diff --git a/sagemaker-serve/src/sagemaker/serve/model_builder_servers.py b/sagemaker-serve/src/sagemaker/serve/model_builder_servers.py
index d4f2e0cc37..e1e9692fa4 100644
--- a/sagemaker-serve/src/sagemaker/serve/model_builder_servers.py
+++ b/sagemaker-serve/src/sagemaker/serve/model_builder_servers.py
@@ -543,18 +543,20 @@ def _build_for_djl(self) -> Model:
 
         self._auto_detect_image_uri()
 
+        # Set HF cache env vars to writable location (unconditionally, using setdefault
+        # to preserve user-provided values). This is needed because /opt/ml/model/ may be
+        # read-only when source_code artifacts are mounted there. This must happen before
+        # _prepare_for_mode, which merges the DJL server defaults (HF_HOME=/opt/ml/model/)
+        # into env_vars with setdefault.
+        self.env_vars.setdefault("HF_HOME", "/tmp")
+        self.env_vars.setdefault("HUGGINGFACE_HUB_CACHE", "/tmp")
+
         if not self._optimizing:
             if self.mode in LOCAL_MODES:
                 self._prepare_for_mode(should_upload_artifacts=True)
             else:
                 self.s3_model_data_url, _ = self._prepare_for_mode()
 
-        # Set HF cache env vars to writable location (unconditionally, using setdefault
-        # to preserve user-provided values). This is needed because /opt/ml/model/ may be
-        # read-only when source_code artifacts are mounted there.
-        self.env_vars.setdefault("HF_HOME", "/tmp")
-        self.env_vars.setdefault("HUGGINGFACE_HUB_CACHE", "/tmp")
-
         # Cache management based on mode
         if self.mode in LOCAL_MODES:
             self.env_vars.update({"HF_HUB_OFFLINE": "1"})
diff --git a/sagemaker-serve/tests/unit/servers/test_djl_hf_cache_env.py b/sagemaker-serve/tests/unit/servers/test_djl_hf_cache_env.py
index 40d3a2a1a9..910a0f199d 100644
--- a/sagemaker-serve/tests/unit/servers/test_djl_hf_cache_env.py
+++ b/sagemaker-serve/tests/unit/servers/test_djl_hf_cache_env.py
@@ -146,3 +146,59 @@ def test_local_mode_sets_hf_hub_offline(self, tmp_path):
         builder._build_for_djl()
 
         assert builder.env_vars["HF_HUB_OFFLINE"] == "1"
+
+
+def test_endpoint_build_hf_cache_is_tmp_with_real_prepare_for_mode(tmp_path):
+    """The DJL server defaults merged by _prepare_for_mode must not win over /tmp.
+
+    The tests above mock _prepare_for_mode; here it runs for real (only the S3 upload is
+    mocked), since it merges the DJL server's HF_HOME=/opt/ml/model/ defaults into env_vars.
+    """
+    builder = ModelBuilder(
+        model="test-org/test-model",
+        role_arn=MOCK_ROLE_ARN,
+        sagemaker_session=_mock_sagemaker_session(),
+        model_path=str(tmp_path),
+        mode=Mode.SAGEMAKER_ENDPOINT,
+        image_uri=MOCK_IMAGE_URI,
+        model_server=ModelServer.DJL_SERVING,
+        instance_type="ml.g5.2xlarge",
+    )
+    builder.schema_builder = Mock(
+        sample_input={"inputs": "Hello", "parameters": {}},
+        sample_output=[{"generated_text": "Hi"}],
+    )
+    builder._optimizing = False
+    # Normally initialized by build()
+    builder.modes = {}
+    builder.serve_settings = Mock(s3_model_data_url=None)
+    envs_at_create = []
+
+    with (
+        patch("sagemaker.serve.model_builder_servers._get_nb_instance", return_value=None),
+        patch(
+            "sagemaker.serve.model_builder_servers._get_model_config_properties_from_hf",
+            return_value={"num_attention_heads": 32},
+        ),
+        patch("sagemaker.serve.model_builder_servers._get_gpu_info", return_value=1),
+        patch.object(ModelBuilder, "_is_jumpstart_model_id", return_value=False),
+        patch.object(ModelBuilder, "_validate_djl_serving_sample_data"),
+        patch.object(ModelBuilder, "_auto_detect_image_uri"),
+        patch.object(
+            ModelBuilder,
+            "_create_model",
+            side_effect=lambda: envs_at_create.append(dict(builder.env_vars)),
+        ),
+        patch(
+            "sagemaker.serve.model_server.djl_serving.server.determine_bucket_and_prefix",
+            return_value=("mock-bucket", "prefix"),
+        ),
+        patch(
+            "sagemaker.serve.model_server.djl_serving.server.S3Uploader.upload",
+            return_value="s3://mock-bucket/prefix/code",
+        ),
+    ):
+        builder._build_for_djl()
+
+    assert envs_at_create[-1]["HF_HOME"] == "/tmp"
+    assert envs_at_create[-1]["HUGGINGFACE_HUB_CACHE"] == "/tmp"