diff --git a/tests/detokenizer/test_stop_string_while_stop_model_terminates.py b/tests/detokenizer/test_stop_string_while_stop_model_terminates.py
new file mode 100644
index 000000000000..9b32a2927f2d
--- /dev/null
+++ b/tests/detokenizer/test_stop_string_while_stop_model_terminates.py
@@ -0,0 +1,103 @@
+# SPDX-License-Identifier: Apache-2.0
+# SPDX-FileCopyrightText: Copyright contributors to the vLLM project
+
+import pytest
+
+from vllm.sampling_params import SamplingParams
+from vllm.v1.engine import EngineCoreRequest
+from vllm.v1.engine.detokenizer import BaseIncrementalDetokenizer
+
+
+@pytest.fixture(params=[True, False])
+def include_stop_str_in_output(request):
+    return request.param
+
+
+class _DummyDetokenizer(BaseIncrementalDetokenizer):
+
+    def __init__(self, request: EngineCoreRequest):
+        super().__init__(request)
+
+    def decode_next(self, next_token_id: int) -> str:
+        # Map token id to single ASCII character for deterministic testing.
+        return chr(next_token_id)
+
+
+def _make_request(stop, include_stop_str_in_output: bool, min_tokens: int = 0):
+    params = SamplingParams(
+        stop=stop,
+        include_stop_str_in_output=include_stop_str_in_output,
+        min_tokens=min_tokens)
+    # Keep other fields minimal for unit test purposes.
+    req = EngineCoreRequest(
+        request_id="test",
+        prompt_token_ids=[],
+        mm_features=None,
+        sampling_params=params,
+        pooling_params=None,
+        eos_token_id=None,
+        arrival_time=0.0,
+        lora_request=None,
+        cache_salt=None,
+        data_parallel_rank=None,
+    )
+    return req
+
+
+def test_stop_string_while_stop_token_terminates(
+        include_stop_str_in_output: bool):
+    """
+    This test verifies that the detokenizer correctly handles the case where
+    the generated token sequence contains both:
+    - a stop token
+    - an <eos> token
+    
+    The detokenizer should respect the stop string and truncate the output
+    accordingly.
+    
+    Imagine the following sequence:
+    - "abcdeZ" is generated, where "Z" is the <eos> token.
+    - "cd" is the stop string.
+    
+    If include_stop_str_in_output=False, the detokenizer should truncate the
+    output to "ab" because the stop string "cd" is excluded.
+    If include_stop_str_in_output=True, the detokenizer should include the stop
+    string "cd" in the output, resulting in "abcd".
+    
+
+    This verifies the behavioral change introduced in BaseIncrementalDetokenizer
+    where stop-string evaluation occurs before the early-return on
+    stop_terminated.
+    """
+
+    # Generate text "abcdeZ" and tokenize it.
+    generated_text = "abcde"
+    eos_token = "Z"
+    stop_string = "cd"
+    generated_text = generated_text + eos_token
+    token_ids = [ord(c) for c in generated_text]
+
+    # Create a request with the stop string and initialize the detokenizer.
+    req = _make_request(stop=[stop_string],
+                        include_stop_str_in_output=include_stop_str_in_output)
+    detok = _DummyDetokenizer(req)
+
+    # Simulate that the last token ('Z') is a stop token (stop_terminated=True).
+    result = detok.update(new_token_ids=token_ids, stop_terminated=True)
+
+    # The update should not report a stop string
+    assert result == stop_string
+
+    # Output text should reflect stop-string handling:
+    # - include_stop_str_in_output=False => exclude "cd" => "ab"
+    # - include_stop_str_in_output=True  => include "cd" => "abcd"
+    expected_text = "abcd" if include_stop_str_in_output else "ab"
+    assert detok.output_text == expected_text
+
+    # The skipped final token should still be recorded in token_ids.
+    assert detok.output_token_ids == token_ids
+
+    # get_next_output_text should return the full text when finished=True.
+    # (Buffering only applies during streaming when finished=False.)
+    assert detok.get_next_output_text(finished=True,
+                                      delta=False) == expected_text
diff --git a/vllm/v1/engine/detokenizer.py b/vllm/v1/engine/detokenizer.py
index 38f435f5166e..cf4b06db843b 100644
--- a/vllm/v1/engine/detokenizer.py
+++ b/vllm/v1/engine/detokenizer.py
@@ -121,12 +121,9 @@ class BaseIncrementalDetokenizer(IncrementalDetokenizer, ABC):
                     self.output_token_ids) <= self.min_tokens:
                 stop_check_offset = len(self.output_text)
 
-        if stop_terminated:
-            if skipped_stop_token_id is not None:
-                # Cleanup after skipping detokenization.
-                self.token_ids.append(skipped_stop_token_id)
-            # Stop token triggered; skip stop string check.
-            return None
+        if skipped_stop_token_id is not None:
+            # Cleanup after skipping detokenization.
+            self.token_ids.append(skipped_stop_token_id)
 
         # 2) Evaluate stop strings.
         stop_string = None