diff --git a/tests/v1/worker/test_gpu_model_runner.py b/tests/v1/worker/test_gpu_model_runner.py
new file mode 100644
index 000000000000..f5219b676a83
--- /dev/null
+++ b/tests/v1/worker/test_gpu_model_runner.py
@@ -0,0 +1,236 @@
+# SPDX-License-Identifier: Apache-2.0
+import pytest
+
+from vllm.config import CacheConfig, ModelConfig, SchedulerConfig, VllmConfig
+from vllm.sampling_params import SamplingParams
+from vllm.v1.core.scheduler_output import (CachedRequestData, NewRequestData,
+                                           SchedulerOutput)
+from vllm.v1.worker.gpu_model_runner import GPUModelRunner
+
+
+@pytest.fixture
+def model_runner():
+    scheduler_config = SchedulerConfig(
+        max_num_seqs=10,
+        max_num_batched_tokens=512,
+        max_model_len=512,
+    )
+    model_config = ModelConfig(
+        model="facebook/opt-125m",
+        task="generate",
+        tokenizer="facebook/opt-125m",
+        tokenizer_mode="auto",
+        trust_remote_code=True,
+        dtype="float16",
+        seed=42,
+    )
+    cache_config = CacheConfig(
+        block_size=16,
+        gpu_memory_utilization=0.9,
+        swap_space=0,
+        cache_dtype="auto",
+    )
+    vllm_config = VllmConfig(
+        model_config=model_config,
+        cache_config=cache_config,
+        scheduler_config=scheduler_config,
+    )
+
+    device = "cuda"
+    return GPUModelRunner(vllm_config, device)
+
+
+def _schedule_new_request(*req_ids: str) -> SchedulerOutput:
+    new_reqs = []
+    num_scheduled_tokens = {}
+    total_num_scheduled_tokens = 0
+    for req_id in req_ids:
+        new_reqs.append(
+            NewRequestData(
+                req_id=req_id,
+                prompt_token_ids=[1, 2, 3],
+                prompt="test",
+                mm_inputs=[],
+                mm_hashes=[],
+                mm_positions=[],
+                sampling_params=SamplingParams(),
+                block_ids=[0],
+                num_computed_tokens=0,
+                lora_request=None,
+            ))
+        num_scheduled_tokens[req_id] = 3
+        total_num_scheduled_tokens += num_scheduled_tokens[req_id]
+
+    return SchedulerOutput(
+        scheduled_new_reqs=new_reqs,
+        scheduled_cached_reqs=[],
+        num_scheduled_tokens=num_scheduled_tokens,
+        total_num_scheduled_tokens=total_num_scheduled_tokens,
+        scheduled_encoder_inputs={},
+        num_common_prefix_blocks=0,
+        finished_req_ids=set(),
+        free_encoder_input_ids=[],
+    )
+
+
+def _is_req_scheduled(model_runner, req_id: str) -> bool:
+    return req_id in model_runner.input_batch.req_id_to_index
+
+
+def _is_req_added(model_runner, req_id: str) -> bool:
+    return req_id in model_runner.requests
+
+
+def test_update_states_new_request(model_runner):
+    req_id = "req_0"
+
+    # new req
+    scheduler_output = _schedule_new_request(req_id)
+
+    batch_changed = model_runner._update_states(scheduler_output)
+    assert batch_changed is True
+    assert _is_req_added(model_runner, req_id)
+    assert _is_req_scheduled(model_runner, req_id)
+
+
+def test_update_states_request_finished(model_runner):
+    req_id = "req_0"
+
+    # new req
+    scheduler_output = _schedule_new_request(req_id)
+
+    model_runner._update_states(scheduler_output)
+    assert _is_req_added(model_runner, req_id)
+    assert _is_req_scheduled(model_runner, req_id)
+
+    # finish req
+    scheduler_output = SchedulerOutput(
+        scheduled_new_reqs=[],
+        scheduled_cached_reqs=[],
+        num_scheduled_tokens={},
+        total_num_scheduled_tokens=0,
+        scheduled_encoder_inputs={},
+        num_common_prefix_blocks=0,
+        finished_req_ids={req_id},
+        free_encoder_input_ids=[],
+    )
+
+    batch_changed = model_runner._update_states(scheduler_output)
+    assert batch_changed is True
+    assert not _is_req_added(model_runner, req_id)
+    assert not _is_req_scheduled(model_runner, req_id)
+
+
+def test_update_states_request_resumed(model_runner):
+    req_id = "req_0"
+
+    # new req
+    scheduler_output = _schedule_new_request(req_id)
+
+    model_runner._update_states(scheduler_output)
