diff --git a/src/transformers/generation/configuration_utils.py b/src/transformers/generation/configuration_utils.py
index 641201ef384f..21c3fa442e49 100644
--- a/src/transformers/generation/configuration_utils.py
+++ b/src/transformers/generation/configuration_utils.py
@@ -457,7 +457,8 @@ def __init__(self, **kwargs):
         self.compile_config = kwargs.pop("compile_config", None)
         self.disable_compile = kwargs.pop("disable_compile", None)
 
-        self.continuous_batching_config = kwargs.pop("continuous_batching_config", None)
+        # Continuous batching config is runtime/hardware-specific and lives beside `GenerationConfig`.
+        kwargs.pop("continuous_batching_config", None)
 
         # Deprecated (moved to the Hub). TODO remove for v5
         self.low_memory = kwargs.pop("low_memory", None)
@@ -1798,6 +1799,11 @@ class ContinuousBatchingConfig:
     max_cached_graphs: int | None = None
 
     def __post_init__(self):
+        if isinstance(self.varlen_compile_config, dict):
+            self.varlen_compile_config = CompileConfig(**self.varlen_compile_config)
+        if isinstance(self.decode_compile_config, dict):
+            self.decode_compile_config = CompileConfig(**self.decode_compile_config)
+
         # Only turn off graph mixing support if TP is on
         graph_mixing_supported = os.environ.get("NCCL_GRAPH_MIXING_SUPPORT", "1") == "1"
         distributed = int(os.environ.get("WORLD_SIZE", "1")) > 1
diff --git a/src/transformers/generation/continuous_batching/continuous_api.py b/src/transformers/generation/continuous_batching/continuous_api.py
index 1c405a287a18..882416880345 100644
--- a/src/transformers/generation/continuous_batching/continuous_api.py
+++ b/src/transformers/generation/continuous_batching/continuous_api.py
@@ -1104,10 +1104,7 @@ def init_continuous_batching(
 
         # Retrieve continuous batching config, or create it if none is provided
         if continuous_batching_config is None:
-            if isinstance(getattr(gen_config, "continuous_batching_config", None), ContinuousBatchingConfig):
-                continuous_batching_config = gen_config.continuous_batching_config
-            else:
-                continuous_batching_config = ContinuousBatchingConfig()
+            continuous_batching_config = ContinuousBatchingConfig()
 
         # Create and return the manager
         return ContinuousBatchingManager(
diff --git a/tests/generation/test_configuration_utils.py b/tests/generation/test_configuration_utils.py
index 36ddf4844d54..ea1f1fc012d4 100644
--- a/tests/generation/test_configuration_utils.py
+++ b/tests/generation/test_configuration_utils.py
@@ -18,11 +18,19 @@
 import tempfile
 import unittest
 import warnings
+from dataclasses import asdict
 
 from huggingface_hub import create_pull_request
 from parameterized import parameterized
 
-from transformers import AutoConfig, GenerationConfig, WatermarkingConfig, is_torch_available
+from transformers import (
+    AutoConfig,
+    CompileConfig,
+    ContinuousBatchingConfig,
+    GenerationConfig,
+    WatermarkingConfig,
+    is_torch_available,
+)
 from transformers import logging as transformers_logging
 
 
@@ -755,6 +763,33 @@ def test_serialize_generation_watermarking_config(self):
         self.assertEqual(watermark.seeding_scheme, seeding_scheme)
         self.assertEqual(watermark.context_width, context_width)
 
+    def test_continuous_batching_config_from_dict(self):
+        """Tests that ContinuousBatchingConfig round-trips nested CompileConfig parameters."""
+        continuous_batching_config = ContinuousBatchingConfig(
+            block_size=128,
+            default_compile_level=2,
+            varlen_compile_config=CompileConfig(dynamic=True),
+            decode_compile_config=CompileConfig(mode="default"),
+        )
+        new_config = ContinuousBatchingConfig(**asdict(continuous_batching_config))
+
+        self.assertEqual(new_config.block_size, 128)
+        self.assertEqual(new_config.default_compile_level, 2)
+        self.assertIsInstance(new_config.varlen_compile_config, CompileConfig)
+        self.assertTrue(new_config.varlen_compile_config.dynamic)
+        self.assertNotIn("_compile_all_devices", new_config.varlen_compile_config.to_dict())
+        self.assertIsInstance(new_config.decode_compile_config, CompileConfig)
+        self.assertEqual(new_config.decode_compile_config.mode, "default")
+
+    def test_generation_config_does_not_serialize_continuous_batching_config(self):
+        """Tests that ContinuousBatchingConfig lives beside GenerationConfig."""
+        continuous_batching_config = ContinuousBatchingConfig(block_size=128)
+        generation_config = GenerationConfig(continuous_batching_config=continuous_batching_config)
+
+        self.assertFalse(hasattr(generation_config, "continuous_batching_config"))
+        self.assertNotIn("continuous_batching_config", generation_config.to_dict())
+        self.assertNotIn("continuous_batching_config", generation_config.to_json_string())
+
 
 @is_staging_test
 class ConfigPushToHubTester(unittest.TestCase):