diff --git a/tests/quantization/test_rtn.py b/tests/quantization/test_rtn.py
new file mode 100644
index 0000000000000..04c1f98a709e2
--- /dev/null
+++ b/tests/quantization/test_rtn.py
@@ -0,0 +1,28 @@
+# SPDX-License-Identifier: Apache-2.0
+# Copyright © 2025, Oracle and/or its affiliates.
+"""Tests RTN quantization startup and generation, 
+doesn't test correctness
+"""
+import pytest
+
+from tests.quantization.utils import is_quant_method_supported
+
+MODELS = ["microsoft/Phi-3-mini-4k-instruct"]
+
+
+@pytest.mark.skipif(not is_quant_method_supported("rtn"),
+                    reason="RTN is not supported on this GPU type.")
+@pytest.mark.parametrize("model", MODELS)
+@pytest.mark.parametrize("dtype", ["bfloat16"])
+@pytest.mark.parametrize("max_tokens", [10])
+def test_model_rtn_startup(
+    hf_runner,
+    vllm_runner,
+    example_prompts,
+    model: str,
+    dtype: str,
+    max_tokens: int,
+) -> None:
+
+    with vllm_runner(model, dtype=dtype, quantization="rtn") as vllm_model:
+        vllm_model.generate_greedy(example_prompts, max_tokens)
diff --git a/vllm/model_executor/layers/quantization/__init__.py b/vllm/model_executor/layers/quantization/__init__.py
index 1cb23e7a18875..60217ee86ad1d 100644
--- a/vllm/model_executor/layers/quantization/__init__.py
+++ b/vllm/model_executor/layers/quantization/__init__.py
@@ -35,6 +35,7 @@ QuantizationMethods = Literal[
     "moe_wna16",
     "torchao",
     "auto-round",
+    "rtn",
 ]
 QUANTIZATION_METHODS: list[str] = list(get_args(QuantizationMethods))
 
@@ -110,6 +111,7 @@ def get_quantization_config(quantization: str) -> type[QuantizationConfig]:
     from .neuron_quant import NeuronQuantConfig
     from .ptpc_fp8 import PTPCFp8Config
     from .qqq import QQQConfig
+    from .rtn import RTNConfig
     from .torchao import TorchAOConfig
     from .tpu_int8 import Int8TpuConfig
 
@@ -142,6 +144,7 @@ def get_quantization_config(quantization: str) -> type[QuantizationConfig]:
         "moe_wna16": MoeWNA16Config,
         "torchao": TorchAOConfig,
         "auto-round": AutoRoundConfig,
+        "rtn": RTNConfig
     }
     # Update the `method_to_config` with customized quantization methods.
     method_to_config.update(_CUSTOMIZED_METHOD_TO_QUANT_CONFIG)
diff --git a/vllm/model_executor/layers/quantization/rtn.py b/vllm/model_executor/layers/quantization/rtn.py
new file mode 100644
index 0000000000000..7e7fd6d51fd32
--- /dev/null
+++ b/vllm/model_executor/layers/quantization/rtn.py
@@ -0,0 +1,288 @@
+# SPDX-License-Identifier: Apache-2.0
+# Copyright © 2025, Oracle and/or its affiliates.
+
+import os
+from typing import Any, Optional
+
+import torch
+import torch.nn.functional as F
+from torch.nn.parameter import Parameter
+
+from vllm.logger import init_logger
+from vllm.model_executor.layers.linear import (LinearBase, LinearMethodBase,
+                                               set_weight_attrs)
+from vllm.model_executor.layers.quantization import QuantizationMethods
+from vllm.model_executor.layers.quantization.base_config import (
+    QuantizationConfig)
+
+logger = init_logger(__name__)
+"""By default, use 8 bit as target precision, but it can be 
+overridden by setting the RTN_NUM_BITS envvar
+"""
+NUM_BITS = os.getenv('RTN_NUM_BITS', "8")
+"""By default, use group size of 128 parameters, but it can be 
+overridden by setting the RTN_GROUP_SIZE envvar
+"""
+GROUP_SIZE = os.getenv('RTN_GROUP_SIZE', "128")
+
+
+class RTNConfig(QuantizationConfig):
+    """Config class for RTN.
+    """
+
+    def __init__(
+            self,
+            weight_bits: int = int(NUM_BITS),
+            group_size: int = int(GROUP_SIZE),
+    ) -> None:
+        self.weight_bits = weight_bits
+        self.group_size = group_size
+
+        if self.weight_bits != 4 and self.weight_bits != 8:
+            raise ValueError(
+                "Currently, only 4-bit or 8-bit weight quantization is "
+                f"supported for RTN, but got {self.weight_bits} bits.")
