diff --git a/nemo_rl/distributed/batched_data_dict.py b/nemo_rl/distributed/batched_data_dict.py
index 20b39f2b50..2f77598b6d 100644
--- a/nemo_rl/distributed/batched_data_dict.py
+++ b/nemo_rl/distributed/batched_data_dict.py
@@ -539,6 +539,7 @@ def _get_padded_seqlen(seqlen: int) -> int:
 
         # Group data by shard position across all chunks
         for shard_idx in range(shards):
+            shard_ranges: list[tuple[int, int]] = []
             for chunk_idx in range(num_chunks):
                 # Calculate indices for this particular sub-shard within the chunk
                 chunk_start = chunk_idx * batch_size
@@ -549,41 +550,43 @@ def _get_padded_seqlen(seqlen: int) -> int:
                     # or if shard_end calculation goes beyond total_batch_size
                     shard_start = min(shard_start, total_batch_size)
                     shard_end = min(shard_end, total_batch_size)
-                indices = torch.arange(shard_start, shard_end)
-
-                for k in data:
-                    if k not in aggregated_shards[shard_idx]:
-                        # First time seeing this key for this shard, initialize it
-                        if torch.is_tensor(data[k]):
-                            aggregated_shards[shard_idx][k] = data[k][indices].clone()
-                        elif isinstance(data[k], PackedTensor):
-                            aggregated_shards[shard_idx][k] = data[k].slice(
-                                indices.tolist()
-                            )
-                        else:
-                            aggregated_shards[shard_idx][k] = [
-                                data[k][i] for i in indices
-                            ]
-                    else:
-                        # Append to existing data - concatenate tensors or extend lists
-                        if torch.is_tensor(data[k]):
-                            aggregated_shards[shard_idx][k] = torch.cat(
-                                [
-                                    aggregated_shards[shard_idx][k],
-                                    data[k][indices].clone(),
-                                ]
-                            )
-                        elif isinstance(data[k], PackedTensor):
-                            aggregated_shards[shard_idx][k] = PackedTensor.concat(
-                                [
-                                    aggregated_shards[shard_idx][k],
-                                    data[k].slice(indices.tolist()),
-                                ]
-                            )
-                        else:
-                            aggregated_shards[shard_idx][k].extend(
-                                [data[k][i] for i in indices]
-                            )
+
+                if shard_start < shard_end:
+                    shard_ranges.append((shard_start, shard_end))
+
+            for k, v in data.items():
+                if torch.is_tensor(v):
+                    # Pre-allocate and copy each chunk once
+                    rows = sum(end - start for start, end in shard_ranges)
+                    shard_tensor = torch.empty(
+                        (rows, *v.shape[1:]),
+                        dtype=v.dtype,
+                        device=v.device,
+                    )
+                    offset = 0
+                    for start, end in shard_ranges:
+                        span = end - start
+                        shard_tensor[offset : offset + span].copy_(v[start:end])
+                        offset += span
+
+                    aggregated_shards[shard_idx][k] = shard_tensor
+                elif isinstance(v, PackedTensor):
+                    # PackedTensor is collected per chunk then concatenated once
+                    packed_slices = [
+                        v.slice(list(range(start, end))) for start, end in shard_ranges
+                    ]
+
+                    aggregated_shards[shard_idx][k] = (
+                        PackedTensor.concat(packed_slices)
+                        if packed_slices
+                        else PackedTensor.empty_like(v)
+                    )
+                else:
+                    shard_values = []
+                    for start, end in shard_ranges:
+                        shard_values.extend([v[i] for i in range(start, end)])
+
+                    aggregated_shards[shard_idx][k] = shard_values
 
         # map inputs to microbatches such that the total number tokens in
         # a microbatch is as close to (including padding tokens) 'max_tokens_per_microbatch'
diff --git a/tests/unit/distributed/test_batched_data_dict.py b/tests/unit/distributed/test_batched_data_dict.py
index 9c982c1a11..b34693df1a 100644
--- a/tests/unit/distributed/test_batched_data_dict.py
+++ b/tests/unit/distributed/test_batched_data_dict.py
@@ -506,6 +506,36 @@ def test_shard_by_batch_size_with_packed_multimodal():
     assert tuple(shards[1]["pixel_values"].as_tensor().shape) == (6, 3, 8, 8)
 
 
+def test_shard_by_batch_size_allow_uneven_empty_shards_preserve_all_keys():
+    """Empty trailing shards should preserve all keys with empty values."""
+    batch = BatchedDataDict(
+        {
+            "input_ids": torch.tensor([[1, 2, 3], [4, 5, 6]]),
+            "pixel_values": PackedTensor(
+                [torch.randn(2, 3, 8, 8), torch.randn(1, 3, 8, 8)], dim_to_pack=0
+            ),
+            "labels": [0, 1],
+        }
+    )
+
+    # total_batch_size=2, shards=4 -> trailing two shards are empty
+    shards = batch.shard_by_batch_size(shards=4, allow_uneven_shards=True)
+    assert len(shards) == 4
+
+    # Empty trailing shards should preserve all keys and use empty values.
+    for empty_shard in shards[2:]:
+        for key, original_value in batch.items():
+            assert key in empty_shard
+            shard_value = empty_shard[key]
+            if torch.is_tensor(original_value):
+                assert shard_value.shape[0] == 0
+            elif isinstance(original_value, PackedTensor):
+                assert isinstance(shard_value, PackedTensor)
+                assert shard_value.as_tensor() is None
+            else:
+                assert shard_value == []
+
+
 def test_get_multimodal_dict_mixed_content_and_device_move():
     """get_multimodal_dict should include PackedTensor and optional keys, and support device movement."""
     images = [torch.randn(2, 3, 8, 8), torch.randn(1, 3, 8, 8)]