diff --git a/components/src/dynamo/vllm/multimodal_handlers/processor_handler.py b/components/src/dynamo/vllm/multimodal_handlers/processor_handler.py
index eb84c20190..1ee10d02cd 100644
--- a/components/src/dynamo/vllm/multimodal_handlers/processor_handler.py
+++ b/components/src/dynamo/vllm/multimodal_handlers/processor_handler.py
@@ -11,7 +11,7 @@
 from vllm.engine.arg_utils import AsyncEngineArgs
 from vllm.entrypoints.openai.protocol import ChatCompletionRequest, CompletionRequest
 from vllm.outputs import RequestOutput
-from vllm.transformers_utils.tokenizer import AnyTokenizer
+from vllm.tokenizers import TokenizerLike as AnyTokenizer
 
 from dynamo.runtime import Client
 
diff --git a/components/src/dynamo/vllm/multimodal_utils/chat_processor.py b/components/src/dynamo/vllm/multimodal_utils/chat_processor.py
index fe8d95dc81..3a693131d9 100644
--- a/components/src/dynamo/vllm/multimodal_utils/chat_processor.py
+++ b/components/src/dynamo/vllm/multimodal_utils/chat_processor.py
@@ -28,9 +28,22 @@
 from vllm.entrypoints.openai.serving_chat import OpenAIServingChat
 from vllm.entrypoints.openai.serving_completion import OpenAIServingCompletion
 from vllm.entrypoints.openai.serving_engine import RequestPrompt
+from vllm.entrypoints.openai.serving_models import BaseModelPath, OpenAIServingModels
 from vllm.inputs.data import TokensPrompt
 from vllm.sampling_params import SamplingParams
-from vllm.transformers_utils.tokenizer import AnyTokenizer
+from vllm.tokenizers import TokenizerLike as AnyTokenizer
+
+
+class StubEngineClient:
+    """
+    Stub EngineClient for preprocessing-only use of OpenAIServingChat/Completion.
+    Provides the minimal attributes required by OpenAIServingModels.
+    """
+
+    def __init__(self, model_config: ModelConfig):
+        self.model_config = model_config
+        self.input_processor = None
+        self.io_processor = None
 
 
 @runtime_checkable
@@ -120,12 +133,19 @@ class ChatProcessor:
     def __init__(self, tokenizer: AnyTokenizer, model_config: ModelConfig):
         self.tokenizer = tokenizer
         self.model_config = model_config
+        # Create stub engine client and models for preprocessing-only usage
+        stub_engine = StubEngineClient(model_config)
+        serving_models = OpenAIServingModels(
+            engine_client=stub_engine,
+            base_model_paths=[
+                BaseModelPath(name=model_config.model, model_path=model_config.model)
+            ],
+        )
         self.openai_serving = OpenAIServingChat(
-            engine_client=None,
-            model_config=model_config,
-            models=None,
-            request_logger=None,
+            engine_client=stub_engine,
+            models=serving_models,
             response_role="assistant",
+            request_logger=None,
             chat_template=None,
             chat_template_content_format="auto",
         )
@@ -186,7 +206,6 @@ async def stream_response(
                 conversation,
                 self.tokenizer,
                 request_metadata,
-                enable_force_include_usage=False,
             ):
                 if raw_response.startswith("data: [DONE]"):
                     yield raw_response
@@ -220,7 +239,6 @@ async def stream_response(
                 conversation,
                 self.tokenizer,
                 request_metadata,
-                enable_force_include_usage=False,
             ):
                 if raw_response.startswith("data: [DONE]"):
                     break
@@ -267,10 +285,17 @@ class CompletionsProcessor:
     def __init__(self, tokenizer: AnyTokenizer, model_config: ModelConfig):
         self.tokenizer = tokenizer
         self.model_config = model_config
+        # Create stub engine client and models for preprocessing-only usage
+        stub_engine = StubEngineClient(model_config)
+        serving_models = OpenAIServingModels(
+            engine_client=stub_engine,
+            base_model_paths=[
+                BaseModelPath(name=model_config.model, model_path=model_config.model)
+            ],
+        )
         self.openai_serving = OpenAIServingCompletion(
-            engine_client=None,
-            model_config=model_config,
-            models=None,
+            engine_client=stub_engine,
+            models=serving_models,
             request_logger=None,
         )
 