+
+    def __repr__(self) -> str:
+        return (f"RTNConfig(weight_bits={self.weight_bits}, "
+                f"group_size={self.group_size})")
+
+    @classmethod
+    def get_name(cls) -> QuantizationMethods:
+        return "rtn"
+
+    @classmethod
+    def get_supported_act_dtypes(cls) -> list[torch.dtype]:
+        return [torch.bfloat16, torch.half]
+
+    @classmethod
+    def get_min_capability(cls) -> int:
+        return 80
+
+    @classmethod
+    def get_config_filenames(cls) -> list[str]:
+        return []
+
+    @classmethod
+    def from_config(cls, config: dict[str, Any]) -> "RTNConfig":
+        weight_bits = cls.get_from_keys(config, ["bits"])
+        group_size = cls.get_from_keys(config, ["group_size"])
+        return cls(weight_bits, group_size)
+
+    def get_quant_method(self, layer: torch.nn.Module,
+                         prefix: str) -> Optional["RTNLinearMethod"]:
+        if isinstance(layer, LinearBase):
+            return RTNLinearMethod(self)
+        return None
+
+
+class RTNTensor:
+    """A wrapper over Tensor that enables quantization on-the-fly by
+    overloading the copy_ method.
+    """
+
+    def __init__(self, data: torch.Tensor, scale: torch.Tensor,
+                 quant_config: RTNConfig) -> None:
+        self.data = data
+        self.scale = scale
+        self.quant_config = quant_config
+
+    def narrow(self, dim, start, length):
+        factor = 1 if self.quant_config.weight_bits == 8 else 2
+        return RTNTensor(
+            self.data.narrow(dim, start // factor, length // factor),
+            self.scale.narrow(dim, start, length), self.quant_config)
+
+    @property
+    def shape(self):
+        shape = self.data.shape
+        factor = 1 if self.quant_config.weight_bits == 8 else 2
+        return torch.Size((shape[0] * factor, shape[1]))
+
+    def copy_(self, loaded_weight: torch.Tensor) -> None:
+        qweight, weight_scale = rtn_quantize(loaded_weight.cuda(),
+                                             self.quant_config.weight_bits,
+                                             self.quant_config.group_size)
+
+        self.data.copy_(qweight)
+        self.scale.data.copy_(weight_scale)
+
+
+class RTNParameter(Parameter):
+    """A wrapper over Parameter that returns RTNTensor (a wrapper over Tensor)
+    when its data is accessed. We need this wrapper for the data loading phase
+    only, so we can intercept a weight copying function (torch.Tensor.copy_)
+    and apply quantization on-the-fly.
+    """
+
+    def __new__(cls, data: torch.Tensor, **kwargs):
+        return super().__new__(cls, data=data, requires_grad=False)
+
+    def __init__(self, data: torch.Tensor, scale: torch.Tensor,
+                 quant_config: RTNConfig) -> None:
+        self.scale = scale
+        self.quant_config = quant_config
+
+    @property
+    def data(self):
+        return RTNTensor(super().data, self.scale, self.quant_config)
+
+
+class RTNLinearMethod(LinearMethodBase):
+    """Linear method for RTN.
+
+    Args:
+        quant_config: The RTN quantization config.
+    """
+
+    def __init__(self, quant_config: RTNConfig):
+        self.quant_config = quant_config
+
+    def create_weights(
+        self,
+        layer: torch.nn.Module,
+        input_size_per_partition: int,
+        output_partition_sizes: list[int],
+        input_size: int,
+        output_size: int,
+        params_dtype: torch.dtype,
+        **extra_weight_attrs,
+    ):
+        output_size_per_partition = sum(output_partition_sizes)
+        num_groups_per_col = (input_size_per_partition //
+                              self.quant_config.group_size
+                              if self.quant_config.group_size != -1 else 1)
+
+        scale = Parameter(
+            torch.empty(output_size_per_partition,
+                        num_groups_per_col,
+                        dtype=params_dtype),
+            requires_grad=False,
+        )
+        factor = 1 if self.quant_config.weight_bits == 8 else 2
+
+        weight = RTNParameter(data=torch.empty(output_size_per_partition //
+                                               factor,
+                                               input_size_per_partition,
+                                               dtype=torch.int8),
+                              scale=scale,
+                              quant_config=self.quant_config)
+
+        layer.register_parameter("weight", weight)
+        set_weight_attrs(weight, {
+            **extra_weight_attrs,
+            "input_dim": 1,
+            "output_dim": 0,
+        })
+
+        layer.register_parameter("scale", scale)
+        layer.output_size_per_partition = output_size_per_partition
+
+    def process_weights_after_loading(self, layer: torch.nn.Module) -> None:
+        """torch.compile does not know how to deal with a Parameter subclass
+        (aka RTNParameter). As we don't really need RTNParameters for the
+        forward pass, we replace them with equivalent instances of Parameters.
