diff --git a/unsloth/__init__.py b/unsloth/__init__.py
index 6fadac2c4e..c326bfe9cb 100644
--- a/unsloth/__init__.py
+++ b/unsloth/__init__.py
@@ -60,9 +60,6 @@ os.environ["PYTORCH_CUDA_ALLOC_CONF"] = \
 if "HF_HUB_ENABLE_HF_TRANSFER" not in os.environ:
     os.environ["HF_HUB_ENABLE_HF_TRANSFER"] = "1"
 pass
-if "HF_XET_HIGH_PERFORMANCE" not in os.environ:
-    os.environ["HF_XET_HIGH_PERFORMANCE"] = "1"
-pass
 
 # Log Unsloth is being used
 os.environ["UNSLOTH_IS_PRESENT"] = "1"
diff --git a/unsloth/models/_utils.py b/unsloth/models/_utils.py
index d3b8969ba6..1099c81e26 100644
--- a/unsloth/models/_utils.py
+++ b/unsloth/models/_utils.py
@@ -190,6 +190,13 @@ try:
 except:
     pass
 
+# Xet Storage is enabled for this repo, but the 'hf_xet' package is not installed.
+try:
+    from huggingface_hub.file_download import logger as hub_logger
+    hub_logger.addFilter(HideLoggingMessage("hf_xet"))
+    del hub_logger
+except:
+    pass
 
 # Patch get_model_param_count to record correct 4bit / 8bit
 from transformers.trainer_pt_utils import is_deepspeed_zero3_enabled