diff --git a/deepspeed/utils/nvtx.py b/deepspeed/utils/nvtx.py
index 7c566480a86a..72d7c863a33f 100644
--- a/deepspeed/utils/nvtx.py
+++ b/deepspeed/utils/nvtx.py
@@ -4,19 +4,21 @@
 # DeepSpeed Team
 
 from deepspeed.accelerator import get_accelerator
+from deepspeed.runtime.compiler import is_compiling
 
 enable_nvtx = True
 
 
 def instrument_w_nvtx(func):
-    """decorator that causes an NVTX range to be recorded for the duration of the
-    function call."""
+    """Decorator that records an NVTX range for the duration of the function call.
+       Skips NVTX instrumentation when torch.compile is active to avoid graph breaks.
+    """
 
     def wrapped_fn(*args, **kwargs):
-        if enable_nvtx:
+        if enable_nvtx and not is_compiling():
             get_accelerator().range_push(func.__qualname__)
         ret_val = func(*args, **kwargs)
-        if enable_nvtx:
+        if enable_nvtx and not is_compiling():
             get_accelerator().range_pop()
         return ret_val