diff --git a/src/axolotl/integrations/diffusion/README.md b/src/axolotl/integrations/diffusion/README.md
index f79d5a46b..32cf21218 100644
--- a/src/axolotl/integrations/diffusion/README.md
+++ b/src/axolotl/integrations/diffusion/README.md
@@ -64,11 +64,25 @@ learning_rate: 3e-4
 
 ## Supported Models
 
-Any models that support 4D attention masks should work out of the box. If not, please
-create an [issue](https://github.com/axolotl-ai-cloud/axolotl/issues)!
+Currently supported base model types:
+- **Llama** (meta-llama/Llama-*, etc.) - Uses `LlamaForDiffusionLM`
+- **Mistral** (mistralai/Mistral-*, etc.) - Uses `MistralForDiffusionLM`
+
+The plugin automatically creates custom model classes that inherit from the base model
+while adding diffusion training capabilities. This provides full compatibility with
+HuggingFace's ecosystem for saving, loading, and inference.
 
 ## How It Works
 
+### Custom Model Architecture
+
+The plugin creates custom model classes (`LlamaForDiffusionLM`, `MistralForDiffusionLM`) that inherit from
+standard HuggingFace models. During training, these models:
+
+1. **Apply forward diffusion process**: Randomly mask tokens based on sampled timesteps
+2. **Use bidirectional attention**: Override causal attention with full bidirectional attention
+3. **Compute diffusion loss**: Calculate loss only on masked tokens with optional importance weighting
+
 ### Random Masking
 During training, tokens are randomly masked based on a sampled timestep:
 - Sample timestep `t` uniformly from [0, 1]
@@ -76,11 +90,10 @@ During training, tokens are randomly masked based on a sampled timestep:
 - Randomly mask tokens with probability `p`
 
 ### Bidirectional Attention
-The plugin uses native 4D attention masks to:
-- Enable bidirectional attention without patches
-- Allow all tokens to attend to all other tokens
-- Maintain proper padding masks
-- Work with modern `transformers` models out of the box
+The models override causal attention with bidirectional attention:
+- Creates 4D attention masks allowing all-to-all attention
+- Maintains proper padding and sample packing masks
+- Compatible with standard HuggingFace attention implementations
 
 ### Diffusion Loss
 
@@ -90,6 +103,22 @@ Loss is computed only on masked tokens with (optional) importance weighting:
 loss = sum(cross_entropy(pred, target) / p_mask) / total_tokens
 ```
 
+### Model Loading and Saving
+
+The custom models work seamlessly with HuggingFace's AutoModel system:
+
+```python
+from transformers import AutoModel, AutoConfig
+
+# Load a diffusion model
+model = AutoModel.from_pretrained("path/to/diffusion/model", trust_remote_code=True)
+
+# Save a diffusion model
+model.save_pretrained("path/to/save/diffusion/model")
+```
+
+During inference, the models behave like standard causal language models.
+
 ## Sample Generation
 
 When `generate_samples: true`, the plugin generates samples during training:
@@ -115,9 +144,19 @@ The plugin adds several metrics to track diffusion training:
 - `train/ce_loss`: Unweighted cross-entropy loss
 - `train/importance_weight_avg`: Average importance weight
 
+## Benefits of Custom Model Approach
+
+✅ **Type Safety**: Full IDE support and type checking  
+✅ **HuggingFace Integration**: Works with AutoModel, Hub, pipelines  
+✅ **Maintainability**: Clean architecture, no monkey patching  
+✅ **Ecosystem Compatibility**: Standard save/load, PEFT support  
+✅ **Testing**: Easier to test and debug  
+
 ## Limitations
 
-- No flash attention support
+- **Model Support**: Currently limited to Llama and Mistral architectures
+- **Flash Attention**: Not yet optimized for flash attention
+- **Inference Speed**: Bidirectional attention is slower than causal for generation
 
 ## References
 
diff --git a/src/axolotl/integrations/diffusion/__init__.py b/src/axolotl/integrations/diffusion/__init__.py
index 942f8051f..bbc578057 100644
--- a/src/axolotl/integrations/diffusion/__init__.py
+++ b/src/axolotl/integrations/diffusion/__init__.py
@@ -1,6 +1,26 @@
 """Diffusion LM training plugin init."""
 
+from transformers import AutoConfig, AutoModel
+
 from .args import DiffusionArgs
+from .configuration import DiffusionConfig, LlamaForDiffusionConfig, MistralForDiffusionConfig
+from .models import LlamaForDiffusionLM, MistralForDiffusionLM
 from .plugin import DiffusionPlugin
 
-__all__ = ["DiffusionArgs", "DiffusionPlugin"]
+# Register custom configurations
+AutoConfig.register("llama_diffusion", LlamaForDiffusionConfig)
+AutoConfig.register("mistral_diffusion", MistralForDiffusionConfig)
+
+# Register custom models
+AutoModel.register(LlamaForDiffusionConfig, LlamaForDiffusionLM)
+AutoModel.register(MistralForDiffusionConfig, MistralForDiffusionLM)
+
+__all__ = [
+    "DiffusionArgs", 
+    "DiffusionPlugin",
+    "DiffusionConfig",
+    "LlamaForDiffusionConfig",
+    "MistralForDiffusionConfig", 
+    "LlamaForDiffusionLM",
+    "MistralForDiffusionLM",
+]
diff --git a/src/axolotl/integrations/diffusion/callbacks.py b/src/axolotl/integrations/diffusion/callbacks.py
index 595bf49a1..8994db3a0 100644
--- a/src/axolotl/integrations/diffusion/callbacks.py
+++ b/src/axolotl/integrations/diffusion/callbacks.py
@@ -26,29 +26,31 @@ class DiffusionGenerationCallback(TrainerCallback):
         **kwargs,
     ):
         """Generate samples at specified intervals."""
+        config = getattr(self.trainer, 'diffusion_config', self.trainer.args)
+        
         if (
             state.global_step > 0
-            and state.global_step % self.trainer.config.generation_interval == 0
+            and state.global_step % config.get('generation_interval', 100) == 0
         ):
             # Use eval dataloader if available, otherwise use train dataloader
             if (
                 hasattr(self.trainer, "eval_dataset")
                 and self.trainer.eval_dataset is not None
             ):
-                dataloader = self.trainer.callback_handler.eval_dataloader
+                dataloader = self.trainer.get_eval_dataloader()
             else:
-                dataloader = self.trainer.callback_handler.train_dataloader
+                dataloader = self.trainer.get_train_dataloader()
 
             # Generate samples
             samples = generate_samples(
                 model=self.trainer.model,
                 tokenizer=self.trainer.tokenizer,
                 dataloader=dataloader,
-                num_generation_samples=self.trainer.config.num_generation_samples,
-                max_length=self.trainer.config.generation_max_length,
-                num_diffusion_steps=self.trainer.config.generation_steps,
-                temperature=self.trainer.config.generation_temperature,
-                mask_token_id=self.trainer.config.mask_token_id,
+                num_generation_samples=config.get('num_generation_samples', 3),
+                max_length=config.get('generation_max_length', 256),
+                num_diffusion_steps=config.get('generation_steps', 10),
+                temperature=config.get('generation_temperature', 1.0),
+                mask_token_id=config.get('mask_token_id', 32000),
             )
 
             # Log samples
@@ -81,7 +83,8 @@ class DiffusionGenerationCallback(TrainerCallback):
 
         LOG.info("=" * 60)
 
-        if self.trainer.config.use_wandb and self.trainer.state.is_world_process_zero:
+        config = getattr(self.trainer, 'diffusion_config', self.trainer.args)
+        if config.get('use_wandb', False) and self.trainer.state.is_world_process_zero:
             if wandb.run is not None:
                 wandb.log(
                     {
diff --git a/src/axolotl/integrations/diffusion/configuration.py b/src/axolotl/integrations/diffusion/configuration.py
new file mode 100644
index 000000000..8b714bc78
--- /dev/null
+++ b/src/axolotl/integrations/diffusion/configuration.py
@@ -0,0 +1,71 @@
+"""Configuration classes for diffusion language models."""
