diff --git a/vllm/v1/worker/gpu/model_runner.py b/vllm/v1/worker/gpu/model_runner.py
index 9c170d46590d..b03724f5446c 100644
--- a/vllm/v1/worker/gpu/model_runner.py
+++ b/vllm/v1/worker/gpu/model_runner.py
@@ -139,6 +139,10 @@ def __init__(
         # CUDA graphs.
         self.cudagraph_manager = CudaGraphManager(self.vllm_config, self.device)
 
+    def update_max_model_len(self, max_model_len: int) -> None:
+        self.max_model_len = max_model_len
+        self.req_states.max_model_len = max_model_len
+
     def get_supported_tasks(self) -> tuple[str]:
         return ("generate",)
 
diff --git a/vllm/v1/worker/gpu_model_runner.py b/vllm/v1/worker/gpu_model_runner.py
index 07d5c282c036..43759b671491 100644
--- a/vllm/v1/worker/gpu_model_runner.py
+++ b/vllm/v1/worker/gpu_model_runner.py
@@ -452,6 +452,11 @@ def __init__(
         self.num_spec_tokens = 0
         if self.speculative_config:
             self.num_spec_tokens = self.speculative_config.num_speculative_tokens
+            draft_config = self.speculative_config.draft_model_config
+            if draft_config is not None and draft_config.max_model_len is not None:
+                self.effective_drafter_max_model_len = draft_config.max_model_len
+            else:
+                self.effective_drafter_max_model_len = self.max_model_len
 
         # Request states.
         self.requests: dict[str, CachedRequestState] = {}
@@ -674,6 +679,13 @@ def __init__(
         self.kv_connector_output: KVConnectorOutput | None = None
         self.layerwise_nvtx_hooks_registered = False
 
+    def update_max_model_len(self, max_model_len: int) -> None:
+        self.max_model_len = max_model_len
+        if self.speculative_config:
+            draft_config = self.speculative_config.draft_model_config
+            if draft_config is None or draft_config.max_model_len is None:
+                self.effective_drafter_max_model_len = self.max_model_len
+
     def reset_mm_cache(self) -> None:
         if self.mm_budget:
             self.mm_budget.reset_cache()
@@ -3423,54 +3435,41 @@ def propose_draft_token_ids(sampled_token_ids):
                 self._copy_draft_token_ids_to_cpu(scheduler_output)
 
