diff --git a/paddle/fluid/framework/distributed_strategy.proto b/paddle/fluid/framework/distributed_strategy.proto
index 546b9d2601df57322c22d751c94ced76331c1eb6..58ae35f2689799ecf0be94702114633d9040098d 100644
--- a/paddle/fluid/framework/distributed_strategy.proto
+++ b/paddle/fluid/framework/distributed_strategy.proto
@@ -200,6 +200,7 @@ message DistributedStrategy {
   optional int32 fuse_grad_size_in_num = 31 [ default = 8 ];
   optional bool calc_comm_same_stream = 32 [ default = false ];
   optional bool asp = 33 [ default = false ];
+  optional bool fuse_grad_merge = 34 [ default = false ];
 
   optional RecomputeConfig recompute_configs = 101;
   optional AMPConfig amp_configs = 102;
diff --git a/paddle/fluid/operators/coalesce_tensor_op.cc b/paddle/fluid/operators/coalesce_tensor_op.cc
index 6ea8809dae13f2340a9664aab0213a7d89e5b3dc..4c5f3a2a47bd84c31a21029f67716f1e5c5b875e 100644
--- a/paddle/fluid/operators/coalesce_tensor_op.cc
+++ b/paddle/fluid/operators/coalesce_tensor_op.cc
@@ -20,10 +20,49 @@
 #include "paddle/fluid/framework/var_type.h"
 #include "paddle/fluid/operators/math/math_function.h"
 #include "paddle/fluid/platform/device_memory_aligment.h"
+#ifdef PADDLE_WITH_ASCEND_CL
+#include "paddle/fluid/operators/npu_op_runner.h"
+#endif
 
 namespace paddle {
 namespace operators {
 
+template <typename DeviceContext>
+struct FillConstantVisitor {
+  FillConstantVisitor(const DeviceContext &dev_ctx,
+                      framework::LoDTensor *tensor, const float value)
+      : dev_ctx_(dev_ctx), tensor_(tensor), value_(value) {}
+
+  template <typename T>
+  void apply(typename std::enable_if<std::is_same<T, int8_t>::value ||
+                                     std::is_same<T, int16_t>::value>::type * =
+                 nullptr) const {
+    PADDLE_THROW(platform::errors::InvalidArgument(
+        "Not support data type for set_constant attr"));
+  }
+
+  template <typename T>
+  void apply(typename std::enable_if<!(std::is_same<T, int8_t>::value ||
+                                       std::is_same<T, int16_t>::value)>::type
+                 * = nullptr) const {
+#ifdef PADDLE_WITH_ASCEND_CL
+    if (platform::is_npu_place(dev_ctx_.GetPlace())) {
+      FillNpuTensorWithConstant<T>(tensor_, static_cast<T>(value_));
+    } else {
+      math::SetConstant<DeviceContext, T> set_constant;
+      set_constant(dev_ctx_, tensor_, static_cast<T>(value_));
+    }
+#else
+    math::SetConstant<DeviceContext, T> set_constant;
+    set_constant(dev_ctx_, tensor_, static_cast<T>(value_));
+#endif
+  }
+
+  const DeviceContext &dev_ctx_;
+  framework::LoDTensor *tensor_;
+  float value_;
+};
+
 template <typename DeviceContext, typename T>
 class CoalesceTensorOpKernel : public framework::OpKernel<T> {
  public:
@@ -70,6 +109,7 @@ class CoalesceTensorOpKernel : public framework::OpKernel<T> {
     auto in_tensors = context.MultiInput<framework::LoDTensor>("Input");
     bool use_align = context.Attr<bool>("use_align");
     auto align_size = context.Attr<int>("align_size");
+    auto size_of_dtype = context.Attr<int>("user_defined_size_of_dtype");
 
     if (context.Attr<bool>("check_name")) {
       for (size_t i = 0; i < in_var_names.size(); ++i) {
@@ -94,7 +134,9 @@ class CoalesceTensorOpKernel : public framework::OpKernel<T> {
     size_t numel = 0;
     auto dtype = static_cast<framework::proto::VarType::Type>(
         context.Attr<int>("dtype"));
-    size_t size_of_dtype = framework::SizeOfType(dtype);
+    if (size_of_dtype == -1) {
+      size_of_dtype = framework::SizeOfType(dtype);
+    }
     GetMemSizeAndDtype(in_tensors, in_var_names, &numel, size_of_dtype,
                        context.GetPlace(), use_align, align_size);
 
