diff --git a/examples/online_serving/openai_chat_completion_with_reasoning.py b/examples/online_serving/openai_chat_completion_with_reasoning.py
index a88c8adb55c2..b5dbed1205d3 100644
--- a/examples/online_serving/openai_chat_completion_with_reasoning.py
+++ b/examples/online_serving/openai_chat_completion_with_reasoning.py
@@ -36,8 +36,8 @@
 reasoning_content = response.choices[0].message.reasoning_content
 content = response.choices[0].message.content
 
-print("reasoning_content:", reasoning_content)
-print("content:", content)
+print("reasoning_content for Round 1:", reasoning_content)
+print("content for Round 1:", content)
 
 # Round 2
 messages.append({"role": "assistant", "content": content})
@@ -50,5 +50,5 @@
 reasoning_content = response.choices[0].message.reasoning_content
 content = response.choices[0].message.content
 
-print("reasoning_content:", reasoning_content)
-print("content:", content)
+print("reasoning_content for Round 2:", reasoning_content)
+print("content for Round 2:", content)
diff --git a/tests/entrypoints/openai/reasoning_parsers/test_deepseekr1_reasoning_parser.py b/tests/entrypoints/openai/reasoning_parsers/test_deepseekr1_reasoning_parser.py
index f7b81be48bd1..fdadb2e21ff8 100644
--- a/tests/entrypoints/openai/reasoning_parsers/test_deepseekr1_reasoning_parser.py
+++ b/tests/entrypoints/openai/reasoning_parsers/test_deepseekr1_reasoning_parser.py
@@ -15,32 +15,62 @@
 end_token = "</think>"
 
