diff --git a/examples/community/lpw_stable_diffusion_xl.py b/examples/community/lpw_stable_diffusion_xl.py
index 4bcef10f97c2..4d9683b73fc4 100644
--- a/examples/community/lpw_stable_diffusion_xl.py
+++ b/examples/community/lpw_stable_diffusion_xl.py
@@ -1773,7 +1773,7 @@ def denoising_value_valid(dnv):
                         f"Incorrect configuration settings! The config of `pipeline.unet`: {self.unet.config} expects"
                         f" {self.unet.config.in_channels} but received `num_channels_latents`: {num_channels_latents} +"
                         f" `num_channels_mask`: {num_channels_mask} + `num_channels_masked_image`: {num_channels_masked_image}"
-                        f" = {num_channels_latents+num_channels_masked_image+num_channels_mask}. Please verify the config of"
+                        f" = {num_channels_latents + num_channels_masked_image + num_channels_mask}. Please verify the config of"
                         " `pipeline.unet` or your `mask_image` or `image` input."
                     )
             elif num_channels_unet != 4:
@@ -1924,7 +1924,22 @@ def denoising_value_valid(dnv):
                 self.upcast_vae()
                 latents = latents.to(next(iter(self.vae.post_quant_conv.parameters())).dtype)
 
-            image = self.vae.decode(latents / self.vae.config.scaling_factor, return_dict=False)[0]
+            # unscale/denormalize the latents
+            # denormalize with the mean and std if available and not None
+            has_latents_mean = hasattr(self.vae.config, "latents_mean") and self.vae.config.latents_mean is not None
+            has_latents_std = hasattr(self.vae.config, "latents_std") and self.vae.config.latents_std is not None
+            if has_latents_mean and has_latents_std:
+                latents_mean = (
+                    torch.tensor(self.vae.config.latents_mean).view(1, 4, 1, 1).to(latents.device, latents.dtype)
+                )
+                latents_std = (
+                    torch.tensor(self.vae.config.latents_std).view(1, 4, 1, 1).to(latents.device, latents.dtype)
+                )
+                latents = latents * latents_std / self.vae.config.scaling_factor + latents_mean
+            else:
+                latents = latents / self.vae.config.scaling_factor
+
+            image = self.vae.decode(latents, return_dict=False)[0]
 
             # cast back to fp16 if needed
             if needs_upcasting: