diff --git a/core/config/generic_defaults.go b/core/config/generic_defaults.go
new file mode 100644
index 000000000..57cfba514
--- /dev/null
+++ b/core/config/generic_defaults.go
@@ -0,0 +1,115 @@
+package config
+
+import "os"
+
+// ApplyGenericDefaults fills the generic fallback values applied after the
+// higher-priority tiers (ApplyInferenceDefaults for the model family,
+// ApplyHardwareDefaults for the device, ApplyServingDefaults for serving
+// policy): sampling parameters and a few runtime flags. Like the other tiers it
+// only fills values still left unset, so model-family / explicit config wins.
+func ApplyGenericDefaults(cfg *ModelConfig) {
+	if cfg == nil {
+		return
+	}
+
+	// https://github.com/ggerganov/llama.cpp/blob/75cd4c77292034ecec587ecb401366f57338f7c0/common/sampling.h#L22
+	defaultTopP := 0.95
+	defaultTopK := 40
+	defaultMinP := 0.0
+	defaultTemp := 0.9
+	// https://github.com/mudler/LocalAI/issues/2780
+	defaultMirostat := 0
+	defaultMirostatTAU := 5.0
+	defaultMirostatETA := 0.1
+	defaultTypicalP := 1.0
+	defaultTFZ := 1.0
+	defaultZero := 0
+
+	trueV := true
+	falseV := false
+
+	if cfg.Seed == nil {
+		//  random number generator seed
+		defaultSeed := RAND_SEED
+		cfg.Seed = &defaultSeed
+	}
+
+	// top_k=40 is llama.cpp's sampling default and is wrong for backends whose
+	// native default differs (issue #6632). Only inject it for the llama.cpp
+	// family and the empty/auto backend; leave TopK nil for known non-llama
+	// backends (e.g. mlx, whose intended default is top_k=0) so the wire value
+	// is 0 rather than a silently-changed 40.
+	if cfg.TopK == nil && UsesLlamaSamplerDefaults(cfg.Backend) {
+		cfg.TopK = &defaultTopK
+	}
+
+	if cfg.MinP == nil {
+		cfg.MinP = &defaultMinP
+	}
+
+	if cfg.TypicalP == nil {
+		cfg.TypicalP = &defaultTypicalP
+	}
+
+	if cfg.TFZ == nil {
+		cfg.TFZ = &defaultTFZ
+	}
+
+	if cfg.MMap == nil {
+		// MMap is enabled by default
+
+		// Only exception is for Intel GPUs
+		if os.Getenv("XPU") != "" {
+			cfg.MMap = &falseV
+		} else {
+			cfg.MMap = &trueV
+		}
+	}
+
+	if cfg.MMlock == nil {
+		// MMlock is disabled by default
+		cfg.MMlock = &falseV
+	}
+
+	if cfg.TopP == nil {
+		cfg.TopP = &defaultTopP
+	}
+	if cfg.Temperature == nil {
+		cfg.Temperature = &defaultTemp
+	}
+
+	if cfg.Maxtokens == nil {
+		cfg.Maxtokens = &defaultZero
+	}
+
+	if cfg.Mirostat == nil {
+		cfg.Mirostat = &defaultMirostat
+	}
+
+	if cfg.MirostatETA == nil {
+		cfg.MirostatETA = &defaultMirostatETA
+	}
+
+	if cfg.MirostatTAU == nil {
+		cfg.MirostatTAU = &defaultMirostatTAU
+	}
+
+	if cfg.LowVRAM == nil {
+		cfg.LowVRAM = &falseV
+	}
+
+	if cfg.Embeddings == nil {
+		cfg.Embeddings = &falseV
+	}
+
+	if cfg.Reranking == nil {
+		cfg.Reranking = &falseV
+	}
+
+	if cfg.PromptCacheAll == nil {
+		// Match upstream llama.cpp's default (common/common.h: cache_prompt = true)
+		// and let cache_idle_slots / kv_unified actually do useful work; users can
+		// opt out with an explicit `prompt_cache_all: false` in the model YAML.
+		cfg.PromptCacheAll = &trueV
+	}
+}
diff --git a/core/config/generic_defaults_test.go b/core/config/generic_defaults_test.go
new file mode 100644
index 000000000..7cb080c0b
--- /dev/null
+++ b/core/config/generic_defaults_test.go
@@ -0,0 +1,36 @@
+package config_test
+
+import (
+	. "github.com/mudler/LocalAI/core/config"
+	. "github.com/onsi/ginkgo/v2"
+	. "github.com/onsi/gomega"
+)
+
+var _ = Describe("ApplyGenericDefaults (generic fallback tier)", func() {
+	It("fills sampling + runtime fallbacks when unset", func() {
+		cfg := &ModelConfig{} // empty backend uses the llama sampler defaults
+		ApplyGenericDefaults(cfg)
+		Expect(cfg.TopP).ToNot(BeNil())
+		Expect(*cfg.TopP).To(Equal(0.95))
+		Expect(*cfg.TopK).To(Equal(40))
+		Expect(*cfg.Temperature).To(Equal(0.9))
+		Expect(*cfg.MMap).To(BeTrue())
+		Expect(*cfg.MMlock).To(BeFalse())
+		Expect(*cfg.PromptCacheAll).To(BeTrue())
+	})
+
+	It("never overrides explicit values", func() {
+		tk := 7
+		tp := 0.5
+		cfg := &ModelConfig{}
+		cfg.TopK = &tk
+		cfg.TopP = &tp
+		ApplyGenericDefaults(cfg)
+		Expect(*cfg.TopK).To(Equal(7))
+		Expect(*cfg.TopP).To(Equal(0.5))
+	})
+
+	It("no-ops on nil", func() {
+		Expect(func() { ApplyGenericDefaults(nil) }).ToNot(Panic())
+	})
+})
diff --git a/core/config/hardware_defaults.go b/core/config/hardware_defaults.go
index 2ed54265f..114785ce4 100644
--- a/core/config/hardware_defaults.go
+++ b/core/config/hardware_defaults.go
@@ -111,19 +111,9 @@ func EnsureParallelOption(opts []string, gpu GPU) []string {
 }
 
 // hasParallelOption reports whether the model already sets parallel/n_parallel
-// (backend options are "name:value" strings) so we never override an explicit value.
+// so we never override an explicit value (helper shared with serving_defaults.go).
 func hasParallelOption(opts []string) bool {
-	for _, o := range opts {
-		name := o
-		if i := strings.IndexByte(o, ':'); i >= 0 {
-			name = o[:i]
-		}
-		switch strings.TrimSpace(strings.ToLower(name)) {
-		case "parallel", "n_parallel":
-			return true
-		}
-	}
-	return false
+	return backendOptionSet(opts, "parallel", "n_parallel")
 }
 
 // localGPU builds a GPU descriptor from local detection, used by SetDefaults on
diff --git a/core/config/model_config.go b/core/config/model_config.go
index 50836b99e..9586beea3 100644
--- a/core/config/model_config.go
+++ b/core/config/model_config.go
@@ -1126,107 +1126,17 @@ func (cfg *ModelConfig) SetDefaults(opts ...ConfigLoaderOption) {
 	// heuristics for the selected node's GPU before loading. Explicit config wins.
 	ApplyHardwareDefaults(cfg, localGPU())
 
-	// https://github.com/ggerganov/llama.cpp/blob/75cd4c77292034ecec587ecb401366f57338f7c0/common/sampling.h#L22
-	defaultTopP := 0.95
-	defaultTopK := 40
-	defaultMinP := 0.0
-	defaultTemp := 0.9
-	// https://github.com/mudler/LocalAI/issues/2780
-	defaultMirostat := 0
-	defaultMirostatTAU := 5.0
-	defaultMirostatETA := 0.1
-	defaultTypicalP := 1.0
-	defaultTFZ := 1.0
-	defaultZero := 0
+	// Apply serving-policy defaults (device-independent): cross-request prefix
+	// caching. Propagates to distributed nodes via the model options.
+	ApplyServingDefaults(cfg)
+
+	// Generic fallback defaults (sampling params + runtime flags), applied after
+	// the model-family / hardware / serving tiers above. Only fills unset values.
+	ApplyGenericDefaults(cfg)
 
