diff --git a/.gitignore b/.gitignore
index 7c728849..01041ab7 100644
--- a/.gitignore
+++ b/.gitignore
@@ -28,4 +28,6 @@ results/
 *.slurm
 *.arrow
 /shards/*
-*.png
\ No newline at end of file
+*.png
+
+env/
\ No newline at end of file
diff --git a/models/config.py b/models/config.py
index 08f74dbb..2db5dce7 100644
--- a/models/config.py
+++ b/models/config.py
@@ -74,4 +74,30 @@ class TrainConfig:
     use_lmms_eval: bool = True # Use lmms-eval for evaluation
     lmms_eval_tasks: str = 'mmstar,mmmu,ocrbench,textvqa' # Pass additional task as one string, seperated by commas without spaces (e.g. 'mmstar,mmmu,ocrbench')
     lmms_eval_limit: int = 2000
-    lmms_eval_batch_size: int = 128
\ No newline at end of file
+    lmms_eval_batch_size: int = 128
+
+    # LoRA Configuration
+    use_lora: bool = True
+    lora_rank: int = 16
+    lora_alpha: int = 32
+    lora_dropout: float = 0.1
+    lora_target_modules: list[str] = field(default_factory=lambda: [
+        # Vision Transformer
+        "vision_encoder.blocks.*.attn.qkv_proj",
+        "vision_encoder.blocks.*.attn.out_proj", 
+        "vision_encoder.blocks.*.mlp.fc1",
+        "vision_encoder.blocks.*.mlp.fc2",
+        
+        # Language Model  
+        "decoder.blocks.*.attn.q_proj",
+        "decoder.blocks.*.attn.k_proj",
+        "decoder.blocks.*.attn.v_proj", 
+        "decoder.blocks.*.attn.out_proj",
+        "decoder.blocks.*.mlp.gate_proj",
+        "decoder.blocks.*.mlp.up_proj",
+        "decoder.blocks.*.mlp.down_proj",
+        "decoder.head",
+        
+        # Modality Projector
+        "MP.proj",
+    ])
\ No newline at end of file
diff --git a/models/vision_language_model.py b/models/vision_language_model.py
index f22de5cc..262500d7 100644
--- a/models/vision_language_model.py
+++ b/models/vision_language_model.py
@@ -33,6 +33,39 @@ def __init__(self, cfg: VLMConfig, load_backbone=True):
         self.load_backbone = load_backbone
         self.tokenizer = get_tokenizer(cfg.lm_tokenizer, cfg.vlm_extra_tokens, cfg.lm_chat_template)
 
+        # Add config attribute for PEFT compatibility
+        self.config = self._create_hf_compatible_config()
+
+    def _create_hf_compatible_config(self):
+        """Create a minimal HuggingFace-compatible config for PEFT"""
+        
+        class HFCompatibleConfig:
+            """A config class that behaves like both an object and a dictionary for PEFT compatibility"""
+            def __init__(self, cfg):
+                self.model_type = "vision_language_model"  # Custom model type
+                self.vocab_size = cfg.lm_vocab_size
+                self.hidden_size = cfg.lm_hidden_dim
+                self.num_hidden_layers = cfg.lm_n_blocks
+                self.num_attention_heads = cfg.lm_n_heads
+                self.intermediate_size = cfg.lm_inter_dim
+                self.max_position_embeddings = cfg.lm_max_position_embeddings
+                self.rms_norm_eps = cfg.lm_rms_eps
+                self.tie_word_embeddings = cfg.lm_tie_weights
+                
+            def get(self, key, default=None):
+                """Dictionary-like get method for PEFT compatibility"""
+                return getattr(self, key, default)
+                
+            def __getitem__(self, key):
+                """Dictionary-like access for PEFT compatibility"""
+                return getattr(self, key)
+                
+            def __contains__(self, key):
+                """Dictionary-like 'in' operator for PEFT compatibility"""
+                return hasattr(self, key)
+        
+        return HFCompatibleConfig(self.cfg)
+
     def _replace_img_tokens_with_embd(self, input_ids, token_embd, image_embd):
         """
         Replace every image-token placeholder in `input_ids` with the corresponding slice
@@ -48,7 +81,15 @@ def _replace_img_tokens_with_embd(self, input_ids, token_embd, image_embd):
 
