diff --git a/python/pyproject.toml b/python/pyproject.toml
index 7ad60e4b2..ff3e4486f 100644
--- a/python/pyproject.toml
+++ b/python/pyproject.toml
@@ -98,7 +98,7 @@ srt_npu = ["sglang[runtime_common]", "outlines>=0.0.44,<=0.1.11"]
 openai = ["openai>=1.0", "tiktoken"]
 anthropic = ["anthropic>=0.20.0"]
 litellm = ["litellm>=1.0.0"]
-torch_memory_saver = ["torch_memory_saver>=0.0.4"]
+torch_memory_saver = ["torch_memory_saver>=0.0.8"]
 decord = ["decord"]
 test = [
     "accelerate",
diff --git a/python/sglang/srt/constants.py b/python/sglang/srt/constants.py
new file mode 100644
index 000000000..aa03a089b
--- /dev/null
+++ b/python/sglang/srt/constants.py
@@ -0,0 +1,3 @@
+# GPU Memory Types
+GPU_MEMORY_TYPE_KV_CACHE = "kv_cache"
+GPU_MEMORY_TYPE_WEIGHTS = "weights"
diff --git a/python/sglang/srt/disaggregation/decode.py b/python/sglang/srt/disaggregation/decode.py
index 76b06c8ba..12781784e 100644
--- a/python/sglang/srt/disaggregation/decode.py
+++ b/python/sglang/srt/disaggregation/decode.py
@@ -31,6 +31,7 @@ import numpy as np
 import torch
 from torch.distributed import ProcessGroup
 
+from sglang.srt.constants import GPU_MEMORY_TYPE_KV_CACHE
 from sglang.srt.disaggregation.base import BaseKVManager, BaseKVReceiver, KVPoll
 from sglang.srt.disaggregation.utils import (
     FAKE_BOOTSTRAP_HOST,
@@ -90,7 +91,7 @@ class DecodeReqToTokenPool:
         self.max_context_len = max_context_len
         self.device = device
         self.pre_alloc_size = pre_alloc_size
-        with memory_saver_adapter.region():
+        with memory_saver_adapter.region(tag=GPU_MEMORY_TYPE_KV_CACHE):
             self.req_to_token = torch.zeros(
                 (size + pre_alloc_size, max_context_len),
                 dtype=torch.int32,
diff --git a/python/sglang/srt/entrypoints/engine.py b/python/sglang/srt/entrypoints/engine.py
index 34f11d4d5..4c88a5289 100644
--- a/python/sglang/srt/entrypoints/engine.py
+++ b/python/sglang/srt/entrypoints/engine.py
@@ -479,17 +479,15 @@ class Engine(EngineBase):
             self.tokenizer_manager.get_weights_by_name(obj, None)
         )
 
-    def release_memory_occupation(self):
-        """Release GPU occupation temporarily."""
-        obj = ReleaseMemoryOccupationReqInput()
+    def release_memory_occupation(self, tags: Optional[List[str]] = None):
+        obj = ReleaseMemoryOccupationReqInput(tags=tags)
         loop = asyncio.get_event_loop()
         return loop.run_until_complete(
             self.tokenizer_manager.release_memory_occupation(obj, None)
         )
 
-    def resume_memory_occupation(self):
-        """Resume GPU occupation."""
-        obj = ResumeMemoryOccupationReqInput()
+    def resume_memory_occupation(self, tags: Optional[List[str]] = None):
+        obj = ResumeMemoryOccupationReqInput(tags=tags)
         loop = asyncio.get_event_loop()
         return loop.run_until_complete(
             self.tokenizer_manager.resume_memory_occupation(obj, None)
@@ -670,11 +668,9 @@ def _launch_subprocesses(
 
     scheduler_procs = []
     if server_args.dp_size == 1:
-        # Launch tensor parallel scheduler processes
         memory_saver_adapter = TorchMemorySaverAdapter.create(
             enable=server_args.enable_memory_saver
         )
-
         scheduler_pipe_readers = []
 
