diff --git a/qa/L0_pytorch_unittest/test.sh b/qa/L0_pytorch_unittest/test.sh
index b3b6ccacac7..457fb5b798d 100644
--- a/qa/L0_pytorch_unittest/test.sh
+++ b/qa/L0_pytorch_unittest/test.sh
@@ -31,6 +31,7 @@ pip3 install pytest==8.2.1 || error_exit "Failed to install pytest"
 
 python3 -m pytest --tb=auto --junitxml=$XML_LOG_DIR/pytest_test_optional_flash_attn_import.xml $TE_PATH/tests/pytorch/test_optional_flash_attn_import.py || test_fail "test_optional_flash_attn_import.py"
 NVTE_GROUPED_LINEAR_SINGLE_PARAM=1 python3 -m pytest --tb=auto --junitxml=$XML_LOG_DIR/pytest_test_sanity.xml $TE_PATH/tests/pytorch/test_sanity.py || test_fail "test_sanity.py"
+python3 -m pytest --tb=auto --junitxml=$XML_LOG_DIR/pytest_test_gemm_workspace.xml $TE_PATH/tests/pytorch/test_gemm_workspace.py || test_fail "test_gemm_workspace.py"
 python3 -m pytest --tb=auto --junitxml=$XML_LOG_DIR/pytest_test_recipe.xml $TE_PATH/tests/pytorch/test_recipe.py || test_fail "test_recipe.py"
 python3 -m pytest --tb=auto --junitxml=$XML_LOG_DIR/pytest_test_custom_recipe.xml $TE_PATH/tests/pytorch/test_custom_recipe.py || test_fail "test_custom_recipe.py"
 python3 -m pytest --tb=auto --junitxml=$XML_LOG_DIR/pytest_test_deferred_init.xml $TE_PATH/tests/pytorch/test_deferred_init.py || test_fail "test_deferred_init.py"
diff --git a/tests/pytorch/test_gemm_workspace.py b/tests/pytorch/test_gemm_workspace.py
new file mode 100644
index 00000000000..17bceddaa90
--- /dev/null
+++ b/tests/pytorch/test_gemm_workspace.py
@@ -0,0 +1,269 @@
+# Copyright (c) 2022-2026, NVIDIA CORPORATION & AFFILIATES. All rights reserved.
+#
+# See LICENSE for license information.
+
+"""cuBLAS workspace ownership and numerical checks for independent CUDA streams."""
+
+import gc
+import weakref
+
+import pytest
+import torch
+from transformer_engine.pytorch.cpp_extensions import gemm
+
+from transformer_engine.pytorch.cpp_extensions.gemm import (
+    general_gemm,
+    general_grouped_gemm,
+    get_cublas_workspace,
+)
+
+
+@pytest.mark.parametrize("ub,grouped_gemm", [(False, False), (True, False), (False, True)])
+def test_live_workspaces_do_not_alias(ub, grouped_gemm):
+    """Live invocations own distinct scratch, even on the same capture stream."""
+    device = torch.cuda.current_device()
+    streams = [torch.cuda.Stream(), torch.cuda.Stream()]
+    workspaces = []
+    for stream in streams:
+        with torch.cuda.stream(stream):
+            first = get_cublas_workspace(device, ub, grouped_gemm)
+            workspaces.append(first if grouped_gemm else [first])
+            second = get_cublas_workspace(device, ub, grouped_gemm)
+            workspaces.append(second if grouped_gemm else [second])
+    assert len(workspaces[0]) == len(workspaces[1])
+    pointers = [w.data_ptr() for invocation in workspaces for w in invocation]
+    assert len(pointers) == len(set(pointers))
+
+
+@pytest.mark.parametrize("ub,grouped_gemm", [(False, False), (True, False), (False, True)])
+def test_temporary_streams_release_workspaces(ub, grouped_gemm):
+    """Scratch is returned to the allocator when the invocation goes out of scope."""
