diff --git a/sgl-kernel/CMakeLists.txt b/sgl-kernel/CMakeLists.txt
index 3c267a4de..15818d289 100644
--- a/sgl-kernel/CMakeLists.txt
+++ b/sgl-kernel/CMakeLists.txt
@@ -32,6 +32,7 @@ add_library(_kernels SHARED
     src/sgl-kernel/csrc/trt_reduce_kernel.cu
     src/sgl-kernel/csrc/moe_align_kernel.cu
     src/sgl-kernel/csrc/int8_gemm_kernel.cu
+    src/sgl-kernel/csrc/sampling_scaling_penalties.cu
     src/sgl-kernel/csrc/sgl_kernel_ops.cu
 )
 
diff --git a/sgl-kernel/pyproject.toml b/sgl-kernel/pyproject.toml
index 359ffafd7..b03b4c02b 100644
--- a/sgl-kernel/pyproject.toml
+++ b/sgl-kernel/pyproject.toml
@@ -4,7 +4,7 @@ build-backend = "setuptools.build_meta"
 
 [project]
 name = "sgl-kernel"
-version = "0.0.2.post11"
+version = "0.0.2.post12"
 description = "Kernel Library for SGLang"
 readme = "README.md"
 requires-python = ">=3.8"
diff --git a/sgl-kernel/setup.py b/sgl-kernel/setup.py
index c93e87f6b..83025d6d6 100644
--- a/sgl-kernel/setup.py
+++ b/sgl-kernel/setup.py
@@ -50,6 +50,7 @@ ext_modules = [
             "src/sgl-kernel/csrc/trt_reduce_kernel.cu",
             "src/sgl-kernel/csrc/moe_align_kernel.cu",
             "src/sgl-kernel/csrc/int8_gemm_kernel.cu",
+            "src/sgl-kernel/csrc/sampling_scaling_penalties.cu",
             "src/sgl-kernel/csrc/sgl_kernel_ops.cu",
         ],
         include_dirs=include_dirs,
diff --git a/sgl-kernel/src/sgl-kernel/__init__.py b/sgl-kernel/src/sgl-kernel/__init__.py
index 892808f1e..62c366731 100644
--- a/sgl-kernel/src/sgl-kernel/__init__.py
+++ b/sgl-kernel/src/sgl-kernel/__init__.py
@@ -4,6 +4,7 @@ from sgl_kernel.ops import (
     init_custom_reduce,
     int8_scaled_mm,
     moe_align_block_size,
+    sampling_scaling_penalties,
 )
 
