diff --git a/torchtitan/parallelisms/parallelize_llama.py b/torchtitan/parallelisms/parallelize_llama.py
index 32fbcc633d..f801072fb1 100644
--- a/torchtitan/parallelisms/parallelize_llama.py
+++ b/torchtitan/parallelisms/parallelize_llama.py
@@ -448,7 +448,7 @@ def apply_compile(model, job_config: JobConfig):
 
 def apply_dp(model, world_mesh, parallel_dims, job_config: JobConfig):
     """
-    Apply data parallelism to the model. FSDP2 is used here.
+    Apply data parallelism (FSDP2) to the model.
     """
 
     dp_mesh = world_mesh["dp"] if world_mesh.ndim > 1 else world_mesh
@@ -461,21 +461,20 @@ def apply_dp(model, world_mesh, parallel_dims, job_config: JobConfig):
     fsdp_config = {"mesh": dp_mesh, "mp_policy": mp_policy}
 
     for layer_id, transformer_block in model.layers.items():
-        # As an optimization, do not reshard after forward for the last
-        # transformer block since FSDP would prefetch it immediately.
-        # When using Pipeline Parallelism, generally zero-2 is best so as to avoid repeated reshardings
-        # per microbatch.
-        reshard_after_forward = (
-            int(layer_id) < len(model.layers) - 1 and not parallel_dims.pp_enabled
-        )
+        if parallel_dims.pp_enabled:
+            # For PP, do not reshard after forward to avoid per-microbatch
+            # all-gathers, which can be expensive and non-overlapped
+            reshard_after_forward = False
+        else:
+            # As an optimization, do not reshard after forward for the last
+            # transformer block since FSDP would prefetch it immediately
+            reshard_after_forward = int(layer_id) < len(model.layers) - 1
         fully_shard(
             transformer_block,
             **fsdp_config,
             reshard_after_forward=reshard_after_forward,
         )
-        model.layers[layer_id] = transformer_block
-
-    model = fully_shard(
+    fully_shard(
         model, **fsdp_config, reshard_after_forward=not parallel_dims.pp_enabled
     )