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Variational autoencoders (VAE) with an auto-regressive decoder have been applied for many natural language processing (NLP) tasks. VAE objective consists of two terms, the KL regularization term and the reconstruction term, balanced by a weighting hyper-parameter π½. One notorious training difficulty is that the KL term tends to vanish. In this paper we study different scheduling schemes for π½, and show that KL vanishing is caused by the lack of good latent codes in training decoder at the beginning of optimization. To remedy the issue, we propose a cyclical annealing schedule, which simply repeats the process of increasing π½ multiple times. This new procedure allows us to learn more meaningful latent codes progressively by leveraging the results of previous learning cycles as warm re-restart. The effectiveness of cyclical annealing schedule is validated on a broad range of NLP tasks, including language modeling, dialog response generation and semi-supervised text classification.