diff --git a/src/axolotl/utils/schemas/validation.py b/src/axolotl/utils/schemas/validation.py
index 56a70ec48..292159bb8 100644
--- a/src/axolotl/utils/schemas/validation.py
+++ b/src/axolotl/utils/schemas/validation.py
@@ -1066,23 +1066,23 @@ class ModelCompatibilityValidationMixin:
             raise ValueError("gradient_checkpointing is not supported for MPT models")
         return self
 
-    @model_validator(mode="after")
-    def check_offload_grad_checkpointing(self):
-        if self.gradient_checkpointing and self.gradient_checkpointing == "unsloth":
-            LOG.warning(
-                "`unsloth` is deprecated for gradient_checkpointing, use `offload`"
-            )
-            self.gradient_checkpointing = "offload"
-        return self
-
     @model_validator(mode="after")
     def check_gradient_checkpointing_w_offload(self):
         if self.gradient_checkpointing == "offload":
             LOG.warning(
-                "`offload` is deprecated for gradient_checkpointing, use `activation_offloading: true`"
+                "`offload` is deprecated for gradient_checkpointing, use `activation_offloading: true` or `activation_offloading: legacy`"
             )
             self.gradient_checkpointing = True
-            self.activation_offloading = True
+            if self.adapter and "lora" in self.adapter:
+                LOG.warning(
+                    "offloading with CUDA streams is not supported for LoRA adapters, using the `activation_offloading: legacy` implementation."
+                )
+                self.activation_offloading = "legacy"
+            else:
+                LOG.warning(
+                    "`offload` uses a new stream implementation; to use the previous implementation, use `activation_offloading: legacy`"
+                )
+                self.activation_offloading = True
         if self.gradient_checkpointing == "offload_disk":
             LOG.warning(
                 "`offload_disk` is deprecated for gradient_checkpointing, use `activation_offloading: disk`"
@@ -1091,6 +1091,19 @@ class ModelCompatibilityValidationMixin:
             self.activation_offloading = "disk"
         return self
 
+    @model_validator(mode="after")
+    def check_activation_offloading_w_lora(self):
+        if (
+            self.activation_offloading is True
+            and self.adapter
+            and "lora" in self.adapter
+        ):
+            LOG.warning(
+                "activation_offloading with CUDA streams is not supported for LoRA adapters. Setting `activation_offloading: legacy`"
+            )
+            self.activation_offloading = "legacy"
+        return self
+
     @model_validator(mode="after")
     def check_activation_offloading_wo_gc(self):
         if self.activation_offloading and not self.gradient_checkpointing:
diff --git a/tests/utils/schemas/validation/test_activation_offloading.py b/tests/utils/schemas/validation/test_activation_offloading.py
new file mode 100644
index 000000000..92ac8f45c
--- /dev/null
+++ b/tests/utils/schemas/validation/test_activation_offloading.py
@@ -0,0 +1,91 @@
+"""Test for config validation for activation offloading."""
+
+from axolotl.utils.config import validate_config
+from axolotl.utils.dict import DictDefault
+
+
+class TestActivationOffloading:
+    """
+    Test cases for activation offloading schema validation
+    """
+
+    def test_gc_converts_offload_wo_lora(self, min_base_cfg):
+        cfg = (
+            DictDefault(
+                gradient_checkpointing="offload",
+            )
+            | min_base_cfg
+        )
+
+        cfg = validate_config(cfg)
+        assert cfg.gradient_checkpointing is True
+        assert cfg.activation_offloading is True
+
+    def test_gc_converts_offload_w_lora(self, min_base_cfg):
+        cfg = (
+            DictDefault(
+                gradient_checkpointing="offload",
+                adapter="lora",
+            )
+            | min_base_cfg
+        )
+
+        cfg = validate_config(cfg)
+        assert cfg.gradient_checkpointing is True
+        assert cfg.activation_offloading == "legacy"
+
+    def test_gc_converts_offload_w_qlora(self, min_base_cfg):
+        cfg = (
+            DictDefault(
+                gradient_checkpointing="offload",
+                adapter="qlora",
+                load_in_4bit=True,
+            )
+            | min_base_cfg
+        )
+
+        cfg = validate_config(cfg)
+        assert cfg.gradient_checkpointing is True
+        assert cfg.activation_offloading == "legacy"
+
+    def test_ac_impl_changes_w_lora(self, min_base_cfg):
+        cfg = (
+            DictDefault(
+                gradient_checkpointing=True,
+                activation_offloading=True,
+                adapter="lora",
+            )
+            | min_base_cfg
+        )
+
+        cfg = validate_config(cfg)
+        assert cfg.gradient_checkpointing is True
+        assert cfg.activation_offloading == "legacy"
+
+    def test_ac_impl_changes_w_qlora(self, min_base_cfg):
+        cfg = (
+            DictDefault(
+                gradient_checkpointing=True,
+                activation_offloading=True,
+                adapter="qlora",
+                load_in_4bit=True,
+            )
+            | min_base_cfg
+        )
+
+        cfg = validate_config(cfg)
+        assert cfg.gradient_checkpointing is True
+        assert cfg.activation_offloading == "legacy"
+
+    def test_ac_offload_impl_noop_wo_adapter(self, min_base_cfg):
+        cfg = (
+            DictDefault(
+                gradient_checkpointing=True,
+                activation_offloading=True,
+            )
+            | min_base_cfg
+        )
+
+        cfg = validate_config(cfg)
+        assert cfg.gradient_checkpointing is True
+        assert cfg.activation_offloading is True