 	trueV := true
 	falseV := false
 
-	if cfg.Seed == nil {
-		//  random number generator seed
-		defaultSeed := RAND_SEED
-		cfg.Seed = &defaultSeed
-	}
-
-	// top_k=40 is llama.cpp's sampling default and is wrong for backends whose
-	// native default differs (issue #6632). Only inject it for the llama.cpp
-	// family and the empty/auto backend; leave TopK nil for known non-llama
-	// backends (e.g. mlx, whose intended default is top_k=0) so the wire value
-	// is 0 rather than a silently-changed 40.
-	if cfg.TopK == nil && UsesLlamaSamplerDefaults(cfg.Backend) {
-		cfg.TopK = &defaultTopK
-	}
-
-	if cfg.MinP == nil {
-		cfg.MinP = &defaultMinP
-	}
-
-	if cfg.TypicalP == nil {
-		cfg.TypicalP = &defaultTypicalP
-	}
-
-	if cfg.TFZ == nil {
-		cfg.TFZ = &defaultTFZ
-	}
-
-	if cfg.MMap == nil {
-		// MMap is enabled by default
-
-		// Only exception is for Intel GPUs
-		if os.Getenv("XPU") != "" {
-			cfg.MMap = &falseV
-		} else {
-			cfg.MMap = &trueV
-		}
-	}
-
-	if cfg.MMlock == nil {
-		// MMlock is disabled by default
-		cfg.MMlock = &falseV
-	}
-
-	if cfg.TopP == nil {
-		cfg.TopP = &defaultTopP
-	}
-	if cfg.Temperature == nil {
-		cfg.Temperature = &defaultTemp
-	}
-
-	if cfg.Maxtokens == nil {
-		cfg.Maxtokens = &defaultZero
-	}
-
-	if cfg.Mirostat == nil {
-		cfg.Mirostat = &defaultMirostat
-	}
-
-	if cfg.MirostatETA == nil {
-		cfg.MirostatETA = &defaultMirostatETA
-	}
-
-	if cfg.MirostatTAU == nil {
-		cfg.MirostatTAU = &defaultMirostatTAU
-	}
-
-	if cfg.LowVRAM == nil {
-		cfg.LowVRAM = &falseV
-	}
-
-	if cfg.Embeddings == nil {
-		cfg.Embeddings = &falseV
-	}
-
-	if cfg.Reranking == nil {
-		cfg.Reranking = &falseV
-	}
-
-	if cfg.PromptCacheAll == nil {
-		// Match upstream llama.cpp's default (common/common.h: cache_prompt = true)
-		// and let cache_idle_slots / kv_unified actually do useful work; users can
-		// opt out with an explicit `prompt_cache_all: false` in the model YAML.
-		cfg.PromptCacheAll = &trueV
-	}
-
 	if threads == 0 {
 		// Threads can't be 0
 		threads = 4
diff --git a/core/config/serving_defaults.go b/core/config/serving_defaults.go
new file mode 100644
index 000000000..3b10e7000
--- /dev/null
+++ b/core/config/serving_defaults.go
@@ -0,0 +1,56 @@
+package config
+
+import (
+	"fmt"
+	"strings"
+
+	"github.com/mudler/xlog"
+)
+
+// Serving-policy model-config defaults.
+//
+// Sibling to hardware_defaults.go: those fill values driven by the target
+// *device* (Blackwell batch, VRAM-scaled parallel slots); these fill values
+// that improve multi-request / multi-user *serving* regardless of the GPU. They
+// run together from SetDefaults and only ever fill values the user left unset.
+
+// DefaultCacheReuse is the minimum shared-prefix chunk (in tokens) the backend
+// reuses across requests via KV-cache shifting. The llama.cpp backend ships this
+// disabled (n_cache_reuse = 0); we enable it so repeated prefixes (system
+// prompts, RAG context, agent scaffolds, multi-turn chat) are not recomputed.
+// This is the universally-useful part of "paged attention" (cross-request prefix
+// sharing) and needs none of the block-KV machinery.
+const DefaultCacheReuse = 256
+
+// ApplyServingDefaults fills serving-policy ModelConfig values the user left
+// unset. Currently: enable cross-request prefix caching. Explicit
+// cache_reuse/n_cache_reuse in the model options always wins.
+func ApplyServingDefaults(cfg *ModelConfig) {
+	if cfg == nil {
+		return
+	}
+	if !backendOptionSet(cfg.Options, "cache_reuse", "n_cache_reuse") {
+		cfg.Options = append(cfg.Options, fmt.Sprintf("cache_reuse:%d", DefaultCacheReuse))
+		xlog.Debug("[serving_defaults] enabling cross-request prefix cache",
+			"cache_reuse", DefaultCacheReuse)
+	}
+}
+
+// backendOptionSet reports whether the backend options already set any of names.
+// Options are "name:value" strings (or bare "name"); used so we never override
+// an explicit value. Shared with hardware_defaults.go.
+func backendOptionSet(opts []string, names ...string) bool {
+	for _, o := range opts {
+		name := o
+		if i := strings.IndexByte(o, ':'); i >= 0 {
+			name = o[:i]
+		}
+		name = strings.TrimSpace(strings.ToLower(name))
+		for _, n := range names {
+			if name == n {
+				return true
+			}
+		}
+	}
+	return false
+}
diff --git a/core/config/serving_defaults_test.go b/core/config/serving_defaults_test.go
new file mode 100644
index 000000000..2a5bba72a
--- /dev/null
+++ b/core/config/serving_defaults_test.go
@@ -0,0 +1,30 @@
+package config_test
+
+import (
+	. "github.com/mudler/LocalAI/core/config"
+	. "github.com/onsi/ginkgo/v2"
+	. "github.com/onsi/gomega"
+)
+
+var _ = Describe("Serving-policy config defaults", func() {
+	Describe("ApplyServingDefaults (cross-request prefix cache)", func() {
+		It("enables cache_reuse when unset", func() {
+			cfg := &ModelConfig{}
+			ApplyServingDefaults(cfg)
+			Expect(cfg.Options).To(ContainElement("cache_reuse:256"))
+		})
+		It("never overrides an explicit cache_reuse", func() {
+			cfg := &ModelConfig{Options: []string{"cache_reuse:0"}}
+			ApplyServingDefaults(cfg)
+			Expect(cfg.Options).To(Equal([]string{"cache_reuse:0"}))
+		})
+		It("recognizes the n_cache_reuse alias", func() {
+			cfg := &ModelConfig{Options: []string{"n_cache_reuse:512"}}
+			ApplyServingDefaults(cfg)
+			Expect(cfg.Options).To(Equal([]string{"n_cache_reuse:512"}))
+		})
+		It("no-ops on nil", func() {
+			Expect(func() { ApplyServingDefaults(nil) }).ToNot(Panic())
+		})
+	})
+})