diff --git a/CHANGELOG.rst b/CHANGELOG.rst
index c45d80253863..7ecf37801bea 100755
--- a/CHANGELOG.rst
+++ b/CHANGELOG.rst
@@ -64,6 +64,8 @@ Changelog
 - Fix Megatron Top-K/Top-P distillation gradients being multiplied by the tensor-parallel size when tensor parallelism is enabled; reported loss values are unchanged.
 - Fix the Puzzletron memory objective pricing the KV cache with ``hidden_size // num_attention_heads`` instead of the model's ``head_dim``, which misestimated it for models such as Mistral-Small, GPT-OSS and Gemma-3 and for every candidate with a pruned hidden size. Recompute subblock statistics produced with earlier versions.
 - Fix ONNX INT4 quantization ending the Python process when the INT4 packing extension fails to build, for example without a C++ compiler. It now falls back to the Python implementation.
+- Fix AutoCast turning FP64 initializers and ``Constant`` values that exceed the FP32 range into infinities. They are now clamped to the largest FP32 value and the affected tensor is named in a warning.
+- Fix AutoCast flipping the sign of an initializer value too small for the target precision; such values now keep their sign.
 - Fix ``fsdp2_aware_weight_update`` masking an error raised during its unshard (e.g. a CUDA OOM) with a spurious ``UnboundLocalError``.
 
 0.48.0 (2026-10-xx)
diff --git a/modelopt/onnx/autocast/graphsanitizer.py b/modelopt/onnx/autocast/graphsanitizer.py
index 58bd678159c5..708a80d77233 100644
--- a/modelopt/onnx/autocast/graphsanitizer.py
+++ b/modelopt/onnx/autocast/graphsanitizer.py
@@ -517,6 +517,23 @@ def _get_initializer_value(self, name: str, return_array: bool = False) -> np.nd
                 return value if return_array else value.item()
         return None
 
+    @staticmethod
+    def _clamp_to_fp32_range(data: np.ndarray, name: str) -> np.ndarray:
+        """Clamp finite values outside the FP32 range, leaving existing +/-inf untouched.
+
+        Casting a finite FP64 value larger than FP32's max straight to FP32 silently turns it
+        into infinity. Genuine infinities already in the data are not "too large for FP32" and
+        must be preserved as-is.
+        """
+        fp32_max = np.finfo(np.float32).max
+        out_of_range = np.isfinite(data) & (np.abs(data) > fp32_max)
+        if np.any(out_of_range):
+            logger.warning(
+                f"{name} contains FP64 values outside the FP32 range; clamping to {fp32_max}."
+            )
+            data = np.where(out_of_range, np.copysign(fp32_max, data), data)
+        return data
+
     def _convert_fp64_initializers(self) -> bool:
         """Convert FP64 initializers to FP32.
 
@@ -529,6 +546,7 @@ def _convert_fp64_initializers(self) -> bool:
             if initializer.data_type == onnx.TensorProto.DOUBLE:
                 # Convert the data to FP32
                 fp64_data = numpy_helper.to_array(initializer, base_dir=self.external_data_dir)
+                fp64_data = self._clamp_to_fp32_range(fp64_data, initializer.name)
                 fp32_data = fp64_data.astype(np.float32)
 
