diff --git a/tests/v1/core/test_kv_cache_utils.py b/tests/v1/core/test_kv_cache_utils.py
index a4a571b180c6..e2f8fd1999c4 100644
--- a/tests/v1/core/test_kv_cache_utils.py
+++ b/tests/v1/core/test_kv_cache_utils.py
@@ -496,8 +496,7 @@ def test_allocate_with_lookahead():
 
     # Test case 1: Requires additional lookahead tokens
     kv_cache_manager = KVCacheManager(kv_cache_config=config,
-                                      max_model_len=100,
-                                      num_preallocate_tokens=0)
+                                      max_model_len=100)
     blocks = kv_cache_manager.allocate_slots(
         request,
         num_tokens=3,
@@ -507,25 +506,19 @@ def test_allocate_with_lookahead():
 
     # Test case 2: With precomputed blocks
     kv_cache_manager = KVCacheManager(kv_cache_config=config,
-                                      max_model_len=100,
-                                      num_preallocate_tokens=4)
-    # num_preallocate_blocks = 4 // 4 - 2 // 4 = 1
+                                      max_model_len=100)
     # required_blocks = ceil((3 + 2) /4) = 2
-    # total_blocks = 1 + 2 = 3
     blocks = kv_cache_manager.allocate_slots(
         request,
         num_tokens=3,
         num_lookahead_tokens=2,
     )
-    assert len(blocks) == 3
+    assert len(blocks) == 2
 
     # Test case 3: With precomputed blocks
-    # num_preallocate_blocks = 4 // 4 - 4 // 4 = 0
     # required_blocks = ceil((3 + 4) / 4) = 2
-    # total_blocks = 0 + 2 = 2
     kv_cache_manager = KVCacheManager(kv_cache_config=config,
-                                      max_model_len=100,
-                                      num_preallocate_tokens=4)
+                                      max_model_len=100)
     blocks = kv_cache_manager.allocate_slots(
         request,
         num_tokens=3,
diff --git a/tests/v1/core/test_prefix_caching.py b/tests/v1/core/test_prefix_caching.py
index 669c04236925..1b238d47c03a 100644
--- a/tests/v1/core/test_prefix_caching.py
+++ b/tests/v1/core/test_prefix_caching.py
@@ -8,7 +8,7 @@
 
 from vllm.multimodal.inputs import MultiModalKwargs, PlaceholderRange
 from vllm.sampling_params import SamplingParams
-from vllm.utils import cdiv, sha256
+from vllm.utils import sha256
 from vllm.v1.core.block_pool import BlockPool
 from vllm.v1.core.kv_cache_manager import KVCacheManager, Request
 from vllm.v1.core.kv_cache_utils import (BlockHashType, KVCacheBlock,
@@ -61,7 +61,6 @@ def test_prefill(hash_algo):
         max_model_len=8192,
         enable_caching=True,
         caching_hash_algo=hash_algo,
-        num_preallocate_tokens=16,
     )
 
     # choose the hash function according to the parameter
@@ -80,7 +79,7 @@ def test_prefill(hash_algo):
     assert not computed_blocks
     assert num_computed_tokens == 0
     blocks = manager.allocate_slots(req0, 55, computed_blocks)
-    assert [b.block_id for b in blocks] == [1, 2, 3, 4, 5]
+    assert [b.block_id for b in blocks] == [1, 2, 3, 4]
 
     # Check full block metadata
     parent_block_hash = None
@@ -92,8 +91,8 @@ def test_prefill(hash_algo):
         assert manager.block_pool.blocks[block_id].ref_cnt == 1
         parent_block_hash = block_hash.hash_value
 
-    # Check partial/preallocated block metadata
-    for block_id in (4, 5):
+    # Check partial block metadata
+    for block_id in (4, ):
         assert manager.block_pool.blocks[block_id].block_hash is None
         assert manager.block_pool.blocks[block_id].ref_cnt == 1
 
@@ -107,12 +106,12 @@ def test_prefill(hash_algo):
     assert num_computed_tokens == 3 * 16
     num_new_tokens = 53 - 3 * 16
     blocks = manager.allocate_slots(req1, num_new_tokens, computed_blocks)
-    assert [b.block_id for b in blocks] == [6, 7]
+    assert [b.block_id for b in blocks] == [5]
     for block in computed_blocks:
         assert block.ref_cnt == 2
 
