diff --git a/python/sglang/srt/managers/schedule_batch.py b/python/sglang/srt/managers/schedule_batch.py
index 2ff3b406d..e156950d9 100644
--- a/python/sglang/srt/managers/schedule_batch.py
+++ b/python/sglang/srt/managers/schedule_batch.py
@@ -1891,12 +1891,23 @@ class ScheduleBatch(ScheduleBatchDisaggregationDecodeMixin):
             # release memory and don't insert into the tree because we need the space instantly
             self.release_req(idx, len(sorted_indices), server_args)
 
+        reqs_to_abort: List[Req] = []
         if len(sorted_indices) <= 1 and not self.check_decode_mem(
             selected_indices=sorted_indices
         ):
-            # Retracting loops ends and still not enough memory
-            raise ValueError(
-                "Out of memory even after retracting all other requests in the decode batch."
+            # Even the last remaining request cannot fit in memory.
+            # Instead of crashing the scheduler, gracefully abort it.
+            last_idx = sorted_indices.pop()
+            last_req = self.reqs[last_idx]
+            last_req.to_finish = FINISH_ABORT(
+                "Out of memory even after retracting all other requests "
+                "in the decode batch. Aborting the last request.",
+                status_code=HTTPStatus.INTERNAL_SERVER_ERROR,
+            )
+            reqs_to_abort.append(last_req)
+            self.release_req(last_idx, 0, server_args)
+            logger.warning(
+                "retract_decode: aborted last request %s due to OOM", last_req.rid
             )
 
         self.filter_batch(keep_indices=sorted_indices)
@@ -1913,7 +1924,7 @@ class ScheduleBatch(ScheduleBatchDisaggregationDecodeMixin):
         )  # avoid zero division
         new_estimate_ratio = min(1.0, new_estimate_ratio)
 
-        return retracted_reqs, new_estimate_ratio, []
+        return retracted_reqs, new_estimate_ratio, reqs_to_abort
 
     def release_req(self, idx: int, remaing_req_count: int, server_args: ServerArgs):
         req = self.reqs[idx]
diff --git a/python/sglang/srt/managers/scheduler.py b/python/sglang/srt/managers/scheduler.py
index 2a4f350dd..acd507277 100644
--- a/python/sglang/srt/managers/scheduler.py
+++ b/python/sglang/srt/managers/scheduler.py
@@ -2387,7 +2387,11 @@ class Scheduler(
             for req in reqs_to_abort:
                 abort_reason: FINISH_ABORT = req.to_finish
                 self.send_to_tokenizer.send_output(
-                    AbortReq(abort_message=abort_reason.message, rid=req.rid), req
+                    AbortReq(
+                        finished_reason=abort_reason.to_json(),
+                        rid=req.rid,
+                    ),
+                    req,
                 )
 
             msg_prefix = (
@@ -2413,6 +2417,9 @@ class Scheduler(
         if batch.batch_size() < initial_bs:
             batch.batch_is_full = False
 
+        if batch.is_empty():
+            return batch
+
         # Update batch tensors
         batch.prepare_for_decode()
         return batch