diff --git a/python/sglang/srt/distributed/device_communicators/custom_all_reduce.py b/python/sglang/srt/distributed/device_communicators/custom_all_reduce.py
index b14211e17..8a9d4dd13 100644
--- a/python/sglang/srt/distributed/device_communicators/custom_all_reduce.py
+++ b/python/sglang/srt/distributed/device_communicators/custom_all_reduce.py
@@ -344,6 +344,8 @@ def dispatch_custom_allreduce():
 
     On CUDA, the JIT-compiled v2 implementation is used by default.
     Set SGLANG_OPT_USE_CUSTOM_ALL_REDUCE_V2=0 to fall back to the legacy CustomAllreduce.
+    Note: ``ServerArgs._handle_environment_variables`` forces this env to "0" when
+    ``nnodes > 1`` since custom AR is intra-node only.
     """
     if _is_cuda and envs.SGLANG_OPT_USE_CUSTOM_ALL_REDUCE_V2.get():
         from .custom_all_reduce_v2 import CustomAllReduceV2
diff --git a/python/sglang/srt/server_args.py b/python/sglang/srt/server_args.py
index 4a1fe0540..7d1ff0e31 100644
--- a/python/sglang/srt/server_args.py
+++ b/python/sglang/srt/server_args.py
@@ -4012,6 +4012,16 @@ class ServerArgs:
         envs.SGLANG_ENABLE_DETERMINISTIC_INFERENCE.set(
             "1" if self.enable_deterministic_inference else "0"
         )
+        # Custom all-reduce v2 uses IPC handles and is intra-node only. Force-disable
+        # on multi-node so the dispatch falls back to the legacy CustomAllreduce path.
+        if self.nnodes > 1 and envs.SGLANG_OPT_USE_CUSTOM_ALL_REDUCE_V2.get():
+            if envs.SGLANG_OPT_USE_CUSTOM_ALL_REDUCE_V2.is_set():
+                logger.warning(
+                    "Disabling SGLANG_OPT_USE_CUSTOM_ALL_REDUCE_V2 because nnodes=%d "
+                    "(custom all-reduce v2 is intra-node only).",
+                    self.nnodes,
+                )
+            envs.SGLANG_OPT_USE_CUSTOM_ALL_REDUCE_V2.set("0")
         if self.debug_cuda_graph:
             if not is_cuda():
                 logger.warning(