diff --git a/src/diffusers/utils/peft_utils.py b/src/diffusers/utils/peft_utils.py
index 2bcbeb3b79..c77efc28f6 100644
--- a/src/diffusers/utils/peft_utils.py
+++ b/src/diffusers/utils/peft_utils.py
@@ -23,55 +23,77 @@ from packaging import version
 from .import_utils import is_peft_available, is_torch_available
 
 
-def recurse_remove_peft_layers(model):
-    if is_torch_available():
-        import torch
+if is_torch_available():
+    import torch
 
+
+def recurse_remove_peft_layers(model):
     r"""
     Recursively replace all instances of `LoraLayer` with corresponding new layers in `model`.
     """
-    from peft.tuners.lora import LoraLayer
+    from peft.tuners.tuners_utils import BaseTunerLayer
 
-    for name, module in model.named_children():
-        if len(list(module.children())) > 0:
-            ## compound module, go inside it
-            recurse_remove_peft_layers(module)
+    has_base_layer_pattern = False
+    for module in model.modules():
+        if isinstance(module, BaseTunerLayer):
+            has_base_layer_pattern = hasattr(module, "base_layer")
+            break
 
-        module_replaced = False
+    if has_base_layer_pattern:
+        from peft.utils import _get_submodules
 
-        if isinstance(module, LoraLayer) and isinstance(module, torch.nn.Linear):
-            new_module = torch.nn.Linear(module.in_features, module.out_features, bias=module.bias is not None).to(
-                module.weight.device
-            )
-            new_module.weight = module.weight
-            if module.bias is not None:
-                new_module.bias = module.bias
+        key_list = [key for key, _ in model.named_modules() if "lora" not in key]
+        for key in key_list:
+            try:
+                parent, target, target_name = _get_submodules(model, key)
+            except AttributeError:
+                continue
+            if hasattr(target, "base_layer"):
+                setattr(parent, target_name, target.get_base_layer())
+    else:
+        # This is for backwards compatibility with PEFT <= 0.6.2.
+        # TODO can be removed once that PEFT version is no longer supported.
+        from peft.tuners.lora import LoraLayer
 
-            module_replaced = True
-        elif isinstance(module, LoraLayer) and isinstance(module, torch.nn.Conv2d):
-            new_module = torch.nn.Conv2d(
-                module.in_channels,
-                module.out_channels,
-                module.kernel_size,
-                module.stride,
-                module.padding,
-                module.dilation,
-                module.groups,
-            ).to(module.weight.device)
+        for name, module in model.named_children():
+            if len(list(module.children())) > 0:
+                ## compound module, go inside it
+                recurse_remove_peft_layers(module)
 
-            new_module.weight = module.weight
-            if module.bias is not None:
-                new_module.bias = module.bias
+            module_replaced = False
 
-            module_replaced = True
+            if isinstance(module, LoraLayer) and isinstance(module, torch.nn.Linear):
+                new_module = torch.nn.Linear(module.in_features, module.out_features, bias=module.bias is not None).to(
+                    module.weight.device
+                )
+                new_module.weight = module.weight
+                if module.bias is not None:
+                    new_module.bias = module.bias
 
-        if module_replaced:
-            setattr(model, name, new_module)
-            del module
+                module_replaced = True
+            elif isinstance(module, LoraLayer) and isinstance(module, torch.nn.Conv2d):
+                new_module = torch.nn.Conv2d(
+                    module.in_channels,
+                    module.out_channels,
+                    module.kernel_size,
+                    module.stride,
+                    module.padding,
+                    module.dilation,
+                    module.groups,
+                ).to(module.weight.device)
 
-            if torch.cuda.is_available():
-                torch.cuda.empty_cache()
+                new_module.weight = module.weight
+                if module.bias is not None:
+                    new_module.bias = module.bias
 
+                module_replaced = True
+
+            if module_replaced:
+                setattr(model, name, new_module)
+                del module
+
+                if torch.cuda.is_available():
+                    torch.cuda.empty_cache()
     return model