diff --git a/vllm/hpu/ops.py b/vllm/hpu/ops.py
index 9e901d2ad0b7b..634ea270b58ec 100644
--- a/vllm/hpu/ops.py
+++ b/vllm/hpu/ops.py
@@ -231,6 +231,16 @@ def forward(self, state):
         return torch.matmul(state, self.weight)
 
 
+def calculate_routing_tensors(score, topk, hidden_states_dtype):
+    routing_weights = F.softmax(score, dim=1, dtype=torch.float32)
+    routing_weights, selected_experts = torch.topk(routing_weights,
+                                                   topk,
+                                                   dim=-1)
+    routing_weights /= routing_weights.sum(dim=-1, keepdim=True)
+    routing_weights = routing_weights.to(hidden_states_dtype)
+    return routing_weights, selected_experts
+
+
 class StaticFusedMOE(torch.nn.Module):
 
     def __init__(self, num_total_experts):
@@ -243,12 +253,8 @@ def __init__(self, num_total_experts):
 
     def forward(self, hidden_states, w1, w2, score, topk):
         B, D = hidden_states.shape
-        routing_weights = F.softmax(score, dim=1, dtype=torch.float32)
-        routing_weights, selected_experts = torch.topk(routing_weights,
-                                                       topk,
-                                                       dim=-1)
-        routing_weights /= routing_weights.sum(dim=-1, keepdim=True)
-        routing_weights = routing_weights.to(hidden_states.dtype)
+        routing_weights, selected_experts = calculate_routing_tensors(
+                score, topk, hidden_states.dtype)
         final_hidden_states = torch.zeros((1, B, D),
                                           dtype=hidden_states.dtype,
                                           device=hidden_states.device)
@@ -271,3 +277,33 @@ def forward(self, hidden_states, w1, w2, score, topk):
             final_hidden_states += current_hidden_states_static
 
         return final_hidden_states.view(-1, D)
+
+
+class DynamicFusedMOE(torch.nn.Module):
+
+    def __init__(self, num_total_experts):
+        super().__init__()
+        self.num_total_experts = num_total_experts
+
+    def forward(self, hidden_states, w1, w2, score, topk):
+        htorch.core.mark_step()
+        routing_weights, selected_experts = calculate_routing_tensors(
+                score, topk, hidden_states.dtype)
+        # pre-processing for custom op inputs
+        experts_range = range(self.num_total_experts)
+        w1_list = [w1[i,:,:].squeeze() for i in experts_range]
+        w2_list = [w2[i,:,:].squeeze() for i in experts_range]
+
+        final_hidden_states = torch.ops.hpu.mixture_of_experts(
+                hidden_states=hidden_states,
+                expert_routing_table=selected_experts,
+                router_weights=routing_weights,
+                w12=w1_list,
+                w3=w2_list,
+                permuted_weights=True,
+                activation="silu",
+                experts_min=0,
+                experts_max=7
+        )
+
+        return final_hidden_states.view(-1, hidden_states.shape[1])
\ No newline at end of file
diff --git a/vllm/model_executor/layers/fused_moe/layer.py b/vllm/model_executor/layers/fused_moe/layer.py
index cf0d5f98f1b01..589cd73871af8 100644
--- a/vllm/model_executor/layers/fused_moe/layer.py
+++ b/vllm/model_executor/layers/fused_moe/layer.py
@@ -202,8 +202,14 @@ def __init__(
         self.num_expert_group = num_expert_group
         self.topk_group = topk_group
         if is_hpu():
-            from vllm.hpu.ops import StaticFusedMOE
-            self.hpu_static_fused_moe = StaticFusedMOE(self.num_experts)
+            from vllm.hpu.ops import StaticFusedMOE, DynamicFusedMOE
+            from vllm.model_executor.layers.quantization.inc import INCConfig
+            selected_fused_moe = (
+                StaticFusedMOE
+                if isinstance(quant_config, INCConfig)
+                else DynamicFusedMOE
+            )
+            self.hpu_static_fused_moe = selected_fused_moe(self.num_experts)
 
         if quant_config is None:
             self.quant_method: Optional[QuantizeMethodBase] = (
@@ -254,24 +260,25 @@ def weight_loader(self, param: torch.nn.Parameter,
             shard_size = self.intermediate_size_per_partition
             shard = slice(tp_rank * shard_size, (tp_rank + 1) * shard_size)
 
+            from vllm.hpu.ops import StaticFusedMOE
             # w1, gate_proj case: Load into first shard of w13.
             if shard_id == 0:
                 param_data[expert_id,
                            0:shard_size, :] = loaded_weight[shard, :]
-                if is_hpu():
+                if is_hpu() and isinstance(self.hpu_static_fused_moe, StaticFusedMOE):
                     self.hpu_static_fused_moe.w13_list[expert_id].set_weight(
                         param_data[expert_id])
             # w3, up_proj case: Load into second shard of w13.
             elif shard_id == 2:
                 param_data[expert_id, shard_size:2 *
                            shard_size, :] = loaded_weight[shard, :]
-                if is_hpu():
+                if is_hpu() and isinstance(self.hpu_static_fused_moe, StaticFusedMOE):
                     self.hpu_static_fused_moe.w13_list[expert_id].set_weight(
                         param_data[expert_id])
             # w2, down_proj case: Load into only shard of w2.
             elif shard_id == 1:
                 param_data[expert_id, :, :] = loaded_weight[:, shard]
-                if is_hpu():
+                if is_hpu() and isinstance(self.hpu_static_fused_moe, StaticFusedMOE):
                     self.hpu_static_fused_moe.w2_list[expert_id].set_weight(
                         param_data[expert_id])
             else: