diff --git a/tests/pytorch/test_sanity.py b/tests/pytorch/test_sanity.py
index 033a6a7ffb..d47bc553b0 100644
--- a/tests/pytorch/test_sanity.py
+++ b/tests/pytorch/test_sanity.py
@@ -585,10 +585,19 @@ def test_sanity_linear_with_zero_tokens(dtype, bs, model, fp8_recipe, fp8_model_
 @pytest.mark.parametrize("fp8_recipe", fp8_recipes)
 @pytest.mark.parametrize("fp8_model_params", all_boolean)
 @pytest.mark.parametrize("use_bias", all_boolean)
+@pytest.mark.parametrize("single_param", all_boolean)
 @pytest.mark.parametrize("empty_split", ["first", "last", "middle"])
 @pytest.mark.parametrize("num_gemms", [4])
 def test_sanity_grouped_linear(
-    dtype, bs, model, fp8_recipe, fp8_model_params, use_bias, num_gemms, empty_split
+    dtype,
+    bs,
+    model,
+    fp8_recipe,
+    fp8_model_params,
+    use_bias,
+    single_param,
+    num_gemms,
+    empty_split,
 ):
     if NVTE_TEST_NVINSPECT_ENABLED and fp8_model_params:
         pytest.skip("FP8 model parameters are not supported in debug mode.")
@@ -598,6 +607,9 @@ def test_sanity_grouped_linear(
     bs = bs * 16
     num_tokens = bs * config.max_seqlen_q * (num_gemms - 1)
 
+    if single_param:
+        os.environ["NVTE_ALLOC_CONTIGUOUS_GROUPED_LINEAR_WEIGHTS"] = "1"
+
     if fp8_recipe is not None:
         if not is_fp8_supported(config):
             pytest.skip("Model config does not support FP8")
@@ -617,7 +629,8 @@ def test_sanity_grouped_linear(
     # Verify that weights are stored in contiguous GroupedTensor storage.
     weights = [getattr(te_grouped_linear, f"weight{i}") for i in range(num_gemms)]
     if fp8_recipe is None or not (fp8_recipe.delayed() or fp8_recipe.float8_current_scaling()):
-        check_grouped_tensor_pointers(weights, fp8_recipe)
+        if single_param:
+            check_grouped_tensor_pointers(weights, fp8_recipe)
 
     inp_hidden_states = torch.randn(
         num_tokens, config.hidden_size, dtype=dtype, requires_grad=True
@@ -636,6 +649,9 @@ def test_sanity_grouped_linear(
     loss.backward()
     assert out.shape == (num_tokens, ffn_hidden_size)
 
+    if single_param:
+        del os.environ["NVTE_ALLOC_CONTIGUOUS_GROUPED_LINEAR_WEIGHTS"]
+
 
 @pytest.mark.parametrize("dtype", param_types)
 @pytest.mark.parametrize("fp8_recipe", fp8_recipes)
diff --git a/transformer_engine/pytorch/module/grouped_linear.py b/transformer_engine/pytorch/module/grouped_linear.py
index b6596bc2e9..2f859e748b 100644
--- a/transformer_engine/pytorch/module/grouped_linear.py
+++ b/transformer_engine/pytorch/module/grouped_linear.py
@@ -6,6 +6,7 @@
 from typing import Union, Optional, Callable, Tuple, List
 from itertools import chain
 import warnings
+import os
 
 import functools
 import torch
@@ -793,7 +794,9 @@ def make_grouped_weights(self, defer_init=False) -> None:
 
     def reset_parameters(self, defer_init=False):
         super().reset_parameters(defer_init=defer_init)
-        self.make_grouped_weights(defer_init=defer_init)
+        # Grouped tensor weights is an opt-in feature.
+        if bool(int(os.getenv("NVTE_ALLOC_CONTIGUOUS_GROUPED_LINEAR_WEIGHTS", "0"))):
+            self.make_grouped_weights(defer_init=defer_init)
 
     def set_tensor_parallel_attributes(self, defer_init=False) -> None:
         """Set attributes needed for TP"""