diff --git a/python/src/diffusionkit/mlx/__init__.py b/python/src/diffusionkit/mlx/__init__.py
index af20441..dceee64 100644
--- a/python/src/diffusionkit/mlx/__init__.py
+++ b/python/src/diffusionkit/mlx/__init__.py
@@ -467,7 +467,7 @@ def generate_image(
             logger.info(
                 f"Pre decode active memory: {log['decoding']['pre']['active_memory']}GB"
             )
-        latents = latents.astype(mx.float32)
+        latents = latents.astype(self.activation_dtype)
         decoded = self.decode_latents_to_image(latents)
         mx.eval(decoded)
 
diff --git a/python/src/diffusionkit/mlx/mmdit.py b/python/src/diffusionkit/mlx/mmdit.py
index daca926..df65b22 100644
--- a/python/src/diffusionkit/mlx/mmdit.py
+++ b/python/src/diffusionkit/mlx/mmdit.py
@@ -16,7 +16,7 @@
 
 logger = get_logger(__name__)
 
-SDPA_FLASH_ATTN_THRESHOLD = 1000
+SDPA_FLASH_ATTN_THRESHOLD = 1024
 
 
 class MMDiT(nn.Module):
@@ -218,8 +218,6 @@ def __call__(
                     timestep,
                     positional_encodings=positional_encodings,
                 )
-                mx.eval(latent_image_embeddings)
-                mx.eval(token_level_text_embeddings)
 
         # UnifiedTransformerBlock layers
         if self.config.depth_unified > 0:
@@ -449,9 +447,10 @@ def pre_sdpa(
         # LayerNorm and modulate before SDPA
         try:
             modulated_pre_attention = affine_transform(
-                self.norm1(tensor),
+                tensor,
                 shift=post_norm1_shift,
                 residual_scale=post_norm1_residual_scale,
+                norm_module=self.norm1,
             )
         except Exception as e:
             logger.error(
@@ -531,9 +530,10 @@ def post_sdpa(
             # Apply separate modulation parameters and LayerNorm across attn and mlp
             mlp_out = self.mlp(
                 affine_transform(
-                    self.norm2(residual),
+                    residual,
                     shift=post_norm2_shift,
                     residual_scale=post_norm2_residual_scale,
+                    norm_module=self.norm2,
                 )
             )
             return residual + post_mlp_scale * mlp_out
@@ -749,8 +749,9 @@ def __init__(self, head_dim):
         self.k_norm = nn.RMSNorm(head_dim, eps=1e-6)
 
     def __call__(self, q: mx.array, k: mx.array) -> Tuple[mx.array, mx.array]:
-        q = self.q_norm(q.astype(mx.float32))
-        k = self.k_norm(k.astype(mx.float32))
+        # Note: mlx.nn.RMSNorm has high precision accumulation (does not require upcasting)
+        q = self.q_norm(q)
+        k = self.k_norm(k)
         return q, k
 
 
@@ -778,9 +779,10 @@ def __call__(
 
         shift, residual_scale = mx.split(modulation_params, 2, axis=-1)
         latent_image_embeddings = affine_transform(
-            self.norm_final(latent_image_embeddings),
+            latent_image_embeddings,
             shift=shift,
             residual_scale=residual_scale,
+            norm_module=self.norm_final,
         )
         return self.linear(latent_image_embeddings)
 
@@ -932,9 +934,16 @@ def apply(q_or_k: mx.array, rope: mx.array) -> mx.array:
 
 
 def affine_transform(
-    x: mx.array, shift: mx.array, residual_scale: mx.array
+    x: mx.array,
+    shift: mx.array,
+    residual_scale: mx.array,
+    norm_module: nn.Module = None,
 ) -> mx.array:
     """Affine transformation (Used for Adaptive LayerNorm Modulation)"""
+    if norm_module is not None:
+        return mx.fast.layer_norm(
+            x, 1.0 + residual_scale.squeeze(), shift.squeeze(), norm_module.eps
+        )
     return x * (1.0 + residual_scale) + shift
 
 
diff --git a/python/src/diffusionkit/mlx/vae.py b/python/src/diffusionkit/mlx/vae.py
index f77fa19..48fd0bb 100644
--- a/python/src/diffusionkit/mlx/vae.py
+++ b/python/src/diffusionkit/mlx/vae.py
@@ -84,17 +84,15 @@ def __init__(
             self.conv_shortcut = nn.Linear(in_channels, out_channels)
 
     def __call__(self, x, temb=None):
-        dtype = x.dtype
-
         if temb is not None:
             temb = self.time_emb_proj(nn.silu(temb))
 
-        y = self.norm1(x.astype(mx.float32)).astype(dtype)
+        y = self.norm1(x)
         y = nn.silu(y)
         y = self.conv1(y)
         if temb is not None:
             y = y + temb[:, None, None, :]
-        y = self.norm2(y.astype(mx.float32)).astype(dtype)
+        y = self.norm2(y)
         y = nn.silu(y)
         y = self.conv2(y)
 
@@ -386,37 +384,19 @@ def __init__(
         self.conv_out = nn.Conv2d(block_out_channels[0], out_channels, 3, padding=1)
 
     def __call__(self, x):
-        t = x.dtype
         x = self.conv_in(x)
 
         x = self.mid_blocks[0](x)
-        if mx.isnan(x).any():
-            raise ValueError("NaN detected in VAE Decoder after mid_blocks[0]")
-        x = x.astype(mx.float32)
         x = self.mid_blocks[1](x)
-        if mx.isnan(x).any():
-            raise ValueError("NaN detected in VAE Decoder after mid_blocks[1]")
-        x = x.astype(t)
         x = self.mid_blocks[2](x)
-        if mx.isnan(x).any():
-            raise ValueError("NaN detected in VAE Decoder after mid_blocks[2]")
 
         for l in reversed(self.up_blocks):
             x = l(x)
             mx.eval(x)
 
-        if mx.isnan(x).any():
-            raise ValueError("NaN detected in VAE Decoder after up_blocks")
-
-        x = x.astype(mx.float32)
         x = self.conv_norm_out(x)
-        if mx.isnan(x).any():
-            raise ValueError("NaN detected in VAE Decoder after conv_norm_out")
-        x = x.astype(t)
         x = nn.silu(x)
         x = self.conv_out(x)
-        if mx.isnan(x).any():
-            raise ValueError("NaN detected in VAE Decoder after conv_out")
 
         return x
 
diff --git a/setup.py b/setup.py
index 246eac1..ce658ba 100644
--- a/setup.py
+++ b/setup.py
@@ -3,7 +3,7 @@
 from setuptools import find_packages, setup
 from setuptools.command.install import install
 
-VERSION = "0.3.0"
+VERSION = "0.3.1"
 
 
 class VersionInstallCommand(install):