diff --git a/src/diffusers/__init__.py b/src/diffusers/__init__.py
index ecf4fe5fef95..776551c7136d 100644
--- a/src/diffusers/__init__.py
+++ b/src/diffusers/__init__.py
@@ -65,6 +65,7 @@
 if is_flax_available():
     from .modeling_flax_utils import FlaxModelMixin
     from .models.unet_2d_condition_flax import FlaxUNet2DConditionModel
+    from .models.vae_flax import FlaxAutoencoderKL
     from .schedulers import (
         FlaxDDIMScheduler,
         FlaxDDPMScheduler,
diff --git a/src/diffusers/modeling_flax_utils.py b/src/diffusers/modeling_flax_utils.py
index f195462eca3e..83ae076d2836 100644
--- a/src/diffusers/modeling_flax_utils.py
+++ b/src/diffusers/modeling_flax_utils.py
@@ -294,6 +294,7 @@ def from_pretrained(
             local_files_only=local_files_only,
             use_auth_token=use_auth_token,
             revision=revision,
+            subfolder=subfolder,
             # model args
             dtype=dtype,
             **kwargs,
diff --git a/src/diffusers/models/vae_flax.py b/src/diffusers/models/vae_flax.py
new file mode 100644
index 000000000000..e3906c09b1cc
--- /dev/null
+++ b/src/diffusers/models/vae_flax.py
@@ -0,0 +1,608 @@
+# JAX implementation of VQGAN from taming-transformers https://github.com/CompVis/taming-transformers
+
+import math
+from functools import partial
+from typing import Tuple
+
+import flax
+import flax.linen as nn
+import jax
+import jax.numpy as jnp
+from flax.core.frozen_dict import FrozenDict
+
+from ..configuration_utils import ConfigMixin, flax_register_to_config
+from ..modeling_flax_utils import FlaxModelMixin
+from ..utils import BaseOutput
+
+
+@flax.struct.dataclass
+class FlaxDecoderOutput(BaseOutput):
+    """
+    Output of decoding method.
+
+    Args:
+        sample (`jnp.ndarray` of shape `(batch_size, num_channels, height, width)`):
+            Decoded output sample of the model. Output of the last layer of the model.
+    """
+
+    sample: jnp.ndarray
+
+
+@flax.struct.dataclass
+class FlaxAutoencoderKLOutput(BaseOutput):
+    """
+    Output of AutoencoderKL encoding method.
+
+    Args:
+        latent_dist (`DiagonalGaussianDistribution`):
+            Encoded outputs of `Encoder` represented as the mean and logvar of `DiagonalGaussianDistribution`.
+            `DiagonalGaussianDistribution` allows for sampling latents from the distribution.
+    """
+
+    latent_dist: "DiagonalGaussianDistribution"
+
+
+class Upsample2D(nn.Module):
+    in_channels: int
+    dtype: jnp.dtype = jnp.float32
+
+    def setup(self):
+        self.conv = nn.Conv(
+            self.in_channels,
+            kernel_size=(3, 3),
+            strides=(1, 1),
+            padding=((1, 1), (1, 1)),
+            dtype=self.dtype,
+        )
+
+    def __call__(self, hidden_states):
+        batch, height, width, channels = hidden_states.shape
+        hidden_states = jax.image.resize(
+            hidden_states,
+            shape=(batch, height * 2, width * 2, channels),
+            method="nearest",
+        )
+        hidden_states = self.conv(hidden_states)
+        return hidden_states
+
+
+class Downsample2D(nn.Module):
+    in_channels: int
+    dtype: jnp.dtype = jnp.float32
+
+    def setup(self):
+        self.conv = nn.Conv(
+            self.in_channels,
+            kernel_size=(3, 3),
+            strides=(2, 2),
+            padding="VALID",
+            dtype=self.dtype,
+        )
+
+    def __call__(self, hidden_states):
+        pad = ((0, 0), (0, 1), (0, 1), (0, 0))  # pad height and width dim
+        hidden_states = jnp.pad(hidden_states, pad_width=pad)
+        hidden_states = self.conv(hidden_states)
+        return hidden_states
+
+
+class ResnetBlock2D(nn.Module):
+    in_channels: int
+    out_channels: int = None
+    dropout_prob: float = 0.0
+    use_nin_shortcut: bool = None
+    dtype: jnp.dtype = jnp.float32
+
+    def setup(self):
+        out_channels = self.in_channels if self.out_channels is None else self.out_channels
+
+        self.norm1 = nn.GroupNorm(num_groups=32, epsilon=1e-6)
+        self.conv1 = nn.Conv(
+            out_channels,
+            kernel_size=(3, 3),
+            strides=(1, 1),
+            padding=((1, 1), (1, 1)),
+            dtype=self.dtype,
+        )
+
+        self.norm2 = nn.GroupNorm(num_groups=32, epsilon=1e-6)
