diff --git a/python/sglang/multimodal_gen/runtime/distributed/parallel_state.py b/python/sglang/multimodal_gen/runtime/distributed/parallel_state.py
index b0264adb39be..24d1dca770d3 100644
--- a/python/sglang/multimodal_gen/runtime/distributed/parallel_state.py
+++ b/python/sglang/multimodal_gen/runtime/distributed/parallel_state.py
@@ -1,5 +1,4 @@
 # Copied and adapted from: https://github.com/hao-ai-lab/FastVideo
-
 # SPDX-License-Identifier: Apache-2.0
 # Adapted from: https://github.com/vllm-project/vllm/blob/v0.7.3/vllm/distributed/parallel_state.py
 # Copyright 2023 The vLLM team.
@@ -31,6 +30,7 @@
  you can skip the model parallel initialization and destruction steps.
 """
 import contextlib
+import datetime
 import os
 import weakref
 from collections import namedtuple
@@ -219,6 +219,7 @@ def init_distributed_environment(
     local_rank: int = 0,
     backend: str = "nccl",
     device_id: torch.device | None = None,
+    timeout: int | None = None,
 ):
     # Determine the appropriate backend based on the platform
     from sglang.multimodal_gen.runtime.platforms import current_platform
@@ -229,12 +230,14 @@ def init_distributed_environment(
         logger.info("Using gloo backend for %s platform", current_platform.device_name)
 
     logger.debug(
-        "world_size=%d rank=%d local_rank=%d " "distributed_init_method=%s backend=%s",
+        "world_size=%d rank=%d local_rank=%d "
+        "distributed_init_method=%s backend=%s timeout=%s",
         world_size,
         rank,
         local_rank,
         distributed_init_method,
         backend,
+        timeout,
     )
     if not torch.distributed.is_initialized():
         assert distributed_init_method is not None, (
@@ -248,6 +251,12 @@ def init_distributed_environment(
             if (current_platform.is_mps() or current_platform.is_musa())
             else dict(device_id=device_id)
         )
+
+        if timeout is not None:
+
+            extra_args["timeout"] = datetime.timedelta(seconds=timeout)
+            logger.info(f"Setting distributed timeout to {timeout} seconds")
+
         torch.distributed.init_process_group(
             backend=backend,
             init_method=distributed_init_method,
@@ -255,6 +264,7 @@ def init_distributed_environment(
             rank=rank,
             **extra_args,
         )
+
     # set the local rank
     # local_rank is not available in torch ProcessGroup,
     # see https://github.com/pytorch/pytorch/issues/122816
@@ -577,6 +587,7 @@ def maybe_init_distributed_environment_and_model_parallel(
     ring_degree: int = 1,
     dp_size: int = 1,
     distributed_init_method: str = "env://",
+    dist_timeout: int | None = None,
 ):
     from sglang.multimodal_gen.runtime.platforms import current_platform
 
@@ -594,9 +605,10 @@ def maybe_init_distributed_environment_and_model_parallel(
     rank = int(os.environ.get("RANK", 0))
     device = get_local_torch_device()
     logger.info(
-        "Initializing distributed environment with world_size=%d, device=%s",
+        "Initializing distributed environment with world_size=%d, device=%s, timeout=%s",
         world_size,
         device,
+        dist_timeout,
         main_process_only=False,
     )
 
@@ -606,6 +618,7 @@ def maybe_init_distributed_environment_and_model_parallel(
         local_rank=local_rank,
         distributed_init_method=distributed_init_method,
         device_id=device,
+        timeout=dist_timeout,
     )
     initialize_model_parallel(
         data_parallel_size=dp_size,
diff --git a/python/sglang/multimodal_gen/runtime/managers/gpu_worker.py b/python/sglang/multimodal_gen/runtime/managers/gpu_worker.py
index 5008c1d61968..9af2e1efce4a 100644
--- a/python/sglang/multimodal_gen/runtime/managers/gpu_worker.py
+++ b/python/sglang/multimodal_gen/runtime/managers/gpu_worker.py
@@ -85,6 +85,7 @@ def init_device_and_model(self) -> None:
             ring_degree=self.server_args.ring_degree,
             sp_size=self.server_args.sp_degree,
             dp_size=self.server_args.dp_size,
+            dist_timeout=self.server_args.dist_timeout,
         )
 
         self.pipeline = build_pipeline(self.server_args)
diff --git a/python/sglang/multimodal_gen/runtime/server_args.py b/python/sglang/multimodal_gen/runtime/server_args.py
index 4aed80cea16d..61bebc8d8add 100644
--- a/python/sglang/multimodal_gen/runtime/server_args.py
+++ b/python/sglang/multimodal_gen/runtime/server_args.py
@@ -266,7 +266,7 @@ class ServerArgs:
 
     hsdp_replicate_dim: int = 1
     hsdp_shard_dim: int = -1
-    dist_timeout: int | None = None  # timeout for torch.distributed
+    dist_timeout: int | None = 3600  # 1 hour
 
     pipeline_config: PipelineConfig = field(default_factory=PipelineConfig, repr=False)
 
@@ -592,7 +592,8 @@ def add_cli_args(parser: FlexibleArgumentParser) -> FlexibleArgumentParser:
             "--dist-timeout",
             type=int,
             default=ServerArgs.dist_timeout,
-            help="Set timeout for torch.distributed initialization.",
+            help="Timeout for torch.distributed operations in seconds. "
+            "Increase this value if you encounter 'Connection closed by peer' errors after the service is idle. ",
         )
 
         # Prompt text file for batch processing