+    device = torch.cuda.current_device()
+    torch.cuda.synchronize()
+    gc.collect()
+    allocated = torch.cuda.memory_allocated()
+    for _ in range(8):
+        stream = torch.cuda.Stream()
+        with torch.cuda.stream(stream):
+            workspace = get_cublas_workspace(device, ub, grouped_gemm)
+            tensors = workspace if grouped_gemm else [workspace]
+            refs = [weakref.ref(tensor) for tensor in tensors]
+            for tensor in tensors:
+                tensor.fill_(1)
+            del tensor, tensors, workspace
+        stream.synchronize()
+        del stream
+        assert all(ref() is None for ref in refs)
+    assert torch.cuda.memory_allocated() == allocated
+
+
+@pytest.mark.parametrize("ub,grouped_gemm", [(False, False), (True, False), (False, True)])
+def test_graph_workspaces_survive_replay_and_are_released(ub, grouped_gemm):
+    """Different captures on one stream must not borrow an earlier graph's scratch."""
+    device = torch.cuda.current_device()
+    capture_stream = torch.cuda.Stream()
+    replay_streams = [torch.cuda.Stream(), torch.cuda.Stream()]
+    # Initialize the allocator/library state outside the graph, on a different stream.
+    workspace = get_cublas_workspace(device, ub, grouped_gemm)
+    count = len(workspace) if grouped_gemm else 1
+    del workspace
+    outputs = [torch.empty(count, dtype=torch.uint8, device=device) for _ in range(2)]
+    torch.cuda.synchronize()
+    torch.cuda.empty_cache()
+    reserved = torch.cuda.memory_reserved()
+    allocated = torch.cuda.memory_allocated()
+    for _ in range(3):
+        graphs, pointers = [], []
+        for value, output in enumerate(outputs, start=1):
+            graph = torch.cuda.CUDAGraph()
+            with torch.cuda.graph(graph, stream=capture_stream):
+                workspace = get_cublas_workspace(device, ub, grouped_gemm)
+                tensors = workspace if grouped_gemm else [workspace]
+                pointers.append({tensor.data_ptr() for tensor in tensors})
+                refs = [weakref.ref(tensor) for tensor in tensors]
+                for index, tensor in enumerate(tensors):
+                    tensor.fill_(value)
+                    output[index : index + 1].copy_(tensor[:1])
+                del tensor, tensors, workspace
+            assert all(ref() is None for ref in refs)
+            graphs.append(graph)
+        assert pointers[0].isdisjoint(pointers[1])
+        for _ in range(8):
+            for graph, stream in zip(graphs, replay_streams):
+                with torch.cuda.stream(stream):
+                    graph.replay()
+        torch.cuda.synchronize()
+        for value, output in enumerate(outputs, start=1):
+            torch.testing.assert_close(output, torch.full_like(output, value), rtol=0, atol=0)
+        for graph in graphs:
+            graph.reset()
+        del graph, graphs
+        gc.collect()
+        torch.cuda.empty_cache()
+        assert torch.cuda.memory_allocated() == allocated
+        assert torch.cuda.memory_reserved() == reserved
+
+
+@pytest.mark.parametrize("dtype", [torch.float32, torch.bfloat16])
+@pytest.mark.parametrize("execution", ["eager", "graph"])
+@pytest.mark.parametrize("layout", ["NT", "NN"])
+def test_concurrent_gemms_match_exact_reference(dtype, execution, layout):
+    """Concurrent router wgrad and dgrad must own scratch in eager and graph execution."""
+    streams = [torch.cuda.Stream(), torch.cuda.Stream()]
+    hidden, experts = 4096, 128
+    if layout == "NT":
+        # wgrad = grad_output.T @ input; reduce over tokens.
+        tokens = reduction = 16384
+        input_shape, output_shape = (tokens, hidden), (experts, hidden)
+    else:
+        # dgrad = grad_output @ weight; match the router's NN [8192, 128, 4096] GEMM.
+        tokens, reduction = 8192, experts
+        input_shape, output_shape = (experts, hidden), (tokens, hidden)
+    inputs = [torch.full(input_shape, value, dtype=dtype, device="cuda") for value in (1.0, 2.0)]
+    gradients = [
+        torch.full((tokens, experts), value, dtype=dtype, device="cuda") for value in (1.0, 3.0)
+    ]
+    # Both operands and these analytic results are exactly representable in either dtype.
