diff --git a/tests/kv_transfer/disagg_test_pp.py b/tests/kv_transfer/disagg_test_pp.py
new file mode 100644
index 000000000000..b2f2e79614cb
--- /dev/null
+++ b/tests/kv_transfer/disagg_test_pp.py
@@ -0,0 +1,122 @@
+import os
+import subprocess
+import sys
+import time
+from subprocess import Popen
+
+import pytest
+import requests
+import torch
+def kill_proc(proc):
+    proc.terminate()
+    try:
+        proc.wait(8)
+    except subprocess.TimeoutExpired:
+        proc.kill()
+
+# Fixture to set up environment variables and teardown servers after tests
+@pytest.fixture(scope="module", autouse=True)
+def setup_servers():
+    if torch.cuda.device_count() < 4:
+        pytest.skip("Skipping test: fewer than 4 GPUs available")
+
+    # Set up environment variables
+    VLLM_HOST_IP = subprocess.check_output("hostname -I | awk '{print $1}'",
+                                           shell=True).decode().strip()
+    os.environ["VLLM_HOST_IP"] = VLLM_HOST_IP
+
+    # Start prefill instance, testing pipeling parallelism = 2
+    prefill_cmd = [
+        sys.executable,
+        "-m",
+        "vllm.entrypoints.openai.api_server",
+        "--model",
+        "meta-llama/Meta-Llama-3.1-8B-Instruct",
+        "--pipeline-parallel-size",
+        "2",
+        "--port",
+        "8100",
+        "--gpu-memory-utilization",
+        "0.5",
+        "--max-model-len",
+        "1000",
+        "--kv-transfer-config",
+        '{"kv_connector":"PyNcclConnector","kv_role":"kv_producer",'\
+        '"kv_rank":0,"kv_parallel_size":2}',
+    ]
+    prefill_env = os.environ.copy()
+    prefill_env["CUDA_VISIBLE_DEVICES"] = "0,1"
+    prefill_proc = Popen(prefill_cmd, env=prefill_env)
+
+    # Start decode instance, testing pipeling parallelism = 2
+    decode_cmd = [
+        sys.executable,
+        "-m",
+        "vllm.entrypoints.openai.api_server",
+        "--model",
+        "meta-llama/Meta-Llama-3.1-8B-Instruct",
+        "--pipeline-parallel-size",
+        "2",
+        "--port",
+        "8200",
+        "--gpu-memory-utilization",
+        "0.5",
+        "--max-model-len",
+        "1000",
+        "--kv-transfer-config",
+        '{"kv_connector":"PyNcclConnector","kv_role":"kv_consumer",'\
+        '"kv_rank":1,"kv_parallel_size":2}',
+    ]
+    decode_env = os.environ.copy()
+    decode_env["CUDA_VISIBLE_DEVICES"] = "2,3"
+    decode_proc = Popen(decode_cmd, env=decode_env)
+
+    # Wait for servers to be ready
+    assert wait_for_server(8100), "Prefill server did not start in time"
+    assert wait_for_server(8200), "Decode server did not start in time"
+
+    # Yield to the test function and handle teardown after tests
+    yield
+    kill_proc(prefill_proc)
+    kill_proc(decode_proc)
+
+
+# Helper function to wait for server
+def wait_for_server(port, timeout=240):
+    start_time = time.time()
+    while time.time() - start_time < timeout:
+        try:
+            response = requests.get(f"http://localhost:{port}/v1/completions")
+            if response.status_code in [200, 405]:
+                return True
+        except requests.ConnectionError:
+            time.sleep(1)
+    return False
+
+
+# Test function to send curl requests and validate responses
+@pytest.mark.parametrize("prompt", ["San Francisco is a", "Santa Clara is a"])
+def test_disaggregated_prefilling(prompt):
+    # Send to prefill
+    response = requests.post("http://localhost:8100/v1/completions",
+                             headers={"Content-Type": "application/json"},
+                             json={
+                                 "model":
+                                 "meta-llama/Meta-Llama-3.1-8B-Instruct",
+                                 "prompt": prompt,
+                                 "max_tokens": 1,
+                                 "temperature": 0
+                             })
+    assert response.status_code == 200
+
+    # Send to decode
+    response = requests.post("http://localhost:8200/v1/completions",
+                             headers={"Content-Type": "application/json"},
+                             json={
+                                 "model":
+                                 "meta-llama/Meta-Llama-3.1-8B-Instruct",
+                                 "prompt": prompt,
+                                 "max_tokens": 10,
+                                 "temperature": 0
+                             })
+    assert response.status_code == 200
diff --git a/vllm/distributed/kv_transfer/kv_connector/simple_connector.py b/vllm/distributed/kv_transfer/kv_connector/simple_connector.py
index 7780e2dfa317..64424bdced56 100644
--- a/vllm/distributed/kv_transfer/kv_connector/simple_connector.py
+++ b/vllm/distributed/kv_transfer/kv_connector/simple_connector.py
@@ -137,14 +137,18 @@ def select(self, input_tokens: Optional[torch.Tensor],
             "consumer buffer before calling select."
         return self.consumer_buffer.drop_select(input_tokens, roi)
 
