diff --git a/bindings/python/src/lib.rs b/bindings/python/src/lib.rs
index 13f54ffe14..5af6426922 100644
--- a/bindings/python/src/lib.rs
+++ b/bindings/python/src/lib.rs
@@ -397,6 +397,7 @@ struct Router {
     overload_token_usage_threshold: f32,
     prefix_token_count: usize,
     prefix_hash_load_factor: f64,
+    prefix_hash_balance_abs_threshold: usize,
     least_load_kv_pressure_weight: f64,
     least_load_default_throughput: f64,
     least_load_mean_prefill_tokens: u32,
@@ -610,6 +611,7 @@ impl Router {
                 PolicyType::PrefixHash => ConfigPolicyConfig::PrefixHash {
                     prefix_token_count: self.prefix_token_count,
                     load_factor: self.prefix_hash_load_factor,
+                    balance_abs_threshold: self.prefix_hash_balance_abs_threshold,
                 },
             })
         };
@@ -1006,6 +1008,7 @@ impl Router {
         zmq_engine_count = None,
         prefix_token_count = 256,
         prefix_hash_load_factor = 1.25,
+        prefix_hash_balance_abs_threshold = 10,
     ))]
     #[expect(clippy::too_many_arguments)]
     #[expect(
@@ -1138,6 +1141,7 @@ impl Router {
         zmq_engine_count: Option<usize>,
         prefix_token_count: usize,
         prefix_hash_load_factor: f64,
+        prefix_hash_balance_abs_threshold: usize,
     ) -> PyResult<Self> {
         let mut all_urls = worker_urls.clone();
 
@@ -1179,6 +1183,7 @@ impl Router {
             overload_token_usage_threshold,
             prefix_token_count,
             prefix_hash_load_factor,
+            prefix_hash_balance_abs_threshold,
             least_load_kv_pressure_weight,
             least_load_default_throughput,
             least_load_mean_prefill_tokens,
diff --git a/bindings/python/src/smg/router.py b/bindings/python/src/smg/router.py
index 21c8723523..23e7946a43 100644
--- a/bindings/python/src/smg/router.py
+++ b/bindings/python/src/smg/router.py
@@ -172,6 +172,10 @@ class Router:
         prefix_hash_load_factor: Load factor above which the prefix_hash policy
             walks the ring instead of using the hashed worker (multiple of the
             average load). Default: 1.25
+        prefix_hash_balance_abs_threshold: Absolute load difference over average
+            a worker must also exceed before prefix_hash treats it as
+            overloaded. Guards the load factor against sampling noise when each
+            router replica sees only a share of a worker's load. Default: 10
         balance_abs_threshold: Load balancing is triggered when (max_load - min_load) >
             abs_threshold AND max_load > min_load * rel_threshold. Otherwise, use cache
             aware. Default: 32
diff --git a/bindings/python/src/smg/router_args.py b/bindings/python/src/smg/router_args.py
index d902c85ff2..d5173b7b06 100644
--- a/bindings/python/src/smg/router_args.py
+++ b/bindings/python/src/smg/router_args.py
@@ -208,6 +208,7 @@ class RouterArgs:
     zmq_engine_count: int | None = None
     prefix_token_count: int = 256
     prefix_hash_load_factor: float = 1.25
+    prefix_hash_balance_abs_threshold: int = 10
 
     @staticmethod
     def add_cli_args(
@@ -404,6 +405,15 @@ def add_cli_args(
             default=RouterArgs.prefix_hash_load_factor,
             help="Load factor above which prefix_hash walks the ring (multiple of average load)",
         )
+        routing_group.add_argument(
+            f"--{prefix}prefix-hash-balance-abs-threshold",
+            type=int,
+            default=RouterArgs.prefix_hash_balance_abs_threshold,
+            help=(
+                "Absolute load difference over average a worker must also "
+                "exceed before prefix_hash treats it as overloaded"
+            ),
+        )
         routing_group.add_argument(
             f"--{prefix}least-load-kv-pressure-weight",
             type=float,
diff --git a/model_gateway/src/config/types.rs b/model_gateway/src/config/types.rs
index 1f0c38d597..63e3239c72 100644
--- a/model_gateway/src/config/types.rs
+++ b/model_gateway/src/config/types.rs
@@ -555,7 +555,7 @@ pub enum PolicyConfig {
     /// A lightweight alternative to cache_aware radix tree.
     /// Routes requests based on prefix token hash for cache locality.
     /// - Uses consistent hash ring with bounded load balancing
-    /// - Walks ring if worker is overloaded (load > avg * load_factor)
+    /// - Diverts to the least loaded worker when the hashed one is overloaded
     /// - O(log n) lookup instead of O(prefix_len) radix tree traversal
     #[serde(rename = "prefix_hash")]
     PrefixHash {
@@ -563,9 +563,14 @@ pub enum PolicyConfig {
         /// of the prompt when the request is untokenized (default: 256)
         #[serde(default = "default_prefix_token_count")]
         prefix_token_count: usize,
-        /// Load factor threshold - walk ring if load > avg * factor (default: 1.25)
+        /// Relative load threshold - a worker is overloaded when its load
+        /// exceeds both avg * factor and the absolute margin (default: 1.25)
         #[serde(default = "default_load_factor")]
         load_factor: f64,
+        /// Absolute load difference over average a worker must also exceed
+        /// before it counts as overloaded (default: 10)
+        #[serde(default = "default_prefix_hash_balance_abs_threshold")]
+        balance_abs_threshold: usize,
     },
 }
 
