diff --git a/onnxruntime/core/optimizer/qdq_transformer/selectors_actions/qdq_selectors.cc b/onnxruntime/core/optimizer/qdq_transformer/selectors_actions/qdq_selectors.cc
index ef9e1b0cad490..12fbedd068866 100644
--- a/onnxruntime/core/optimizer/qdq_transformer/selectors_actions/qdq_selectors.cc
+++ b/onnxruntime/core/optimizer/qdq_transformer/selectors_actions/qdq_selectors.cc
@@ -763,6 +763,17 @@ bool DQMatMulNodeGroupSelector::Check(const GraphViewer& graph_viewer, const Nod
     return false;
   }
 
+  // Reject fusion if the weight or scale initializer is shared (consumed by more than one node).
+  // When two DQ nodes reference the same initializer (tied embedding pattern, issue #28306),
+  // the first fusion would consume the initializer, leaving the second DQ unable to find it —
+  // causing a crash in TransposeDQWeightsForMatMulNBits with "Missing required scale".
+  const auto* weight_arg = weight_dq->InputDefs()[0];
+  const auto* scale_arg = weight_dq->InputDefs()[1];
+  if (graph.GetConsumerNodes(weight_arg->Name()).size() > 1 ||
+      graph.GetConsumerNodes(scale_arg->Name()).size() > 1) {
+    return false;
+  }
+
   if (is_gemm) {
     // If there's a second DQ node (for bias), it must feed input 2
     if (dq_nodes.size() == 2) {
diff --git a/onnxruntime/test/optimizer/qdq_matmulnbits_transformer_test.cc b/onnxruntime/test/optimizer/qdq_matmulnbits_transformer_test.cc
index 03005e3a07386..aa65a5e80d3f6 100644
--- a/onnxruntime/test/optimizer/qdq_matmulnbits_transformer_test.cc
+++ b/onnxruntime/test/optimizer/qdq_matmulnbits_transformer_test.cc
@@ -319,6 +319,86 @@ TEST(QDQTransformerTests, DQMatMulNotConvertedToMatMulNBits_ShapeMismatch_Cuda)
   RunDQMatMulNotConverted_TypeShapeMismatch<Int4x2, true>({2, 12, 37}, {2, 37, 12}, 0, 16, 0, DefaultCudaExecutionProvider());
 }
 
+// Two MatMul nodes sharing the SAME weight and scale initializers (tied embedding pattern).
+// Regression test for issue #28306: the second DQ->MatMul fusion used to crash with
+// "Missing required scale" because the first fusion consumed the shared initializer.
+// Both DQ nodes should be rejected from fusion when weight or scale is shared.
+template <typename T, bool use_zp>
+typename std::enable_if<std::is_same_v<T, Int4x2> || std::is_same_v<T, UInt4x2>, void>::type
+RunDQMatMulNotConverted_SharedWeight(const std::vector<int64_t>& input_shape,
+                                     const std::vector<int64_t>& weight_shape,
+                                     const int64_t axis,
+                                     const int64_t block_size,
+                                     int64_t accuracy_level) {
+  auto build_test_case = [&](ModelTestBuilder& builder) {
+    auto* input1_arg = builder.MakeInput(input_shape, -100.0f, 100.0f);
+    auto* input2_arg = builder.MakeInput(input_shape, -100.0f, 100.0f);
+    auto* output_arg = builder.MakeOutput();
+
+    NodeAttributes attrs;
+    utils::SetNodeAttribute(utils::MakeAttribute("axis", axis), attrs);
+    utils::SetNodeAttribute(utils::MakeAttribute("block_size", block_size), attrs);
+
+    auto scale_shape = std::vector<int64_t>{weight_shape};
+    scale_shape[axis] = (scale_shape[axis] + block_size - 1) / block_size;
+
+    // Both DQ nodes share the SAME weight and scale initializers (tied embedding).
+    auto* shared_weight_arg = builder.MakeInitializer(weight_shape, T(T::min_val, 0), T(T::max_val, 0));
+    auto* shared_scales_arg = builder.MakeInitializer(scale_shape, 8.0f, 12.0f);
+
+    auto* dq1_output = builder.MakeIntermediate();
+    auto* dq2_output = builder.MakeIntermediate();
+
+    if constexpr (use_zp) {
+      auto* zp_arg = builder.MakeInitializer(scale_shape, T(0, 0), T(2, 0));
+      builder.AddNode("DequantizeLinear", {shared_weight_arg, shared_scales_arg, zp_arg}, {dq1_output}, "", &attrs);
+      builder.AddNode("DequantizeLinear", {shared_weight_arg, shared_scales_arg, zp_arg}, {dq2_output}, "", &attrs);
+    } else {
+      builder.AddNode("DequantizeLinear", {shared_weight_arg, shared_scales_arg}, {dq1_output}, "", &attrs);
+      builder.AddNode("DequantizeLinear", {shared_weight_arg, shared_scales_arg}, {dq2_output}, "", &attrs);
+    }
+
+    builder.AddNode("MatMul", {input1_arg, dq1_output}, {output_arg});
+    // Second MatMul is sunk to avoid unused-output; use a separate output node.
+    auto* output2_arg = builder.MakeOutput();
+    builder.AddNode("MatMul", {input2_arg, dq2_output}, {output2_arg});
+  };
+
+  auto check_graph = [&](InferenceSessionWrapper& session) {
+    auto op_to_count = CountOpsInGraph(session.GetGraph());
+    const QDQOpKeys qdq_keys = GetQDQOpKeys(false);
+    // Fusion must NOT happen: shared initializers prevent safe fusion.
+    EXPECT_EQ(op_to_count["MatMul"], 2);
+    EXPECT_EQ(op_to_count[qdq_keys.dequantize_linear], 2);
+    EXPECT_EQ(op_to_count["com.microsoft.MatMulNBits"], 0);
+  };
+
+  std::function<void(SessionOptions&)> add_session_options_fn{};
+  if (accuracy_level >= 0) {
+    add_session_options_fn = [accuracy_level](SessionOptions& sess_opts) {
+      std::ignore = sess_opts.config_options.AddConfigEntry(kOrtSessionOptionsQDQMatMulNBitsAccuracyLevel,
+                                                            std::to_string(accuracy_level).c_str());
+    };
+  }
+
+  TransformerTester(build_test_case,
+                    check_graph,
+                    TransformerLevel::Level1,
+                    TransformerLevel::Level2,
+                    21 /*opset_version*/,
+                    1e-5 /*per_sample_tolerance*/,
+                    1e-5 /*relative_per_sample_tolerance*/,
+                    nullptr,
+                    add_session_options_fn);
+}
+
+TEST(QDQTransformerTests, DQMatMulNotConvertedToMatMulNBits_SharedWeight) {
+  RunDQMatMulNotConverted_SharedWeight<UInt4x2, false>({12, 12}, {12, 37}, 0, 16, 0);
+  RunDQMatMulNotConverted_SharedWeight<Int4x2, false>({12, 12}, {12, 37}, 0, 16, 0);
+  RunDQMatMulNotConverted_SharedWeight<UInt4x2, true>({12, 12}, {12, 37}, 0, 16, 0);
+  RunDQMatMulNotConverted_SharedWeight<Int4x2, true>({12, 12}, {12, 37}, 0, 16, 0);
+}
+
 //  Input1
 //    |      DQ
 //     \    /