diff --git a/examples/instruct_pix2pix/train_instruct_pix2pix_sdxl.py b/examples/instruct_pix2pix/train_instruct_pix2pix_sdxl.py
index e72df2e150..b7ac105c24 100644
--- a/examples/instruct_pix2pix/train_instruct_pix2pix_sdxl.py
+++ b/examples/instruct_pix2pix/train_instruct_pix2pix_sdxl.py
@@ -63,6 +63,7 @@ DATASET_NAME_MAPPING = {
     "fusing/instructpix2pix-1000-samples": ("file_name", "edited_image", "edit_prompt"),
 }
 WANDB_TABLE_COL_NAMES = ["file_name", "edited_image", "edit_prompt"]
+TORCH_DTYPE_MAPPING = {"fp32": torch.float32, "fp16": torch.float16, "bf16": torch.bfloat16}
 
 
 def import_model_class_from_model_name_or_path(
@@ -100,6 +101,16 @@ def parse_args():
         default=None,
         help="Path to an improved VAE to stabilize training. For more details check out: https://github.com/huggingface/diffusers/pull/4038.",
     )
+    parser.add_argument(
+        "--vae_precision",
+        type="choice",
+        choices=["fp32", "fp16", "bf16"],
+        default="fp32",
+        help=(
+            "The vanilla SDXL 1.0 VAE can cause NaNs due to large activation values. Some custom models might already have a solution"
+            " to this problem, and this flag allows you to use mixed precision to stabilize training."
+        ),
+    )
     parser.add_argument(
         "--revision",
         type=str,
@@ -878,7 +889,7 @@ def main():
     if args.pretrained_vae_model_name_or_path is not None:
         vae.to(accelerator.device, dtype=weight_dtype)
     else:
-        vae.to(accelerator.device, dtype=torch.float32)
+        vae.to(accelerator.device, dtype=TORCH_DTYPE_MAPPING[args.vae_precision])
 
     # 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)