diff --git a/python/llm/example/GPU/HF-Transformers-AutoModels/Model/codeshell/README.md b/python/llm/example/GPU/HF-Transformers-AutoModels/Model/codeshell/README.md
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+# CodeShell
+
+In this directory, you'll find how to use this codeshell server with vscode codeshell extension.
+
+## 0. Extra Environment Preparations
+
+Suppose you have already configured GPU environment, you will need some extra preparation
+
+1. install extra requirements
+    ```
+    pip install uvicorn fastapi sse_starlette
+    ```
+
+2. search `codeshell` in vscode extension market, then install `CodeShell VSCode Extension` extension
+
+3. change extension settings:
+    - change `Code Shell: Run Env For LLMs` to `GPU with TGI toolkit`
+    - disable `Code Shell: Auto Trigger Completion` (use `Alt + \` to trigger completion manually)
+
+4. download WisdomShell/CodeShell-7B-Chat (don't use CodeShell-7B)
+
+## 1. How to use this server
+
+```
+python server.py [--option value]
+```
+
+1. `--checkpoint-path <path>`: path to huggingface model checkpoint
+2. `--device xpu`: enable GPU or not
+3. `--multi-turn`: enable multi turn conversation or just support single turn conversation
+4. `--cpu-embedding`: move Embedding layer to CPU or not
+5. `--max-context <number>`: Clip the context length in Code Completion, it won't affect other features, set it to 99999 to disable it
+
+## 2. Note
+
+In my test, if use vscode remote connection to connect to a remote machine, then install extension and running this server on that remote machine, all extension features expect for Code Completion can be used.
+
+If don't use remote conection, then install extension and running this server on local machine, Code Completion can also be used.
diff --git a/python/llm/example/GPU/HF-Transformers-AutoModels/Model/codeshell/server.py b/python/llm/example/GPU/HF-Transformers-AutoModels/Model/codeshell/server.py
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+#
+# Copyright 2016 The BigDL Authors.
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+#
+
+import time
+import json
+from tqdm import tqdm
+from argparse import ArgumentParser
+from typing import Dict, List
+from threading import Thread
+import torch
+import uvicorn
+from fastapi import FastAPI
+from fastapi.responses import JSONResponse
+from fastapi.middleware.cors import CORSMiddleware
+from pydantic import BaseModel
+from transformers import AutoTokenizer
+# from transformers import AutoModelForCausalLM, AutoModel
+from bigdl.llm.transformers import AutoModelForCausalLM, AutoModel
+from transformers.generation import GenerationConfig, TextIteratorStreamer
+from transformers import StoppingCriteriaList, StoppingCriteria
+from sse_starlette.sse import EventSourceResponse
+
+
+app = FastAPI()
+
+app.add_middleware(
+    CORSMiddleware,
+    allow_origins=["*"],
+    allow_credentials=True,
+    allow_methods=["*"],
+    allow_headers=["*"],
+)
+
+
+class GenerationParameters(BaseModel):
+    max_new_tokens: int
+    temperature: float
+    repetition_penalty: float
+    top_p: float
+    do_sample: bool
+    stop: List[str]
+
+
+class GenerationRequest(BaseModel):
+    inputs: str
+    parameters: GenerationParameters
+
+
+class StopWordsCriteria(StoppingCriteria):
+    """Custom `StoppingCriteria` which checks if all generated functions in the batch are completed."""
+    def __init__(self, input_length, stop_words, tokenizer):
+        self.input_length = input_length
+        self.stop_words = stop_words
+        self.stop_words += ["|<end|", "|end>|"]
+        self.tokenizer = tokenizer
+
+    def __call__(self, input_ids, scores, **kwargs):
+        """Returns true if all generated sequences contain any of the end-of-function strings."""
+        texts =  [ self.tokenizer.decode(ids[self.input_length:]) for ids in input_ids ]
+        dones = [ any(stop_word in text for stop_word in self.stop_words) for text in texts ]
+        return all(dones)
+
+
+@app.post("/generate")
+async def generate(request: GenerationRequest):
+    global model, tokenizer, device, max_context
+
+    if device == 'xpu':
+        torch.xpu.empty_cache()
+
+    prompt = request.inputs
+    input_ids = tokenizer.encode(prompt, return_tensors="pt")
+    input_length = len(input_ids[0])
+
+    if input_length > max_context:
+        tokens = list(input_ids[0])
+        prefix_index = tokens.index(70001)   # fim_prefix
+        middle_index = tokens.index(70002)   # fim_middle
+        suffix_index = tokens.index(70003)   # fim_suffix
+
+        prefix_tokens = tokens[prefix_index+1:suffix_index]
+        suffix_tokens = tokens[suffix_index+1:middle_index]
+        prefix_len = suffix_index - prefix_index - 1
+        suffix_len = middle_index - suffix_index - 1
+
+        if prefix_len + suffix_len > max_context:
+            new_prefix_len = max_context * prefix_len // (prefix_len + suffix_len)
+            new_suffix_len = max_context * suffix_len // (prefix_len + suffix_len)
+            new_prefix_tokens = prefix_tokens[-new_prefix_len:]
+            new_suffix_tokens = suffix_tokens[:new_suffix_len]
+
+            input_ids = torch.tensor(
+                tokens[:prefix_index+1] +
+                new_prefix_tokens +
+                tokens[suffix_index:suffix_index+1] +
+                new_suffix_tokens +
+                tokens[middle_index:]
+            ).reshape(1, -1)
+            input_length = len(input_ids[0])
+            prompt = tokenizer.decode(input_ids[0])
+
+    input_ids = input_ids.to(device)
+
+    stopping_criteria = StoppingCriteriaList(
+        [ StopWordsCriteria(input_length, request.parameters.stop, tokenizer) ]
+    )
+
+    generation_kwargs = dict(stopping_criteria=stopping_criteria,
+                             max_new_tokens=request.parameters.max_new_tokens,
+                             temperature=request.parameters.temperature,
+                             repetition_penalty=request.parameters.repetition_penalty,
+                             top_p=request.parameters.top_p,
+                             do_sample=request.parameters.do_sample)
+
+    print('-'*80)
+    print('input prompt:', prompt)
+    print('input length:', input_length)
+    print('-'*80)
+
+    output_ids = model.generate(input_ids, **generation_kwargs)
+    output_text = tokenizer.decode(output_ids[0])
+
+    return JSONResponse({
+                "generated_text": output_text[len(prompt):]
+            })
+
+
+@app.post("/generate_stream")
+async def generate_stream(request: GenerationRequest):
+    global model, tokenizer, device, multi_turn
+
+    if device == 'xpu':
+        torch.xpu.empty_cache()
+
+    prompt = request.inputs
+
+    if multi_turn:
+        prompt = prompt
+    else:
+        # extract the last turn input
+        human_ins = "## human"
+        first_ins = prompt.find(human_ins)
+        last_ins = prompt.rfind(human_ins)
+        prompt = prompt[:first_ins] + prompt[last_ins:]
+
+    input_ids = tokenizer(prompt, return_tensors="pt")
+    input_length = len(input_ids['input_ids'][0])
+    input_ids = input_ids.to(device)
+
+    streamer = TextIteratorStreamer(tokenizer, skip_prompt=True)
+    stopping_criteria = StoppingCriteriaList(
+        [ StopWordsCriteria(input_length, request.parameters.stop, tokenizer) ]
+    )
+
+    max_batch = 1024
+    if input_length <= max_batch:
+        past_key_values = None
+    else:
+        with torch.inference_mode():
+            past_key_values = None
+            for start_pos in range(0, input_length - 1, max_batch):
+                end_pos = min(start_pos + max_batch, input_length - 1)
+                output = model.forward(input_ids['input_ids'][:, start_pos:end_pos],
+                                       past_key_values=past_key_values)
+                past_key_values = output.past_key_values
+
+    generation_kwargs = dict(input_ids,
+                             past_key_values=past_key_values,
+                             streamer=streamer,
+                             stopping_criteria=stopping_criteria,
+                             max_new_tokens=request.parameters.max_new_tokens,
+                             temperature=request.parameters.temperature,
+                             repetition_penalty=request.parameters.repetition_penalty,
+                             top_p=request.parameters.top_p,
+                             do_sample=request.parameters.do_sample)
+
+    print('-'*80)
+    print('input prompt:', prompt)
+    print('input length:', input_length)
+    print('-'*80)
+
+    thread = Thread(target=model.generate, kwargs=generation_kwargs)
+    thread.start()
+
+    def create_response(streamer):
+        for word in tqdm(streamer, "Generating Tokens", unit="token"):
+            yield json.dumps({
+                "token": {
+                    "id": 0,
+                    "text": word,
+                },
+            })
+
+    return EventSourceResponse(create_response(streamer), media_type="text/event-stream")
+
+
+def _get_args():
+    parser = ArgumentParser()
+    parser.add_argument(
+        "-c",
+        "--checkpoint-path",
+        type=str,
+        default="CodeShell-7B-Chat",
+        help="Checkpoint name or path, default to %(default)r",
+    )
+    parser.add_argument(
+        "--device",
+        type=str,
+        default="cpu",
+        help="Device name."
+    )
+    parser.add_argument(
+        "--server-port",
+        type=int,
+        default=8080,
+        help="Demo server port."
+    )
+    parser.add_argument(
+        "--server-name",
+        type=str,
+        default="127.0.0.1",
+        help="Demo server name. Default: 127.0.0.1, which is only visible from the local computer."
+        " If you want other computers to access your server, use 0.0.0.0 instead.",
+    )
+    parser.add_argument(
+        "--multi-turn",
+        action="store_true",
+        help="Enable multi-turn chat",
+    )
+    parser.add_argument(
+        "--cpu-embedding",
+        action="store_true",
+        help="Move Embedding layer to CPU"
+    )
+    parser.add_argument(
+        "--max-context",
+        type=int,
+        default=300,
+        help="Max context length when using code completion",
+    )
+
+    args = parser.parse_args()
+    return args
+
+if __name__ == "__main__":
+    args = _get_args()
+
+    tokenizer = AutoTokenizer.from_pretrained(
+        args.checkpoint_path,
+        trust_remote_code=True,
+    )
+
+    model = AutoModelForCausalLM.from_pretrained(
+        args.checkpoint_path,
+        trust_remote_code=True,
+        load_in_4bit=True,
+        cpu_embedding=args.cpu_embedding
+    ).eval()
+
+    device = args.device
+    multi_turn = args.multi_turn
+    max_context = args.max_context
+
+    if device == 'xpu':
+        import intel_extension_for_pytorch as ipex
+
+    model = model.to(device)
+
+    model.generation_config = GenerationConfig.from_pretrained(
+        args.checkpoint_path,
+        trust_remote_code=True,
+        resume_download=True,
+    )
+
+    uvicorn.run(app, host=args.server_name, port=args.server_port, workers=1)