diff --git a/scripts/run_kto.py b/scripts/run_kto.py
new file mode 100644
index 00000000..80899158
--- /dev/null
+++ b/scripts/run_kto.py
@@ -0,0 +1,257 @@
+#!/usr/bin/env python
+# coding=utf-8
+# Copyright 2023 The HuggingFace Inc. team. All rights reserved.
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+
+import logging
+import random
+import sys
+
+import torch
+import transformers
+from transformers import AutoModelForCausalLM, set_seed
+
+from alignment import (
+    DataArguments,
+    H4ArgumentParser,
+    ModelArguments,
+    apply_chat_template,
+    decontaminate_humaneval,
+    get_checkpoint,
+    get_datasets,
+    get_kbit_device_map,
+    get_peft_config,
+    get_quantization_config,
+    get_tokenizer,
+    is_adapter_model,
+)
+from peft import PeftConfig, PeftModel
+from trl import KTOConfig, KTOTrainer, setup_chat_format
+
+
+logger = logging.getLogger(__name__)
+
+
+def main():
+    parser = H4ArgumentParser((ModelArguments, DataArguments, KTOConfig))
+    model_args, data_args, training_args = parser.parse()
+
+    #######
+    # Setup
+    #######
+    logging.basicConfig(
+        format="%(asctime)s - %(levelname)s - %(name)s - %(message)s",
+        datefmt="%Y-%m-%d %H:%M:%S",
+        handlers=[logging.StreamHandler(sys.stdout)],
+    )
+    log_level = training_args.get_process_log_level()
+    logger.setLevel(log_level)
+    transformers.utils.logging.set_verbosity(log_level)
+    transformers.utils.logging.enable_default_handler()
+    transformers.utils.logging.enable_explicit_format()
+
+    # Log on each process the small summary:
+    logger.warning(
+        f"Process rank: {training_args.local_rank}, device: {training_args.device}, n_gpu: {training_args.n_gpu}"
+        + f" distributed training: {bool(training_args.local_rank != -1)}, 16-bits training: {training_args.fp16}"
+    )
+    logger.info(f"Model parameters {model_args}")
+    logger.info(f"Data parameters {data_args}")
+    logger.info(f"Training/evaluation parameters {training_args}")
+
+    # Check for last checkpoint
+    last_checkpoint = get_checkpoint(training_args)
+    if last_checkpoint is not None and training_args.resume_from_checkpoint is None:
+        logger.info(f"Checkpoint detected, resuming training at {last_checkpoint=}.")
+
+    # Set seed for reproducibility
+    set_seed(training_args.seed)
+
+    ###############
+    # Load datasets
+    ###############
+    raw_datasets = get_datasets(
+        data_args,
+        splits=data_args.dataset_splits,
+        configs=data_args.dataset_configs,
+        columns_to_keep=["prompt", "completion", "label"],
+    )
+    logger.info(
+        f"Training on the following splits: {[split + ' : ' + str(dset.num_rows) for split, dset in raw_datasets.items()]}"
+    )
+    column_names = list(raw_datasets["train"].features)
+
+    ################
+    # Load tokenizer
+    ################
+    data_args.truncation_side = "left"  # Truncate from left to ensure we don't lose labels in final turn
+    tokenizer = get_tokenizer(model_args, data_args)
+
+    #####################################################
+    # Load model (required here to setup the chat format)
+    #####################################################
+    torch_dtype = (
+        model_args.torch_dtype if model_args.torch_dtype in ["auto", None] else getattr(torch, model_args.torch_dtype)
+    )
+    quantization_config = get_quantization_config(model_args)
+
+    model_kwargs = dict(
+        revision=model_args.model_revision,
+        trust_remote_code=model_args.trust_remote_code,
+        use_flash_attention_2=model_args.use_flash_attention_2,
+        torch_dtype=torch_dtype,
+        use_cache=False if training_args.gradient_checkpointing else True,
+        device_map=get_kbit_device_map() if quantization_config is not None else None,
+        quantization_config=quantization_config,
+    )
+
+    if is_adapter_model(model_args.model_name_or_path, model_args.model_revision):
+        logger.info(f"Loading adapter for {model_args.model_name_or_path=}")
+
+        peft_config = PeftConfig.from_pretrained(model_args.model_name_or_path, revision=model_args.model_revision)
+        base_model = AutoModelForCausalLM.from_pretrained(
+            peft_config.base_model_name_or_path,
+            **model_kwargs,
+        )
+        model = PeftModel.from_pretrained(
+            base_model,
+            model_args.model_name_or_path,
+            revision=model_args.model_revision,
+        )
+    else:
+        model = AutoModelForCausalLM.from_pretrained(
+            model_args.model_name_or_path,
+            **model_kwargs,
+        )
+
+    # For ChatML we need to add special tokens and resize the embedding layer
+    if "<|im_start|>" in tokenizer.chat_template:
+        model, tokenizer = setup_chat_format(model, tokenizer)
+
+    #####################
+    # Apply chat template
+    #####################
+    raw_datasets = raw_datasets.map(
+        apply_chat_template,
+        fn_kwargs={
+            "tokenizer": tokenizer,
+            "task": "kto",
+            "auto_insert_empty_system_msg": data_args.auto_insert_empty_system_msg,
+        },
+        num_proc=data_args.preprocessing_num_workers,
+        remove_columns=column_names,
+        desc="Formatting prompt-completion pairs with prompt template",
+    )
+
+    ##########################
+    # Decontaminate benchmarks
+    ##########################
+    num_raw_train_samples = len(raw_datasets["train"])
+    raw_datasets = raw_datasets.filter(
+        decontaminate_humaneval,
+        fn_kwargs={"text_column": "completion"},
+        batched=True,
+        batch_size=10_000,
+        num_proc=1,
+        desc="Decontaminating HumanEval samples",
+    )
+    num_filtered_train_samples = num_raw_train_samples - len(raw_datasets["train"])
+    logger.info(
+        f"Decontaminated {num_filtered_train_samples} ({num_filtered_train_samples/num_raw_train_samples * 100:.2f}%) samples from the training set."