         nnodes_per_tp_group = max(server_args.nnodes // server_args.pp_size, 1)
@@ -710,6 +706,7 @@ def _launch_subprocesses(
                         writer,
                     ),
                 )
+
                 with memory_saver_adapter.configure_subprocess():
                     proc.start()
                 scheduler_procs.append(proc)
diff --git a/python/sglang/srt/managers/io_struct.py b/python/sglang/srt/managers/io_struct.py
index c94d81eb3..44fd9fa8e 100644
--- a/python/sglang/srt/managers/io_struct.py
+++ b/python/sglang/srt/managers/io_struct.py
@@ -812,7 +812,9 @@ class GetWeightsByNameReqOutput:
 
 @dataclass
 class ReleaseMemoryOccupationReqInput:
-    pass
+    # Optional tags to identify the memory region, which is primarily used for RL
+    # Currently we only support `weights` and `kv_cache`
+    tags: Optional[List[str]] = None
 
 
 @dataclass
@@ -822,7 +824,9 @@ class ReleaseMemoryOccupationReqOutput:
 
 @dataclass
 class ResumeMemoryOccupationReqInput:
-    pass
+    # Optional tags to identify the memory region, which is primarily used for RL
+    # Currently we only support `weights` and `kv_cache`
+    tags: Optional[List[str]] = None
 
 
 @dataclass
diff --git a/python/sglang/srt/managers/scheduler.py b/python/sglang/srt/managers/scheduler.py
index 2b0dbae5f..eae5a61fc 100644
--- a/python/sglang/srt/managers/scheduler.py
+++ b/python/sglang/srt/managers/scheduler.py
@@ -36,6 +36,7 @@ from torch.distributed import barrier
 
 from sglang.global_config import global_config
 from sglang.srt.configs.model_config import ModelConfig
+from sglang.srt.constants import GPU_MEMORY_TYPE_KV_CACHE, GPU_MEMORY_TYPE_WEIGHTS
 from sglang.srt.constrained.base_grammar_backend import (
     INVALID_GRAMMAR_OBJ,
     create_grammar_backend,
@@ -450,8 +451,6 @@ class Scheduler(
         t = threading.Thread(target=self.watchdog_thread, daemon=True)
         t.start()
         self.parent_process = psutil.Process().parent()
-
-        # Init memory saver
         self.memory_saver_adapter = TorchMemorySaverAdapter.create(
             enable=server_args.enable_memory_saver
         )
@@ -2227,23 +2226,40 @@ class Scheduler(
         return GetWeightsByNameReqOutput(parameter)
 
     def release_memory_occupation(self, recv_req: ReleaseMemoryOccupationReqInput):
-        self.memory_saver_adapter.check_validity(
-            caller_name="release_memory_occupation"
-        )
-        self.stashed_model_static_state = _export_static_state(
-            self.tp_worker.worker.model_runner.model
-        )
-        self.memory_saver_adapter.pause()
-        self.flush_cache()
+        tags = recv_req.tags
+        import subprocess
+
+        if tags is None:
+            tags = [GPU_MEMORY_TYPE_WEIGHTS, GPU_MEMORY_TYPE_KV_CACHE]
+
+        if GPU_MEMORY_TYPE_KV_CACHE in tags:
+            self.memory_saver_adapter.pause(GPU_MEMORY_TYPE_KV_CACHE)
+            self.flush_cache()
+
+        if GPU_MEMORY_TYPE_WEIGHTS in tags:
+            self.stashed_model_static_state = _export_static_state(
+                self.tp_worker.worker.model_runner.model
+            )
+            self.memory_saver_adapter.pause(GPU_MEMORY_TYPE_WEIGHTS)
+
         return ReleaseMemoryOccupationReqOutput()
 
     def resume_memory_occupation(self, recv_req: ResumeMemoryOccupationReqInput):
-        self.memory_saver_adapter.check_validity(caller_name="resume_memory_occupation")
-        self.memory_saver_adapter.resume()
-        _import_static_state(
-            self.tp_worker.worker.model_runner.model, self.stashed_model_static_state
-        )
-        del self.stashed_model_static_state
+        tags = recv_req.tags
+        if tags is None or len(tags) == 0:
+            tags = [GPU_MEMORY_TYPE_WEIGHTS, GPU_MEMORY_TYPE_KV_CACHE]
+
+        if GPU_MEMORY_TYPE_WEIGHTS in tags:
+            self.memory_saver_adapter.resume(GPU_MEMORY_TYPE_WEIGHTS)
+            _import_static_state(
+                self.tp_worker.worker.model_runner.model,
+                self.stashed_model_static_state,
+            )
+            del self.stashed_model_static_state
+
+        if GPU_MEMORY_TYPE_KV_CACHE in tags:
+            self.memory_saver_adapter.resume(GPU_MEMORY_TYPE_KV_CACHE)
+
         return ResumeMemoryOccupationReqOutput()
 
     def slow_down(self, recv_req: SlowDownReqInput):
diff --git a/python/sglang/srt/mem_cache/memory_pool.py b/python/sglang/srt/mem_cache/memory_pool.py
index d426093df..c01807f1b 100644
--- a/python/sglang/srt/mem_cache/memory_pool.py
+++ b/python/sglang/srt/mem_cache/memory_pool.py
@@ -35,6 +35,7 @@ import torch
 import triton
 import triton.language as tl
 
+from sglang.srt.constants import GPU_MEMORY_TYPE_KV_CACHE
 from sglang.srt.layers.radix_attention import RadixAttention
 from sglang.srt.utils import debug_timing, get_bool_env_var, is_cuda, next_power_of_2
 
@@ -54,6 +55,7 @@ class ReqToTokenPool:
         device: str,
         enable_memory_saver: bool,
     ):
+
         memory_saver_adapter = TorchMemorySaverAdapter.create(
             enable=enable_memory_saver
         )
@@ -61,7 +63,7 @@ class ReqToTokenPool:
         self.size = size
         self.max_context_len = max_context_len
         self.device = device
-        with memory_saver_adapter.region():
+        with memory_saver_adapter.region(GPU_MEMORY_TYPE_KV_CACHE):
             self.req_to_token = torch.zeros(
                 (size, max_context_len), dtype=torch.int32, device=device
             )
@@ -292,7 +294,7 @@ class MHATokenToKVPool(KVCache):
         )
 
     def _create_buffers(self):
-        with self.memory_saver_adapter.region():
+        with self.memory_saver_adapter.region(GPU_MEMORY_TYPE_KV_CACHE):
             with (
                 torch.cuda.use_mem_pool(self.custom_mem_pool)
                 if self.enable_custom_mem_pool
@@ -610,7 +612,7 @@ class MLATokenToKVPool(KVCache):
         else:
             self.custom_mem_pool = None
 
-        with self.memory_saver_adapter.region():
+        with self.memory_saver_adapter.region(GPU_MEMORY_TYPE_KV_CACHE):
             with (
                 torch.cuda.use_mem_pool(self.custom_mem_pool)
                 if self.custom_mem_pool
@@ -753,7 +755,7 @@ class DoubleSparseTokenToKVPool(KVCache):
             end_layer,
         )
 
-        with self.memory_saver_adapter.region():
+        with self.memory_saver_adapter.region(GPU_MEMORY_TYPE_KV_CACHE):
             # [size, head_num, head_dim] for each layer
             self.k_buffer = [
                 torch.zeros(
diff --git a/python/sglang/srt/model_executor/model_runner.py b/python/sglang/srt/model_executor/model_runner.py
index 6ffb0aed1..e1335074a 100644
--- a/python/sglang/srt/model_executor/model_runner.py
+++ b/python/sglang/srt/model_executor/model_runner.py
@@ -30,6 +30,7 @@ from sglang.srt import debug_utils
 from sglang.srt.configs.device_config import DeviceConfig
 from sglang.srt.configs.load_config import LoadConfig
 from sglang.srt.configs.model_config import AttentionArch, ModelConfig
+from sglang.srt.constants import GPU_MEMORY_TYPE_WEIGHTS
 from sglang.srt.distributed import (
     get_tp_group,
     get_world_group,
@@ -222,6 +223,7 @@ class ModelRunner:
 
     def initialize(self, min_per_gpu_memory: float):
         server_args = self.server_args
+
         self.memory_saver_adapter = TorchMemorySaverAdapter.create(
             enable=self.server_args.enable_memory_saver
         )
@@ -547,7 +549,7 @@ class ModelRunner:
         monkey_patch_vllm_parallel_state()
         monkey_patch_isinstance_for_vllm_base_layer()
 
-        with self.memory_saver_adapter.region():
+        with self.memory_saver_adapter.region(GPU_MEMORY_TYPE_WEIGHTS):
             self.model = get_model(
                 model_config=self.model_config,
                 load_config=self.load_config,
diff --git a/python/sglang/srt/torch_memory_saver_adapter.py b/python/sglang/srt/torch_memory_saver_adapter.py
index 2b1080d25..a46151782 100644
--- a/python/sglang/srt/torch_memory_saver_adapter.py
+++ b/python/sglang/srt/torch_memory_saver_adapter.py
@@ -1,11 +1,13 @@
 import logging
+import threading
+import time
 from abc import ABC
-from contextlib import contextmanager
+from contextlib import contextmanager, nullcontext
 
 try:
     import torch_memory_saver
 
-    _primary_memory_saver = torch_memory_saver.TorchMemorySaver()
+    _memory_saver = torch_memory_saver.torch_memory_saver
     import_error = None
 except ImportError as e:
     import_error = e
@@ -38,13 +40,13 @@ class TorchMemorySaverAdapter(ABC):
     def configure_subprocess(self):
         raise NotImplementedError
 
-    def region(self):
+    def region(self, tag: str):
         raise NotImplementedError
 
-    def pause(self):
+    def pause(self, tag: str):
         raise NotImplementedError
 
-    def resume(self):
+    def resume(self, tag: str):
         raise NotImplementedError
 
     @property
@@ -53,21 +55,23 @@ class TorchMemorySaverAdapter(ABC):
 
 
 class _TorchMemorySaverAdapterReal(TorchMemorySaverAdapter):
+    """Adapter for TorchMemorySaver with tag-based control"""
+
     def configure_subprocess(self):
         return torch_memory_saver.configure_subprocess()
 
-    def region(self):
-        return _primary_memory_saver.region()
+    def region(self, tag: str):
+        return _memory_saver.region(tag=tag)
 
-    def pause(self):
-        return _primary_memory_saver.pause()
+    def pause(self, tag: str):
+        return _memory_saver.pause(tag=tag)
 
-    def resume(self):
-        return _primary_memory_saver.resume()
+    def resume(self, tag: str):
+        return _memory_saver.resume(tag=tag)
 
     @property
     def enabled(self):
-        return _primary_memory_saver.enabled
+        return _memory_saver is not None and _memory_saver.enabled
 
 
 class _TorchMemorySaverAdapterNoop(TorchMemorySaverAdapter):
@@ -76,13 +80,13 @@ class _TorchMemorySaverAdapterNoop(TorchMemorySaverAdapter):
         yield
 
     @contextmanager
-    def region(self):
+    def region(self, tag: str):
         yield
 
-    def pause(self):
+    def pause(self, tag: str):
         pass
 
-    def resume(self):
+    def resume(self, tag: str):
         pass
 
     @property
diff --git a/python/sglang/test/test_utils.py b/python/sglang/test/test_utils.py
index 9e3011dd8..7c335c79d 100644
--- a/python/sglang/test/test_utils.py
+++ b/python/sglang/test/test_utils.py
@@ -37,6 +37,7 @@ from sglang.utils import get_exception_traceback
 # General test models
 DEFAULT_MODEL_NAME_FOR_TEST = "meta-llama/Llama-3.1-8B-Instruct"
 DEFAULT_SMALL_MODEL_NAME_FOR_TEST = "meta-llama/Llama-3.2-1B-Instruct"
+DEFAULT_SMALL_MODEL_NAME_FOR_TEST_BASE = "meta-llama/Llama-3.2-1B"
 DEFAULT_MOE_MODEL_NAME_FOR_TEST = "mistralai/Mixtral-8x7B-Instruct-v0.1"
 DEFAULT_SMALL_MOE_MODEL_NAME_FOR_TEST = "Qwen/Qwen1.5-MoE-A2.7B"
 
