diff --git a/CHANGELOG.md b/CHANGELOG.md
index 7ec2c531a0ce9..b3bd21cbaca1b 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -207,6 +207,7 @@ The format is based on [Keep a Changelog](http://keepachangelog.com/en/1.0.0/).
     * Added `DDPSpawnPlugin.spawn()` for spawning new processes of a given function ([#10018](https://github.com/PyTorchLightning/pytorch-lightning/pull/10018))
     * Added `TrainingTypePlugin.{_setup_model, _setup_optimizer}` methods ([#9994](https://github.com/PyTorchLightning/pytorch-lightning/pull/9994))
     * Implemented `DataParallelPlugin._setup_model` ([#10010](https://github.com/PyTorchLightning/pytorch-lightning/pull/10010))
+    * Implemented `DeepSpeedPlugin._setup_models_and_optimizers` ([#10009](https://github.com/PyTorchLightning/pytorch-lightning/pull/10009))
 
 ### Changed
 
diff --git a/pytorch_lightning/plugins/training_type/deepspeed.py b/pytorch_lightning/plugins/training_type/deepspeed.py
index e2e8c316f48d1..019fd41d5d1cc 100644
--- a/pytorch_lightning/plugins/training_type/deepspeed.py
+++ b/pytorch_lightning/plugins/training_type/deepspeed.py
@@ -22,7 +22,9 @@
 from typing import Any, Callable, Dict, Generator, List, Mapping, Optional, Tuple, Union
 
 import torch
+from torch.nn import Module
 from torch.optim import Optimizer
+from torch.optim.lr_scheduler import _LRScheduler
 
 import pytorch_lightning as pl
 from pytorch_lightning.overrides.base import _LightningModuleWrapperBase
@@ -377,6 +379,50 @@ def pre_dispatch(self):
         self.init_deepspeed()
         self.barrier()
 
+    def _setup_models_and_optimizers(
+        self, models: List[Module], optimizers: List[Optimizer]
+    ) -> Tuple[List[Module], List[Optimizer]]:
+        """Setup multiple models and multiple optimizers together.
+
+        Currently only one model paired with a single optimizer is supported.
+
+        Return:
+            A list with one model wrapped into a :class:`deepspeed.DeepSpeedEngine` and list with a single
+            deepspeed optimizer.
+        """
+        if not (len(models) == len(optimizers) == 1):
+            raise ValueError(
+                f"Currently only one model and one optimizer is supported with DeepSpeed."
+                f" Got {len(models)} models and {len(optimizers)} optimizers instead."
+            )
+
+        # train_micro_batch_size_per_gpu is used for throughput logging purposes
+        # normally we set this to the batch size, but it is not available here unless the user provides it
+        # as part of the config
+        self.config.setdefault("train_micro_batch_size_per_gpu", 1)
+        self._model, optimizer = self._setup_model_and_optimizer(models[0], optimizers[0])
+        self._set_deepspeed_activation_checkpointing()
+        return [self._model], [optimizer]
+
+    def _setup_model_and_optimizer(
+        self, model: Module, optimizer: Optimizer, lr_scheduler: Optional[_LRScheduler] = None
+    ):
+        """Initialize one model and one optimizer with an optional learning rate scheduler.
+
+        This calls :func:`deepspeed.initialize` internally.
+        """
+        model_parameters = filter(lambda p: p.requires_grad, model.parameters())
+        deepspeed_engine, deepspeed_optimizer, _, _ = deepspeed.initialize(
+            args=argparse.Namespace(device_rank=self.root_device.index),
+            config=self.config,
+            model=model,
+            model_parameters=model_parameters,  # type: ignore
+            optimizer=optimizer,
+            lr_scheduler=lr_scheduler,
+            dist_init_required=False,
+        )
+        return deepspeed_engine, deepspeed_optimizer
+
     def init_deepspeed(self):
         # check that `configure_gradient_clipping` hook isn't overriden since deepspeed handles
         # gradient clipping internally
@@ -441,18 +487,7 @@ def _initialize_deepspeed_train(self, model):
             optimizer, lr_scheduler, _ = self._init_optimizers()
 
         scheduler = lr_scheduler["scheduler"]
-
-        model_parameters = filter(lambda p: p.requires_grad, self.model.parameters())
-        model, deepspeed_optimizer, _, deepspeed_scheduler = deepspeed.initialize(
-            args=argparse.Namespace(device_rank=self.root_device.index),
-            config=self.config,
-            model=model,
-            model_parameters=model_parameters,
-            optimizer=optimizer,
-            lr_scheduler=scheduler,
-            dist_init_required=False,
-        )
-
+        model, deepspeed_optimizer = self._setup_model_and_optimizer(model, optimizer, scheduler)
         self._set_deepspeed_activation_checkpointing()
 
         # although we set these here, deepspeed manages the specific optimizer logic
@@ -568,6 +603,10 @@ def _format_config(self):
         self._format_precision_config()
 
     def _format_batch_size_and_grad_accum_config(self):
+        # todo: using lite, we do not support these variables within the config
+        if self.lightning_module is None:
+            return
+
         if "gradient_accumulation_steps" in self.config:
             raise MisconfigurationException(
                 "Do not set `gradient_accumulation_steps` in the DeepSpeed config"