diff --git a/megatron/core/optimizer/emerging_optimizers.py b/megatron/core/optimizer/emerging_optimizers.py
index 25294beabdf..f10c79dc4be 100644
--- a/megatron/core/optimizer/emerging_optimizers.py
+++ b/megatron/core/optimizer/emerging_optimizers.py
@@ -232,7 +232,8 @@ def orthogonalize(self, p: torch.Tensor, grad: torch.Tensor, **kwargs: Any) -> t
 def _eopt_init_state_fn(opt, config=None):
     """Initialize emerging optimizer state for torch_dist checkpoint format."""
     for group in opt.param_groups:
-        opt._init_group(group)
+        # Checkpoint init needs state for all parameters, including those without grads yet.
+        opt._init_group(group, skip_non_grad_params=False)
 
 
 def _kwargs_from_config(optimizer_cls: type, prefix: str, config) -> Dict[str, Any]:
diff --git a/pyproject.toml b/pyproject.toml
index 52a168aaa3a..3a9d27b6a81 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -190,7 +190,7 @@ flash_mla = [
 ]
 transformer-engine = { git = "https://github.com/NVIDIA/TransformerEngine.git", rev = "5671fd3675906cda1ade26c24a65d3dedd88eb89" }
 nemo-run = { git = "https://github.com/NVIDIA-NeMo/Run.git", rev = "01a9a8ba360f7b2908728ad0516e0ad9d936966d" }
-emerging_optimizers = { git = "https://github.com/NVIDIA-NeMo/Emerging-Optimizers.git", rev = "a8faf641d5fca6a0515cfc010b6cedbf488cc33a" }
+emerging_optimizers = { git = "https://github.com/NVIDIA-NeMo/Emerging-Optimizers.git", rev = "bc634ff8c0cf4fb5dbae0a531081281b499be3a0" }
 fast-hadamard-transform = { git = "https://github.com/Dao-AILab/fast-hadamard-transform.git", rev = "f134af63deb2df17e1171a9ec1ea4a7d8604d5ca" }
 
 [tool.isort]
diff --git a/uv.lock b/uv.lock
index 08482b4b7b8..d1e17d67196 100644
--- a/uv.lock
+++ b/uv.lock
@@ -1411,7 +1411,7 @@ wheels = [
 [[package]]
 name = "emerging-optimizers"
 version = "0.2.0"
-source = { git = "https://github.com/NVIDIA-NeMo/Emerging-Optimizers.git?rev=a8faf641d5fca6a0515cfc010b6cedbf488cc33a#a8faf641d5fca6a0515cfc010b6cedbf488cc33a" }
+source = { git = "https://github.com/NVIDIA-NeMo/Emerging-Optimizers.git?rev=bc634ff8c0cf4fb5dbae0a531081281b499be3a0#bc634ff8c0cf4fb5dbae0a531081281b499be3a0" }
 dependencies = [
     { name = "absl-py", marker = "python_full_version >= '3.12' or (extra == 'extra-13-megatron-core-dev' and extra == 'extra-13-megatron-core-lts')" },
     { name = "torch", marker = "(python_full_version >= '3.12' and sys_platform == 'never') or (python_full_version < '3.12' and extra == 'extra-13-megatron-core-dev' and extra == 'extra-13-megatron-core-lts') or (sys_platform != 'never' and extra == 'extra-13-megatron-core-dev' and extra == 'extra-13-megatron-core-lts')" },
@@ -2748,8 +2748,8 @@ requires-dist = [
     { name = "datasets", marker = "extra == 'lts'" },
     { name = "einops", marker = "extra == 'dev'", specifier = "~=0.8" },
     { name = "einops", marker = "extra == 'lts'", specifier = "~=0.8" },
-    { name = "emerging-optimizers", marker = "python_full_version >= '3.12' and extra == 'dev'", git = "https://github.com/NVIDIA-NeMo/Emerging-Optimizers.git?rev=a8faf641d5fca6a0515cfc010b6cedbf488cc33a" },
-    { name = "emerging-optimizers", marker = "python_full_version >= '3.12' and extra == 'lts'", git = "https://github.com/NVIDIA-NeMo/Emerging-Optimizers.git?rev=a8faf641d5fca6a0515cfc010b6cedbf488cc33a" },
+    { name = "emerging-optimizers", marker = "python_full_version >= '3.12' and extra == 'dev'", git = "https://github.com/NVIDIA-NeMo/Emerging-Optimizers.git?rev=bc634ff8c0cf4fb5dbae0a531081281b499be3a0" },
+    { name = "emerging-optimizers", marker = "python_full_version >= '3.12' and extra == 'lts'", git = "https://github.com/NVIDIA-NeMo/Emerging-Optimizers.git?rev=bc634ff8c0cf4fb5dbae0a531081281b499be3a0" },
     { name = "fastapi", marker = "extra == 'dev'", specifier = "~=0.50" },
     { name = "fastapi", marker = "extra == 'lts'", specifier = "~=0.50" },
     { name = "flash-linear-attention", marker = "extra == 'dev'", specifier = "~=0.4.0" },
@@ -2823,7 +2823,7 @@ linting = [
     { name = "ruff", specifier = "~=0.9.0" },
 ]
 no-pypi-wheels = [
-    { name = "emerging-optimizers", marker = "python_full_version >= '3.12'", git = "https://github.com/NVIDIA-NeMo/Emerging-Optimizers.git?rev=a8faf641d5fca6a0515cfc010b6cedbf488cc33a" },
+    { name = "emerging-optimizers", marker = "python_full_version >= '3.12'", git = "https://github.com/NVIDIA-NeMo/Emerging-Optimizers.git?rev=bc634ff8c0cf4fb5dbae0a531081281b499be3a0" },
     { name = "fast-hadamard-transform", git = "https://github.com/Dao-AILab/fast-hadamard-transform.git?rev=f134af63deb2df17e1171a9ec1ea4a7d8604d5ca" },
 ]
 test = [