+        self.dropout = nn.Dropout(self.dropout_prob)
+        self.conv2 = nn.Conv(
+            out_channels,
+            kernel_size=(3, 3),
+            strides=(1, 1),
+            padding=((1, 1), (1, 1)),
+            dtype=self.dtype,
+        )
+
+        use_nin_shortcut = self.in_channels != out_channels if self.use_nin_shortcut is None else self.use_nin_shortcut
+
+        self.conv_shortcut = None
+        if use_nin_shortcut:
+            self.conv_shortcut = nn.Conv(
+                out_channels,
+                kernel_size=(1, 1),
+                strides=(1, 1),
+                padding="VALID",
+                dtype=self.dtype,
+            )
+
+    def __call__(self, hidden_states, deterministic=True):
+        residual = hidden_states
+        hidden_states = self.norm1(hidden_states)
+        hidden_states = nn.swish(hidden_states)
+        hidden_states = self.conv1(hidden_states)
+
+        hidden_states = self.norm2(hidden_states)
+        hidden_states = nn.swish(hidden_states)
+        hidden_states = self.dropout(hidden_states, deterministic)
+        hidden_states = self.conv2(hidden_states)
+
+        if self.conv_shortcut is not None:
+            residual = self.conv_shortcut(residual)
+
+        return hidden_states + residual
+
+
+class AttentionBlock(nn.Module):
+    channels: int
+    num_head_channels: int = None
+    dtype: jnp.dtype = jnp.float32
+
+    def setup(self):
+        self.num_heads = self.channels // self.num_head_channels if self.num_head_channels is not None else 1
+
+        dense = partial(nn.Dense, self.channels, dtype=self.dtype)
+
+        self.group_norm = nn.GroupNorm(num_groups=32, epsilon=1e-6)
+        self.query, self.key, self.value = dense(), dense(), dense()
+        self.proj_attn = dense()
+
+    def transpose_for_scores(self, projection):
+        new_projection_shape = projection.shape[:-1] + (self.num_heads, -1)
+        # move heads to 2nd position (B, T, H * D) -> (B, T, H, D)
+        new_projection = projection.reshape(new_projection_shape)
+        # (B, T, H, D) -> (B, H, T, D)
+        new_projection = jnp.transpose(new_projection, (0, 2, 1, 3))
+        return new_projection
+
+    def __call__(self, hidden_states):
+        residual = hidden_states
+        batch, height, width, channels = hidden_states.shape
+
+        hidden_states = self.group_norm(hidden_states)
+
+        hidden_states = hidden_states.reshape((batch, height * width, channels))
+
+        query = self.query(hidden_states)
+        key = self.key(hidden_states)
+        value = self.value(hidden_states)
+
+        # transpose
+        query = self.transpose_for_scores(query)
+        key = self.transpose_for_scores(key)
+        value = self.transpose_for_scores(value)
+
+        # compute attentions
+        scale = 1 / math.sqrt(math.sqrt(self.channels / self.num_heads))
+        attn_weights = jnp.einsum("...qc,...kc->...qk", query * scale, key * scale)
+        attn_weights = nn.softmax(attn_weights, axis=-1)
+
+        # attend to values
+        hidden_states = jnp.einsum("...kc,...qk->...qc", value, attn_weights)
+
+        hidden_states = jnp.transpose(hidden_states, (0, 2, 1, 3))
+        new_hidden_states_shape = hidden_states.shape[:-2] + (self.channels,)
+        hidden_states = hidden_states.reshape(new_hidden_states_shape)
+
+        hidden_states = self.proj_attn(hidden_states)
+        hidden_states = hidden_states.reshape((batch, height, width, channels))
+        hidden_states = hidden_states + residual
+        return hidden_states
+
+
+class DownEncoderBlock2D(nn.Module):
+    in_channels: int
+    out_channels: int
+    dropout: float = 0.0
+    num_layers: int = 1
+    add_downsample: bool = True
+    dtype: jnp.dtype = jnp.float32
+
+    def setup(self):
+        resnets = []
+        for i in range(self.num_layers):
+            in_channels = self.in_channels if i == 0 else self.out_channels
+
+            res_block = ResnetBlock2D(
+                in_channels=in_channels,
+                out_channels=self.out_channels,
+                dropout_prob=self.dropout,
+                dtype=self.dtype,
+            )
+            resnets.append(res_block)
+        self.resnets = resnets
+
+        if self.add_downsample:
+            self.downsample = Downsample2D(self.out_channels, dtype=self.dtype)
+
