diff --git a/vllm/lora/punica_wrapper/punica_hpu.py b/vllm/lora/punica_wrapper/punica_hpu.py
index 51e1bfab3f51..3661a7214648 100644
--- a/vllm/lora/punica_wrapper/punica_hpu.py
+++ b/vllm/lora/punica_wrapper/punica_hpu.py
@@ -1,12 +1,18 @@
 # SPDX-License-Identifier: Apache-2.0
 
-from typing import Optional, Tuple, Union, final
+from typing import TYPE_CHECKING, List, Optional, Tuple, Union, final
 
 import torch
 from vllm_hpu_extension.ops import (dispatch_bgmv_embedding,
                                     dispatch_bgmv_linear)
 
 from .punica_base import PunicaWrapperBase
+from .utils import convert_mapping
+
+if TYPE_CHECKING:
+    # avoid circuit import
+    from vllm.lora.layers import LoRAMapping
+    from vllm.lora.models import LongContextLoRAContext
 
 
 @final
@@ -19,6 +25,55 @@ def __init__(self, max_num_batched_tokens: int, max_batches: int,
         PunicaWrapperBase.__init__(self, 3 * max_num_batched_tokens,
                                    max_batches, device)
 
+    def _update_base_metadata(
+        self,
+        mapping: "LoRAMapping",
+        lora_index_to_id: List[Optional[int]],
+        max_loras: int,
+        vocab_size: int,
+        extra_vocab_size: int,
+        long_lora_context: Optional["LongContextLoRAContext"] = None,
+    ):
+        (
+            base_indices,
+            sampler_indices,
+            sampler_indices_padded,
+            embeddings_indices,
+            long_lora_offsets_tensor,
+            indices_len,
+        ) = convert_mapping(mapping, lora_index_to_id, max_loras, vocab_size,
+                            extra_vocab_size, self.device, None)
+        # Updating each element in `long_lora_offsets` with `lora_offset` slows
+        # down perf in HPU due to a series of `strided_insert` ops during lazy
+        # graph accumulation. Hence HPU appends `lora_offset` to a list and
+        # converts it to a tensor only after it is ready.
+        if long_lora_context:
+            index_mapping_indices: List[int] = list(
+                mapping.index_mapping).copy()
+            long_lora_offsets: List[int] = []
+            for i in range(len(index_mapping_indices)):
+                lora_offset: int = long_lora_context.offsets_by_lora_id.get(
+                    index_mapping_indices[i], 0)
+                long_lora_offsets.append(lora_offset)
+            long_lora_offsets_tensor = torch.tensor(long_lora_offsets,
+                                                    device=self.device,
+                                                    dtype=torch.long)
+            indices_len[-1] = long_lora_offsets_tensor.shape[-1]
+
+        self._token_lora_indices[:base_indices.shape[0]].copy_(base_indices)
+        self._sampler_indices[:sampler_indices.shape[0]].copy_(sampler_indices)
+        self._sampler_indices_padded[:sampler_indices_padded.shape[0]].copy_(
+            sampler_indices_padded)
+        self._embeddings_indices[:embeddings_indices.
+                                 shape[0], :embeddings_indices.shape[1]].copy_(
+                                     embeddings_indices)
+        if long_lora_offsets_tensor is not None:
+            self._long_lora_indices[:long_lora_offsets_tensor.shape[0]].copy_(
+                long_lora_offsets_tensor)
+        else:
+            self._long_lora_indices.zero_()
+        self.indices_len[:] = indices_len
+
     def add_lora_embedding(self,
                            y: torch.Tensor,
                            x: torch.Tensor,
diff --git a/vllm/model_executor/layers/rotary_embedding.py b/vllm/model_executor/layers/rotary_embedding.py
index b3b9b0e87605..2fffcb7b6e6e 100644
--- a/vllm/model_executor/layers/rotary_embedding.py
+++ b/vllm/model_executor/layers/rotary_embedding.py
@@ -206,9 +206,10 @@ def forward_hpu(
     ) -> Tuple[torch.Tensor, torch.Tensor]:
         from habana_frameworks.torch.hpex.kernels import (
             RotaryPosEmbeddingMode, apply_rotary_pos_emb)
-        positions = positions.flatten()
         if offsets is not None:
+            offsets = offsets.view(positions.shape[0], -1)
             positions = positions + offsets
+        positions = positions.flatten()
         num_tokens = positions.shape[0]
         cos_sin = self.cos_sin_cache.index_select(0, positions).view(
             num_tokens, 1, -1)
diff --git a/vllm/worker/hpu_model_runner.py b/vllm/worker/hpu_model_runner.py
index b846d4387ba5..774049a5281e 100644
--- a/vllm/worker/hpu_model_runner.py
+++ b/vllm/worker/hpu_model_runner.py
@@ -639,12 +639,25 @@ def load_model(self) -> None:
                     "Bias support in LoRA is not enabled in HPU yet."
                 assert not self.lora_config.fully_sharded_loras, \
                     "Fully sharded LoRAs is not enabled in HPU yet."
+                # It's necessary to distinguish between the
+                # max_position_embeddings of VLMs and LLMs.
+                if hasattr(self.model.config, "max_position_embeddings"):
+                    max_pos_embeddings = (
+                        self.model.config.max_position_embeddings)
+                else:
+                    max_pos_embeddings = (
+                        self.model.config.text_config.max_position_embeddings)
+
                 self.lora_manager = LRUCacheWorkerLoRAManager(
                     self.scheduler_config.max_num_seqs,
                     self.scheduler_config.max_num_batched_tokens,
-                    self.vocab_size, self.lora_config, self.device,
+                    self.vocab_size,
+                    self.lora_config,
+                    self.device,
                     self.model.embedding_modules,
-                    self.model.embedding_padding_modules)
+                    self.model.embedding_padding_modules,
+                    max_position_embeddings=max_pos_embeddings,
+                )
                 self.model = self.lora_manager.create_lora_manager(self.model)
 
             if self.model_config.quantization == 'inc':