diff --git a/src/deepsparse/transformers/pipelines/text_generation/autoregressive_preprocess_operator.py b/src/deepsparse/transformers/pipelines/text_generation/autoregressive_preprocess_operator.py
index 0f5174e1c4..df4e587df3 100644
--- a/src/deepsparse/transformers/pipelines/text_generation/autoregressive_preprocess_operator.py
+++ b/src/deepsparse/transformers/pipelines/text_generation/autoregressive_preprocess_operator.py
@@ -51,6 +51,12 @@ def can_operate(self, inp: Any) -> bool:
         if inp.get("in_generation"):
             return True
 
+        if kv_cache.total_num_processed_tokens >= kv_cache.capacity:
+            raise RuntimeError(
+                "Not enough kv_cache capacity to run generation. Please use a larger "
+                "sequence_length or a shorter prompt"
+            )
+
         remaining_tokens = len(tokens) - kv_cache.total_num_processed_tokens
         can_process = (
             remaining_tokens > 0 and remaining_tokens < self.prompt_sequence_length
diff --git a/src/deepsparse/transformers/pipelines/text_generation/compile_generations.py b/src/deepsparse/transformers/pipelines/text_generation/compile_generations.py
index 2187e525a1..71c60a5936 100644
--- a/src/deepsparse/transformers/pipelines/text_generation/compile_generations.py
+++ b/src/deepsparse/transformers/pipelines/text_generation/compile_generations.py
@@ -17,7 +17,6 @@
 from pydantic import BaseModel, Field
 
 from deepsparse.operators import Operator
-from deepsparse.transformers.schemas.text_generation_schemas import FinishReason
 from deepsparse.utils import InferenceState
 
 
@@ -43,9 +42,6 @@ def run(self, inference_state: InferenceState, **kwargs):
         generated_logits = inference_state.current_state.get("generated_logits")
         finished_reason = inference_state.current_state.get("finished_reason")
 
-        if len(finished_reason) == 0:
-            finished_reason.append(FinishReason.LENGTH)
-
         generated_tokens = numpy.array([generated_tokens])
         generated_logits = numpy.concatenate(generated_logits, axis=1)
         return {
diff --git a/src/deepsparse/transformers/pipelines/text_generation/generate_new_token.py b/src/deepsparse/transformers/pipelines/text_generation/generate_new_token.py
index 4b32722590..97f5393129 100644
--- a/src/deepsparse/transformers/pipelines/text_generation/generate_new_token.py
+++ b/src/deepsparse/transformers/pipelines/text_generation/generate_new_token.py
@@ -19,10 +19,7 @@
 from deepsparse.transformers.pipelines.text_generation.nl_engine_operator import (
     NLEngineOutputs,
 )
-from deepsparse.transformers.schemas.text_generation_schemas import (
-    FinishReason,
-    PromptLogitsNoKVCacheInference,
-)
+from deepsparse.transformers.schemas.text_generation_schemas import FinishReason
 from deepsparse.utils import InferenceState
 
 
@@ -36,14 +33,16 @@ def __init__(
         self.force_max_tokens = force_max_tokens
         self.tokenizer = tokenizer
 
-    def can_operate(self, inp: Union[PromptLogitsNoKVCacheInference, NLEngineOutputs]):
+    def can_operate(
+        self, inp: Union[NLEngineOutputs, "PrepareForGenerationOutput"]  # noqa: F821
+    ):
         if inp.in_generation:
             return True
         return False
 
     def run(
         self,
-        inp: Union[PromptLogitsNoKVCacheInference, NLEngineOutputs],
+        inp: Union[NLEngineOutputs, "PrepareForGenerationOutput"],  # noqa: F821
         inference_state: InferenceState,
         **kwargs,
     ):
@@ -52,21 +51,26 @@ def run(
             if isinstance(inp, NLEngineOutputs)
             else inp.prompt_logits
         )
-        kv_cache = inp.kv_cache if isinstance(inp, NLEngineOutputs) else None
+        kv_cache = inp.kv_cache
+
+        max_tokens = inference_state.current_state.get("max_tokens")
+        length_finish_reason = inference_state.current_state.get("length_finish_reason")
+        generated_tokens = inference_state.current_state.get("generated_tokens")
+        num_generated_tokens = len(generated_tokens)
 
         token_generator = inference_state.current_state.get("token_generator")
         token = token_generator.generate(logits=logits[0, -1, :])
         finish_reason = None
 
-        callback = inference_state.current_state.get("callback")
-        stop = inference_state.current_state.get("stop")
-
         if (
             kv_cache is not None
             and kv_cache.total_num_processed_tokens >= kv_cache.capacity
         ):
             finish_reason = FinishReason.CAPACITY
 
+        callback = inference_state.current_state.get("callback")
+        stop = inference_state.current_state.get("stop")
+
         if token == self.tokenizer.eos_token_id and not self.force_max_tokens:
             finish_reason = FinishReason.STOP
 
@@ -84,9 +88,11 @@ def run(
             )
             finish_reason = FinishReason.CALLBACK
 
-        max_tokens = inference_state.current_state.get("max_tokens")
-        if len(inference_state.current_state.get("generated_tokens")) + 1 >= max_tokens:
-            finish_reason = inference_state.current_state.get("length_finish_reason")
+        # Note: this is +1 as the inference state variable keeping track of all the
+        # generated tokens has not yet been updated with the most recently generated
+        # token from this operator
+        if num_generated_tokens + 1 == max_tokens:
+            finish_reason = length_finish_reason
 
         state_update = {
             "token_generator": token_generator,
diff --git a/src/deepsparse/transformers/pipelines/text_generation/multi_engine_prefill_operator.py b/src/deepsparse/transformers/pipelines/text_generation/multi_engine_prefill_operator.py
index dca4fc3ff9..76383028f9 100644
--- a/src/deepsparse/transformers/pipelines/text_generation/multi_engine_prefill_operator.py
+++ b/src/deepsparse/transformers/pipelines/text_generation/multi_engine_prefill_operator.py
@@ -42,6 +42,12 @@ def can_operate(self, inp: Any):
         kv_cache = inp.get("kv_cache")
         tokens = inp.get("tokens")
 
+        if kv_cache.total_num_processed_tokens >= kv_cache.capacity:
+            raise RuntimeError(
+                "Not enough kv_cache capacity to run generation. Please use a larger "
+                "sequence_length or a shorter prompt"
+            )
+
         if len(tokens) < self.prompt_sequence_length:
             return False
 
diff --git a/src/deepsparse/transformers/pipelines/text_generation/pipeline.py b/src/deepsparse/transformers/pipelines/text_generation/pipeline.py
index dede3d4a90..2c858c901b 100644
--- a/src/deepsparse/transformers/pipelines/text_generation/pipeline.py
+++ b/src/deepsparse/transformers/pipelines/text_generation/pipeline.py
@@ -239,7 +239,6 @@ def __init__(
             sequence_length=sequence_length,
             prompt_sequence_length=prompt_sequence_length,
             token_generator=token_generator,
-            process_output_operator=process_output,
         )
 
         # TODO: do we want to support lists for different engines?
@@ -286,7 +285,7 @@ def __init__(
                 "compile_logits",
                 "generate_new_token",
             ],
-            "prep_for_generation": "autoregressive_preprocess",
+            "prep_for_generation": "generate_new_token",
             "generate_new_token": "compile_generated_tokens",
         }
 
diff --git a/src/deepsparse/transformers/pipelines/text_generation/pipeline_no_kv_cache.py b/src/deepsparse/transformers/pipelines/text_generation/pipeline_no_kv_cache.py
index d58766c2b1..7f6cb9db5f 100644
--- a/src/deepsparse/transformers/pipelines/text_generation/pipeline_no_kv_cache.py
+++ b/src/deepsparse/transformers/pipelines/text_generation/pipeline_no_kv_cache.py
@@ -19,6 +19,7 @@
 from deepsparse.routers import GraphRouter
 from deepsparse.schedulers import OperatorScheduler
 from deepsparse.transformers.pipelines.text_generation import (
+    CompileGeneratedTokens,
     CompileGenerations,
     GenerateNewTokenOperator,
     JoinOutput,
@@ -73,6 +74,7 @@ def __init__(
             tokenizer=self.tokenizer, force_max_tokens=True
         )
         compile_generations = CompileGenerations()
+        compile_generated_tokens = CompileGeneratedTokens()
         join_output = JoinOutput(tokenizer=self.tokenizer)
         process_outputs = ProcessOutputs(tokenizer=self.tokenizer)
 
@@ -82,6 +84,7 @@ def __init__(
             "engine_operator": engine_operator,
             "prepare_generation": prepare_generation,
             "generate_new_token": generate_new_token,
+            "compile_generated_tokens": compile_generated_tokens,
             "compile_generations": compile_generations,
             "join_output": join_output,
             "process_outputs": process_outputs,
@@ -92,7 +95,8 @@ def __init__(
             "SPLIT": "engine_operator",
             "engine_operator": "prepare_generation",
             "prepare_generation": "generate_new_token",
-            "generate_new_token": "compile_generations",
+            "generate_new_token": "compile_generated_tokens",
+            "compile_generated_tokens": "compile_generations",
             "compile_generations": "JOIN",
             "JOIN": "join_output",
             "join_output": "process_outputs",
diff --git a/src/deepsparse/transformers/pipelines/text_generation/prep_for_generation.py b/src/deepsparse/transformers/pipelines/text_generation/prep_for_generation.py
index 6b97b432ae..3318ec88c5 100644
--- a/src/deepsparse/transformers/pipelines/text_generation/prep_for_generation.py
+++ b/src/deepsparse/transformers/pipelines/text_generation/prep_for_generation.py
@@ -15,35 +15,38 @@
 from typing import Any, Optional
 
 import numpy
+from pydantic import BaseModel, Field
 
 from deepsparse.operators import Operator
-from deepsparse.subgraph_execute import StreamingOutput
 from deepsparse.transformers.pipelines.text_generation import TokenGeneratorOperator
-from deepsparse.transformers.schemas.text_generation_schemas import (
-    FinishReason,
-    PromptLogitsNoKVCacheInference,
-)
+from deepsparse.transformers.schemas.text_generation_schemas import FinishReason
 from deepsparse.transformers.utils.helpers import set_generated_length
 from deepsparse.utils import InferenceState
 
 
-__all__ = ["PrepareGeneration"]
+__all__ = ["PrepareGeneration", "PrepareForGenerationOutput"]
+
+
+class PrepareForGenerationOutput(BaseModel):
+    prompt_logits: Any = Field(
+        description="A set of prompt logits generated during prefill"
+    )
+    kv_cache: Optional[Any] = Field(description="kv cache")
+    in_generation: Optional[bool] = Field(description="in_generation flag")
 
 
 class PrepareGeneration(Operator):
+    output_schema = PrepareForGenerationOutput
+
     def __init__(
         self,
         token_generator: TokenGeneratorOperator,
         prompt_sequence_length: int,
         sequence_length: int,
-        process_output_operator: Optional[Operator] = None,
     ):
         self.sequence_length = sequence_length
         self.token_generator_creator = token_generator
         self.prompt_sequence_length = prompt_sequence_length
-        # Needed for streaming as currently both setting up generation and generating
-        # Will split this up soon
-        self.process_output_operator = process_output_operator
 
     def can_operate(self, inp: Any):
         kv_cache = inp.get("kv_cache")
@@ -79,7 +82,6 @@ def run(
             **inference_state.current_state,
         )
         token_generator = token_generator_creator_output.get("token_generator")
-        token_generator.generate(prompt_logits[0, -1, :])
 
         max_tokens, length_finish_reason = set_generated_length(
             max_length=generation_config.max_length,
@@ -93,43 +95,21 @@ def run(
         state_update = {
             "max_tokens": max_tokens,
             "length_finish_reason": length_finish_reason,
-            "generated_tokens": [token_generator.tokens[-1]],
-            "generated_logits": [prompt_logits]
+            "generated_tokens": [],
+            "generated_logits": [prompt_logits[:, 0:-1, :]]
             if include_prompt_logits
-            else [numpy.expand_dims(prompt_logits[:, -1, :], 0)],
+            else [],
             "finished_reason": [],
             "token_generator": token_generator,
         }
+
         if kv_cache is None:
-            output = PromptLogitsNoKVCacheInference(prompt_logits=prompt_logits)
+            output = {"prompt_logits": numpy.expand_dims(prompt_logits[:, -1, :], 0)}
         else:
             output = {
-                "tokens": token_generator.tokens,
                 "kv_cache": kv_cache,
                 "in_generation": True,
+                "prompt_logits": numpy.expand_dims(prompt_logits[:, -1, :], 0),
             }
-            # TODO: maybe break this operator up since it is both generating and setting
-            # up values needed for generation? Holding off on this as this will change
-            # routes slighty and want to confirm wont break anything for non-kv cache
-            if inference_state.current_state.get("streaming") and max_tokens >= 1:
-                finished_reason = [length_finish_reason] if max_tokens == 1 else [None]
-
-                if self.process_output_operator is None:
-                    raise ValueError(
-                        "An operator must be provided to process outputs"
-                        "while streaming."
-                    )
-                data_to_yield = self.process_output_operator.run(
-                    generated_tokens=state_update.get("generated_tokens"),
-                    finished_reason=finished_reason,
-                    inference_state=inference_state,
-                    generated_logits=prompt_logits[0, -1, :],
-                )
-                output = StreamingOutput(
-                    data_to_yield=self.process_output_operator.output_schema(
-                        **data_to_yield
-                    ),
-                    data_to_return=output,
-                )
 
         return output, state_update
diff --git a/src/deepsparse/transformers/schemas/text_generation_schemas.py b/src/deepsparse/transformers/schemas/text_generation_schemas.py
index b1a15fc67c..32a7675694 100644
--- a/src/deepsparse/transformers/schemas/text_generation_schemas.py
+++ b/src/deepsparse/transformers/schemas/text_generation_schemas.py
@@ -166,11 +166,3 @@ class TextGenerationOutput(BaseModel):
     class Config:
         arbitrary_types_allowed = True
         extra = "allow"
-
-
-class PromptLogitsNoKVCacheInference(BaseModel):
-    prompt_logits: Any = Field(
-        description="A set of prompt logits generated "
-        "during the inference pass with a "
-        "non-kv cache model"
-    )
diff --git a/src/deepsparse/transformers/utils/helpers.py b/src/deepsparse/transformers/utils/helpers.py
index 581a2b0d41..7ee77f6c28 100644
--- a/src/deepsparse/transformers/utils/helpers.py
+++ b/src/deepsparse/transformers/utils/helpers.py
@@ -104,8 +104,10 @@ def set_generated_length(
     :param max_new_tokens: the max_new_tokens attribute, which may be provided
     as part of the input during inference
     """
-    if max_length:
+    if max_length is not None:
         # if max_length provided, use that to cap total tokens generated
+        if max_length == 0:
+            raise ValueError("max_length must be greater than 0")
         max_tokens = max_length
         finish_reason = finish_reason_choices.LENGTH
     else:
diff --git a/tests/deepsparse/transformers/pipelines/test_text_generation.py b/tests/deepsparse/transformers/pipelines/test_text_generation.py
index ec848961b4..825dafee62 100644
--- a/tests/deepsparse/transformers/pipelines/test_text_generation.py
+++ b/tests/deepsparse/transformers/pipelines/test_text_generation.py
@@ -143,6 +143,7 @@ def test_stop_inference_kv_cache_full(prompt):
         expected_generated_tokens_length=max_new_tokens_plus_one,
         expected_finished_reason="capacity",
     )
+
     """
     Check the following structure ok the kv cache:
     minus_one | full | plus_one | plus_two
@@ -152,6 +153,7 @@ def test_stop_inference_kv_cache_full(prompt):
      [row B] | [row C] | [row D] | [row D]
        ...   |   ...   |   ...   |  ...
     """
+
     # check for the "free" space in the kv cache
     assert kv_cache_state_full_minus_one["past_key_values.0.key"][:, :, 0, :].sum() == 0
     # check for the row A
@@ -282,3 +284,53 @@ def test_streaming_non_streaming_generate_same_tokens(pipeline, prompt):
         tokens.append(g.generations[0].text)
     output_2 = "".join(tokens)
     assert output_1 == output_2
+
+
+def test_edge_cases(pipeline, prompt):
+    # total length of the generated sequence is just 1 token; this should just use
+    # the last prompt logit
+    output = pipeline(prompt=prompt, max_length=1, output_scores=True)
+    assert len(output.generations[0].score) == 1
+
+    output = pipeline(
+        prompt=prompt, max_length=1, output_scores=True, include_prompt_logits=True
+    )
+    assert len(output.generations[0].score) == 11
+
+    # max_new_tokens == 0 and max_length == 1 should result in the same behaviour
+    # the generation is only dependent on the prompt logit, not any new generated logit
+    output = pipeline(prompt=prompt, max_new_tokens=0, output_scores=True)
+    assert len(output.generations[0].score) == 1
+
+    output = pipeline(
+        prompt=prompt, max_new_tokens=0, output_scores=True, include_prompt_logits=True
+    )
+    assert len(output.generations[0].score) == 11
+
+    # expect total scores/length of the generation to be 2: 1 for the token generated
+    # from the last prompt logit and the rest generated from the value provided
+    # using the max_new_tokens argument (which in this case is 1)
+    output = pipeline(prompt=prompt, max_new_tokens=1, output_scores=True)
+    assert len(output.generations[0].score) == 2
+
+    output = pipeline(
+        prompt=prompt, max_new_tokens=1, output_scores=True, include_prompt_logits=True
+    )
+    assert len(output.generations[0].score) == 12
+
+    # dont support max_length == 0; raise value error
+    with pytest.raises(ValueError):
+        pipeline(prompt=prompt, max_length=0)
+
+
+def test_kv_cache_too_small_for_prefill(prompt):
+    for i in range(10):
+        prompt += prompt
+
+    pipeline = Pipeline.create(
+        task="text_generation",
+        model_path="hf:mgoin/TinyStories-1M-deepsparse",
+        sequence_length=25,
+    )
+    with pytest.raises(RuntimeError):
+        pipeline(prompt=prompt)
diff --git a/tests/deepsparse/transformers/text_generation/unit/text_generation/test_pipeline_no_kv_cache.py b/tests/deepsparse/transformers/text_generation/unit/text_generation/test_pipeline_no_kv_cache.py
index 7b219ee080..88f79edb36 100644
--- a/tests/deepsparse/transformers/text_generation/unit/text_generation/test_pipeline_no_kv_cache.py
+++ b/tests/deepsparse/transformers/text_generation/unit/text_generation/test_pipeline_no_kv_cache.py
@@ -14,6 +14,8 @@
 