+
+from transformers import LlamaConfig, MistralConfig
+
+
+class LlamaForDiffusionConfig(LlamaConfig):
+    """Configuration class for Llama models with diffusion training."""
+    
+    model_type = "llama_diffusion"
+    
+    def __init__(
+        self,
+        mask_token_id: int = 32000,
+        eps: float = 1e-3,
+        importance_weighting: bool = False,
+        sample_packing: bool = False,
+        min_mask_ratio: float = 0.0,
+        max_mask_ratio: float = 1.0,
+        noise_schedule: str = "linear",
+        **kwargs,
+    ):
+        super().__init__(**kwargs)
+        
+        # Diffusion-specific parameters
+        self.mask_token_id = mask_token_id
+        self.eps = eps
+        self.importance_weighting = importance_weighting
+        self.sample_packing = sample_packing
+        self.min_mask_ratio = min_mask_ratio
+        self.max_mask_ratio = max_mask_ratio
+        self.noise_schedule = noise_schedule
+
+
+class MistralForDiffusionConfig(MistralConfig):
+    """Configuration class for Mistral models with diffusion training."""
+    
+    model_type = "mistral_diffusion"
+    
+    def __init__(
+        self,
+        mask_token_id: int = 32000,
+        eps: float = 1e-3,
+        importance_weighting: bool = False,
+        sample_packing: bool = False,
+        min_mask_ratio: float = 0.0,
+        max_mask_ratio: float = 1.0,
+        noise_schedule: str = "linear",
+        **kwargs,
+    ):
+        super().__init__(**kwargs)
+        
+        # Diffusion-specific parameters
+        self.mask_token_id = mask_token_id
+        self.eps = eps
+        self.importance_weighting = importance_weighting
+        self.sample_packing = sample_packing
+        self.min_mask_ratio = min_mask_ratio
+        self.max_mask_ratio = max_mask_ratio
+        self.noise_schedule = noise_schedule
+
+
+# Keep the base class for backward compatibility but mark as deprecated
+class DiffusionConfig(LlamaForDiffusionConfig):
+    """
+    Deprecated: Use LlamaForDiffusionConfig or MistralForDiffusionConfig instead.
+    """
+    
+    model_type = "diffusion"
+    
+    def __init__(self, **kwargs):
+        super().__init__(**kwargs)
\ No newline at end of file
diff --git a/src/axolotl/integrations/diffusion/models.py b/src/axolotl/integrations/diffusion/models.py
new file mode 100644
index 000000000..8679e5ae3
--- /dev/null
+++ b/src/axolotl/integrations/diffusion/models.py
@@ -0,0 +1,426 @@
+"""Custom model classes for diffusion language models."""
+
+from typing import Optional, Tuple, Union
+
+import torch
+import torch.nn.functional as F
+from transformers import LlamaForCausalLM, MistralForCausalLM
+from transformers.modeling_outputs import CausalLMOutputWithPast
+
+from .configuration import LlamaForDiffusionConfig, MistralForDiffusionConfig
+
+
+class DiffusionModelMixin:
+    """Mixin class providing diffusion functionality to language models."""
+    
+    def __init__(self, *args, **kwargs):
+        super().__init__(*args, **kwargs)
+        self._special_token_ids = None
+        
+    def _cache_special_token_ids(self, tokenizer=None):
+        """Cache special token IDs to avoid repeated tokenizer access."""
+        if tokenizer is None:
+            self._special_token_ids = set()
+            return
+            
+        special_tokens = set()
+        
+        if hasattr(tokenizer, "bos_token_id") and tokenizer.bos_token_id is not None:
+            special_tokens.add(tokenizer.bos_token_id)
+        if hasattr(tokenizer, "eos_token_id") and tokenizer.eos_token_id is not None:
+            special_tokens.add(tokenizer.eos_token_id)
+        if hasattr(tokenizer, "pad_token_id") and tokenizer.pad_token_id is not None:
+            special_tokens.add(tokenizer.pad_token_id)
+            
+        self._special_token_ids = special_tokens
+    
+    def _forward_process(
+        self,
+        input_ids: torch.Tensor,
+        attention_mask: torch.Tensor | None = None,
+        labels: torch.Tensor | None = None,
+        eps: float = 1e-3,
+    ) -> tuple[torch.Tensor, torch.Tensor, torch.Tensor]:
+        """
+        Forward noising process. A timestep is sampled along the process, and tokens are
+        masked with probability determined by the configured noise schedule.
+
+        Args:
+            input_ids: Input token ids [batch_size, seq_len].
+            attention_mask: Attention mask [batch_size, seq_len].
+            labels: Labels for SFT training [batch_size, seq_len].
+            eps: Small epsilon value for minimum masking probability.
+
+        Returns:
+            noisy_batch: Input with some tokens masked.
+            masked_indices: Boolean mask indicating which tokens were masked.
+            p_mask: Masking probabilities for each token [batch_size, seq_len].
+        """
+        batch_size, seq_len = input_ids.shape
+        device = input_ids.device
+
+        # Sample random timesteps for each sample in batch
+        t = torch.rand(batch_size, device=device)
+
+        # Calculate masking probability with epsilon
+        p_mask = (1 - eps) * t + eps  # [batch_size]
+        p_mask = p_mask[:, None].repeat(1, seq_len)  # [batch_size, seq_len]
+
+        # Don't mask padding tokens if attention_mask is provided
+        if attention_mask is not None:
+            valid_mask = attention_mask.bool()
+            p_mask = p_mask * valid_mask.float()
+
+        # Create mask to exclude special tokens
+        special_token_mask = torch.zeros_like(input_ids, dtype=torch.bool)
+        if self._special_token_ids:
+            for token_id in self._special_token_ids:
+                special_token_mask |= input_ids == token_id
+
+        # Create random mask based on p_mask
+        masked_indices = torch.rand((batch_size, seq_len), device=device) < p_mask
+        masked_indices = masked_indices & ~special_token_mask
+        if attention_mask is not None:
+            masked_indices = masked_indices & attention_mask.bool()
+
+        # For SFT data, only mask answer tokens
+        if labels is not None:
+            answer_mask = labels != -100
+            masked_indices = masked_indices & answer_mask
+
+        # Create masked input
+        mask_token_id = self.config.mask_token_id
+        noisy_batch = torch.where(masked_indices, mask_token_id, input_ids)
+
+        return noisy_batch, masked_indices, p_mask
+
+    def _create_bidirectional_attention_mask(
+        self, input_ids: torch.Tensor, attention_mask: torch.Tensor | None = None
+    ) -> torch.Tensor:
+        """
+        Create bidirectional attention mask to override default causal masking. Handles
+        sample-packed sequences where different samples are identified by different
+        attention mask values.
