diff --git a/python/sglang/srt/custom_op.py b/python/sglang/srt/custom_op.py
index d6fa29a704a..aed8ec2f112 100644
--- a/python/sglang/srt/custom_op.py
+++ b/python/sglang/srt/custom_op.py
@@ -50,6 +50,7 @@ def dispatch_forward(self):
     def scaled_fp8_quant(
         input: torch.Tensor,
         scale: Optional[torch.Tensor] = None,
+        num_token_padding: Optional[int] = None,
         use_per_token_if_dynamic: bool = False,
     ) -> tuple[torch.Tensor, torch.Tensor]:
         """
@@ -59,6 +60,8 @@ def scaled_fp8_quant(
             input (torch.Tensor): Input tensor to be quantized
             scale (Optional[torch.Tensor]): Pre-computed scaling factor for static quantization.
                 If None, scales will be computed dynamically.
+            num_token_padding (Optional[int]): If specified, pad the first dimension
+                of the output to at least this value.
             use_per_token_if_dynamic (bool): When using dynamic scaling (scale=None),
                 determines the quantization granularity:
                 - True: compute scale per token
@@ -75,6 +78,8 @@ def scaled_fp8_quant(
         assert input.ndim == 2, f"Expected 2D input tensor, got {input.ndim}D"
         shape = input.shape
         out_dtype = torch.float8_e4m3fnuz if _is_hip else torch.float8_e4m3fn
+        if num_token_padding:
+            shape = (max(num_token_padding, input.shape[0]), shape[1])
         output = torch.empty(shape, device=input.device, dtype=out_dtype)
 
         if scale is None:
diff --git a/python/sglang/srt/layers/quantization/fp8_utils.py b/python/sglang/srt/layers/quantization/fp8_utils.py
index 9ba62a6f654..7a7eb8884e0 100644
--- a/python/sglang/srt/layers/quantization/fp8_utils.py
+++ b/python/sglang/srt/layers/quantization/fp8_utils.py
@@ -457,12 +457,9 @@ def apply(
                 qinput, x_scale = sgl_scaled_fp8_quant(
                     input_2d,
                     input_scale,
+                    num_token_padding=self.output_padding,
                     use_per_token_if_dynamic=use_per_token_if_dynamic,
                 )
-                if self.output_padding:
-                    pad_size = max(self.output_padding - qinput.shape[0], 0)
-                    if pad_size > 0:
-                        qinput = torch.nn.functional.pad(qinput, (0, 0, 0, pad_size))
             else:
                 qinput, x_scale = ops.scaled_fp8_quant(
                     input_2d,
diff --git a/python/sglang/test/test_custom_ops.py b/python/sglang/test/test_custom_ops.py
index 6fa343dcb09..72b9f5ab31e 100644
--- a/python/sglang/test/test_custom_ops.py
+++ b/python/sglang/test/test_custom_ops.py
@@ -82,6 +82,61 @@ def dequantize_per_token(tensor, inv_scale, dtype):
             dequantize_per_token(ref_y, scale, dtype),
         )
 
+    @pytest.mark.parametrize("dtype", [torch.float16, torch.bfloat16])
+    def test_scaled_fp8_quant_with_padding(dtype) -> None:
+        original_rows = 5
+        x = (torch.randn(size=(original_rows, 16), device="cuda") * 13).to(dtype)
+
+        padding_size = 10
+
+        # Test with dynamic quantization
+        y_dynamic, scale_dynamic = scaled_fp8_quant(
+            x, None, num_token_padding=padding_size
+        )
+
+        # Verify output shape has the padded size
+        assert y_dynamic.shape[0] == padding_size
+        assert y_dynamic.shape[1] == x.shape[1]
+
+        # Verify that the actual data in the non-padded region is correctly quantized
+        y_without_padding, scale_without_padding = scaled_fp8_quant(x, None)
+        torch.testing.assert_close(y_dynamic[:original_rows], y_without_padding)
+
+        # Test with static quantization
+        # First get a scale
+        _, scale = scaled_fp8_quant(x, None)
+
+        # Then use it for static quantization with padding
+        y_static, _ = scaled_fp8_quant(x, scale, num_token_padding=padding_size)
+
+        # Verify output shape has the padded size
+        assert y_static.shape[0] == padding_size
+        assert y_static.shape[1] == x.shape[1]
+
+        # Verify that the actual data in the non-padded region is correctly quantized
+        y_static_without_padding, _ = scaled_fp8_quant(x, scale)
+        torch.testing.assert_close(y_static[:original_rows], y_static_without_padding)
+
+        # Test with per-token dynamic quantization
+        y_per_token, scale_per_token = scaled_fp8_quant(
+            x, None, num_token_padding=padding_size, use_per_token_if_dynamic=True
+        )
+
+        # Verify output shape has the padded size
+        assert y_per_token.shape[0] == padding_size
+        assert y_per_token.shape[1] == x.shape[1]
+
+        # Verify that the actual data in the non-padded region is correctly quantized
+        y_per_token_without_padding, scale_per_token_without_padding = scaled_fp8_quant(
+            x, None, use_per_token_if_dynamic=True
+        )
+        torch.testing.assert_close(
+            y_per_token[:original_rows], y_per_token_without_padding
+        )
+        torch.testing.assert_close(
+            scale_per_token[:original_rows], scale_per_token_without_padding
+        )
+
 
 if __name__ == "__main__":
     # Run the specific test function directly