@@ -121,10 +163,9 @@ class CoalesceTensorOpKernel : public framework::OpKernel<T> {
                       : len;
       }
     } else if (context.Attr<bool>("set_constant")) {
-      // TODO(Liu yuang) ADD NPU SET_CONSTANT FUNCTION.
-      math::SetConstant<DeviceContext, T> set_constant;
-      set_constant(dev_ctx, fused_tensor,
-                   static_cast<T>(context.Attr<float>("constant")));
+      framework::VisitDataType(
+          dtype, FillConstantVisitor<DeviceContext>(
+                     dev_ctx, fused_tensor, context.Attr<float>("constant")));
     } else if (context.Attr<bool>("persist_output")) {
       for (size_t i = 0; i < out_var_names.size(); ++i) {
         size_t len = static_cast<size_t>(out_tensors[i]->numel());
@@ -227,10 +268,13 @@ class CoalesceTensorOp : public framework::OperatorWithKernel {
     }
     auto use_align = ctx->Attrs().Get<bool>("use_align");
     auto align_size = ctx->Attrs().Get<int>("align_size");
+    auto size_of_dtype = ctx->Attrs().Get<int>("user_defined_size_of_dtype");
 
     auto dtype = static_cast<framework::proto::VarType::Type>(
         ctx->Attrs().Get<int>("dtype"));
-    size_t size_of_dtype = framework::SizeOfType(dtype);
+    if (size_of_dtype == -1) {
+      size_of_dtype = framework::SizeOfType(dtype);
+    }
 
     auto alignment = [](size_t size, size_t align_size) {
       size_t remaining = size % align_size;
@@ -308,6 +352,15 @@ class CoalesceTensorOpMaker : public framework::OpProtoAndCheckerMaker {
         .SetDefault(true);
     AddAttr<int>("align_size", "The alignment size when use_align is True")
         .SetDefault(-1);
+    AddAttr<int>("user_defined_size_of_dtype",
+                 "The user defined size of dtype. This is used to coalesce "
+                 "grad vars and merged_grad vars at the same time. For some "
+                 "strategy, the dtype of fused_grad_vars and the dtype of "
+                 "fused_grad_merged_vars are not identical, which will cause "
+                 "the shape of these two coalesced vars are different. To "
+                 "make sure the shape of these two vars are identical with "
+                 "each other, this attr is added.")
+        .SetDefault(-1);
     AddComment(R"DOC(
 CoalesceTensor Operator.
 
diff --git a/python/paddle/distributed/fleet/base/distributed_strategy.py b/python/paddle/distributed/fleet/base/distributed_strategy.py
index d43292ddbd32e91a1df61f5b8f1fc93a7e33c31f..d19cfd21698021688150577995b6c9efc19c1536 100644
--- a/python/paddle/distributed/fleet/base/distributed_strategy.py
+++ b/python/paddle/distributed/fleet/base/distributed_strategy.py
@@ -967,6 +967,28 @@ class DistributedStrategy(object):
                 "WARNING: calc_comm_same_stream should have value of boolean type"
             )
 
+    @property
+    def fuse_grad_merge(self):
+        """
+        Set whether fuse the grad for gradient merge.
+        Note: this flag will only effect the gradient merge under pipeline mode
+        The default value for the fuse_grad_merge is False
+        Examples:
+          .. code-block:: python
+            import paddle.distributed.fleet as fleet
+            strategy = fleet.DistributedStrategy()
+            strategy.fuse_param_grad = True
+        """
+        return self.strategy.fuse_grad_merge
+
+    @fuse_grad_merge.setter
+    @is_strict_auto
+    def fuse_grad_merge(self, fuse_grad_merge):
+        if isinstance(fuse_grad_merge, bool):
+            self.strategy.fuse_grad_merge = fuse_grad_merge
+        else:
+            print("WARNING: fuse_grad_merge should have value of boolean type")
+
     @property
     def fuse_grad_size_in_num(self):
         """
diff --git a/python/paddle/distributed/fleet/meta_optimizers/sharding/offload_helper.py b/python/paddle/distributed/fleet/meta_optimizers/sharding/offload_helper.py
index a96705b09e835eb0e91a94a669bf3b6e18de2e61..8aee34960332ac5789face7806960f2606dcad3f 100755
--- a/python/paddle/distributed/fleet/meta_optimizers/sharding/offload_helper.py
+++ b/python/paddle/distributed/fleet/meta_optimizers/sharding/offload_helper.py
@@ -122,6 +122,9 @@ class OffloadHelper(object):
         for idx, op in enumerate(block.ops):
             if is_optimizer_op(op):
                 break
+            # TODO (Yuang Liu): tmp solution for fuse_grad_merge + optimize_cast
+            if not offload and op.type == 'coalesce_tensor':
+                continue
             for input_name in op.desc.input_arg_names():
                 if input_name not in param_to_idx:
                     continue
diff --git a/python/paddle/distributed/fleet/meta_optimizers/sharding/utils.py b/python/paddle/distributed/fleet/meta_optimizers/sharding/utils.py
index 52ef843aa0d751b0b981a3d93e81af6d6f121275..16fbc7bea6c8b63600806a171fcd91307b89e5c0 100755
--- a/python/paddle/distributed/fleet/meta_optimizers/sharding/utils.py
+++ b/python/paddle/distributed/fleet/meta_optimizers/sharding/utils.py
@@ -341,7 +341,11 @@ def insert_allreduce_ops(block,
     if len(allreduce_vars) == 0:
         return
 
