diff --git a/python/sglang/srt/managers/schedule_policy.py b/python/sglang/srt/managers/schedule_policy.py
index 71cf68c8fb8..03634bd3913 100644
--- a/python/sglang/srt/managers/schedule_policy.py
+++ b/python/sglang/srt/managers/schedule_policy.py
@@ -20,9 +20,11 @@
 from enum import Enum, auto
 from typing import Dict, List, Optional
 
+import torch
+
 from sglang.srt.managers.schedule_batch import Req, ScheduleBatch
 from sglang.srt.mem_cache.base_prefix_cache import BasePrefixCache
-from sglang.srt.mem_cache.radix_cache import TreeNode
+from sglang.srt.mem_cache.radix_cache import RadixCache, TreeNode
 
 # Clip the estimation of max_new_tokens for the request whose max_new_tokens is very large.
 # This can prevent the server from being too conservative.
@@ -32,6 +34,21 @@
     os.environ.get("SGLANG_CLIP_MAX_NEW_TOKENS_ESTIMATION", "4096")
 )
 
+# Threshold for in-batch prefix cache.
+# If a request has a matched prefix length (against existing cache) less than this value,
+# the scheduler runs the in-batch prefix caching check for this request.
+# If we set it to -1, it means we disable in-batch prefix caching.
+IN_BATCH_PREFIX_CACHING_CHECK_THRESHOLD = int(
+    os.environ.get("IN_BATCH_PREFIX_CACHING_CHECK_THRESHOLD", "32")
+)
+
+# Threshold for in-batch prefix cache.
+# If a request has a matched prefix length (within the waiting queue) larger than this value,
+# the scheduler deprioritizes this request
+IN_BATCH_PREFIX_CACHING_DEPRIORITIZE_THRESHOLD = int(
+    os.environ.get("IN_BATCH_PREFIX_CACHING_DEPRIORITIZE_THRESHOLD", "32")
+)
+
 
 class SchedulePolicy:
     def __init__(self, policy: str, tree_cache: BasePrefixCache):
@@ -42,6 +59,11 @@ def __init__(self, policy: str, tree_cache: BasePrefixCache):
         self.policy = policy
         self.tree_cache = tree_cache
 
+        # It is used to find the matching prefix for in-batch prefix caching.
+        self.waiting_queue_radix_tree = RadixCache(
+            req_to_token_pool=None, token_to_kv_pool=None, disable=False
+        )
+
     def calc_priority(self, waiting_queue: List[Req]):
         if len(waiting_queue) > 128 and self.policy == "lpm":
             # Turn off the expensive prefix matching and sorting when the #queue is large.
@@ -52,17 +74,49 @@ def calc_priority(self, waiting_queue: List[Req]):
         # Compute matched prefix length
         prefix_computed = False
         if policy == "lpm" or policy == "dfs-weight":
+            # rid to deprioritize in the current run for in-batch prefix caching.
+            temporary_deprioritized = {}
+            self.waiting_queue_radix_tree.reset()
+
             for r in waiting_queue:
+                prefix_ids = r.adjust_max_prefix_ids()
+
                 # NOTE: the prefix_indices must always be aligned with last_node
                 r.prefix_indices, r.last_node = self.tree_cache.match_prefix(
-                    rid=r.rid, key=r.adjust_max_prefix_ids()
+                    rid=r.rid, key=prefix_ids
                 )
 
+                # NOTE(sang): This logic is for in-batch prefix caching;
+                # If there are more than 1 request that have small matching prefix from
+                # existing cache, but all those requests share the same prefix, we prefer
+                # to schedule only one of them so that we can increase the cache hit rate.
+                if len(r.prefix_indices) <= IN_BATCH_PREFIX_CACHING_CHECK_THRESHOLD:
+                    in_batch_matching_prefixes, _ = (
+                        self.waiting_queue_radix_tree.match_prefix(
+                            rid=r.rid, key=prefix_ids
+                        )
+                    )
+                    if (
+                        len(in_batch_matching_prefixes)
+                        >= IN_BATCH_PREFIX_CACHING_DEPRIORITIZE_THRESHOLD
+                    ):
+                        temporary_deprioritized[r.rid] = r
+                    else:
+                        self.waiting_queue_radix_tree.insert(
+                            prefix_ids, torch.empty(len(prefix_ids), dtype=torch.bool)
+                        )
+
             prefix_computed = True
 
         if policy == "lpm":
             # Longest Prefix Match
-            waiting_queue.sort(key=lambda x: -len(x.prefix_indices))
+            waiting_queue.sort(
+                key=lambda r: (
+                    -len(r.prefix_indices)
+                    if r.rid not in temporary_deprioritized
+                    else float("inf")
+                )
+            )
         elif policy == "fcfs":
             # first come first serve
             pass
@@ -72,6 +126,7 @@ def calc_priority(self, waiting_queue: List[Req]):
         elif policy == "random":
             random.shuffle(waiting_queue)
         elif policy == "dfs-weight":
+            # Experimental policy based on custom weights
             last_node_to_reqs = defaultdict(list)
             for req in waiting_queue:
                 last_node_to_reqs[req.last_node].append(req)