+        """
+        old_weight = layer.weight
+        assert isinstance(old_weight, RTNParameter)
+        data = old_weight.data.data
+
+        delattr(layer, "weight")
+
+        new_weight = Parameter(data=data, requires_grad=False)
+        layer.register_parameter("weight", new_weight)
+
+    def apply(self,
+              layer: torch.nn.Module,
+              x: torch.Tensor,
+              bias: Optional[torch.Tensor] = None) -> torch.Tensor:
+        qweight = layer.weight
+        scale = layer.scale
+
+        weight = rtn_dequantize(qweight, scale)
+        out = F.linear(x, weight)
+        del weight
+        if bias is not None:
+            out.add_(bias)
+
+        return out
+
+
+def rtn_quantize(tensor: torch.Tensor, num_bits: int,
+                 group_size: int) -> tuple[torch.Tensor, torch.Tensor]:
+    """Quantize a tensor using per-group static scaling factor.
+
+    Args:
+        tensor: The input tensor.
+        num_bits: Target precision for the result (supported values are
+                  8 or 4).
+        group_size: Quantization granularity. 
+                    If equal to -1, each row in the input tensor is treated
+                    as one group.
+    """
+
+    q_range = 2**num_bits
+    num_groups = (tensor.shape[0] * tensor.shape[1] //
+                  group_size if group_size != -1 else tensor.shape[0])
+    """Calculate a scaling factor per input group.
+    """
+    input_flat = tensor.reshape(num_groups, -1)
+    input_min = torch.min(input_flat, dim=1, keepdim=True)[0]
+    input_max = torch.max(input_flat, dim=1, keepdim=True)[0]
+    input_max_abs = torch.max(input_min.abs(), input_max.abs())
+    scale = (input_max_abs * 2.0 / (q_range - 1))
+    """Scale each input group, truncate and round to the nearest integer.
+    """
+    scaled_input = input_flat / scale
+    scaled_input = scaled_input.clamp(-q_range // 2, q_range // 2 - 1)
+    scaled_input = scaled_input.round()
+
+    scale = scale.reshape(tensor.shape[0], -1).contiguous()
+    inputs_q = scaled_input.reshape(tensor.shape).to(torch.int8)
+    inputs_q = inputs_q.contiguous()
+
+    if num_bits == 4:
+        """Pack two 4-bit values into each byte.
+        """
+        inputs_q = (inputs_q[:, 1::2] << 4) | (inputs_q[:, ::2] & 0xf)
+        inputs_q = inputs_q.reshape(tensor.shape[0] // 2, tensor.shape[1])
+        inputs_q = inputs_q.contiguous()
+
+    return inputs_q, scale
+
+
+def rtn_dequantize(tensor: torch.Tensor, scale: torch.Tensor) -> torch.Tensor:
+    """Dequantize a tensor using per-group static scaling factors.
+
+    Args:
+        tensor: The input tensor.
+        scale: The tensor with per-group scale factors.
+    """
+
+    num_groups = scale.size(0) * scale.size(1)
+    input_dim, output_dim = tensor.shape
+
+    num_bits = 8 if input_dim == scale.size(0) else 4
+    if num_bits == 4:
+        input_dim *= 2
+
+    data = torch.empty((input_dim, output_dim),
+                       dtype=scale.dtype,
+                       device=tensor.device)
+
+    if num_bits == 8:
+        data.copy_(tensor)
+    else:
+        """Unpack two 4-bit values from each byte.
+        """
+        tensor = tensor.reshape(input_dim, output_dim // 2)
+        for i in range(2):
+            data[:, i::2] = (tensor << 4 * (1 - i)) >> 4
+    """Scale each input group with its scaling factor.
+    """
+    scale = scale.reshape(num_groups, -1)
+    data = data.reshape(num_groups, -1)
+    data = torch.mul(data, scale)
+
+    input_deq = data.reshape((input_dim, output_dim)).contiguous()
+    return input_deq