diff --git a/tests/unit_tests/test_bucketing.py b/tests/unit_tests/test_bucketing.py
index 80cfc2fa3..b82214b0c 100644
--- a/tests/unit_tests/test_bucketing.py
+++ b/tests/unit_tests/test_bucketing.py
@@ -39,6 +39,12 @@ def test_warmup_range():
     assert result == [2, 4, 8, 16, 32, 64, 128]
 
 
+def test_warmup_range_with_one():
+    config = (1, 64, 128)
+    result = linear.warmup_range(config)
+    assert result == [1, 2, 4, 8, 16, 32, 64, 128]
+
+
 def test_generate_prompt_buckets():
     max_num_batched_tokens = 2048
     block_size = 64
diff --git a/vllm_gaudi/extension/bucketing/exponential.py b/vllm_gaudi/extension/bucketing/exponential.py
index a1779a43c..87a4d1aee 100644
--- a/vllm_gaudi/extension/bucketing/exponential.py
+++ b/vllm_gaudi/extension/bucketing/exponential.py
@@ -30,13 +30,20 @@ def check_for_user_flags(self, phase):
 
     def get_prompt_cfgs(self, max_num_prefill_seqs, block_size, max_num_batched_tokens, max_model_len):
         self.check_for_user_flags('prompt')
+        if getattr(get_config(), 'VLLM_PROMPT_QUERY_BUCKET_MIN') == 1:
+            query_min = 1
+            logger().warning(
+                f"It's only recommended to use VLLM_PROMPT_QUERY_BUCKET_MIN=1 on the decode instance under P/D disaggregation scenario."
+            )
+        else:
+            query_min = block_size
         use_merged_prefill = get_config().merged_prefill
 
         # cfgs shape: [min, step, max, limit]
         prompt_bs_limit = math.ceil(math.log2(max_num_prefill_seqs)) + 1
         prompt_bs_bucket_cfg = [1, 2, max_num_prefill_seqs, prompt_bs_limit]
         max_prompt_seq_limit = math.ceil(math.log2(max_num_batched_tokens))
-        prompt_query_bucket_cfg = [block_size, block_size, max_num_batched_tokens, max_prompt_seq_limit]
+        prompt_query_bucket_cfg = [query_min, block_size, max_num_batched_tokens, max_prompt_seq_limit]
         max_ctx = max(1, math.ceil((max_model_len - prompt_query_bucket_cfg[0]) // block_size))
         max_prompt_ctx_limit = 2 if max_ctx == 1 else math.ceil(math.log2(max_ctx)) + 1
         prompt_ctx_bucket_cfg = [0, 1, max_ctx, max_prompt_ctx_limit]
@@ -124,8 +131,9 @@ def warmup_range_with_limit(config: Tuple[int, int, int, int], long_context=Fals
     """ # noqa: E501
 
     bmin, bstep, bmax, num_buckets = config
-    add_zero_bucket = bmin == 0
-    if add_zero_bucket:
+    add_zero_or_one_bucket = bmin in [0, 1]
+    if add_zero_or_one_bucket:
+        bmin_origin = bmin
         bmin = bstep
     linear_buckets = set(np.arange(bmin, bmax + 1, step=bstep))
     assert num_buckets > 0, "num_buckets must be a positive integer"
@@ -174,6 +182,6 @@ def warmup_range_with_limit(config: Tuple[int, int, int, int], long_context=Fals
             '''
             if bucket not in buckets:
                 buckets.add(bucket)
-    if add_zero_bucket:
-        buckets.add(0)
+    if add_zero_or_one_bucket:
+        buckets.add(bmin_origin)
     return list(sorted(buckets))
diff --git a/vllm_gaudi/v1/worker/hpu_dp_utils.py b/vllm_gaudi/v1/worker/hpu_dp_utils.py
index ed3dcc1d1..1002f364d 100644
--- a/vllm_gaudi/v1/worker/hpu_dp_utils.py
+++ b/vllm_gaudi/v1/worker/hpu_dp_utils.py
@@ -22,6 +22,11 @@ def make(
         dp_size = vllm_config.parallel_config.data_parallel_size
         tp_size = vllm_config.parallel_config.tensor_parallel_size
 
+        if vllm_config.parallel_config.use_sequence_parallel_moe and (num_tokens % tp_size != 0):
+            # make sure num_tokens is enough to be divided by tp_size for
+            # sequence parallel MOE
+            num_tokens = (num_tokens // tp_size + 1) * tp_size
+
         num_tokens_across_dp = num_tokens * dp_size
 
         dtype = vllm_config.model_config.dtype
diff --git a/vllm_gaudi/v1/worker/hpu_model_runner.py b/vllm_gaudi/v1/worker/hpu_model_runner.py
index 4546d41fd..2f7a50dfb 100644
--- a/vllm_gaudi/v1/worker/hpu_model_runner.py
+++ b/vllm_gaudi/v1/worker/hpu_model_runner.py
@@ -1974,10 +1974,10 @@ def _form_unified_prefill_batch(self, contents):
 
     def _create_dummy_prefill_batch_contents(self, num_prefills: int) -> list[PrefillInputData]:
         req_id = str(-1)
-        context_len = 0
-        query_len = 128
+        context_len = 127 if has_kv_transfer_group() else 0
+        query_len = 1 if has_kv_transfer_group() else 128
         prompt_tokens = 128
-        token_ids = list(int(i) for i in range(prompt_tokens))
+        token_ids = list(int(i) for i in range(query_len))
         num_blocks = round_up(context_len + query_len, self.block_size) // self.block_size
         blocks = [0] * num_blocks
         num_output_logits = context_len + query_len - prompt_tokens + 1