diff --git a/src/exo/worker/runner/runner.py b/src/exo/worker/runner/runner.py
index 7d48ec8e..d544c265 100644
--- a/src/exo/worker/runner/runner.py
+++ b/src/exo/worker/runner/runner.py
@@ -454,8 +454,13 @@ def _run_generation_steps(
     gpt_oss_trackers: dict[CommandId, GptOssTracker],
     thinking_first_token: dict[CommandId, bool],
     tokenizer: TokenizerWrapper | None,
-) -> None:
-    """Run one TimeBudget cycle of batch generation."""
+    task_receiver: MpReceiver[Task] | None = None,
+) -> list[Task]:
+    """Run one TimeBudget cycle of batch generation.
+
+    Returns any tasks collected via early exit so the caller can process them.
+    """
+    early_tasks: list[Task] = []
     if batch_engine.has_pending_inserts:
         batch_engine.sync_and_insert_pending()
     for _ in TimeBudget(budget=0.5, group=group):  # pyright: ignore[reportArgumentType]
@@ -499,7 +504,14 @@ def _run_generation_steps(
             thinking_first_token,
             tokenizer,
         )
+        # After processing a step, check if new tasks arrived so they can be
+        # batched sooner rather than waiting for the full time budget.
+        if task_receiver is not None and not early_tasks:
+            early_tasks = task_receiver.collect()
+            if early_tasks:
+                break
     batch_engine.sync_completions()
+    return early_tasks
 
 
 def _drain_batch_engine(
@@ -605,7 +617,7 @@ def main(
             if batch_engine is not None and (
                 batch_engine.has_active_requests or batch_engine.has_pending_inserts
             ):
-                _run_generation_steps(
+                early_tasks = _run_generation_steps(
                     batch_engine,
                     event_sender,
                     device_rank,
@@ -617,6 +629,7 @@ def main(
                     gpt_oss_trackers,
                     thinking_first_token,
                     tokenizer,
+                    task_receiver,
                 )
                 # Update runner status based on remaining work
                 if batch_engine.has_active_requests:
@@ -632,8 +645,8 @@ def main(
                             runner_id=runner_id, runner_status=current_status
                         )
                     )
-                # Non-blocking poll for new tasks
-                new_tasks = task_receiver.collect()
+                # Use early-collected tasks from generation loop, plus any additional
+                new_tasks = early_tasks + task_receiver.collect()
                 if not new_tasks and batch_engine.has_active_requests:
                     continue
             else:
@@ -788,7 +801,6 @@ def main(
                         batch_engine.queue_request(
                             command_id, task.task_id, task_params
                         )
-                        batch_engine.sync_and_insert_pending()
                         in_flight_tasks[command_id] = task.task_id
 
                         # GPT-OSS: use dedicated tracker (handles thinking + tool calls)
@@ -821,6 +833,7 @@ def main(
                                 thinking_first_token[command_id] = False
                         current_status = RunnerRunning(
                             active_requests=batch_engine.active_count
+                            + batch_engine.pending_insert_count
                         )
                         event_sender.send(
                             RunnerStatusUpdated(
@@ -830,7 +843,7 @@ def main(
                         )
                         emit_task_completion = False
                         logger.info(
-                            f"runner running with {batch_engine.active_count} active requests"
+                            f"runner running with {batch_engine.active_count} active + {batch_engine.pending_insert_count} pending requests"
                         )
                     case ImageGeneration(
                         task_params=task_params, command_id=command_id
@@ -1020,6 +1033,11 @@ def main(
                     gc.collect()
                     break
             else:
+                # Batch-insert all queued requests at once for efficient prefill.
+                # By deferring sync_and_insert_pending() to here (instead of per-task),
+                # all concurrently-arrived tasks share a single prefill pass.
+                if batch_engine is not None and batch_engine.has_pending_inserts:
+                    batch_engine.sync_and_insert_pending()
                 continue
             break
 
diff --git a/src/exo/worker/tests/unittests/test_runner/test_continuous_batching_edge_cases.py b/src/exo/worker/tests/unittests/test_runner/test_continuous_batching_edge_cases.py
index f97389f5..7bd8aa05 100644
--- a/src/exo/worker/tests/unittests/test_runner/test_continuous_batching_edge_cases.py
+++ b/src/exo/worker/tests/unittests/test_runner/test_continuous_batching_edge_cases.py
@@ -102,6 +102,10 @@ class ScriptedBatchEngine:
     def has_pending_inserts(self) -> bool:
         return bool(self._pending)
 
+    @property
+    def pending_insert_count(self) -> int:
+        return len(self._pending)
+
     def step(self) -> list[BatchedGenerationResponse]:
         results: list[BatchedGenerationResponse] = []
         done: list[int] = []
@@ -174,6 +178,10 @@ class FakeBatchEngineWithTokens:
     def has_pending_inserts(self) -> bool:
         return bool(self._pending_inserts)
 
+    @property
+    def pending_insert_count(self) -> int:
+        return len(self._pending_inserts)
+
     def step(self) -> list[BatchedGenerationResponse]:
         results: list[BatchedGenerationResponse] = []
         done: list[int] = []
diff --git a/src/exo/worker/tests/unittests/test_runner/test_event_ordering.py b/src/exo/worker/tests/unittests/test_runner/test_event_ordering.py
index dd225364..0b885e93 100644
--- a/src/exo/worker/tests/unittests/test_runner/test_event_ordering.py
+++ b/src/exo/worker/tests/unittests/test_runner/test_event_ordering.py
@@ -200,6 +200,10 @@ class FakeBatchEngine:
     def has_pending_inserts(self) -> bool:
         return bool(self._pending_inserts)
 
+    @property
+    def pending_insert_count(self) -> int:
+        return len(self._pending_inserts)
+
     @property
     def active_count(self) -> int:
         return len(self._active_requests)