 SIMPLE_REASONING = {
-    "output": "<think>This is a reasoning section</think>This is the rest",
+    "output": "This is a reasoning section</think>This is the rest",
     "reasoning_content": "This is a reasoning section",
     "content": "This is the rest",
 }
 COMPLETE_REASONING = {
-    "output": "<think>This is a reasoning section</think>",
+    "output": "This is a reasoning section</think>",
     "reasoning_content": "This is a reasoning section",
     "content": None,
 }
 NO_REASONING = {
-    "output": "This is a reasoning section",
+    "output": "This is content",
     "reasoning_content": None,
-    "content": "This is a reasoning section",
+    "content": "This is content",
+}
+NO_REASONING_STREAMING = {
+    "output": "This is a reasoning section",
+    "reasoning_content": "This is a reasoning section",
+    "content": None,
 }
 MULTIPLE_LINES = {
-    "output": "<think>This\nThat</think>This is the rest\nThat",
+    "output": "This\nThat</think>This is the rest\nThat",
     "reasoning_content": "This\nThat",
     "content": "This is the rest\nThat",
 }
 SHORTEST_REASONING_NO_STREAMING = {
-    "output": "<think></think>This is the rest",
+    "output": "</think>This is the rest",
     "reasoning_content": "",
     "content": "This is the rest",
 }
 SHORTEST_REASONING = {
-    "output": "<think></think>This is the rest",
+    "output": "</think>This is the rest",
+    "reasoning_content": None,
+    "content": "This is the rest",
+}
+REASONING_WITH_THINK = {
+    "output": "<think>This is a reasoning section</think>This is the rest",
+    "reasoning_content": "This is a reasoning section",
+    "content": "This is the rest",
+}
+COMPLETE_REASONING_WITH_THINK = {
+    "output": "<think>This is a reasoning section</think>",
+    "reasoning_content": "This is a reasoning section",
+    "content": None,
+}
+MULTIPLE_LINES_WITH_THINK = {
+    "output": "<think>This\nThat</think>This is the rest\nThat",
+    "reasoning_content": "This\nThat",
+    "content": "This is the rest\nThat",
+}
+SHORTEST_REASONING_NO_STREAMING_WITH_THINK = {
+    "output": "</think>This is the rest",
+    "reasoning_content": "",
+    "content": "This is the rest",
+}
+SHORTEST_REASONING_WITH_THINK = {
+    "output": "</think>This is the rest",
     "reasoning_content": None,
     "content": "This is the rest",
 }
@@ -49,37 +79,37 @@
     pytest.param(
         False,
         SIMPLE_REASONING,
-        id="simple_streaming",
+        id="simple_reasoning",
     ),
     pytest.param(
         True,
         SIMPLE_REASONING,
-        id="simple_streaming",
+        id="simple_reasoning_streaming",
     ),
     pytest.param(
         False,
         COMPLETE_REASONING,
-        id="complete_streaming",
+        id="complete_reasoning",
     ),
     pytest.param(
         True,
         COMPLETE_REASONING,
-        id="complete_streaming",
+        id="complete_reasoning_streaming",
     ),
     pytest.param(
         False,
         NO_REASONING,
-        id="no_streaming",
+        id="no_reasoning_token",
     ),
     pytest.param(
         True,
-        NO_REASONING,
-        id="no_streaming",
+        NO_REASONING_STREAMING,
+        id="no_reasoning_token_streaming",
     ),
     pytest.param(
         False,
         MULTIPLE_LINES,
-        id="multiple_lines_streaming",
+        id="multiple_lines",
     ),
     pytest.param(
         True,
@@ -89,23 +119,65 @@
     pytest.param(
         True,
         SHORTEST_REASONING,
-        id="shortest_streaming",
+        id="shortest",
     ),
     pytest.param(
         False,
         SHORTEST_REASONING_NO_STREAMING,
         id="shortest_streaming",
     ),
+    pytest.param(
+        False,
+        REASONING_WITH_THINK,
+        id="reasoning_with_think",
+    ),
+    pytest.param(
+        True,
+        REASONING_WITH_THINK,
+        id="reasoning_with_think_streaming",
+    ),
+    pytest.param(
+        False,
+        COMPLETE_REASONING_WITH_THINK,
+        id="complete_reasoning_with_think",
+    ),
+    pytest.param(
+        True,
+        COMPLETE_REASONING_WITH_THINK,
+        id="complete_reasoning_with_think_streaming",
+    ),
+    pytest.param(
+        False,
+        MULTIPLE_LINES_WITH_THINK,
+        id="multiple_lines_with_think",
+    ),
+    pytest.param(
+        True,
+        MULTIPLE_LINES_WITH_THINK,
+        id="multiple_lines_with_think_streaming",
+    ),
+    pytest.param(
+        False,
+        SHORTEST_REASONING_NO_STREAMING_WITH_THINK,
+        id="shortest_with_think",
+    ),
+    pytest.param(
+        True,
+        SHORTEST_REASONING_WITH_THINK,
+        id="shortest_with_think_streaming",
+    ),
 ]
 
+# Global tokenizer initialization to avoid repeated loading
+tokenizer = AutoTokenizer.from_pretrained("facebook/opt-125m")
+tokenizer.add_tokens([start_token, end_token])
+
 
 @pytest.mark.parametrize("streaming, param_dict", TEST_CASES)
 def test_reasoning(
     streaming: bool,
     param_dict: dict,
 ):
-    tokenizer = AutoTokenizer.from_pretrained("facebook/opt-125m")
-    tokenizer.add_tokens([start_token, end_token])
     output = tokenizer.tokenize(param_dict["output"])
     # decode everything to tokens
     output_tokens: List[str] = [
diff --git a/vllm/entrypoints/openai/reasoning_parsers/deepseek_r1_reasoning_parser.py b/vllm/entrypoints/openai/reasoning_parsers/deepseek_r1_reasoning_parser.py
index 5c19888d4540..33bba04882be 100644
--- a/vllm/entrypoints/openai/reasoning_parsers/deepseek_r1_reasoning_parser.py
+++ b/vllm/entrypoints/openai/reasoning_parsers/deepseek_r1_reasoning_parser.py
@@ -67,6 +67,8 @@ def extract_reasoning_content_streaming(
         ]):
             return None
 
