diff --git a/flashinfer/jit/env.py b/flashinfer/jit/env.py
index 8cb4c0faa1..3e41a977cf 100644
--- a/flashinfer/jit/env.py
+++ b/flashinfer/jit/env.py
@@ -59,11 +59,16 @@ def has_flashinfer_cubin() -> bool:
 def _get_cubin_dir():
     """
     Get the cubin directory path with the following priority:
-    1. flashinfer-cubin package if installed
-    2. Environment variable FLASHINFER_CUBIN_DIR
+    1. Environment variable FLASHINFER_CUBIN_DIR
+    2. flashinfer-cubin package if installed
     3. Default cache directory
     """
-    # First check if flashinfer-cubin package is installed
+    # First check environment variable
+    env_dir = os.getenv("FLASHINFER_CUBIN_DIR")
+    if env_dir:
+        return pathlib.Path(env_dir)
+
+    # Then check if flashinfer-cubin package is installed
     if has_flashinfer_cubin():
         import flashinfer_cubin
 
@@ -82,11 +87,6 @@ def _get_cubin_dir():
 
         return pathlib.Path(flashinfer_cubin.get_cubin_dir())
 
-    # Then check environment variable
-    env_dir = os.getenv("FLASHINFER_CUBIN_DIR")
-    if env_dir:
-        return pathlib.Path(env_dir)
-
     # Fall back to default cache directory
     return FLASHINFER_CACHE_DIR / "cubins"
 
diff --git a/tests/test_env.py b/tests/test_env.py
new file mode 100644
index 0000000000..ebf9ab5eff
--- /dev/null
+++ b/tests/test_env.py
@@ -0,0 +1,103 @@
+"""Regression tests for _get_cubin_dir() priority — issue #2976.
+
+env.py imports CompilationContext (CUDA deps), so we load it in isolation
+with lightweight stubs to keep tests runnable without a GPU.
+
+    python -m pytest tests/test_env.py -v --noconftest
+"""
+
+import importlib.util
+import pathlib
+import sys
+import types
+
+_REPO_ROOT = pathlib.Path(__file__).resolve().parents[1]
+
+
+def _load_env_module():
+    """Load flashinfer.jit.env with minimal stubs (no CUDA required)."""
+    stubs = {
+        "flashinfer": types.ModuleType("flashinfer"),
+        "flashinfer.jit": types.ModuleType("flashinfer.jit"),
+        "flashinfer.version": types.ModuleType("flashinfer.version"),
+        "flashinfer.compilation_context": types.ModuleType(
+            "flashinfer.compilation_context"
+        ),
+    }
+    stubs["flashinfer"].__path__ = [str(_REPO_ROOT / "flashinfer")]
+    stubs["flashinfer.jit"].__path__ = [str(_REPO_ROOT / "flashinfer" / "jit")]
+    stubs["flashinfer.version"].__version__ = "0.0.0+test"
+    stubs["flashinfer.version"].__git_version__ = "test"
+
+    class _Stub:
+        def __init__(self):
+            self.TARGET_CUDA_ARCHS = set()
+
+    stubs["flashinfer.compilation_context"].CompilationContext = _Stub
+
+    saved = {k: sys.modules.get(k) for k in stubs}
+    sys.modules.update(stubs)
+    try:
+        spec = importlib.util.spec_from_file_location(
+            "flashinfer.jit.env", str(_REPO_ROOT / "flashinfer" / "jit" / "env.py")
+        )
+        mod = importlib.util.module_from_spec(spec)
+        sys.modules["flashinfer.jit.env"] = mod
+        spec.loader.exec_module(mod)
+        return mod
+    finally:
+        for k, v in saved.items():
+            if v is None:
+                sys.modules.pop(k, None)
+            else:
+                sys.modules[k] = v
+
+
+_env = _load_env_module()
+
+
+def _fake_cubin_pkg(path):
+    """Return a stub ``flashinfer_cubin`` module pointing at *path*."""
+    m = types.ModuleType("flashinfer_cubin")
+    m.__version__ = "0.0.0+test"
+    m.get_cubin_dir = lambda: path
+    return m
+
+
+# -- priority tests (regression for #2976) ----------------------------------
+
+
+def test_env_var_overrides_package(monkeypatch, tmp_path):
+    """FLASHINFER_CUBIN_DIR must take priority over the installed package."""
+    env_dir = str(tmp_path / "env_cubins")
+    pkg_dir = str(tmp_path / "pkg_cubins")
+    monkeypatch.setenv("FLASHINFER_CUBIN_DIR", env_dir)
+    monkeypatch.setenv("FLASHINFER_DISABLE_VERSION_CHECK", "1")
+    monkeypatch.setattr(_env, "has_flashinfer_cubin", lambda: True)
+    monkeypatch.setitem(sys.modules, "flashinfer_cubin", _fake_cubin_pkg(pkg_dir))
+    assert _env._get_cubin_dir() == pathlib.Path(env_dir)
+
+
+def test_package_used_when_no_env_var(monkeypatch, tmp_path):
+    """Without the env var, the package path should be returned."""
+    pkg_dir = str(tmp_path / "pkg_cubins")
+    monkeypatch.delenv("FLASHINFER_CUBIN_DIR", raising=False)
+    monkeypatch.setenv("FLASHINFER_DISABLE_VERSION_CHECK", "1")
+    monkeypatch.setattr(_env, "has_flashinfer_cubin", lambda: True)
+    monkeypatch.setitem(sys.modules, "flashinfer_cubin", _fake_cubin_pkg(pkg_dir))
+    assert _env._get_cubin_dir() == pathlib.Path(pkg_dir)
+
+
+def test_env_var_used_when_no_package(monkeypatch, tmp_path):
+    """Env var should work even when the package is not installed."""
+    env_dir = str(tmp_path / "env_cubins")
+    monkeypatch.setenv("FLASHINFER_CUBIN_DIR", env_dir)
+    monkeypatch.setattr(_env, "has_flashinfer_cubin", lambda: False)
+    assert _env._get_cubin_dir() == pathlib.Path(env_dir)
+
+
+def test_default_when_nothing_set(monkeypatch):
+    """Fall back to the default cache directory."""
+    monkeypatch.delenv("FLASHINFER_CUBIN_DIR", raising=False)
+    monkeypatch.setattr(_env, "has_flashinfer_cubin", lambda: False)
+    assert _env._get_cubin_dir() == _env.FLASHINFER_CACHE_DIR / "cubins"