+
+        Args:
+            input_ids: Input token ids [batch_size, seq_len].
+            attention_mask: Attention mask [batch_size, seq_len]
+
+        Returns:
+            bidirectional_mask: 4D attention mask [batch_size, 1, seq_len, seq_len].
+        """
+        batch_size, seq_len = input_ids.shape
+        device = input_ids.device
+
+        if attention_mask is None or not self.config.sample_packing:
+            return torch.ones(
+                batch_size, 1, seq_len, seq_len, dtype=torch.bool, device=device
+            )
+
+        # Create attention mask by comparing sample IDs element-wise
+        mask_i = attention_mask.unsqueeze(2)  # [batch_size, seq_len, 1]
+        mask_j = attention_mask.unsqueeze(1)  # [batch_size, 1, seq_len]
+
+        # Tokens can attend to each other if they have the same non-zero sample ID
+        bidirectional_mask = (mask_i == mask_j) & (mask_i > 0)
+
+        # Add head dimension: [batch_size, 1, seq_len, seq_len]
+        bidirectional_mask = bidirectional_mask.unsqueeze(1)
+
+        return bidirectional_mask
+
+    def _compute_diffusion_loss(
+        self,
+        input_ids: torch.Tensor,
+        attention_mask: torch.Tensor | None = None,
+        labels: torch.Tensor | None = None,
+        logits: torch.Tensor | None = None,
+        masked_indices: torch.Tensor | None = None,
+        p_mask: torch.Tensor | None = None,
+    ) -> torch.Tensor:
+        """
+        Compute diffusion loss given logits and masking information.
+
+        Args:
+            input_ids: Ground truth token ids [batch_size, seq_len].
+            attention_mask: Attention mask [batch_size, seq_len].
+            labels: Labels for SFT training [batch_size, seq_len].
+            logits: Model logits [batch_size, seq_len, vocab_size].
+            masked_indices: Boolean mask indicating which tokens were masked.
+            p_mask: Masking probabilities for each token [batch_size, seq_len].
+
+        Returns:
+            loss: Cross-entropy loss.
+        """
+        if masked_indices.sum() > 0:
+            valid_indices = torch.where(masked_indices)
+            batch_indices, seq_indices = valid_indices
+
+            masked_logits = logits[batch_indices, seq_indices]
+            masked_targets = input_ids[batch_indices, seq_indices]
+            masked_p_mask = p_mask[batch_indices, seq_indices]
+
+            # Compute cross-entropy loss without reduction
+            token_loss = F.cross_entropy(
+                masked_logits.float(), masked_targets, reduction="none"
+            )
+
+            if self.config.importance_weighting:
+                masked_p_mask = masked_p_mask.float()
+                weighted_loss = token_loss / masked_p_mask
+            else:
+                weighted_loss = token_loss
+
+            # Final loss: sum weighted losses, normalize
+            if labels is not None:
+                # For SFT data: normalize by answer length per sample
+                answer_mask = labels != -100
+                answer_lengths = answer_mask.sum(dim=1).float()  # [batch_size]
+
+                # Get batch indices for masked tokens
+                masked_batch_indices = batch_indices
+
+                # Sum losses per sample and divide by answer length
+                loss_per_sample = torch.zeros(
+                    input_ids.shape[0], device=input_ids.device
+                )
+                for i in range(input_ids.shape[0]):
+                    sample_mask = masked_batch_indices == i
+                    if sample_mask.sum() > 0:
+                        sample_loss = weighted_loss[sample_mask].sum()
+                        loss_per_sample[i] = sample_loss / answer_lengths[i]
+
+                loss = loss_per_sample.mean()
+            else:
+                # Original normalization for non-SFT data
+                loss = weighted_loss.sum() / (input_ids.shape[0] * input_ids.shape[1])
+        else:
+            loss = torch.tensor(0.0, device=input_ids.device, requires_grad=True)
+
+        return loss
+
+
+class LlamaForDiffusionLM(DiffusionModelMixin, LlamaForCausalLM):
+    """
+    Llama model for diffusion language modeling.
+    
+    This model extends LlamaForCausalLM with diffusion training capabilities,
+    including bidirectional attention and forward diffusion process.
+    """
+    
+    config_class = LlamaForDiffusionConfig
+    
+    def __init__(self, config):
+        super().__init__(config)
+        
+        # Initialize diffusion-specific attributes
+        self._special_token_ids = None
+        
+        # Initialize weights and apply final processing
+        self.post_init()
+        
+    def set_tokenizer(self, tokenizer):
+        """Set tokenizer for special token handling."""
+        self._cache_special_token_ids(tokenizer)
+    
+    def forward(
+        self,
+        input_ids: torch.LongTensor = None,
+        attention_mask: Optional[torch.Tensor] = None,
+        position_ids: Optional[torch.LongTensor] = None,
+        past_key_values: Optional[list[torch.FloatTensor]] = None,
+        inputs_embeds: Optional[torch.FloatTensor] = None,
+        labels: Optional[torch.LongTensor] = None,
+        use_cache: Optional[bool] = None,
+        output_attentions: Optional[bool] = None,
+        output_hidden_states: Optional[bool] = None,
+        return_dict: Optional[bool] = None,
+        cache_position: Optional[torch.LongTensor] = None,
+        **kwargs,
+    ) -> Union[Tuple, CausalLMOutputWithPast]:
+        """
+        Forward pass with diffusion training logic.
+        
+        During training, applies forward diffusion process and bidirectional attention.
+        During inference, behaves like standard causal language model.
+        """
+        output_attentions = output_attentions if output_attentions is not None else self.config.output_attentions
+        output_hidden_states = (
+            output_hidden_states if output_hidden_states is not None else self.config.output_hidden_states
+        )
+        return_dict = return_dict if return_dict is not None else self.config.use_return_dict
+        
+        if self.training and input_ids is not None:
+            # Apply diffusion process during training
+            original_input_ids = input_ids.clone()
+            
+            # Apply forward process to get noisy input
+            noisy_input_ids, masked_indices, p_mask = self._forward_process(
+                input_ids, attention_mask, labels, self.config.eps
+            )
+            
+            # Create bidirectional attention mask
+            bidirectional_attention_mask = self._create_bidirectional_attention_mask(
+                input_ids, attention_mask
+            )
+            
+            # Forward pass with noisy input and bidirectional attention
+            outputs = super().forward(
+                input_ids=noisy_input_ids,
+                attention_mask=bidirectional_attention_mask,
+                position_ids=position_ids,
+                past_key_values=past_key_values,
+                inputs_embeds=inputs_embeds,
+                labels=None,  # Don't use standard loss computation
+                use_cache=use_cache,
+                output_attentions=output_attentions,
+                output_hidden_states=output_hidden_states,
+                return_dict=return_dict,
+                cache_position=cache_position,
+                **kwargs,
+            )
+            
+            # Compute diffusion loss
+            loss = self._compute_diffusion_loss(
+                original_input_ids,
+                attention_mask,
+                labels,
+                outputs.logits,
+                masked_indices,
+                p_mask,
+            )
+            
+            if return_dict:
+                outputs.loss = loss
+                return outputs
+            else:
+                return (loss,) + outputs[1:]
+        else:
+            # Standard forward pass for inference
+            return super().forward(
+                input_ids=input_ids,
+                attention_mask=attention_mask,
+                position_ids=position_ids,
+                past_key_values=past_key_values,
+                inputs_embeds=inputs_embeds,
+                labels=labels,
+                use_cache=use_cache,
+                output_attentions=output_attentions,
+                output_hidden_states=output_hidden_states,
+                return_dict=return_dict,
+                cache_position=cache_position,
+                **kwargs,
+            )
+
+
+class MistralForDiffusionLM(DiffusionModelMixin, MistralForCausalLM):
+    """
+    Mistral model for diffusion language modeling.
