diff --git a/examples/lightrag_lmdeploy_demo.py b/examples/lightrag_lmdeploy_demo.py
new file mode 100644
index 00000000..aeb96f71
--- /dev/null
+++ b/examples/lightrag_lmdeploy_demo.py
@@ -0,0 +1,75 @@
+import os
+
+from lightrag import LightRAG, QueryParam
+from lightrag.llm import lmdeploy_model_if_cache, hf_embedding
+from lightrag.utils import EmbeddingFunc
+from transformers import AutoModel, AutoTokenizer
+
+WORKING_DIR = "./dickens"
+
+if not os.path.exists(WORKING_DIR):
+    os.mkdir(WORKING_DIR)
+
+
+async def lmdeploy_model_complete(
+    prompt=None, system_prompt=None, history_messages=[], **kwargs
+) -> str:
+    model_name = kwargs["hashing_kv"].global_config["llm_model_name"]
+    return await lmdeploy_model_if_cache(
+        model_name,
+        prompt,
+        system_prompt=system_prompt,
+        history_messages=history_messages,
+        ## please specify chat_template if your local path does not follow original HF file name,
+        ## or model_name is a pytorch model on huggingface.co,
+        ## you can refer to https://github.com/InternLM/lmdeploy/blob/main/lmdeploy/model.py
+        ## for a list of chat_template available in lmdeploy.
+        chat_template="llama3",
+        # model_format ='awq', # if you are using awq quantization model.
+        # quant_policy=8, # if you want to use online kv cache, 4=kv int4, 8=kv int8.
+        **kwargs,
+    )
+
+
+rag = LightRAG(
+    working_dir=WORKING_DIR,
+    llm_model_func=lmdeploy_model_complete,
+    llm_model_name="meta-llama/Llama-3.1-8B-Instruct",  # please use definite path for local model
+    embedding_func=EmbeddingFunc(
+        embedding_dim=384,
+        max_token_size=5000,
+        func=lambda texts: hf_embedding(
+            texts,
+            tokenizer=AutoTokenizer.from_pretrained(
+                "sentence-transformers/all-MiniLM-L6-v2"
+            ),
+            embed_model=AutoModel.from_pretrained(
+                "sentence-transformers/all-MiniLM-L6-v2"
+            ),
+        ),
+    ),
+)
+
+
+with open("./book.txt", "r", encoding="utf-8") as f:
+    rag.insert(f.read())
+
+# Perform naive search
+print(
+    rag.query("What are the top themes in this story?", param=QueryParam(mode="naive"))
+)
+
+# Perform local search
+print(
+    rag.query("What are the top themes in this story?", param=QueryParam(mode="local"))
+)
+
+# Perform global search
+print(
+    rag.query("What are the top themes in this story?", param=QueryParam(mode="global"))
+)
+
+# Perform hybrid search
+print(
+    rag.query("What are the top themes in this story?", param=QueryParam(mode="hybrid"))
+)
diff --git a/lightrag/llm.py b/lightrag/llm.py
index bb0d6063..d86886ea 100644
--- a/lightrag/llm.py
+++ b/lightrag/llm.py
@@ -286,7 +286,9 @@ async def hf_model_if_cache(
     output = hf_model.generate(
         **input_ids, max_new_tokens=512, num_return_sequences=1, early_stopping=True
     )
-    response_text = hf_tokenizer.decode(output[0][len(inputs["input_ids"][0]):], skip_special_tokens=True)
+    response_text = hf_tokenizer.decode(
+        output[0][len(inputs["input_ids"][0]) :], skip_special_tokens=True
+    )
     if hashing_kv is not None:
         await hashing_kv.upsert({args_hash: {"return": response_text, "model": model}})
     return response_text
@@ -322,6 +324,135 @@ async def ollama_model_if_cache(
     return result
 
 
+@lru_cache(maxsize=1)
+def initialize_lmdeploy_pipeline(
+    model,
+    tp=1,
+    chat_template=None,
+    log_level="WARNING",
+    model_format="hf",
+    quant_policy=0,
+):
+    from lmdeploy import pipeline, ChatTemplateConfig, TurbomindEngineConfig
+
+    lmdeploy_pipe = pipeline(
+        model_path=model,
+        backend_config=TurbomindEngineConfig(
+            tp=tp, model_format=model_format, quant_policy=quant_policy
+        ),
+        chat_template_config=ChatTemplateConfig(model_name=chat_template)
+        if chat_template
+        else None,
+        log_level="WARNING",
+    )
+    return lmdeploy_pipe
+
+
+async def lmdeploy_model_if_cache(
+    model,
+    prompt,
+    system_prompt=None,
+    history_messages=[],
+    chat_template=None,
+    model_format="hf",
+    quant_policy=0,
+    **kwargs,
+) -> str:
+    """
+    Args:
+        model (str): The path to the model.
+            It could be one of the following options:
+                    - i) A local directory path of a turbomind model which is
+                        converted by `lmdeploy convert` command or download
+                        from ii) and iii).
+                    - ii) The model_id of a lmdeploy-quantized model hosted
+                        inside a model repo on huggingface.co, such as
+                        "InternLM/internlm-chat-20b-4bit",
+                        "lmdeploy/llama2-chat-70b-4bit", etc.
+                    - iii) The model_id of a model hosted inside a model repo
+                        on huggingface.co, such as "internlm/internlm-chat-7b",
+                        "Qwen/Qwen-7B-Chat ", "baichuan-inc/Baichuan2-7B-Chat"
+                        and so on.
+        chat_template (str): needed when model is a pytorch model on
+            huggingface.co, such as "internlm-chat-7b",
+            "Qwen-7B-Chat ", "Baichuan2-7B-Chat" and so on,
+            and when the model name of local path did not match the original model name in HF.
+        tp (int): tensor parallel
+        prompt (Union[str, List[str]]): input texts to be completed.
+        do_preprocess (bool): whether pre-process the messages. Default to
+            True, which means chat_template will be applied.
+        skip_special_tokens (bool): Whether or not to remove special tokens
+            in the decoding. Default to be True.
+        do_sample (bool): Whether or not to use sampling, use greedy decoding otherwise.
+            Default to be False, which means greedy decoding will be applied.
+    """
+    try:
+        import lmdeploy
+        from lmdeploy import version_info, GenerationConfig
+    except Exception:
+        raise ImportError("Please install lmdeploy before intialize lmdeploy backend.")
+
+    kwargs.pop("response_format", None)
+    max_new_tokens = kwargs.pop("max_tokens", 512)
+    tp = kwargs.pop("tp", 1)
+    skip_special_tokens = kwargs.pop("skip_special_tokens", True)
+    do_preprocess = kwargs.pop("do_preprocess", True)
+    do_sample = kwargs.pop("do_sample", False)
+    gen_params = kwargs
+
+    version = version_info
+    if do_sample is not None and version < (0, 6, 0):
+        raise RuntimeError(
+            "`do_sample` parameter is not supported by lmdeploy until "
+            f"v0.6.0, but currently using lmdeloy {lmdeploy.__version__}"
+        )
+    else:
+        do_sample = True
+        gen_params.update(do_sample=do_sample)
+
+    lmdeploy_pipe = initialize_lmdeploy_pipeline(
+        model=model,
+        tp=tp,
+        chat_template=chat_template,
+        model_format=model_format,
+        quant_policy=quant_policy,
+        log_level="WARNING",
+    )
+
+    messages = []
+    if system_prompt:
+        messages.append({"role": "system", "content": system_prompt})
+
+    hashing_kv: BaseKVStorage = kwargs.pop("hashing_kv", None)
+    messages.extend(history_messages)
+    messages.append({"role": "user", "content": prompt})
+    if hashing_kv is not None:
+        args_hash = compute_args_hash(model, messages)
+        if_cache_return = await hashing_kv.get_by_id(args_hash)
+        if if_cache_return is not None:
+            return if_cache_return["return"]
+
+    gen_config = GenerationConfig(
+        skip_special_tokens=skip_special_tokens,
+        max_new_tokens=max_new_tokens,
+        **gen_params,
+    )
+
+    response = ""
+    async for res in lmdeploy_pipe.generate(
+        messages,
+        gen_config=gen_config,
+        do_preprocess=do_preprocess,
+        stream_response=False,
+        session_id=1,
+    ):
+        response += res.response
+
+    if hashing_kv is not None:
+        await hashing_kv.upsert({args_hash: {"return": response, "model": model}})
+    return response
+
+
 async def gpt_4o_complete(
     prompt, system_prompt=None, history_messages=[], **kwargs
 ) -> str:
diff --git a/requirements.txt b/requirements.txt
index 98f32b0a..6b0e025a 100644
--- a/requirements.txt
+++ b/requirements.txt
@@ -13,3 +13,4 @@ tiktoken
 torch
 transformers
 xxhash
+# lmdeploy[all]