diff --git a/examples/stable-diffusion/run_1x_bs16.sh b/examples/stable-diffusion/run_1x_bs16.sh
index 5eefc1cc23..97f4f0ea43 100755
--- a/examples/stable-diffusion/run_1x_bs16.sh
+++ b/examples/stable-diffusion/run_1x_bs16.sh
@@ -2,7 +2,7 @@ python train_text_to_image_sdxl.py \
   --pretrained_model_name_or_path stabilityai/stable-diffusion-xl-base-1.0 \
   --pretrained_vae_model_name_or_path stabilityai/sdxl-vae \
   --dataset_name lambdalabs/pokemon-blip-captions \
-  --resolution 512 \
+  --resolution 1024 \
   --center_crop \
   --random_flip \
   --proportion_empty_prompts=0.2 \
@@ -15,9 +15,10 @@ python train_text_to_image_sdxl.py \
   --output_dir sdxl-pokemon-model \
   --gaudi_config_name Habana/stable-diffusion \
   --throughput_warmup_steps 3 \
+  --dataloader_num_workers 8 \
   --bf16 \
-  --validation_prompt="a horse running on the beach during sunset" \
-  --validation_epochs 48 \
-  --use_hpu_graphs \
+  --use_hpu_graphs_for_inference \
+  --validation_prompt="a robotic cat with wings" \
+  --validation_epochs 48\
   --checkpointing_steps 2500 \
   --cache_dir /root/software/data/pytorch/huggingface/sdxl 2>&1 | tee log_1x_bs16.txt
diff --git a/examples/stable-diffusion/train_text_to_image_sdxl.py b/examples/stable-diffusion/train_text_to_image_sdxl.py
index 9fa5ea2e75..df6e9868ee 100644
--- a/examples/stable-diffusion/train_text_to_image_sdxl.py
+++ b/examples/stable-diffusion/train_text_to_image_sdxl.py
@@ -40,6 +40,7 @@
 from datasets import load_dataset
 from diffusers import (
     AutoencoderKL,
+    DDPMScheduler,
     UNet2DConditionModel,
 )
 from diffusers.optimization import get_scheduler
@@ -469,7 +470,14 @@ def parse_args(input_args=None):
             " lazy mode."
         ),
     )
-    parser.add_argument("--use_hpu_graphs", action="store_true", help="Use HPU graphs on HPU.")
+    parser.add_argument(
+        "--use_hpu_graphs_for_training",
+        action="store_true",
+        help="Use HPU graphs for training on HPU.")
+    parser.add_argument(
+        "--use_hpu_graphs_for_inference",
+        action="store_true",
+        help="Use HPU graphs for inference on HPU.")
 
     parser.add_argument(
         "--image_save_dir",
@@ -679,7 +687,7 @@ def main(args):
     )
 
     # Load scheduler and models
-    noise_scheduler = GaudiEulerDiscreteScheduler.from_pretrained(
+    noise_scheduler = DDPMScheduler.from_pretrained(
         args.pretrained_model_name_or_path, subfolder="scheduler"
     )
 
@@ -965,7 +973,8 @@ def collate_fn(examples):
     unet, optimizer, train_dataloader, lr_scheduler = accelerator.prepare(
         unet, optimizer, train_dataloader, lr_scheduler
     )
-
+    if args.use_hpu_graphs_for_training:
+        unet = htcore.hpu.ModuleCacher(max_graphs=10)(model=unet, inplace=True)
     # We need to recalculate our total training steps as the size of the training dataloader may have changed.
     num_update_steps_per_epoch = math.ceil(len(train_dataloader) / args.gradient_accumulation_steps)
     if overrode_max_train_steps:
@@ -1045,7 +1054,6 @@ def unwrap_model(model):
 
             with accelerator.accumulate(unet):
                 # Sample noise that we'll add to the latents
-
                 model_input = batch["model_input"].to(dtype=weight_dtype)
 
                 noise = torch.randn_like(model_input)
@@ -1226,7 +1234,7 @@ def compute_time_ids(original_size, crops_coords_top_left):
                     revision=args.revision,
                     variant=args.variant,
                     use_habana=True,
-                    use_hpu_graphs=args.use_hpu_graphs,
+                    use_hpu_graphs=args.use_hpu_graphs_for_inference,
                     gaudi_config=args.gaudi_config_name,
                 )
                 if args.prediction_type is not None:
@@ -1297,7 +1305,7 @@ def compute_time_ids(original_size, crops_coords_top_left):
             torch_dtype=weight_dtype,
             scheduler=noise_scheduler,
             use_habana=True,
-            use_hpu_graphs=args.use_hpu_graphs,
+            use_hpu_graphs_for_inference=args.use_hpu_graphs_for_inference,
             gaudi_config=args.gaudi_config_name,
         )
         if args.prediction_type is not None:
@@ -1322,7 +1330,7 @@ def compute_time_ids(original_size, crops_coords_top_left):
                     image_save_dir.mkdir(parents=True, exist_ok=True)
                     logger.info(f"Saving images in {image_save_dir.resolve()}...")
                     for i, image in enumerate(images):
-                        image.save(image_save_dir / f"image_{i+1}.png")
+                        image.save(image_save_dir / f"image_{epoch}_{i+1}.png")
                 else:
                     logger.warning("--output_type should be equal to 'pil' to save images in --image_save_dir.")
 
diff --git a/optimum/habana/diffusers/pipelines/stable_diffusion_xl/pipeline_stable_diffusion_xl.py b/optimum/habana/diffusers/pipelines/stable_diffusion_xl/pipeline_stable_diffusion_xl.py
index 67784e8ff2..68928ece97 100644
--- a/optimum/habana/diffusers/pipelines/stable_diffusion_xl/pipeline_stable_diffusion_xl.py
+++ b/optimum/habana/diffusers/pipelines/stable_diffusion_xl/pipeline_stable_diffusion_xl.py
@@ -125,7 +125,6 @@ def __init__(
             scheduler,
             force_zeros_for_empty_prompt,
         )
-
         self.to(self._device)
 
     def prepare_latents(self, num_images, num_channels_latents, height, width, dtype, device, generator, latents=None):
@@ -546,7 +545,9 @@ def __call__(
             # 4. Prepare timesteps
             self.scheduler.set_timesteps(num_inference_steps, device="cpu")
             timesteps = self.scheduler.timesteps.to(device)
-            self.scheduler.reset_timestep_dependent_params()
+            reset_timestep = getattr(self.scheduler, "reset_timestep_dependent_params", None)
+            if callable(reset_timestep):
+                self.scheduler.reset_timestep_dependent_params()
 
             # 5. Prepare latent variables
             num_channels_latents = self.unet.config.in_channels