+    expected = [reduction, reduction * 6]
+    ready = torch.cuda.Event()
+    ready.record()
+    for stream in streams:
+        stream.wait_event(ready)
+
+    outputs, graphs, checks = [], [], []
+    if execution == "graph":
+        capture_stream = torch.cuda.Stream()
+        capture_stream.wait_event(ready)
+        for inp, grad in zip(inputs, gradients):
+            with torch.cuda.stream(capture_stream):
+                general_gemm(inp, grad, dtype, layout=layout, grad=True)
+            capture_stream.synchronize()
+            # Separate private pools, captured on one stream and replayed on two others.
+            graph = torch.cuda.CUDAGraph()
+            with torch.cuda.graph(graph, stream=capture_stream):
+                out, *_ = general_gemm(inp, grad, dtype, layout=layout, grad=True)
+            assert out.shape == output_shape
+            assert out.dtype == dtype
+            graphs.append(graph)
+            outputs.append(out)
+            del out
+    for _ in range(8):
+        for index, (stream, inp, grad) in enumerate(zip(streams, inputs, gradients)):
+            with torch.cuda.stream(stream):
+                if execution == "graph":
+                    graphs[index].replay()
+                else:
+                    out, *_ = general_gemm(inp, grad, dtype, layout=layout, grad=True)
+                    assert out.shape == output_shape
+                    assert out.dtype == dtype
+                    outputs.append(out)
+                    del out
+        if execution == "eager":
+            # Submit both GEMMs before the checks. Keep only this pair of large NN outputs.
+            for index, (stream, out) in enumerate(zip(streams, outputs)):
+                with torch.cuda.stream(stream):
+                    checks.append(torch.all(out == expected[index]))
+            del out
+            outputs.clear()
+    for stream in streams:
+        stream.synchronize()
+    for index, out in enumerate(outputs):
+        checks.append(torch.all(out == expected[index]))
+    torch.testing.assert_close(
+        torch.stack(checks),
+        torch.ones(len(checks), dtype=torch.bool, device="cuda"),
+        rtol=0,
+        atol=0,
+    )
+
+
+@pytest.mark.parametrize("dtype", [torch.float32, torch.bfloat16])
+@pytest.mark.parametrize("execution", ["eager", "graph"])
+def test_grouped_gemms_match_exact_reference(dtype, execution):
+    """Internal GEMM streams must join the caller before its scratch is recycled."""
+    reduction, hidden, experts, count = 8192, 512, 64, 4
+    inputs = [torch.ones((reduction, hidden), dtype=dtype, device="cuda") for _ in range(count)]
+    gradients = [
+        torch.full((reduction, experts), index + 1, dtype=dtype, device="cuda")
+        for index in range(count)
+    ]
+    outputs = [torch.empty((experts, hidden), dtype=dtype, device="cuda") for _ in range(count)]
+    stream = torch.cuda.Stream()
+    stream.wait_stream(torch.cuda.current_stream())
+
+    def run():
+        general_grouped_gemm(
+            inputs,
+            gradients,
+            outputs,
+            [None] * count,
+            dtype,
+            layout="NT",
+            m_splits=[experts] * count,
+            grad=True,
+        )
+
+    with torch.cuda.stream(stream):
+        run()
+    stream.synchronize()
+    if execution == "graph":
+        graph = torch.cuda.CUDAGraph()
+        with torch.cuda.graph(graph, stream=stream):
+            run()
+    for _ in range(8):
+        with torch.cuda.stream(stream):
+            if execution == "graph":
+                graph.replay()
+            else:
+                run()
+            # Recycle same-size allocations immediately after the internal-stream join.
+            scratch = get_cublas_workspace(torch.cuda.current_device(), False, True)
+            for tensor in scratch:
+                tensor.fill_(0)
+            del tensor, scratch
+    stream.synchronize()
+    for index, output in enumerate(outputs):
+        expected = torch.full_like(output, reduction * (index + 1))
+        torch.testing.assert_close(output, expected, rtol=0, atol=0)
+
+
+@pytest.mark.skipif(
+    not hasattr(torch.library, "custom_op")
+    or not hasattr(torch.compiler, "cudagraph_mark_step_begin"),
+    reason="Custom operators and CUDA graph trees require newer PyTorch",
+)
+def test_compiled_gemm_graph_generations(monkeypatch):
+    """An opaque GEMM's scratch must remain valid when graph trees are rerecorded."""
