diff --git a/src/brevitas/graph/equalize.py b/src/brevitas/graph/equalize.py
index e096171fb..0012e9065 100644
--- a/src/brevitas/graph/equalize.py
+++ b/src/brevitas/graph/equalize.py
@@ -28,7 +28,7 @@
 __all__ = ['GraphActivationEqualization', 'LayerwiseActivationEqualization', 'EqualizeGraph']
 
 EPSILON = 1e-9
-FLOAT16_EPSILON = 1e-4
+FLOAT16_EPSILON = 2e-5
 
 _supported_layers = (
     nn.ConvTranspose1d,
@@ -280,7 +280,8 @@ def _combine_weights_bias(
     weight = weight.data.reshape(weight.shape[0], -1)
     bias = bias.reshape(-1, 1)
 
-    weight = torch.where(torch.abs(weight) < EPSILON, torch.tensor(EPSILON).type_as(weight), weight)
+    epsilon = FLOAT16_EPSILON if weight.dtype == torch.float16 else EPSILON
+    weight = torch.where(torch.abs(weight) < epsilon, torch.tensor(epsilon).type_as(weight), weight)
     factor = torch.abs(bias) / torch.abs(weight)
 
     # From https://github.com/Xilinx/Vitis-AI/blob/master/src/vai_quantizer/vai_q_pytorch/nndct_shared/optimization/commander.py#L450