diff --git a/src/axolotl/integrations/base.py b/src/axolotl/integrations/base.py
index 94ee8d4b1..4bf7581d6 100644
--- a/src/axolotl/integrations/base.py
+++ b/src/axolotl/integrations/base.py
@@ -147,7 +147,7 @@ class BasePlugin:
         """
 
     # pylint: disable=unused-argument
-    def get_trainer_cls(self, cfg: DictDefault) -> Trainer | None:
+    def get_trainer_cls(self, cfg: DictDefault) -> type[Trainer] | None:
         """Returns a custom class for the trainer.
 
         Args:
diff --git a/src/axolotl/integrations/diffusion/README.md b/src/axolotl/integrations/diffusion/README.md
index 7a1e909a6..b4176dd60 100644
--- a/src/axolotl/integrations/diffusion/README.md
+++ b/src/axolotl/integrations/diffusion/README.md
@@ -27,15 +27,24 @@ Add the following to your Axolotl configuration YAML:
 ```yaml
 # Enable diffusion LM training plugin
 plugins:
-  - diffusion.DiffusionPlugin
+  - axolotl.integrations.diffusion.DiffusionPlugin
 
 # Diffusion-specific configuration
-noise_schedule: "linear"  # or "cosine"
+noise_schedule: linear  # or "cosine"
 min_mask_ratio: 0.1
 max_mask_ratio: 0.9
 num_diffusion_steps: 128
 eps: 1e-3
 importance_weighting: true
+mask_token_id: 128002
+
+# Sample generation (optional)
+generate_samples: true
+generation_interval: 100
+num_generation_samples: 3
+generation_steps: 128
+generation_temperature: 0.0
+generation_max_length: 100
 
 # Model configuration
 base_model: meta-llama/Llama-3.2-1B
@@ -88,24 +97,37 @@ loss = sum(cross_entropy(pred, target) / p_mask) / total_tokens
 - Consider using gradient checkpointing, torch.compile,
 
 ### Training Stability
-- Start with `noise_schedule: "linear"` for more predictable behavior
-- Enable `importance_weighting` for better gradient scaling
+- Start with `noise_schedule: linear` for more predictable behavior
+- Enable `importance_weighting: true` for better gradient scaling
 
 ### Convergence
 - Monitor the `diffusion_loss` and `diffusion_accuracy` metrics
 - Expect different loss curves compared to standard language modeling
 
+## Sample Generation
+
+When `generate_samples: true`, the plugin generates samples during training:
+
+```
+📝 Sample 1:
+   Original (45 tokens): The quick brown fox jumps over the lazy dog...
+   Masked (18/45 tokens, 40.0%): The [MASK] [MASK] fox [MASK] over [MASK] lazy [MASK]...
+   Generated: The quick brown fox jumps over the lazy dog...
+```
+
+Samples are logged to console and wandb (if enabled).
+
 ## Metrics and Monitoring
 
 The plugin adds several metrics to track diffusion training:
 
-- `train/diffusion_loss`: Weighted diffusion loss
-- `train/diffusion_accuracy`: Accuracy on masked tokens
-- `train/diffusion_mask_ratio`: Average fraction of tokens masked
-- `train/diffusion_num_masked_tokens`: Number of tokens masked
-- `train/diffusion_avg_p_mask`: Average masking probability
-- `train/diffusion_ce_loss`: Unweighted cross-entropy loss
-- `train/diffusion_importance_weight_avg`: Average importance weight
+- `train/loss`: Weighted diffusion loss
+- `train/accuracy`: Accuracy on masked tokens
+- `train/mask_ratio`: Average fraction of tokens masked
+- `train/num_masked_tokens`: Number of tokens masked
+- `train/avg_p_mask`: Average masking probability
+- `train/ce_loss`: Unweighted cross-entropy loss
+- `train/importance_weight_avg`: Average importance weight
 
 ## Limitations
 
diff --git a/src/axolotl/integrations/diffusion/args.py b/src/axolotl/integrations/diffusion/args.py
index 5dbb08a3d..1f6263e47 100644
--- a/src/axolotl/integrations/diffusion/args.py
+++ b/src/axolotl/integrations/diffusion/args.py
@@ -46,5 +46,27 @@ class DiffusionArgs(BaseModel):
         description=(
             "Token ID to use for masking. Default is 128002 "
             "(<|reserved_special_token_0|> for Llama 3.2)"
-        )
+        ),
+    )
+
+    # Sample generation config
+    generate_samples: bool = Field(
+        default=True, description="Enable sample generation during training"
+    )
+    generation_interval: int = Field(
+        default=100, ge=1, description="Generate samples every N steps"
+    )
+    num_generation_samples: int = Field(
+        default=3, ge=1, description="Number of samples to generate each time"
+    )
+    generation_steps: int = Field(
+        default=128, ge=1, description="Number of diffusion steps for generation"
+    )
+    generation_temperature: float = Field(
+        default=0.0,
+        ge=0.0,
+        description="Temperature for generation sampling (0.0 = deterministic)",
+    )
+    generation_max_length: int = Field(
+        default=100, ge=1, description="Maximum sequence length for generation"
     )
diff --git a/src/axolotl/integrations/diffusion/callbacks.py b/src/axolotl/integrations/diffusion/callbacks.py
new file mode 100644
index 000000000..fafd99919
--- /dev/null
+++ b/src/axolotl/integrations/diffusion/callbacks.py
@@ -0,0 +1,115 @@
+"""Callbacks for diffusion training."""
+
+import wandb
+from transformers.trainer_callback import TrainerCallback, TrainerControl, TrainerState
+from transformers.training_args import TrainingArguments
+
+from axolotl.utils.logging import get_logger
+
+from .generation import generate_samples
+
+LOG = get_logger(__name__)
+
+
+class DiffusionGenerationCallback(TrainerCallback):
+    """Callback for generating samples during diffusion training."""
+
+    def __init__(self, trainer):
+        self.trainer = trainer
+
+    # pylint: disable=unused-argument
+    def on_step_end(
+        self,
+        args: TrainingArguments,
+        state: TrainerState,
+        control: TrainerControl,
+        **kwargs,
+    ):
+        """Generate samples at specified intervals."""
+        # Only generate samples at the specified interval and after step 0
+        if (
+            state.global_step > 0
+            and state.global_step % self.trainer.config.generation_interval == 0
+            and hasattr(self.trainer, "eval_dataset")
+            and self.trainer.eval_dataset is not None
+        ):
+
+            LOG.info(
+                f"Generating {self.trainer.config.num_generation_samples} samples at step {state.global_step}..."
+            )
+
+            # Create a simple dataloader from eval dataset for sampling
+            eval_dataloader = self.trainer.get_eval_dataloader()
+
+            # Generate samples
+            samples = generate_samples(
+                model=self.trainer.model,
+                tokenizer=self.trainer.tokenizer,
+                val_dataloader=eval_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,
+            )
+
+            # Log samples
+            self._log_samples(samples, state.global_step)
+
+    def _log_samples(self, samples: list, step: int):
+        """Log generated samples."""
+        if not samples:
+            return
+
+        LOG.info("=" * 60)
+        LOG.info("GENERATED SAMPLES")
+        LOG.info("=" * 60)
+
+        for i, sample_data in enumerate(samples, 1):
+            original = sample_data["original"]
+            masked = sample_data["masked"]
+            generated = sample_data["generated"]
+            mask_ratio = sample_data["mask_ratio"]
+            masked_tokens = sample_data["masked_tokens"]
+            total_tokens = sample_data["total_tokens"]
+
+            LOG.info(f"\nSample {i}:")
+            LOG.info(f"\tOriginal ({total_tokens} tokens): {original}")
+            LOG.info(
+                f"\tMasked ({masked_tokens}/{total_tokens} tokens, "
+                f"{mask_ratio:.1%}): {masked}"
+            )
+            LOG.info(f"\tGenerated: {generated}")
+
+        LOG.info("=" * 60)
+
+        if self.trainer.config.use_wandb and self.trainer.state.is_world_process_zero:
+            if wandb.run is not None:
+                wandb.log(
+                    {
+                        "generated_samples": wandb.Table(
+                            columns=[
+                                "step",
+                                "original",
+                                "masked",
+                                "generated",
+                                "mask_ratio",
+                                "masked_tokens",
+                                "total_tokens",
+                            ],
+                            data=[
+                                [
+                                    step,
+                                    sample["original"],
+                                    sample["masked"],
+                                    sample["generated"],
+                                    f"{sample['mask_ratio']:.1%}",
+                                    sample["masked_tokens"],
+                                    sample["total_tokens"],
+                                ]
+                                for sample in samples
+                            ],
+                        )
+                    },
+                    step=step,
+                )
diff --git a/src/axolotl/integrations/diffusion/generation.py b/src/axolotl/integrations/diffusion/generation.py
new file mode 100644
index 000000000..d019ec023
--- /dev/null
+++ b/src/axolotl/integrations/diffusion/generation.py
@@ -0,0 +1,267 @@
+"""Sample generation utilities for diffusion training."""
