diff --git a/vllm_gaudi/ops/hpu_fused_moe.py b/vllm_gaudi/ops/hpu_fused_moe.py
index c496c79679..21db0b541a 100644
--- a/vllm_gaudi/ops/hpu_fused_moe.py
+++ b/vllm_gaudi/ops/hpu_fused_moe.py
@@ -284,7 +284,8 @@ def patched_fused_moe_forward(
     ensure_moe_quant_config_init, and _sequence_parallel_context — all of
     which access ForwardContext and cause torch.compile graph breaks), we
     use a layer reference stashed on the runner at FusedMoE.__init__ time
-    (self._hpu_layer_ref) and call _forward_impl directly. This also
+    (self._hpu_layer_ref) and bypass _forward_impl for dp_size==1,
+    calling _apply_quant_method + _maybe_combine directly. This also
     bypasses self.layer_name (a per-layer string) so dynamo no longer
     emits per-layer string guards that trigger recompilation.
 
@@ -297,17 +298,27 @@ def patched_fused_moe_forward(
     hidden_states, og_hidden_dims = self._maybe_pad_hidden_states(shared_experts_input, hidden_states)
 
     if self.moe_config.dp_size == 1:
-        # Use layer ref saved at FusedMoE.__init__ to avoid both the
-        # get_layer_from_name(self.layer_name) lookup (graph break) and
-        # the per-layer string guard from accessing self.layer_name.
-        # Replicate the remaining forward_dispatch logic that we bypass:
-        # 1. Sync shared experts stream for multi-stream overlap
+        # Bypass _forward_impl entirely for dp_size==1 to eliminate
+        # graph breaks from _sequence_parallel_context() (which calls
+        # get_forward_context()), skip the no-op _maybe_dispatch(), and
+        # avoid double gate / stream-sync calls that _forward_impl
+        # would redundantly repeat.
+        if self.moe_config.pcp_size > 1:
+            raise RuntimeError("dp_size==1 fast path does not support pcp_size > 1")
+        layer = self._hpu_layer_ref
+        layer.ensure_moe_quant_config_init()
         self._maybe_sync_shared_experts_stream(shared_experts_input)
-        # 2. Apply gate if the runner owns it (internal router mode)
-        if self.gate is not None:
-            router_logits, _ = self.gate(hidden_states)
-
-        result = self._forward_impl(self._hpu_layer_ref, hidden_states, router_logits, shared_experts_input, input_ids)
+        gate = self.gate or getattr(self, "_hpu_gate_ref", None)
+        if gate is not None:
+            router_logits, _ = gate(hidden_states)
+        shared_output, fused_hidden = self._apply_quant_method(
+            layer=layer,
+            hidden_states=hidden_states,
+            router_logits=router_logits,
+            shared_experts_input=shared_experts_input,
+            input_ids=input_ids,
+        )
+        result = self._maybe_combine(shared_output, fused_hidden)
     else:
         result = self._forward_entry(hidden_states, router_logits, shared_experts_input, input_ids,
                                      self._encode_layer_name(), self._trtllm_mxfp4_unpadded_dim())
@@ -546,15 +557,14 @@ def _patched_default_moe_runner_forward(self, *args, **kwargs):
 
 def _hpu_fused_moe_init(self, *args, **kwargs):
     _orig_fused_moe_init(self, *args, **kwargs)
-    if hasattr(self, 'runner'):
-        object.__setattr__(self.runner, '_hpu_layer_ref', self)
+    if hasattr(self, "runner"):
+        object.__setattr__(self.runner, "_hpu_layer_ref", self)
+        if self.runner.gate is not None:
+            object.__setattr__(self.runner, "_hpu_gate_ref", self.runner.gate)
 
 
 FusedMoE.__init__ = _hpu_fused_moe_init
 
-vllm.model_executor.layers.fused_moe.layer.get_compressed_expert_map = \
-    get_compressed_expert_map
-vllm.model_executor.layers.fused_moe.router.router_factory.create_fused_moe_router = \
-    create_fused_moe_router
-vllm.model_executor.layers.fused_moe.layer.create_fused_moe_router = \
-    create_fused_moe_router
+vllm.model_executor.layers.fused_moe.layer.get_compressed_expert_map = get_compressed_expert_map
+vllm.model_executor.layers.fused_moe.router.router_factory.create_fused_moe_router = create_fused_moe_router
+vllm.model_executor.layers.fused_moe.layer.create_fused_moe_router = create_fused_moe_router