-    if user_defined_strategy and user_defined_strategy.fuse_all_reduce_ops:
+    if user_defined_strategy and \
+            user_defined_strategy.fuse_all_reduce_ops and \
+            not user_defined_strategy.fuse_grad_merge:
+        # If fuse_grad_merge is enable, the grad vars have already been fused during
+        # gradient merge pass, therefore, those vars are not need to be fused here
         insert_fused_allreduce_ops(block, insert_idx, ring_id, allreduce_vars,
                                    op_role, use_calc_stream,
                                    user_defined_strategy.fuse_grad_size_in_MB)
diff --git a/python/paddle/distributed/fleet/meta_optimizers/sharding_optimizer.py b/python/paddle/distributed/fleet/meta_optimizers/sharding_optimizer.py
index 5c2f24054f835cda631d50c278fee9ab7d657777..c94bd572f05878b97286536c6bc7b0f09db2f9dc 100755
--- a/python/paddle/distributed/fleet/meta_optimizers/sharding_optimizer.py
+++ b/python/paddle/distributed/fleet/meta_optimizers/sharding_optimizer.py
@@ -319,7 +319,9 @@ class ShardingOptimizer(MetaOptimizerBase):
                     main_block._remove_op(idx)
 
         accumulated_grad_names = self._pp_optimizer._accumulate_gradients(
-            main_block, fp16_allreduce=fp16_allreduce)
+            main_block,
+            fp16_allreduce=fp16_allreduce,
+            user_defined_strategy=strategy)
 
         len_of_ops = len(main_block.ops)
         first_optimize_op_index = get_first_optimize_op_idx(main_block)
diff --git a/python/paddle/fluid/optimizer.py b/python/paddle/fluid/optimizer.py
index 9e87681c4bef306f7504f8678004fbdec9b7a12e..58f61b77fd1fe01219a38d239551e5b7b65664a8 100755
--- a/python/paddle/fluid/optimizer.py
+++ b/python/paddle/fluid/optimizer.py
@@ -5037,11 +5037,18 @@ class PipelineOptimizer(object):
     def _accumulate_gradients(self,
                               block,
                               pp_allreduce_in_optimize=False,
-                              fp16_allreduce=False):
+                              fp16_allreduce=False,
+                              user_defined_strategy=None):
         """
         Create a new merged gradient for each parameter and accumulate the
         corresponding gradient to it.
         """
+        if user_defined_strategy and user_defined_strategy.fuse_grad_merge:
+            fused_gradient_names = self._accumulate_gradients_with_fuse(
+                block, fp16_allreduce,
+                user_defined_strategy.fuse_grad_size_in_MB)
+            return fused_gradient_names
+
         merged_gradient_names = []
         first_opt_op_idx = None
 
@@ -5171,6 +5178,252 @@ class PipelineOptimizer(object):
 