+    assert _is_req_added(model_runner, req_id)
+    assert _is_req_scheduled(model_runner, req_id)
+
+    # unschedule req
+    scheduler_output = SchedulerOutput(
+        scheduled_new_reqs=[],
+        scheduled_cached_reqs=[],
+        num_scheduled_tokens={},
+        total_num_scheduled_tokens=0,
+        scheduled_encoder_inputs={},
+        num_common_prefix_blocks=0,
+        finished_req_ids={},
+        free_encoder_input_ids=[],
+    )
+
+    model_runner._update_states(scheduler_output)
+    assert _is_req_added(model_runner, req_id)
+    assert not _is_req_scheduled(model_runner, req_id)
+
+    # resume req
+    cached_req_data = CachedRequestData(
+        req_id=req_id,
+        resumed_from_preemption=False,
+        new_block_ids=[],
+        num_computed_tokens=0,
+    )
+
+    scheduler_output = SchedulerOutput(
+        scheduled_new_reqs=[],
+        scheduled_cached_reqs=[cached_req_data],
+        num_scheduled_tokens={req_id: 1},
+        total_num_scheduled_tokens=1,
+        scheduled_encoder_inputs={},
+        num_common_prefix_blocks=0,
+        finished_req_ids=set(),
+        free_encoder_input_ids=[],
+    )
+
+    batch_changed = model_runner._update_states(scheduler_output)
+    assert batch_changed is True
+    assert _is_req_added(model_runner, req_id)
+    assert _is_req_scheduled(model_runner, req_id)
+
+
+def test_update_states_no_changes(model_runner):
+    req_id = "req_0"
+
+    # new req
+    scheduler_output = _schedule_new_request(req_id)
+
+    model_runner._update_states(scheduler_output)
+    assert _is_req_added(model_runner, req_id)
+    assert _is_req_scheduled(model_runner, req_id)
+
+    # schedule req
+    scheduler_output = SchedulerOutput(
+        scheduled_new_reqs=[],
+        scheduled_cached_reqs=[],
+        num_scheduled_tokens={req_id: 1},
+        total_num_scheduled_tokens=1,
+        scheduled_encoder_inputs={},
+        num_common_prefix_blocks=0,
+        finished_req_ids=set(),
+        free_encoder_input_ids=[],
+    )
+
+    batch_changed = model_runner._update_states(scheduler_output)
+    assert batch_changed is False
+    assert _is_req_added(model_runner, req_id)
+    assert _is_req_scheduled(model_runner, req_id)
+
+
+def test_update_states_request_unscheduled(model_runner):
+    req_ids = ("req_0", "req_1")
+
+    # new reqs
+    scheduler_output = _schedule_new_request(*req_ids)
+
+    model_runner._update_states(scheduler_output)
+
+    assert _is_req_added(model_runner, req_ids[0])
+    assert _is_req_scheduled(model_runner, req_ids[0])
+
+    assert _is_req_added(model_runner, req_ids[1])
+    assert _is_req_scheduled(model_runner, req_ids[1])
+
+    # unschedule req_1
+    scheduler_output = SchedulerOutput(
+        scheduled_new_reqs=[],
+        scheduled_cached_reqs=[],
+        num_scheduled_tokens={req_ids[0]: 1},
+        total_num_scheduled_tokens=1,
+        scheduled_encoder_inputs={},
+        num_common_prefix_blocks=0,
+        finished_req_ids=set(),
+        free_encoder_input_ids=[],
+    )
+
+    batch_changed = model_runner._update_states(scheduler_output)
+    assert batch_changed is True
+
+    assert _is_req_added(model_runner, req_ids[0])
+    assert _is_req_scheduled(model_runner, req_ids[0])
+
+    assert _is_req_added(model_runner, req_ids[1])
+    assert not _is_req_scheduled(model_runner, req_ids[1])
diff --git a/vllm/v1/worker/gpu_model_runner.py b/vllm/v1/worker/gpu_model_runner.py
index 9b1eab613bf7..18e70daaabdd 100644
--- a/vllm/v1/worker/gpu_model_runner.py
+++ b/vllm/v1/worker/gpu_model_runner.py
@@ -361,7 +361,8 @@ def _update_states(self, scheduler_output: "SchedulerOutput") -> bool:
         # Condense the batched states if there are empty indices.
         if removed_req_indices:
             self.input_batch.condense(removed_req_indices)
-        return len(unscheduled_req_ids) > 0 or len(req_ids_to_add) > 0
+        return (len(unscheduled_req_ids) > 0 or len(req_ids_to_add) > 0
+                or len(scheduler_output.finished_req_ids) > 0)
 
     def _prepare_inputs(self, scheduler_output: "SchedulerOutput"):
         total_num_scheduled_tokens = scheduler_output.total_num_scheduled_tokens