diff --git a/serve/mlc_serve/engine/staging_engine_worker.py b/serve/mlc_serve/engine/staging_engine_worker.py
index dabc99fe2c..bee83665a6 100644
--- a/serve/mlc_serve/engine/staging_engine_worker.py
+++ b/serve/mlc_serve/engine/staging_engine_worker.py
@@ -222,23 +222,6 @@ def step(self) -> GenerationLoopWorkerOutput:
         self._adjust_batch()
 
         if not self.current_batch:
-            if len(self.queue) > 0:
-                LOG.warn(
-                    f"The engine has {len(self.queue)} requests to be processed in the queue, but"
-                    " none of them were added to the current batch during the execution of"
-                    " StagingEngine._adjust_batch"
-                )
-
-                hung_request_ids = []
-
-                for state in self.queue:
-                    hung_request_ids.append(state.request_id)
-                    # TODO(masahi): Proper error enum?
-                    state.validation_err = ValidationError("Canceled due to a hang")
-
-                for request_id in hung_request_ids:
-                    self.cancel_request(request_id)
-
             return result
 
         requests = self._get_requests_to_process()
@@ -337,6 +320,24 @@ def _adjust_batch(self):
                 self.cache_manager.allocate(state.request_id, num_tokens)
                 self.current_batch[state.request_id] = state
 
+            if not self.current_batch:
+                if len(self.queue) > 0:
+                    LOG.warn(
+                        f"The engine has {len(self.queue)} requests to be processed in the queue, but"
+                        " none of them were added to the current batch during the execution of"
+                        " StagingEngine._adjust_batch"
+                    )
+
+                    hung_request_ids = []
+
+                    for state in self.queue:
+                        hung_request_ids.append(state.request_id)
+                        # TODO(masahi): Proper error enum?
+                        state.validation_err = ValidationError("Canceled due to a hang")
+
+                    for request_id in hung_request_ids:
+                        self.cancel_request(request_id)
+
     def _remove_request_from_batch(self, request_id: RequestId):
         del self.current_batch[request_id]
         self.cache_manager.free(SequenceId(request_id, 0))