+    
+    This model extends MistralForCausalLM with diffusion training capabilities,
+    including bidirectional attention and forward diffusion process.
+    """
+    
+    config_class = MistralForDiffusionConfig
+    
+    def __init__(self, config):
+        super().__init__(config)
+        
+        # Initialize diffusion-specific attributes
+        self._special_token_ids = None
+        
+        # Initialize weights and apply final processing
+        self.post_init()
+        
+    def set_tokenizer(self, tokenizer):
+        """Set tokenizer for special token handling."""
+        self._cache_special_token_ids(tokenizer)
+    
+    def forward(
+        self,
+        input_ids: torch.LongTensor = None,
+        attention_mask: Optional[torch.Tensor] = None,
+        position_ids: Optional[torch.LongTensor] = None,
+        past_key_values: Optional[list[torch.FloatTensor]] = None,
+        inputs_embeds: Optional[torch.FloatTensor] = None,
+        labels: Optional[torch.LongTensor] = None,
+        use_cache: Optional[bool] = None,
+        output_attentions: Optional[bool] = None,
+        output_hidden_states: Optional[bool] = None,
+        return_dict: Optional[bool] = None,
+        cache_position: Optional[torch.LongTensor] = None,
+        **kwargs,
+    ) -> Union[Tuple, CausalLMOutputWithPast]:
+        """
+        Forward pass with diffusion training logic.
+        
+        During training, applies forward diffusion process and bidirectional attention.
+        During inference, behaves like standard causal language model.
+        """
+        output_attentions = output_attentions if output_attentions is not None else self.config.output_attentions
+        output_hidden_states = (
+            output_hidden_states if output_hidden_states is not None else self.config.output_hidden_states
+        )
+        return_dict = return_dict if return_dict is not None else self.config.use_return_dict
+        
+        if self.training and input_ids is not None:
+            # Apply diffusion process during training
+            original_input_ids = input_ids.clone()
+            
+            # Apply forward process to get noisy input
+            noisy_input_ids, masked_indices, p_mask = self._forward_process(
+                input_ids, attention_mask, labels, self.config.eps
+            )
+            
+            # Create bidirectional attention mask
+            bidirectional_attention_mask = self._create_bidirectional_attention_mask(
+                input_ids, attention_mask
+            )
+            
+            # Forward pass with noisy input and bidirectional attention
+            outputs = super().forward(
+                input_ids=noisy_input_ids,
+                attention_mask=bidirectional_attention_mask,
+                position_ids=position_ids,
+                past_key_values=past_key_values,
+                inputs_embeds=inputs_embeds,
+                labels=None,  # Don't use standard loss computation
+                use_cache=use_cache,
+                output_attentions=output_attentions,
+                output_hidden_states=output_hidden_states,
+                return_dict=return_dict,
+                cache_position=cache_position,
+                **kwargs,
+            )
+            
+            # Compute diffusion loss
+            loss = self._compute_diffusion_loss(
+                original_input_ids,
+                attention_mask,
+                labels,
+                outputs.logits,
+                masked_indices,
+                p_mask,
+            )
+            
+            if return_dict:
+                outputs.loss = loss
+                return outputs
+            else:
+                return (loss,) + outputs[1:]
+        else:
+            # Standard forward pass for inference
+            return super().forward(
+                input_ids=input_ids,
+                attention_mask=attention_mask,
+                position_ids=position_ids,
+                past_key_values=past_key_values,
+                inputs_embeds=inputs_embeds,
+                labels=labels,
+                use_cache=use_cache,
+                output_attentions=output_attentions,
+                output_hidden_states=output_hidden_states,
+                return_dict=return_dict,
+                cache_position=cache_position,
+                **kwargs,
+            )
\ No newline at end of file
diff --git a/src/axolotl/integrations/diffusion/plugin.py b/src/axolotl/integrations/diffusion/plugin.py
index c31f48b03..277acbcce 100644
--- a/src/axolotl/integrations/diffusion/plugin.py
+++ b/src/axolotl/integrations/diffusion/plugin.py
@@ -1,13 +1,20 @@
 """Diffusion LM training plugin for Axolotl."""
 
+from typing import TYPE_CHECKING
+
 from peft import PeftModel
-from transformers import PreTrainedModel
+from transformers import AutoConfig, AutoModel, PreTrainedModel
 
 from axolotl.integrations.base import BasePlugin
 from axolotl.utils.dict import DictDefault
 from axolotl.utils.logging import get_logger
 
-from .trainer import DiffusionTrainer
+from .callbacks import DiffusionGenerationCallback
+from .configuration import LlamaForDiffusionConfig, MistralForDiffusionConfig
+from .models import LlamaForDiffusionLM, MistralForDiffusionLM
+
+if TYPE_CHECKING:
+    from transformers import Trainer
 
 LOG = get_logger(__name__)
 
@@ -28,14 +35,64 @@ class DiffusionPlugin(BasePlugin):
         """Returns the pydantic model for LLaDA plugin arguments."""
         return "axolotl.integrations.diffusion.DiffusionArgs"
 
+    def pre_model_load(self, cfg: DictDefault):
+        """Configure model loading to use diffusion model classes."""
+        # Map base model types to diffusion equivalents
+        base_model_type = cfg.get("model_type")
+        
+        if base_model_type == "llama":
+            # Create diffusion config from base config
+            diffusion_config = LlamaForDiffusionConfig(
+                mask_token_id=getattr(cfg, "mask_token_id", 32000),
+                eps=getattr(cfg, "eps", 1e-3),
+                importance_weighting=getattr(cfg, "importance_weighting", False),
+                sample_packing=getattr(cfg, "sample_packing", False),
+                min_mask_ratio=getattr(cfg, "min_mask_ratio", 0.0),
+                max_mask_ratio=getattr(cfg, "max_mask_ratio", 1.0),
+                noise_schedule=getattr(cfg, "noise_schedule", "linear"),
+            )
+            
+            # Override model type for loading
+            cfg.model_type = "llama_diffusion"
+            
+        elif base_model_type == "mistral":
+            # Create diffusion config from base config
+            diffusion_config = MistralForDiffusionConfig(
+                mask_token_id=getattr(cfg, "mask_token_id", 32000),
+                eps=getattr(cfg, "eps", 1e-3),
+                importance_weighting=getattr(cfg, "importance_weighting", False),
+                sample_packing=getattr(cfg, "sample_packing", False),
+                min_mask_ratio=getattr(cfg, "min_mask_ratio", 0.0),
+                max_mask_ratio=getattr(cfg, "max_mask_ratio", 1.0),
+                noise_schedule=getattr(cfg, "noise_schedule", "linear"),
+            )
+            
+            # Override model type for loading
+            cfg.model_type = "mistral_diffusion"
+        else:
+            LOG.warning(f"Diffusion plugin not implemented for model type: {base_model_type}")
+
     def post_model_load(self, cfg: DictDefault, model: PreTrainedModel | PeftModel):
-        """Perform actions after model is loaded."""