 __all__ = [
@@ -12,4 +13,5 @@ __all__ = [
     "custom_dispose",
     "custom_reduce",
     "int8_scaled_mm",
+    "sampling_scaling_penalties",
 ]
diff --git a/sgl-kernel/src/sgl-kernel/csrc/sampling_scaling_penalties.cu b/sgl-kernel/src/sgl-kernel/csrc/sampling_scaling_penalties.cu
new file mode 100644
index 000000000..30264caa3
--- /dev/null
+++ b/sgl-kernel/src/sgl-kernel/csrc/sampling_scaling_penalties.cu
@@ -0,0 +1,64 @@
+#include <ATen/ATen.h>
+#include <ATen/cuda/CUDAContext.h>
+#include <c10/cuda/CUDAGuard.h>
+#include <THC/THCAtomics.cuh>
+#include "utils.hpp"
+#include "vectorization.cuh"
+
+template <typename scalar_t>
+__global__ void sampling_scaling_penalties_kernel(
+    const scalar_t* logits,
+    const scalar_t* scaling_penalties,
+    scalar_t* output,
+    const int32_t numel) {
+
+    const int32_t tid = blockIdx.x * blockDim.x + threadIdx.x;
+    const int32_t stride = blockDim.x * gridDim.x;
+
+    auto const* vectorized_logits = reinterpret_cast<vec4_t<scalar_t> const*>(logits);
+    auto const* vectorized_penalties = reinterpret_cast<vec4_t<scalar_t> const*>(scaling_penalties);
+    auto* vectorized_output = reinterpret_cast<vec4_t<scalar_t>*>(output);
+
+    const int32_t num_vec_elems = numel >> 2;
+
+#pragma unroll 4
+    for (int32_t i = tid; i < num_vec_elems; i += stride) {
+        vec4_t<scalar_t> logits_vec = vectorized_logits[i];
+        vec4_t<scalar_t> penalties_vec = vectorized_penalties[i];
+        vec4_t<scalar_t> out_vec;
+
+        out_vec.x = logits_vec.x > 0 ? logits_vec.x / penalties_vec.x : logits_vec.x * penalties_vec.x;
+        out_vec.y = logits_vec.y > 0 ? logits_vec.y / penalties_vec.y : logits_vec.y * penalties_vec.y;
+        out_vec.z = logits_vec.z > 0 ? logits_vec.z / penalties_vec.z : logits_vec.z * penalties_vec.z;
+        out_vec.w = logits_vec.w > 0 ? logits_vec.w / penalties_vec.w : logits_vec.w * penalties_vec.w;
+
+        vectorized_output[i] = out_vec;
+    }
+
+    const int32_t start_idx = num_vec_elems * 4;
+    for (int32_t i = start_idx + tid; i < numel; i += stride) {
+        scalar_t logit = logits[i];
+        scalar_t penalty = scaling_penalties[i];
+        output[i] = logit > 0 ? logit / penalty : logit * penalty;
+    }
+}
+
+torch::Tensor sampling_scaling_penalties(const torch::Tensor& logits, const torch::Tensor& scaling_penalties) {
+    auto output = torch::empty_like(logits);
+    const auto numel = logits.numel();
+    const int threads = 512;
+
+    const cudaStream_t stream = at::cuda::getCurrentCUDAStream();
+
+    AT_DISPATCH_FLOATING_TYPES_AND2(at::ScalarType::Half, at::ScalarType::BFloat16,
+        logits.scalar_type(), "sampling_scaling_penalties_kernel", ([&] {
+        const int blocks = (numel + threads * 4 - 1) / (threads * 4);
+        sampling_scaling_penalties_kernel<scalar_t><<<blocks, threads, 0, stream>>>(
+            logits.data_ptr<scalar_t>(),
+            scaling_penalties.data_ptr<scalar_t>(),
+            output.data_ptr<scalar_t>(),
+            numel);
+    }));
+
+    return output;
+}
diff --git a/sgl-kernel/src/sgl-kernel/csrc/sgl_kernel_ops.cu b/sgl-kernel/src/sgl-kernel/csrc/sgl_kernel_ops.cu
index 6ed543e6c..fbfe51442 100644
--- a/sgl-kernel/src/sgl-kernel/csrc/sgl_kernel_ops.cu
+++ b/sgl-kernel/src/sgl-kernel/csrc/sgl_kernel_ops.cu
@@ -12,6 +12,9 @@ void moe_align_block_size(torch::Tensor topk_ids, int64_t num_experts, int64_t b
                           torch::Tensor sorted_token_ids, torch::Tensor experts_ids, torch::Tensor num_tokens_post_pad,
                           torch::Tensor token_cnts_buffer, torch::Tensor cumsum_buffer);
 
