job_config.training.max_norm, foreach=True
+            )
+            # sync float8 amaxes and scales
+            float8_handler.sync_float8_amax_and_scale_history(model)
+            # optimizer step
+            optimizers.step()
+            lr_schedulers.step()
+            # calculate float8 dynamic amax/scale for all-parameter for FSDP2
+            # it issues a single all-reduce for all parameters at once for better performance
+            float8_handler.precompute_float8_dynamic_scale_for_fsdp(model)
+            optimizers.zero_grad()
+
+        if job_config.sac_estimation.enabled:
+            logging.disable(logging.NOTSET)
+            gib = 1024**3
+            budget = float(job_config.activation_checkpoint.auto_sac_budget)
+            recommended_budget = (
+                0.85 * torch.cuda.get_device_properties(device).total_memory / gib
+            )
+            if budget > recommended_budget:
+                logger.warning(
+                    "It is recommended to set Auto-SAC memory budget to 85 percent of device memory.\n"
+                    "Current budget is %.2f GiB, reducing it to %.2f GiB.",
+                    budget,
+                    recommended_budget,
+                )
+                budget = recommended_budget
+
+            mod_fqns = get_module_name_dict(model)
+            fsdp_unit_fqns: Set[str] = set()
+            for transformer_block in model.layers.values():
+                fsdp_unit_fqns.add(mod_fqns[transformer_block])
+            fsdp_unit_fqns.add(mod_fqns[model])
+
+            sac_algorithm = SACAlgorithm(
+                job_config.activation_checkpoint.auto_sac_algorithm
+            )
+            auto_sac_result = get_auto_sac_policies(
+                train_step=train_step,
+                models=[model],
+                optimizers=optimizers.optimizers,
+                inputs=batch,
+                dev=device,
+                memory_budget=budget,
+                sac_algo=sac_algorithm,
+                shard_degree=parallel_dims.dp_shard,
+                fsdp_units=fsdp_unit_fqns,
+            )
+            return auto_sac_result
+
         fsdp_memtracker = FSDPMemTracker(mod=model, optm=optimizers.optimizers[0])
         fsdp_memtracker.track_inputs(batch)
 
         with fsdp_memtracker:
             for iter_idx in range(2):
-                input_ids, labels = batch
-                # train step
-                with train_context():
-                    pred = model(input_ids)
-                    loss = loss_fn(pred, labels)
-                    del pred
-                    loss.backward()
-
-                # clip gradients
-                torch.nn.utils.clip_grad_norm_(
-                    model.parameters(), job_config.training.max_norm, foreach=True
-                )
-                # sync float8 amaxes and scales
-                float8_handler.sync_float8_amax_and_scale_history(model)
-                # optimizer step
-                optimizers.step()
-                lr_schedulers.step()
-                # calculate float8 dynamic amax/scale for all-parameter for FSDP2
-                # it issues a single all-reduce for all parameters at once for better performance
-                float8_handler.precompute_float8_dynamic_scale_for_fsdp(model)
-                optimizers.zero_grad()
+                train_step([model], optimizers.optimizers, batch)
                 print(f"Peak Memory at iter: {iter_idx}")
                 fsdp_memtracker.display_snapshot("peak", units="MiB", tabulate=True)
                 if iter_idx == 0:
@@ -214,7 +277,7 @@ def loss_fn(pred, labels):
     config = JobConfig()
     config.parse_args()
     try:
-        estimate_memory(config)
+        estimate(config)
     finally:
         if torch.distributed.is_initialized():
             torch.distributed.destroy_process_group()
diff --git a/scripts/generate/test_generate.py b/scripts/generate/test_generate.py
index b069e8bdd..54e01b429 100644
--- a/scripts/generate/test_generate.py
+++ b/scripts/generate/test_generate.py
@@ -26,14 +26,14 @@
 )
 
 from torchtitan import utils
-from torchtitan.utils import device_module, device_type
 
 from torchtitan.config_manager import JobConfig
 from torchtitan.datasets import build_tokenizer
 from torchtitan.logging import init_logger, logger
-from torchtitan.metrics import build_device_memory_monitor, build_metric_logger
+from torchtitan.metrics import build_device_memory_monitor
 from torchtitan.models import model_name_to_cls, model_name_to_tokenizer, models_config
 from torchtitan.parallelisms import ParallelDims
+from torchtitan.utils import device_module, device_type
 
 # support running w/o installing as package
 wd = Path(__file__).parent.parent.resolve()
@@ -143,7 +143,8 @@ def test_generate(
         # Build world mesh for parallelism
         world_mesh = parallel_dims.build_mesh(device_type=device_type)
 
-        # apply_tp (with Sequence Parallel) on unevenly sharded sequences would require https://github.com/pytorch/torchtitan/pull/686
+        # apply_tp (with Sequence Parallel) on unevenly sharded sequences would require
+        #  https://github.com/pytorch/torchtitan/pull/686
         apply_tp_minus_sp(model, world_mesh["tp"])
 
     # materalize model
diff --git a/torchtitan/config_manager.py b/torchtitan/config_manager.py
index 814bd80fc..01045626f 100644
--- a/torchtitan/config_manager.py
+++ b/torchtitan/config_manager.py
@@ -479,7 +479,7 @@ def __init__(self):
             "--activation_checkpoint.mode",
             type=str,
             default="selective",
-            help="Type of activation checkpointing to use ['none', 'full', 'selective']",
+            help="Type of activation checkpointing to use ['none', 'full', 'selective', 'auto']",
         )
         self.parser.add_argument(
             "--activation_checkpoint.selective_ac_option",
@@ -490,6 +490,25 @@ def __init__(self):
                 'int' (e.g., 2) for every nth layer, or 'op' for op level ac.
             """,
         )
+        self.parser.add_argument(
+            "--activation_checkpoint.auto_sac_budget",
+            type=str,
+            default="65.0",
+            help="""
+                Auto-SAC Memory Budget in GiB.
+                Recommended to set 85 percent of total device memory.
+            """,
+        )
+        self.parser.add_argument(
+            "--activation_checkpoint.auto_sac_algorithm",
+            type=str,
+            default="optimal",
+            choices=["greedy", "optimal"],
+            help="""
+                Algorithm to use for determining SAC policies.
+                `greedy` runs in linear time, while `optimal` solves an ILP.
+            """,
+        )
 
         # float8 configs
         self.parser.add_argument(
@@ -570,6 +589,13 @@ def __init__(self):
             action="store_true",
         )
 
+        self.parser.add_argument(
+            "--sac_estimation.enabled",
+            help="Whether to calculate SAC (Selective Activation Checkpointing) policies",
+            default=False,
+            action="store_true",
+        )
+
     def parse_args(self, args_list: list = sys.argv[1:]):
         args, cmd_args = self.parse_args_from_command_line(args_list)
         config_file = getattr(args, "job.config_file", None)
diff --git a/torchtitan/parallelisms/parallelize_llama.py b/torchtitan/parallelisms/parallelize_llama.py
index 4d4c60bc0..c0945c286 100644
--- a/torchtitan/parallelisms/parallelize_llama.py
+++ b/torchtitan/parallelisms/parallelize_llama.py
@@ -8,6 +8,7 @@
 # training techniques (e.g. activation checkpointing and compile) to the Llama model.
 
 from collections import defaultdict
+from copy import deepcopy
 
 import torch
 import torch.nn as nn
@@ -20,6 +21,7 @@
 )
 from torch.distributed._composable.replicate import replicate
 from torch.distributed._tensor import Replicate, Shard
+from torch.distributed._tools.auto_sac import apply_auto_sac_policies
 from torch.distributed.algorithms._checkpoint.checkpoint_wrapper import (
     checkpoint_wrapper as ptd_checkpoint_wrapper,
 )
@@ -66,7 +68,13 @@ def parallelize_llama(
         )
 
     if job_config.activation_checkpoint.mode != "none":
-        apply_ac(model, job_config.activation_checkpoint)
+        if job_config.activation_checkpoint.mode == "auto":
+            if not apply_auto_sac(model, job_config):
+                logger.info("Auto-SAC failed, falling back to full AC mode.")
+                job_config.activation_checkpoint.mode = "full"
+                apply_ac(model, job_config.activation_checkpoint)
+        else:
+            apply_ac(model, job_config.activation_checkpoint)
 
     # turn on per-TransformerBlock compile after AC wrapping and before FSDP
     if job_config.training.compile:
@@ -314,6 +322,41 @@ def apply_ac(model: nn.Module, ac_config):
     logger.info(f"Applied {ac_config.mode} activation checkpointing to the model")
 
 
+def apply_auto_sac(model: nn.Module, job_config: JobConfig) -> bool:
+    if (
+        job_config.training.tensor_parallel_degree > 1
+        or job_config.experimental.pipeline_parallel_degree > 1
+        or job_config.experimental.context_parallel_degree > 1
+        or job_config.training.enable_cpu_offload
+    ):
+        logger.info(
+            "Tensor, Context and Pipeline parallelism or FSDP with CPU Offload option"
+            " are not supported yet with Auto-SAC."
+        )
+        return False
+    est_job_config = deepcopy(job_config)
+    est_job_config.memory_estimation.disable_fake_mode = False
+    est_job_config.memory_estimation.enabled = False
+    est_job_config.sac_estimation.enabled = True
+    est_job_config.training.compile = False
+    est_job_config.experimental.enable_compiled_autograd = False
+    if (
+        est_job_config.model.norm_type == "compiled_rmsnorm"
+        or est_job_config.model.norm_type == "fused_rmsnorm"
+    ):
+        est_job_config.model.norm_type = "rmsnorm"
+    from scripts.estimate.estimation import estimate
+
+    auto_sac_result = estimate(est_job_config)
+    assert auto_sac_result is not None
+    if auto_sac_result.peak_mem == -1:
+        return False
+    apply_auto_sac_policies(
+        model, auto_sac_result.sac_policies, preserve_rng_state=False
+    )
+    return True
+
+
 def apply_compile(model: nn.Module):
     """
     Apply torch.compile to each TransformerBlock, which makes compilation efficient due to