diff --git a/CHANGELOG.md b/CHANGELOG.md
index 4440036e9f..c562604e73 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -261,7 +261,7 @@ The format is based on [Keep a Changelog](http://keepachangelog.com/en/1.0.0/).
 - Fixed support for `CombinedLoader` while checking for warning raised with eval dataloaders ([#10994](https://github.com/PyTorchLightning/pytorch-lightning/pull/10994))
 
 
--
+- Fixed a bug where the DeepSpeedPlugin arguments `cpu_checkpointing` and `contiguous_memory_optimization` were not being forwarded to deepspeed correctly ([#10874](https://github.com/PyTorchLightning/pytorch-lightning/issues/10874))
 
 
 -
diff --git a/pytorch_lightning/plugins/training_type/deepspeed.py b/pytorch_lightning/plugins/training_type/deepspeed.py
index 35bb6f0847..cc9cd4937c 100644
--- a/pytorch_lightning/plugins/training_type/deepspeed.py
+++ b/pytorch_lightning/plugins/training_type/deepspeed.py
@@ -527,8 +527,8 @@ class DeepSpeedPlugin(DDPPlugin):
             deepspeed.checkpointing.configure(
                 mpu_=None,
                 partition_activations=checkpoint_config.get("partition_activations"),
-                contiguous_checkpointing=checkpoint_config.get("contiguous_checkpointing"),
-                checkpoint_in_cpu=checkpoint_config.get("checkpoint_in_cpu"),
+                contiguous_checkpointing=checkpoint_config.get("contiguous_memory_optimization"),
+                checkpoint_in_cpu=checkpoint_config.get("cpu_checkpointing"),
                 profile=checkpoint_config.get("profile"),
             )
 
diff --git a/tests/plugins/test_deepspeed_plugin.py b/tests/plugins/test_deepspeed_plugin.py
index 7cca6f6724..4b56e9d389 100644
--- a/tests/plugins/test_deepspeed_plugin.py
+++ b/tests/plugins/test_deepspeed_plugin.py
@@ -361,6 +361,36 @@ def test_deepspeed_custom_activation_checkpointing_params(tmpdir):
     assert checkpoint_config["synchronize_checkpoint_boundary"]
 
 
+@RunIf(min_gpus=1, deepspeed=True, standalone=True)
+def test_deepspeed_custom_activation_checkpointing_params_forwarded(tmpdir):
+    """Ensure if we modify the activation checkpointing parameters, we pass these to
+    deepspeed.checkpointing.configure correctly."""
+    ds = DeepSpeedPlugin(
+        partition_activations=True,
+        cpu_checkpointing=True,
+        contiguous_memory_optimization=True,
+        synchronize_checkpoint_boundary=True,
+    )
+
+    model = BoringModel()
+    trainer = Trainer(
+        default_root_dir=tmpdir,
+        enable_progress_bar=False,
+        fast_dev_run=1,
+        strategy=ds,
+        precision=16,
+        gpus=1,
+    )
+    with mock.patch(
+        "deepspeed.checkpointing.configure", wraps=deepspeed.checkpointing.configure
+    ) as deepspeed_checkpointing_configure:
+        trainer.fit(model)
+
+    deepspeed_checkpointing_configure.assert_called_with(
+        mpu_=None, partition_activations=True, contiguous_checkpointing=True, checkpoint_in_cpu=True, profile=None
+    )
+
+
 @RunIf(min_gpus=1, deepspeed=True)
 def test_deepspeed_assert_config_zero_offload_disabled(tmpdir, deepspeed_zero_config):
     """Ensure if we use a config and turn off offload_optimizer, that this is set to False within the config."""