diff --git a/examples/offline_inference/cpu_offload_lmcache.py b/examples/offline_inference/cpu_offload_lmcache.py
new file mode 100644
index 000000000000..8211629b24ec
--- /dev/null
+++ b/examples/offline_inference/cpu_offload_lmcache.py
@@ -0,0 +1,65 @@
+# SPDX-License-Identifier: Apache-2.0
+"""
+This file demonstrates the example usage of cpu offloading
+with LMCache.
+
+Note that `pip install lmcache` is needed to run this example.
+Learn more about LMCache in https://github.com/LMCache/LMCache.
+"""
+import os
+import time
+
+from lmcache.experimental.cache_engine import LMCacheEngineBuilder
+from lmcache.integration.vllm.utils import ENGINE_NAME
+
+from vllm import LLM, SamplingParams
+from vllm.config import KVTransferConfig
+
+# LMCache-related environment variables
+# Use experimental features in LMCache
+os.environ["LMCACHE_USE_EXPERIMENTAL"] = "True"
+# LMCache is set to use 256 tokens per chunk
+os.environ["LMCACHE_CHUNK_SIZE"] = "256"
+# Enable local CPU backend in LMCache
+os.environ["LMCACHE_LOCAL_CPU"] = "True"
+# Set local CPU memory limit to 5.0 GB
+os.environ["LMCACHE_MAX_LOCAL_CPU_SIZE"] = "5.0"
+
+# This example script runs two requests with a shared prefix.
+shared_prompt = "Hello, how are you?" * 1000
+first_prompt = [
+    shared_prompt + "Hello, my name is",
+]
+second_prompt = [
+    shared_prompt + "Tell me a very long story",
+]
+
+sampling_params = SamplingParams(temperature=0, top_p=0.95, max_tokens=10)
+
+ktc = KVTransferConfig.from_cli(
+    '{"kv_connector":"LMCacheConnector", "kv_role":"kv_both"}')
+# Set GPU memory utilization to 0.8 for an A40 GPU with 40GB
+# memory. Reduce the value if your GPU has less memory.
+# Note that LMCache is not compatible with chunked prefill for now.
+llm = LLM(model="mistralai/Mistral-7B-Instruct-v0.2",
+          kv_transfer_config=ktc,
+          max_model_len=8000,
+          enable_chunked_prefill=False,
+          gpu_memory_utilization=0.8)
+
+outputs = llm.generate(first_prompt, sampling_params)
+for output in outputs:
+    generated_text = output.outputs[0].text
+    print(f"Generated text: {generated_text!r}")
+print("First request done.")
+
+time.sleep(1)
+
+outputs = llm.generate(second_prompt, sampling_params)
+for output in outputs:
+    generated_text = output.outputs[0].text
+    print(f"Generated text: {generated_text!r}")
+print("Second request done.")
+
+# Clean up lmcache backend
+LMCacheEngineBuilder.destroy(ENGINE_NAME)
diff --git a/examples/offline_inference/disaggregated_prefill_lmcache.py b/examples/offline_inference/disaggregated_prefill_lmcache.py
new file mode 100644
index 000000000000..36d343c6812e
--- /dev/null
+++ b/examples/offline_inference/disaggregated_prefill_lmcache.py
@@ -0,0 +1,130 @@
+# SPDX-License-Identifier: Apache-2.0
+"""
+This file demonstrates the example usage of disaggregated prefilling
+with LMCache.
+We will launch 2 vllm instances (GPU 0 for prefill and GPU 1 for decode),
+and launch an additional LMCache server.
+KV cache is transferred in the following manner: 
+VLLM prefill node -> LMCache server -> VLLM decode node.
+
+Note that `pip install lmcache` is needed to run this example.
+Learn more about LMCache in https://github.com/LMCache/LMCache.
+"""
+import os
+import subprocess
+import time
+from multiprocessing import Event, Process
+
+from lmcache.experimental.cache_engine import LMCacheEngineBuilder
+from lmcache.integration.vllm.utils import ENGINE_NAME
+
+from vllm import LLM, SamplingParams
+from vllm.config import KVTransferConfig
+
+# LMCache-related environment variables
+# The port to start LMCache server
+port = 8100
+# Use experimental features in LMCache
+os.environ["LMCACHE_USE_EXPERIMENTAL"] = "True"
+# LMCache is set to use 256 tokens per chunk
+os.environ["LMCACHE_CHUNK_SIZE"] = "256"
+# Disable local CPU backend in LMCache
+os.environ["LMCACHE_LOCAL_CPU"] = "False"
+# Set local CPU memory buffer limit to 5.0 GB
+os.environ["LMCACHE_MAX_LOCAL_CPU_SIZE"] = "5.0"
+# Set the remote URL for LMCache server
+os.environ["LMCACHE_REMOTE_URL"] = f"lm://localhost:{port}"
+# Set the serializer/deserializer between vllm and LMCache server
+# `naive` indicates using raw bytes of the tensor without any compression
+os.environ["LMCACHE_REMOTE_SERDE"] = "naive"
+
+
+def run_prefill(prefill_done, prompts):
+    # We use GPU 0 for prefill node.
+    os.environ["CUDA_VISIBLE_DEVICES"] = "0"
+
+    sampling_params = SamplingParams(temperature=0, top_p=0.95, max_tokens=1)
+
+    ktc = KVTransferConfig.from_cli(
+        '{"kv_connector":"LMCacheConnector","kv_role":"kv_producer","kv_rank":0,"kv_parallel_size":2}'
+    )
+    # Set GPU memory utilization to 0.8 for an A40 GPU with 40GB
+    # memory. Reduce the value if your GPU has less memory.
+    llm = LLM(model="mistralai/Mistral-7B-Instruct-v0.2",
+              kv_transfer_config=ktc,
+              max_model_len=8000,
+              gpu_memory_utilization=0.8,
+              enforce_eager=True)
+
+    #llm.generate(prompts, sampling_params)
+    outputs = llm.generate(prompts, sampling_params)
+    for output in outputs:
+        generated_text = output.outputs[0].text
+        print(f"Generated text: {generated_text!r}")
+    print("Prefill node is finished.")
+    prefill_done.set()
+
+    # Clean up lmcache backend
+    LMCacheEngineBuilder.destroy(ENGINE_NAME)
+
+
+def run_decode(prefill_done, prompts, timeout=1):
+    # We use GPU 1 for decode node.
+    os.environ["CUDA_VISIBLE_DEVICES"] = "1"
+
+    sampling_params = SamplingParams(temperature=0, top_p=0.95, max_tokens=10)
+
+    ktc = KVTransferConfig.from_cli(
+        '{"kv_connector":"LMCacheConnector","kv_role":"kv_consumer","kv_rank":1,"kv_parallel_size":2}'
+    )
+    # Set GPU memory utilization to 0.8 for an A40 GPU with 40GB
+    # of memory. Reduce the value if your GPU has less memory.
+    llm = LLM(model="mistralai/Mistral-7B-Instruct-v0.2",
+              kv_transfer_config=ktc,
+              max_model_len=8000,
+              gpu_memory_utilization=0.8,
+              enforce_eager=True)
+
+    print("Waiting for prefill node to finish...")
+    prefill_done.wait()
+    time.sleep(timeout)
+
+    outputs = llm.generate(prompts, sampling_params)
+    for output in outputs:
+        generated_text = output.outputs[0].text
+        print(f"Generated text: {generated_text!r}")
+
+    # Clean up lmcache backend
+    LMCacheEngineBuilder.destroy(ENGINE_NAME)
+
+
+def run_lmcache_server(port):
+    server_proc = subprocess.Popen([
+        "python", "-m", "lmcache.experimental.server", "localhost",
+        str(port)
+    ])
+    return server_proc
+
+
+if __name__ == "__main__":
+
+    prompts = [
+        "Hello, how are you?" * 1000,
+    ]
+
+    prefill_done = Event()
+    prefill_process = Process(target=run_prefill, args=(prefill_done, prompts))
+    decode_process = Process(target=run_decode, args=(prefill_done, prompts))
+    lmcache_server_process = run_lmcache_server(port)
+
+    # Start prefill node
+    prefill_process.start()
+
+    # Start decode node
+    decode_process.start()
+
+    # Clean up the processes
+    decode_process.join()
+    prefill_process.terminate()
+    lmcache_server_process.terminate()
+    lmcache_server_process.wait()
diff --git a/vllm/distributed/kv_transfer/kv_connector/factory.py b/vllm/distributed/kv_transfer/kv_connector/factory.py
index fe480533458b..7336c54ec8a3 100644
--- a/vllm/distributed/kv_transfer/kv_connector/factory.py
+++ b/vllm/distributed/kv_transfer/kv_connector/factory.py
@@ -48,3 +48,8 @@ KVConnectorFactory.register_connector(
     "MooncakeConnector",
     "vllm.distributed.kv_transfer.kv_connector.simple_connector",
     "SimpleConnector")
+
+KVConnectorFactory.register_connector(
+    "LMCacheConnector",
+    "vllm.distributed.kv_transfer.kv_connector.lmcache_connector",
+    "LMCacheConnector")
diff --git a/vllm/distributed/kv_transfer/kv_connector/lmcache_connector.py b/vllm/distributed/kv_transfer/kv_connector/lmcache_connector.py
new file mode 100644
index 000000000000..bf9117133af5
--- /dev/null
+++ b/vllm/distributed/kv_transfer/kv_connector/lmcache_connector.py
@@ -0,0 +1,108 @@
+# SPDX-License-Identifier: Apache-2.0
+"""
+LMCache KV Cache Connector for Distributed Machine Learning Inference
+
+The LMCacheConnector can (1) transfer KV caches between prefill vLLM worker
+(KV cache producer) and decode vLLM worker (KV cache consumer) using LMCache;
+(2) offload and share KV caches.
+"""
+
+from typing import TYPE_CHECKING, List, Tuple, Union
+
+import torch
+
+from vllm.config import VllmConfig
+from vllm.distributed.kv_transfer.kv_connector.base import KVConnectorBase
+from vllm.logger import init_logger
+from vllm.sequence import IntermediateTensors
+
+if TYPE_CHECKING:
+    from vllm.worker.model_runner import ModelInputForGPUWithSamplingMetadata
+
+logger = init_logger(__name__)
+
+
+class LMCacheConnector(KVConnectorBase):
+
+    def __init__(
+        self,
+        rank: int,
+        local_rank: int,
+        config: VllmConfig,
+    ):
+
+        self.transfer_config = config.kv_transfer_config
+        self.vllm_config = config
+
+        from lmcache.experimental.cache_engine import LMCacheEngineBuilder
+        from lmcache.integration.vllm.utils import ENGINE_NAME
+        from lmcache.integration.vllm.vllm_adapter import (
+            RetrieveStatus, StoreStatus, init_lmcache_engine,
+            lmcache_retrieve_kv, lmcache_should_store, lmcache_store_kv)
+        logger.info("Initializing LMCacheConfig under kv_transfer_config %s",
+                    self.transfer_config)
+
+        # TODO (Jiayi): Find model_config, parallel_config, and cache_config
+        self.engine = init_lmcache_engine(config.model_config,
+                                          config.parallel_config,
+                                          config.cache_config)
+        self.lmcache_engine_name = ENGINE_NAME
+        self.lmcache_engine_builder = LMCacheEngineBuilder
+
+        self.model_config = config.model_config
+        self.parallel_config = config.parallel_config
+        self.cache_config = config.cache_config
+        self.lmcache_retrieve_kv = lmcache_retrieve_kv
+        self.lmcache_store_kv = lmcache_store_kv
+        self.lmcache_should_store = lmcache_should_store
+        self.store_status = StoreStatus
+        self.retrieve_status = RetrieveStatus
+
+    def recv_kv_caches_and_hidden_states(
+        self, model_executable: torch.nn.Module,
+        model_input: "ModelInputForGPUWithSamplingMetadata",
+        kv_caches: List[torch.Tensor]
+    ) -> Tuple[Union[torch.Tensor, IntermediateTensors], bool,
+               "ModelInputForGPUWithSamplingMetadata"]:
+
+        hidden_or_intermediate_states = None
+
+        # TODO (Jiayi): Need to support chunked prefill
+        retrieve_status = self.retrieve_status.PREFILL
+
+        model_input, bypass_model_exec = self.lmcache_retrieve_kv(
+            model_executable, model_input, self.cache_config, kv_caches,
+            retrieve_status)
+
+        return hidden_or_intermediate_states, bypass_model_exec, model_input
+
+    def send_kv_caches_and_hidden_states(
+        self,
+        model_executable: torch.nn.Module,
+        model_input: "ModelInputForGPUWithSamplingMetadata",
+        kv_caches: List[torch.Tensor],
+        hidden_or_intermediate_states: Union[torch.Tensor,
+                                             IntermediateTensors],
+    ) -> None:
+        num_reqs = 0
+        seq_group_list = model_input.sampling_metadata.seq_groups
+        assert seq_group_list is not None
+        for seq_group in seq_group_list:
+            seq_ids = seq_group.seq_ids
+            for seq_id in seq_ids:
+                num_reqs += 1
+
+        # TODO (Jiayi): Only normal prefill is supported for now
+        store_status = self.lmcache_should_store(model_input)
+        self.lmcache_store_kv(
+            self.model_config,
+            self.parallel_config,
+            self.cache_config,
+            model_executable,
+            model_input,
+            kv_caches,
+            store_status,
+        )
+
+    def close(self):
+        self.lmcache_engine_builder.destroy(self.lmcache_engine_name)
diff --git a/vllm/distributed/parallel_state.py b/vllm/distributed/parallel_state.py
index 83484cd73550..86166dd5bb83 100644
--- a/vllm/distributed/parallel_state.py
+++ b/vllm/distributed/parallel_state.py
@@ -962,8 +962,8 @@ def ensure_kv_transfer_initialized(vllm_config: "VllmConfig") -> None:
         return
 
     if all([
-            vllm_config.kv_transfer_config.need_kv_parallel_group, _KV_TRANSFER
-            is None
+            vllm_config.kv_transfer_config.is_kv_transfer_instance,
+            _KV_TRANSFER is None
     ]):
         _KV_TRANSFER = kv_transfer.KVTransferAgent(
             rank=get_world_group().rank,