diff --git a/tests/kernels/test_moe.py b/tests/kernels/test_moe.py
index 8b23b62826053..7fa5de1984452 100644
--- a/tests/kernels/test_moe.py
+++ b/tests/kernels/test_moe.py
@@ -14,6 +14,8 @@
 from vllm.model_executor.layers.fused_moe import fused_moe
 from vllm.model_executor.layers.fused_moe.fused_moe import (
     fused_topk, moe_align_block_size)
+from vllm.model_executor.layers.fused_moe.moe_torch_iterative import (
+    fused_moe as iterative_moe)
 from vllm.model_executor.layers.quantization.utils.marlin_utils_test import (
     marlin_quantize)
 from vllm.model_executor.models.mixtral import MixtralMoE
@@ -46,6 +48,11 @@ def test_fused_moe(
     triton_output = fused_moe(a, w1, w2, score, topk, renormalize=False)
     torch_output = torch_moe(a, w1, w2, score, topk)
     torch.testing.assert_close(triton_output, torch_output, atol=2e-2, rtol=0)
+    iterative_output = iterative_moe(a, w1, w2, score, topk, renormalize=False)
+    torch.testing.assert_close(iterative_output,
+                               torch_output,
+                               atol=2e-2,
+                               rtol=0)
 
 
 @pytest.mark.parametrize("dtype",
diff --git a/vllm/model_executor/layers/fused_moe/layer.py b/vllm/model_executor/layers/fused_moe/layer.py
index cf5db368926b4..3d822fc0c7f99 100644
--- a/vllm/model_executor/layers/fused_moe/layer.py
+++ b/vllm/model_executor/layers/fused_moe/layer.py
@@ -20,7 +20,8 @@
 else:
     fused_experts = None  # type: ignore
 if current_platform.is_tpu():
-    from .moe_pallas import fused_moe as fused_moe_pallas
+    # the iterative moe implementation is used until the moe_pallas is fixed
+    from .moe_torch_iterative import fused_moe as fused_moe_pallas
 else:
     fused_moe_pallas = None  # type: ignore
 logger = init_logger(__name__)
diff --git a/vllm/model_executor/layers/fused_moe/moe_torch_iterative.py b/vllm/model_executor/layers/fused_moe/moe_torch_iterative.py
new file mode 100644
index 0000000000000..bcff55f4fdf16
--- /dev/null
+++ b/vllm/model_executor/layers/fused_moe/moe_torch_iterative.py
@@ -0,0 +1,51 @@
+import torch
+import torch.nn.functional as F
+
+
+def fused_moe(
+    hidden_states: torch.Tensor,
+    w1: torch.Tensor,
+    w2: torch.Tensor,
+    gating_output: torch.Tensor,
+    topk: int,
+    renormalize: bool,
+) -> torch.Tensor:
+    """
+    Args:
+        hidden_states: [*, hidden_size]
+        w1: [num_experts, intermediate_size * 2, hidden_size]
+        w2: [num_experts, hidden_size, intermediate_size]
+        gating_output: [*, num_experts]
+    """
+    orig_shape = hidden_states.shape
+    hidden_size = hidden_states.shape[-1]
+    num_tokens = hidden_states.shape[:-1].numel()
+    num_experts = w1.shape[0]
+    intermediate_size = w2.shape[-1]
+    dtype = hidden_states.dtype
+
+    hidden_states = hidden_states.view(num_tokens, hidden_size)
+    gating_output = gating_output.view(num_tokens, num_experts)
+    topk_weights = gating_output.softmax(dim=-1, dtype=torch.float)
+    topk_weights, selected_experts = topk_weights.topk(topk, dim=-1)
+    if renormalize:
+        topk_weights = topk_weights / topk_weights.sum(dim=-1, keepdim=True)
+    topk_weights = topk_weights.to(dtype)
+
+    final_hidden_states = None
+    for expert_idx in range(num_experts):
+        expert_w1 = w1[expert_idx]
+        expert_w2 = w2[expert_idx]
+        expert_mask = (selected_experts == expert_idx)
+        expert_weights = (topk_weights * expert_mask).sum(dim=-1, keepdim=True)
+        x = F.linear(hidden_states, expert_w1)
+        gate = F.silu(x[:, :intermediate_size])
+        x = x[:, intermediate_size:] * gate
+        x = F.linear(x, expert_w2)
+        current_hidden_states = x * expert_weights
+        if final_hidden_states is None:
+            final_hidden_states = current_hidden_states
+        else:
+            final_hidden_states = final_hidden_states + current_hidden_states
+
+    return final_hidden_states.view(orig_shape)  # type: ignore