diff --git a/src/twinkle/model/megatron/args.py b/src/twinkle/model/megatron/args.py
index 80759d82..eacc10db 100644
--- a/src/twinkle/model/megatron/args.py
+++ b/src/twinkle/model/megatron/args.py
@@ -608,6 +608,7 @@ def _get_base_model(m):
             # Critical: Set finalize_model_grads_func for DP gradient synchronization
             # Uses custom wrapper that handles both DDP and PEFT/LoRA models
             finalize_model_grads_func=finalize_model_grads_for_lora,
+            calculate_per_token_loss=True,
             # MoE configuration
             **moe_kwargs,
         )
diff --git a/src/twinkle/model/megatron/megatron.py b/src/twinkle/model/megatron/megatron.py
index 419e03bd..68e68f5a 100644
--- a/src/twinkle/model/megatron/megatron.py
+++ b/src/twinkle/model/megatron/megatron.py
@@ -527,17 +527,16 @@ def forward_step_func(data_iterator, model):
                 if isinstance(loss_dict, dict):
                     if 'loss' in loss_dict:
                         loss += loss_dict['loss']
-                        count += 1
                     if 'logits' in loss_dict:
                         logits.append(loss_dict['logits'])
                     if 'logps' in loss_dict:
                         logps.append(loss_dict['logps'])
+                    if 'num_tokens' in loss_dict:
+                        count += loss_dict['num_tokens']
                 elif isinstance(loss_dict, torch.Tensor):
-                    loss += loss_dict
-                    count += 1
+                    raise ValueError('Expected loss dict, got tensor')
 
-        if count > 0:
-            loss /= count
+        loss = loss / (count or 1)
 
         # For PP > 1, broadcast loss from last PP stage to all ranks
         # Note: mpu is imported at module level, no need to reimport
diff --git a/src/twinkle/model/megatron/strategy/megatron.py b/src/twinkle/model/megatron/strategy/megatron.py
index 758afb4e..362e65ae 100644
--- a/src/twinkle/model/megatron/strategy/megatron.py
+++ b/src/twinkle/model/megatron/strategy/megatron.py
@@ -134,8 +134,13 @@ def _wrap_with_megatron_ddp(
         return wrapped_models
 
     def reduce_loss(self, local_loss, local_count, logits, logps):
-        loss = local_loss / local_count.clamp(min=1)
-        return loss, {'loss': loss.detach(), 'logits': logits.detach(), 'logps': logps.detach()}
+        count = local_count.clamp(min=1).to(torch.int64)
+        return local_loss, count, {
+            'loss': local_loss.detach(),
+            'logits': logits.detach(),
+            'logps': logps.detach(),
+            'num_tokens': count
+        }
 
     def get_model_config(
         self,