From 4a3d317e2b917f298e5f21670ac169901d32d3ea Mon Sep 17 00:00:00 2001
From: Jaret Burkett <jaretburkett@gmail.com>
Date: Sun, 22 Mar 2026 18:53:59 -0600
Subject: [PATCH] Fix issue with using the default text encoder with ltx 2.3

---
 extensions_built_in/diffusion_models/ltx2/ltx2.py | 10 ++++++----
 version.py                                        |  2 +-
 2 files changed, 7 insertions(+), 5 deletions(-)

diff --git a/extensions_built_in/diffusion_models/ltx2/ltx2.py b/extensions_built_in/diffusion_models/ltx2/ltx2.py
index e19cc3e..96412f6 100644
--- a/extensions_built_in/diffusion_models/ltx2/ltx2.py
+++ b/extensions_built_in/diffusion_models/ltx2/ltx2.py
@@ -390,21 +390,23 @@ class LTX2Model(BaseModel):
             del te_state_dict
             flush()
         else:
-            te_subfolder = "tokenizer"
+            te_tokenizer_subfolder = "tokenizer"
+            te_model_subfolder = "text_encoder"
             if self.model_config.te_name_or_path is not None:
                 te_path = self.model_config.te_name_or_path
             else:
                 if self.ltx_te_path is not None:
                     # pull from original repo for 2.3
                     te_path = self.ltx_te_path
-                    te_subfolder = None
+                    te_tokenizer_subfolder = ""
+                    te_model_subfolder = ""
                 else:
                     te_path = base_te_path
             tokenizer = GemmaTokenizerFast.from_pretrained(
-                te_path, subfolder=te_subfolder
+                te_path, subfolder=te_tokenizer_subfolder
             )
             text_encoder = Gemma3ForConditionalGeneration.from_pretrained(
-                te_path, subfolder=te_subfolder, dtype=dtype
+                te_path, subfolder=te_model_subfolder, dtype=dtype
             )
 
         # remove the vision tower
diff --git a/version.py b/version.py
index ff86031..2a80d12 100644
--- a/version.py
+++ b/version.py
@@ -1 +1 @@
-VERSION = "0.7.25"
+VERSION = "0.7.26"