diff --git a/pytorch_lightning/plugins/precision/amp.py b/pytorch_lightning/plugins/precision/amp.py
new file mode 100644
index 0000000000000..cb3b263dcb8d4
--- /dev/null
+++ b/pytorch_lightning/plugins/precision/amp.py
@@ -0,0 +1,48 @@
+import torch
+from lightning.pytorch.utilities import rank_zero_warn
+
+
+def optimizer_step(self, optimizer, model, optimizer_idx, closure, **kwargs):
+    """Performs the actual optimizer step with proper gradient scaling."""
+    scaler = self.scaler
+
+    # Scale loss and compute gradients
+    if closure is not None:
+        with torch.cuda.amp.autocast():
+            loss = closure()
+            scaler.scale(loss).backward()
+
+    try:
+        # Unscale gradients before optimizer step
+        scaler.unscale_(optimizer)
+
+        # Check if gradients are finite
+        valid_gradients = True
+        for param_group in optimizer.param_groups:
+            for param in param_group["params"]:
+                if param.grad is not None and not torch.isfinite(param.grad).all():
+                    valid_gradients = False
+                    break
+            if not valid_gradients:
+                break
+
+        if valid_gradients:
+            # If gradients are valid, step optimizer and update scaler
+            optimizer.step()
+            scaler.update()
+        else:
+            # Skip step and adjust scaler
+            scaler.update()
+            rank_zero_warn(
+                "Gradients have become NaN or inf. Skipping optimizer step but updating scaler. "
+                "This may affect model convergence.",
+                category=RuntimeWarning,
+            )
+    except RuntimeError as e:
+        if "unscale_() has already been called" not in str(e):
+            raise
+        # Handle case where unscale was already called
+        optimizer.step()
+        scaler.update()
+
+    optimizer.zero_grad()
diff --git a/tests/tests_pytorch/loops/optimization/test_manual_loop.py b/tests/tests_pytorch/loops/optimization/test_manual_loop.py
index 67be30b24e159..f927781e11f39 100644
--- a/tests/tests_pytorch/loops/optimization/test_manual_loop.py
+++ b/tests/tests_pytorch/loops/optimization/test_manual_loop.py
@@ -42,3 +42,38 @@ def training_step(self, batch, batch_idx):
 
     with pytest.raises(MisconfigurationException, match="return a Tensor or have no return"):
         trainer.fit(model)
+
+
+def test_amp_training_updates_weights(tmp_path):
+    """Test that model weights are properly updated with mixed precision training."""
+
+    class TestModel(BoringModel):
+        def __init__(self):
+            super().__init__()
+            self.previous_params = None
+            self.layer = torch.nn.Linear(32, 32)  # Same input/output size
+
+        def training_step(self, batch, batch_idx):
+            # Track parameter changes
+            params = torch.cat([param.view(-1) for param in self.parameters()])
+            if self.previous_params is not None:
+                num_different_values = (self.previous_params != params).sum().item()
+                assert num_different_values > 0, f"Parameters did not update at step {batch_idx}"
+            self.previous_params = params.clone().detach()
+
+            # Regular training step
+            x = batch[0]
+            output = self.layer(x)
+            loss = torch.nn.functional.mse_loss(output, x)  # Autoencoder-style loss
+            return loss
+
+    model = TestModel()
+    trainer = Trainer(
+        default_root_dir=tmp_path,
+        max_epochs=1,
+        limit_train_batches=10,
+        precision="16-mixed",
+        accelerator="auto",
+        devices=1,
+    )
+    trainer.fit(model)
diff --git a/tests/tests_pytorch/utilities/test_model_helpers.py b/tests/tests_pytorch/utilities/test_model_helpers.py
index 78a63a7e9d2a7..2dca993d261d7 100644
--- a/tests/tests_pytorch/utilities/test_model_helpers.py
+++ b/tests/tests_pytorch/utilities/test_model_helpers.py
@@ -43,6 +43,7 @@ def test_is_overridden():
 def test_mixed_imports_unified():
     from lightning.pytorch.utilities.compile import _maybe_unwrap_optimized as new_unwrap
     from lightning.pytorch.utilities.model_helpers import is_overridden as new_is_overridden
+
     from pytorch_lightning.callbacks import EarlyStopping as OldEarlyStopping
     from pytorch_lightning.demos.boring_classes import BoringModel as OldBoringModel