diff --git a/quickassist/utilities/libusdm_drv/user_space/qae_mem_common.c b/quickassist/utilities/libusdm_drv/user_space/qae_mem_common.c
index 6b1555fe..c26544a5 100644
--- a/quickassist/utilities/libusdm_drv/user_space/qae_mem_common.c
+++ b/quickassist/utilities/libusdm_drv/user_space/qae_mem_common.c
@@ -413,7 +413,7 @@ void *__qae_alloc_addr(size_t size,
                      p_ctrl_blk->virt_addr,
                      p_ctrl_blk->phy_addr,
                      p_ctrl_blk->size,
-                     __qae_hugepage_enabled());
+                     HUGE_PAGE == p_ctrl_blk->type);
 
     if (LARGE == mem_type)
     {
diff --git a/quickassist/utilities/libusdm_drv/user_space/qae_mem_hugepage_utils.h b/quickassist/utilities/libusdm_drv/user_space/qae_mem_hugepage_utils.h
index a7821ee4..2ff741f2 100644
--- a/quickassist/utilities/libusdm_drv/user_space/qae_mem_hugepage_utils.h
+++ b/quickassist/utilities/libusdm_drv/user_space/qae_mem_hugepage_utils.h
@@ -57,4 +57,7 @@ int __qae_vfio_init_hugepages(void);
 
 API_LOCAL
 int __qae_hugepage_enabled(void);
+
+API_LOCAL
+int __qae_vfio_disable_hugepages(void);
 #endif
diff --git a/quickassist/utilities/libusdm_drv/user_space/vfio/qae_mem_hugepage_utils_vfio.c b/quickassist/utilities/libusdm_drv/user_space/vfio/qae_mem_hugepage_utils_vfio.c
index 548d6686..87a8bb92 100644
--- a/quickassist/utilities/libusdm_drv/user_space/vfio/qae_mem_hugepage_utils_vfio.c
+++ b/quickassist/utilities/libusdm_drv/user_space/vfio/qae_mem_hugepage_utils_vfio.c
@@ -41,6 +41,7 @@
 #endif
 
 static bool g_hugepages_enabled = false;
+static bool g_hugepages_allocated = false;
 static size_t g_num_hugepages = 0;
 static const char sys_dir_path[] = "/sys/kernel/mm/hugepages";
 extern int vfio_container_fd;
@@ -197,10 +198,30 @@ STATIC int mem_virt2phy(const void *virtaddr, uint64_t *physaddr_ptr)
 API_LOCAL
 int __qae_vfio_init_hugepages()
 {
+    char free_hp_path[HUGEPAGE_SYSFS_PATH_SIZE] = { };
+    unsigned long free_hp = 0;
     int ret = 0;
+
     if (get_num_hugepages_per_system(HUGEPAGE_SYS_NODE))
         return -EIO;
 
+    if (g_num_hugepages > 0)
+    {
+        /*
+         * Check if any hugepages are actually free.
+         * If all hugepages are consumed (e.g. by DPDK), do not enable
+         * hugepage mode to avoid allocation failures at runtime.
+         */
+        snprintf(free_hp_path, sizeof(free_hp_path), "%s/%s/free_hugepages",
+                 sys_dir_path, HUGEPAGE_SYS_NODE);
+        if (parse_sysfs_value(free_hp_path, &free_hp) == 0 && free_hp == 0)
+        {
+            CMD_DEBUG("No free hugepages available (nr_hugepages=%zu). "
+                      "Disabling hugepage mode.\n", g_num_hugepages);
+            g_num_hugepages = 0;
+        }
+    }
+
     if (g_num_hugepages > 0)
     {
         g_hugepages_enabled = true;
@@ -224,6 +245,27 @@ int __qae_hugepage_enabled()
     return g_hugepages_enabled;
 }
 
+API_LOCAL
+int __qae_vfio_disable_hugepages()
+{
+    if (g_hugepages_allocated)
+    {
+        CMD_ERROR("Hugepage allocation failed but hugepage slabs already "
+                  "exist. Cannot fall back to regular memory.\n");
+        return 0;
+    }
+
+    CMD_DEBUG("Hugepage allocation failed, disabling hugepage mode. "
+              "Falling back to regular memory allocation.\n");
+
+    g_hugepages_enabled = false;
+    __qae_set_free_page_table_fptr(free_page_table);
+    __qae_set_loadaddr_fptr(load_addr);
+    __qae_set_loadkey_fptr(load_key);
+
+    return 1;
+}
+
 STATIC void *__qae_vfio_hugepage_mmap_addr(const size_t size)
 {
     void *addr = NULL;
@@ -350,6 +392,7 @@ dev_mem_info_t *__qae_vfio_hugepage_alloc_slab(const int fd,
         save_slab_to_tmp_list(slab);
 #endif
         /* This is required for adding into hash table.*/
+        g_hugepages_allocated = true;
         return slab;
     }
 
@@ -377,6 +420,7 @@ dev_mem_info_t *__qae_vfio_hugepage_alloc_slab(const int fd,
     slab->flag_pinned = PINNED;
 #endif
 
+    g_hugepages_allocated = true;
     return slab;
 
 error:
diff --git a/quickassist/utilities/libusdm_drv/user_space/vfio/qae_mem_utils_vfio.c b/quickassist/utilities/libusdm_drv/user_space/vfio/qae_mem_utils_vfio.c
index 21de89dd..496449d7 100644
--- a/quickassist/utilities/libusdm_drv/user_space/vfio/qae_mem_utils_vfio.c
+++ b/quickassist/utilities/libusdm_drv/user_space/vfio/qae_mem_utils_vfio.c
@@ -548,6 +548,8 @@ dev_mem_info_t *__qae_alloc_slab(const int fd,
     if (HUGE_PAGE == type)
     {
         slab = __qae_vfio_hugepage_alloc_slab(fd, size, node, type, alignment);
+        if (!slab && __qae_vfio_disable_hugepages())
+            slab = ioctl_alloc_slab(fd, size, alignment, node, SMALL);
     }
     else
     {
@@ -580,6 +582,8 @@ dev_mem_info_t *__qae_alloc_slab(const int fd,
     if (HUGE_PAGE == type)
     {
         slab = __qae_vfio_hugepage_alloc_slab(fd, size, node, type, alignment);
+        if (!slab && __qae_vfio_disable_hugepages())
+            slab = ioctl_alloc_slab(fd, size, alignment, node, SMALL);
     }
     else
     {