How to Fine-Tune a Local Mistral or Llama 3 Model on Your Own Dataset




In this article, you will learn how to fine-tune open-source large language models for customer support using Unsloth and QLoRA, from dataset preparation through training, testing, and comparison.

Topics we will cover include:

  • Setting up a Colab environment and installing required libraries.
  • Preparing and formatting a customer support dataset for instruction tuning.
  • Training with LoRA adapters, saving, testing, and comparing against a base model.

Let’s get to it.

How to Fine-Tune a Local Mistral/Llama 3 Model on Your Own Dataset

Introduction

Large language models (LLMs) like Mistral 7B and Llama 3 8B have shaken the AI field, but their broad nature limits their application to specialized areas. Fine-tuning transforms these general-purpose models into domain-specific experts. For customer support, this means an 85% reduction in response time, a consistent brand voice, and 24/7 availability. Fine-tuning LLMs for specific domains, such as customer support, can dramatically improve their performance on industry-specific tasks.

In this tutorial, we’ll learn how to fine-tune two powerful open-source models, Mistral 7B and Llama 3 8B, using a customer support question-and-answer dataset. By the end of this tutorial, you’ll learn how to:

  • Set up a cloud-based training environment using Google Colab
  • Prepare and format customer support datasets
  • Fine-tune Mistral 7B and Llama 3 8B using Quantized Low-Rank Adaptation (QLoRA)
  • Evaluate model performance
  • Save and deploy your custom models

Prerequisites

Here’s what you will need to make the most of this tutorial.

  • A Google account for accessing Google Colab. You can check Colab here to see if you are ready to access.
  • A Hugging Face account for accessing models and datasets. You can sign up here.

After you have access to Hugging Face, you will need to request access to these 2 gated models:

  1. Mistral: Mistral-7B-Instruct-v0.3
  2. Llama 3: Meta-Llama-3-8B-Instruct

And as far as the requisite knowledge you should have before starting, here’s a concise overview:

  • Basic Python programming
  • Be familiar with Jupyter notebooks
  • Understanding of machine learning concepts (helpful but not required)
  • Basic command-line knowledge

You should now be ready to get started.

The Fine-Tuning Process

Fine-tuning adapts a pre-trained LLM to specific tasks by continuing training on domain-specific data. Unlike prompt engineering, fine-tuning actually modifies model weights.

Step 1: Getting Started with Google Colab

  • Visit Google Colab
  • Create new notebook: File → New Notebook
  • Give it a preferred name
  • Set GPU: Runtime → Change runtime type → T4 GPU

Change runtime type

Step 2: Install Unsloth (Run This First)

Here, we will install Unsloth and its dependencies. Unsloth handles CUDA setup automatically.

Step 3: Import Unsloth and Setup

The next step is to import Unsloth and perform basic checks.

Step 4: Create Customer Support Dataset

We will supply realistic customer support data in this section for the purpose of fine-tuning the model.

You can also create more samples by duplicating and varying.

Now, we can convert to a dataset:

Step 5: Choose Your Model (Mistral or Llama 3)

We will be using Mistral 7B for this walkthrough.

Step 6: Load Model with Unsloth (4x Faster!)

Load the model with Unsloth optimization and use the token = “hf_…” if you have gated models like Llama 3.

The load_in_4bit quantization saves memory. Use float16 for faster training, and you can increase max_seq_length to 2048 for longer responses.

Choose your model

Step 7: Add LoRA Adapters (Unsloth Optimized)

LoRA is recommended for most use cases because it’s memory-efficient and fast:

  • target_modules: Which layers to adapt (attention + MLP)
  • r=16: Higher = more adaptable, but more parameters
  • lora_alpha=16: Scaling factor for LoRA weights

Step 8: Format Dataset for Training

Output:

Step 9: Configure Training (Optimized by Unsloth)

Step 10: Train the Model Faster with Unsloth

Output:

Train the Model Faster with Unsloth

Step 11: Save the Fine-Tuned Model

Save the fine-tuned model to your Google Drive.

Step 12: Test Your Fine-Tuned Model

Load the saved model and generate responses.

Test questions

Output:

Testing Fine-Tuned Model

Step 13: Compare with Base Model

Load base model

Test the same question

Base model response

Fine-tuned response

Output:

Comparing with base model

Conclusion

In this tutorial, you have learned how to fine-tune AI models. You have also seen that making models learn your specific tasks doesn’t have to be complicated or expensive. The Unsloth tool makes everything easier—training can be up to four times faster while using much less memory—so you can do this even on a basic computer.

The Mistral 7B model is often a strong option because it’s efficient and delivers excellent results. Always remember that your dataset teaches the model: five hundred clear, well-written examples are better than thousands of messy ones. You don’t need to rebuild the entire model; you can adjust small parts with LoRA to get your desired results.

Always test what you’ve created. Check both with numbers and by reading the answers yourself to ensure your assistant is truly helpful and accurate. This process turns a general model into your personal expert, capable of handling customer questions, writing in your company’s voice, and operating around the clock.

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