+
+import logging
+from typing import Any, List, Optional
+
+import torch
+
+logger = logging.getLogger(__name__)
+
+
+def generate_samples(
+    model: torch.nn.Module,
+    tokenizer: Any,
+    val_dataloader: Optional[Any] = None,
+    num_generation_samples: int = 3,
+    max_length: int = 100,
+    num_diffusion_steps: int = 128,
+    temperature: float = 0.0,
+    mask_token_id: int = 32000,
+) -> List[dict]:
+    """
+    Generate text samples using the diffusion model by randomly masking sequences
+    from the validation dataset and running the reverse diffusion process.
+
+    Args:
+        model: The wrapped or unwrapped model
+        tokenizer: Tokenizer for encoding/decoding
+        val_dataloader: Validation dataloader (for sampling sequences)
+        num_generation_samples: Number of samples to generate
+        max_length: Maximum length of sequences to use
+        num_diffusion_steps: Number of diffusion steps for generation
+        temperature: Temperature for sampling (0.0 = deterministic)
+        mask_token_id: Token ID used for masking
+
+    Returns:
+        List of dictionaries with original text, masked text, and generated text
+    """
+    if val_dataloader is None:
+        logger.warning("No validation dataloader provided, cannot generate samples")
+        return []
+
+    # Get the actual model (unwrap if needed)
+    unwrapped_model = model.module if hasattr(model, "module") else model
+    unwrapped_model.eval()
+    generations = []
+
+    # Sample sequences from validation dataset
+    sampled_sequences = _sample_sequences_from_dataloader(
+        val_dataloader, num_generation_samples, max_length, unwrapped_model.device
+    )
+    logger.info(f"Sampled {len(sampled_sequences)} sequences from validation dataset")
+
+    # Generate samples using reverse diffusion process
+    with torch.no_grad():
+        for original_sequence in sampled_sequences:
+            generation_result = _generate(
+                unwrapped_model,
+                tokenizer,
+                original_sequence,
+                num_diffusion_steps,
+                temperature,
+                mask_token_id,
+            )
+            generations.append(generation_result)
+
+    unwrapped_model.train()
+    return generations
+
+
+def _sample_sequences_from_dataloader(
+    val_dataloader: Any, num_samples: int, max_length: int, device: torch.device
+) -> List[torch.Tensor]:
+    """Sample sequences from validation dataloader."""
+    sampled_sequences = []
+    sample_count = 0
+
+    # Add randomness by skipping a random number of batches
+    skip_batches = torch.randint(0, 6, (1,)).item()
+    batch_count = 0
+
+    for batch in val_dataloader:
+        # Skip some batches for variety
+        if batch_count < skip_batches:
+            batch_count += 1
+            continue
+
+        if sample_count >= num_samples:
+            break
+
+        batch_count += 1
+        input_ids = batch["input_ids"]
+        attention_mask = batch.get("attention_mask")
+
+        # Randomly sample from sequences in this batch
+        batch_indices = torch.randperm(input_ids.size(0)).tolist()
+
+        for i in batch_indices:
+            if sample_count >= num_samples:
+                break
+
+            # Get actual sequence length (non-padded)
+            if attention_mask is not None:
+                seq_len = attention_mask[i].sum().item()
+            else:
+                seq_len = input_ids.size(1)
+
+            # Limit sequence length to max_length
+            actual_length = min(seq_len, max_length)
+            if actual_length < 10:  # Skip very short sequences
+                continue
+
+            # Extract the sequence
+            sequence = input_ids[i][:actual_length].unsqueeze(0).to(device)
+            sampled_sequences.append(sequence)
+            sample_count += 1
+
+    return sampled_sequences
+
+
+def _generate(
+    model: torch.nn.Module,
+    tokenizer: Any,
+    original_sequence: torch.Tensor,
+    num_diffusion_steps: int,
+    temperature: float,
+    mask_token_id: int,
+) -> dict:
+    """Generate a single sample using reverse diffusion."""
+    # Get original text for comparison
+    original_text = tokenizer.decode(
+        original_sequence[0].cpu(), skip_special_tokens=True
+    )
+
+    # Apply custom masking with random ratio (10% to 70%)
+    total_tokens = original_sequence.size(1)
+    min_ratio, max_ratio = 0.1, 0.7
+    target_mask_ratio = torch.rand(1).item() * (max_ratio - min_ratio) + min_ratio
+    target_masked_tokens = int(total_tokens * target_mask_ratio)
+
+    # Create random mask indices
+    mask_positions = torch.randperm(total_tokens)[:target_masked_tokens]
+    masked_indices = torch.zeros(
+        1, total_tokens, dtype=torch.bool, device=original_sequence.device
+    )
+    masked_indices[0, mask_positions] = True
+
+    # Create masked sequence
+    masked_sequence = original_sequence.clone()
+    masked_sequence[masked_indices] = mask_token_id
+
+    # Calculate actual mask ratio
+    masked_tokens = masked_indices.sum().item()
+    mask_ratio = masked_tokens / total_tokens
+
+    # Get masked text for comparison
+    masked_text = tokenizer.decode(masked_sequence[0].cpu(), skip_special_tokens=False)
+    # Clean up mask token representation
+    masked_text = _clean_masked_text(masked_text, tokenizer, mask_token_id)
+
+    # Run reverse diffusion process
+    sequence = masked_sequence.clone()
+    for step in range(num_diffusion_steps):
+        sequence = _diffusion_step(
+            model, sequence, step, num_diffusion_steps, temperature, mask_token_id
+        )
+
+    # Get final generated text
+    generated_text = tokenizer.decode(sequence[0].cpu(), skip_special_tokens=True)
+
+    return {
+        "original": original_text,
+        "masked": masked_text,
+        "generated": generated_text,
+        "mask_ratio": mask_ratio,
+        "masked_tokens": masked_tokens,
+        "total_tokens": total_tokens,
+        "formatted": (
+            f"Original: '{original_text}' → Masked: '{masked_text}' "
+            f"({mask_ratio:.1%}) → Generated: '{generated_text}'"
+        ),
+    }
+
+
+def _clean_masked_text(masked_text: str, tokenizer: Any, mask_token_id: int) -> str:
+    """Clean up masked text for display."""
+    # Get the mask token representation from the tokenizer
+    mask_token_repr = tokenizer.decode([mask_token_id], skip_special_tokens=False)
+    cleaned = masked_text.replace(mask_token_repr, "[MASK]")
+
+    # Clean up special tokens and whitespace
+    cleaned = cleaned.replace("<s>", "").replace("</s>", "").strip()
+    cleaned = " ".join(cleaned.split())
+
+    return cleaned
+
+
+def _diffusion_step(
+    model: torch.nn.Module,
+    sequence: torch.Tensor,
+    step: int,
+    num_diffusion_steps: int,
+    temperature: float,
+    mask_token_id: int,
+) -> torch.Tensor:
+    """Perform a single diffusion step with remasking."""
+    # Only process if there are masked tokens remaining
+    current_mask = sequence == mask_token_id
+    if not current_mask.any():
+        return sequence
+
+    # Create bidirectional attention mask for diffusion
+    batch_size, seq_len = sequence.shape
+    attention_mask = torch.ones(
+        batch_size, 1, seq_len, seq_len, dtype=torch.bool, device=sequence.device
+    )
+
+    # Forward pass
+    outputs = model(input_ids=sequence, attention_mask=attention_mask)
+    logits = outputs.logits
+
+    # Only sample at currently masked positions
+    if current_mask.any():
+        masked_logits = logits[current_mask]
+
+        # Apply temperature scaling
+        if temperature > 0:
+            scaled_logits = masked_logits / temperature
+        else:
+            scaled_logits = masked_logits
+
+        # Suppress mask token in outputs
+        scaled_logits[:, mask_token_id] = -float("inf")
+
+        # Sample predictions
+        if temperature > 0:
+            # Add Gumbel noise for sampling
+            gumbel_noise = -torch.log(
+                -torch.log(torch.rand_like(scaled_logits, dtype=torch.float32))
+            )
+            gumbel_logits = scaled_logits + gumbel_noise
+            predicted_tokens = torch.argmax(gumbel_logits, dim=-1)
+        else:
+            # Deterministic sampling when temperature is 0
+            predicted_tokens = torch.argmax(scaled_logits, dim=-1)
+
+        # Calculate probabilities for confidence scoring
+        probs = torch.softmax(scaled_logits, dim=-1)
+        predicted_token_probs = probs[range(len(predicted_tokens)), predicted_tokens]
+
+        # Determine how many tokens to unmask this step
+        remaining_masked = current_mask.sum().item()
+        if step == num_diffusion_steps - 1:
+            num_to_unmask = remaining_masked
+        else:
+            unmask_ratio = 1.0 / (num_diffusion_steps - step)
+            num_to_unmask = max(1, int(remaining_masked * unmask_ratio))
+
+        # Select highest confidence predictions to unmask
+        if num_to_unmask >= remaining_masked:
+            sequence[current_mask] = predicted_tokens
+        else:
+            _, top_indices = predicted_token_probs.topk(num_to_unmask)
+            mask_positions = torch.where(current_mask)[1]
+            positions_to_unmask = mask_positions[top_indices]
+            sequence[0, positions_to_unmask] = predicted_tokens[top_indices]
+
+    return sequence
diff --git a/src/axolotl/integrations/diffusion/plugin.py b/src/axolotl/integrations/diffusion/plugin.py
index 76eea006d..c31f48b03 100644
--- a/src/axolotl/integrations/diffusion/plugin.py
+++ b/src/axolotl/integrations/diffusion/plugin.py
@@ -1,6 +1,7 @@
 """Diffusion LM training plugin for Axolotl."""
