diff --git a/cmd/epp/runner/runner.go b/cmd/epp/runner/runner.go
index e6caafa2d..8a35f0196 100644
--- a/cmd/epp/runner/runner.go
+++ b/cmd/epp/runner/runner.go
@@ -459,6 +459,10 @@ func (r *Runner) parseConfigurationPhaseTwo(ctx context.Context, rawConfig *conf
 
 	// Add requestControl plugins
 	r.requestControlConfig.AddPlugins(handle.GetAllPlugins()...)
+	// Sort prepare data plugins in DAG order (topological sort). Also check prepare data plugins for cycles.
+	if r.requestControlConfig.PrepareDataPluginGraph() != nil {
+		return nil, errors.New("failed to load the configuration - prepare data plugins have cyclic dependencies")
+	}
 
 	// Handler deprecated configuration options
 	r.deprecatedConfigurationHelper(cfg, logger)
diff --git a/pkg/epp/requestcontrol/dag.go b/pkg/epp/requestcontrol/dag.go
new file mode 100644
index 000000000..a0fdd1c5f
--- /dev/null
+++ b/pkg/epp/requestcontrol/dag.go
@@ -0,0 +1,128 @@
+/*
+Copyright 2025 The Kubernetes Authors.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+package requestcontrol
+
+import (
+	"errors"
+	"slices"
+)
+
+// buildDAG builds a dependency graph among data preparation plugins based on their
+// produced and consumed data keys.
+func buildDAG(plugins []PrepareDataPlugin) map[string][]string {
+	dag := make(map[string][]string)
+	for _, plugin := range plugins {
+		dag[plugin.TypedName().String()] = []string{}
+	}
+	// Create dependency graph as a DAG.
+	for i := range plugins {
+		for j := range plugins {
+			if i == j {
+				continue
+			}
+			// Check whether plugin[i] produces something consumed by plugin[j]. In that case, j depends on i.
+			if plugins[i].Produces() != nil && plugins[j].Consumes() != nil {
+				// For all the keys produced by plugin i, check if plugin j consumes any of them.
+				// If yes, then j depends on i.
+				for producedKey := range plugins[i].Produces() {
+					// If plugin j consumes the produced key, then j depends on i. We can break after the first match.
+					if _, ok := plugins[j].Consumes()[producedKey]; ok {
+						iPluginName := plugins[i].TypedName().String()
+						jPluginName := plugins[j].TypedName().String()
+						dag[jPluginName] = append(dag[jPluginName], iPluginName)
+						break
+					}
+				}
+			}
+		}
+	}
+	return dag
+}
+
+// prepareDataGraph builds the dependency graph and returns the plugins ordered in topological order.
+// If there is a cycle, it returns an error.
+func prepareDataGraph(plugins []PrepareDataPlugin) (map[string][]string, []PrepareDataPlugin, error) {
+	dag := buildDAG(plugins)
+	nameToPlugin := map[string]PrepareDataPlugin{}
+	for _, plugin := range plugins {
+		nameToPlugin[plugin.TypedName().String()] = plugin
+	}
+	sortedPlugins, err := topologicalSort(dag)
+	if err != nil {
+		return nil, nil, err
+	}
+	orderedPlugins := []PrepareDataPlugin{}
+	for _, pluginName := range sortedPlugins {
+		orderedPlugins = append(orderedPlugins, nameToPlugin[pluginName])
+	}
+
+	return dag, orderedPlugins, err
+}
+
+// TopologicalSort performs Kahn's Algorithm on a DAG.
+// It returns the sorted order or an error if a cycle is detected.
+func topologicalSort(graph map[string][]string) ([]string, error) {
+	// 1. Initialize in-degree map
+	inDegree := make(map[string]int)
+
+	// Ensure all nodes are present in the inDegree map, even those with no dependencies
+	for u, neighbors := range graph {
+		if _, ok := inDegree[u]; !ok {
+			inDegree[u] = 0
+		}
+		for _, v := range neighbors {
+			inDegree[v]++ // Increment in-degree for the destination node
+		}
+	}
+
+	// 2. Initialize the queue with nodes having 0 in-degree
+	var queue []string
+	for node, degree := range inDegree {
+		if degree == 0 {
+			queue = append(queue, node)
+		}
+	}
+
+	var result []string
+
+	// 3. Process the queue
+	for len(queue) > 0 {
+		// Dequeue
+		u := queue[0]
+		queue = queue[1:]
+
+		result = append(result, u)
+
+		// Decrease in-degree of neighbors
+		if neighbors, ok := graph[u]; ok {
+			for _, v := range neighbors {
+				inDegree[v]--
+				if inDegree[v] == 0 {
+					queue = append(queue, v)
+				}
+			}
+		}
+	}
+
+	// 4. Check for cycles
+	// If the result size != total nodes, there is a cycle
+	if len(result) != len(inDegree) {
+		return nil, errors.New("cycle detected: graph is not a DAG")
+	}
+	slices.Reverse(result)
+	return result, nil
+}
diff --git a/pkg/epp/requestcontrol/dag_test.go b/pkg/epp/requestcontrol/dag_test.go
new file mode 100644
index 000000000..c38df188d
--- /dev/null
+++ b/pkg/epp/requestcontrol/dag_test.go
@@ -0,0 +1,159 @@
+/*
+Copyright 2025 The Kubernetes Authors.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+package requestcontrol
+
+import (
+	"context"
+	"maps"
+	"testing"
+
+	"github.com/google/go-cmp/cmp"
+	"github.com/stretchr/testify/assert"
+	"sigs.k8s.io/gateway-api-inference-extension/pkg/epp/plugins"
+	"sigs.k8s.io/gateway-api-inference-extension/pkg/epp/scheduling/types"
+)
+
+type mockPrepareRequestDataP struct {
+	name     string
+	produces map[string]any
+	consumes map[string]any
+}
+
+func (m *mockPrepareRequestDataP) TypedName() plugins.TypedName {
+	return plugins.TypedName{Name: m.name, Type: "mock"}
+}
+
+func (m *mockPrepareRequestDataP) Produces() map[string]any {
+	return m.produces
+}
+
+func (m *mockPrepareRequestDataP) Consumes() map[string]any {
+	return m.consumes
+}
+
+func (m *mockPrepareRequestDataP) PrepareRequestData(ctx context.Context, request *types.LLMRequest, pods []types.Pod) error {
+	pods[0].Put(mockProducedDataKey, mockProducedDataType{value: 42})
+	return nil
+}
+
+func TestPrepareDataGraph(t *testing.T) {
+	pluginA := &mockPrepareRequestDataP{name: "A", produces: map[string]any{"keyA": nil}}
+	pluginB := &mockPrepareRequestDataP{name: "B", consumes: map[string]any{"keyA": nil}, produces: map[string]any{"keyB": nil}}
+	pluginC := &mockPrepareRequestDataP{name: "C", consumes: map[string]any{"keyB": nil}}
+	pluginD := &mockPrepareRequestDataP{name: "D", consumes: map[string]any{"keyA": nil}}
+	pluginE := &mockPrepareRequestDataP{name: "E"} // No dependencies
+
+	// Cycle plugins
+	pluginX := &mockPrepareRequestDataP{name: "X", produces: map[string]any{"keyX": nil}, consumes: map[string]any{"keyY": nil}}
+	pluginY := &mockPrepareRequestDataP{name: "Y", produces: map[string]any{"keyY": nil}, consumes: map[string]any{"keyX": nil}}
+
+	testCases := []struct {
+		name        string
+		plugins     []PrepareDataPlugin
+		expectedDAG map[string][]string
+		expectError bool
+	}{
+		{
+			name:        "No plugins",
+			plugins:     []PrepareDataPlugin{},
+			expectedDAG: map[string][]string{},
+			expectError: false,
+		},
+		{
+			name:    "Plugins with no dependencies",
+			plugins: []PrepareDataPlugin{pluginA, pluginE},
+			expectedDAG: map[string][]string{
+				"A/mock": {},
+				"E/mock": {},
+			},
+			expectError: false,
+		},
+		{
+			name:    "Simple linear dependency (C -> B -> A)",
+			plugins: []PrepareDataPlugin{pluginA, pluginB, pluginC},
+			expectedDAG: map[string][]string{
+				"A/mock": {},
+				"B/mock": {"A/mock"},
+				"C/mock": {"B/mock"},
+			},
+			expectError: false,
+		},
+		{
+			name:    "DAG with multiple dependencies (B -> A, D -> A, E independent)",
+			plugins: []PrepareDataPlugin{pluginA, pluginB, pluginD, pluginE},
+			expectedDAG: map[string][]string{
+				"A/mock": {},
+				"B/mock": {"A/mock"},
+				"D/mock": {"A/mock"},
+				"E/mock": {},
+			},
+			expectError: false,
+		},
+		{
+			name:        "Graph with a cycle (X -> Y, Y -> X)",
+			plugins:     []PrepareDataPlugin{pluginX, pluginY},
+			expectedDAG: nil,
+			expectError: true,
+		},
+	}
+
+	for _, tc := range testCases {
+		t.Run(tc.name, func(t *testing.T) {
+			dag, orderedPlugins, err := prepareDataGraph(tc.plugins)
+
+			if tc.expectError {
+				assert.Error(t, err)
+				assert.Nil(t, dag)
+				assert.Contains(t, err.Error(), "cycle detected")
+			} else {
+				assert.NoError(t, err)
+
+				// Normalize the slices in the maps for consistent comparison
+				normalizedDAG := make(map[string][]string)
+				maps.Copy(normalizedDAG, dag)
+				normalizedExpectedDAG := make(map[string][]string)
+				for k, v := range tc.expectedDAG {
+					normalizedExpectedDAG[k] = v
+				}
+
+				if diff := cmp.Diff(normalizedExpectedDAG, normalizedDAG); diff != "" {
+					t.Errorf("prepareDataGraph() mismatch (-want +got):\n%s", diff)
+				}
+
+				orderedPluginNames := make([]string, len(orderedPlugins))
+				for i, p := range orderedPlugins {
+					orderedPluginNames[i] = p.TypedName().String()
+				}
+				assertTopologicalOrder(t, dag, orderedPlugins)
+			}
+		})
+	}
+}
+
+func assertTopologicalOrder(t *testing.T, dag map[string][]string, ordered []PrepareDataPlugin) {
+	t.Helper()
+	positions := make(map[string]int)
+	for i, p := range ordered {
+		positions[p.TypedName().String()] = i
+	}
+
+	for node, dependencies := range dag {
+		for _, dep := range dependencies {
+			assert.Less(t, positions[dep], positions[node], "Dependency %s should come before %s", dep, node)
+		}
+	}
+}
diff --git a/pkg/epp/requestcontrol/director.go b/pkg/epp/requestcontrol/director.go
index e8db59b7d..4c35627b7 100644
--- a/pkg/epp/requestcontrol/director.go
+++ b/pkg/epp/requestcontrol/director.go
@@ -353,13 +353,9 @@ func (d *Director) runPreRequestPlugins(ctx context.Context, request *scheduling
 	}
 }
 
-// TODO: Execute plugins in parallel once DAG execution is supported.
-// runPrepareDataPlugins executes PrepareDataPlugins sequentially.
 func (d *Director) runPrepareDataPlugins(ctx context.Context,
 	request *schedulingtypes.LLMRequest, pods []schedulingtypes.Pod) error {
-	return prepareDataPluginsWithTimeout(
-		prepareDataTimeout, d.requestControlPlugins.prepareDataPlugins, ctx, request, pods)
-
+	return prepareDataPluginsWithTimeout(prepareDataTimeout, d.requestControlPlugins.prepareDataPlugins, ctx, request, pods)
 }
 
 func (d *Director) runAdmissionPlugins(ctx context.Context,
diff --git a/pkg/epp/requestcontrol/plugin_executor.go b/pkg/epp/requestcontrol/plugin_executor.go
index be8d4ba39..7771c4f67 100644
--- a/pkg/epp/requestcontrol/plugin_executor.go
+++ b/pkg/epp/requestcontrol/plugin_executor.go
@@ -24,20 +24,24 @@ import (
 	schedulingtypes "sigs.k8s.io/gateway-api-inference-extension/pkg/epp/scheduling/types"
 )
 
+// executePluginsAsDAG executes PrepareData plugins as a DAG based on their dependencies asynchronously.
+// So, a plugin is executed only after all its dependencies have been executed.
+// If there is a cycle or any plugin fails with error, it returns an error.
+func executePluginsAsDAG(plugins []PrepareDataPlugin, ctx context.Context, request *schedulingtypes.LLMRequest, pods []schedulingtypes.Pod) error {
+	for _, plugin := range plugins {
+		if err := plugin.PrepareRequestData(ctx, request, pods); err != nil {
+			return errors.New("prepare data plugin " + plugin.TypedName().String() + " failed: " + err.Error())
+		}
+	}
+	return nil
+}
+
 // prepareDataPluginsWithTimeout executes the PrepareRequestData plugins with retries and timeout.
 func prepareDataPluginsWithTimeout(timeout time.Duration, plugins []PrepareDataPlugin,
 	ctx context.Context, request *schedulingtypes.LLMRequest, pods []schedulingtypes.Pod) error {
 	errCh := make(chan error, 1)
-	// Execute plugins sequentially in a separate goroutine
 	go func() {
-		for _, plugin := range plugins {
-			err := plugin.PrepareRequestData(ctx, request, pods)
-			if err != nil {
-				errCh <- errors.New("prepare data plugin " + plugin.TypedName().String() + " failed: " + err.Error())
-				return
-			}
-		}
-		errCh <- nil
+		errCh <- executePluginsAsDAG(plugins, ctx, request, pods)
 	}()
 
 	select {
diff --git a/pkg/epp/requestcontrol/plugin_executor_test.go b/pkg/epp/requestcontrol/plugin_executor_test.go
index b37264f6b..1825f7a4c 100644
--- a/pkg/epp/requestcontrol/plugin_executor_test.go
+++ b/pkg/epp/requestcontrol/plugin_executor_test.go
@@ -19,6 +19,7 @@ package requestcontrol
 import (
 	"context"
 	"errors"
+	"sync"
 	"testing"
 	"time"
 
@@ -157,3 +158,138 @@ func TestPrepareDataPluginsWithTimeout(t *testing.T) {
 		})
 	}
 }
+
+type dagTestPlugin struct {
+	mockPrepareRequestDataPlugin
+	produces map[string]any
+	consumes map[string]any
+	execTime time.Time
+	mu       sync.Mutex
+}
+
+func (p *dagTestPlugin) PrepareRequestData(ctx context.Context, request *schedulingtypes.LLMRequest, pods []schedulingtypes.Pod) error {
+	p.mu.Lock()
+	defer p.mu.Unlock()
+	p.execTime = time.Now()
+	return p.mockPrepareRequestDataPlugin.PrepareRequestData(ctx, request, pods)
+}
+
+func (p *dagTestPlugin) Produces() map[string]any {
+	return p.produces
+}
+
+func (p *dagTestPlugin) Consumes() map[string]any {
+	return p.consumes
+}
+
+func TestExecutePluginsAsDAG(t *testing.T) {
+	pluginA := &dagTestPlugin{
+		mockPrepareRequestDataPlugin: mockPrepareRequestDataPlugin{name: "A", delay: 20 * time.Millisecond},
+		produces:                     map[string]any{"keyA": nil},
+	}
+	pluginB := &dagTestPlugin{
+		mockPrepareRequestDataPlugin: mockPrepareRequestDataPlugin{name: "B"},
+		consumes:                     map[string]any{"keyA": nil},
+		produces:                     map[string]any{"keyB": nil},
+	}
+	pluginC := &dagTestPlugin{
+		mockPrepareRequestDataPlugin: mockPrepareRequestDataPlugin{name: "C"},
+		consumes:                     map[string]any{"keyB": nil},
+	}
+	pluginD := &dagTestPlugin{
+		mockPrepareRequestDataPlugin: mockPrepareRequestDataPlugin{name: "D"},
+		consumes:                     map[string]any{"keyA": nil},
+	}
+	pluginE := &dagTestPlugin{
+		mockPrepareRequestDataPlugin: mockPrepareRequestDataPlugin{name: "E"},
+	}
+	pluginFail := &dagTestPlugin{
+		mockPrepareRequestDataPlugin: mockPrepareRequestDataPlugin{name: "Fail", returnErr: errors.New("plugin failed")},
+		produces:                     map[string]any{"keyFail": nil},
+	}
+	pluginDependsOnFail := &dagTestPlugin{
+		mockPrepareRequestDataPlugin: mockPrepareRequestDataPlugin{name: "DependsOnFail"},
+		consumes:                     map[string]any{"keyFail": nil},
+	}
+