         return merged_gradient_names
 
+    def _accumulate_gradients_with_fuse(self, main_block, fp16, fused_size):
+        first_opt_op_idx = None
+        grad_param_pairs = []
+        # obtain all param/grad pairs that needed to be fused
+        for index, op in reversed(tuple(enumerate(list(main_block.ops)))):
+            # remove the cast op of fp16 grad to fp32 grad
+            if self._is_optimize_op(op) and op.type == 'cast':
+                in_name = op.input_arg_names[0]
+                out_name = op.output_arg_names[0]
+                if out_name.strip('@GRAD') in self._param_device_map:
+                    assert in_name.replace('.cast_fp16', '') == out_name
+                    main_block._remove_op(index)
+                    continue
+
+            if self._is_backward_op(op) and first_opt_op_idx is None:
+                first_opt_op_idx = index + 1
+                # no optimize phase
+                if first_opt_op_idx == len(main_block.ops):
+                    return
+
+            if self._is_backward_op(op) and (
+                    self._op_role_var_key in op.attr_names):
+                op_role_var = op.attr(self._op_role_var_key)
+                if len(op_role_var) == 0:
+                    continue
+                assert len(op_role_var) % 2 == 0
+                for i in range(0, len(op_role_var), 2):
+                    param_name = op_role_var[i]
+                    if not main_block.has_var(param_name):
+                        continue
+                    if '@BroadCast' in param_name:
+                        continue
+                    grad_param_pairs.append(
+                        (op_role_var[i + 1], op_role_var[i]))
+
+        if len(grad_param_pairs) == 0:
+            return
+
+        grad_param_segments = []
+        merged_suffix = '@MERGED@FP16' if fp16 else '@MERGED'
+        dtype = paddle.float16 if fp16 else paddle.float32
+        cur_size = 0.
+        last_dtype = None
+        # split the grad based on dtype and fused size
+        for grad, param in grad_param_pairs:
+            real_grad = main_block.var(grad)
+            # create the gradient merged var for each grad
+            merged_grad_var = main_block.create_var(
+                name=param + core.grad_var_suffix() + merged_suffix,
+                dtype=dtype,
+                shape=real_grad.shape,
+                persistable=True,
+                stop_gradient=False)
+            real_param = main_block.var(param)
+            tmp_size = self._get_var_size(real_grad)
+            # two strategies for splitting the grad
+            # 1. the current segment's size reach the user defined grad_size_in_MB
+            # 2. the upcoming grad holds different dtype compared with grads in current segment
+            if len(grad_param_segments) == 0 \
+                    or cur_size + tmp_size > fused_size \
+                    or real_grad.dtype != last_dtype:
+                grad_param_segments.append(
+                    ([real_grad], [real_param], [merged_grad_var]))
+                last_dtype = real_grad.dtype
+                cur_size = 0.
+            else:
+                grad_param_segments[-1][0].append(real_grad)
+                grad_param_segments[-1][1].append(real_param)
+                grad_param_segments[-1][2].append(merged_grad_var)
+                cur_size += tmp_size
+
+        fused_gradients = []
+        fused_merged_gradients = []
+        # create fused vars for grad and param
+        for grad_param_segment in grad_param_segments:
+            grad_segment = grad_param_segment[0]
+            merged_grad_segment = grad_param_segment[2]
+            fused_grad = main_block.create_var(
+                name='FusedGrad_{}'.format(grad_segment[0].name),
+                dtype=grad_segment[0].dtype,
+                persistable=False,
+                stop_gradient=False)
+            # keep the '.cast_fp16' info in the fuse var name
+            fused_merged_grad_name_prefix = 'FusedMergedGrad.cast_fp16.' if \
+                merged_grad_segment[0].dtype == paddle.float16 else 'FusedMergedGrad'
+            fused_merged_grad_name = fused_merged_grad_name_prefix + '_{}'.format(
+                merged_grad_segment[0].name)
+            fused_merged_grad = main_block.create_var(
+                name=fused_merged_grad_name,
+                dtype=merged_grad_segment[0].dtype,
+                persistable=True,
+                stop_gradient=False)
+            fused_gradients.append(fused_grad)
+            fused_merged_gradients.append(fused_merged_grad)
+
+        assert len(fused_gradients) == len(grad_param_segments)
+        assert len(fused_merged_gradients) == len(grad_param_segments)
+
+        # insert coalesce op at the start of the backward pass
+        # use param as the coalesce input to make sure the two Fused vars are in same shape
+        first_back_op_idx = None
+        for index, op in enumerate(main_block.ops):
+            if self._is_backward_op(op) and first_back_op_idx is None:
+                first_back_op_idx = index
+                break
+        assert first_back_op_idx is not None
+        offset = 0
+        for i in range(len(grad_param_segments)):
+            fused_grad = fused_gradients[i]
+            fused_merged_grad = fused_merged_gradients[i]
+            grads = grad_param_segments[i][0]
+            params = grad_param_segments[i][1]
+            merged_grads = grad_param_segments[i][2]
+            main_block._insert_op_without_sync(
+                first_back_op_idx + offset,
+                type="coalesce_tensor",
+                inputs={"Input": params},
+                outputs={"Output": grads,
+                         "FusedOutput": fused_grad},
+                attrs={
+                    # Explanation of user_defined_size_of_dtype:
+                    # In coalesce op, the align size is 256 bytes
+                    # the float takes 4 bytes while fp16 takes 2 bytes.
+                    # To meet the requirement, 128 fp16 or 64 float will be aligned
+                    # Think the total shape of the input tensors if [64],
+                    # if the dtype is float, then the shape of the fuse var is [64]
+                    # however if the dytpe if fp16, the shape of the fuse var is [128],
+                    # which will cause the fused vars' shape vary between each other.
+                    # To make sure the shape of the fused vars are identical,
+                    # we set the dtype of float and fp16 both to 2.
+                    # Under this way, the fused vars' shape for float and fp16 are all [128]
+                    "user_defined_size_of_dtype": 2,
+                    "copy_data": False,
+                    "use_align": True,
+                    "dtype": grads[0].dtype,
+                    self._op_role_key: self._op_role.Backward
+                })
+            offset += 1
+            # For the gradient_merged_fused_var, given a init value during the coalesce op
+            # this will remove a problematic fill_constant op. This op role of this coalesce
+            # is set to be LRSched to make this coalesce (with init) only run once
+            main_block._insert_op_without_sync(
+                first_back_op_idx + offset,
+                type="coalesce_tensor",
+                inputs={"Input": params},
+                outputs={
+                    "Output": merged_grads,
+                    "FusedOutput": fused_merged_grad
+                },
+                attrs={
+                    "user_defined_size_of_dtype": 2,
+                    "set_constant": True,
+                    "constant": float(0.0),
+                    "copy_data": False,
+                    "use_align": True,
+                    "dtype": merged_grads[0].dtype,
+                    self._op_role_key: self._op_role.Optimize.LRSched
+                })
+            offset += 1
+
+        # insert gradient merge relating ops
+        first_opt_op_idx += offset
+        offset = 0
+        for i in range(len(fused_gradients)):
+            fused_grad = fused_gradients[i]
+            fused_merged_grad = fused_merged_gradients[i]
+            is_fp16_grad = 'cast_fp16' in fused_grad.name
+            need_cast = (is_fp16_grad is not fp16)
+            if need_cast:
+                # for fp16 allreduce, cast fp32 grad to fp16
+                # for fp32 allreduce, cast fp16 grad to fp32
+                cast_grad_var_name = fused_grad.name + '@TMP'
+                cast_grad_var = main_block.create_var(
+                    name=cast_grad_var_name,
+                    dtype=dtype,
+                    persistable=False,
+                    stop_gradient=False)
+                main_block._insert_op(
+                    index=first_opt_op_idx + offset,
+                    type='cast',
+                    inputs={'X': fused_grad},
+                    outputs={'Out': cast_grad_var},
+                    attrs={
+                        'in_dtype': fused_grad.dtype,
+                        'out_dtype': cast_grad_var.dtype,
+                        self._op_role_key: self._op_role.Backward,
+                    })
+                offset += 1
+                fused_grad = cast_grad_var
+            main_block._insert_op(
+                index=first_opt_op_idx + offset,
+                type='sum',
+                inputs={'X': [fused_merged_grad, fused_grad]},
+                outputs={'Out': fused_merged_grad},
+                attrs={self._op_role_key: self._op_role.Backward})
+            offset += 1
+
+        if fp16:
+            # if using fp16 allreduce, the optimizer needs fp32 grads, cast them back to fp32
+            for grad, param in grad_param_pairs:
+                real_grad = main_block.var(grad)
+                fp16_grad_name = param + core.grad_var_suffix() + '@MERGED@FP16'
+                assert main_block.has_var(fp16_grad_name)
+                fp16_grad = main_block.var(fp16_grad_name)
+                fp32_grad_name = param + core.grad_var_suffix() + '@MERGED'
+                fp32_grad = main_block.create_var(
+                    name=fp32_grad_name,
+                    dtype=paddle.float32,
+                    shape=real_grad.shape,
+                    persistable=False,
+                    stop_gradient=False)
+                main_block._insert_op(
+                    index=first_opt_op_idx + offset,
+                    type='cast',
+                    inputs={'X': fp16_grad},
+                    outputs={'Out': fp32_grad},
+                    attrs={
+                        'in_dtype': paddle.float16,
+                        'out_dtype': paddle.float32,
+                        self._op_role_key: self._op_role.Optimize,
+                    })
+                offset += 1
+
+        # replace the var with it's name, which will be used for inserting allreduce
+        for i in range(len(fused_merged_gradients)):
+            fused_merged_gradients[i] = fused_merged_gradients[i].name
+
+        main_block._sync_with_cpp()
+
+        return fused_merged_gradients
+
+    def _get_var_size(self, var):
+        dtype_to_size = {
+            core.VarDesc.VarType.FP16: 2,
+            core.VarDesc.VarType.FP32: 4,
+            core.VarDesc.VarType.FP64: 8,
+            core.VarDesc.VarType.INT16: 2,
+            core.VarDesc.VarType.INT32: 4,
+            core.VarDesc.VarType.INT64: 8,
+            core.VarDesc.VarType.BOOL: 1,
+            core.VarDesc.VarType.UINT8: 1,
+        }
+        assert -1 not in var.shape
+        return reduce(lambda x, y: x * y,
+                      var.shape) * dtype_to_size[var.dtype] / 1024.0 / 1024.0
+
     def _add_sub_blocks(self, main_block, program_list):
         main_program = main_block.program
         for prog in program_list:
diff --git a/python/paddle/fluid/tests/unittests/npu/test_coalesce_tensor_op_npu.py b/python/paddle/fluid/tests/unittests/npu/test_coalesce_tensor_op_npu.py
index f1bbf0becf1950360735a60838257c2084a53416..93a969bf10f03032bf30eaa8d9b1c0ddf6eacf09 100644
--- a/python/paddle/fluid/tests/unittests/npu/test_coalesce_tensor_op_npu.py
+++ b/python/paddle/fluid/tests/unittests/npu/test_coalesce_tensor_op_npu.py
@@ -90,7 +90,8 @@ class TestAllocContinuousSpace2(TestAllocContinuousSpace):
             "set_constant": False,
             "constant": 0.5,
             "use_align": True,
-            "dtype": self.fluid_dtype
+            "dtype": self.fluid_dtype,
+            "user_defined_size_of_dtype": 2
         }
 