+        # Check if <think> is present in previous or delta.
+        # Keep compatibility with models that don't generate <think> tokens.
         if self.think_start_token_id in previous_token_ids:
             if self.think_end_token_id in delta_token_ids:
                 # <think> in previous, </think> in delta,
@@ -85,7 +87,6 @@ def extract_reasoning_content_streaming(
                 # reasoning content continues
                 return DeltaMessage(reasoning_content=delta_text)
         elif self.think_start_token_id in delta_token_ids:
-            logger.info(delta_text)
             if self.think_end_token_id in delta_token_ids:
                 # <think> in delta, </think> in delta, extract reasoning content
                 start_index = delta_text.find(self.think_start_token)
@@ -101,35 +102,46 @@ def extract_reasoning_content_streaming(
                 # reasoning content continues
                 return DeltaMessage(reasoning_content=delta_text)
         else:
-            # No <think> in previous or delta, reasoning content continues.
-            return DeltaMessage(content=delta_text)
+            # No <think> in previous or delta, also need to check for </think>.
+            # Because the model may have generated </think> without <think>
+            # Ref https://huggingface.co/deepseek-ai/DeepSeek-R1/commit/8a58a132790c9935686eb97f042afa8013451c9f
+            if self.think_end_token_id in delta_token_ids:
+                # </think> in delta with more tokens,
+                # extract reasoning content and content
+                end_index = delta_text.find(self.think_end_token)
+                reasoning_content = delta_text[:end_index]
+                content = delta_text[end_index + len(self.think_end_token):]
+                return DeltaMessage(reasoning_content=reasoning_content,
+                                    content=content if content else None)
+            elif self.think_end_token_id in previous_token_ids:
+                # </think> in previous, thinking content ends
+                return DeltaMessage(content=delta_text)
+            else:
+                # no </think> in previous or delta, reasoning content continues
+                return DeltaMessage(reasoning_content=delta_text)
 
     def extract_reasoning_content(
             self, model_output: str, request: ChatCompletionRequest
     ) -> Tuple[Optional[str], Optional[str]]:
 
-        # Check if the model output contains the <think> tokens.
-        if (self.think_start_token not in model_output
-                or self.think_end_token not in model_output):
+        # DeepSeek R1 doesn't generate <think> now.
+        # Thus we assume the reasoning content is always at the start.
+        # Ref https://huggingface.co/deepseek-ai/DeepSeek-R1/commit/8a58a132790c9935686eb97f042afa8013451c9f
+        if self.think_end_token not in model_output:
             return None, model_output
         else:
+            # Add a start token if it's missing to keep compatibility.
+            if self.think_start_token not in model_output:
+                model_output = f"{self.think_start_token}{model_output}"
             # Use a regex to find the reasoning content
             reasoning_content = self.reasoning_regex.findall(model_output)[0]
 
-            # Remove the reasoning content from the model output
-            # Although deepseek's <think> token is always at the
-            # beginning of the line, we cannot guarantee that the
-            # other models will follow this convention.
-            # Therefore, we need to add :start_index.
-            start_index = model_output.find(self.think_start_token)
-            if start_index != -1:
-                end_index = start_index + len(
-                    f"{self.think_start_token}{reasoning_content}{self.think_end_token}"
-                )
-                model_output = model_output[:start_index] + \
-                                model_output[end_index:]
-
-                if len(model_output) == 0:
-                    return reasoning_content, None
-
-            return reasoning_content, model_output
+            end_index = len(
+                f"{self.think_start_token}{reasoning_content}{self.think_end_token}"
+            )
+            final_output = model_output[end_index:]
+
+            if len(final_output) == 0:
+                return reasoning_content, None
+
+            return reasoning_content, final_output