                 # Create new initializer with FP32 data
@@ -588,6 +606,9 @@ def _convert_fp64_nodes(self) -> bool:
                     if attr.name == "value" and attr.t.data_type == onnx.TensorProto.DOUBLE:
                         # Convert the tensor value to FP32
                         fp64_data = numpy_helper.to_array(attr.t, base_dir=self.external_data_dir)
+                        fp64_data = self._clamp_to_fp32_range(
+                            fp64_data, f"{node.op_type} node {node.name}"
+                        )
                         fp32_data = fp64_data.astype(np.float32)
                         new_tensor = numpy_helper.from_array(fp32_data)
                         attr.t.CopyFrom(new_tensor)
diff --git a/modelopt/onnx/autocast/precisionconverter.py b/modelopt/onnx/autocast/precisionconverter.py
index a78249fdca4c..32e5c758eaeb 100644
--- a/modelopt/onnx/autocast/precisionconverter.py
+++ b/modelopt/onnx/autocast/precisionconverter.py
@@ -1240,7 +1240,7 @@ def _convert_initializer_data(
                     self._warned_values_clamp_min = True
                 np_array = np.where(
                     (np_array != 0.0) & (np.abs(np_array) < data_lowest),
-                    data_lowest,
+                    np.copysign(data_lowest, np_array),
                     np_array,
                 )
             new_array = np_array.astype(to_type.numpy_type)
diff --git a/tests/unit/onnx/autocast/test_graphsanitizer.py b/tests/unit/onnx/autocast/test_graphsanitizer.py
index f42324a6338b..2670bb1cab42 100644
--- a/tests/unit/onnx/autocast/test_graphsanitizer.py
+++ b/tests/unit/onnx/autocast/test_graphsanitizer.py
@@ -235,6 +235,104 @@ def test_convert_fp64_initializers():
             assert init.data_type == TensorProto.FLOAT
 
 
+def test_convert_fp64_initializers_clamps_out_of_range_values():
+    """Values FP32 cannot represent must be clamped, not cast to infinity."""
+    x = helper.make_tensor_value_info("X", TensorProto.FLOAT, [2])
+    y = helper.make_tensor_value_info("Y", TensorProto.FLOAT, [2])
+    fp64_max = np.finfo(np.float64).max
+
+    graph = helper.make_graph(
+        nodes=[
+            helper.make_node("Clip", ["X", "lower", "upper"], ["Y"], name="clip"),
+        ],
+        name="fp64_out_of_range",
+        inputs=[x],
+        outputs=[y],
+        initializer=[
+            numpy_helper.from_array(np.array([-fp64_max], np.float64), name="lower"),
+            numpy_helper.from_array(np.array([fp64_max], np.float64), name="upper"),
+        ],
+    )
+    sanitizer = GraphSanitizer(helper.make_model(graph))
+
+    assert sanitizer._convert_fp64_initializers() is True
+
+    fp32_max = np.finfo(np.float32).max
+    converted = {
+        init.name: numpy_helper.to_array(init) for init in sanitizer.model.graph.initializer
+    }
+    for name in ("lower", "upper"):
+        assert np.all(np.isfinite(converted[name])), f"{name} was cast to infinity"
+    assert converted["lower"] == -fp32_max
+    assert converted["upper"] == fp32_max
+
+
+def test_convert_fp64_initializers_preserves_infinity():
+    """An infinity the model already held is not a value FP32 cannot represent."""
+    x = helper.make_tensor_value_info("X", TensorProto.FLOAT, [3])
+    y = helper.make_tensor_value_info("Y", TensorProto.FLOAT, [3])
+    # An oversized finite value alongside the infinities must not drag them down with it.
+    values = np.array([np.inf, -np.inf, np.finfo(np.float64).max], dtype=np.float64)
+
+    graph = helper.make_graph(
+        nodes=[helper.make_node("Mul", ["X", "mixed"], ["Y"], name="mul")],
+        name="fp64_with_infinity",
+        inputs=[x],
+        outputs=[y],
+        initializer=[numpy_helper.from_array(values, name="mixed")],
+    )
+    sanitizer = GraphSanitizer(helper.make_model(graph))
+
+    assert sanitizer._convert_fp64_initializers() is True
+
+    converted = numpy_helper.to_array(
+        next(init for init in sanitizer.model.graph.initializer if init.name == "mixed")
+    )
+    assert converted[0] == np.inf
+    assert converted[1] == -np.inf
+    assert converted[2] == np.finfo(np.float32).max
+
+
+@pytest.mark.parametrize("op_type", ["Constant", "ConstantOfShape"])
+def test_convert_fp64_nodes_clamps_out_of_range_values(op_type):
+    """A node's FP64 value attribute must be clamped the same way an initializer is."""
+    x = helper.make_tensor_value_info("X", TensorProto.FLOAT, [2])
+    y = helper.make_tensor_value_info("Y", TensorProto.FLOAT, [2])
+    value = numpy_helper.from_array(
+        np.array([np.finfo(np.float64).max], np.float64), name="big_value"
+    )
+
+    initializer = []
+    if op_type == "ConstantOfShape":
+        producer = helper.make_node(
+            "ConstantOfShape", ["shape"], ["big"], name="big_node", value=value
+        )
+        initializer.append(numpy_helper.from_array(np.array([2], dtype=np.int64), name="shape"))
+    else:
+        producer = helper.make_node("Constant", [], ["big"], name="big_node", value=value)
+
+    graph = helper.make_graph(
+        nodes=[producer, helper.make_node("Mul", ["X", "big"], ["Y"], name="mul")],
+        name="fp64_node_out_of_range",
+        inputs=[x],
+        outputs=[y],
+        initializer=initializer,
+    )
+    sanitizer = GraphSanitizer(helper.make_model(graph))
+
+    assert sanitizer._convert_fp64_nodes() is True
+
+    converted = next(
+        numpy_helper.to_array(attr.t)
+        for node in sanitizer.model.graph.node
+        if node.name == "big_node"
+        for attr in node.attribute
+        if attr.name == "value"
+    )
+    assert np.all(np.isfinite(converted)), f"{op_type} value was cast to infinity"
+    assert converted == np.finfo(np.float32).max
+
+
 def test_convert_fp64_io_types():
     """Test conversion of FP64 input/output types to FP32."""
     # Create inputs and outputs with FP64 types
diff --git a/tests/unit/onnx/autocast/test_precisionconverter.py b/tests/unit/onnx/autocast/test_precisionconverter.py
index d3e0a786a65a..d3c672a18b9d 100644
--- a/tests/unit/onnx/autocast/test_precisionconverter.py
+++ b/tests/unit/onnx/autocast/test_precisionconverter.py
@@ -624,6 +624,38 @@ def test_clamping_fp16_initializers_out_of_range(
     assert np.all(add_init_fp32_array == add_init_out_of_range)
 
