diff --git a/csrc/scheduler/normalization_inner_outer_utils.cpp b/csrc/scheduler/normalization_inner_outer_utils.cpp
index 511b40dec63..3e1adaf0e06 100644
--- a/csrc/scheduler/normalization_inner_outer_utils.cpp
+++ b/csrc/scheduler/normalization_inner_outer_utils.cpp
@@ -208,6 +208,7 @@ PersistentBufferStorageParams getPersistentBufferStorageParams(
   std::unordered_map<TensorView*, std::pair<int64_t, int64_t>>
       required_size_bit_regs_smem_map;
   int64_t total_smem_buffer_size_bit = 0;
+  int64_t total_regs_buffer_size_bit = 0;
   for (auto buffer : buffers) {
     int64_t buffer_size_regs_bit =
         scheduler_utils::getPersistentBufferSizeBitOfTensor(
@@ -227,8 +228,23 @@ PersistentBufferStorageParams getPersistentBufferStorageParams(
     required_size_bit_regs_smem_map[buffer] =
         std::make_pair(buffer_size_regs_bit, buffer_size_smem_bit);
     total_smem_buffer_size_bit += buffer_size_smem_bit;
+    total_regs_buffer_size_bit += buffer_size_regs_bit;
+  }
+  // Prefer shared memory persistent buffers when cached inputs are persistent,
+  // enabling efficient CpAsync or TMA direct copies from global memory to
+  // shared memory. Otherwise, register buffers are preferred to avoid the
+  // inefficient data path: gmem (input) → regs (cached input) → smem
+  // (persistent buffer) → regs (computation), where the regs → smem → regs path
+  // is redundant.
+  bool cached_inputs_are_persistent = buffer_params.project_to_input ||
+      std::all_of(buffers.begin(), buffers.end(), [](TensorView* tv) {
+                                        return tv->isFusionInput();
+                                      });
+  if (cached_inputs_are_persistent) {
+    buffer_params.smem_buffer_size_bit += total_smem_buffer_size_bit;
+  } else {
+    buffer_params.regs_buffer_size_bit += total_regs_buffer_size_bit;
   }
-  buffer_params.smem_buffer_size_bit = total_smem_buffer_size_bit;
   buffer_params.regs_buffer_size_bit +=
       partialOuterReductionBufferSizeBit(reduction_tvs, runtime_info);
   buffer_params.circular_buffered_smem_size_bit =
@@ -236,7 +252,9 @@ PersistentBufferStorageParams getPersistentBufferStorageParams(
       buffer_params.non_circular_buffered_smem_size_bit;
   if (buffer_params.regs_buffer_size_bit <= available_regs_bit &&
       buffer_params.smem_buffer_size_bit <= available_smem_bit) {
-    buffer_params.smem_persistent_buffers = buffers;
+    if (cached_inputs_are_persistent) {
+      buffer_params.smem_persistent_buffers = buffers;
+    }
     buffer_params.has_enough_regs_and_smem = true;
     return buffer_params;
   }
diff --git a/tests/cpp/test_combined_inner_outer_reduction.cpp b/tests/cpp/test_combined_inner_outer_reduction.cpp
index 31849df0b8a..0144505046b 100644
--- a/tests/cpp/test_combined_inner_outer_reduction.cpp
+++ b/tests/cpp/test_combined_inner_outer_reduction.cpp
@@ -1820,4 +1820,35 @@ TEST_F(CombinedSchedulerTest, IllegalSizeToUseTMA) {
   EXPECT_FALSE(heuristic_params->as<ReductionParams>()->tma_warp_specialized);
   testValidate(&fusion_copy, cg_outputs, {t0, t1}, __LINE__, __FILE__);
 }
+
+// Avoid using shared memory persistent buffers when cached inputs are not
+// persistent, to avoid the inefficient data path: gmem (input) → regs (cached
+// input) → smem (persistent buffer) → regs (computation), where the regs → smem
+// → regs path is redundant. The performance of this test is increased
+// from 50.5% SOL to 61.6% SOL on GB200.
+TEST_F(CombinedSchedulerTest, CachedInputsAreNotPersistentFusedReshape) {
+  auto dtype = DataType::Float;
+  constexpr auto dim0 = 2;
+  constexpr auto dim1 = 1024;
+  constexpr auto dim2 = 8192;
+  auto fusion = std::make_unique<Fusion>();
+  FusionGuard fg(fusion.get());
+  auto tv0 = makeContigTensor(3, dtype);
+  fusion->addInput(tv0);
+  auto tv1 = reshape(tv0, {dim0, dim1, dim2}, {dim0 * dim1, dim2});
+  auto tv2 = sum(tv1, {1});
+  auto tv3 = broadcast(tv2, {false, true});
+  auto tv4 = add(tv1, tv3);
+  auto tv5 = sum(tv1, {0});
+  fusion->addOutput(tv4);
+  fusion->addOutput(tv5);
+  auto fusion_copy = *fusion;
+
+  auto options =
+      at::TensorOptions().dtype(data_type_to_aten(dtype)).device(at::kCUDA, 0);
+  at::Tensor t0 = at::randn({dim0, dim1, dim2}, options);
+  FusionExecutorCache executor_cache(std::move(fusion));
+  auto cg_outputs = executor_cache.runFusionWithInputs({t0});
+  testValidate(&fusion_copy, cg_outputs, {t0}, __LINE__, __FILE__);
+}
 } // namespace nvfuser