diff --git a/mii/batching/data_classes.py b/mii/batching/data_classes.py
index 81cabd32..a005fa25 100644
--- a/mii/batching/data_classes.py
+++ b/mii/batching/data_classes.py
@@ -134,6 +134,12 @@ def is_done(self, is_done: bool) -> None:
     def generated_tokens(self) -> List[torch.Tensor]:
         return self._generated_tokens
 
+    @property
+    def all_tokens(self) -> List[torch.Tensor]:
+        return torch.cat([self.prompt_tokens] +
+                         [t.unsqueeze(0) for t in self.generated_tokens],
+                         dim=0)
+
     @property
     def finish_reason(self) -> GenerationFinishReason:
         return self._finish_reason
diff --git a/mii/batching/ragged_batching.py b/mii/batching/ragged_batching.py
index a4b49ff3..2724da7b 100644
--- a/mii/batching/ragged_batching.py
+++ b/mii/batching/ragged_batching.py
@@ -82,6 +82,8 @@ def __init__(self, inference_engine, tokenizer, model_config):
             self.socket.setsockopt_string(zmq.SUBSCRIBE, "")
             self.socket.setsockopt(zmq.RCVTIMEO, ZMQ_RECV_TIMEOUT)
 
+        self.enable_prefix_cache = self.inference_engine._config.enable_prefix_cache
+
     @cached_property
     def local_rank(self) -> int:
         return get_accelerator().current_device()
@@ -122,6 +124,9 @@ def generate(self) -> None:
         # 5. Schedule requests while we wait for the forward pass to finish
         self._reset_scheduler_bookkeeping()
 
+        for r in running_requests:
+            self.inference_engine.update_prefix_cache(r.uid, r.all_tokens)
+
         # 6. Accumulate generated tokens, check completion, and generate output
         for r in running_requests.last_in_prompt:
             r.accumulate_generated_token()
@@ -274,24 +279,38 @@ def _schedule_prompts(self, requests: List[Request]) -> None:
 
             max_blocks = free_blocks - self.scheduled_req_blocks
 
-            if len(r.input_tokens) > 1:
+            input_tokens = r.input_tokens
+            if r.seq_length == 0:
+                cache_hit_length, block_ids = self.inference_engine.lookup_cache(r.input_tokens)
+                input_tokens = input_tokens[cache_hit_length:]
+            else:
+                cache_hit_length = 0
+                block_ids = []
+
+            if len(input_tokens) > 1:
                 # When the KV cache is out of capacity, we release KV cache blocks for a request.
                 # However, we can immediately schedule the request again if we split the request.
                 # So we make sure that we have capacity for the entire prompt (+tokens already generated).
-                req_tokens, _ = self.inference_engine.query(r.uid, len(r.input_tokens), max_blocks)
-                if req_tokens < len(r.input_tokens):
+                req_tokens, _ = self.inference_engine.query(r.uid, len(input_tokens), max_blocks)
+                if req_tokens < len(input_tokens):
                     break
 
-            req_tokens = min(len(r.input_tokens), max_batch_size)
+            req_tokens = min(len(input_tokens), max_batch_size)
             req_tokens, req_blocks = self.inference_engine.query(r.uid, req_tokens, max_blocks)
 
             if req_tokens <= 0:
                 continue
 
             # Decompose the prompt to fit to the max ragged batch size
-            decomposed = req_tokens < len(r.input_tokens)
-            remaining_tokens = r.input_tokens[req_tokens:]
-            r.input_tokens = r.input_tokens[:req_tokens]
+            if cache_hit_length > 0:
+                self.inference_engine.setup_cached_sequence(r.uid,
+                                                            cache_hit_length,
+                                                            block_ids)
+                r.seq_length = r.seq_length + cache_hit_length
+
+            decomposed = req_tokens < len(input_tokens)
+            remaining_tokens = input_tokens[req_tokens:]
+            r.input_tokens = input_tokens[:req_tokens]
             r.last_in_prompt = not decomposed
 
             # Schedule the request
@@ -571,11 +590,15 @@ def __call__(self,
 
         if self.is_rank_0:
             # Rank 0 runs generate() until all responses are returned
-            while uids_running:
+            while uids_running \
+                or not self.request_queue.empty() \
+                or self.scheduled_requests.requests_to_flush.uids:
                 self.generate()
                 while not self.result_queues[self.tid].empty():
                     uid, response = self._get_response()
                     outputs.append(response)
+                    # We can't directly call flush because the flush request is broadcasted
+                    # to other ranks after taken from the queue
                     self._queue_flush_request(uid)
                     uids_complete_order.append(uid)
                     uids_running.remove(uid)