diff --git a/atom/model_ops/linear.py b/atom/model_ops/linear.py
index 8c7180d74..892ead6f4 100644
--- a/atom/model_ops/linear.py
+++ b/atom/model_ops/linear.py
@@ -469,6 +469,7 @@ def online_quantize_weight(self):
         online_quant_func = get_hip_quant(online_quant_type)
         assert online_quant_dtype in [
             torch.float8_e4m3fn,
+            torch.float8_e4m3fnuz,
             torch.float4_e2m1fn_x2,
         ], (
             f"Unsupported online quant: "
@@ -519,9 +520,21 @@ def online_quantize_weight(self):
         elif self.quant_type == QuantType.per_1x32:
             # dequant MXFP8 (FP8 elements + 1x32 E8M0 shared scale)
             weight = weight_dequant_mxfp8(weight, weight_scale)
-        q_weight, weight_scale = online_quant_func(
-            weight, quant_dtype=online_quant_dtype
-        )
+
+        if online_quant_type == QuantType.per_1x128:
+            # Linear per_1x128 path uses blockscale GEMM, which consumes
+            # 128x128 weight scales shaped as (N//128, K//128).
+            from quantization.quark.utils import (
+                quantize_weight_to_fp8_128x128_blockscale,
+            )
+
+            q_weight, weight_scale = quantize_weight_to_fp8_128x128_blockscale(
+                weight, online_quant_dtype
+            )
+        else:
+            q_weight, weight_scale = online_quant_func(
+                weight, quant_dtype=online_quant_dtype
+            )
         if need_gather:
             q_weight, weight_scale = self._shard_quantized_weight(
                 q_weight, weight_scale
@@ -533,8 +546,11 @@ def online_quantize_weight(self):
         self.quant_type = online_quant_type
         self.params_dtype = online_quant_dtype
         self.quant_func = online_quant_func
+        # online_quant_func already returns fnuz when quant_dtype=fnuz on gfx942;
+        # only normalize when output is still non-fnuz.
         self.need_normalize_e4m3fn_to_e4m3fnuz = (
             online_quant_dtype == torch.float8_e4m3fnuz
+            and q_weight.dtype != torch.float8_e4m3fnuz
         )
         self._online_quant_info = {
             "layer": self.prefix,
diff --git a/atom/quant_spec.py b/atom/quant_spec.py
index e1d1389e2..f9a7fadb8 100644
--- a/atom/quant_spec.py
+++ b/atom/quant_spec.py
@@ -218,8 +218,9 @@ def parse(self, online_quant_config: dict) -> ParsedQuantConfig:
         if not isinstance(online_quant_config, dict):
             raise TypeError("online_quant_config must be a dict parsed from JSON.")
 
-        SCHEME_MAP = {
+        scheme_map = {
             "ptpc": QuantType.per_Token,
+            "per_block": QuantType.per_1x128,
         }
 
         def _parse_online_quant_format(quant_format_str: str) -> LayerQuantConfig:
@@ -231,10 +232,14 @@ def _parse_online_quant_format(quant_format_str: str) -> LayerQuantConfig:
                 quant_type = QuantType.per_1x32
                 dtype_str = quant_format_str[2:]
             else:
-                parts = quant_format_str.split("_", 1)
-                if len(parts) == 2 and parts[0] in SCHEME_MAP:
-                    quant_type = SCHEME_MAP[parts[0]]
-                    dtype_str = parts[1]
+                matched_scheme = None
+                for scheme in sorted(scheme_map, key=len, reverse=True):
+                    if quant_format_str.startswith(scheme + "_"):
+                        matched_scheme = scheme
+                        break
+                if matched_scheme is not None:
+                    quant_type = scheme_map[matched_scheme]
+                    dtype_str = quant_format_str[len(matched_scheme) + 1 :]
                 else:
                     raise ValueError(
                         f"Unsupported online quant format: '{quant_format_str}'. "
diff --git a/atom/quantization/quark/utils.py b/atom/quantization/quark/utils.py
index 3312fce74..a0e58bb11 100644
--- a/atom/quantization/quark/utils.py
+++ b/atom/quantization/quark/utils.py
@@ -124,3 +124,41 @@ def weight_dequant_mxfp8(
     y = x.to(torch.float32).reshape(M, n_blocks, block_size)
     y = y * scale.unsqueeze(-1)
     return y.reshape(M, K).to(out_dtype)
+
+
+def quantize_weight_to_fp8_128x128_blockscale(weight, quant_dtype):
+    """Quantize a 2D weight to FP8 with 128x128 block scales.
+
+    Returns:
+        q_weight: quantized weight with the same shape as input ``weight``.
+        scale: per-block scale with shape ``(ceil(N/128), ceil(K/128))``.
+    """
+    assert weight.dim() == 2, f"expected 2D weight, got shape={tuple(weight.shape)}"
+
+    w = weight.to(torch.float32).contiguous()
+    n, k = w.shape
+    n_blocks = (n + 127) // 128
+    k_blocks = (k + 127) // 128
+    n_padded = n_blocks * 128
+    k_padded = k_blocks * 128
+
+    if n_padded != n or k_padded != k:
+        w = torch.nn.functional.pad(w, (0, k_padded - k, 0, n_padded - n))
+
+    w_blocks = w.view(n_blocks, 128, k_blocks, 128).permute(0, 2, 1, 3).contiguous()
+
+    finfo = torch.finfo(quant_dtype)
+    block_amax = w_blocks.abs().amax(dim=(2, 3))
+    scale = (block_amax / finfo.max).clamp_min(torch.finfo(torch.float32).tiny)
+
+    q_blocks = torch.clamp(
+        w_blocks / scale.unsqueeze(-1).unsqueeze(-1), min=finfo.min, max=finfo.max
+    ).to(quant_dtype)
+
+    q_weight = (
+        q_blocks.permute(0, 2, 1, 3)
+        .contiguous()
+        .view(n_padded, k_padded)[:n, :k]
+        .contiguous()
+    )
+    return q_weight, scale.contiguous()