+        """Configure model after loading."""
         self.cfg = cfg
+        
+        # Set tokenizer on diffusion models for special token handling
+        if hasattr(model, "set_tokenizer"):
+            # Get tokenizer from cfg if available
+            tokenizer = getattr(cfg, "tokenizer", None)
+            if tokenizer is not None:
+                model.set_tokenizer(tokenizer)
 
-    def get_trainer_cls(self, cfg: DictDefault) -> type[DiffusionTrainer] | None:
-        """Return custom trainer class for diffusion training."""
-        return DiffusionTrainer
-
-    def post_trainer_create(self, cfg: DictDefault, trainer: DiffusionTrainer):
-        """Configure trainer after creation."""
-        trainer.set_config(cfg)
+    def add_callbacks_post_trainer(self, cfg: DictDefault, trainer: "Trainer"):
+        """Add diffusion-specific callbacks after trainer creation."""
+        callbacks = []
+        
+        # Store diffusion config on trainer for callbacks
+        trainer.diffusion_config = cfg
+        
+        # Add generation callback if enabled
+        if cfg.get("generate_samples", False):
+            generation_callback = DiffusionGenerationCallback(trainer)
+            callbacks.append(generation_callback)
+            
+        return callbacks
diff --git a/src/axolotl/integrations/diffusion/trainer.py b/src/axolotl/integrations/diffusion/trainer.py
deleted file mode 100644
index dc62035d5..000000000
--- a/src/axolotl/integrations/diffusion/trainer.py
+++ /dev/null
@@ -1,279 +0,0 @@
-"""Custom trainer for diffusion LM training."""
-
-from typing import Any, Literal
-
-import torch
-import torch.nn.functional as F
-from torch import nn
-
-from axolotl.core.trainers.base import AxolotlTrainer
-from axolotl.utils.dict import DictDefault
-from axolotl.utils.logging import get_logger
-
-from .callbacks import DiffusionGenerationCallback
-
-LOG = get_logger(__name__)
-
-
-class DiffusionTrainer(AxolotlTrainer):  # pylint: disable=too-many-ancestors
-    """Custom trainer for diffusion LM training that overrides loss computation."""
-
-    def __init__(self, *args, **kwargs):
-        super().__init__(*args, **kwargs)
-        self.config = None
-        self._special_token_ids = None
-
-    def set_config(self, config: DictDefault):
-        """Set config for diffusion training."""
-        self.config = config
-        self._cache_special_token_ids()
-
-        if config.generate_samples:
-            generation_callback = DiffusionGenerationCallback(self)
-            self.add_callback(generation_callback)
-
-    def compute_loss(
-        self,
-        model: nn.Module,
-        inputs: dict[str, torch.Tensor],
-        return_outputs: bool = False,
-        num_items_in_batch: torch.Tensor | None = None,
-    ) -> torch.Tensor | tuple[torch.Tensor, dict[str, torch.Tensor]]:
-        """Override compute_loss to use diffusion loss."""
-        input_ids = inputs.get("input_ids")
-        attention_mask = inputs.get("attention_mask")
-        labels = inputs.get("labels")
-
-        if input_ids is None:
-            raise ValueError("input_ids is required for diffusion training")
-
-        loss, outputs = self._compute_diffusion_loss(
-            model, input_ids, attention_mask, labels
-        )
-
-        if return_outputs:
-            return loss, outputs
-        return loss
-
-    def _cache_special_token_ids(self):
-        """Cache special token IDs to avoid repeated tokenizer access."""
-        if self.processing_class is None:
-            self._special_token_ids = set()
-            return
-
-        tokenizer = self.processing_class
-        special_tokens = set()
-
-        if hasattr(tokenizer, "bos_token_id") and tokenizer.bos_token_id is not None:
-            special_tokens.add(tokenizer.bos_token_id)
-        if hasattr(tokenizer, "eos_token_id") and tokenizer.eos_token_id is not None:
-            special_tokens.add(tokenizer.eos_token_id)
-        if hasattr(tokenizer, "pad_token_id") and tokenizer.pad_token_id is not None:
-            special_tokens.add(tokenizer.pad_token_id)
-
-        self._special_token_ids = special_tokens
-
-    @torch.compile
-    def _forward_process(
-        self,
-        input_ids: torch.Tensor,
-        attention_mask: torch.Tensor | None = None,
-        labels: torch.Tensor | None = None,
-        eps: float = 1e-3,
-    ) -> tuple[torch.Tensor, torch.Tensor, torch.Tensor]:
-        """
-        Forward noising process. A timestep is sampled along the process, and tokens are
-        masked with probability determined by the configured noise schedule.
-
-        Args:
-            input_ids: Input token ids [batch_size, seq_len].
-            attention_mask: Attention mask [batch_size, seq_len].
-            labels: Labels for SFT training [batch_size, seq_len].
-            eps: Small epsilon value for minimum masking probability.
-
-        Returns:
-            noisy_batch: Input with some tokens masked.
-            masked_indices: Boolean mask indicating which tokens were masked.
-            p_mask: Masking probabilities for each token [batch_size, seq_len].
-        """
-        batch_size, seq_len = input_ids.shape
-        device = input_ids.device
-
-        # Sample random timesteps for each sample in batch
-        t = torch.rand(batch_size, device=device)
-
-        # Calculate masking probability with epsilon
-        p_mask = (1 - eps) * t + eps  # [batch_size]
-        p_mask = p_mask[:, None].repeat(1, seq_len)  # [batch_size, seq_len]
-
-        # Don't mask padding tokens if attention_mask is provided
-        if attention_mask is not None:
-            valid_mask = attention_mask.bool()
-            p_mask = p_mask * valid_mask.float()
-
-        # Create mask to exclude special tokens
-        special_token_mask = torch.zeros_like(input_ids, dtype=torch.bool)
-        if self._special_token_ids:
-            for token_id in self._special_token_ids:
-                special_token_mask |= input_ids == token_id
-
-        # Create random mask based on p_mask
-        masked_indices = torch.rand((batch_size, seq_len), device=device) < p_mask
-        masked_indices = masked_indices & ~special_token_mask
-        if attention_mask is not None:
-            masked_indices = masked_indices & attention_mask.bool()
-
-        # For SFT data, only mask answer tokens
-        if labels is not None:
-            answer_mask = labels != -100
-            masked_indices = masked_indices & answer_mask
-
-        # Create masked input
-        mask_token_id = self.config.mask_token_id
-        noisy_batch = torch.where(masked_indices, mask_token_id, input_ids)
-
-        return noisy_batch, masked_indices, p_mask
-
-    @torch.compile
-    def _create_bidirectional_attention_mask(
-        self, input_ids: torch.Tensor, attention_mask: torch.Tensor | None = None
-    ) -> torch.Tensor:
-        """
-        Create bidirectional attention mask to override default causal masking. Handles
-        sample-packed sequences where different samples are identified by different
-        attention mask values.
