diff --git a/megatron/core/inference/inference_request.py b/megatron/core/inference/inference_request.py
index 7111d11cb5a..473b26b81c3 100644
--- a/megatron/core/inference/inference_request.py
+++ b/megatron/core/inference/inference_request.py
@@ -32,6 +32,7 @@ class InferenceRequest:
     prompt: str
     sampling_params: Optional[SamplingParams] = None
     inference_parameters: Optional[SamplingParams] = None
+    prompt_logits: Optional[torch.Tensor] = None
     prompt_tokens: Optional[List[int]] = None
     arrival_time: Optional[float] = None
     status: Optional[Status] = None
@@ -40,6 +41,7 @@ class InferenceRequest:
     segments: Optional[List[str]] = None
     generated_segments: Optional[List[str]] = None
     generated_sequence_lengths: Optional[List[int]] = None
+    generated_logits: Optional[torch.Tensor] = None
     generated_tokens: Optional[torch.Tensor] = None
     prompt_log_probs: Optional[torch.Tensor] = None
     generated_log_probs: Optional[torch.Tensor] = None
diff --git a/megatron/core/inference/model_inference_wrappers/abstract_model_inference_wrapper.py b/megatron/core/inference/model_inference_wrappers/abstract_model_inference_wrapper.py
index 5367d0be1bb..4f0643fadf8 100644
--- a/megatron/core/inference/model_inference_wrappers/abstract_model_inference_wrapper.py
+++ b/megatron/core/inference/model_inference_wrappers/abstract_model_inference_wrapper.py
@@ -117,7 +117,7 @@ def prep_model_for_inference(self, prompts_tokens: Optional[torch.Tensor] = None
             is_pipeline_first_stage(self.pp_group) and is_pipeline_last_stage(self.pp_group)
         )
 
-        self.inference_context.reset()
+        self.inference_context = type(self.inference_context).from_config(self.inference_wrapper_config)
 
     @abc.abstractmethod
     def prep_inference_input(self, prompt_tokens) -> Dict[str, Any]:
@@ -152,11 +152,12 @@ def _forward(self, inference_input):
         tokens = inference_input["tokens"]
         position_ids = inference_input["position_ids"]
         attention_mask = inference_input["attention_mask"]
+        inference_context = inference_input.get("inference_context", self.inference_context)
         return self.model(
             tokens,
             position_ids,
             attention_mask,
-            inference_context=self.inference_context,
+            inference_context=inference_context,
             runtime_gather_output=True,  # Inference should always gather the logits
         )
 
diff --git a/megatron/core/inference/model_inference_wrappers/inference_wrapper_config.py b/megatron/core/inference/model_inference_wrappers/inference_wrapper_config.py
index 2276549c025..352a1fad9cb 100644
--- a/megatron/core/inference/model_inference_wrappers/inference_wrapper_config.py
+++ b/megatron/core/inference/model_inference_wrappers/inference_wrapper_config.py
@@ -31,6 +31,12 @@ class InferenceWrapperConfig:
     inference_max_seq_length: int = 2560
     """ Maximum sequence length for inference (prefill & decode). Necessary for CUDA graphs. """
 
+    prompt_segmentation_threshold: int | None = None
+    """If prompt length exceeds this value, it will be split into segments. This
+    feature allows to process very large prompts that normally would cause
+    Out Of Memory (OOM) during forward pass. If None, prompt segmentation is
+    disabled."""
+
     fp32_residual_connection: bool = False
     """Move residual connections to fp32. Obtained from arguments.py"""
 
diff --git a/megatron/core/inference/sampling_params.py b/megatron/core/inference/sampling_params.py
index 75e6adb0ef6..396a97b396f 100644
--- a/megatron/core/inference/sampling_params.py
+++ b/megatron/core/inference/sampling_params.py
@@ -1,4 +1,5 @@
 # Copyright (c) 2024, NVIDIA CORPORATION. All rights reserved.
+from collections.abc import Callable
 from dataclasses import dataclass
 