         return updated_token_embd
 
-    def forward(self, input_ids, images, attention_mask=None, targets=None):
+    
+    def forward(self, input_ids, images=None, attention_mask=None, labels=None, **kwargs):
+        # Handle different argument names - PEFT might pass 'labels' instead of 'targets'
+        targets = labels if labels is not None else kwargs.get('targets', None)
+
+        # Handle cases where images might be passed through kwargs
+        if images is None:
+            images = kwargs.get('images', [])
+
         if isinstance(images, list):
             if not images: # Handle cases with no images
                 images = torch.empty(0, self.cfg.vit_channels, self.cfg.vit_image_size, self.cfg.vit_image_size, device=input_ids.device)
@@ -76,6 +117,17 @@ def forward(self, input_ids, images, attention_mask=None, targets=None):
             loss = F.cross_entropy(logits.reshape(-1, logits.size(-1)), targets.reshape(-1), ignore_index=-100)
 
         return logits, loss
+    
+    def prepare_inputs_for_generation(self, input_ids, **kwargs):
+        """
+        Prepare inputs for generation. Required by PEFT for CAUSAL_LM task type.
+        This is a minimal implementation that just returns the basic inputs.
+        """
+
+        return {
+            "input_ids": input_ids,
+            **kwargs
+        }
 
     @torch.inference_mode()
     def generate(self, input_ids, images, attention_mask=None, max_new_tokens=5, top_k=50, top_p=0.9, temperature=0.5, greedy=False):
diff --git a/train.py b/train.py
index 17ce4018..5db700fc 100644
--- a/train.py
+++ b/train.py
@@ -13,6 +13,7 @@
 from torch.utils.data import DataLoader, DistributedSampler
 import torch.distributed as dist
 from torch.nn.parallel import DistributedDataParallel
+from peft import LoraConfig, get_peft_model, TaskType
 
 torch.manual_seed(0)
 if torch.cuda.is_available():
@@ -210,6 +211,24 @@ def train(train_cfg, vlm_cfg):
     else:
         model = VisionLanguageModel(vlm_cfg, load_backbone=vlm_cfg.vlm_load_backbone_weights)
     
+    # Apply LoRA if enabled
+    if train_cfg.use_lora:
+        lora_config = LoraConfig(
+            task_type=TaskType.CAUSAL_LM,  # Now works with the added prepare_inputs_for_generation method
+            r=train_cfg.lora_rank,
+            lora_alpha=train_cfg.lora_alpha,
+            lora_dropout=train_cfg.lora_dropout,
+            target_modules=train_cfg.lora_target_modules,
+            bias="none",
+        )
+        
+        model = get_peft_model(model, lora_config)
+        
+        if is_master():
+            print("\n=== LoRA Configuration ===")
+            model.print_trainable_parameters()
+            print("===========================\n")
+
     if is_master():
         print(f"nanoVLM initialized with {sum(p.numel() for p in model.parameters()):,} parameters") 
         print(f"Training summary{' (global)' if is_dist() else ''}: {len(train_loader.dataset)} samples, {int(len(train_loader)*get_world_size())} batches/epoch, batch size {int(train_cfg.batch_size*get_world_size()*train_cfg.gradient_accumulation_steps)}{', training on ' + str(get_world_size()) + ' GPUs' if is_dist() else ''}")
@@ -299,7 +318,7 @@ def train(train_cfg, vlm_cfg):
             )
             with autocast_context:
                 with context:
-                    _, loss = model(input_ids, images, attention_mask=attention_mask, targets=labels)
+                    _, loss = model(input_ids=input_ids, images=images, attention_mask=attention_mask, labels=labels)
 
             if train_cfg.gradient_accumulation_steps > 1:
                 loss = loss / train_cfg.gradient_accumulation_steps
@@ -357,7 +376,7 @@ def train(train_cfg, vlm_cfg):
                         attention_mask = batch["attention_mask"].to(device)
 
                         with autocast_context:
-                            _, loss = model(input_ids, images, attention_mask=attention_mask, targets=labels)
+                            _, loss = model(input_ids=input_ids, images=images, attention_mask=attention_mask, labels=labels)
 
                         total_val_loss += loss.item()
                     avg_val_loss = total_val_loss / len(val_loader) if len(val_loader) > 0 else 0