diff --git a/tests/fault_tolerance/cancellation/test_trtllm.py b/tests/fault_tolerance/cancellation/test_trtllm.py
index 609ee3918d..ecfac89d37 100644
--- a/tests/fault_tolerance/cancellation/test_trtllm.py
+++ b/tests/fault_tolerance/cancellation/test_trtllm.py
@@ -362,3 +362,94 @@ def test_request_cancellation_trtllm_prefill_cancel(
                 logger.info(
                     "Completion request cancellation during prefill phase detected successfully"
                 )
+
+
+@pytest.mark.trtllm_marker
+@pytest.mark.gpu_1
+@pytest.mark.e2e
+@pytest.mark.model(FAULT_TOLERANCE_MODEL_NAME)
+def test_request_cancellation_trtllm_kv_transfer_cancel(
+    request, runtime_services, predownload_models
+):
+    """
+    End-to-end test for request cancellation during prefill to decode KV transfer phase.
+
+    This test verifies that when a request is cancelled by the client during the KV transfer phase,
+    the system properly handles the cancellation and cleans up resources on the workers.
+    """
+
+    # Step 1: Start the frontend
+    with DynamoFrontendProcess(request) as frontend:
+        logger.info("Frontend started successfully")
+
+        # Step 2: Start the prefill worker
+        with DynamoWorkerProcess(request, mode="prefill") as prefill_worker:
+            logger.info(f"Prefill Worker PID: {prefill_worker.get_pid()}")
+
+            # Step 3: Start the decode worker
+            with DynamoWorkerProcess(request, mode="decode") as decode_worker:
+                logger.info(f"Decode Worker PID: {decode_worker.get_pid()}")
+
+                # TODO: Why wait after worker ready fixes frontend 404 / 500 flakiness?
+                time.sleep(2)
+
+                # Step 4: Test request cancellation during KV transfer phase
+                logger.info(
+                    "Testing completion request cancellation during KV transfer phase..."
+                )
+
+                # Send request with long prompt
+                cancellable_req = send_cancellable_request(
+                    "completion", use_long_prompt=True
+                )
+
+                # Poll for "Prefill Request ID" pattern in prefill worker
+                request_id, prefill_log_offset = poll_for_pattern(
+                    process=prefill_worker,
+                    pattern="Prefill Request ID: ",
+                    match_type="contains",
+                )
+
+                # Poll for decode worker entry signaling start of KV transfer phase
+                _, decode_log_offset = poll_for_pattern(
+                    process=decode_worker,
+                    pattern=f"Decode Request ID: {request_id}",
+                    poll_interval_ms=2,
+                )
+
+                # Cancel during KV transfer phase in decode worker
+                cancellable_req.cancel()
+                logger.info(
+                    f"Cancelled request ID: {request_id} at beginning of decode"
+                )
+
+                # Poll for "Aborted Request ID" in decode worker
+                _, decode_log_offset = poll_for_pattern(
+                    process=decode_worker,
+                    pattern=f"Aborted Request ID: {request_id}",
+                    log_offset=decode_log_offset,
+                )
+
+                # Verify frontend log has kill message
+                _, frontend_log_offset = poll_for_pattern(
+                    process=frontend,
+                    pattern="issued control message Kill to sender",
+                )
+
+                logger.info(
+                    "Completion request cancellation at beginning of decode detected successfully"
+                )
+
+                # Verify the workers are still functional
+                cancellable_req = send_cancellable_request("chat_completion_stream")
+                _, decode_log_offset = poll_for_pattern(
+                    process=decode_worker,
+                    pattern="Decode Request ID: ",
+                    log_offset=decode_log_offset,
+                    match_type="contains",
+                )
+                read_streaming_responses(cancellable_req, expected_count=5)
+
+                logger.info(
+                    "Workers are functional after cancellation during KV transfer"
+                )