+// sampling_scaling_penalties
+torch::Tensor sampling_scaling_penalties(const torch::Tensor& logits, const torch::Tensor& scaling_penalties);
+
 // int8_scaled_mm
 torch::Tensor int8_scaled_mm(const torch::Tensor& mat_a, const torch::Tensor& mat_b, const torch::Tensor& scales_a,
                              const torch::Tensor& scales_b, const torch::Dtype& out_dtype,
@@ -24,6 +27,8 @@ PYBIND11_MODULE(TORCH_EXTENSION_NAME, m) {
   m.def("all_reduce", &all_reduce, "custom all reduce (CUDA)");
   // moe_align_block_size
   m.def("moe_align_block_size", &moe_align_block_size, "MOE Align Block Size (CUDA)");
+  // sampling_scaling_penalties
+  m.def("sampling_scaling_penalties", &sampling_scaling_penalties, "Sampling scaling penalties (CUDA)");
   // int8_scaled_mm
   m.def("int8_scaled_mm", &int8_scaled_mm, "INT8 scaled matmul (CUDA)");
 }
diff --git a/sgl-kernel/src/sgl-kernel/csrc/vectorization.cuh b/sgl-kernel/src/sgl-kernel/csrc/vectorization.cuh
new file mode 100644
index 000000000..cb36d0e7a
--- /dev/null
+++ b/sgl-kernel/src/sgl-kernel/csrc/vectorization.cuh
@@ -0,0 +1,30 @@
+// Adapted from https://github.com/vllm-project/vllm/blob/main/csrc/quantization/vectorization.cuh
+#pragma once
+/**
+ * __device__ datatypes vectorized by 4
+ */
+
+// Include both AMD and NVIDIA fp8 types to avoid circular import
+// TODO(luka/varun) use FP8_TYPE instead after refactoring
+#include <c10/util/Float8_e4m3fnuz.h>
+#include <c10/util/Float8_e4m3fn.h>
+
+// Vectorization containers
+template <typename scalar_t>
+struct __align__(8) vec4_t {
+  scalar_t x;
+  scalar_t y;
+  scalar_t z;
+  scalar_t w;
+};
+
+template <typename quant_type_t>
+struct __align__(4) q8x4_t {
+  static_assert(std::is_same_v<quant_type_t, int8_t> ||
+                std::is_same_v<quant_type_t, c10::Float8_e4m3fn> ||
+                std::is_same_v<quant_type_t, c10::Float8_e4m3fnuz>);
+  quant_type_t x;
+  quant_type_t y;
+  quant_type_t z;
+  quant_type_t w;
+};
diff --git a/sgl-kernel/src/sgl-kernel/ops/__init__.py b/sgl-kernel/src/sgl-kernel/ops/__init__.py
index e388ae356..03a8db80f 100644
--- a/sgl-kernel/src/sgl-kernel/ops/__init__.py
+++ b/sgl-kernel/src/sgl-kernel/ops/__init__.py
@@ -3,6 +3,9 @@ from sgl_kernel.ops._kernels import dispose as _dispose
 from sgl_kernel.ops._kernels import init_custom_ar as _init_custom_ar
 from sgl_kernel.ops._kernels import int8_scaled_mm as _int8_scaled_mm
 from sgl_kernel.ops._kernels import moe_align_block_size as _moe_align_block_size
+from sgl_kernel.ops._kernels import (
+    sampling_scaling_penalties as _sampling_scaling_penalties,
+)
 
 
 def init_custom_reduce(rank_id, num_devices, buffers, barrier_in, barrier_out):
@@ -39,6 +42,10 @@ def moe_align_block_size(
     )
 
 
+def sampling_scaling_penalties(logits, scaling_penalties):
+    return _sampling_scaling_penalties(logits, scaling_penalties)
+
+
 def int8_scaled_mm(mat_a, mat_b, scales_a, scales_b, out_dtype, bias=None):
     return _int8_scaled_mm(
         mat_a,
diff --git a/sgl-kernel/tests/test_sampling_scaling_penalties.py b/sgl-kernel/tests/test_sampling_scaling_penalties.py
new file mode 100644
index 000000000..4b9746fd7
--- /dev/null
+++ b/sgl-kernel/tests/test_sampling_scaling_penalties.py
@@ -0,0 +1,39 @@
+import torch
+from sgl_kernel import sampling_scaling_penalties
+
+
+def test_sampling_scaling_penalties():
+    batch_sizes = [1, 2, 4, 8, 16, 32, 64, 65]
+    vocab_sizes = [2048, 4096, 8192, 16384, 32768, 32767]
+    dtypes = [torch.float32, torch.half, torch.bfloat16]
+    device = torch.device("cuda")
+
+    for dtype in dtypes:
+        rtol = 1e-3
+        atol = 1e-3
+
+        for bs in batch_sizes:
+            for vocab_size in vocab_sizes:
+                logits = torch.randn(bs, vocab_size, device=device, dtype=dtype)
+                scaling_penalties = (
+                    torch.rand(bs, vocab_size, device=device, dtype=dtype) + 0.5
+                )
+
+                ref_output = torch.where(
+                    logits > 0, logits / scaling_penalties, logits * scaling_penalties
+                )
+
+                kernel_output = sampling_scaling_penalties(logits, scaling_penalties)
+
+                torch.testing.assert_close(
+                    kernel_output,
+                    ref_output,
+                    rtol=rtol,
+                    atol=atol,
+                    msg=f"Failed for batch_size={bs}, vocab_size={vocab_size}, dtype={dtype}",
+                )
+
+
+if __name__ == "__main__":
+    test_sampling_scaling_penalties()
+    print("All tests passed!")