diff --git a/tests/acceleration/test_acceleration_framework.py b/tests/acceleration/test_acceleration_framework.py
index 6015cf8cd..d63f717a5 100644
--- a/tests/acceleration/test_acceleration_framework.py
+++ b/tests/acceleration/test_acceleration_framework.py
@@ -532,61 +532,6 @@ def test_framework_initialize_and_trains_with_aadp():
         assert spy["augmentation_calls"] == 1
         assert spy["get_ready_for_train_calls"] == 1
 
-
-@pytest.mark.skipif(
-    not is_fms_accelerate_available(plugins="aadp"),
-    reason="Only runs if fms-accelerate is installed along with \
-        attention_and_distributed_packing plugin",
-)
-def test_padding_free_plugin_raises_error_with_untokenized_dataset():
-    """
-    Currently sft_trainer uses DataCollatorForCompletionOnlyLM for unformatted,
-    untokenized datasets. It uses a DataCollatorForSeq2Seq as default for pretokenized
-    datasets.
-    Ensure that padding free plugin will raise an error when an untokenized
-    dataset is passed to the padding-free plugin when it checks the data collator.
-    """
-
-    with tempfile.TemporaryDirectory() as tempdir:
-
-        model_args = copy.deepcopy(MODEL_ARGS)
-        model_args.model_name_or_path = "TinyLlama/TinyLlama-1.1B-Chat-v0.3"
-        train_args = copy.deepcopy(TRAIN_ARGS)
-        train_args.output_dir = tempdir
-        train_args.save_strategy = "no"
-        data_args = copy.deepcopy(DATA_ARGS)
-        data_args.training_data_path = TWITTER_COMPLAINTS_JSON_FORMAT
-        data_args.response_template = "\n### Response:"
-        data_args.dataset_text_field = "output"
-
-        # initialize a config
-        aadp_config = AttentionAndDistributedPackingConfig(
-            padding_free=PaddingFree(method="huggingface")
-        )
-
-        with pytest.raises(
-            TypeError,
-            match="The padding-free plugin currently only works with a \
-                    `DataCollatorForSeq2Seq` collate_fn",
-        ):
-            with build_framework_and_maybe_instantiate(
-                [
-                    (
-                        ["training.attention.padding_free"],
-                        PaddingFreeAccelerationPlugin,
-                    ),
-                ],
-                instantiate=False,
-            ):
-                with instantiate_model_patcher():
-                    sft_trainer.train(
-                        model_args,
-                        data_args,
-                        train_args,
-                        attention_and_distributed_packing_config=aadp_config,
-                    )
-
-
 def test_error_raised_with_paddingfree_and_flash_attn_disabled():
     """Ensure error raised when padding-free is not used with flash attention"""
     with pytest.raises(