 
@@ -19,10 +20,12 @@ class SamplingParams:
     top_k: int = 0
     top_p: float = 0.0
     return_log_probs: bool = False
+    return_logits: bool = False
     return_segments: bool = False  # Whether to return individually detokenized tokens
     num_tokens_to_generate: int = 30
     top_n_logprobs: int = 0
     return_prompt_top_n_logprobs: bool = False
+    token_callback: Callable[[int], None] | None = None
 
     def add_attributes(self, attribute_value_pair: dict):
         """Utility to add more attributes to sampling params
diff --git a/megatron/core/inference/text_generation_controllers/text_generation_controller.py b/megatron/core/inference/text_generation_controllers/text_generation_controller.py
index c8ce19b928f..06c85797c24 100644
--- a/megatron/core/inference/text_generation_controllers/text_generation_controller.py
+++ b/megatron/core/inference/text_generation_controllers/text_generation_controller.py
@@ -206,7 +206,6 @@ def sample_from_logits(
 
         assert isinstance(top_p, float)
         assert isinstance(top_k, int)
-        assert not (top_k > 0 and top_p > 0.0), "Cannot have top-p and top-k both greater than zero"
         assert top_p <= 1.0, "top-p should be in (0,1]"
 
         def modify_logits_for_top_k_filtering(logits, top_k):
@@ -293,8 +292,7 @@ def modify_logits_for_top_p_filtering(logits, top_p):
                 if vocab_size:
                     assert top_k < vocab_size, "top-k is larger than vocab size."
                 modify_logits_for_top_k_filtering(last_token_logits, top_k)
-
-            elif top_p > 0.0:
+            if top_p > 0.0:
                 modify_logits_for_top_p_filtering(last_token_logits, top_p)
 
             # After filtering, we need to recalculate the distribution.
@@ -577,6 +575,9 @@ def generate_all_output_tokens_static_batch(
         max_prompt_length_in_batch = max(prompt_lengths_in_batch)
         min_prompt_length_in_batch = min(prompt_lengths_in_batch)
 
+        pst = self.inference_wrapped_model.inference_wrapper_config.prompt_segmentation_threshold
+        pst = min(pst or min_prompt_length_in_batch, min_prompt_length_in_batch)
+
         # For batch inference the sampling params are the same for all request
         sampling_params: SamplingParams = list(active_requests.values())[0].sampling_params
 
@@ -659,6 +660,15 @@ def generate_all_output_tokens_static_batch(
         # to nearest power of 2
         vocab_size = self.inference_wrapped_model.inference_wrapper_config.padded_vocab_size
 
+        # Pre allocate logits tensor
+        output_logits = None
+        if sampling_params.return_logits:
+            output_logits = torch.empty(
+                (batch_size, max_sequence_length - 1, vocab_size),
+                dtype=torch.float32,
+                device=torch.cuda.current_device(),
+            )
+
         # Check whether early termination is enabled
         no_early_termination = getattr(sampling_params, "no_early_termination", False)
         termination_id = -1 if no_early_termination else self.tokenizer.eod
@@ -714,7 +724,7 @@ def generate_all_output_tokens_static_batch(
             if sampling_params.num_tokens_to_generate == 0:
                 context_end_position = max_prompt_length_in_batch
             else:
-                context_end_position = min_prompt_length_in_batch
+                context_end_position = pst
 
             # The initial iteration of this loop runs the prefill phase up to the shortest
             # prompt length in the batch. Then every subsequent iterations runs a decode step.
@@ -845,6 +855,14 @@ def generate_all_output_tokens_static_batch(
                         log_probs, 2, indices
                     ).squeeze(2)
 
+                if sampling_params.return_logits:
+                    # Store the raw logits for the current context window
+                    assert output_logits is not None
+                    output_logits[:, context_start_position:context_end_position] = logits
+
+                if sampling_params.token_callback:
+                    sampling_params.token_callback(context_end_position)
+
                 context_start_position = context_end_position
 
                 if sampling_params.num_tokens_to_generate > 0:
@@ -911,6 +929,10 @@ def generate_all_output_tokens_static_batch(
             assert output_log_probs is not None
             output_log_probs = output_log_probs[:, :context_end_position]
 
+        if sampling_params.return_logits:
+            assert output_logits is not None
+            output_logits = output_logits[:, :context_end_position]
+
         generated_sequence_lengths[
             generated_sequence_lengths > sampling_params.num_tokens_to_generate
         ] = sampling_params.num_tokens_to_generate
@@ -984,6 +1006,22 @@ def generate_all_output_tokens_static_batch(
                         :required_sequence_length
                     ]
 
+            request.prompt_logits = (
+                None
+                if output_logits is None
+                else output_logits[idx, :input_prompt_length].cpu()
+            )
+
+            request.generated_logits = (
+                None
+                if output_logits is None
+                else output_logits[
+                    idx,
+                    input_prompt_length - 1 : (input_prompt_length + required_sequence_length - 1),
+                ]
+                .cpu()
+            )
+
             request.status = Status.COMPLETED
 
             text, segments = self.detokenize_generations(
diff --git a/megatron/core/post_training/modelopt/layers.py b/megatron/core/post_training/modelopt/layers.py
index 0ca4a8e4070..d74ebf2a3eb 100644
--- a/megatron/core/post_training/modelopt/layers.py
+++ b/megatron/core/post_training/modelopt/layers.py
@@ -114,6 +114,7 @@ def __init__(
         tp_comm_buffer_name: str = None,  # Not used
         disable_grad_reduce: bool = False,
         tp_group: Optional[torch.distributed.ProcessGroup] = None,
+        input_is_parallel = None,  # To make compatible with TELinear
     ):
         self.config = config
 
@@ -162,7 +163,7 @@ def forward(self, x):
         out = super().forward(x)
 
         if self._return_bias:
-            return out
+            return out, self.bias.detach()
         return out, None
 
 
diff --git a/megatron/core/transformer/attention.py b/megatron/core/transformer/attention.py
index 47ec1ff0626..f789c8228f1 100644
--- a/megatron/core/transformer/attention.py
+++ b/megatron/core/transformer/attention.py
@@ -672,7 +672,7 @@ def forward(
         # relative positional embedding (rotary embedding)
         # ================================================
         nvtx_range_push(suffix="rotary_pos_emb")
-        if rotary_pos_emb is not None and not self.config.flash_decode:
+        if rotary_pos_emb is not None and (not self.config.flash_decode or inference_context is None):
             q_pos_emb, k_pos_emb = rotary_pos_emb
 
             if packed_seq_params is not None:
diff --git a/megatron/core/transformer/mlp.py b/megatron/core/transformer/mlp.py
index 7da5396142e..87279dea7b2 100644
--- a/megatron/core/transformer/mlp.py
+++ b/megatron/core/transformer/mlp.py
@@ -311,7 +311,18 @@ def sh_ten_build_fn(
 
     def sh_ten_merge_fn(sub_state_dict):
         with torch.no_grad():
-            return torch.cat(sub_state_dict)
+            n = len(sub_state_dict)
+            m = sub_state_dict[0].shape[0]
+            k = sub_state_dict[0].shape[1]
+
+            # Merge everything into 0th tensor.
+            sub_state_dict[0].resize_([n*m, k])
+
+            for i in range(1, n):
+                sub_state_dict[0][i*m:, :] = sub_state_dict[i]
+                sub_state_dict[i].resize_([0, 0])
+
+            return sub_state_dict[0]
 
     return ShardedTensorFactory(
         original_sh_ten.key,
diff --git a/tests/unit_tests/inference/text_generation_controllers/test_simple_text_generation_controller.py b/tests/unit_tests/inference/text_generation_controllers/test_simple_text_generation_controller.py
index 68f0062c8dd..90d380006ff 100644
--- a/tests/unit_tests/inference/text_generation_controllers/test_simple_text_generation_controller.py
+++ b/tests/unit_tests/inference/text_generation_controllers/test_simple_text_generation_controller.py
@@ -101,14 +101,6 @@ def teardown_method(self, method):
     def test_sample_from_logits(self):
         self.setup_model(torch.float32)
 
-        with pytest.raises(AssertionError) as aerror:
-            self.text_generation_controller.sample_from_logits(
-                last_token_logits=None,
-                sampling_params=SamplingParams(top_k=2, top_p=0.4),
-                vocab_size=self.vocab_size,
-            )
-        assert str(aerror.value) == 'Cannot have top-p and top-k both greater than zero'
-
         with pytest.raises(AssertionError) as aerror:
             self.text_generation_controller.sample_from_logits(
                 last_token_logits=None,
@@ -186,6 +178,67 @@ def detokenize(self, inp, skip_special_tokens=False):
             sampled_logits >= expected_min_value
         ), f"The sampled logits should all be greater than {expected_min_value} but its {sampled_logits}"
 
+        # Test case for both top_k and top_p being greater than zero
+        # This should apply top_k filtering first, then top_p filtering
+
+        # First, a general test for top_k + top_p as before
+        top_k = 10
+        top_p = 0.7
+        temperature = 1.5
+
+        test_logits = (
+            torch.arange(0, self.vocab_size).repeat(self.batch_size, 1).float().cuda()
+        )
+
+        sampled_logits = self.text_generation_controller.sample_from_logits(
+            test_logits,
+            SamplingParams(top_k=top_k, top_p=top_p, temperature=temperature),
+            self.vocab_size,
+        )
+
+        assert torch.all(
+            sampled_logits >= self.vocab_size - top_k
+        ), f"With top_k={top_k}, sampled tokens should be from top {top_k} tokens, but got {sampled_logits}"
+
+        # Now, a specific test to ensure top_p is working after top_k
+        # We'll set up logits so that top_k=2, and top_p will only allow the highest logit
+
+        # Create logits: last two tokens are much higher than the rest
+        # For batch_size=1 for simplicity
+        batch_size = 1
+        vocab_size = 6
+        logits = torch.tensor([[0.0, 0.0, 0.0, 0.0, 1.0, 10.0]], device="cuda")  # shape (1, 6)
+        # After top_k=2, only indices 4 and 5 remain (values 1.0 and 10.0)
+        # After softmax with large temperature, probabilities will be close to uniform, but let's use a moderate temperature
+        # Let's compute softmax([1.0, 10.0]/T) for T=0.5 (sharper), T=10 (flatter)
+        # We'll use a large temperature to make the probabilities more uniform, so top_p can cut off the lower one
+
+        top_k = 2
+        temperature = 10.0  # Large temperature, so softmax([1.0, 10.0]/10) ~ softmax([0.1, 1.0]) ~ [0.289, 0.710]
+        # If we set top_p=0.7, only the highest logit (index 5) should remain after top_p filtering
+
+        sampled_logits = self.text_generation_controller.sample_from_logits(
+            logits,
+            SamplingParams(top_k=top_k, top_p=0.7, temperature=temperature),
+            vocab_size,
+        )
+
+        # Only index 5 should be possible
+        assert torch.all(
+            sampled_logits == 5
+        ), f"With top_k=2 and top_p=0.7, only the highest logit (index 5) should remain, but got {sampled_logits}"
+
+        # If we set top_p=1.0, both tokens should be possible
+        sampled_indices = set()
+        for _ in range(20):
+            sampled = self.text_generation_controller.sample_from_logits(
+                logits,
+                SamplingParams(top_k=top_k, top_p=1.0, temperature=temperature),
+                vocab_size,
+            )
+            sampled_indices.add(sampled.item())
+        assert {4, 5}.issubset(sampled_indices), "With top_k=2 and top_p=1.0, both top tokens should be possible to sample"
+
     @pytest.mark.parametrize("dtype", [torch.float32, torch.bfloat16])
     @pytest.mark.parametrize(
         "symmetric_ar_type",