 
-from transformers import PreTrainedModel, Trainer
+from peft import PeftModel
+from transformers import PreTrainedModel
 
 from axolotl.integrations.base import BasePlugin
 from axolotl.utils.dict import DictDefault
@@ -27,14 +28,14 @@ class DiffusionPlugin(BasePlugin):
         """Returns the pydantic model for LLaDA plugin arguments."""
         return "axolotl.integrations.diffusion.DiffusionArgs"
 
-    def post_model_load(self, cfg: DictDefault, model: PreTrainedModel):
+    def post_model_load(self, cfg: DictDefault, model: PreTrainedModel | PeftModel):
         """Perform actions after model is loaded."""
         self.cfg = cfg
 
-    def get_trainer_cls(self, cfg: DictDefault) -> Trainer | None:
+    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: Trainer):
+    def post_trainer_create(self, cfg: DictDefault, trainer: DiffusionTrainer):
         """Configure trainer after creation."""
         trainer.set_config(cfg)
diff --git a/src/axolotl/integrations/diffusion/trainer.py b/src/axolotl/integrations/diffusion/trainer.py
index 7b3181f32..be1bb9838 100644
--- a/src/axolotl/integrations/diffusion/trainer.py
+++ b/src/axolotl/integrations/diffusion/trainer.py
@@ -10,6 +10,8 @@ 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__)
 
 
@@ -18,14 +20,18 @@ class DiffusionTrainer(AxolotlTrainer):  # pylint: disable=too-many-ancestors
 
     def __init__(self, *args, **kwargs):
         super().__init__(*args, **kwargs)
-        self._config = None
+        self.config = None
         self._special_token_ids = None
 
     def set_config(self, config: DictDefault):
         """Set config for diffusion training."""
-        self._config = config
+        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,
@@ -111,19 +117,19 @@ class DiffusionTrainer(AxolotlTrainer):  # pylint: disable=too-many-ancestors
             for token_id in self._special_token_ids:
                 special_token_mask |= input_ids == token_id
 
-        # Create random mask based on p_mask    
+        # 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
+        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
@@ -147,7 +153,7 @@ class DiffusionTrainer(AxolotlTrainer):  # pylint: disable=too-many-ancestors
         batch_size, seq_len = input_ids.shape
         device = input_ids.device
 
-        if attention_mask is None or not self._config.sample_packing:
+        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
             )
@@ -186,7 +192,7 @@ class DiffusionTrainer(AxolotlTrainer):  # pylint: disable=too-many-ancestors
         """
         # Apply forward process
         noisy_batch, masked_indices, p_mask = self._forward_process(
-            input_ids, attention_mask, labels, self._config.eps
+            input_ids, attention_mask, labels, self.config.eps
         )
 
         # Create bidirectional attention mask
@@ -214,7 +220,7 @@ class DiffusionTrainer(AxolotlTrainer):  # pylint: disable=too-many-ancestors
                 masked_logits.float(), masked_targets, reduction="none"
             )
 
-            if self._config.importance_weighting:
+            if self.config.importance_weighting:
                 masked_p_mask = masked_p_mask.float()
                 weighted_loss = token_loss / masked_p_mask
             else:
@@ -222,26 +228,28 @@ class DiffusionTrainer(AxolotlTrainer):  # pylint: disable=too-many-ancestors
 
             # Final loss: sum weighted losses, normalize
             if labels is not None:
-                # For SFT data: normalize by answer length per sample as per LLaDA guidelines
+                # 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)
+                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
@@ -262,14 +270,14 @@ class DiffusionTrainer(AxolotlTrainer):  # pylint: disable=too-many-ancestors
             "avg_p_mask": p_mask[masked_indices].mean().item(),
             "ce_loss": ce_loss.item(),
         }
-        
+
         # Add SFT-specific metrics
         if labels is not None:
             answer_mask = labels != -100
             metrics["answer_ratio"] = answer_mask.float().mean().item()
             metrics["avg_answer_length"] = answer_mask.sum(dim=1).float().mean().item()
 
-        if self._config.importance_weighting:
+        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"
diff --git a/tests/e2e/test_diffusion.py b/tests/e2e/test_diffusion.py
index 4f8735d77..df88cb730 100644
--- a/tests/e2e/test_diffusion.py
+++ b/tests/e2e/test_diffusion.py
@@ -1,6 +1,4 @@
-"""
-E2E smoke test for diffusion training plugin
-"""
+"""E2E smoke test for diffusion training plugin."""
 
 from axolotl.common.datasets import load_datasets
 from axolotl.train import train
@@ -11,13 +9,12 @@ from tests.e2e.utils import check_model_output_exists
 
 
 class TestDiffusion:
-    """
-    Test case for diffusion training plugin
-    """
+    """Test case for diffusion training plugin."""
 
     def test_diffusion_smoke_test(self, temp_dir):
         """
-        Smoke test for diffusion training to ensure the plugin loads and trains without error.
+        Smoke test for diffusion training to ensure the plugin loads and trains without
+        error.
         """
         cfg = DictDefault(
             {
@@ -36,7 +33,7 @@ class TestDiffusion:
                     },
                 ],
                 "num_epochs": 1,
-                "max_steps": 3,  # Very short for smoke test
+                "max_steps": 3,
                 "micro_batch_size": 1,
                 "gradient_accumulation_steps": 1,
                 "output_dir": temp_dir,
@@ -48,33 +45,23 @@ class TestDiffusion:
                 "save_first_step": False,
                 "logging_steps": 1,
                 "eval_steps": 3,
-                "plugins": ["axolotl.integrations.diffusion.DiffusionPlugin"],
                 # Diffusion-specific config
-                "diffusion_mask_token_id": 32000,
+                "plugins": ["axolotl.integrations.diffusion.DiffusionPlugin"],
+                "diffusion_mask_token_id": 16,
                 "diffusion_eps": 1e-3,
                 "diffusion_importance_weighting": False,
             }
         )
 
-        # Normalize and validate config
-        cfg = normalize_config(cfg)
         cfg = validate_config(cfg)
+        normalize_config(cfg)
+        dataset_meta = load_datasets(cfg=cfg)
 
-        # Load datasets to ensure they work with diffusion training
-        datasets_meta = load_datasets(cfg=cfg, cli_args=DictDefault({}))
-        assert datasets_meta.train_dataset is not None
-        assert len(datasets_meta.train_dataset) > 0
-
-        # Run training
-        train(cfg=cfg, cli_args=DictDefault({}), dataset_meta=datasets_meta)
-
-        # Check that model was saved
-        check_model_output_exists(cfg)
+        train(cfg=cfg, dataset_meta=dataset_meta)
+        check_model_output_exists(temp_dir, cfg)
 
     def test_diffusion_sft_labels(self, temp_dir):
-        """
-        Test that diffusion training properly handles SFT data with labels.
-        """
+        """Test that diffusion training properly handles SFT data with labels."""
         cfg = DictDefault(
             {
                 "base_model": "HuggingFaceTB/SmolLM2-135M",
@@ -92,7 +79,7 @@ class TestDiffusion:
                     },
                 ],
                 "num_epochs": 1,
-                "max_steps": 2,  # Very short for smoke test
+                "max_steps": 3,
                 "micro_batch_size": 1,
                 "gradient_accumulation_steps": 1,
                 "output_dir": temp_dir,
@@ -104,35 +91,29 @@ class TestDiffusion:
                 "save_first_step": False,
                 "logging_steps": 1,
                 "eval_steps": 2,
-                "plugins": ["axolotl.integrations.diffusion.DiffusionPlugin"],
                 # Diffusion-specific config
-                "diffusion_mask_token_id": 32000,
+                "plugins": ["axolotl.integrations.diffusion.DiffusionPlugin"],
+                "diffusion_mask_token_id": 16,
                 "diffusion_eps": 1e-3,
-                "diffusion_importance_weighting": True,  # Test importance weighting
+                "diffusion_importance_weighting": True,
                 # Ensure we have proper SFT labels
-                "train_on_inputs": False,  # This ensures prompt tokens get -100 labels
+                "train_on_inputs": False,
             }
         )
 
-        # Normalize and validate config
-        cfg = normalize_config(cfg)
         cfg = validate_config(cfg)
+        normalize_config(cfg)
+        dataset_meta = load_datasets(cfg=cfg)
 
-        # Load datasets
-        datasets_meta = load_datasets(cfg=cfg, cli_args=DictDefault({}))
-        
         # Verify that the dataset has labels
-        sample = datasets_meta.train_dataset[0]
+        sample = dataset_meta.train_dataset[0]
         assert "labels" in sample, "SFT dataset should have labels"
-        
+
         # Check that some labels are -100 (prompt tokens)
         labels = sample["labels"]
         if hasattr(labels, "tolist"):
             labels = labels.tolist()
         assert -100 in labels, "SFT dataset should have -100 labels for prompt tokens"
 
-        # Run training
-        train(cfg=cfg, cli_args=DictDefault({}), dataset_meta=datasets_meta)
-
-        # Check that model was saved
-        check_model_output_exists(cfg)
\ No newline at end of file
+        train(cfg=cfg, dataset_meta=dataset_meta)
+        check_model_output_exists(temp_dir, cfg)
diff --git a/tests/integrations/test_diffusion.py b/tests/integrations/test_diffusion.py
index 6f316059e..583597238 100644
--- a/tests/integrations/test_diffusion.py
+++ b/tests/integrations/test_diffusion.py
@@ -1,8 +1,11 @@
 """Tests for diffusion trainer integration."""
