Large generative models such as large language models (LLMs) and diffusion models have revolutionized the fields of NLP and computer vision respectively. However, their slow inference, high computation and memory requirement makes it challenging to deploy them on edge devices. In this study, we propose a light-weight quantization aware fine tuning technique using knowledge distillation (KD-QAT) to improve the performance of 4-bit weight quantized LLMs using commonly available datasets to realize a popular language use case, on device chat applications. To improve this paradigm of finetuning, as main contributions, we provide insights into stability of KD-QAT by empirically studying the gradient propagation during training to better understand the vulnerabilities of KD-QAT based approaches to low-bit quantization errors. Based on our insights, we propose ov-freeze, a simple technique to stabilize the KD-QAT process. Finally, we experiment with the popular 7B LLaMAv2-Chat model at 4-bit quantization level and demonstrate that ov-freeze results in near floating point precision performance, i.e., less than 0.7% loss of accuracy on Commonsense Reasoning benchmarks.