diff --git a/test/srt/run_suite.py b/test/srt/run_suite.py
index 58142e73b..42e52de4b 100644
--- a/test/srt/run_suite.py
+++ b/test/srt/run_suite.py
@@ -74,7 +74,6 @@ suites = {
         TestFile("test_radix_attention.py", 105),
         TestFile("test_reasoning_content.py", 89),
         TestFile("test_regex_constrained.py", 64),
-        TestFile("test_release_memory_occupation.py", 44),
         TestFile("test_request_length_validation.py", 31),
         TestFile("test_retract_decode.py", 54),
         TestFile("test_server_args.py", 1),
@@ -146,6 +145,7 @@ suites = {
         TestFile("test_patch_torch.py", 19),
         TestFile("test_update_weights_from_distributed.py", 103),
         TestFile("test_verl_engine_2_gpu.py", 64),
+        TestFile("test_release_memory_occupation.py", 44),
     ],
     "per-commit-2-gpu-amd": [
         TestFile("models/lora/test_lora_tp.py", 116),
diff --git a/test/srt/test_release_memory_occupation.py b/test/srt/test_release_memory_occupation.py
index 7a7659280..eb20fc46b 100644
--- a/test/srt/test_release_memory_occupation.py
+++ b/test/srt/test_release_memory_occupation.py
@@ -1,3 +1,32 @@
+"""Test memory release and resume operations for SGLang engine in hybrid RL training.
+
+This test suite evaluates the SGLang engine's memory management capabilities, focusing
+on releasing and resuming memory occupation for KV cache and model weights. It simulates
+an RL workflow where the SGLang engine acts as a rollout engine for experience collection.
+The process involves initializing the engine, sending a small number of requests to simulate
+rollout, releasing memory to mimic offloading during RL training, resuming memory occupation,
+updating weights with a trained HuggingFace model, and verifying the updated weights.
+
+Detailed in our proposal (https://github.com/sgl-project/sglang/pull/7099), two test cases
+are included:
+
+1. Basic Release and Resume: Uses a lower mem_fraction_static (0.6) to control memory allocation
+and avoid OOM errors carefully. This test simulates a scenario without multi-stage memory management,
+ensuring the engine can release and resume memory occupation while maintaining functionality after
+weight updates.
+
+2. Multi-Stage Release and Resume: Employs a higher mem_fraction_static (0.85) to simulate higher
+memory pressure, leveraging multi-stage memory management. It sequentially releases and resumes
+KV cache and model weights, verifying memory deallocation and reallocation at each stage, and
+ensuring correct weight updates and text generation.
+
+3. Tensor Parallel Tests: Tests memory release and resume operations with different tensor parallel
+configurations (tp=1, tp=2) to ensure proper memory management in distributed settings. For different
+data parallel size, we test it in verl.
+"""
+
+import gc
+import os
 import time
 import unittest
 
@@ -5,93 +34,221 @@ import torch
 from transformers import AutoModelForCausalLM
 
 import sglang as sgl
-from sglang.test.test_utils import DEFAULT_SMALL_MODEL_NAME_FOR_TEST, CustomTestCase
+from sglang.srt.constants import GPU_MEMORY_TYPE_KV_CACHE, GPU_MEMORY_TYPE_WEIGHTS
+from sglang.test.test_utils import (
+    DEFAULT_SMALL_MODEL_NAME_FOR_TEST,
+    DEFAULT_SMALL_MODEL_NAME_FOR_TEST_BASE,
+    CustomTestCase,
+)
 
 # (temporarily) set to true to observe memory usage in nvidia-smi more clearly
-_DEBUG_EXTRA = True
+_DEBUG_EXTRA = False
+
+
+def get_gpu_memory_gb():
+    return torch.cuda.device_memory_used() / 1024**3
 
 
 class TestReleaseMemoryOccupation(CustomTestCase):
-    def test_release_and_resume_occupation(self):
-        prompt = "Today is a sunny day and I like"
-        sampling_params = {"temperature": 0, "max_new_tokens": 8}
-        model_name = DEFAULT_SMALL_MODEL_NAME_FOR_TEST
-        expect_output = " to spend it outdoors. I decided to"
-
+    def _setup_engine(self, model_name, mem_fraction_static=0.8, tp_size=1):
+        """Common setup for engine and HF model."""
         engine = sgl.Engine(
             model_path=model_name,
             random_seed=42,
             enable_memory_saver=True,
+            mem_fraction_static=mem_fraction_static,
+            tp_size=tp_size,
             # disable_cuda_graph=True,  # for debugging only
         )
-        hf_model_new = AutoModelForCausalLM.from_pretrained(
-            model_name, torch_dtype="bfloat16"
-        )
 
+        return engine
+
+    def _common_test_params(self):
+        """Common test parameters."""
+        return {
+            "prompt": "Today is a sunny day and I like",
+            "sampling_params": {"temperature": 0, "max_new_tokens": 8},
+            "expect_output_before_update_weights": " to spend it outdoors. I decided to",
+            "expect_output_after_update_weights": " to go for a walk. I like",
+        }
+
+    def _test_initial_generation(
+        self, engine, prompt, sampling_params, expect_output_before_update_weights
+    ):
+        """Test initial generation and memory allocation."""
         print("generate (#1)")
         outputs = engine.generate(prompt, sampling_params)["text"]
-        self.assertEqual(outputs, expect_output)
+        self.assertEqual(outputs, expect_output_before_update_weights)
 
         if _DEBUG_EXTRA:
             time.sleep(3)
 
-        self.assertEqual(
-            _try_allocate_big_tensor(),
-            False,
-            "Should not be able to allocate big tensors before releasing",
-        )
+    def test_release_and_resume_occupation(self):
+        # Without multi-stage release and resume, we need to carefully control the memory fraction to avoid OOM
+        model_name = DEFAULT_SMALL_MODEL_NAME_FOR_TEST
+        assert (
+            torch.cuda.device_count() >= 2
+        ), "Need at least 2 GPUs for tensor parallel tests"
 
-        print("release_memory_occupation start")
-        t = time.perf_counter()
-        engine.release_memory_occupation()
-        if _DEBUG_EXTRA:
-            print("release_memory_occupation", time.perf_counter() - t)
+        for tp_size in [1, 2]:
 
-        if _DEBUG_EXTRA:
-            time.sleep(5)
+            print(f"Testing tp_size={tp_size} for test_release_and_resume_occupation")
+            engine = self._setup_engine(
+                model_name=model_name, mem_fraction_static=0.6, tp_size=tp_size
+            )
+            params = self._common_test_params()
 
-        self.assertEqual(
-            _try_allocate_big_tensor(),
-            True,
-            "Should be able to allocate big tensors aftre releasing",
-        )
+            self._test_initial_generation(
+                engine,
+                params["prompt"],
+                params["sampling_params"],
+                params["expect_output_before_update_weights"],
+            )
 
-        if _DEBUG_EXTRA:
-            time.sleep(5)
+            t = time.perf_counter()
+            gpu_memory_usage_before_release = get_gpu_memory_gb()
+            engine.release_memory_occupation()
+            gpu_memory_usage_after_release = get_gpu_memory_gb()
 