+    def __call__(self, hidden_states, deterministic=True):
+        for resnet in self.resnets:
+            hidden_states = resnet(hidden_states, deterministic=deterministic)
+
+        if self.add_downsample:
+            hidden_states = self.downsample(hidden_states)
+
+        return hidden_states
+
+
+class UpEncoderBlock2D(nn.Module):
+    in_channels: int
+    out_channels: int
+    dropout: float = 0.0
+    num_layers: int = 1
+    add_upsample: bool = True
+    dtype: jnp.dtype = jnp.float32
+
+    def setup(self):
+        resnets = []
+        for i in range(self.num_layers):
+            in_channels = self.in_channels if i == 0 else self.out_channels
+            res_block = ResnetBlock2D(
+                in_channels=in_channels,
+                out_channels=self.out_channels,
+                dropout_prob=self.dropout,
+                dtype=self.dtype,
+            )
+            resnets.append(res_block)
+
+        self.resnets = resnets
+
+        if self.add_upsample:
+            self.upsample = Upsample2D(self.out_channels, dtype=self.dtype)
+
+    def __call__(self, hidden_states, deterministic=True):
+        for resnet in self.resnets:
+            hidden_states = resnet(hidden_states, deterministic=deterministic)
+
+        if self.add_upsample:
+            hidden_states = self.upsample(hidden_states)
+
+        return hidden_states
+
+
+class UNetMidBlock2D(nn.Module):
+    in_channels: int
+    dropout: float = 0.0
+    num_layers: int = 1
+    attn_num_head_channels: int = 1
+    dtype: jnp.dtype = jnp.float32
+
+    def setup(self):
+        # there is always at least one resnet
+        resnets = [
+            ResnetBlock2D(
+                in_channels=self.in_channels,
+                out_channels=self.in_channels,
+                dropout_prob=self.dropout,
+                dtype=self.dtype,
+            )
+        ]
+
+        attentions = []
+
+        for _ in range(self.num_layers):
+            attn_block = AttentionBlock(
+                channels=self.in_channels, num_head_channels=self.attn_num_head_channels, dtype=self.dtype
+            )
+            attentions.append(attn_block)
+
+            res_block = ResnetBlock2D(
+                in_channels=self.in_channels,
+                out_channels=self.in_channels,
+                dropout_prob=self.dropout,
+                dtype=self.dtype,
+            )
+            resnets.append(res_block)
+
+        self.resnets = resnets
+        self.attentions = attentions
+
+    def __call__(self, hidden_states, deterministic=True):
+        hidden_states = self.resnets[0](hidden_states, deterministic=deterministic)
+        for attn, resnet in zip(self.attentions, self.resnets[1:]):
+            hidden_states = attn(hidden_states)
+            hidden_states = resnet(hidden_states, deterministic=deterministic)
+
+        return hidden_states
+
+
+class Encoder(nn.Module):
+    in_channels: int = 3
+    out_channels: int = 3
+    down_block_types: Tuple[str] = ("DownEncoderBlock2D",)
+    block_out_channels: Tuple[int] = (64,)
+    layers_per_block: int = 2
+    norm_num_groups: int = 32
+    act_fn: str = "silu"
+    double_z: bool = False
+    dtype: jnp.dtype = jnp.float32
+
+    def setup(self):
+        block_out_channels = self.block_out_channels
+        # in
+        self.conv_in = nn.Conv(
+            block_out_channels[0],
+            kernel_size=(3, 3),
+            strides=(1, 1),
+            padding=((1, 1), (1, 1)),
+            dtype=self.dtype,
+        )
+
+        # downsampling
+        down_blocks = []
+        output_channel = block_out_channels[0]
+        for i, _ in enumerate(self.down_block_types):
+            input_channel = output_channel
+            output_channel = block_out_channels[i]
+            is_final_block = i == len(block_out_channels) - 1
+
+            down_block = DownEncoderBlock2D(
+                in_channels=input_channel,
+                out_channels=output_channel,
+                num_layers=self.layers_per_block,
+                add_downsample=not is_final_block,
+                dtype=self.dtype,
+            )
+            down_blocks.append(down_block)
+        self.down_blocks = down_blocks
+
+        # middle
+        self.mid_block = UNetMidBlock2D(
+            in_channels=block_out_channels[-1], attn_num_head_channels=None, dtype=self.dtype