-    # At this point, we should have 3 free blocks left.
-    assert manager.block_pool.free_block_queue.num_free_blocks == 3
+    # At this point, we should have 5 free blocks left.
+    assert manager.block_pool.free_block_queue.num_free_blocks == 5
 
     manager.free(req0)
     manager.free(req1)
@@ -120,14 +119,14 @@ def test_prefill(hash_algo):
     # All blocks should be available.
     assert manager.block_pool.free_block_queue.num_free_blocks == 10
     # The order should be
-    # [unallocated (8, 9, 10)]
-    # [unique_req0 (5, 4)]
-    # [unique_req1 (7, 6)]
+    # [unallocated (6, 7, 8, 9, 10)]
+    # [unique_req0 (4)]
+    # [unique_req1 (5)]
     # [common (3, 2, 1)]
     assert [
         b.block_id
         for b in manager.block_pool.free_block_queue.get_all_free_blocks()
-    ] == [8, 9, 10, 5, 4, 7, 6, 3, 2, 1]
+    ] == [6, 7, 8, 9, 10, 4, 5, 3, 2, 1]
 
     # Cache hit in the common prefix when the original block is already free.
     # Incomplete 1 block (6 tokens)
@@ -139,29 +138,29 @@ def test_prefill(hash_algo):
     assert num_computed_tokens == 3 * 16
     num_new_tokens = 53 - 3 * 16
     blocks = manager.allocate_slots(req2, num_new_tokens, computed_blocks)
-    assert [b.block_id for b in blocks] == [8, 9]
+    assert [b.block_id for b in blocks] == [6]
 
-    # Although we only have 5 free blocks, we have 8 blocks in
+    # Although we only have 6 free blocks, we have 8 blocks in
     # the free block queue due to lazy removal.
-    assert manager.block_pool.free_block_queue.num_free_blocks == 5
+    assert manager.block_pool.free_block_queue.num_free_blocks == 6
     assert all([
         b.ref_cnt == 0
         for b in manager.block_pool.free_block_queue.get_all_free_blocks()
     ])
     assert len([
         b for b in manager.block_pool.free_block_queue.get_all_free_blocks()
-    ]) == 5
+    ]) == 6
 
     manager.free(req2)
 
     # Cache miss and eviction.
-    req3 = make_request("3", [99] * (16 * 9))
+    req3 = make_request("3", [99] * (16 * 10))
     computed_blocks, num_computed_tokens = manager.get_computed_blocks(req3)
     assert not computed_blocks
     assert num_computed_tokens == 0
-    blocks = manager.allocate_slots(req3, 16 * 9, computed_blocks)
+    blocks = manager.allocate_slots(req3, 16 * 10, computed_blocks)
     # This block ID order also checks the eviction order.
-    assert [b.block_id for b in blocks] == [10, 5, 4, 7, 6, 9, 8, 3, 2, 1]
+    assert [b.block_id for b in blocks] == [7, 8, 9, 10, 4, 5, 6, 3, 2, 1]
     assert manager.block_pool.free_block_queue.num_free_blocks == 0
     assert manager.block_pool.free_block_queue.free_list_head is None
     assert manager.block_pool.free_block_queue.free_list_tail is None
@@ -178,7 +177,6 @@ def test_prefill_plp():
         make_kv_cache_config(16, 11),
         max_model_len=8192,
         enable_caching=True,
-        num_preallocate_tokens=16,
     )
     # the default hash function is hash
     hash_fn = hash
@@ -197,7 +195,7 @@ def test_prefill_plp():
     assert not computed_blocks
     assert num_computed_tokens == 0
     blocks = manager.allocate_slots(req0, 55, computed_blocks)
-    assert [b.block_id for b in blocks] == [1, 2, 3, 4, 5]
+    assert [b.block_id for b in blocks] == [1, 2, 3, 4]
     req0_block_hashes = [b.block_hash for b in blocks]
 
