diff --git a/plugins/sglang/src/flyteplugins/sglang/_model_loader/shim.py b/plugins/sglang/src/flyteplugins/sglang/_model_loader/shim.py
index f20b2a853..d2dd354f3 100644
--- a/plugins/sglang/src/flyteplugins/sglang/_model_loader/shim.py
+++ b/plugins/sglang/src/flyteplugins/sglang/_model_loader/shim.py
@@ -53,7 +53,7 @@ def _get_weights_iterator(self, source) -> Generator[tuple[str, torch.Tensor], N
         try:
             streamer = SafeTensorsStreamer(REMOTE_MODEL_PATH, LOCAL_MODEL_PATH)
         except ValueError:
-            return super()._get_weights_iterator(source)
+            yield from super()._get_weights_iterator(source)
         else:
             for name, tensor in streamer.get_tensors():
                 yield source.prefix + name, tensor
diff --git a/plugins/sglang/tests/test_model_loader_shim.py b/plugins/sglang/tests/test_model_loader_shim.py
new file mode 100644
index 000000000..26b8a8056
--- /dev/null
+++ b/plugins/sglang/tests/test_model_loader_shim.py
@@ -0,0 +1,85 @@
+"""Unit tests for FlyteModelLoader in the sglang-fserve shim.
+
+The shim imports torch and sglang at module scope and neither is installed in the test
+environment, so both are replaced with stubs in ``sys.modules`` before the shim is imported.
+The Flyte loader module is stubbed as well: it imports torch for its dtype table, and these
+tests only need a ``SafeTensorsStreamer`` they can control.
+"""
+
+import importlib
+import sys
+import types
+from unittest import mock
+
+import pytest
+
+SHIM_MODULE = "flyteplugins.sglang._model_loader.shim"
+DEFAULT_WEIGHTS = [("model.embed_tokens.weight", "t0"), ("model.norm.weight", "t1")]
+
+
+class _FakeDefaultModelLoader:
+    def _get_weights_iterator(self, source):
+        return iter(DEFAULT_WEIGHTS)
+
+
+def _module(name: str, **attrs) -> types.ModuleType:
+    module = types.ModuleType(name)
+    module.__dict__.update(attrs)
+    return module
+
+
+@pytest.fixture
+def shim(monkeypatch):
+    from flyteplugins.sglang._constants import SGLANG_MIN_VERSION_STR
+
+    stubs = {
+        "torch": mock.MagicMock(),
+        "sglang": _module("sglang", __version__=SGLANG_MIN_VERSION_STR),
+        "sglang.srt": _module("sglang.srt"),
+        "sglang.srt.model_loader": _module("sglang.srt.model_loader"),
+        "sglang.srt.model_loader.loader": _module(
+            "sglang.srt.model_loader.loader", DefaultModelLoader=_FakeDefaultModelLoader
+        ),
+        "sglang.srt.configs": _module("sglang.srt.configs"),
+        "sglang.srt.configs.device_config": _module("sglang.srt.configs.device_config", DeviceConfig=object),
+        "sglang.srt.configs.model_config": _module("sglang.srt.configs.model_config", ModelConfig=object),
+        "sglang.srt.server_args": _module("sglang.srt.server_args", prepare_server_args=mock.Mock()),
+        "sglang.srt.utils": _module("sglang.srt.utils", kill_process_tree=mock.Mock()),
+        "sglang.srt.server": _module("sglang.srt.server", launch_server=mock.Mock()),
+        "flyte.app.extras._model_loader.loader": _module(
+            "flyte.app.extras._model_loader.loader", SafeTensorsStreamer=mock.Mock(), prefetch=mock.Mock()
+        ),
+    }
+    # Attribute access (``sglang.srt.model_loader.loader.X``) walks the parents, not sys.modules.
+    stubs["sglang"].srt = stubs["sglang.srt"]
+    stubs["sglang.srt"].model_loader = stubs["sglang.srt.model_loader"]
+    stubs["sglang.srt.model_loader"].loader = stubs["sglang.srt.model_loader.loader"]
+
+    for name, module in stubs.items():
+        monkeypatch.setitem(sys.modules, name, module)
+    monkeypatch.delitem(sys.modules, SHIM_MODULE, raising=False)
+
+    yield importlib.import_module(SHIM_MODULE)
+
+    sys.modules.pop(SHIM_MODULE, None)
+
+
+def test_falls_back_to_default_weights_when_streamer_is_unavailable(shim, monkeypatch):
+    """A ``return`` in place of ``yield from`` here silently hands SGLang zero weights."""
+    monkeypatch.setattr(shim, "SafeTensorsStreamer", mock.Mock(side_effect=ValueError("no streamer")))
+    source = types.SimpleNamespace(prefix="")
+
+    weights = list(shim.FlyteModelLoader()._get_weights_iterator(source))
+
+    assert weights == DEFAULT_WEIGHTS
+
+
+def test_streams_weights_with_source_prefix(shim, monkeypatch):
+    streamer = mock.Mock()
+    streamer.get_tensors.return_value = iter([("layer.weight", "t0"), ("layer.bias", "t1")])
+    monkeypatch.setattr(shim, "SafeTensorsStreamer", mock.Mock(return_value=streamer))
+    source = types.SimpleNamespace(prefix="model.")
+
+    weights = list(shim.FlyteModelLoader()._get_weights_iterator(source))
+
+    assert weights == [("model.layer.weight", "t0"), ("model.layer.bias", "t1")]