+        )
+
+        # end
+        conv_out_channels = 2 * self.out_channels if self.double_z else self.out_channels
+        self.conv_norm_out = nn.GroupNorm(num_groups=32, epsilon=1e-6)
+        self.conv_out = nn.Conv(
+            conv_out_channels,
+            kernel_size=(3, 3),
+            strides=(1, 1),
+            padding=((1, 1), (1, 1)),
+            dtype=self.dtype,
+        )
+
+    def __call__(self, sample, deterministic: bool = True):
+        # in
+        sample = self.conv_in(sample)
+
+        # downsampling
+        for block in self.down_blocks:
+            sample = block(sample, deterministic=deterministic)
+
+        # middle
+        sample = self.mid_block(sample, deterministic=deterministic)
+
+        # end
+        sample = self.conv_norm_out(sample)
+        sample = nn.swish(sample)
+        sample = self.conv_out(sample)
+
+        return sample
+
+
+class Decoder(nn.Module):
+    dtype: jnp.dtype = jnp.float32
+    in_channels: int = 3
+    out_channels: int = 3
+    up_block_types: Tuple[str] = ("UpDecoderBlock2D",)
+    block_out_channels: int = (64,)
+    layers_per_block: int = 2
+    norm_num_groups: int = 32
+    act_fn: str = "silu"
+
+    def setup(self):
+        block_out_channels = self.block_out_channels
+
+        # z to block_in
+        self.conv_in = nn.Conv(
+            block_out_channels[-1],
+            kernel_size=(3, 3),
+            strides=(1, 1),
+            padding=((1, 1), (1, 1)),
+            dtype=self.dtype,
+        )
+
+        # middle
+        self.mid_block = UNetMidBlock2D(
+            in_channels=block_out_channels[-1], attn_num_head_channels=None, dtype=self.dtype
+        )
+
+        # upsampling
+        reversed_block_out_channels = list(reversed(block_out_channels))
+        output_channel = reversed_block_out_channels[0]
+        up_blocks = []
+        for i, _ in enumerate(self.up_block_types):
+            prev_output_channel = output_channel
+            output_channel = reversed_block_out_channels[i]
+
+            is_final_block = i == len(block_out_channels) - 1
+
+            up_block = UpEncoderBlock2D(
+                in_channels=prev_output_channel,
+                out_channels=output_channel,
+                num_layers=self.layers_per_block + 1,
+                add_upsample=not is_final_block,
+                dtype=self.dtype,
+            )
+            up_blocks.append(up_block)
+            prev_output_channel = output_channel
+
+        self.up_blocks = up_blocks
+
+        # end
+        self.conv_norm_out = nn.GroupNorm(num_groups=32, epsilon=1e-6)
+        self.conv_out = nn.Conv(
+            self.out_channels,
+            kernel_size=(3, 3),
+            strides=(1, 1),
+            padding=((1, 1), (1, 1)),
+            dtype=self.dtype,
+        )
+
+    def __call__(self, sample, deterministic: bool = True):
+        # z to block_in
+        sample = self.conv_in(sample)
+
+        # middle
+        sample = self.mid_block(sample, deterministic=deterministic)
+
+        # upsampling
+        for block in self.up_blocks:
+            sample = block(sample, deterministic=deterministic)
+
+        sample = self.conv_norm_out(sample)
+        sample = nn.swish(sample)
+        sample = self.conv_out(sample)
+
+        return sample
+
+
+class DiagonalGaussianDistribution(object):
+    def __init__(self, parameters, deterministic=False):
+        # Last axis to account for channels-last
+        self.mean, self.logvar = jnp.split(parameters, 2, axis=-1)
+        self.logvar = jnp.clip(self.logvar, -30.0, 20.0)
+        self.deterministic = deterministic
+        self.std = jnp.exp(0.5 * self.logvar)
+        self.var = jnp.exp(self.logvar)
+        if self.deterministic:
+            self.var = self.std = jnp.zeros_like(self.mean)
+
+    def sample(self, key):
+        return self.mean + self.std * jax.random.normal(key, self.mean.shape)
+
+    def kl(self, other=None):
+        if self.deterministic:
+            return jnp.array([0.0])
+
+        if other is None:
+            return 0.5 * jnp.sum(self.mean**2 + self.var - 1.0 - self.logvar, axis=[1, 2, 3])
+
+        return 0.5 * jnp.sum(
+            jnp.square(self.mean - other.mean) / other.var + self.var / other.var - 1.0 - self.logvar + other.logvar,