@@ -585,6 +590,10 @@ fn default_load_factor() -> f64 {
     1.25
 }
 
+fn default_prefix_hash_balance_abs_threshold() -> usize {
+    10
+}
+
 fn default_manual_eviction_interval_secs() -> u64 {
     60
 }
diff --git a/model_gateway/src/config/validation.rs b/model_gateway/src/config/validation.rs
index 6a7af3c303..c5647c6fb5 100644
--- a/model_gateway/src/config/validation.rs
+++ b/model_gateway/src/config/validation.rs
@@ -593,6 +593,7 @@ impl ConfigValidator {
             PolicyConfig::PrefixHash {
                 prefix_token_count,
                 load_factor,
+                balance_abs_threshold: _,
             } => {
                 if *prefix_token_count == 0 {
                     return Err(ConfigError::InvalidValue {
diff --git a/model_gateway/src/main.rs b/model_gateway/src/main.rs
index 74f46dffab..ff9f30fb60 100644
--- a/model_gateway/src/main.rs
+++ b/model_gateway/src/main.rs
@@ -254,6 +254,11 @@ struct CliArgs {
     #[arg(long, default_value_t = 1.25, help_heading = "Routing Policy")]
     prefix_hash_load_factor: f64,
 
+    /// Absolute load difference over average a worker must also exceed before
+    /// the prefix_hash policy treats it as overloaded
+    #[arg(long, default_value_t = 10, help_heading = "Routing Policy")]
+    prefix_hash_balance_abs_threshold: usize,
+
     /// KV-pressure weight (seconds) for the least_load policy
     #[arg(long, default_value_t = 0.15, help_heading = "Routing Policy")]
     least_load_kv_pressure_weight: f64,
@@ -1152,6 +1157,7 @@ impl CliArgs {
             "prefix_hash" => PolicyConfig::PrefixHash {
                 prefix_token_count: self.prefix_token_count,
                 load_factor: self.prefix_hash_load_factor,
+                balance_abs_threshold: self.prefix_hash_balance_abs_threshold,
             },
             "consistent_hashing" => PolicyConfig::ConsistentHashing,
             "manual" => PolicyConfig::Manual {
diff --git a/model_gateway/src/policies/factory.rs b/model_gateway/src/policies/factory.rs
index b8485826f7..84c70c09df 100644
--- a/model_gateway/src/policies/factory.rs
+++ b/model_gateway/src/policies/factory.rs
@@ -80,10 +80,12 @@ impl PolicyFactory {
             PolicyConfig::PrefixHash {
                 prefix_token_count,
                 load_factor,
+                balance_abs_threshold,
             } => {
                 let config = PrefixHashConfig {
                     prefix_token_count: *prefix_token_count,
                     load_factor: *load_factor,
+                    balance_abs_threshold: *balance_abs_threshold,
                 };
                 Arc::new(PrefixHashPolicy::new(config))
             }
@@ -162,6 +164,7 @@ mod tests {
         let policy = PolicyFactory::create_from_config(&PolicyConfig::PrefixHash {
             prefix_token_count: 100,
             load_factor: 0.8,
+            balance_abs_threshold: 10,
         });
         assert_eq!(policy.name(), "prefix_hash");
     }
diff --git a/model_gateway/src/policies/prefix_hash.rs b/model_gateway/src/policies/prefix_hash.rs
index f58681590f..628bf7e84f 100644
--- a/model_gateway/src/policies/prefix_hash.rs
+++ b/model_gateway/src/policies/prefix_hash.rs
@@ -10,7 +10,8 @@
 //!    or the equivalent span of routing text when the request is untokenized
 //! 2. Hash the prefix using xxhash for fast, stable hashing
 //! 3. Use consistent hash ring to find the target worker
-//! 4. If worker is overloaded (load > avg * load_factor), find least loaded
+//! 4. If worker is overloaded (load above both the relative and absolute
+//!    margins over average), find least loaded
 //! 5. Return least loaded worker that passes load check, or initial if all overloaded
 //!
 //! ## Complexity
@@ -45,11 +46,20 @@ pub struct PrefixHashConfig {
     /// Default: 256 tokens (~1 paragraph of text)
     pub prefix_token_count: usize,
 