     # Check full block metadata
@@ -210,8 +208,8 @@ def test_prefill_plp():
         assert manager.block_pool.blocks[block_id].ref_cnt == 1
         parent_block_hash = block_hash.hash_value
 
-    # Check partial/preallocated block metadata
-    for block_id in (4, 5):
+    # Check partial block metadata
+    for block_id in (4, ):
         assert manager.block_pool.blocks[block_id].block_hash is None
         assert manager.block_pool.blocks[block_id].ref_cnt == 1
 
@@ -226,12 +224,12 @@ def test_prefill_plp():
     assert num_computed_tokens == 3 * 16
     num_new_tokens = 53 - 3 * 16
     blocks = manager.allocate_slots(req1, num_new_tokens, computed_blocks)
-    assert [b.block_id for b in blocks] == [6, 7]
+    assert [b.block_id for b in blocks] == [5]
     for block in computed_blocks:
         assert block.ref_cnt == 2
 
-    # At this point, we should have 3 free blocks left.
-    assert manager.block_pool.free_block_queue.num_free_blocks == 3
+    # At this point, we should have 5 free blocks left.
+    assert manager.block_pool.free_block_queue.num_free_blocks == 5
 
     manager.free(req0)
     manager.free(req1)
@@ -239,14 +237,14 @@ def test_prefill_plp():
     # All blocks should be available.
     assert manager.block_pool.free_block_queue.num_free_blocks == 10
     # The order should be
-    # [unallocated (8, 9, 10)]
-    # [unique_req0 (5, 4)]
-    # [unique_req1 (7, 6)]
+    # [unallocated (6, 7, 8, 9, 10)]
+    # [unique_req0 (4)]
+    # [unique_req1 (5)]
     # [common (3, 2, 1)]
     assert [
         b.block_id
         for b in manager.block_pool.free_block_queue.get_all_free_blocks()
-    ] == [8, 9, 10, 5, 4, 7, 6, 3, 2, 1]
+    ] == [6, 7, 8, 9, 10, 4, 5, 3, 2, 1]
 
     # Request #2 is a prompt-logprobs request:
     # NO cache hit in the common prefix; duplicates request #0 cached blocks
@@ -262,7 +260,7 @@ def test_prefill_plp():
     block_ids = [b.block_id for b in blocks]
     # Duplicate cached blocks have different ids but same hashes vs request #0
     assert [b.block_hash for b in blocks] == req0_block_hashes
-    assert block_ids != [1, 2, 3, 4, 5]
+    assert block_ids != [1, 2, 3, 4]
 
     # Request #2 block hashes are valid since request #0 hashes are.
     # Check block reference counts.
@@ -277,7 +275,6 @@ def test_decode():
         make_kv_cache_config(16, 11),
         max_model_len=8192,
         enable_caching=True,
-        num_preallocate_tokens=16,
     )
 
     # Complete 3 blocks (48 tokens)
@@ -291,7 +288,7 @@ def test_decode():
     assert not computed_blocks
     assert num_computed_tokens == 0
     blocks = manager.allocate_slots(req0, 55, computed_blocks)
-    assert [b.block_id for b in blocks] == [1, 2, 3, 4, 5]
+    assert [b.block_id for b in blocks] == [1, 2, 3, 4]
 
     # Append slots without allocating a new block.
     req0.num_computed_tokens = 55
@@ -299,28 +296,18 @@ def test_decode():
         req0.append_output_token_ids(8)
     new_blocks = manager.allocate_slots(req0, 4)
     assert new_blocks is not None and len(new_blocks) == 0
-    assert manager.req_to_blocks[req0.request_id][-2].block_hash is None
+    assert manager.req_to_blocks[req0.request_id][-1].block_hash is None
 