         spec_config = self.speculative_config
-        use_padded_batch_for_eagle = (
-            spec_config is not None
-            and spec_config.use_eagle()
-            and not spec_config.disable_padded_drafter_batch
-        )
-        effective_drafter_max_model_len = self.max_model_len
-        if effective_drafter_max_model_len is None:
-            effective_drafter_max_model_len = self.model_config.max_model_len
-        if (
-            spec_config is not None
-            and spec_config.draft_model_config is not None
-            and spec_config.draft_model_config.max_model_len is not None
-        ):
-            effective_drafter_max_model_len = (
-                spec_config.draft_model_config.max_model_len
+        propose_drafts_after_bookkeeping = False
+        if spec_config is not None:
+            input_fits_in_drafter = spec_decode_common_attn_metadata is not None and (
+                spec_decode_common_attn_metadata.max_seq_len + self.num_spec_tokens
+                <= self.effective_drafter_max_model_len
             )
-        input_fits_in_drafter = spec_decode_common_attn_metadata and (
-            spec_decode_common_attn_metadata.max_seq_len + self.num_spec_tokens
-            <= effective_drafter_max_model_len
-        )
-        if use_padded_batch_for_eagle:
-            assert self.speculative_config is not None
-            assert isinstance(self.drafter, EagleProposer)
-            sampled_token_ids = sampler_output.sampled_token_ids
-            if input_fits_in_drafter:
+            if spec_config.use_eagle() and not spec_config.disable_padded_drafter_batch:
                 # EAGLE speculative decoding can use the GPU sampled tokens
                 # as inputs, and does not need to wait for bookkeeping to finish.
-                propose_draft_token_ids(sampled_token_ids)
-            elif self.valid_sampled_token_count_event is not None:
-                assert spec_decode_common_attn_metadata is not None
-                next_token_ids, valid_sampled_tokens_count = (
-                    self.drafter.prepare_next_token_ids_padded(
-                        spec_decode_common_attn_metadata,
-                        sampled_token_ids,
-                        self.requests,
-                        self.input_batch,
-                        self.discard_request_mask.gpu,
+                assert isinstance(self.drafter, EagleProposer)
+                sampled_token_ids = sampler_output.sampled_token_ids
+                if input_fits_in_drafter:
+                    propose_draft_token_ids(sampled_token_ids)
+                elif self.valid_sampled_token_count_event is not None:
+                    assert spec_decode_common_attn_metadata is not None
+                    next_token_ids, valid_sampled_tokens_count = (
+                        self.drafter.prepare_next_token_ids_padded(
+                            spec_decode_common_attn_metadata,
+                            sampled_token_ids,
+                            self.requests,
+                            self.input_batch,
+                            self.discard_request_mask.gpu,
+                        )
                     )
-                )
-                self._copy_valid_sampled_token_count(
-                    next_token_ids, valid_sampled_tokens_count
-                )
-                # Since we couldn't run the drafter,
-                # just use zeros for the draft tokens.
-                self._draft_token_ids = torch.zeros(
-                    1, device=self.device, dtype=torch.int32
-                ).expand(len(self.input_batch.req_ids), self.num_spec_tokens)
-                self._copy_draft_token_ids_to_cpu(scheduler_output, zeros_only=True)
+                    self._copy_valid_sampled_token_count(
+                        next_token_ids, valid_sampled_tokens_count
+                    )
+                    # Since we couldn't run the drafter,
+                    # just use zeros for the draft tokens.
+                    self._draft_token_ids = torch.zeros(
+                        1, device=self.device, dtype=torch.int32
+                    ).expand(len(self.input_batch.req_ids), self.num_spec_tokens)
+                    self._copy_draft_token_ids_to_cpu(scheduler_output, zeros_only=True)
+            else:
+                propose_drafts_after_bookkeeping = input_fits_in_drafter
 
         with record_function_or_nullcontext("gpu_model_runner: bookkeep"):
             (
@@ -3490,17 +3489,14 @@ def propose_draft_token_ids(sampled_token_ids):
                 spec_decode_metadata,
             )
 
-        if (
-            self.speculative_config
-            and not use_padded_batch_for_eagle
-            and input_fits_in_drafter
-        ):
+        if propose_drafts_after_bookkeeping:
             # ngram and other speculative decoding methods use the sampled
             # tokens on the CPU, so they are run after bookkeeping.
             propose_draft_token_ids(valid_sampled_token_ids)
 
         with record_function_or_nullcontext("gpu_model_runner: eplb"):
             self.eplb_step()
+
         with record_function_or_nullcontext("gpu_model_runner: ModelRunnerOutput"):
             output = ModelRunnerOutput(
                 req_ids=req_ids_output_copy,
@@ -3518,6 +3514,7 @@ def propose_draft_token_ids(sampled_token_ids):
 
         if not self.use_async_scheduling:
             return output
+
         with record_function_or_nullcontext(
             "gpu_model_runner: AsyncGPUModelRunnerOutput"
         ):
diff --git a/vllm/v1/worker/gpu_worker.py b/vllm/v1/worker/gpu_worker.py
index 8cdd77098d80..9431d5f1d0a3 100644
--- a/vllm/v1/worker/gpu_worker.py
+++ b/vllm/v1/worker/gpu_worker.py
@@ -390,7 +390,7 @@ def update_max_model_len(self, max_model_len: int) -> None:
         """
         self.model_config.max_model_len = max_model_len
         if self.model_runner is not None:
-            self.model_runner.max_model_len = max_model_len
+            self.model_runner.update_max_model_len(max_model_len)
         logger.debug("Updated max_model_len to %d", max_model_len)
 
     def initialize_from_config(self, kv_cache_config: KVCacheConfig) -> None: