diff --git a/tests/torchtune/models/phi3/test_phi3_tokenizer.py b/tests/torchtune/models/phi3/test_phi3_tokenizer.py
index 17197ef6af..d28920a480 100644
--- a/tests/torchtune/models/phi3/test_phi3_tokenizer.py
+++ b/tests/torchtune/models/phi3/test_phi3_tokenizer.py
@@ -22,6 +22,7 @@ def tokenizer(self):
 
     def test_tokenize_messages(self, tokenizer):
         messages = [
+            Message(role="system", content="You are a helpful assistant", masked=True),
             Message(
                 role="user",
                 content="Below is an instruction that describes a task. Write a response "
@@ -40,6 +41,246 @@ def test_tokenize_messages(self, tokenizer):
             ),
         ]
         tokens, mask = tokenizer.tokenize_messages(messages)
+        expected_tokens = [
+            1,
+            32006,
+            272,
+            84,
+            9,
+            615,
+            454,
+            1974,
+            19,
+            32007,
+            32010,
+            323,
+            418,
+            202,
+            31,
+            128,
+            15,
+            120,
+            47,
+            88,
+            584,
+            23,
+            1665,
+            182,
+            9,
+            434,
+            295,
+            85,
+            4,
+            780,
+            47,
+            636,
+            9,
+            1094,
+            213,
+            23,
+            9,
+            69,
+            69,
+            164,
+            1153,
+            299,
+            35,
+            961,
+            132,
+            237,
+            7,
+            5,
+            761,
+            4,
+            12,
+            0,
+            313,
+            120,
+            47,
+            88,
+            584,
+            166,
+            493,
+            171,
+            54,
+            299,
+            9,
+            906,
+            244,
+            19,
+            186,
+            767,
+            303,
+            671,
+            92,
+            209,
+            24,
+            190,
+            52,
+            38,
+            4,
+            12,
+            0,
+            1243,
+            7,
+            69,
+            135,
+            213,
+            166,
+            32007,
+            32001,
+            6,
+            21,
+            45,
+            128,
+            71,
+            58,
+            38,
+            14,
+            10,
+            652,
+            35,
+            462,
+            101,
+            1306,
+            7,
+            341,
+            171,
+            20,
+            14,
+            127,
+            26,
+            652,
+            7,
+            10,
+            1268,
+            4,
+            6,
+            21,
+            45,
+            591,
+            9,
+            566,
+            22,
+            994,
+            913,
+            38,
+            20,
+            52,
+            24,
+            10,
+            1306,
+            734,
+            14,
+            71,
+            365,
+            1382,
+            7,
+            10,
+            801,
+            105,
+            88,
+            244,
+            985,
+            7,
+            4,
+            6,
+            21,
+            45,
+            9,
+            566,
+            126,
+            180,
+            11,
+            5,
+            1137,
+            7,
+            10,
+            1089,
+            151,
+            8,
+            1156,
+            213,
+            342,
+            7,
+            10,
+            384,
+            104,
+            54,
+            470,
+            4,
+            6,
+            21,
+            45,
+            287,
+            14,
+            33,
+            125,
+            135,
+            24,
+            101,
+            512,
+            66,
+            7,
+            28,
+            822,
+            15,
+            542,
+            69,
+            59,
+            110,
+            14,
+            365,
+            229,
+            7,
+            3,
+            36,
+            267,
+            36,
+            125,
+            135,
+            24,
+            101,
+            1503,
+            182,
+            9,
+            222,
+            1661,
+            191,
+            332,
+            92,
+            92,
+            24,
+            24,
+            4,
+            32007,
+        ]
+
+        expected_mask = [True] * 86 + [False] * 126
+        assert expected_tokens == tokens
+        assert expected_mask == mask
+
+    def test_tokenize_messages_no_system_prompt(self, tokenizer):
+        messages = [
+            Message(role="system", content="You are a helpful assistant", masked=True),
+            Message(
+                role="user",
+                content="Below is an instruction that describes a task. Write a response "
+                "that appropriately completes the request.\n\n### Instruction:\nGenerate "
+                "a realistic dating profile bio.\n\n### Response:\n",
+                masked=True,
+            ),
+            Message(
+                role="assistant",
+                content="I'm an outgoing and friendly person who loves spending time with "
+                "friends and family. I'm also a big-time foodie and love trying out new "
+                "restaurants and different cuisines. I'm a big fan of the arts and enjoy "
+                "going to museums and galleries. I'm looking for someone who shares my "
+                "interest in exploring new places, as well as someone who appreciates a "
+                "good conversation over coffee.",
+            ),
+        ]
+        tokens, mask = tokenizer.tokenize_messages(messages, ignore_system_prompt=True)
         expected_tokens = [
             1,
             32010,
diff --git a/torchtune/models/phi3/_tokenizer.py b/torchtune/models/phi3/_tokenizer.py
index 0694578268..544b50c372 100644
--- a/torchtune/models/phi3/_tokenizer.py
+++ b/torchtune/models/phi3/_tokenizer.py
@@ -125,7 +125,7 @@ def tokenize_messages(
         messages: List[Message],
         *,
         add_eos: bool = False,
-        ignore_system_prompts: bool = True,
+        ignore_system_prompt: bool = False,
     ) -> Tuple[List[int], List[bool]]:
         r"""Tokenize a list of messages one at a time then concatenate them,
         returning a list of tokens and a list of masks.
@@ -151,7 +151,7 @@ def tokenize_messages(
             messages (List[Message]): A list of messages, each containing role, content,
                 and masked attributes.
             add_eos (bool): Whether to append EOS after assistant message, default to False
-            ignore_system_prompts (bool): Whether to ignore system prompts. This matches the HF implementation, default to True.
+            ignore_system_prompt (bool): Whether to ignore system prompt, defaults to False.
 
         Raises:
             ValueError: If the role is not "user", "assistant", or "system".
@@ -175,7 +175,7 @@ def tokenize_messages(
 
         for message in templated_messages:
             # Skip system prompt
-            if ignore_system_prompts and message.role == "system":
+            if ignore_system_prompt and message.role == "system":
                 continue
 
             # Prepend BOS on start of new turns