diff --git a/deepspeed/inference/v2/ragged/prefix_block_map.py b/deepspeed/inference/v2/ragged/prefix_block_map.py
index 85a2e83140f6..d59c750366b2 100644
--- a/deepspeed/inference/v2/ragged/prefix_block_map.py
+++ b/deepspeed/inference/v2/ragged/prefix_block_map.py
@@ -38,9 +38,9 @@ def lookup(self, tokens: torch.Tensor) -> torch.Tensor:
                 break
         return cached_blocks
 
-    def extend(self, tokens: torch.Tensor, new_block_ids: List[int]) -> None:
+    def extend(self, tokens: torch.Tensor, new_block_ids: List[int], num_already_cached_blocks: int) -> None:
         n_blocks = len(tokens) // self.block_size
-        for i in range(n_blocks):
+        for i in range(num_already_cached_blocks, n_blocks):
             chunk = tokens[:(i + 1) * self.block_size]
             hash = token_ids_to_hash(chunk)
             if hash not in self.tokens_to_blocks:
diff --git a/deepspeed/inference/v2/ragged/ragged_manager.py b/deepspeed/inference/v2/ragged/ragged_manager.py
index 3de4059283eb..fa07f663d54a 100644
--- a/deepspeed/inference/v2/ragged/ragged_manager.py
+++ b/deepspeed/inference/v2/ragged/ragged_manager.py
@@ -191,7 +191,10 @@ def update_cache(self, uid: int, tokens: torch.Tensor) -> None:
         Update the KV cache for the given sequence id.
         """
         seq = self.get_sequence(uid)
-        self._block_map.extend(tokens, seq.all_block_ids())
+        num_full_blocks = tokens.numel() // self._kv_configs[0].block_size
+        if num_full_blocks > seq.num_prefix_cache_blocks:
+            self._block_map.extend(tokens, seq.all_block_ids(), seq.num_prefix_cache_blocks)
+            seq.num_prefix_cache_blocks = num_full_blocks
 
     def increment_ref_count(self, block_ids: torch.Tensor) -> None:
         for block_id in block_ids:
diff --git a/deepspeed/inference/v2/ragged/sequence_descriptor.py b/deepspeed/inference/v2/ragged/sequence_descriptor.py
index 6b9f65255eec..25c1072ff042 100644
--- a/deepspeed/inference/v2/ragged/sequence_descriptor.py
+++ b/deepspeed/inference/v2/ragged/sequence_descriptor.py
@@ -95,6 +95,8 @@ class DSSequenceDescriptor(BaseSequenceDescriptor):
     # are stored. Used on flush.
     _tracking_id: int
 
+    _num_prefix_cache_blocks: int
+
     def __init__(self,
                  tracking_id: int,
                  kv_cache_ids: Tuple[torch.Tensor, ...],
@@ -132,6 +134,8 @@ def __init__(self,
             assert self._num_allocation_groups[cache_group] == kv_cache_ids.shape[0]
             assert len(kv_cache_ids.shape) == 2
 
+        self._num_prefix_cache_blocks = 0
+
     @property
     def seen_tokens(self) -> int:
         """
@@ -278,3 +282,20 @@ def free_kv_cache(self, free_ids: Union[List[torch.IntTensor], torch.IntTensor],
                 to have the same shape.
         """
         raise NotImplementedError("Partial KV-cache freeing is not yet supported.")
+
+    @property
+    def num_prefix_cache_blocks(self) -> int:
+        """
+        The number of prefix cache blocks for the sequence.
+        """
+        return self._num_prefix_cache_blocks
+
+    @num_prefix_cache_blocks.setter
+    def num_prefix_cache_blocks(self, num_blocks: int) -> None:
+        """
+        Set the number of prefix cache blocks for the sequence.
+
+        Arguments:
+            num_blocks (int): The number of prefix cache blocks for the sequence.
+        """
+        self._num_prefix_cache_blocks = num_blocks