diff --git a/src/transformers/trainer.py b/src/transformers/trainer.py
index 25b7b6993092..055919ce1184 100755
--- a/src/transformers/trainer.py
+++ b/src/transformers/trainer.py
@@ -703,6 +703,7 @@ def __init__(
             # Tensor axis is just a placeholder where it will not be used in FSDPv2.
             num_devices = xr.global_runtime_device_count()
             xs.set_global_mesh(xs.Mesh(np.array(range(num_devices)), (num_devices, 1), axis_names=("fsdp", "tensor")))
+        self.is_fsdp_xla_v1_enabled = self.is_fsdp_xla_enabled and not self.is_fsdp_xla_v2_enabled
 
     def _activate_neftune(self, model):
         r"""
@@ -2969,7 +2970,20 @@ def _save_rng_state(self, output_dir):
     def _save_optimizer_and_scheduler(self, output_dir):
         if is_torch_xla_available():
             xm.rendezvous("saving_optimizer_states")
-            xm.save(self.optimizer.state_dict(), os.path.join(output_dir, OPTIMIZER_NAME))
+            if self.is_fsdp_xla_v1_enabled:
+                optm = {
+                    "optimizer": self.optimizer.state_dict(),
+                    "shard_metadata": self.model.get_shard_metadata(),
+                }
+                xm.save(
+                    optm,
+                    os.path.join(
+                        output_dir, f"rank{self.args.process_index}-of-{self.args.world_size}-{OPTIMIZER_NAME}"
+                    ),
+                    master_only=False,
+                )
+            else:
+                xm.save(self.optimizer.state_dict(), os.path.join(output_dir, OPTIMIZER_NAME))
             with warnings.catch_warnings(record=True) as caught_warnings:
                 xm.save(self.lr_scheduler.state_dict(), os.path.join(output_dir, SCHEDULER_NAME))
                 reissue_pt_warnings(caught_warnings)
@@ -3047,11 +3061,26 @@ def _load_optimizer_and_scheduler(self, checkpoint):
                 )
             )
         )
+        checkpoint_file_exists = (
+            glob.glob(os.path.join(checkpoint, f"rank*-of-{self.args.world_size}-{OPTIMIZER_NAME}"))
+            if self.is_fsdp_xla_v1_enabled
+            else checkpoint_file_exists
+        )
         if checkpoint_file_exists and os.path.isfile(os.path.join(checkpoint, SCHEDULER_NAME)):
             # Load in optimizer and scheduler states
             if is_torch_xla_available():
                 # On TPU we have to take some extra precautions to properly load the states on the right device.
-                optimizer_state = torch.load(os.path.join(checkpoint, OPTIMIZER_NAME), map_location="cpu")
+                if self.is_fsdp_xla_v1_enabled:
+                    optimizer_state = torch.load(
+                        os.path.join(
+                            checkpoint, f"rank{self.args.process_index}-of-{self.args.world_size}-{OPTIMIZER_NAME}"
+                        ),
+                        map_location="cpu",
+                    )
+                    # We only need `optimizer` when resuming from checkpoint
+                    optimizer_state = optimizer_state["optimizer"]
+                else:
+                    optimizer_state = torch.load(os.path.join(checkpoint, OPTIMIZER_NAME), map_location="cpu")
                 with warnings.catch_warnings(record=True) as caught_warnings:
                     lr_scheduler_state = torch.load(os.path.join(checkpoint, SCHEDULER_NAME), map_location="cpu")
                 reissue_pt_warnings(caught_warnings)
@@ -3464,7 +3493,7 @@ def _save_tpu(self, output_dir: Optional[str] = None):
         model = self.model
         xm.mark_step()
 
-        if xm.is_master_ordinal():
+        if xm.is_master_ordinal(local=False):
             os.makedirs(output_dir, exist_ok=True)
             torch.save(self.args, os.path.join(output_dir, TRAINING_ARGS_NAME))
 
@@ -3472,7 +3501,40 @@ def _save_tpu(self, output_dir: Optional[str] = None):
         # They can then be reloaded using `from_pretrained()`
         supported_classes = (PushToHubMixin,)
         xm.rendezvous("saving_checkpoint")
-        if not isinstance(model, supported_classes):
+        if self.is_fsdp_xla_v1_enabled:
+            ckpt = {
+                "model": model.state_dict(),
+                "shard_metadata": model.get_shard_metadata(),
+            }
+            ckpt_path = os.path.join(
+                output_dir, f"rank{self.args.process_index}-of-{self.args.world_size}-{WEIGHTS_NAME}"
+            )
+            # All ranks save sharded checkpoint
+            xm.save(ckpt, ckpt_path, master_only=False)
+            # Make sure all ranks have saved checkpoints
+            xm.rendezvous("save_full_checkpoints")
+            # Master save full checkpoint
+            if self.args.should_save:
+                from torch_xla.distributed.fsdp import consolidate_sharded_model_checkpoints
+
+                full_state_dict, _ = consolidate_sharded_model_checkpoints(
+                    ckpt_prefix=os.path.join(output_dir, ""),
+                    ckpt_suffix=f"rank*-of-*-{WEIGHTS_NAME}",
+                    save_model=False,
+                )
+                model = model.module.module
+                unwrapped_model = self.accelerator.unwrap_model(model)
+                if isinstance(unwrapped_model, supported_classes):
+                    unwrapped_model.save_pretrained(
+                        output_dir,
+                        state_dict=full_state_dict,
+                        save_function=xm.save,
+                        safe_serialization=self.args.save_safetensors,
+                    )
+                else:
+                    logger.info("Trainer.model is not a `PreTrainedModel`, only saving its state dict.")
+                    xm.save(full_state_dict, os.path.join(output_dir, WEIGHTS_NAME))
+        elif not isinstance(model, supported_classes):
             if isinstance(self.accelerator.unwrap_model(model), supported_classes):
                 self.accelerator.unwrap_model(model).save_pretrained(
                     output_dir,