diff --git a/src/accelerate/accelerator.py b/src/accelerate/accelerator.py
index 3b8829fabfb..000c0eaa3eb 100755
--- a/src/accelerate/accelerator.py
+++ b/src/accelerate/accelerator.py
@@ -1646,12 +1646,15 @@ def _get_tensor_address(p):
 
         for obj in result:
             if isinstance(obj, torch.optim.Optimizer):
-                for param_group in obj.param_groups:
-                    # Each param_group originally maps to model parameters (e.g., from model.parameters()).
-                    # After _prepare_tp(), parameter references are replaced with DTensor instances.
-                    # Therefore, we remap the parameter references to their new DTensor addresses
-                    # so that the optimizer can correctly update the model parameters.
-                    param_group["params"] = [mapping[_get_tensor_address(p)] for p in param_group["params"]]
+                # Each param_group originally maps to model parameters (e.g., from model.parameters()).
+                # After _prepare_tp(), parameter references are replaced with DTensor instances.
+                # Therefore, we remap the parameter references and their optimizer states to the new DTensors.
+                parameters_map = {
+                    p: mapping[_get_tensor_address(p)]
+                    for param_group in obj.param_groups
+                    for p in param_group["params"]
+                }
+                obj._switch_parameters(parameters_map)
 
         return result
 
diff --git a/src/accelerate/optimizer.py b/src/accelerate/optimizer.py
index c1f8faa1543..32016e49a53 100644
--- a/src/accelerate/optimizer.py
+++ b/src/accelerate/optimizer.py
@@ -183,6 +183,9 @@ def step(self, closure=None):
     def _switch_parameters(self, parameters_map):
         for param_group in self.optimizer.param_groups:
             param_group["params"] = [parameters_map.get(p, p) for p in param_group["params"]]
+        for old_parameter, new_parameter in parameters_map.items():
+            if old_parameter is not new_parameter and old_parameter in self.optimizer.state:
+                self.optimizer.state[new_parameter] = self.optimizer.state.pop(old_parameter)
 
     @property
     def step_was_skipped(self):
diff --git a/tests/test_optimizer.py b/tests/test_optimizer.py
index 8bb324f0ec5..c50ea66eb1b 100644
--- a/tests/test_optimizer.py
+++ b/tests/test_optimizer.py
@@ -33,6 +33,22 @@ def test_accelerated_optimizer_pickling(self):
         except Exception as e:
             self.fail(f"Accelerated optimizer pickling failed with {e}")
 
+    def test_switch_parameters_updates_optimizer_state(self):
+        model = torch.nn.Linear(10, 10)
+        optimizer = torch.optim.Adagrad(model.parameters(), 0.1)
+        accelerator = Accelerator()
+        optimizer = accelerator.prepare(optimizer)
+
+        old_parameters = list(optimizer.param_groups[0]["params"])
+        old_states = [optimizer.state[parameter] for parameter in old_parameters]
+        new_parameters = [torch.nn.Parameter(torch.empty_like(parameter)) for parameter in old_parameters]
+        optimizer._switch_parameters(dict(zip(old_parameters, new_parameters)))
+
+        assert all(actual is expected for actual, expected in zip(optimizer.param_groups[0]["params"], new_parameters))
+        assert set(optimizer.state) == set(new_parameters)
+        assert all(optimizer.state[parameter] is state for parameter, state in zip(new_parameters, old_states))
+        optimizer.state_dict()
+
 
 @require_fp16
 @require_non_cpu