diff --git a/.github/workflows/test_ipex.yml b/.github/workflows/test_ipex.yml
index 9e9ae8cd88..c32b65b2b9 100644
--- a/.github/workflows/test_ipex.yml
+++ b/.github/workflows/test_ipex.yml
@@ -22,7 +22,7 @@ jobs:
       fail-fast: false
       matrix:
         python-version: [3.9]
-        transformers-version: [4.39.0, 4.41.2]
+        transformers-version: [4.39.0, 4.42.3]
         ipex-version: [2.2.0, 2.3.*]
         include:
           - python-version: 3.8
diff --git a/docs/source/openvino/export.mdx b/docs/source/openvino/export.mdx
index eed980076d..c11016fde1 100644
--- a/docs/source/openvino/export.mdx
+++ b/docs/source/openvino/export.mdx
@@ -60,7 +60,7 @@ Optional arguments:
   --pad-token-id PAD_TOKEN_ID
                         This is needed by some models, for some tasks. If not provided, will attempt to use the tokenizer to guess it.
   --ratio RATIO         A parameter used when applying 4-bit quantization to control the ratio between 4-bit and 8-bit quantization. If set to 0.8, 80% of the layers will be quantized to int4 while
-                        20% will be quantized to int8. This helps to achieve better accuracy at the sacrifice of the model size and inference latency. Default value is 0.8.
+                        20% will be quantized to int8. This helps to achieve better accuracy at the sacrifice of the model size and inference latency. Default value is 1.0.
   --sym                 Whether to apply symmetric quantization
   --group-size GROUP_SIZE
                         The group size to use for int4 quantization. Recommended value is 128 and -1 will results in per-column quantization.
diff --git a/optimum/commands/export/openvino.py b/optimum/commands/export/openvino.py
index ee1f62388f..2bdee32e17 100644
--- a/optimum/commands/export/openvino.py
+++ b/optimum/commands/export/openvino.py
@@ -102,7 +102,7 @@ def parse_args_openvino(parser: "ArgumentParser"):
         default=None,
         help=(
             "A parameter used when applying 4-bit quantization to control the ratio between 4-bit and 8-bit quantization. If set to 0.8, 80%% of the layers will be quantized to int4 "
-            "while 20%% will be quantized to int8. This helps to achieve better accuracy at the sacrifice of the model size and inference latency. Default value is 0.8."
+            "while 20%% will be quantized to int8. This helps to achieve better accuracy at the sacrifice of the model size and inference latency. Default value is 1.0."
         ),
     )
     optional_group.add_argument(
@@ -277,7 +277,7 @@ def _get_default_int4_config(model_id_or_path, library_name):
             else:
                 quantization_config = {
                     "bits": 8 if is_int8 else 4,
-                    "ratio": 1 if is_int8 else (self.args.ratio or 0.8),
+                    "ratio": 1 if is_int8 else (self.args.ratio or _DEFAULT_4BIT_CONFIG["ratio"]),
                     "sym": self.args.sym or False,
                     "group_size": -1 if is_int8 else self.args.group_size,
                     "all_layers": None if is_int8 else self.args.all_layers,
diff --git a/optimum/exporters/ipex/model_patcher.py b/optimum/exporters/ipex/model_patcher.py
index e5299fb5c2..0d43152889 100644
--- a/optimum/exporters/ipex/model_patcher.py
+++ b/optimum/exporters/ipex/model_patcher.py
@@ -34,7 +34,7 @@
 
 # Please also update in the setup.py and .github/workflows/test_ipex.yml if you change the transformers version
 _TRANSFORMERS_MIN_VERSION = "4.39.0"
-_TRANSFORMERS_MAX_VERSION = "4.41.2"
+_TRANSFORMERS_MAX_VERSION = "4.42.3"
 
 _IPEX_EXPORTED_GENERATION_TASKS = ("text-generation",)
 
diff --git a/optimum/intel/ipex/modeling_base.py b/optimum/intel/ipex/modeling_base.py
index bb1817122f..a42b217c30 100644
--- a/optimum/intel/ipex/modeling_base.py
+++ b/optimum/intel/ipex/modeling_base.py
@@ -136,7 +136,6 @@ class IPEXModel(OptimizedModel):
     base_model_prefix = "ipex_model"
     main_input_name = "input_ids"
     output_name = "last_hidden_state"
-    _supports_cache_class = False
 
     def __init__(
         self,
@@ -430,6 +429,8 @@ def forward(
 class IPEXModelForCausalLM(IPEXModel, GenerationMixin):
     auto_model_class = AutoModelForCausalLM
     export_feature = "text-generation"
+    _supports_cache_class = False
+    _is_stateful = False
 
     def __init__(
         self,
@@ -478,8 +479,8 @@ def __init__(
             else:
                 self._reorder_cache = self.model_cls._reorder_cache.__get__(self)
 
-        if is_transformers_version(">=", "4.38.0") and model_type in {"llama", "phi", "persimmon"}:
-            self.prepare_inputs_for_generation = _prepare_inputs_for_generation_for_llama
+        if is_transformers_version(">=", "4.38.0") and model_type in {"llama", "phi", "persimmon", "mistral"}:
+            self.prepare_inputs_for_generation = _ipex_prepare_inputs_for_generation
         else:
             self.prepare_inputs_for_generation = self.model_cls.prepare_inputs_for_generation.__get__(self)
 
@@ -615,7 +616,7 @@ def generate(self, *args, **kwargs):
         return super().generate(*args, **kwargs)
 
 
-def _prepare_inputs_for_generation_for_llama(
+def _ipex_prepare_inputs_for_generation(
     input_ids, past_key_values=None, attention_mask=None, inputs_embeds=None, **kwargs
 ):
     from transformers.cache_utils import Cache
diff --git a/setup.py b/setup.py
index 5bb79b4169..47398130ad 100644
--- a/setup.py
+++ b/setup.py
@@ -62,7 +62,7 @@
     "neural-compressor": ["neural-compressor>=2.2.0", "onnxruntime<1.15.0", "accelerate"],
     "openvino": ["openvino>=2023.3", "nncf>=2.11.0", "openvino-tokenizers[transformers]"],
     "nncf": ["nncf>=2.11.0"],
-    "ipex": ["intel-extension-for-pytorch", "transformers>=4.39.0,<=4.41.2"],
+    "ipex": ["intel-extension-for-pytorch", "transformers>=4.39.0,<=4.42.3"],
     "diffusers": ["diffusers"],
     "quality": QUALITY_REQUIRE,
     "tests": TESTS_REQUIRE,