 
+# pylint: disable=redefined-outer-name,protected-access
+
+from unittest.mock import Mock
+
 import pytest
 import torch
-from unittest.mock import Mock
 
 from axolotl.integrations.diffusion.trainer import DiffusionTrainer
 from axolotl.utils.dict import DictDefault
@@ -21,113 +24,122 @@ 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 DictDefault(
+        {
+            "mask_token_id": 32000,
+            "eps": 1e-3,
+            "importance_weighting": False,
+            "sample_packing": False,
+        }
+    )
 
 
 @pytest.fixture
-def diffusion_trainer(mock_tokenizer, diffusion_config):
-    """Create a diffusion trainer instance."""
-    # Create a mock model to satisfy Trainer's requirements
-    mock_model = Mock()
-    mock_model.training = True
-    
-    trainer = DiffusionTrainer(model=mock_model)
+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.set_config(diffusion_config)
+    trainer.store_metrics = Mock()  # Mock metrics storage
     return trainer
 
 
 class TestDiffusionTrainer:
     """Test the DiffusionTrainer class."""
 
-    def test_forward_process_basic(self, diffusion_trainer):
+    def test_forward_process_basic(self, diffusion_trainer_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._forward_process(
-            input_ids, eps=0.1
+
+        noisy_batch, masked_indices, p_mask = (
+            diffusion_trainer_instance._forward_process(input_ids, eps=0.1)
         )
-        
+
         # Check shapes
         assert noisy_batch.shape == input_ids.shape
         assert masked_indices.shape == input_ids.shape
         assert p_mask.shape == input_ids.shape
-        
+
         # Check that special tokens are not masked
         special_token_positions = (input_ids == 1) | (input_ids == 2) | (input_ids == 0)
         assert not masked_indices[special_token_positions].any()
-        
+
         # Check that mask token is applied
-        mask_token_id = diffusion_trainer._config.mask_token_id
+        mask_token_id = diffusion_trainer_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):
+    def test_forward_process_with_labels(self, diffusion_trainer_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._forward_process(
-            input_ids, labels=labels, eps=0.1
+
+        noisy_batch, masked_indices, p_mask = (
+            diffusion_trainer_instance._forward_process(
+                input_ids, labels=labels, eps=0.1
+            )
         )
-        
+
         # Check shapes
         assert noisy_batch.shape == input_ids.shape
         assert masked_indices.shape == input_ids.shape
         assert p_mask.shape == input_ids.shape
-        
+
         # Check that only answer tokens can be masked (where labels != -100)
-        answer_mask = labels != -100
         non_answer_mask = labels == -100
-        
+
         # No masking should occur on non-answer tokens
         assert not masked_indices[non_answer_mask].any()
-        
-        # Check that probabilities are zero for non-answer tokens
-        assert (p_mask[non_answer_mask] == 0).all()
 
-    def test_forward_process_with_attention_mask(self, diffusion_trainer):
+        # p_mask should be the same for all positions (sampled timestep),
+        # but masking is only applied to answer tokens
+        assert p_mask.shape == input_ids.shape
+        # 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):
         """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)
-        
-        noisy_batch, masked_indices, p_mask = diffusion_trainer._forward_process(
+
+        _, masked_indices, p_mask = diffusion_trainer_instance._forward_process(
             input_ids, attention_mask=attention_mask, eps=0.1
         )
-        
+
         # Check that padding tokens are not masked
         padding_positions = attention_mask == 0
         assert not masked_indices[padding_positions].any()
         assert (p_mask[padding_positions] == 0).all()
 
-    def test_bidirectional_attention_mask_no_packing(self, diffusion_trainer):
+    def test_bidirectional_attention_mask_no_packing(self, diffusion_trainer_instance):
         """Test bidirectional attention mask without sample packing."""
         input_ids = torch.tensor([[1, 10, 20, 2]], dtype=torch.long)
-        
-        mask = diffusion_trainer._create_bidirectional_attention_mask(input_ids)
-        
+
+        mask = diffusion_trainer_instance._create_bidirectional_attention_mask(
+            input_ids
+        )
+
         # Should be all-to-all attention
         expected_shape = (1, 1, 4, 4)
         assert mask.shape == expected_shape
         assert mask.all()
 
-    def test_bidirectional_attention_mask_with_packing(self, diffusion_trainer):
+    def test_bidirectional_attention_mask_with_packing(
+        self, diffusion_trainer_instance
+    ):
         """Test bidirectional attention mask with sample packing."""