-    def insert(self, input_tokens: torch.Tensor, roi: torch.Tensor,
-               key: torch.Tensor, value: torch.Tensor,
-               hidden: torch.Tensor) -> None:
+    def insert(self,
+               input_tokens: torch.Tensor,
+               roi: torch.Tensor,
+               key: torch.Tensor,
+               value: torch.Tensor,
+               hidden: torch.Tensor,
+               residual: torch.Tensor = None) -> None:
 
         assert self.producer_buffer is not None, "Please initialize the "\
             "producer buffer before calling insert."
-
-        self.producer_buffer.insert(input_tokens, roi, key, value, hidden)
+        self.producer_buffer.insert(input_tokens, roi, key, value, hidden,
+                                    residual)
 
     def send_kv_caches_and_hidden_states(
         self,
@@ -190,12 +194,20 @@ def send_kv_caches_and_hidden_states(
 
             keys = torch.cat(keys, dim=0)
             values = torch.cat(values, dim=0)
-
-            self.insert(current_tokens,
-                        torch.ones_like(current_tokens,
-                                        dtype=bool), keys, values,
-                        hidden_or_intermediate_states[start_pos:end_pos])
-
+            if isinstance(hidden_or_intermediate_states, torch.Tensor):
+                self.insert(current_tokens,
+                            torch.ones_like(current_tokens,
+                                            dtype=bool), keys, values,
+                            hidden_or_intermediate_states[start_pos:end_pos])
+            elif isinstance(hidden_or_intermediate_states,
+                            IntermediateTensors):
+                self.insert(
+                    current_tokens, torch.ones_like(current_tokens,
+                                                    dtype=bool), keys, values,
+                    hidden_or_intermediate_states["hidden_states"]
+                    [start_pos:end_pos],
+                    hidden_or_intermediate_states["residual"]
+                    [start_pos:end_pos])
         logger.debug("[rank%d]: KV send DONE.", torch.distributed.get_rank())
 
     def recv_kv_caches_and_hidden_states(
@@ -216,7 +228,7 @@ def recv_kv_caches_and_hidden_states(
         slot_mapping = model_input.attn_metadata.slot_mapping.flatten()
 
         hidden_or_intermediate_states_for_one_req = []
-
+        pp_intermediate_tensors = IntermediateTensors({})
         input_tokens_list = []
         num_computed_tokens_list = []
         start_pos_list = []
@@ -246,6 +258,9 @@ def recv_kv_caches_and_hidden_states(
             keys: torch.Tensor = ret[2]
             values: torch.Tensor = ret[3]
             hidden: torch.Tensor = ret[4]
+            residual: torch.Tensor = None
+            if len(ret) > 5:
+                residual = ret[5]
 
             num_computed_tokens = roi.shape[0]
             num_computed_tokens_list.append(num_computed_tokens)
@@ -279,8 +294,22 @@ def recv_kv_caches_and_hidden_states(
                     layer.self_attn.attn._k_scale,
                     layer.self_attn.attn._v_scale,
                 )
-
-            hidden_or_intermediate_states_for_one_req.append(hidden)
+            if residual is None:
+                hidden_or_intermediate_states_for_one_req.append(hidden)
+            else:
+                if "hidden_states" not in pp_intermediate_tensors.tensors:
+                    pp_intermediate_tensors.tensors["hidden_states"] = hidden
+                    pp_intermediate_tensors.tensors["residual"] = residual
+                else:
+                    pp_intermediate_tensors.tensors[
+                        "hidden_states"] = torch.cat(
+                            (pp_intermediate_tensors.tensors["hidden_states"],
+                             hidden),
+                            dim=1)
+                    pp_intermediate_tensors.tensors["residual"] = torch.cat(
+                        (pp_intermediate_tensors.tensors["residual"],
+                         residual),
+                        dim=1)
 