+    )
+
+    # Log a few random samples from the training set:
+    for index in random.sample(range(len(raw_datasets["train"])), 3):
+        logger.info(f"Prompt sample {index} of the raw training set:\n\n{raw_datasets['train'][index]['prompt']}")
+        logger.info(
+            f"Completion sample {index} of the raw training set:\n\n{raw_datasets['train'][index]['completion']}"
+        )
+
+    ref_model = None
+    if not model_args.use_peft:
+        logger.info(f"Loading reference model for {model_args.model_name_or_path=}")
+        ref_model = AutoModelForCausalLM.from_pretrained(
+            model_args.model_name_or_path,
+            **model_kwargs,
+        )
+
+    ########################
+    # Instantiate KTOTrainer
+    ########################
+    trainer = KTOTrainer(
+        model,
+        ref_model,
+        args=training_args,
+        train_dataset=raw_datasets["train"],
+        eval_dataset=raw_datasets["test"] if "test" in raw_datasets else None,
+        tokenizer=tokenizer,
+        peft_config=get_peft_config(model_args) if model_args.use_peft else None,
+    )
+
+    ###############
+    # Training loop
+    ###############
+    checkpoint = None
+    if training_args.resume_from_checkpoint is not None:
+        checkpoint = training_args.resume_from_checkpoint
+    elif last_checkpoint is not None:
+        checkpoint = last_checkpoint
+    train_result = trainer.train(resume_from_checkpoint=checkpoint)
+    metrics = train_result.metrics
+    metrics["train_samples"] = len(raw_datasets["train"])
+    trainer.log_metrics("train", metrics)
+    trainer.save_metrics("train", metrics)
+    trainer.save_state()
+
+    logger.info("*** Training complete ***")
+
+    ##################################
+    # Save model and create model card
+    ##################################
+    logger.info("*** Save model ***")
+    trainer.save_model(training_args.output_dir)
+    logger.info(f"Model saved to {training_args.output_dir}")
+
+    # Save everything else on main process
+    kwargs = {
+        "finetuned_from": model_args.model_name_or_path,
+        "dataset": list(data_args.dataset_mixer.keys()),
+        "dataset_tags": list(data_args.dataset_mixer.keys()),
+        "tags": ["alignment-handbook"],
+    }
+    if trainer.accelerator.is_main_process:
+        trainer.create_model_card(**kwargs)
+        # Restore k,v cache for fast inference
+        trainer.model.config.use_cache = True
+        trainer.model.config.save_pretrained(training_args.output_dir)
+
+    ##########
+    # Evaluate
+    ##########
+    if training_args.do_eval and "test" in raw_datasets:
+        logger.info("*** Evaluate ***")
+        metrics = trainer.evaluate()
+        metrics["eval_samples"] = len(raw_datasets["test"])
+        trainer.log_metrics("eval", metrics)
+        trainer.save_metrics("eval", metrics)
+
+    if training_args.push_to_hub is True:
+        logger.info("Pushing to hub...")
+        trainer.push_to_hub(**kwargs)
+
+    logger.info("*** Training complete! ***")
+
+
+if __name__ == "__main__":
+    main()
diff --git a/src/alignment/data.py b/src/alignment/data.py
index 84544c68..0a28c776 100644
--- a/src/alignment/data.py
+++ b/src/alignment/data.py
@@ -42,7 +42,7 @@ def maybe_insert_system_message(messages, tokenizer):
 def apply_chat_template(
     example,
     tokenizer,
-    task: Literal["sft", "generation", "rm", "dpo"],
+    task: Literal["sft", "generation", "rm", "dpo", "kto"],
     auto_insert_empty_system_msg: bool = True,
 ):
     if task in ["sft", "generation"]:
@@ -101,9 +101,22 @@ def apply_chat_template(
                 f"Could not format example as dialogue for `{task}` task! Require either the "
                 f"`[chosen, rejected]` or `[prompt, chosen, rejected]` keys but found {list(example.keys())}"
             )
+    elif task == "kto":
+        if all(k in example.keys() for k in ("prompt", "completion", "label")):
+            if not is_openai_format(example["prompt"]) or not is_openai_format(example["completion"]):
+                raise ValueError(
+                    f"Could not format example as dialogue for `{task}` task! Require OpenAI format for all messages"
+                )
+            example["prompt"] = tokenizer.apply_chat_template(example["prompt"], tokenize=False)
+            example["completion"] = tokenizer.apply_chat_template(example["completion"], tokenize=False)
+        else:
+            raise ValueError(
+                f"Could not format example as dialogue for `{task}` task! Requires the keys `[prompt, completion, label]`"
+                f" but found {list(example.keys())} instead."
+            )
     else:
         raise ValueError(
-            f"Task {task} not supported, please ensure that the provided task is one of ['sft', 'generation', 'rm', 'dpo', 'orpo']"
+            f"Task {task} not supported, please ensure that the provided task is one of ['sft', 'generation', 'rm', 'dpo', 'orpo', 'kto']"
         )
     return example
 
diff --git a/tests/test_data.py b/tests/test_data.py
index f2d73ee4..ffef864d 100644
--- a/tests/test_data.py
+++ b/tests/test_data.py
@@ -12,6 +12,7 @@
 # WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
 # See the License for the specific language governing permissions and
 # limitations under the License.
+
 import unittest
 from copy import deepcopy