 import copy
 
+import numpy
+
 from deepsparse import TextGeneration
 from deepsparse.transformers.pipelines.text_generation.pipeline import (
     TextGenerationPipeline,
@@ -41,19 +43,24 @@ def test_assert_same_outputs_regardless_of_kv_cache_support(model_attributes):
     # make sure that kv cache support does not change the output
     prompt = "Hello, how are you doing today?"
     _prompt = copy.deepcopy(prompt)
-    max_new_tokens = 16
+    max_length = 16
     pipeline = TextGeneration(
         model_path=model_attributes[1], onnx_model_name="model-orig.onnx"
     )
-    for _ in range(max_new_tokens):
+    non_kv_cache_logits = []
+    for _ in range(max_length):
         # simulate autoregressive generation with non-kv cache pipeline
-        out = pipeline(prompt=_prompt)
+        out = pipeline(prompt=_prompt, output_scores=True)
+        non_kv_cache_logits.append(out.generations[0].score)
         new_token = pipeline.tokenizer.encode(out.generations[0].text)
         old_tokens = pipeline.tokenizer.encode(_prompt)
         _prompt = pipeline.tokenizer.decode(old_tokens + new_token)
-    # max_new_tokens reduced by one, because the pipeline always grabs
-    # the first generated token from the prefill
-    out = TextGeneration(model_path=model_attributes[1])(
-        prompt=prompt, max_new_tokens=max_new_tokens - 1
-    )
+
+    pipeline_kv_cache = TextGeneration(model_path=model_attributes[1])
+    out = pipeline_kv_cache(prompt=prompt, max_length=max_length, output_scores=True)
+    kv_cache_scores = out.generations[0].score
+
+    non_kv_cache_logits = numpy.concatenate(non_kv_cache_logits, axis=0)
+
+    assert numpy.allclose(non_kv_cache_logits, kv_cache_scores, atol=0.001)
     assert _prompt == prompt + out.generations[0].text
diff --git a/tests/deepsparse/transformers/text_generation/unit/text_generation/test_token_generation.py b/tests/deepsparse/transformers/text_generation/unit/text_generation/test_token_generation.py
index ab126ff72e..0c0ad1e703 100644
--- a/tests/deepsparse/transformers/text_generation/unit/text_generation/test_token_generation.py
+++ b/tests/deepsparse/transformers/text_generation/unit/text_generation/test_token_generation.py
@@ -52,18 +52,23 @@ def test_prep_for_generation(
 
     prompt_logits = [numpy.random.rand(1, len(mock_tokens_multiple), len(tokenizer))]
     mock_inference_state.update_state(
-        {"prompt_logits": prompt_logits, "max_tokens": 10}
+        {
+            "prompt_logits": prompt_logits,
+            "include_prompt_logits": True,
+            "max_tokens": 10,
+        }
     )
     outputs, state = prep_for_generation.run(
         tokens=mock_tokens_multiple,
         kv_cache=mock_kv_cache_three_tokens_processed,
         inference_state=mock_inference_state,
     )
-    assert len(outputs.get("tokens")) == len(mock_tokens_multiple) + 1
     assert outputs.get("in_generation")
     assert numpy.array_equal(
-        state.get("generated_logits")[0],
-        numpy.expand_dims(prompt_logits[0][:, -1, :], 0),
+        numpy.concatenate(
+            (state.get("generated_logits")[0], outputs.get("prompt_logits")), axis=1
+        ),
+        prompt_logits[0],
     )