         if not bypass_model_exec:
             # Some of the KV cache is not retrieved
@@ -296,8 +325,11 @@ def recv_kv_caches_and_hidden_states(
             logger.debug(
                 "[rank%d]: Successfully received all KVs and hidden "
                 "states, skip model forwarding.", torch.distributed.get_rank())
-            hidden_or_intermediate_states = torch.cat(
-                hidden_or_intermediate_states_for_one_req, dim=0)
+            if residual is None:
+                hidden_or_intermediate_states = torch.cat(
+                    hidden_or_intermediate_states_for_one_req, dim=0)
+            else:
+                hidden_or_intermediate_states = pp_intermediate_tensors
 
         return hidden_or_intermediate_states, bypass_model_exec, model_input
 
diff --git a/vllm/distributed/kv_transfer/kv_lookup_buffer/simple_buffer.py b/vllm/distributed/kv_transfer/kv_lookup_buffer/simple_buffer.py
index fe8d8d7375f3..b600450f4901 100644
--- a/vllm/distributed/kv_transfer/kv_lookup_buffer/simple_buffer.py
+++ b/vllm/distributed/kv_transfer/kv_lookup_buffer/simple_buffer.py
@@ -15,6 +15,7 @@
 
 import torch
 
+from vllm.distributed import get_pp_group
 from vllm.distributed.kv_transfer.kv_lookup_buffer.base import (
     KVLookupBufferBase)
 from vllm.distributed.kv_transfer.kv_pipe.base import KVPipeBase
@@ -99,9 +100,13 @@ def _get_element_size(self, data: Optional[Union[List, torch.Tensor]]):
 
         raise AssertionError(f"Unknown data type {type(data)}")
 
-    def _add_to_buffer(self, input_tokens: torch.Tensor, roi: torch.Tensor,
-                       key: torch.Tensor, value: torch.Tensor,
-                       hidden: torch.Tensor):
+    def _add_to_buffer(self,
+                       input_tokens: torch.Tensor,
+                       roi: torch.Tensor,
+                       key: torch.Tensor,
+                       value: torch.Tensor,
+                       hidden: torch.Tensor,
+                       residual: torch.Tensor = None):
 
         if isinstance(input_tokens, torch.Tensor):
             input_tokens = input_tokens.clone()
@@ -113,8 +118,11 @@ def _add_to_buffer(self, input_tokens: torch.Tensor, roi: torch.Tensor,
             value = value.clone()
         if isinstance(hidden, torch.Tensor):
             hidden = hidden.clone()
-
-        buffer_item = [input_tokens, roi, key, value, hidden]
+        if residual is not None:
+            residual = residual.clone()
+            buffer_item = [input_tokens, roi, key, value, hidden, residual]
+        else:
+            buffer_item = [input_tokens, roi, key, value, hidden]
 
         with self.buffer_lock:
             for data in buffer_item:
@@ -204,15 +212,22 @@ def drop_select(
         key = self.data_pipe.recv_tensor()
         value = self.data_pipe.recv_tensor()
         hidden = self.data_pipe.recv_tensor()
+        if get_pp_group().world_size > 1 and not get_pp_group().is_last_rank:
+            residual = self.data_pipe.recv_tensor()
+            return [input_tokens, roi, key, value, hidden, residual]
 
         return [input_tokens, roi, key, value, hidden]
 
     def full_handler(self):
         time.sleep(0.001)
 
-    def insert(self, input_tokens: torch.Tensor, roi: torch.Tensor,
-               key: torch.Tensor, value: torch.Tensor,
-               hidden: torch.Tensor) -> None:
+    def insert(self,
+               input_tokens: torch.Tensor,
+               roi: torch.Tensor,
+               key: torch.Tensor,
+               value: torch.Tensor,
+               hidden: torch.Tensor,
+               residual: torch.Tensor = None) -> None:
 
         if self.buffer_size > self.buffer_size_threshold:
             # log outside the while loop to avoid this message being logged
@@ -221,7 +236,7 @@ def insert(self, input_tokens: torch.Tensor, roi: torch.Tensor,
         while self.buffer_size > self.buffer_size_threshold:
             self.full_handler()
 
-        self._add_to_buffer(input_tokens, roi, key, value, hidden)
+        self._add_to_buffer(input_tokens, roi, key, value, hidden, residual)
 
         # when calling the insert, the current process is a sender
         # need to launch the request handler and start listening to request.