-        print("resume_memory_occupation start")
-        t = time.perf_counter()
-        engine.resume_memory_occupation()
-        if _DEBUG_EXTRA:
-            print("resume_memory_occupation", time.perf_counter() - t)
+            self.assertLess(
+                gpu_memory_usage_after_release,
+                gpu_memory_usage_before_release,
+            )
 
-        self.assertEqual(
-            _try_allocate_big_tensor(),
-            False,
-            "Should not be able to allocate big tensors after resuming",
-        )
+            print(
+                f"Release took {time.perf_counter() - t:.2f}s, memory: {gpu_memory_usage_before_release:.1f} GB → {gpu_memory_usage_after_release:.1f} GB"
+            )
 
-        print("update_weights_from_tensor")
-        # As if: PPO has updated hf model's weights, and now we sync it to SGLang
-        engine.update_weights_from_tensor(list(hf_model_new.named_parameters()))
+            if _DEBUG_EXTRA:
+                time.sleep(3)
 
-        print("generate (#2)")
-        outputs = engine.generate(prompt, sampling_params)["text"]
-        self.assertEqual(outputs, expect_output)
+            t = time.perf_counter()
+            engine.resume_memory_occupation()
+            print(
+                f"Resume took {time.perf_counter() - t:.2f}s, memory: {get_gpu_memory_gb():.1f} GB"
+            )
 
-        if _DEBUG_EXTRA:
-            time.sleep(4)
+            hf_model_new = AutoModelForCausalLM.from_pretrained(
+                DEFAULT_SMALL_MODEL_NAME_FOR_TEST_BASE,
+                torch_dtype="bfloat16",
+                device_map="cuda",
+            )
+            engine.update_weights_from_tensor(list(hf_model_new.named_parameters()))
 
-        engine.shutdown()
+            # destroy the hf model
+            del hf_model_new
+            torch.cuda.empty_cache()
 
+            print("generate (#2)")
+            outputs = engine.generate(params["prompt"], params["sampling_params"])[
+                "text"
+            ]
+            self.assertEqual(outputs, params["expect_output_after_update_weights"])
+            engine.shutdown()
 