     def test_check_output(self):
diff --git a/python/paddle/fluid/tests/unittests/test_coalesce_tensor_op.py b/python/paddle/fluid/tests/unittests/test_coalesce_tensor_op.py
index a5b30330448d291128ab27512a858eb4fc33a68e..868a72334247d0080d670639553d1e81e573d641 100644
--- a/python/paddle/fluid/tests/unittests/test_coalesce_tensor_op.py
+++ b/python/paddle/fluid/tests/unittests/test_coalesce_tensor_op.py
@@ -92,7 +92,8 @@ class TestAllocContinuousSpace2(TestAllocContinuousSpace):
             "copy_data": False,
             "set_constant": True,
             "constant": 0.5,
-            "dtype": self.fluid_dtype
+            "dtype": self.fluid_dtype,
+            "user_defined_size_of_dtype": 2
         }
 
     def test_check_output(self):
diff --git a/python/paddle/fluid/tests/unittests/test_fleet_sharding_meta_optimizer.py b/python/paddle/fluid/tests/unittests/test_fleet_sharding_meta_optimizer.py
index 5a981a470cb4ef6f742577950190cf375b0f1c6d..3b0df74d3e6b4b8efa2156ff4c6741f4ba91fa5c 100755
--- a/python/paddle/fluid/tests/unittests/test_fleet_sharding_meta_optimizer.py
+++ b/python/paddle/fluid/tests/unittests/test_fleet_sharding_meta_optimizer.py
@@ -1050,6 +1050,189 @@ class TestFleetShardingHybridOptimizer(TestFleetMetaOptimizer):
 
         self.assertEqual(dp_group_waiting_ports, ['127.0.0.1:36002'])
 