+    original = gemm.get_cublas_workspace
+    captured_workspaces = []
+
+    def allocate(*args, **kwargs):
+        workspace = original(*args, **kwargs)
+        if torch.cuda.is_current_stream_capturing():
+            captured_workspaces.append(weakref.ref(workspace))
+        return workspace
+
+    monkeypatch.setattr(gemm, "get_cublas_workspace", allocate)
+
+    @torch.library.custom_op("te_workspace_test::gemm", mutates_args=())
+    def run(inp: torch.Tensor, grad: torch.Tensor) -> torch.Tensor:
+        return general_gemm(inp, grad, inp.dtype, layout="NT", grad=True)[0]
+
+    @run.register_fake
+    def fake(inp, grad):
+        return inp.new_empty((grad.shape[1], inp.shape[1]))
+
+    torch._dynamo.reset()
+    compiled = torch.compile(run, fullgraph=True, mode="reduce-overhead", dynamic=False)
+    for reduction, value in [(8192, 1), (16384, 2), (8192, 3)]:
+        inp = torch.full((reduction, 512), value, dtype=torch.bfloat16, device="cuda")
+        grad = torch.ones((reduction, 64), dtype=torch.bfloat16, device="cuda")
+        for _ in range(3):
+            torch.compiler.cudagraph_mark_step_begin()
+            out = compiled(inp, grad)
+            torch.testing.assert_close(out, torch.full_like(out, reduction * value), rtol=0, atol=0)
+            del out
+    assert len(captured_workspaces) >= 2, "Expected CUDA graph captures for different shapes"
+    assert all(ref() is None for ref in captured_workspaces)
+    del compiled
+    torch._dynamo.reset()
diff --git a/tests/pytorch/test_torch_compile.py b/tests/pytorch/test_torch_compile.py
index eae6f0a8a24..e0e28f9b882 100644
--- a/tests/pytorch/test_torch_compile.py
+++ b/tests/pytorch/test_torch_compile.py
@@ -1892,6 +1892,49 @@ def test_to_tensor_spec_quantized(factory, shape):
 # ---------------------------------------------------------------------------
 
 
+@pytest.mark.skipif(not _opaque_available, reason="torch opaque object API not available")
+def test_te_linear_cublas_workspace_graph_generations(monkeypatch):
+    """Compiled forward/backward scratch follows graph generations, not a Python cache."""
+    import weakref
+    from transformer_engine.pytorch.cpp_extensions import gemm
+
+    original = gemm.get_cublas_workspace
+    captured_workspaces = []
+
+    def allocate(*args, **kwargs):
+        workspace = original(*args, **kwargs)
+        if torch.cuda.is_current_stream_capturing():
+            captured_workspaces.append(weakref.ref(workspace))
+        return workspace
+
+    monkeypatch.setattr(gemm, "get_cublas_workspace", allocate)
+    model = te.Linear(4096, 128, bias=False, params_dtype=torch.bfloat16, device="cuda")
+    with torch.no_grad():
+        model.weight.fill_(1)
+    torch._dynamo.reset()
+    compiled = torch.compile(model, fullgraph=True, mode="reduce-overhead", dynamic=False)
+    with _assert_no_cudagraph_skips(True):
+        for batch, value in [(128, 1), (256, 2), (128, 3)]:
+            for _ in range(3):
+                torch.compiler.cudagraph_mark_step_begin()
+                model.zero_grad(set_to_none=True)
+                inp = torch.full(
+                    (batch, 4096), value, dtype=torch.bfloat16, device="cuda", requires_grad=True
+                )
+                out = compiled(inp)
+                out.sum().backward()
+                torch.testing.assert_close(out, torch.full_like(out, 4096 * value), rtol=0, atol=0)
+                torch.testing.assert_close(inp.grad, torch.full_like(inp, 128), rtol=0, atol=0)
+                torch.testing.assert_close(
+                    model.weight.grad, torch.full_like(model.weight, batch * value), rtol=0, atol=0