-def _try_allocate_big_tensor(size: int = 20_000_000_000):
-    try:
-        torch.empty((size,), dtype=torch.uint8, device="cuda")
-        torch.cuda.empty_cache()
-        return True
-    except torch.cuda.OutOfMemoryError:
-        return False
+    def test_multi_stage_release_and_resume(self):
+        # With multi-stage release and resume, we can set the memory fraction to 0.85 without concern of OOM
+        model_name = DEFAULT_SMALL_MODEL_NAME_FOR_TEST
+
+        for tp_size in [1, 2]:
+            if tp_size == 2 and torch.cuda.device_count() < 2:
+                continue
+
+            print(f"Testing tp_size={tp_size} for test_multi_stage_release_and_resume")
+            engine = sgl.Engine(
+                model_path=model_name,
+                random_seed=42,
+                enable_memory_saver=True,
+                mem_fraction_static=0.85,  # Higher memory pressure
+                tp_size=tp_size,
+            )
+            params = self._common_test_params()
+
+            self._test_initial_generation(
+                engine,
+                params["prompt"],
+                params["sampling_params"],
+                params["expect_output_before_update_weights"],
+            )
+
+            t = time.perf_counter()
+            gpu_memory_usage_before_release_kv_cache = get_gpu_memory_gb()
+            engine.release_memory_occupation(tags=[GPU_MEMORY_TYPE_KV_CACHE])
+
+            gpu_memory_usage_after_release_kv_cache = get_gpu_memory_gb()
+
+            self.assertLess(
+                gpu_memory_usage_after_release_kv_cache,
+                gpu_memory_usage_before_release_kv_cache,
+            )
+            engine.release_memory_occupation(tags=[GPU_MEMORY_TYPE_WEIGHTS])
+
+            gpu_memory_usage_after_release_weights = get_gpu_memory_gb()
+
+            self.assertLess(
+                gpu_memory_usage_after_release_weights,
+                gpu_memory_usage_after_release_kv_cache,
+            )
+
+            print(f"Release took {time.perf_counter() - t:.2f}s")
+            print(
+                f"Memory: {gpu_memory_usage_before_release_kv_cache:.1f} → {gpu_memory_usage_after_release_kv_cache:.1f} → {gpu_memory_usage_after_release_weights:.1f} GB"
+            )
+
+            if _DEBUG_EXTRA:
+                time.sleep(3)
+
+            t = time.perf_counter()
+            gpu_memory_usage_before_resume_weights = get_gpu_memory_gb()
+
+            # gpu_memory_usage_after_release_weights and gpu_memory_usage_before_resume_weights should be close
+
+            self.assertAlmostEqual(
+                gpu_memory_usage_after_release_weights,
+                gpu_memory_usage_before_resume_weights,
+                delta=3.0,
+            )
+            print(f"Resume weights took {time.perf_counter() - t:.2f}s")
+
+            engine.resume_memory_occupation(tags=[GPU_MEMORY_TYPE_WEIGHTS])
+            gpu_memory_usage_after_resume_weights = get_gpu_memory_gb()
+
+            self.assertGreater(
+                gpu_memory_usage_after_resume_weights,
+                gpu_memory_usage_before_resume_weights,
+            )
+
+            # Update weights from a trained model to serving engine, and then destroy the trained model
+            hf_model_new = AutoModelForCausalLM.from_pretrained(
+                DEFAULT_SMALL_MODEL_NAME_FOR_TEST_BASE,
+                torch_dtype="bfloat16",
+                device_map="cuda",
+            )
+            gpu_memory_usage_after_loaded_hf_model = get_gpu_memory_gb()
+            engine.update_weights_from_tensor(list(hf_model_new.named_parameters()))
+
+            # destroy the hf model
+            del hf_model_new
+            torch.cuda.empty_cache()
+            engine.resume_memory_occupation(tags=[GPU_MEMORY_TYPE_KV_CACHE])
+
+            gpu_memory_usage_after_resume_kv_cache = get_gpu_memory_gb()
+            self.assertGreater(
+                gpu_memory_usage_after_resume_kv_cache,
+                gpu_memory_usage_after_resume_weights,
+            )
+
+            print(f"Resume + update took {time.perf_counter() - t:.2f}s")
+            print(
+                f"Memory: {gpu_memory_usage_before_resume_weights:.1f} → {gpu_memory_usage_after_resume_weights:.1f} → {gpu_memory_usage_after_loaded_hf_model:.1f} → {gpu_memory_usage_after_resume_kv_cache:.1f} GB"
+            )
+
+            print("generate (#2)")
+            outputs = engine.generate(params["prompt"], params["sampling_params"])[
+                "text"
+            ]
+            self.assertEqual(outputs, params["expect_output_after_update_weights"])
+            engine.shutdown()
 
 
 if __name__ == "__main__":
diff --git a/test/srt/test_verl_engine_2_gpu.py b/test/srt/test_verl_engine_2_gpu.py
index aaf9ac460..40321ee3f 100644
--- a/test/srt/test_verl_engine_2_gpu.py
+++ b/test/srt/test_verl_engine_2_gpu.py
@@ -235,7 +235,8 @@ def _run_subprocess(
     output_writer.send(execution_ok)
     output_writer.close()
 
-    engine.shutdown()
+    if "engine" in locals() and engine is not None:
+        engine.shutdown()
     print(f"subprocess[{rank=}] end", flush=True)
 
 
diff --git a/test/srt/test_verl_engine_4_gpu.py b/test/srt/test_verl_engine_4_gpu.py
index d620f0e44..014f17daf 100644
--- a/test/srt/test_verl_engine_4_gpu.py
+++ b/test/srt/test_verl_engine_4_gpu.py
@@ -249,7 +249,8 @@ def _run_subprocess(
     output_writer.send(execution_ok)
     output_writer.close()
 
-    engine.shutdown()
+    if "engine" in locals() and engine is not None:
+        engine.shutdown()
     print(f"subprocess[{rank=}] end", flush=True)