diff --git a/vllm/v1/worker/gpu/cudagraph_utils.py b/vllm/v1/worker/gpu/cudagraph_utils.py
index 2b94362a808f..f18d8f320aaa 100644
--- a/vllm/v1/worker/gpu/cudagraph_utils.py
+++ b/vllm/v1/worker/gpu/cudagraph_utils.py
@@ -263,6 +263,7 @@ def __init__(
         decode_query_len: int,
     ):
         super().__init__(vllm_config, device, cudagraph_mode, decode_query_len)
+        # Used for FULL CUDA graphs. PW CUDA graphs do not use these.
         self.hidden_states: torch.Tensor | None = None
         self.aux_hidden_states: list[torch.Tensor] = []
         self.use_aux_hidden_state_outputs = False
@@ -326,6 +327,12 @@ def forward_fn(cg_mode: CUDAGraphMode) -> None:
                         **model_state.prepare_dummy_inputs(num_reqs, num_tokens),
                     }
                     model_output = model(**model_inputs)
+
+                    if cg_mode == CUDAGraphMode.PIECEWISE:
+                        # PW CUDA graph internally handles the model outputs.
+                        # No need to keep track of the hidden states.
+                        return None
+
                     if self.use_aux_hidden_state_outputs:
                         hidden_states, aux_hidden_states = model_output
                     else: