diff --git a/src/maxtext/configs/base.yml b/src/maxtext/configs/base.yml
index 9031cf4298..259b095a09 100644
--- a/src/maxtext/configs/base.yml
+++ b/src/maxtext/configs/base.yml
@@ -218,6 +218,9 @@ load_balance_loss_weight: 0.0 # weight for the load balance loss
 use_random_routing: false # whether to use random routing for debug/test purpose
 use_custom_sort_vjp: true # whether to use a custom VJP sort for efficient backward pass processing in sparse matmul
 use_ring_of_experts: false # whether to use ring of experts for sparse matmul expert parallelism
+# If true, peel the 'expert' mesh axis off the MoE dispatch/MLP batch dim so the expert GEMM
+# stays expert-parallel (AllToAll); false keeps 'expert' on the batch dim (activation_batch_moe).
+moe_dispatch_no_expert_sharding: false
 use_ragged_sort: false # whether to use the Pallas ragged-sort kernels in the MoE permute path; valid both with and
                        # without `use_ring_of_experts` (with EP > 1). When `use_ring_of_experts=True` the kernels run
                        # inside `permute`/`unpermute`; otherwise they run inside `local_permute`/local-unpermute.
diff --git a/src/maxtext/configs/models/mixtral-8x22b.yml b/src/maxtext/configs/models/mixtral-8x22b.yml
index b6d1fc71c0..778882a5c0 100644
--- a/src/maxtext/configs/models/mixtral-8x22b.yml
+++ b/src/maxtext/configs/models/mixtral-8x22b.yml
@@ -31,3 +31,6 @@ num_experts: 8
 num_experts_per_tok: 2
 rope_max_timescale: 1_000_000
 decoder_block: "mixtral"
+# Few large experts: keep the MoE dispatch/MLP GEMM expert-parallel (AllToAll) rather than
+# letting the batch dim double-map onto 'expert' and fall back to FSDP-style collectives.
+moe_dispatch_no_expert_sharding: true
diff --git a/src/maxtext/configs/models/mixtral-8x7b.yml b/src/maxtext/configs/models/mixtral-8x7b.yml
index 9528a667c5..211030cec8 100644
--- a/src/maxtext/configs/models/mixtral-8x7b.yml
+++ b/src/maxtext/configs/models/mixtral-8x7b.yml
@@ -31,3 +31,6 @@ num_experts: 8
 num_experts_per_tok: 2
 rope_max_timescale: 1_000_000
 decoder_block: "mixtral"
+# Few large experts: keep the MoE dispatch/MLP GEMM expert-parallel (AllToAll) rather than
+# letting the batch dim double-map onto 'expert' and fall back to FSDP-style collectives.
+moe_dispatch_no_expert_sharding: true
diff --git a/src/maxtext/configs/types.py b/src/maxtext/configs/types.py
index 1eca954e53..d5173f3d3e 100644
--- a/src/maxtext/configs/types.py
+++ b/src/maxtext/configs/types.py
@@ -736,6 +736,13 @@ class MoEGeneral(BaseModel):
       False,
       description="Whether to use Ring of Experts for sparse matmul expert parallelism.",
   )
+  moe_dispatch_no_expert_sharding: bool = Field(
+      False,
+      description=(
+          "If true, shard the MoE dispatch/MLP batch dim without 'expert' so the expert GEMM "
+          "stays expert-parallel (AllToAll); false keeps 'expert' on it (activation_batch_moe)."
+      ),
+  )
   use_ragged_sort: bool = Field(
       False, description="Whether to use ragged kernel for sorting, improve performance when EP is enabled."
   )
diff --git a/src/maxtext/layers/moe.py b/src/maxtext/layers/moe.py
index 020956098c..539e6d4e05 100644
--- a/src/maxtext/layers/moe.py
+++ b/src/maxtext/layers/moe.py
@@ -43,7 +43,7 @@
 from maxtext.utils import max_utils
 from maxtext.utils import maxtext_utils
 from maxtext.utils.sharding import create_sharding, maybe_shard_with_logical, maybe_shard_with_pspec
-from maxtext.utils.sharding import logical_to_mesh_axes
+from maxtext.utils.sharding import logical_to_mesh_axes, remove_expert_from_partition_spec
 import numpy as np
 import qwix
 from qwix.contrib.sparsity import sparsity_module
@@ -624,6 +624,18 @@ def _maybe_shard_with_pspec(self, inputs, pspec: jax.sharding.PartitionSpec | No
         extra_stack_level=1,
     )
 
+  def _maybe_shard_moe_dispatch(self, inputs, logical_axis, peel_expert):
+    """Shard a MoE dispatch/MLP activation. When `peel_expert` is set, drop the 'expert'
+    mesh axis from the batch dim (index 1) so the GEMM stays expert-parallel (AllToAll)
+    instead of double-mapping E and B onto 'expert'. Each logical dim is resolved
+    independently so the shared 'expert' axis is not deduped off the expert dim before
+    the peel."""
+    if not peel_expert:
+      return self._maybe_shard_with_logical(inputs, logical_axis)
+    spec = [None if name is None else self._logical_to_mesh_axes((name,))[0] for name in logical_axis]
+    pspec = remove_expert_from_partition_spec(jax.sharding.PartitionSpec(*spec), dims_to_peel=(1,))
+    return self._maybe_shard_with_pspec(inputs, pspec)
+
   def get_expert_parallelism_size(self):
     # When expert parallelism has more than one physical axes, take product of their shapes
     if isinstance(self._expert_parallelism_name, tuple):
@@ -2170,12 +2182,18 @@ def dense_matmul(
 
     if self.config.capacity_factor > 0:
       # token dropping if needed
+      moe_peel_expert = False  # only the training dispatch/MLP path peels 'expert' from the batch dim
       if self.config.model_call_mode != "inference":
         # TODO(b/425930949): remove this pylint by refactoring the logic here.
         dispatch_mask, combine_mask = self.generate_masks(
             top_k_indices, weights  # pylint: disable=undefined-variable,possibly-used-before-assignment
         )
         mask_axes = ("activation_batch_moe", "activation_norm_length_moe", None, None)
+        # Dispatch/MLP are already expert-sharded via "activation_exp". With
+        # moe_dispatch_no_expert_sharding we peel 'expert' off the batch dim of these specs
+        # (see _maybe_shard_moe_dispatch) so the GEMM stays expert-parallel (AllToAll) instead
+        # of double-mapping E and B onto 'expert' (FSDP-style fallback).
+        moe_peel_expert = self.config.moe_dispatch_no_expert_sharding
         dispatch_axis = (
             "activation_exp",
             "activation_batch_moe",
@@ -2280,10 +2298,7 @@ def dense_matmul(
                   "activation_embed_moe",
               ),
           )
-        dispatch = self._maybe_shard_with_logical(
-            dispatch,
-            dispatch_axis,
-        )
+        dispatch = self._maybe_shard_moe_dispatch(dispatch, dispatch_axis, moe_peel_expert)
       with jax.named_scope("wi_0"):
         w0_kernel_axes = ("exp", None, "mlp")
         w0_kernel = self.maybe_all_gather_kernel_weight_in_expert_parallelism(w0_kernel, w0_kernel_axes)
@@ -2296,10 +2311,7 @@ def dense_matmul(
 
         if self.config.activations_in_float32:
           layer_w0 = layer_w0.astype(jnp.float32)
-        layer_w0 = self._maybe_shard_with_logical(
-            layer_w0,
-            mlp_axis,
-        )
+        layer_w0 = self._maybe_shard_moe_dispatch(layer_w0, mlp_axis, moe_peel_expert)
         layer_w0 = adc.checkpoint_name(adc.checkpoint_name(layer_w0, "mlpwi_0"), "moe_mlpwi_0")
       with jax.named_scope("wi_1"):
         w1_kernel_axes = ("exp", None, "mlp")
@@ -2312,10 +2324,7 @@ def dense_matmul(
           layer_w1 = layer_w1 + w1_bias
         if self.config.activations_in_float32:
           layer_w1 = layer_w1.astype(jnp.float32)
-        layer_w1 = self._maybe_shard_with_logical(
-            layer_w1,
-            mlp_axis,
-        )
+        layer_w1 = self._maybe_shard_moe_dispatch(layer_w1, mlp_axis, moe_peel_expert)
         layer_w1 = adc.checkpoint_name(adc.checkpoint_name(layer_w1, "mlpwi_1"), "moe_mlpwi_1")
       layer_multiply = self.apply_ffn_activation(layer_w0, layer_w1)
       with jax.named_scope("wo"):
diff --git a/src/maxtext/utils/sharding.py b/src/maxtext/utils/sharding.py
index 4a500e2fe1..50115cae72 100644
--- a/src/maxtext/utils/sharding.py
+++ b/src/maxtext/utils/sharding.py
@@ -732,6 +732,32 @@ def _remove_fsdp_from_partition_spec(named_sharding):
   return jax.tree.map(_remove_fsdp_from_partition_spec, sharding_tree)
 
 
+def remove_expert_from_partition_spec(pspec, dims_to_peel):
+  """Return `pspec` with the 'expert' mesh axis removed from the given dim indices.
+
+  Used by the MoE dispatch/MLP sharding: the expert dim is already sharded over the
+  'expert' mesh axis via the `activation_exp` rule, so the batch dim must not also map
+  to 'expert' (that double-maps two tensor dims onto one mesh axis and makes GSPMD fall
+  back to FSDP-style AllGather+ReduceScatter instead of expert-parallel AllToAll). Only
+  the dims listed in `dims_to_peel` (the batch dim) are modified; the expert dim is left
+  untouched. Avoids needing a separate `activation_batch_no_exp` logical rule that every
+  `custom_mesh_and_rule` set would have to redefine.
+  """
+  new_spec = list(pspec)
+  for i in dims_to_peel:
+    axis = new_spec[i]
+    if axis is None:
+      continue
+    if isinstance(axis, str):
+      new_spec[i] = None if axis == "expert" else axis
+    elif isinstance(axis, (list, tuple)):
+      filtered = tuple(a for a in axis if a != "expert")
+      new_spec[i] = filtered or None
+    else:
+      raise ValueError(f"Unsupported axis type: {type(axis)}")
+  return jax.sharding.PartitionSpec(*new_spec)
+
+
 def get_physical_spec_no_fsdp(full_logical, mesh, logical_axis_rules):
   """
   Generates a physical sharding spec for fully replicated weights.
diff --git a/tests/unit/moe_test.py b/tests/unit/moe_test.py
index 18c675948d..0c1b783492 100644
--- a/tests/unit/moe_test.py
+++ b/tests/unit/moe_test.py
@@ -30,6 +30,7 @@
 from maxtext.layers.initializers import NdInitializer, nd_dense_init, variable_to_logically_partitioned
 from maxtext.layers.quantizations import Fp8Quantization
 from maxtext.utils import maxtext_utils
+from maxtext.utils.sharding import remove_expert_from_partition_spec
 from tests.utils.test_helpers import get_test_config_path
 import pytest
 
@@ -1534,5 +1535,53 @@ def test_prefused_vs_sparse_softmax(self):
     self.assertIsNone(bias_updates)
 
 
+@pytest.mark.parametrize(
+    "model_name,override_flag",
+    [
+        ("mixtral-8x7b", None),  # opts in via model config (flag on)
+        ("mixtral-8x22b", None),  # opts in via model config (flag on)
+        ("mixtral-8x7b", False),  # force the flag off: default must keep 'expert' on the batch dim
+    ],
+)
+def test_moe_dispatch_keeps_expert_on_expert_dim(model_name, override_flag):
+  """Regression guard for the MoE dispatch/MLP expert-parallel sharding.
+
+  The expert (E) dim is always sharded by the 'expert' mesh axis (via activation_exp).
+  With moe_dispatch_no_expert_sharding the batch (B) dim must NOT also take 'expert'
+  (which would double-map two tensor dims onto one mesh axis and force an FSDP-style
+  fallback instead of expert-parallel AllToAll); with the flag off, the default keeps
+  'expert' on the batch dim. Mirrors dense_matmul's axis selection.
+  """
+  init_kwargs = {
+      "run_name": f"moe_shard_{model_name}_{override_flag}",
+      "enable_checkpointing": False,
+      "model_name": model_name,
+  }
+  if override_flag is not None:
+    init_kwargs["moe_dispatch_no_expert_sharding"] = override_flag
+    init_kwargs["override_model_config"] = True
+  cfg = pyconfig.initialize([None, get_test_config_path()], **init_kwargs)
+  rules = cfg.logical_axis_rules
+
+  def _as_set(entry):
+    if entry is None:
+      return set()
+    return {entry} if isinstance(entry, str) else set(entry)
+
+  # Mirror _maybe_shard_moe_dispatch: resolve E and batch dims independently (so the shared
+  # 'expert' axis isn't deduped off E), then peel 'expert' from the batch dim when the flag is set.
+  e_spec = nn_partitioning.logical_to_mesh_axes(("activation_exp",), rules=rules)
+  b_spec = nn_partitioning.logical_to_mesh_axes(("activation_batch_moe",), rules=rules)
+  if cfg.moe_dispatch_no_expert_sharding:
+    b_spec = remove_expert_from_partition_spec(b_spec, dims_to_peel=(0,))
+
+  e_axes, b_axes = _as_set(e_spec[0]), _as_set(b_spec[0])
+  assert "expert" in e_axes, "expert dim must be sharded by the 'expert' mesh axis"
+  if cfg.moe_dispatch_no_expert_sharding:
+    assert "expert" not in b_axes, "flag on: the batch dim must not take 'expert'"
+  else:
+    assert "expert" in b_axes, "flag off (default): the batch dim keeps 'expert' (activation_batch_moe)"
+
+
 if __name__ == "__main__":
   unittest.main()