-
-        Args:
-            input_ids: Input token ids [batch_size, seq_len].
-            attention_mask: Attention mask [batch_size, seq_len]
-
-        Returns:
-            bidirectional_mask: 4D attention mask [batch_size, 1, seq_len, seq_len].
-        """
-        batch_size, seq_len = input_ids.shape
-        device = input_ids.device
-
-        if attention_mask is None or not self.config.sample_packing:
-            return torch.ones(
-                batch_size, 1, seq_len, seq_len, dtype=torch.bool, device=device
-            )
-
-        # Create attention mask by comparing sample IDs element-wise
-        mask_i = attention_mask.unsqueeze(2)  # [batch_size, seq_len, 1]
-        mask_j = attention_mask.unsqueeze(1)  # [batch_size, 1, seq_len]
-
-        # Tokens can attend to each other if they have the same non-zero sample ID
-        bidirectional_mask = (mask_i == mask_j) & (mask_i > 0)
-
-        # Add head dimension: [batch_size, 1, seq_len, seq_len]
-        bidirectional_mask = bidirectional_mask.unsqueeze(1)
-
-        return bidirectional_mask
-
-    def _compute_diffusion_loss(
-        self,
-        model: nn.Module,
-        input_ids: torch.Tensor,
-        attention_mask: torch.Tensor | None = None,
-        labels: torch.Tensor | None = None,
-    ) -> tuple[torch.Tensor, torch.Tensor | Any]:
-        """
-        Compute diffusion loss.
-
-        Args:
-            model: The model to compute loss for.
-            input_ids: Ground truth token ids [batch_size, seq_len].
-            attention_mask: Attention mask [batch_size, seq_len].
-            labels: Labels for SFT training [batch_size, seq_len].
-
-        Returns:
-            loss: Cross-entropy loss.
-            metrics: Dictionary of metrics.
-        """
-        # Apply forward process
-        noisy_batch, masked_indices, p_mask = self._forward_process(
-            input_ids, attention_mask, labels, self.config.eps
-        )
-
-        # Create bidirectional attention mask
-        bidirectional_mask = self._create_bidirectional_attention_mask(
-            input_ids, attention_mask
-        )
-
-        # Forward pass
-        outputs = model(
-            input_ids=noisy_batch,
-            attention_mask=bidirectional_mask,
-        )
-        logits = outputs.logits
-
-        if masked_indices.sum() > 0:
-            valid_indices = torch.where(masked_indices)
-            batch_indices, seq_indices = valid_indices
-
-            masked_logits = logits[batch_indices, seq_indices]
-            masked_targets = input_ids[batch_indices, seq_indices]
-            masked_p_mask = p_mask[batch_indices, seq_indices]
-
-            # Compute cross-entropy loss without reduction
-            token_loss = F.cross_entropy(
-                masked_logits.float(), masked_targets, reduction="none"
-            )
-
-            if self.config.importance_weighting:
-                masked_p_mask = masked_p_mask.float()
-                weighted_loss = token_loss / masked_p_mask
-            else:
-                weighted_loss = token_loss
-
-            # Final loss: sum weighted losses, normalize
-            if labels is not None:
-                # For SFT data: normalize by answer length per sample
-                answer_mask = labels != -100
-                answer_lengths = answer_mask.sum(dim=1).float()  # [batch_size]
-
-                # Get batch indices for masked tokens
-                masked_batch_indices = batch_indices
-
-                # Sum losses per sample and divide by answer length
-                loss_per_sample = torch.zeros(
-                    input_ids.shape[0], device=input_ids.device
-                )
-                for i in range(input_ids.shape[0]):
-                    sample_mask = masked_batch_indices == i
-                    if sample_mask.sum() > 0:
-                        sample_loss = weighted_loss[sample_mask].sum()
-                        loss_per_sample[i] = sample_loss / answer_lengths[i]
-
-                loss = loss_per_sample.mean()
-            else:
-                # Original normalization for non-SFT data
-                loss = weighted_loss.sum() / (input_ids.shape[0] * input_ids.shape[1])
-
-            ce_loss = token_loss.mean()
-
-            # Compute accuracy on masked tokens
-            with torch.no_grad():
-                pred_tokens = masked_logits.argmax(dim=-1)
-                accuracy = (pred_tokens == masked_targets).float().mean()
-        else:
-            loss = torch.tensor(0.0, device=input_ids.device, requires_grad=True)
-            accuracy = torch.tensor(0.0, device=input_ids.device)
-            ce_loss = torch.tensor(0.0, device=input_ids.device)
-            masked_p_mask = torch.tensor(1.0, device=input_ids.device)
-
-        metrics = {
-            "loss": loss.item(),
-            "accuracy": accuracy.item(),
-            "mask_ratio": masked_indices.float().mean().item(),
-            "num_masked_tokens": (masked_indices.sum().item(), "sum"),
-            "avg_p_mask": p_mask[masked_indices].mean().item(),
-            "ce_loss": ce_loss.item(),
-        }
-        if self.config.importance_weighting:
-            metrics["importance_weight_avg"] = (1.0 / masked_p_mask).mean().item()
-
-        train_eval: Literal["train", "eval"] = "train" if model.training else "eval"
-        self.store_metrics(metrics, train_eval=train_eval)
-
-        return loss, outputs
diff --git a/tests/integrations/test_diffusion.py b/tests/integrations/test_diffusion.py
index 583597238..afe6df946 100644
--- a/tests/integrations/test_diffusion.py
+++ b/tests/integrations/test_diffusion.py
@@ -1,13 +1,14 @@
-"""Tests for diffusion trainer integration."""
+"""Tests for diffusion model integration."""
 
 # pylint: disable=redefined-outer-name,protected-access
 
-from unittest.mock import Mock
+from unittest.mock import Mock, patch
 
 import pytest
 import torch
 
-from axolotl.integrations.diffusion.trainer import DiffusionTrainer
+from axolotl.integrations.diffusion.configuration import LlamaForDiffusionConfig
+from axolotl.integrations.diffusion.models import LlamaForDiffusionLM
 from axolotl.utils.dict import DictDefault
 
 
@@ -24,37 +25,44 @@ def mock_tokenizer():
 @pytest.fixture
 def diffusion_config():
     """Create a diffusion config."""
-    return DictDefault(
-        {
-            "mask_token_id": 32000,
-            "eps": 1e-3,
-            "importance_weighting": False,
-            "sample_packing": False,
-        }
+    return LlamaForDiffusionConfig(
+        mask_token_id=32000,
+        eps=1e-3,
+        importance_weighting=False,
+        sample_packing=False,
+        # Basic llama config fields - smaller for testing
+        vocab_size=1000,
+        hidden_size=256,
+        intermediate_size=512,
+        num_hidden_layers=2,
+        num_attention_heads=4,
     )
 
 
 @pytest.fixture
-def diffusion_trainer_instance(mock_tokenizer, diffusion_config):
-    """Create a diffusion trainer instance for testing methods directly."""
