diff --git a/src/cpp/src/continuous_batching_pipeline.cpp b/src/cpp/src/continuous_batching_pipeline.cpp
index 90a141e9ee..c3fa9edb23 100644
--- a/src/cpp/src/continuous_batching_pipeline.cpp
+++ b/src/cpp/src/continuous_batching_pipeline.cpp
@@ -60,16 +60,20 @@ class ContinuousBatchingPipeline::Impl {
     ChatHistory m_history;
 
 
+    void _notify_requests_dropped_by_handle() {
+        // Notify the last time by pushing empty output
+        // This causes read_all() to unblock by adding anything to the queue
+        for (SequenceGroup::Ptr& request : m_requests) {
+            if (request->handle_dropped())
+                request->push_empty_outputs();
+        }
+    }
+
     void _free_non_running_requests() {
         std::vector<SequenceGroup::Ptr>::iterator requests_iterator = m_requests.begin();
         while (requests_iterator != m_requests.end()) {
             const auto& request = *requests_iterator;
             if(request->has_finished() || request->out_of_memory() || request->handle_dropped()) {
-                // Notify the last time even if there will be no results
-                // This causes read_all() to unblock
-                // Avoid notifying again once finished
-                if (request->out_of_memory() || request->handle_dropped())
-                    request->notify_handle();
                 for (const auto& sequence: request->get_sequences()) {
                     m_scheduler->free_sequence(sequence->get_id());
                 }
@@ -180,6 +184,7 @@ class ContinuousBatchingPipeline::Impl {
             for (size_t i = 0; i < m_requests.size(); ++i) {
                 SequenceGroup::Ptr sequence_group = m_requests[i];
                 sequence_group->set_out_of_memory();
+                sequence_group->notify_handle();
             }
             _free_non_running_requests();
             return;
@@ -231,6 +236,15 @@ class ContinuousBatchingPipeline::Impl {
             timer.end();
         }
 
+        // notify requests dropped by handle
+
+        {
+            static ManualTimer timer("notify requests dropped by handle");
+            timer.start();
+            _notify_requests_dropped_by_handle();
+            timer.end();
+        }
+
         // free non running requests for current step
 
         {
diff --git a/src/cpp/src/sequence_group.hpp b/src/cpp/src/sequence_group.hpp
index 334e3db1d6..5a49843055 100644
--- a/src/cpp/src/sequence_group.hpp
+++ b/src/cpp/src/sequence_group.hpp
@@ -474,20 +474,13 @@ class SequenceGroup {
     }
 
     void notify_handle() {
-        if (handle_dropped()) {
-            // Push anything to the queue to unblock cancelled read_all() calls
-            // When handle is dropped we do not care about any remaining data
-            push_empty_outputs();
-            return;
-        }
-
         if (out_of_memory()) {
             set_generation_status(GenerationStatus::IGNORED);
         } else if (has_finished()) {
             set_generation_status(GenerationStatus::FINISHED);
         }
-        if (m_sampling_params.is_beam_search()) {
-            // For beam search streaming is not available, so we notify only upon finishing
+        // For beam search streaming is not available, so we notify only upon finishing
+        if(m_sampling_params.is_beam_search()) {
             if (has_finished() || out_of_memory()) {
                 push_outputs();
             }