diff --git a/tests/compile/backend.py b/tests/compile/backend.py
new file mode 100644
index 0000000000000..c06c15bb17965
--- /dev/null
+++ b/tests/compile/backend.py
@@ -0,0 +1,33 @@
+from copy import deepcopy
+from typing import Callable
+
+import torch
+
+
+class TestBackend():
+    """
+    This class provides a simple Inductor backend that can be used for testing.
+    It takes a list of custom passes and runs them after Inductor's passes.
+    It also saves the graph before and after the custom passes for inspection.
+    """
+
+    def __init__(self, *args: Callable[[torch.fx.Graph], None]):
+        self.custom_passes = args
+        from torch._inductor import config
+        self.current_config = config.shallow_copy_dict()
+        self.current_config['post_grad_custom_post_pass'] = self.post_pass
+
+    def __call__(self, graph: torch.fx.GraphModule, example_inputs):
+        from torch._inductor.compile_fx import compile_fx
+        return compile_fx(graph,
+                          example_inputs,
+                          config_patches=self.current_config)
+
+    def post_pass(self, graph: torch.fx.Graph):
+        self.graph_pre_pass = deepcopy(graph)
+        for pass_ in self.custom_passes:
+            pass_(graph)
+
+        self.graph_post_pass = deepcopy(graph)
+        # assign by reference, will reflect the final state of the graph
+        self.final_graph = graph
diff --git a/tests/compile/test_fusion.py b/tests/compile/test_fusion.py
new file mode 100644
index 0000000000000..81cd66795d310
--- /dev/null
+++ b/tests/compile/test_fusion.py
@@ -0,0 +1,88 @@
+import pytest
+import torch
+from compressed_tensors.quantization import FP8_DTYPE
+
+from vllm._custom_ops import cutlass_scaled_mm, scaled_fp8_quant
+from vllm.compilation.fusion import (FusionPass, find_auto_fn,
+                                     find_auto_fn_maybe)
+from vllm.model_executor.layers.layernorm import RMSNorm
+
+from .backend import TestBackend
+
+
+class TestModel(torch.nn.Module):
+
+    def __init__(self, hidden_size: int, eps: float, *args, **kwargs):
+        super().__init__(*args, **kwargs)
+        self.norm = [RMSNorm(hidden_size, eps) for _ in range(3)]
+        self.scale = [torch.rand(1, dtype=torch.float32) for _ in range(4)]
+        self.w = [
+            torch.rand(hidden_size, hidden_size).to(dtype=FP8_DTYPE).t()
+            for _ in range(2)
+        ]
+
+    def forward(self, x):
+        resid = torch.relu(x)
+        y = self.norm[0](x)
+        yq, s0 = scaled_fp8_quant(y, self.scale[0])
+        x2 = cutlass_scaled_mm(yq,
+                               self.w[0],
+                               s0,
+                               self.scale[1],
+                               out_dtype=x.dtype)
+        # make sure resid is used for replacement to work
+        y2, resid = self.norm[1](x2, resid)
+        yq2, s2 = scaled_fp8_quant(y2, self.scale[2])
+        x3 = cutlass_scaled_mm(yq2,
+                               self.w[1],
+                               s2,
+                               self.scale[3],
+                               out_dtype=x.dtype)
+        y3, resid = self.norm[2](x3, resid)  # use resid here
+        return y3
+
+
+# Init does pattern registration, which can only happen once
+fusion_pass = FusionPass()
+
+
+@pytest.mark.parametrize("dtype", [torch.float16, torch.bfloat16])
+@pytest.mark.parametrize("hidden_size", [64, 3392, 4096])
+@pytest.mark.parametrize("num_tokens", [7, 256, 533, 2048, 2049])
+@pytest.mark.parametrize("eps", [1e-5, 1e-6])
+def test_fusion_rmsnorm_quant(dtype, hidden_size, num_tokens, eps):
+    torch.set_default_device("cuda")
+    torch.set_default_dtype(torch.float16)
+
+    if eps != 1e-5:
+        pytest.skip("Only test eps=1e-5 for now")
+
+    backend = TestBackend(fusion_pass)
+    model = TestModel(hidden_size, eps)
+
+    x = torch.rand(num_tokens, hidden_size)
+    result = model(x)
+
+    model2 = torch.compile(model, backend=backend)
+    result2 = model2(x)
+
+    # Check that it gives the same answer
+    torch.testing.assert_close(result, result2, atol=1e-3, rtol=1e-3)
+
+    # Check substitution worked
+    pre_nodes = backend.graph_pre_pass.nodes
+    post_nodes = backend.graph_post_pass.nodes
+
+    rms_quant = torch.ops._C.rms_norm_static_fp8_quant.default
+    add_rms_quant = torch.ops._C.fused_add_rms_norm_static_fp8_quant.default
+    fp8_quant = torch.ops._C.static_scaled_fp8_quant.default
+
+    # In pre-nodes, fp8 quant should be present and fused kernels should not
+    assert find_auto_fn_maybe(pre_nodes, rms_quant) is None
+    assert find_auto_fn_maybe(pre_nodes, add_rms_quant) is None
+    find_auto_fn(pre_nodes, fp8_quant)
+
+    # In post-nodes, fused kernels should be present and fp8 quant should not
+    find_auto_fn(post_nodes, rms_quant)
+    find_auto_fn(post_nodes, add_rms_quant)
+    assert find_auto_fn_maybe(post_nodes, fp8_quant) is None