diff --git a/python/sglang/srt/entrypoints/grpc_server.py b/python/sglang/srt/entrypoints/grpc_server.py
index 3a879cb6a..11424676f 100644
--- a/python/sglang/srt/entrypoints/grpc_server.py
+++ b/python/sglang/srt/entrypoints/grpc_server.py
@@ -210,7 +210,10 @@ class SGLangSchedulerServicer(sglang_scheduler_pb2_grpc.SglangSchedulerServicer)
         sampling_params.normalize(tokenizer=None)
 
         # Create health check request
-        is_generation = self.scheduler_info.get("is_generation", True)
+        is_generation = self.scheduler_info.get("is_generation")
+        if is_generation is None:
+            is_generation = not self.server_args.is_embedding
+
         if is_generation:
             health_req = TokenizedGenerateReqInput(
                 rid=rid,
@@ -229,6 +232,7 @@ class SGLangSchedulerServicer(sglang_scheduler_pb2_grpc.SglangSchedulerServicer)
                 health_req.bootstrap_host = FAKE_BOOTSTRAP_HOST
                 health_req.bootstrap_room = 0
         else:
+            sampling_params.max_new_tokens = 0
             health_req = TokenizedEmbeddingReqInput(
                 rid=rid,
                 input_text="",
diff --git a/sgl-model-gateway/py_test/e2e_grpc/basic/test_embedding_server.py b/sgl-model-gateway/py_test/e2e_grpc/basic/test_embedding_server.py
new file mode 100644
index 000000000..71b6da5f4
--- /dev/null
+++ b/sgl-model-gateway/py_test/e2e_grpc/basic/test_embedding_server.py
@@ -0,0 +1,109 @@
+"""
+gRPC Router E2E Test - Embedding Server
+Test the embedding functionality of the gRPC router.
+"""
+
+import sys
+import unittest
+from pathlib import Path
+
+import openai
+
+_TEST_DIR = Path(__file__).parent
+sys.path.insert(0, str(_TEST_DIR.parent))
+from fixtures import popen_launch_workers_and_router
+from util import (
+    DEFAULT_EMBEDDING_MODEL_PATH,
+    DEFAULT_TIMEOUT_FOR_SERVER_LAUNCH,
+    DEFAULT_URL_FOR_TEST,
+    CustomTestCase,
+    kill_process_tree,
+)
+
+
+class TestEmbeddingServer(CustomTestCase):
+    """
+    Test Embedding API through gRPC router.
+    """
+
+    @classmethod
+    def setUpClass(cls):
+        cls.model = DEFAULT_EMBEDDING_MODEL_PATH
+        cls.base_url = DEFAULT_URL_FOR_TEST
+        cls.api_key = "sk-123456"
+
+        # Launch workers with --is-embedding flag
+        cls.cluster = popen_launch_workers_and_router(
+            cls.model,
+            cls.base_url,
+            timeout=DEFAULT_TIMEOUT_FOR_SERVER_LAUNCH,
+            num_workers=1,
+            tp_size=1,
+            policy="round_robin",
+            api_key=cls.api_key,
+            worker_args=["--is-embedding"],
+        )
+
+        cls.base_url += "/v1"
+
+    @classmethod
+    def tearDownClass(cls):
+        # Cleanup router and workers
+        kill_process_tree(cls.cluster["router"].pid)
+        for worker in cls.cluster.get("workers", []):
+            kill_process_tree(worker.pid)
+
+    def test_embedding(self):
+        client = openai.Client(api_key=self.api_key, base_url=self.base_url)
+
+        input_text = "Hello world"
+        response = client.embeddings.create(
+            model=self.model,
+            input=input_text,
+        )
+
+        assert response.object == "list"
+        assert len(response.data) == 1
+        embedding = response.data[0]
+        assert embedding.object == "embedding"
+        assert embedding.index == 0
+        assert len(embedding.embedding) > 0
+        assert isinstance(embedding.embedding[0], float)
+
+        # Verify usage statistics
+        assert response.usage.prompt_tokens > 0
+        assert response.usage.total_tokens == response.usage.prompt_tokens
+
+    def test_embedding_batch(self):
+        client = openai.Client(api_key=self.api_key, base_url=self.base_url)
+
+        input_texts = ["Hello world", "SGLang is fast"]
+        response = client.embeddings.create(
+            model=self.model,
+            input=input_texts,
+        )
+
+        assert len(response.data) == 1
+        assert response.data[0].index == 0
+        assert len(response.data[0].embedding) > 0
+
+    def test_embedding_dimensions(self):
+        client = openai.Client(api_key=self.api_key, base_url=self.base_url)
+
+        response1 = client.embeddings.create(
+            model=self.model,
+            input="A short text",
+        )
+        dim1 = len(response1.data[0].embedding)
+
+        response2 = client.embeddings.create(
+            model=self.model,
+            input="A much longer text to ensure dimensions match",
+        )
+        dim2 = len(response2.data[0].embedding)
+
+        assert dim1 == dim2
+
+
+if __name__ == "__main__":
+    unittest.main()
diff --git a/sgl-model-gateway/py_test/e2e_grpc/util.py b/sgl-model-gateway/py_test/e2e_grpc/util.py
index 3f85cd67d..bebe75ea4 100644
--- a/sgl-model-gateway/py_test/e2e_grpc/util.py
+++ b/sgl-model-gateway/py_test/e2e_grpc/util.py
@@ -92,6 +92,9 @@ DEFAULT_MISTRAL_FUNCTION_CALLING_MODEL_PATH = _get_model_path(
 # GPT-OSS models
 DEFAULT_GPT_OSS_MODEL_PATH = _get_model_path("openai/gpt-oss-20b")
 
+# Embedding models
+DEFAULT_EMBEDDING_MODEL_PATH = _get_model_path("intfloat/e5-mistral-7b-instruct")
+
 
 # ============================================================================
 # Process Management
diff --git a/sgl-model-gateway/src/server.rs b/sgl-model-gateway/src/server.rs
index 95595e723..86cf5d3cd 100644
--- a/sgl-model-gateway/src/server.rs
+++ b/sgl-model-gateway/src/server.rs
@@ -1,3 +1,4 @@
+/// test
 use std::{
     sync::{
         atomic::{AtomicBool, Ordering},