diff --git a/parts/linux/cloud-init/artifacts/cse_config.sh b/parts/linux/cloud-init/artifacts/cse_config.sh
index ff146905b4b..3ade7762073 100755
--- a/parts/linux/cloud-init/artifacts/cse_config.sh
+++ b/parts/linux/cloud-init/artifacts/cse_config.sh
@@ -1213,20 +1213,35 @@ pullGPUDriverImage() {
 }
 
 installGPUDriverImage() {
-    retrycmd_if_failure 5 10 600 bash -c "$CTR_GPU_INSTALL_CMD $NVIDIA_DRIVER_IMAGE:$NVIDIA_DRIVER_IMAGE_TAG gpuinstall /entrypoint.sh install"
+    local gpuInstallAction="${1:-install}"
+    retrycmd_if_failure 5 10 600 bash -c "$CTR_GPU_INSTALL_CMD $NVIDIA_DRIVER_IMAGE:$NVIDIA_DRIVER_IMAGE_TAG gpuinstall /entrypoint.sh ${gpuInstallAction}"
 }
 
 configGPUDrivers() {
     if [ "$OS" = "$UBUNTU_OS_NAME" ]; then
         waitForContainerdReady || exit $ERR_GPU_DRIVERS_START_FAIL
         mkdir -p /opt/{actions,gpu}
+        # When the kernel module was pre-built into the VHD (build-only at image-bake time),
+        # a marker is present. Ask aks-gpu to skip the ~100s DKMS recompile and run only the
+        # device-dependent steps -- but ONLY when the marker's driver_kind matches THIS node's
+        # driver (NVIDIA_GPU_DRIVER_TYPE). A CUDA-prebaked marker on a GRID node (or vice-versa)
+        # must request a full "install": the other driver image may not even support
+        # install-skip-build and would fail to stage its userspace files (e.g. /opt/gpu/config.sh).
+        # aks-gpu still independently re-validates the marker (kernel + driver_version +
+        # driver_kind) and falls back to a full build on any remaining mismatch (e.g. kernel drift).
+        local GPU_INSTALL_ACTION="install"
+        local GPU_DKMS_MARKER="${GPU_DKMS_MARKER_FILE:-/opt/azure/aks-gpu/dkms-marker}"
+        if [ -f "$GPU_DKMS_MARKER" ] && \
+           [ "$(sed -n 's/^driver_kind=//p' "$GPU_DKMS_MARKER" | head -n1)" = "$NVIDIA_GPU_DRIVER_TYPE" ]; then
+            GPU_INSTALL_ACTION="install-skip-build"
+        fi
         # The driver image is normally pre-pulled into the VHD; only hit the registry when it is
         # actually missing so provisioning doesn't pay a redundant manifest/layer round trip.
         # Use containerd's native exact-name filter rather than text-matching `images ls` output.
         if [ -z "$(ctr -n k8s.io images ls -q "name==${NVIDIA_DRIVER_IMAGE}:${NVIDIA_DRIVER_IMAGE_TAG}")" ]; then
             logs_to_events "AKS.CSE.configGPUDrivers.pullGPUDriverImage" pullGPUDriverImage
         fi
-        logs_to_events "AKS.CSE.configGPUDrivers.installGPUDriverImage" installGPUDriverImage
+        logs_to_events "AKS.CSE.configGPUDrivers.installGPUDriverImage" installGPUDriverImage "$GPU_INSTALL_ACTION"
         ret=$?
         if [ "$ret" -ne 0 ]; then
             echo "Failed to install GPU driver, exiting..."
diff --git a/spec/parts/linux/cloud-init/artifacts/cse_config_spec.sh b/spec/parts/linux/cloud-init/artifacts/cse_config_spec.sh
index bc98214c428..7b7d7b8c7df 100755
--- a/spec/parts/linux/cloud-init/artifacts/cse_config_spec.sh
+++ b/spec/parts/linux/cloud-init/artifacts/cse_config_spec.sh
@@ -1888,6 +1888,57 @@ SETUP_EOF
         End
     End
 
+    Describe 'configGPUDrivers prebake marker action selection'
+        # Mock everything the Ubuntu path touches so the test exercises only the
+        # marker -> aks-gpu action selection (install vs install-skip-build), including the
+        # driver_kind guard (a CUDA-baked marker on a GRID node must NOT skip the build).
+        # logs_to_events is mocked to faithfully dispatch the wrapped command (dropping the
+        # event-name arg) so the real installGPUDriverImage runs and surfaces the action.
+        logs_to_events() { shift; $@; }
+        waitForContainerdReady() { return 0; }
+        mkdir() { :; }
+        ctr() { echo "ctr $*"; }
+        nvidia-modprobe() { return 0; }
+        nvidia-smi() { return 0; }
+        ldconfig() { return 0; }
+        isMarinerOrAzureLinux() { return 1; }
+        isAzureLinuxOSGuard() { return 1; }
+        isACL() { return 1; }
+        systemctlEnableAndStart() { return 0; }
+        systemctl() { return 0; }
+        # Capture the action passed to the install container.
+        retrycmd_if_failure() { shift 3; echo "INSTALL_CMD: $*"; return 0; }
+
+        BeforeEach 'OS="$UBUNTU_OS_NAME"; NVIDIA_GPU_DRIVER_TYPE="cuda"; NVIDIA_DRIVER_IMAGE="mcr.microsoft.com/aks/aks-gpu-cuda"; NVIDIA_DRIVER_IMAGE_TAG="580.0.0"; CTR_GPU_INSTALL_CMD="ctr-run"; GPU_DKMS_MARKER_FILE="$(mktemp)"; rm -f "$GPU_DKMS_MARKER_FILE"'
+
+        It 'uses the full install action when no prebake marker is present'
+            When call configGPUDrivers
+            The output should include "/entrypoint.sh install"
+            The output should not include "install-skip-build"
+        End
+
+        It 'uses install-skip-build when the prebake marker matches the node driver kind'
+            marker="$(mktemp)"
+            printf 'driver_kind=cuda\n' > "$marker"
+            GPU_DKMS_MARKER_FILE="$marker"
+            When call configGPUDrivers
+            The output should include "/entrypoint.sh install-skip-build"
+            rm -f "$marker"
+        End
+
+        It 'falls back to full install when the marker driver_kind does not match the node (CUDA marker on GRID node)'
+            marker="$(mktemp)"
+            printf 'driver_kind=cuda\n' > "$marker"
+            GPU_DKMS_MARKER_FILE="$marker"
+            NVIDIA_GPU_DRIVER_TYPE="grid"
+            NVIDIA_DRIVER_IMAGE="mcr.microsoft.com/aks/aks-gpu-grid"
+            When call configGPUDrivers
+            The output should include "/entrypoint.sh install"
+            The output should not include "install-skip-build"
+            rm -f "$marker"
+        End
+    End
+
     Describe 'configureManagedGPUExperience'
         # Mock the helper functions
         logs_to_events() {