-    # Append slots without allocating a new block, but start using the
-    # preallocated block.
+    # Append slots with allocating a new block.
     req0.num_computed_tokens = 59
-    # 6 tokens to fill the previous block, and 10 tokens to fill
+    # 9 tokens to fill the previous block, and 10 tokens to fill
     # the preallocated block.
-    for _ in range(5 + 10):
+    for _ in range(9 + 10):
         req0.append_output_token_ids(7)
-    new_blocks = manager.allocate_slots(req0, 15)
-    assert new_blocks is not None and len(new_blocks) == 0
+    new_blocks = manager.allocate_slots(req0, 19)
+    assert new_blocks is not None and len(new_blocks) == 1
     assert manager.req_to_blocks[req0.request_id][-2].block_hash is not None
-
-    # Append slots with allocating a new block.
-    req0.num_computed_tokens = 74
-    # 6 tokens to fill the previous block, and 10 tokens to fill
-    # the preallocated block.
-    for _ in range(6 + 11):
-        req0.append_output_token_ids(12)
-    new_blocks = manager.allocate_slots(req0, 17)
-    # Plus one preallocated block.
-    assert new_blocks is not None and len(new_blocks) == 2
+    assert manager.req_to_blocks[req0.request_id][-1].block_hash is None
 
 
 def test_evict():
@@ -328,7 +315,6 @@ def test_evict():
         make_kv_cache_config(16, 11),
         max_model_len=8192,
         enable_caching=True,
-        num_preallocate_tokens=16,
     )
 
     last_token_id = 5 * 16 + 7
@@ -337,7 +323,7 @@ def test_evict():
     assert not computed_blocks
     assert num_computed_tokens == 0
     blocks = manager.allocate_slots(req0, 5 * 16 + 7, computed_blocks)
-    assert len(blocks) == 7  # 5 full + 1 partial + 1 preallocated
+    assert len(blocks) == 6  # 5 full + 1 partial
 
     # 3 blocks.
     req1 = make_request("1", list(range(last_token_id,
@@ -349,7 +335,8 @@ def test_evict():
     assert len(blocks) == 3  # 3 full blocks
     last_token_id += 3 * 16
 
-    assert manager.block_pool.free_block_queue.num_free_blocks == 0
+    # 10 - (6 + 3) == 1
+    assert manager.block_pool.free_block_queue.num_free_blocks == 1
 
     manager.free(req0)
     manager.free(req1)
@@ -357,7 +344,7 @@ def test_evict():
     assert [
         b.block_id
         for b in manager.block_pool.free_block_queue.get_all_free_blocks()
-    ] == [7, 6, 5, 4, 3, 2, 1, 10, 9, 8]
+    ] == [10, 6, 5, 4, 3, 2, 1, 9, 8, 7]
 
     # Touch the first 2 blocks.
     req2 = make_request("2", list(range(2 * 16 + 3)))
@@ -365,8 +352,8 @@ def test_evict():
     assert [b.block_id for b in computed_blocks] == [1, 2]
     assert num_computed_tokens == 2 * 16
     blocks = manager.allocate_slots(req2, 3, computed_blocks)
-    assert [b.block_id for b in blocks] == [7, 6]
-    assert manager.block_pool.free_block_queue.num_free_blocks == 6
+    assert [b.block_id for b in blocks] == [10]
+    assert manager.block_pool.free_block_queue.num_free_blocks == 7
 
 
 def test_hash_block_correct_reuse():
@@ -379,7 +366,6 @@ def test_hash_block_correct_reuse():
         make_kv_cache_config(16, 2),
         max_model_len=8192,
         enable_caching=True,
-        num_preallocate_tokens=0,
     )
 
     # Allocate 1 block and cache it.
@@ -416,7 +402,6 @@ def test_computed_blocks_not_evicted():
         make_kv_cache_config(block_size, 3),
         max_model_len=8192,
         enable_caching=True,
-        num_preallocate_tokens=0,
     )
 
     # Allocate a block and cache it.
@@ -465,7 +450,6 @@ def test_basic_prefix_caching_disabled():
         make_kv_cache_config(block_size, 5),
         max_model_len=8192,
         enable_caching=False,
-        num_preallocate_tokens=0,
     )
 
     req1 = make_request("1", list(range(10)))  # 2 blocks and some more
@@ -496,40 +480,6 @@ def test_basic_prefix_caching_disabled():
     assert not blocks
 