-        diffusion_trainer._config.sample_packing = True
+        diffusion_trainer_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._create_bidirectional_attention_mask(
+
+        mask = diffusion_trainer_instance._create_bidirectional_attention_mask(
             input_ids, attention_mask
         )
-        
+
         # Check that tokens within same sample can attend to each other
         # but not across samples
         assert mask[0, 0, 0, 1].item()  # First sample tokens can attend to each other
@@ -136,65 +148,59 @@ 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):
+    def test_compute_loss_basic(self, diffusion_trainer_instance):
         """Test basic loss computation."""
         # Mock model that returns logits
         mock_model = Mock()
         mock_outputs = Mock()
         vocab_size = 1000
         seq_len = 5
-        mock_outputs.logits = torch.randn(1, seq_len, vocab_size)
+        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)
-        
-        # Mock the store_metrics method
-        diffusion_trainer.store_metrics = Mock()
-        
-        loss, outputs = diffusion_trainer._compute_diffusion_loss(
+
+        loss, outputs = diffusion_trainer_instance._compute_diffusion_loss(
             mock_model, input_ids
         )
-        
+
         # 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.store_metrics.assert_called_once()
 
-    def test_compute_loss_with_labels(self, diffusion_trainer):
+        # Check that metrics were stored
+        diffusion_trainer_instance.store_metrics.assert_called_once()
+
+    def test_compute_loss_with_labels(self, diffusion_trainer_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)
+        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)
-        
-        # Mock the store_metrics method
-        diffusion_trainer.store_metrics = Mock()
-        
-        loss, outputs = diffusion_trainer._compute_diffusion_loss(
+
+        loss, _ = diffusion_trainer_instance._compute_diffusion_loss(
             mock_model, input_ids, labels=labels
         )
-        
+
         # Check that loss is computed
         assert isinstance(loss, torch.Tensor)
         assert loss.requires_grad
-        
+
         # Check that SFT metrics were added
-        call_args = diffusion_trainer.store_metrics.call_args[0][0]
+        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):
+    def test_compute_loss_no_masked_tokens(self, diffusion_trainer_instance):
         """Test loss computation when no tokens are masked."""
         # Mock model
         mock_model = Mock()
@@ -204,38 +210,33 @@ class TestDiffusionTrainer:
         mock_outputs.logits = torch.randn(1, seq_len, vocab_size)
         mock_model.return_value = mock_outputs
         mock_model.training = True
-        
+
         # Only special tokens (which won't be masked)
         input_ids = torch.tensor([[1, 0, 2]], dtype=torch.long)
-        
-        # Mock the store_metrics method
-        diffusion_trainer.store_metrics = Mock()
-        
-        loss, outputs = diffusion_trainer._compute_diffusion_loss(
+
+        loss, _ = diffusion_trainer_instance._compute_diffusion_loss(
             mock_model, input_ids
         )
-        
+
         # 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, mock_tokenizer):
+    def test_cache_special_token_ids(self, diffusion_trainer_instance):
         """Test caching of special token IDs."""
         # Should cache BOS, EOS, PAD tokens
         expected_tokens = {0, 1, 2}  # pad, bos, eos
-        assert diffusion_trainer._special_token_ids == expected_tokens
+        assert diffusion_trainer_instance._special_token_ids == expected_tokens
 
     def test_cache_special_token_ids_no_tokenizer(self):
         """Test caching when no tokenizer is available."""
-        # Create a mock model to satisfy Trainer's requirements
-        mock_model = Mock()
-        trainer = DiffusionTrainer(model=mock_model)
+        trainer = object.__new__(DiffusionTrainer)  # Bypass __init__
         trainer.processing_class = None
         trainer._cache_special_token_ids()
-        
+
         assert trainer._special_token_ids == set()
 
-    def test_main_compute_loss_interface(self, diffusion_trainer):
+    def test_main_compute_loss_interface(self, diffusion_trainer_instance):
         """Test the main compute_loss interface."""
         # Mock model
         mock_model = Mock()
@@ -243,31 +244,28 @@ class TestDiffusionTrainer:
         mock_outputs.logits = torch.randn(1, 5, 1000)
         mock_model.return_value = mock_outputs
         mock_model.training = True
-        
-        # Mock the store_metrics method
-        diffusion_trainer.store_metrics = Mock()
-        
+
         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.compute_loss(mock_model, inputs)
+        loss = diffusion_trainer_instance.compute_loss(mock_model, inputs)
         assert isinstance(loss, torch.Tensor)
-        
+
         # Test with return_outputs
-        loss, outputs = diffusion_trainer.compute_loss(
+        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):
+    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.compute_loss(mock_model, inputs)
\ No newline at end of file
+            diffusion_trainer_instance.compute_loss(mock_model, inputs)