+	testCases := []struct {
+		name      string
+		plugins   []PrepareDataPlugin
+		expectErr bool
+		checkFunc func(t *testing.T, plugins []PrepareDataPlugin)
+	}{
+		{
+			name:    "no plugins",
+			plugins: []PrepareDataPlugin{},
+		},
+		{
+			name:    "simple linear dependency (A -> B -> C)",
+			plugins: []PrepareDataPlugin{pluginA, pluginB, pluginC},
+			checkFunc: func(t *testing.T, plugins []PrepareDataPlugin) {
+				pA := plugins[0].(*dagTestPlugin)
+				pB := plugins[1].(*dagTestPlugin)
+				pC := plugins[2].(*dagTestPlugin)
+
+				assert.True(t, pA.executed, "Plugin A should have been executed")
+				assert.True(t, pB.executed, "Plugin B should have been executed")
+				assert.True(t, pC.executed, "Plugin C should have been executed")
+
+				assert.True(t, pB.execTime.After(pA.execTime), "Plugin B should execute after A")
+				assert.True(t, pC.execTime.After(pB.execTime), "Plugin C should execute after B")
+			},
+		},
+		{
+			name:    "DAG with multiple dependencies (A -> B, A -> D) and one independent (E)",
+			plugins: []PrepareDataPlugin{pluginA, pluginB, pluginD, pluginE},
+			checkFunc: func(t *testing.T, plugins []PrepareDataPlugin) {
+				pA := plugins[0].(*dagTestPlugin)
+				pB := plugins[1].(*dagTestPlugin)
+				pD := plugins[2].(*dagTestPlugin)
+				pE := plugins[3].(*dagTestPlugin)
+
+				assert.True(t, pA.executed, "Plugin A should have been executed")
+				assert.True(t, pB.executed, "Plugin B should have been executed")
+				assert.True(t, pD.executed, "Plugin D should have been executed")
+				assert.True(t, pE.executed, "Plugin E should have been executed")
+
+				assert.True(t, pB.execTime.After(pA.execTime), "Plugin B should execute after A")
+				assert.True(t, pD.execTime.After(pA.execTime), "Plugin D should execute after A")
+			},
+		},
+		{
+			name:      "dependency fails",
+			plugins:   []PrepareDataPlugin{pluginFail, pluginDependsOnFail},
+			expectErr: true,
+			checkFunc: func(t *testing.T, plugins []PrepareDataPlugin) {
+				pF := plugins[0].(*dagTestPlugin)
+				pDOF := plugins[1].(*dagTestPlugin)
+
+				assert.True(t, pF.executed, "Failing plugin should have been executed")
+				assert.False(t, pDOF.executed, "Plugin depending on fail should not be executed")
+			},
+		},
+	}
+
+	for _, tc := range testCases {
+		t.Run(tc.name, func(t *testing.T) {
+			// Reset execution state for plugins
+			for _, p := range tc.plugins {
+				plugin := p.(*dagTestPlugin)
+				plugin.executed = false
+				plugin.execTime = time.Time{}
+			}
+
+			err := executePluginsAsDAG(tc.plugins, context.Background(), &schedulingtypes.LLMRequest{}, nil)
+
+			if tc.expectErr {
+				assert.Error(t, err)
+			} else {
+				assert.NoError(t, err)
+			}
+
+			if tc.checkFunc != nil {
+				tc.checkFunc(t, tc.plugins)
+			}
+		})
+	}
+}
diff --git a/pkg/epp/requestcontrol/request_control_config.go b/pkg/epp/requestcontrol/request_control_config.go
index 9701be999..1b00480bd 100644
--- a/pkg/epp/requestcontrol/request_control_config.go
+++ b/pkg/epp/requestcontrol/request_control_config.go
@@ -104,3 +104,15 @@ func (c *Config) AddPlugins(pluginObjects ...plugins.Plugin) {
 		}
 	}
 }
+
+// PrepareDataPluginGraph creates data dependency graph and sorts the plugins in topological order.
+// If a cycle is detected, it returns an error.
+func (c *Config) PrepareDataPluginGraph() error {
+	_, plugins, err := prepareDataGraph(c.prepareDataPlugins)
+	if err != nil {
+		return err
+	}
+	c.prepareDataPlugins = plugins
+
+	return nil
+}