 
-@pytest.mark.parametrize("num_preallocate_tokens", list(range(0, 8)))
-@pytest.mark.parametrize("block_size", [4])
-def test_preallocate_blocks(num_preallocate_tokens: int, block_size: int):
-    """
-    This tests that the preallocated blocks are correctly added.
-    """
-    manager = KVCacheManager(
-        make_kv_cache_config(block_size, 11),
-        max_model_len=8192,
-        enable_caching=True,
-        num_preallocate_tokens=num_preallocate_tokens,
-    )
-    num_preallocated_blocks = cdiv(num_preallocate_tokens, block_size)
-
-    req = make_request("0", list(range(block_size * 30)))
-    computed_blocks, num_computed_tokens = manager.get_computed_blocks(req)
-    assert not computed_blocks
-    assert num_computed_tokens == 0
-    # Just ask for 1 block.
-    blocks = manager.allocate_slots(req, block_size, computed_blocks)
-    req.num_computed_tokens = block_size
-    assert len(blocks) == 1 + num_preallocated_blocks
-
-    # Assume all computed, only when num_preallocate_tokens > 0, we need to
-    # consume the previously preallocated blocks.
-    if num_preallocated_blocks > 0:
-        manager.allocate_slots(req, block_size * (len(blocks) - 1))
-        req.num_computed_tokens = block_size * len(blocks)
-
-    # Append 1 block.
-    blocks = manager.allocate_slots(req, block_size)
-    assert len(blocks) == 1 + num_preallocated_blocks
-
-
 @pytest.mark.parametrize("hash_fn", [sha256, hash])
 def test_cache_blocks(hash_fn):
     """
@@ -588,7 +538,6 @@ def test_mm_prefix_caching():
         make_kv_cache_config(16, 11),
         max_model_len=8192,
         enable_caching=True,
-        num_preallocate_tokens=16,
     )
 
     # Common prompt tokens (T is text tokens and P is image placeholder tokens)
@@ -626,7 +575,7 @@ def test_mm_prefix_caching():
     assert block_hashes[2].extra_keys == ("bbb", )
 
     blocks = manager.allocate_slots(req0, 59, computed_blocks)
-    assert [b.block_id for b in blocks] == [1, 2, 3, 4, 5]
+    assert [b.block_id for b in blocks] == [1, 2, 3, 4]
     req0.num_computed_tokens = 59
 
     # Append slots without allocating a new block.
@@ -667,7 +616,6 @@ def test_prefill_not_enough_free_blocks_with_computed_blocks():
         make_kv_cache_config(block_size, 11),
         max_model_len=8192,
         enable_caching=True,
-        num_preallocate_tokens=0,
     )
     # Complete 3 blocks (48 tokens)
     # | Common-0 | Common-1 | Common-2 | ... |
@@ -721,7 +669,6 @@ def test_reset_prefix_cache():
         make_kv_cache_config(16, 11),
         max_model_len=8192,
         enable_caching=True,
-        num_preallocate_tokens=0,
     )
 
     full_block_token_ids = [i for i in range(3) for _ in range(16)]
diff --git a/tests/v1/core/test_scheduler.py b/tests/v1/core/test_scheduler.py
index f173344344f9..560a60a81446 100644
--- a/tests/v1/core/test_scheduler.py
+++ b/tests/v1/core/test_scheduler.py
@@ -804,20 +804,17 @@ def _assert_right_kv_cache_manager(
     """Check whether KVCacheManager is correct after allocate."""
 
     # Make sure the request stats are right.
-    EXPECTED_ACTUAL_BLOCKS = num_tokens // block_size
-    EXPECTED_TOTAL_BLOCKS = (EXPECTED_ACTUAL_BLOCKS +
-                             scheduler.kv_cache_manager.num_preallocate_blocks)
+    EXPECTED_TOTAL_BLOCKS = num_tokens // block_size
     for req_id in req_ids:
         blocks = scheduler.kv_cache_manager.req_to_blocks[req_id]
         hashes = scheduler.kv_cache_manager.req_to_block_hashes[req_id]
         assert (scheduler.kv_cache_manager.num_cached_block[req_id] ==
-                EXPECTED_ACTUAL_BLOCKS)
+                EXPECTED_TOTAL_BLOCKS)
         assert len(blocks) == EXPECTED_TOTAL_BLOCKS
-        assert len(hashes) == EXPECTED_ACTUAL_BLOCKS
+        assert len(hashes) == EXPECTED_TOTAL_BLOCKS
 