-    # Create a minimal trainer instance just for testing methods
-    trainer = object.__new__(DiffusionTrainer)  # Bypass __init__
-    trainer.config = diffusion_config
-    trainer._special_token_ids = {0, 1, 2}  # pad, bos, eos
-    trainer.processing_class = mock_tokenizer
-    trainer.store_metrics = Mock()  # Mock metrics storage
-    return trainer
+def diffusion_model_instance(mock_tokenizer, diffusion_config):
+    """Create a diffusion model instance for testing methods directly."""
+    # Create a minimal model instance for testing
+    model = object.__new__(LlamaForDiffusionLM)
+    model.config = diffusion_config
+    model._special_token_ids = {0, 1, 2}  # pad, bos, eos
+    model.training = True
+    
+    # Set tokenizer
+    model.set_tokenizer(mock_tokenizer)
+    
+    return model
 
 
-class TestDiffusionTrainer:
-    """Test the DiffusionTrainer class."""
+class TestDiffusionModel:
+    """Test the DiffusionModel class."""
 
-    def test_forward_process_basic(self, diffusion_trainer_instance):
+    def test_forward_process_basic(self, diffusion_model_instance):
         """Test basic forward process without labels."""
         input_ids = torch.tensor([[1, 10, 20, 30, 2]], dtype=torch.long)
 
         noisy_batch, masked_indices, p_mask = (
-            diffusion_trainer_instance._forward_process(input_ids, eps=0.1)
+            diffusion_model_instance._forward_process(input_ids, eps=0.1)
         )
 
         # Check shapes
@@ -67,18 +75,18 @@ class TestDiffusionTrainer:
         assert not masked_indices[special_token_positions].any()
 
         # Check that mask token is applied
-        mask_token_id = diffusion_trainer_instance._config.mask_token_id
+        mask_token_id = diffusion_model_instance.config.mask_token_id
         masked_positions = masked_indices
         if masked_positions.any():
             assert (noisy_batch[masked_positions] == mask_token_id).all()
 
-    def test_forward_process_with_labels(self, diffusion_trainer_instance):
+    def test_forward_process_with_labels(self, diffusion_model_instance):
         """Test forward process with SFT labels."""
         input_ids = torch.tensor([[1, 10, 20, 30, 2]], dtype=torch.long)
         labels = torch.tensor([[-100, -100, 20, 30, 2]], dtype=torch.long)
 
         noisy_batch, masked_indices, p_mask = (
-            diffusion_trainer_instance._forward_process(
+            diffusion_model_instance._forward_process(
                 input_ids, labels=labels, eps=0.1
             )
         )
@@ -100,12 +108,12 @@ class TestDiffusionTrainer:
         # Verify that masked_indices respects the answer mask
         assert not masked_indices[non_answer_mask].any()
 
-    def test_forward_process_with_attention_mask(self, diffusion_trainer_instance):
+    def test_forward_process_with_attention_mask(self, diffusion_model_instance):
         """Test forward process with attention mask."""
         input_ids = torch.tensor([[1, 10, 20, 0]], dtype=torch.long)
         attention_mask = torch.tensor([[1, 1, 1, 0]], dtype=torch.long)
 
-        _, masked_indices, p_mask = diffusion_trainer_instance._forward_process(
+        _, masked_indices, p_mask = diffusion_model_instance._forward_process(
             input_ids, attention_mask=attention_mask, eps=0.1
         )
 
@@ -114,11 +122,11 @@ class TestDiffusionTrainer:
         assert not masked_indices[padding_positions].any()
         assert (p_mask[padding_positions] == 0).all()
 
-    def test_bidirectional_attention_mask_no_packing(self, diffusion_trainer_instance):
+    def test_bidirectional_attention_mask_no_packing(self, diffusion_model_instance):
         """Test bidirectional attention mask without sample packing."""
         input_ids = torch.tensor([[1, 10, 20, 2]], dtype=torch.long)
 
-        mask = diffusion_trainer_instance._create_bidirectional_attention_mask(
+        mask = diffusion_model_instance._create_bidirectional_attention_mask(
             input_ids
         )
 
@@ -128,15 +136,15 @@ class TestDiffusionTrainer:
         assert mask.all()
 
     def test_bidirectional_attention_mask_with_packing(
-        self, diffusion_trainer_instance
+        self, diffusion_model_instance
     ):
         """Test bidirectional attention mask with sample packing."""
-        diffusion_trainer_instance._config.sample_packing = True
+        diffusion_model_instance.config.sample_packing = True
         input_ids = torch.tensor([[1, 10, 20, 30, 40, 2]], dtype=torch.long)
         # Sample IDs: first sample (1), second sample (2)
         attention_mask = torch.tensor([[1, 1, 1, 2, 2, 2]], dtype=torch.long)
 
-        mask = diffusion_trainer_instance._create_bidirectional_attention_mask(
+        mask = diffusion_model_instance._create_bidirectional_attention_mask(
             input_ids, attention_mask
         )
 
@@ -148,124 +156,135 @@ class TestDiffusionTrainer:
         assert not mask[0, 0, 2, 4].item()
         assert mask[0, 0, 3, 4].item()  # Second sample tokens can attend to each other
 
-    def test_compute_loss_basic(self, diffusion_trainer_instance):
+    def test_compute_loss_basic(self, diffusion_model_instance):
         """Test basic loss computation."""
-        # Mock model that returns logits
-        mock_model = Mock()
-        mock_outputs = Mock()
+        input_ids = torch.tensor([[1, 10, 20, 30, 2]], dtype=torch.long)
+        
+        # Create mock data for loss computation
         vocab_size = 1000
         seq_len = 5
-        mock_outputs.logits = torch.randn(1, seq_len, vocab_size, requires_grad=True)
-        mock_model.return_value = mock_outputs
-        mock_model.training = True
+        logits = torch.randn(1, seq_len, vocab_size, requires_grad=True)
+        
+        # Create a simple masked indices tensor (mask middle tokens)
+        masked_indices = torch.tensor([[False, True, True, False, False]], dtype=torch.bool)
+        p_mask = torch.tensor([[0.1, 0.5, 0.5, 0.1, 0.1]], dtype=torch.float)
 
-        input_ids = torch.tensor([[1, 10, 20, 30, 2]], dtype=torch.long)
-
-        loss, outputs = diffusion_trainer_instance._compute_diffusion_loss(
-            mock_model, input_ids
+        loss = diffusion_model_instance._compute_diffusion_loss(
+            input_ids=input_ids,
+            logits=logits,
+            masked_indices=masked_indices,
+            p_mask=p_mask,
         )
 
         # Check that loss is computed
         assert isinstance(loss, torch.Tensor)
         assert loss.requires_grad
-        assert outputs == mock_outputs
 
-        # Check that metrics were stored
-        diffusion_trainer_instance.store_metrics.assert_called_once()
-
-    def test_compute_loss_with_labels(self, diffusion_trainer_instance):
+    def test_compute_loss_with_labels(self, diffusion_model_instance):
         """Test loss computation with SFT labels."""