+    def test_hybrid_with_pp_dp_amp_fp16allreduce_optimize_cast_with_gradient_fuse(
+            self):
+        train_prog, startup_prog = paddle.fluid.Program(), paddle.fluid.Program(
+        )
+        avg_cost, strategy = self.pp_net(train_prog, startup_prog)
+        strategy.amp = True
+        strategy.amp_configs = {'custom_black_varnames': ['fc_6.b_0'], }
+        strategy.sharding = True
+        strategy.sharding_configs = {
+            "sharding_degree": 1,
+            "mp_degree": 1,
+            "pp_degree": 2,
+            "dp_degree": 2,
+            "optimize_cast": True,
+        }
+        strategy.pipeline = True
+        strategy.pipeline_configs = {
+            "schedule_mode": "1F1B",
+            "micro_batch_size": 2,
+            "accumulate_steps": 4,
+        }
+        strategy.fp16_allreduce = True
+        strategy.fuse_grad_merge = True
+        self.optimizer(avg_cost, strategy, train_prog, startup_prog)
+        train_prog = train_prog._pipeline_opt['section_program']
+        startup_prog = startup_prog._pipeline_opt['startup_program']
+
+        startup_prog_ops = startup_prog.global_block().ops
+        main_prog_ops = train_prog.global_block().ops
+
+        # check program
+        startup_prog_op_types = [op.type for op in startup_prog_ops]
+        main_prog_op_types = [op.type for op in main_prog_ops]
+
+        # ring: mp, pp_group, pp_pair, pp_pair
+        self.assertEqual(startup_prog_op_types, [
+            'uniform_random', 'cast', 'fill_constant', 'cast', 'uniform_random',
+            'cast', 'fill_constant', 'cast', 'uniform_random', 'cast',
+            'fill_constant', 'cast', 'uniform_random', 'cast', 'fill_constant',
+            'fill_constant', 'fill_constant', 'fill_constant', 'fill_constant',
+            'fill_constant', 'fill_constant', 'fill_constant', 'fill_constant',
+            'fill_constant', 'fill_constant', 'fill_constant', 'fill_constant',
+            'c_gen_nccl_id', 'c_comm_init', 'c_gen_nccl_id', 'c_comm_init',
+            'c_gen_nccl_id', 'c_comm_init', 'c_gen_nccl_id', 'c_comm_init',
+            'c_sync_comm_stream'
+        ])
+
+        self.assertEqual(main_prog_op_types, [
+            'recv_v2', 'mul', 'elementwise_add', 'tanh', 'mul',
+            'elementwise_add', 'tanh', 'mul', 'elementwise_add', 'tanh', 'mul',
+            'cast', 'elementwise_add', 'softmax', 'cross_entropy2', 'mean',
+            'elementwise_mul', 'coalesce_tensor', 'coalesce_tensor',
+            'coalesce_tensor', 'coalesce_tensor', 'fill_constant', 'scale',
+            'scale', 'elementwise_mul_grad', 'mean_grad', 'cross_entropy_grad2',
+            'softmax_grad', 'elementwise_add_grad', 'cast', 'mul_grad',
+            'tanh_grad', 'elementwise_add_grad', 'mul_grad', 'tanh_grad',
+            'elementwise_add_grad', 'mul_grad', 'tanh_grad',
+            'elementwise_add_grad', 'mul_grad', 'c_sync_calc_stream', 'send_v2',
+            'sum', 'cast', 'sum', 'c_allreduce_sum', 'c_allreduce_sum', 'cast',
+            'cast', 'cast', 'cast', 'cast', 'cast', 'cast', 'cast',
+            'c_sync_comm_stream', 'check_finite_and_unscale', 'cast',
+            'c_allreduce_max', 'cast', 'update_loss_scaling', 'momentum',
+            'cast', 'momentum', 'cast', 'momentum', 'cast', 'momentum', 'cast',
+            'momentum', 'cast', 'momentum', 'cast', 'momentum', 'momentum',
+            'cast'
+        ])
+
+        # amp check_finite_and_unscale, allreduce(pp)
+        self.assertEqual(main_prog_op_types.count('c_allreduce_max'), 1)
+
+        # should has ring id for pp
+        created_ring_ids = [
+            op.desc.attr("ring_id") for op in startup_prog_ops
+            if op.type == "c_comm_init"
+        ]
+        self.assertIn(self.pp_pair_ring_id, created_ring_ids)
+        self.assertIn(self.dp_ring_id, created_ring_ids)
+
+        # check correctness of pp group
+        for op in startup_prog_ops:
+            if op.type == "c_gen_nccl_id" and op.desc.output_arg_names()[
+                    0] == "comm_id_0":
+                pp_group_waiting_ports = op.desc.attr("other_endpoints")
+
+        self.assertEqual(pp_group_waiting_ports, ['127.0.0.1:36003'])
+
+        # check correctness of dp group
+        for op in startup_prog_ops:
+            if op.type == "c_gen_nccl_id" and op.desc.output_arg_names()[
+                    0] == "comm_id_3":
+                dp_group_waiting_ports = op.desc.attr("other_endpoints")
