diff --git a/.cd/README.md b/.cd/README.md
index 0bceb6fe..270e1372 100644
--- a/.cd/README.md
+++ b/.cd/README.md
@@ -78,6 +78,7 @@ cd vllm-gaudi/.cd/
 - `VLLM_DECODE_BS_BUCKET_STEP` - Determines the batch size step for decode operations, influencing how batches are grouped and processed.
 - `VLLM_PROMPT_BS_BUCKET_STEP` - Sets the batch size step for prompt processing, impacting how prompt batches are handled.
 - `VLLM_PROMPT_SEQ_BUCKET_STEP` - Controls the step size for prompt sequence allocation, affecting how sequences are bucketed for processing.
+- `VLLM_PROMPT_CTX_BUCKET_STEP` - Controls the step size for prompt ctx allocation, affecting how ctx blocks are bucketed for processing.
 
    **Example usage:**
 
diff --git a/docs/configuration/env_vars.md b/docs/configuration/env_vars.md
index ac62d2a1..8451c7a6 100644
--- a/docs/configuration/env_vars.md
+++ b/docs/configuration/env_vars.md
@@ -53,6 +53,9 @@ Additionally, there are HPU PyTorch Bridge environment variables impacting vLLM
       - sequence length min (`VLLM_PROMPT_SEQ_BUCKET_MIN`): `block_size`
       - sequence length step (`VLLM_PROMPT_SEQ_BUCKET_STEP`): `block_size`
       - sequence length max (`VLLM_PROMPT_SEQ_BUCKET_MAX`): `max_model_len`
+      - sequence ctx min (`VLLM_PROMPT_CTX_BUCKET_MIN`): `0`
+      - sequence ctx step (`VLLM_PROMPT_CTX_BUCKET_STEP`): `1`
+      - sequence ctx max (`VLLM_PROMPT_CTX_BUCKET_MAX`): `(max_model_len - block_size) // block_size`
     - Decode:
       - batch size min (`VLLM_DECODE_BS_BUCKET_MIN`): `1`
       - batch size step (`VLLM_DECODE_BS_BUCKET_STEP`): `32`
diff --git a/vllm_gaudi/extension/bucketing/linear.py b/vllm_gaudi/extension/bucketing/linear.py
index 6d15724a..e32c6647 100644
--- a/vllm_gaudi/extension/bucketing/linear.py
+++ b/vllm_gaudi/extension/bucketing/linear.py
@@ -22,7 +22,7 @@ def get_prompt_cfgs(self, max_num_prefill_seqs, block_size, max_num_batched_toke
                                                        step=block_size,
                                                        max=max_model_len)
         max_ctx = math.ceil((max_model_len - prompt_query_bucket_cfg[0]) // block_size)
-        prompt_ctx_bucket_cfg = [0, 1, max_ctx]
+        prompt_ctx_bucket_cfg = read_bucket_settings('prompt', 'ctx', min=0, step=1, max=max_ctx)
 
         if use_merged_prefill:
             prev_prompt_bs_bucket_cfg = tuple(prompt_bs_bucket_cfg)
@@ -32,7 +32,11 @@ def get_prompt_cfgs(self, max_num_prefill_seqs, block_size, max_num_batched_toke
             prompt_bs_bucket_cfg = (1, 1, 1)
             query_min, query_step, _ = prev_prompt_query_bucket_cfg
             prompt_query_bucket_cfg = (query_min, query_step * 4, max_num_batched_tokens)
-            prompt_ctx_bucket_cfg = (0, 4, max_ctx * max_num_prefill_seqs)
+            prompt_ctx_bucket_cfg = read_bucket_settings('prompt',
+                                                         'ctx',
+                                                         min=0,
+                                                         step=4,
+                                                         max=max_ctx * max_num_prefill_seqs)
 
             msg = ('Merged prefill is enabled!\n'
                    'Overriding prompt bucketing settings!\n'
diff --git a/vllm_gaudi/extension/features.py b/vllm_gaudi/extension/features.py
index 609dfdcd..d8e1619c 100644
--- a/vllm_gaudi/extension/features.py
+++ b/vllm_gaudi/extension/features.py
@@ -23,6 +23,9 @@ def get_user_flags():
         Env('VLLM_PROMPT_SEQ_BUCKET_STEP', int),
         Env('VLLM_PROMPT_SEQ_BUCKET_MAX', int),
         Env('VLLM_PROMPT_SEQ_BUCKET_LIMIT', int),
+        Env('VLLM_PROMPT_CTX_BUCKET_MIN', int),
+        Env('VLLM_PROMPT_CTX_BUCKET_STEP', int),
+        Env('VLLM_PROMPT_CTX_BUCKET_MAX', int),
         Env('VLLM_DECODE_BS_BUCKET_MIN', int),
         Env('VLLM_DECODE_BS_BUCKET_STEP', int),
         Env('VLLM_DECODE_BS_BUCKET_MAX', int),