diff --git a/llms/mlx_lm/utils.py b/llms/mlx_lm/utils.py
index f4112b6a..3afc8b85 100644
--- a/llms/mlx_lm/utils.py
+++ b/llms/mlx_lm/utils.py
@@ -5,7 +5,7 @@ import json
 import logging
 import time
 from pathlib import Path
-from typing import Any, Callable, Dict, Generator, Tuple, Union
+from typing import Any, Callable, Dict, Generator, List, Optional, Tuple, Union
 
 import mlx.core as mx
 import mlx.nn as nn
@@ -80,10 +80,36 @@ def get_model_path(path_or_hf_repo: str) -> Path:
     return model_path
 
 
+def apply_repetition_penalty(logits: mx.array, generated_tokens: Any, penalty: float):
+    """
+    Apply repetition penalty to specific logits based on the given context.
+
+    Paper: https://arxiv.org/abs/1909.05858
+
+    Args:
+        logits (mx.array): The logits produced by the language model.
+        generated_tokens (any): A list of N previous tokens.
+        penalty (float): The repetition penalty factor to be applied.
+
+    Returns:
+        logits (mx.array): Logits with repetition penalty applied to generated tokens.
+    """
+    if len(generated_tokens) > 0:
+        indices = mx.array([token for token in generated_tokens])
+        selected_logits = logits[:, indices]
+        selected_logits = mx.where(
+            selected_logits < 0, selected_logits * penalty, selected_logits / penalty
+        )
+        logits[:, indices] = selected_logits
+    return logits
+
+
 def generate_step(
     prompt: mx.array,
     model: nn.Module,
-    temp: float = 0.0,
+    temp: 0.0,
+    repetition_penalty: Optional[float] = None,
+    repetition_context_size: Optional[int] = 20,
 ) -> Generator[Tuple[mx.array, mx.array], None, None]:
     """
     A generator producing text based on the given prompt from the model.
@@ -92,6 +118,9 @@ def generate_step(
         prompt (mx.array): The input prompt.
         model (nn.Module): The model to use for generation.
         temp (float): The temperature for sampling, if 0 the argmax is used.
+        repetition_penalty (float, optional): The penalty factor for repeating tokens.
+        repetition_context_size (int, optional): The number of tokens to consider for repetition penalty (default 20).
+
     Yields:
         Generator[Tuple[mx.array, mx.array]]: A generator producing
         one token and probability per call.
@@ -108,12 +137,37 @@ def generate_step(
         prob = softmax_logits[0, token]
         return token, prob
 
+    if repetition_penalty and (
+        repetition_penalty < 0 or not isinstance(repetition_penalty, float)
+    ):
+        raise ValueError(
+            f"repetition_penalty must be a non-negative float, got {repetition_penalty}"
+        )
+
     y = prompt
     cache = None
+
+    repetition_context = prompt.tolist()
+
+    if repetition_context_size:
+        repetition_context = repetition_context[-repetition_context_size:]
+
     while True:
         logits, cache = model(y[None], cache=cache)
         logits = logits[:, -1, :]
-        y, prob = sample(logits)
+
+        if repetition_penalty:
+            logits = apply_repetition_penalty(
+                logits, repetition_context, repetition_penalty
+            )
+            y, prob = sample(logits)
+            repetition_context.append(y.item())
+        else:
+            y, prob = sample(logits)
+
+        if repetition_context_size:
+            if len(repetition_context) > repetition_context_size:
+                repetition_context = repetition_context[-repetition_context_size:]
         yield y, prob
 
 
@@ -125,6 +179,8 @@ def generate(
     max_tokens: int = 100,
     verbose: bool = False,
     formatter: Callable = None,
+    repetition_penalty: Optional[float] = None,
+    repetition_context_size: Optional[int] = None,
 ) -> str:
     """
     Generate text from the model.
@@ -139,20 +195,31 @@ def generate(
            (default ``False``).
        formatter (Optional[Callable]): A function which takes a token and a
            probability and displays it.
+       repetition_penalty (float, optional): The penalty factor for repeating tokens.
+       repetition_context_size (int, optional): The number of tokens to consider for repetition penalty.
     """
 
     if verbose:
         print("=" * 10)
         print("Prompt:", prompt)
 
-    prompt = mx.array(tokenizer.encode(prompt))
+    prompt_tokens = mx.array(tokenizer.encode(prompt))
 
     tic = time.perf_counter()
     tokens = []
     skip = 0
     REPLACEMENT_CHAR = "\ufffd"
 
-    for (token, prob), n in zip(generate_step(prompt, model, temp), range(max_tokens)):
+    for (token, prob), n in zip(
+        generate_step(
+            prompt_tokens,
+            model,
+            temp,
+            repetition_penalty,
+            repetition_context_size,
+        ),
+        range(max_tokens),
+    ):
         if token == tokenizer.eos_token_id:
             break
         if n == 0:
@@ -179,7 +246,7 @@ def generate(
         if token_count == 0:
             print("No tokens generated for this prompt")
             return
-        prompt_tps = prompt.size / prompt_time
+        prompt_tps = prompt_tokens.size / prompt_time
         gen_tps = (token_count - 1) / gen_time
         print(f"Prompt: {prompt_tps:.3f} tokens-per-sec")
         print(f"Generation: {gen_tps:.3f} tokens-per-sec")