     # Make sure we actually touched all the blocks.
-    BLOCKS_PER_REQ = (num_tokens / block_size +
-                      scheduler.kv_cache_manager.num_preallocate_blocks)
+    BLOCKS_PER_REQ = num_tokens / block_size
     assert (scheduler.kv_cache_manager.block_pool.get_num_free_blocks() ==
             num_total_blocks - num_requests * BLOCKS_PER_REQ)
 
@@ -1052,7 +1049,6 @@ def test_kv_connector_handles_preemption():
         block_size=BLOCK_SIZE,
         num_blocks=NUM_BLOCKS,
     )
-    scheduler.kv_cache_manager.num_preallocate_blocks = 0
 
     NUM_MATCHED_NEW_TOKENS = BLOCK_SIZE
     scheduler.connector.get_num_new_matched_tokens = Mock(name="method")
diff --git a/vllm/v1/core/kv_cache_manager.py b/vllm/v1/core/kv_cache_manager.py
index c3c83baf5129..354300d3c2fe 100644
--- a/vllm/v1/core/kv_cache_manager.py
+++ b/vllm/v1/core/kv_cache_manager.py
@@ -25,7 +25,6 @@ def __init__(
         max_model_len: int,
         enable_caching: bool = True,
         caching_hash_algo: str = "builtin",
-        num_preallocate_tokens: int = 64,
         log_stats: bool = False,
     ) -> None:
         assert len(kv_cache_config.kv_cache_groups) == 1, (
@@ -42,22 +41,8 @@ def __init__(
         self.log_stats = log_stats
         # FIXME: make prefix cache stats conditional on log_stats
         self.prefix_cache_stats = PrefixCacheStats() if log_stats else None
-        # NOTE(woosuk): To avoid frequent block allocation, we preallocate some
-        # blocks for each request. For example, when a request reaches the end
-        # of its block table, we preallocate N blocks in advance. This way, we
-        # reduce the overhead of updating free_block_ids and ref_cnts for each
-        # request every step (at the cost of some memory waste).
-        # NOTE(woosuk): This is different from the "lookahead" slots since this
-        # does not guarantee that the request always has N empty blocks. After
-        # the request gets N empty blocks, it starts to use the blocks without
-        # further allocation. When it uses up all the N empty blocks, it gets
-        # N new empty blocks.
-        self.num_preallocate_tokens = num_preallocate_tokens
-        self.num_preallocate_blocks = cdiv(num_preallocate_tokens,
-                                           self.block_size)
 
         self.block_pool = BlockPool(self.num_gpu_blocks, enable_caching)
-
         self.specialized_manager = get_specialized_manager(
             kv_cache_spec=kv_cache_spec,
             block_pool=self.block_pool,
@@ -256,13 +241,9 @@ def allocate_slots(
             # No new block is needed.
             new_blocks = []
         else:
-            # Get new blocks from the free block pool considering
-            # preallocated blocks.
-            num_preallocate_blocks = max(
-                0, self.num_preallocate_blocks -
-                num_lookahead_tokens // self.block_size)
+            # Get new blocks from the free block pool.
             num_new_blocks = min(
-                num_new_blocks + num_preallocate_blocks,
+                num_new_blocks,
                 self.block_pool.get_num_free_blocks(),
                 # Should not exceed the maximum number of blocks per request.
                 # This is especially because the block table has the shape
diff --git a/vllm/v1/core/sched/scheduler.py b/vllm/v1/core/sched/scheduler.py
index 16efc42f212e..5adcdde5bcd7 100644
--- a/vllm/v1/core/sched/scheduler.py
+++ b/vllm/v1/core/sched/scheduler.py
@@ -358,8 +358,11 @@ def schedule(self) -> SchedulerOutput:
                     new_encoder_budget = encoder_budget
 
                 new_blocks = self.kv_cache_manager.allocate_slots(
-                    request, num_new_tokens + num_external_tokens,
-                    computed_blocks)
+                    request,
+                    num_new_tokens + num_external_tokens,
+                    computed_blocks,
+                    num_lookahead_tokens=self.num_lookahead_tokens,
+                )
                 if new_blocks is None:
                     # The request cannot be scheduled.
                     break