-        # Mock model
-        mock_model = Mock()
-        mock_outputs = Mock()
-        vocab_size = 1000
-        seq_len = 5
-        mock_outputs.logits = torch.randn(1, seq_len, vocab_size, requires_grad=True)
-        mock_model.return_value = mock_outputs
-        mock_model.training = True
-
         input_ids = torch.tensor([[1, 10, 20, 30, 2]], dtype=torch.long)
         labels = torch.tensor([[-100, -100, 20, 30, 2]], dtype=torch.long)
+        
+        # Create mock data for loss computation
+        vocab_size = 1000
+        seq_len = 5
+        logits = torch.randn(1, seq_len, vocab_size, requires_grad=True)
+        
+        # Create masked indices that only covers answer tokens
+        masked_indices = torch.tensor([[False, False, True, True, False]], dtype=torch.bool)
+        p_mask = torch.tensor([[0.1, 0.1, 0.5, 0.5, 0.1]], dtype=torch.float)
 
-        loss, _ = diffusion_trainer_instance._compute_diffusion_loss(
-            mock_model, input_ids, labels=labels
+        loss = diffusion_model_instance._compute_diffusion_loss(
+            input_ids=input_ids,
+            labels=labels,
+            logits=logits,
+            masked_indices=masked_indices,
+            p_mask=p_mask,
         )
 
         # Check that loss is computed
         assert isinstance(loss, torch.Tensor)
         assert loss.requires_grad
 
-        # Check that SFT metrics were added
-        call_args = diffusion_trainer_instance.store_metrics.call_args[0][0]
-        assert "answer_ratio" in call_args
-        assert "avg_answer_length" in call_args
-
-    def test_compute_loss_no_masked_tokens(self, diffusion_trainer_instance):
+    def test_compute_loss_no_masked_tokens(self, diffusion_model_instance):
         """Test loss computation when no tokens are masked."""
-        # Mock model
-        mock_model = Mock()
-        mock_outputs = Mock()
+        input_ids = torch.tensor([[1, 0, 2]], dtype=torch.long)
+        
+        # Create mock data for loss computation
         vocab_size = 1000
         seq_len = 3
-        mock_outputs.logits = torch.randn(1, seq_len, vocab_size)
-        mock_model.return_value = mock_outputs
-        mock_model.training = True
+        logits = torch.randn(1, seq_len, vocab_size)
+        
+        # No tokens masked
+        masked_indices = torch.tensor([[False, False, False]], dtype=torch.bool)
+        p_mask = torch.tensor([[0.1, 0.1, 0.1]], dtype=torch.float)
 
-        # Only special tokens (which won't be masked)
-        input_ids = torch.tensor([[1, 0, 2]], dtype=torch.long)
-
-        loss, _ = diffusion_trainer_instance._compute_diffusion_loss(
-            mock_model, input_ids
+        loss = diffusion_model_instance._compute_diffusion_loss(
+            input_ids=input_ids,
+            logits=logits,
+            masked_indices=masked_indices,
+            p_mask=p_mask,
         )
 
         # Loss should be zero when no tokens are masked
         assert loss.item() == 0.0
         assert loss.requires_grad
 
-    def test_cache_special_token_ids(self, diffusion_trainer_instance):
+    def test_cache_special_token_ids(self, diffusion_model_instance):
         """Test caching of special token IDs."""
         # Should cache BOS, EOS, PAD tokens
         expected_tokens = {0, 1, 2}  # pad, bos, eos
-        assert diffusion_trainer_instance._special_token_ids == expected_tokens
+        assert diffusion_model_instance._special_token_ids == expected_tokens
 
     def test_cache_special_token_ids_no_tokenizer(self):
         """Test caching when no tokenizer is available."""
-        trainer = object.__new__(DiffusionTrainer)  # Bypass __init__
-        trainer.processing_class = None
-        trainer._cache_special_token_ids()
+        # Mock the parent model initialization to avoid loading pretrained weights
+        with patch('transformers.models.llama.modeling_llama.LlamaForCausalLM.__init__'):
+            model = LlamaForDiffusionLM.__new__(LlamaForDiffusionLM)
+            model._cache_special_token_ids(None)
+            assert model._special_token_ids == set()
 
-        assert trainer._special_token_ids == set()
+    def test_forward_training_mode(self, diffusion_model_instance):
+        """Test forward pass in training mode."""
+        input_ids = torch.tensor([[1, 10, 20, 30, 2]], dtype=torch.long)
+        attention_mask = torch.tensor([[1, 1, 1, 1, 1]], dtype=torch.bool)
+        
+        # Mock the parent forward method
+        with patch.object(diffusion_model_instance.__class__.__bases__[1], 'forward') as mock_forward:
+            mock_output = Mock()
+            mock_output.logits = torch.randn(1, 5, 32000)
+            mock_forward.return_value = mock_output
+            
+            # Set training mode
+            diffusion_model_instance.training = True
+            
+            result = diffusion_model_instance.forward(
+                input_ids=input_ids,
+                attention_mask=attention_mask,
+                return_dict=True
+            )
+            
+            # Should call parent forward and compute loss
+            assert mock_forward.called
+            assert hasattr(result, 'loss')
 
-    def test_main_compute_loss_interface(self, diffusion_trainer_instance):
-        """Test the main compute_loss interface."""
-        # Mock model
-        mock_model = Mock()
-        mock_outputs = Mock()
-        mock_outputs.logits = torch.randn(1, 5, 1000)
-        mock_model.return_value = mock_outputs
-        mock_model.training = True
-
-        inputs = {
-            "input_ids": torch.tensor([[1, 10, 20, 30, 2]], dtype=torch.long),
-            "attention_mask": torch.tensor([[1, 1, 1, 1, 1]], dtype=torch.long),
-            "labels": torch.tensor([[-100, -100, 20, 30, 2]], dtype=torch.long),
-        }
-
-        # Test without return_outputs
-        loss = diffusion_trainer_instance.compute_loss(mock_model, inputs)
-        assert isinstance(loss, torch.Tensor)
-
-        # Test with return_outputs
-        loss, outputs = diffusion_trainer_instance.compute_loss(
-            mock_model, inputs, return_outputs=True
-        )
-        assert isinstance(loss, torch.Tensor)
-        assert outputs == mock_outputs
-
-    def test_missing_input_ids_raises_error(self, diffusion_trainer_instance):
-        """Test that missing input_ids raises ValueError."""
-        mock_model = Mock()
-        inputs = {"attention_mask": torch.tensor([[1, 1, 1]])}
-
-        with pytest.raises(ValueError, match="input_ids is required"):
-            diffusion_trainer_instance.compute_loss(mock_model, inputs)
+    def test_forward_inference_mode(self, diffusion_model_instance):
+        """Test forward pass in inference mode."""
+        input_ids = torch.tensor([[1, 10, 20, 30, 2]], dtype=torch.long)
+        
+        # Mock the parent forward method
+        with patch.object(diffusion_model_instance.__class__.__bases__[1], 'forward') as mock_forward:
+            mock_output = Mock()
+            mock_forward.return_value = mock_output
+            
+            # Set inference mode
+            diffusion_model_instance.training = False
+            
+            result = diffusion_model_instance.forward(
+                input_ids=input_ids,
+                return_dict=True
+            )
+            
+            # Should just call parent forward without diffusion processing
+            assert mock_forward.called
+            assert result == mock_output