+                )
+                del out, inp
+    assert len(captured_workspaces) >= 2, "Expected CUDA graph captures for different shapes"
+    assert all(ref() is None for ref in captured_workspaces)
+    del compiled
+    torch._dynamo.reset()
+
+
 @pytest.mark.skipif(not _opaque_available, reason="torch opaque object API not available")
 @pytest.mark.parametrize("compile_mode", _compile_modes)
 @pytest.mark.parametrize(
diff --git a/transformer_engine/pytorch/cpp_extensions/gemm.py b/transformer_engine/pytorch/cpp_extensions/gemm.py
index 6939847c8dc..e7a696cfa4b 100644
--- a/transformer_engine/pytorch/cpp_extensions/gemm.py
+++ b/transformer_engine/pytorch/cpp_extensions/gemm.py
@@ -48,9 +48,14 @@ def get_cublas_workspace_size_bytes() -> None:
     return 4_194_304
 
 
-@functools.lru_cache(maxsize=None)
 def get_cublas_workspace(device: int, ub: bool, grouped_gemm: bool) -> torch.Tensor:
-    """Returns workspace for cublas GEMM."""
+    """Allocate cuBLAS scratch for one invocation on the current CUDA stream.
+
+    The caching allocator safely reuses eager allocations on their stream. During
+    capture, the graph's private pool owns the allocation until the graph is
+    destroyed. Keeping the tensor in a Python cache would bypass that ownership
+    on later captures, including graphs replayed on different streams.
+    """
     assert not (ub and grouped_gemm), "UB is unsupported for grouped GEMM."
 
     if ub:
diff --git a/transformer_engine/pytorch/module/linear.py b/transformer_engine/pytorch/module/linear.py
index 7f00e19644a..4e4c8d138d4 100644
--- a/transformer_engine/pytorch/module/linear.py
+++ b/transformer_engine/pytorch/module/linear.py
@@ -72,7 +72,6 @@
 )
 from ..cpp_extensions import (
     general_gemm,
-    get_cublas_workspace,
 )
 from ..constants import FP8BwdTensorIdx, FP8FwdTensorIdx, GemmParallelModes, dist_group_type
 from ..graph import is_graph_capturing
@@ -2302,40 +2301,6 @@ def reset_parameters(self, defer_init=False):
                     elif self.parallel_mode == "column":
                         set_tensor_model_parallel_attributes(getattr(self, bias), True, 0, 1)
 
-            self._prealloc_cublas_workspace()
-
-    def _apply(self, *args, **kwargs):
-        out = super()._apply(*args, **kwargs)
-        # Params may have just landed on CUDA (.to()/.cuda()/to_empty()).
-        self._prealloc_cublas_workspace()
-        return out
-
-    def _prealloc_cublas_workspace(self) -> None:
-        """Allocate the process-global cuBLAS workspaces before the first GEMM:
-        under torch.compile it can run inside a cudagraph pool, and a workspace
-        first allocated there would not survive across graph generations."""
-        # pylint: disable=import-outside-toplevel
-        from torch._guards import detect_fake_mode
-        from torch._subclasses.fake_tensor import is_fake
-
-        weight = getattr(self, self.weight_names[0], None)
-        if weight is None or weight.device.type != "cuda":
-            return
-        if is_fake(weight) or detect_fake_mode():
-            return
-        get_cublas_workspace(weight.device.index, False, False)
-        if self.ub_name is not None and any(
-            (
-                self.ub_overlap_rs_fprop,
-                self.ub_overlap_ag_dgrad,
-                self.ub_overlap_ag_fprop,
-                self.ub_overlap_rs_dgrad,
-                self.ub_bulk_dgrad,
-                self.ub_bulk_wgrad,
-            )
-        ):
-            get_cublas_workspace(weight.device.index, True, False)
-
     def forward(
         self,
         inp: torch.Tensor,