diff --git a/src/llmtuner/dsets/preprocess.py b/src/llmtuner/dsets/preprocess.py
index c096ddc7..b8eafd00 100644
--- a/src/llmtuner/dsets/preprocess.py
+++ b/src/llmtuner/dsets/preprocess.py
@@ -22,9 +22,6 @@ def preprocess_dataset(
     column_names = list(next(iter(dataset)).keys())
     template = get_template_and_fix_tokenizer(data_args.template, tokenizer)
 
-    if template is not None and template.efficient_eos and data_args.sft_packing:
-        raise ValueError("Current template is incompatible with packing.")
-
     def construct_example(examples: Dict[str, List[Any]]) -> Generator[Any, None, None]:
         for i in range(len(examples["prompt"])):
             query, response = examples["prompt"][i], examples["response"][i]
@@ -105,9 +102,19 @@ def preprocess_dataset(
         model_inputs = {"input_ids": [], "attention_mask": [], "labels": []}
         input_ids, labels = [], []
         for query, response, history, system in construct_example(examples):
-            for source_ids, target_ids in template.encode_multiturn(tokenizer, query, response, history, system):
+            for turn_idx, (source_ids, target_ids) in enumerate(template.encode_multiturn(
+                tokenizer, query, response, history, system
+            )):
+                if turn_idx != 0 and template.efficient_eos:
+                    source_mask = [tokenizer.eos_token_id] + [IGNORE_INDEX] * (len(source_ids) - 1)
+                else:
+                    source_mask = [IGNORE_INDEX] * len(source_ids)
                 input_ids += source_ids + target_ids
-                labels += source_ids + target_ids # TODO: try masking source_ids here
+                labels += source_mask + target_ids
+
+        if template.efficient_eos:
+            input_ids += [tokenizer.eos_token_id]
+            labels += [tokenizer.eos_token_id]
 
         total_length = len(input_ids)
         block_size = data_args.cutoff_len
diff --git a/src/llmtuner/extras/template.py b/src/llmtuner/extras/template.py
index 786ad5d1..ae486c69 100644
--- a/src/llmtuner/extras/template.py
+++ b/src/llmtuner/extras/template.py
@@ -423,7 +423,7 @@ register_template(
 
 
 r"""
-Supports: https://huggingface.co/qhduan/aquilachat-7b
+Supports: https://huggingface.co/BAAI/AquilaChat-7B
 """
 register_template(
     name="aquila",
@@ -439,7 +439,11 @@ register_template(
     ),
     sep=[
         "###"
-    ]
+    ],
+    stop_words=[
+        "</s>"
+    ],
+    efficient_eos=True
 )