 
+@pytest.mark.parametrize("use_standalone_type_inference", [True, False])
+def test_underflowing_fp16_initializers_keep_their_sign(
+    model_with_multiple_consumers, use_standalone_type_inference
+):
+    """A value too small for FP16 is replaced by the smallest subnormal of the same sign."""
+    model, value_info_map, initializer_map, node_to_init_map = model_with_multiple_consumers
+
+    smallest = np.finfo(np.float16).smallest_subnormal
+    add_init_underflow = np.array([[-1e-10, 1e-10]], dtype=np.float32)
+    model.graph.initializer[1].CopyFrom(
+        numpy_helper.from_array(add_init_underflow, name="add_init")
+    )
+
+    converter = PrecisionConverter(
+        model,
+        value_info_map,
+        initializer_map,
+        node_to_init_map,
+        use_standalone_type_inference=use_standalone_type_inference,
+    )
+    converter._convert_initializers(low_precision_nodes=["add1", "add2"], high_precision_nodes=[])
+
+    converted = next(
+        numpy_helper.to_array(init)
+        for init in converter.model.graph.initializer
+        if init.name == "add_init"
+    )
+    assert converted.dtype == np.float16
+    assert converted[0, 0] == -smallest, "a negative value must not come back positive"
+    assert converted[0, 1] == smallest
+
+
 @pytest.mark.parametrize("use_standalone_type_inference", [True, False])
 def test_bf16_no_clamping_initializers_out_of_range(
     model_with_multiple_consumers, use_standalone_type_inference