+            axis=[1, 2, 3],
+        )
+
+    def nll(self, sample, axis=[1, 2, 3]):
+        if self.deterministic:
+            return jnp.array([0.0])
+
+        logtwopi = jnp.log(2.0 * jnp.pi)
+        return 0.5 * jnp.sum(logtwopi + self.logvar + jnp.square(sample - self.mean) / self.var, axis=axis)
+
+    def mode(self):
+        return self.mean
+
+
+@flax_register_to_config
+class FlaxAutoencoderKL(nn.Module, FlaxModelMixin, ConfigMixin):
+    in_channels: int = 3
+    out_channels: int = 3
+    down_block_types: Tuple[str] = ("DownEncoderBlock2D",)
+    up_block_types: Tuple[str] = ("UpDecoderBlock2D",)
+    block_out_channels: Tuple[int] = (64,)
+    layers_per_block: int = 1
+    act_fn: str = "silu"
+    latent_channels: int = 4
+    norm_num_groups: int = 32
+    sample_size: int = 32
+    dtype: jnp.dtype = jnp.float32
+
+    def setup(self):
+        self.encoder = Encoder(
+            in_channels=self.config.in_channels,
+            out_channels=self.config.latent_channels,
+            down_block_types=self.config.down_block_types,
+            block_out_channels=self.config.block_out_channels,
+            layers_per_block=self.config.layers_per_block,
+            act_fn=self.config.act_fn,
+            norm_num_groups=self.config.norm_num_groups,
+            double_z=True,
+            dtype=self.dtype,
+        )
+        self.decoder = Decoder(
+            in_channels=self.config.latent_channels,
+            out_channels=self.config.out_channels,
+            up_block_types=self.config.up_block_types,
+            block_out_channels=self.config.block_out_channels,
+            layers_per_block=self.config.layers_per_block,
+            norm_num_groups=self.config.norm_num_groups,
+            act_fn=self.config.act_fn,
+            dtype=self.dtype,
+        )
+        self.quant_conv = nn.Conv(
+            2 * self.config.latent_channels,
+            kernel_size=(1, 1),
+            strides=(1, 1),
+            padding="VALID",
+            dtype=self.dtype,
+        )
+        self.post_quant_conv = nn.Conv(
+            self.config.latent_channels,
+            kernel_size=(1, 1),
+            strides=(1, 1),
+            padding="VALID",
+            dtype=self.dtype,
+        )
+
+    def init_weights(self, rng: jax.random.PRNGKey) -> FrozenDict:
+        # init input tensors
+        sample_shape = (1, self.in_channels, self.sample_size, self.sample_size)
+        sample = jnp.zeros(sample_shape, dtype=jnp.float32)
+
+        params_rng, dropout_rng, gaussian_rng = jax.random.split(rng, 3)
+        rngs = {"params": params_rng, "dropout": dropout_rng, "gaussian": gaussian_rng}
+
+        return self.init(rngs, sample)["params"]
+
+    def encode(self, sample, deterministic: bool = True, return_dict: bool = True):
+        sample = jnp.transpose(sample, (0, 2, 3, 1))
+
+        hidden_states = self.encoder(sample, deterministic=deterministic)
+        moments = self.quant_conv(hidden_states)
+        posterior = DiagonalGaussianDistribution(moments)
+
+        if not return_dict:
+            return (posterior,)
+
+        return FlaxAutoencoderKLOutput(latent_dist=posterior)
+
+    def decode(self, latents, deterministic: bool = True, return_dict: bool = True):
+        if latents.shape[-1] != self.config.latent_channels:
+            latents = jnp.transpose(latents, (0, 2, 3, 1))
+
+        hidden_states = self.post_quant_conv(latents)
+        hidden_states = self.decoder(hidden_states, deterministic=deterministic)
+
+        hidden_states = jnp.transpose(hidden_states, (0, 3, 1, 2))
+
+        if not return_dict:
+            return (hidden_states,)
+
+        return FlaxDecoderOutput(sample=hidden_states)
+
+    def __call__(self, sample, sample_posterior=False, deterministic: bool = True, return_dict: bool = True):
+        posterior = self.encode(sample, deterministic=deterministic, return_dict=return_dict)
+        if sample_posterior:
+            rng = self.make_rng("gaussian")
+            hidden_states = posterior.latent_dist.sample(rng)
+        else:
+            hidden_states = posterior.latent_dist.mode()
+        hidden_states = self.decode(hidden_states, return_dict=return_dict).sample
+
+        if not return_dict:
+            return (sample,)
+
+        return FlaxDecoderOutput(sample=sample)