+
+        self.assertEqual(dp_group_waiting_ports, ['127.0.0.1:36002'])
+
+    def test_hybrid_with_pp_dp_amp_with_gradient_fuse(self):
+        train_prog, startup_prog = paddle.fluid.Program(), paddle.fluid.Program(
+        )
+        avg_cost, strategy = self.pp_net(train_prog, startup_prog)
+        strategy.amp = True
+        strategy.amp_configs = {'custom_black_varnames': ['fc_6.b_0'], }
+        strategy.sharding = True
+        strategy.sharding_configs = {
+            "sharding_degree": 1,
+            "mp_degree": 1,
+            "pp_degree": 2,
+            "dp_degree": 2,
+        }
+        strategy.pipeline = True
+        strategy.pipeline_configs = {
+            "schedule_mode": "1F1B",
+            "micro_batch_size": 2,
+            "accumulate_steps": 4,
+        }
+        strategy.fuse_grad_merge = True
+        self.optimizer(avg_cost, strategy, train_prog, startup_prog)
+        train_prog = train_prog._pipeline_opt['section_program']
+        startup_prog = startup_prog._pipeline_opt['startup_program']
+
+        startup_prog_ops = startup_prog.global_block().ops
+        main_prog_ops = train_prog.global_block().ops
+
+        # check program
+        startup_prog_op_types = [op.type for op in startup_prog_ops]
+        main_prog_op_types = [op.type for op in main_prog_ops]
+
+        # ring: mp, pp_group, pp_pair, pp_pair
+        self.assertEqual(startup_prog_op_types, [
+            'uniform_random', 'fill_constant', 'uniform_random',
+            'fill_constant', 'uniform_random', 'fill_constant',
+            'uniform_random', 'fill_constant', 'fill_constant', 'fill_constant',
+            'fill_constant', 'fill_constant', 'fill_constant', 'fill_constant',
+            'fill_constant', 'fill_constant', 'fill_constant', 'fill_constant',
+            'fill_constant', 'fill_constant', 'c_gen_nccl_id', 'c_comm_init',
+            'c_gen_nccl_id', 'c_comm_init', 'c_gen_nccl_id', 'c_comm_init',
+            'c_gen_nccl_id', 'c_comm_init', 'c_sync_comm_stream'
+        ])
+
+        self.assertEqual(main_prog_op_types, [
+            'recv_v2', 'cast', 'mul', 'cast', 'elementwise_add', 'tanh', 'cast',
+            'mul', 'cast', 'elementwise_add', 'tanh', 'cast', 'mul', 'cast',
+            'elementwise_add', 'tanh', 'cast', 'mul', 'cast', 'elementwise_add',
+            'softmax', 'cross_entropy2', 'mean', 'elementwise_mul',
+            'coalesce_tensor', 'coalesce_tensor', 'coalesce_tensor',
+            'coalesce_tensor', 'fill_constant', 'scale', 'scale',
+            'elementwise_mul_grad', 'mean_grad', 'cross_entropy_grad2',
+            'softmax_grad', 'elementwise_add_grad', 'cast', 'mul_grad',
+            'tanh_grad', 'elementwise_add_grad', 'mul_grad', 'tanh_grad',
+            'elementwise_add_grad', 'mul_grad', 'tanh_grad',
+            'elementwise_add_grad', 'mul_grad', 'c_sync_calc_stream', 'send_v2',
+            'cast', 'sum', 'sum', 'c_allreduce_sum', 'c_allreduce_sum',
+            'c_sync_comm_stream', 'check_finite_and_unscale', 'cast',
+            'c_allreduce_max', 'cast', 'update_loss_scaling', 'momentum',
+            'momentum', 'momentum', 'momentum', 'momentum', 'momentum',
+            'momentum', 'momentum'
+        ])
+
+        # amp check_finite_and_unscale, allreduce(pp)
+        self.assertEqual(main_prog_op_types.count('c_allreduce_max'), 1)
+
+        # should has ring id for pp
+        created_ring_ids = [
+            op.desc.attr("ring_id") for op in startup_prog_ops
+            if op.type == "c_comm_init"
+        ]
+        self.assertIn(self.pp_pair_ring_id, created_ring_ids)
+        self.assertIn(self.dp_ring_id, created_ring_ids)
+
+        # check correctness of pp group
+        for op in startup_prog_ops:
+            if op.type == "c_gen_nccl_id" and op.desc.output_arg_names()[
+                    0] == "comm_id_0":
+                pp_group_waiting_ports = op.desc.attr("other_endpoints")
+
+        self.assertEqual(pp_group_waiting_ports, ['127.0.0.1:36003'])
+
+        # check correctness of dp group
+        for op in startup_prog_ops:
+            if op.type == "c_gen_nccl_id" and op.desc.output_arg_names()[
+                    0] == "comm_id_3":
+                dp_group_waiting_ports = op.desc.attr("other_endpoints")
+
+        self.assertEqual(dp_group_waiting_ports, ['127.0.0.1:36002'])
+
 
 if __name__ == "__main__":
     unittest.main()