diff --git a/components/src/dynamo/vllm/multimodal_utils/protocol.py b/components/src/dynamo/vllm/multimodal_utils/protocol.py
index ef8d2bea91..c05f6cdeeb 100644
--- a/components/src/dynamo/vllm/multimodal_utils/protocol.py
+++ b/components/src/dynamo/vllm/multimodal_utils/protocol.py
@@ -26,7 +26,7 @@
 from vllm.multimodal.inputs import MultiModalUUIDDict  # noqa: F401
 from vllm.outputs import CompletionOutput
 from vllm.sampling_params import SamplingParams
-from vllm.sequence import RequestMetrics
+from vllm.v1.metrics.stats import RequestStateStats
 
 import dynamo.nixl_connect as connect
 
@@ -156,7 +156,7 @@ class MyRequestOutput(BaseModel):
     https://github.com/vllm-project/vllm/blob/a4c402a756fa3213caf9d2cde0e4ceb2d57727f2/vllm/outputs.py#L85
 
     This class is used to serialize the RequestOutput and any recursively defined types
-    We can do this because PromptLogprobs, RequestMetrics, and CompletionOutput are all serializable dataclasses
+    We can do this because PromptLogprobs, RequestStateStats, and CompletionOutput are all serializable dataclasses
     """
 
     model_config = ConfigDict(arbitrary_types_allowed=True)
@@ -167,7 +167,7 @@ class MyRequestOutput(BaseModel):
     prompt_logprobs: Optional[PromptLogprobs] = None
     outputs: List[CompletionOutput]
     finished: bool
-    metrics: Optional[RequestMetrics] = None
+    metrics: Optional[RequestStateStats] = None
     kv_transfer_params: Optional[dict[str, Any]] = None
     # lora_request: Optional[LoRARequest] = None
     # encoder_prompt: Optional[str] = None
diff --git a/examples/backends/vllm/launch/agg_multimodal_epd.sh b/examples/backends/vllm/launch/agg_multimodal_epd.sh
index a94ab3c1f4..e905409325 100755
--- a/examples/backends/vllm/launch/agg_multimodal_epd.sh
+++ b/examples/backends/vllm/launch/agg_multimodal_epd.sh
@@ -80,7 +80,7 @@ python -m dynamo.vllm --multimodal-processor --enable-multimodal --model $MODEL_
 
 # run E/P/D workers
 CUDA_VISIBLE_DEVICES=0 python -m dynamo.vllm --multimodal-encode-worker --enable-multimodal --model $MODEL_NAME &
-CUDA_VISIBLE_DEVICES=1 python -m dynamo.vllm --multimodal-worker --enable-multimodal --model $MODEL_NAME $EXTRA_ARGS &
+CUDA_VISIBLE_DEVICES=0 python -m dynamo.vllm --multimodal-worker --enable-multimodal --enable-mm-embeds --model $MODEL_NAME $EXTRA_ARGS &
 
 # Wait for all background processes to complete
 wait
diff --git a/examples/backends/vllm/launch/disagg_multimodal_epd.sh b/examples/backends/vllm/launch/disagg_multimodal_epd.sh
index 75b30abb8e..0e253c12be 100755
--- a/examples/backends/vllm/launch/disagg_multimodal_epd.sh
+++ b/examples/backends/vllm/launch/disagg_multimodal_epd.sh
@@ -81,23 +81,20 @@ python -m dynamo.vllm --multimodal-processor --enable-multimodal --model $MODEL_
 
 # Configure GPU memory optimization for specific models
 EXTRA_ARGS=""
-if [[ "$MODEL_NAME" == "Qwen/Qwen2.5-VL-7B-Instruct" ]]; then
-    EXTRA_ARGS="--gpu-memory-utilization 0.85 --max-model-len 2048"
-fi
 
 # Start encode worker
-echo "Starting encode worker on GPU 1..."
-VLLM_NIXL_SIDE_CHANNEL_PORT=20097 CUDA_VISIBLE_DEVICES=1 python -m dynamo.vllm --multimodal-encode-worker --enable-multimodal --model $MODEL_NAME  $EXTRA_ARGS --kv-events-config '{"publisher":"zmq","topic":"kv-events","endpoint":"tcp://*:20080"}' &
+echo "Starting encode worker on GPU 0..."
+VLLM_NIXL_SIDE_CHANNEL_PORT=20097 CUDA_VISIBLE_DEVICES=0 python -m dynamo.vllm --multimodal-encode-worker --enable-multimodal --model $MODEL_NAME  $EXTRA_ARGS --kv-events-config '{"publisher":"zmq","topic":"kv-events","endpoint":"tcp://*:20080"}' &
 
 # Start prefill worker
-echo "Starting prefill worker on GPU 2..."
+echo "Starting prefill worker on GPU 1..."
 VLLM_NIXL_SIDE_CHANNEL_PORT=20098 \
-CUDA_VISIBLE_DEVICES=2 python -m dynamo.vllm --multimodal-worker --is-prefill-worker --enable-multimodal --model $MODEL_NAME $EXTRA_ARGS --kv-events-config '{"publisher":"zmq","topic":"kv-events","endpoint":"tcp://*:20081"}' &
+CUDA_VISIBLE_DEVICES=1 python -m dynamo.vllm --multimodal-worker --is-prefill-worker --enable-multimodal --enable-mm-embeds --model $MODEL_NAME $EXTRA_ARGS --kv-events-config '{"publisher":"zmq","topic":"kv-events","endpoint":"tcp://*:20081"}' &
 
 # Start decode worker
-echo "Starting decode worker on GPU 3..."
+echo "Starting decode worker on GPU 2..."
 VLLM_NIXL_SIDE_CHANNEL_PORT=20099 \
-CUDA_VISIBLE_DEVICES=3 python -m dynamo.vllm --multimodal-decode-worker --enable-multimodal --model $MODEL_NAME $EXTRA_ARGS --kv-events-config '{"publisher":"zmq","topic":"kv-events","endpoint":"tcp://*:20082"}' &
+CUDA_VISIBLE_DEVICES=2 python -m dynamo.vllm --multimodal-decode-worker --enable-multimodal --model $MODEL_NAME $EXTRA_ARGS --kv-events-config '{"publisher":"zmq","topic":"kv-events","endpoint":"tcp://*:20082"}' &
 
 echo "=================================================="
 echo "All components started. Waiting for initialization..."
diff --git a/examples/multimodal/components/audio_encode_worker.py b/examples/multimodal/components/audio_encode_worker.py
index 8917543ef8..4384ec2e9c 100644
--- a/examples/multimodal/components/audio_encode_worker.py
+++ b/examples/multimodal/components/audio_encode_worker.py
@@ -25,7 +25,7 @@
 import uvloop
 from transformers import AutoProcessor, Qwen2AudioForConditionalGeneration
 from vllm.engine.arg_utils import AsyncEngineArgs
-from vllm.utils import FlexibleArgumentParser
+from vllm.utils.argparse_utils import FlexibleArgumentParser
 
 import dynamo.nixl_connect as connect
 from dynamo.runtime import Client, DistributedRuntime, dynamo_worker
@@ -201,7 +201,6 @@ async def async_init(self, runtime: DistributedRuntime):
         # Create and initialize a dynamo connector for this worker.
         # We'll needs this to move data between this worker and remote workers efficiently.
         self._connector = connect.Connector()
-        await self._connector.initialize()
 
         logger.info("Startup completed.")
 
diff --git a/examples/multimodal/components/encode_worker.py b/examples/multimodal/components/encode_worker.py
index 05af900e98..282e785037 100644
--- a/examples/multimodal/components/encode_worker.py
+++ b/examples/multimodal/components/encode_worker.py
@@ -12,7 +12,7 @@
 import uvloop
 from transformers import AutoImageProcessor
 from vllm.engine.arg_utils import AsyncEngineArgs
-from vllm.utils import FlexibleArgumentParser
+from vllm.utils.argparse_utils import FlexibleArgumentParser
 
 import dynamo.nixl_connect as connect
 from dynamo.runtime import Client, DistributedRuntime, dynamo_worker
diff --git a/examples/multimodal/components/processor.py b/examples/multimodal/components/processor.py
index 7bc1be7b25..ede65cc975 100644
--- a/examples/multimodal/components/processor.py
+++ b/examples/multimodal/components/processor.py
@@ -17,8 +17,8 @@
 from vllm.engine.arg_utils import AsyncEngineArgs
 from vllm.entrypoints.openai.protocol import ChatCompletionRequest, CompletionRequest
 from vllm.outputs import RequestOutput
-from vllm.transformers_utils.tokenizer import AnyTokenizer
-from vllm.utils import FlexibleArgumentParser
+from vllm.tokenizers import TokenizerLike as AnyTokenizer
+from vllm.utils.argparse_utils import FlexibleArgumentParser
 
 from dynamo.llm import ModelInput, ModelType, register_llm
 from dynamo.runtime import Client, DistributedRuntime, dynamo_worker
diff --git a/examples/multimodal/components/publisher.py b/examples/multimodal/components/publisher.py
index c1937fd6c6..19fe18ccff 100644
--- a/examples/multimodal/components/publisher.py
+++ b/examples/multimodal/components/publisher.py
@@ -38,6 +38,8 @@ def record(
         scheduler_stats: Optional[SchedulerStats],
         iteration_stats: Optional[IterationStats],
         engine_idx: int = 0,
+        *args,
+        **kwargs,
     ):
         pass
 
@@ -74,6 +76,8 @@ def record(
         scheduler_stats: SchedulerStats,
         iteration_stats: Optional[IterationStats],
         engine_idx: int = 0,
+        *args,
+        **kwargs,
     ):
         # request_total_slots and kv_total_blocks are properties of model + gpu
         # we should only publish them once, not every metric update
diff --git a/examples/multimodal/components/video_encode_worker.py b/examples/multimodal/components/video_encode_worker.py
index 5453c9ab16..9602c6ed39 100644
--- a/examples/multimodal/components/video_encode_worker.py
+++ b/examples/multimodal/components/video_encode_worker.py
@@ -16,7 +16,7 @@
 import torch
 import uvloop
 from vllm.engine.arg_utils import AsyncEngineArgs
-from vllm.utils import FlexibleArgumentParser
+from vllm.utils.argparse_utils import FlexibleArgumentParser
 
 import dynamo.nixl_connect as connect
 from dynamo.runtime import Client, DistributedRuntime, dynamo_worker
diff --git a/examples/multimodal/components/worker.py b/examples/multimodal/components/worker.py
index 4e3b7ba43e..d5efa22a85 100644
--- a/examples/multimodal/components/worker.py
+++ b/examples/multimodal/components/worker.py
@@ -15,7 +15,7 @@
 from vllm.distributed.kv_events import ZmqEventPublisher
 from vllm.inputs.data import TokensPrompt
 from vllm.usage.usage_lib import UsageContext
-from vllm.utils import FlexibleArgumentParser
+from vllm.utils.argparse_utils import FlexibleArgumentParser
 from vllm.v1.engine.async_llm import AsyncLLM
 
 import dynamo.nixl_connect as connect
@@ -251,7 +251,6 @@ async def async_init(self, runtime: DistributedRuntime):
         # We'll needs this to move data between this worker and remote workers efficiently.
         parsed_namespace, _, _ = parse_endpoint(self.endpoint)
         self._connector = connect.Connector()
-        await self._connector.initialize()
 
         self.image_loader = ImageLoader()
 
diff --git a/examples/multimodal/launch/audio_agg.sh b/examples/multimodal/launch/audio_agg.sh
index 3f1af408b1..0ea01066f0 100755
--- a/examples/multimodal/launch/audio_agg.sh
+++ b/examples/multimodal/launch/audio_agg.sh
@@ -91,7 +91,7 @@ python3 components/processor.py --model $MODEL_NAME --prompt-template "$PROMPT_T
 
 # run E/P/D workers
 CUDA_VISIBLE_DEVICES=0 python3 components/audio_encode_worker.py --model $MODEL_NAME &
-VLLM_NIXL_SIDE_CHANNEL_PORT=20097 CUDA_VISIBLE_DEVICES=1 python3 components/worker.py --model $MODEL_NAME --worker-type prefill &
+VLLM_NIXL_SIDE_CHANNEL_PORT=20097 CUDA_VISIBLE_DEVICES=0 python3 components/worker.py --model $MODEL_NAME --worker-type prefill &
 
 # Wait for all background processes to complete
 wait
diff --git a/examples/multimodal/utils/args.py b/examples/multimodal/utils/args.py
index 3fe10ee0b1..df6ce698da 100644
--- a/examples/multimodal/utils/args.py
+++ b/examples/multimodal/utils/args.py
@@ -159,6 +159,8 @@ def overwrite_args(config):
         "enable_prefix_caching": True,
         # KV routing relies on logging KV metrics
         "disable_log_stats": False,
+        # Enable multimodal embeddings input
+        "enable_mm_embeds": True,
         # Always setting up kv transfer for disagg
         "kv_transfer_config": KVTransferConfig(
             kv_connector="NixlConnector", kv_role="kv_both"
diff --git a/examples/multimodal/utils/chat_processor.py b/examples/multimodal/utils/chat_processor.py
index fe8d95dc81..3a693131d9 100644
--- a/examples/multimodal/utils/chat_processor.py
+++ b/examples/multimodal/utils/chat_processor.py
@@ -28,9 +28,22 @@
 from vllm.entrypoints.openai.serving_chat import OpenAIServingChat
 from vllm.entrypoints.openai.serving_completion import OpenAIServingCompletion
 from vllm.entrypoints.openai.serving_engine import RequestPrompt
+from vllm.entrypoints.openai.serving_models import BaseModelPath, OpenAIServingModels
 from vllm.inputs.data import TokensPrompt
 from vllm.sampling_params import SamplingParams
-from vllm.transformers_utils.tokenizer import AnyTokenizer
+from vllm.tokenizers import TokenizerLike as AnyTokenizer
+
+
+class StubEngineClient:
+    """
+    Stub EngineClient for preprocessing-only use of OpenAIServingChat/Completion.
+    Provides the minimal attributes required by OpenAIServingModels.
+    """
+
+    def __init__(self, model_config: ModelConfig):
+        self.model_config = model_config
+        self.input_processor = None
+        self.io_processor = None
 
 
 @runtime_checkable
@@ -120,12 +133,19 @@ class ChatProcessor:
     def __init__(self, tokenizer: AnyTokenizer, model_config: ModelConfig):
         self.tokenizer = tokenizer
         self.model_config = model_config
+        # Create stub engine client and models for preprocessing-only usage
+        stub_engine = StubEngineClient(model_config)
+        serving_models = OpenAIServingModels(
+            engine_client=stub_engine,
+            base_model_paths=[
+                BaseModelPath(name=model_config.model, model_path=model_config.model)
+            ],
+        )
         self.openai_serving = OpenAIServingChat(
-            engine_client=None,
-            model_config=model_config,
-            models=None,
-            request_logger=None,
+            engine_client=stub_engine,
+            models=serving_models,
             response_role="assistant",
+            request_logger=None,
             chat_template=None,
             chat_template_content_format="auto",
         )
@@ -186,7 +206,6 @@ async def stream_response(
                 conversation,
                 self.tokenizer,
                 request_metadata,
-                enable_force_include_usage=False,
             ):
                 if raw_response.startswith("data: [DONE]"):
                     yield raw_response
@@ -220,7 +239,6 @@ async def stream_response(
                 conversation,
                 self.tokenizer,
                 request_metadata,
-                enable_force_include_usage=False,
             ):
                 if raw_response.startswith("data: [DONE]"):
                     break
@@ -267,10 +285,17 @@ class CompletionsProcessor:
     def __init__(self, tokenizer: AnyTokenizer, model_config: ModelConfig):
         self.tokenizer = tokenizer
         self.model_config = model_config
+        # Create stub engine client and models for preprocessing-only usage
+        stub_engine = StubEngineClient(model_config)
+        serving_models = OpenAIServingModels(
+            engine_client=stub_engine,
+            base_model_paths=[
+                BaseModelPath(name=model_config.model, model_path=model_config.model)
+            ],
+        )
         self.openai_serving = OpenAIServingCompletion(
-            engine_client=None,
-            model_config=model_config,
-            models=None,
+            engine_client=stub_engine,
+            models=serving_models,
             request_logger=None,
         )
 
diff --git a/examples/multimodal/utils/protocol.py b/examples/multimodal/utils/protocol.py
index c31dd82799..a724b8720d 100644
--- a/examples/multimodal/utils/protocol.py
+++ b/examples/multimodal/utils/protocol.py
@@ -26,7 +26,7 @@
 from vllm.multimodal.inputs import MultiModalUUIDDict  # noqa: F401
 from vllm.outputs import CompletionOutput
 from vllm.sampling_params import SamplingParams
-from vllm.sequence import RequestMetrics
+from vllm.v1.metrics.stats import RequestStateStats
 
 import dynamo.nixl_connect as connect
 
@@ -166,7 +166,7 @@ class MyRequestOutput(BaseModel):
     https://github.com/vllm-project/vllm/blob/a4c402a756fa3213caf9d2cde0e4ceb2d57727f2/vllm/outputs.py#L85
 
     This class is used to serialize the RequestOutput and any recursively defined types
-    We can do this because PromptLogprobs, RequestMetrics, and CompletionOutput are all serializable dataclasses
+    We can do this because PromptLogprobs, RequestStateStats, and CompletionOutput are all serializable dataclasses
     """
 
     model_config = ConfigDict(arbitrary_types_allowed=True)
@@ -177,7 +177,7 @@ class MyRequestOutput(BaseModel):
     prompt_logprobs: Optional[PromptLogprobs] = None
     outputs: List[CompletionOutput]
     finished: bool
-    metrics: Optional[RequestMetrics] = None
+    metrics: Optional[RequestStateStats] = None
     kv_transfer_params: Optional[dict[str, Any]] = None
     # lora_request: Optional[LoRARequest] = None
     # encoder_prompt: Optional[str] = None