-    /// Load factor threshold for walking the ring.
-    /// If a worker's load > (total_load / num_workers) * load_factor,
-    /// walk clockwise to the next worker.
+    /// Relative load threshold for the overload check.
+    /// A worker counts as overloaded once its load exceeds the average by
+    /// this multiple as well as by `balance_abs_threshold`, at which point
+    /// the request goes to the least loaded worker that is not overloaded.
     /// Default: 1.25 (125% of average load)
     pub load_factor: f64,
+
+    /// Absolute load difference threshold for the overload check.
+    /// A worker only counts as overloaded once its load exceeds the average
+    /// by this many requests as well as by `load_factor`. Without it the
+    /// check is purely relative, so its false-positive rate grows as each
+    /// router replica observes a smaller share of a worker's true load.
+    /// Default: 10 requests
+    pub balance_abs_threshold: usize,
 }
 
 impl Default for PrefixHashConfig {
@@ -57,6 +67,7 @@ impl Default for PrefixHashConfig {
         Self {
             prefix_token_count: 256,
             load_factor: 1.25,
+            balance_abs_threshold: 10,
         }
     }
 }
@@ -150,6 +161,9 @@ impl PrefixHashPolicy {
     }
 
     /// Check if a worker's load is acceptable
+    ///
+    /// Overload requires clearing both the relative and the absolute margin,
+    /// mirroring the imbalance test cache_aware uses.
     #[inline]
     fn load_ok(&self, worker_load: usize, total_load: usize, num_workers: usize) -> bool {
         if total_load == 0 || num_workers == 0 {
@@ -158,7 +172,8 @@ impl PrefixHashPolicy {
 
         // Average load per worker (with +1 to simulate incoming request)
         let avg_load = (total_load + 1) as f64 / num_workers as f64;
-        let threshold = avg_load * self.config.load_factor;
+        let threshold = (avg_load * self.config.load_factor)
+            .max(avg_load + self.config.balance_abs_threshold as f64);
 
         (worker_load as f64) <= threshold
     }
@@ -529,18 +544,52 @@ mod tests {
     fn test_load_ok_calculation() {
         let policy = PrefixHashPolicy::new(PrefixHashConfig {
             load_factor: 1.25,
+            balance_abs_threshold: 0,
             ..Default::default()
         });
 
-        // Total load 100, 4 workers -> avg 25, threshold 31.25
-        assert!(policy.load_ok(30, 100, 4)); // 30 <= 31.25
-        assert!(!policy.load_ok(35, 100, 4)); // 35 > 31.25
+        // Total load 100, 4 workers -> avg 25.25, threshold 31.5625
+        assert!(policy.load_ok(30, 100, 4));
+        assert!(!policy.load_ok(35, 100, 4));
 
         // Edge cases
         assert!(policy.load_ok(0, 0, 4)); // No load = OK
         assert!(policy.load_ok(100, 0, 0)); // No workers = OK (shouldn't happen)
     }
 
+    #[test]
+    fn test_absolute_margin_absorbs_small_count_noise() {
+        let policy = PrefixHashPolicy::new(PrefixHashConfig {
+            load_factor: 1.25,
+            balance_abs_threshold: 10,
+            ..Default::default()
+        });
+
+        // Average 10.25 across 4 workers: the relative margin alone flags 13,
+        // but 13 is within 10 requests of average so it stays acceptable.
+        assert!(policy.load_ok(13, 40, 4));
+        assert!(!policy.load_ok(21, 40, 4));
+    }
+
+    #[test]
+    fn test_relative_margin_still_binds_at_high_load() {
+        let policy = PrefixHashPolicy::new(PrefixHashConfig {
+            load_factor: 1.25,
+            balance_abs_threshold: 10,
+            ..Default::default()
+        });
+
+        // Average 200.25: the relative margin (250.3) now exceeds the absolute
+        // one (210.25), so it is the binding constraint.
+        assert!(policy.load_ok(240, 800, 4));
+        assert!(!policy.load_ok(260, 800, 4));
+    }
+
+    #[test]
+    fn test_absolute_margin_defaults_on() {
+        assert_eq!(PrefixHashConfig::default().balance_abs_threshold, 10);
+    }
+
     #[test]
     fn test_policy_name() {
         let policy = PrefixHashPolicy::with_defaults();
diff --git a/model_gateway/tests/common/test_config.rs b/model_gateway/tests/common/test_config.rs
index 2d6e221681..f68ac0c6a0 100644
--- a/model_gateway/tests/common/test_config.rs
+++ b/model_gateway/tests/common/test_config.rs
@@ -122,6 +122,7 @@ impl TestRouterConfig {
                 .policy(PolicyConfig::PrefixHash {
                     prefix_token_count,
                     load_factor: 1.25,
+                    balance_abs_threshold: 10,
                 })
                 .host(defaults::HOST)
                 .port(port)