diff --git a/src/pytorch_lightning/CHANGELOG.md b/src/pytorch_lightning/CHANGELOG.md
index deaf3a2f016d2..c235045580dd7 100644
--- a/src/pytorch_lightning/CHANGELOG.md
+++ b/src/pytorch_lightning/CHANGELOG.md
@@ -11,6 +11,10 @@ The format is based on [Keep a Changelog](http://keepachangelog.com/en/1.0.0/).
 -
 
 
+- Removed registration of `ShardedTensor` state dict hooks in `LightningModule.__init__` with `torch>=2.1` ([#16892](https://github.com/Lightning-AI/lightning/pull/16892))
+
+
+
 ### Fixed
 
 - Fixed `num_nodes` not being set for `DDPFullyShardedNativeStrategy` ([#17160](https://github.com/Lightning-AI/lightning/pull/17160))
diff --git a/src/pytorch_lightning/core/module.py b/src/pytorch_lightning/core/module.py
index 88f3c9cca81ac..3cb578e095655 100644
--- a/src/pytorch_lightning/core/module.py
+++ b/src/pytorch_lightning/core/module.py
@@ -36,7 +36,12 @@
 from lightning_fabric.utilities.cloud_io import get_filesystem
 from lightning_fabric.utilities.device_dtype_mixin import _DeviceDtypeModuleMixin
 from lightning_fabric.utilities.distributed import _distributed_available, _sync_ddp
-from lightning_fabric.utilities.imports import _IS_WINDOWS, _TORCH_GREATER_EQUAL_1_11, _TORCH_GREATER_EQUAL_2_0
+from lightning_fabric.utilities.imports import (
+    _IS_WINDOWS,
+    _TORCH_GREATER_EQUAL_1_11,
+    _TORCH_GREATER_EQUAL_2_0,
+    _TORCH_GREATER_EQUAL_2_1,
+)
 from lightning_fabric.utilities.types import Steppable
 from lightning_fabric.wrappers import _FabricOptimizer
 from pytorch_lightning.callbacks.callback import Callback
@@ -2018,6 +2023,9 @@ def _register_sharded_tensor_state_dict_hooks_if_available(self) -> None:
 
         These hooks ensure that ShardedTensors are included when saving, and are loaded the LightningModule correctly.
         """
+        if _TORCH_GREATER_EQUAL_2_1:
+            # ShardedTensor is deprecated in favor of DistributedTensor
+            return
         if _IS_WINDOWS or not torch.distributed.is_available():
             rank_zero_debug("Could not register sharded tensor state dict hooks")
             return
diff --git a/tests/tests_pytorch/core/test_lightning_module.py b/tests/tests_pytorch/core/test_lightning_module.py
index cc7c48a4b9806..8490ad26f769b 100644
--- a/tests/tests_pytorch/core/test_lightning_module.py
+++ b/tests/tests_pytorch/core/test_lightning_module.py
@@ -311,7 +311,7 @@ def assert_device(device: torch.device) -> None:
     assert_device(torch.device("cpu"))
 
 
-@RunIf(skip_windows=True)
+@RunIf(skip_windows=True, max_torch="2.1.0")
 def test_sharded_tensor_state_dict(single_process_pg):
     if _TORCH_GREATER_EQUAL_1_11:
         from torch.distributed._shard.sharded_tensor import empty as sharded_tensor_empty