diff --git a/.github/workflows/tests.yml b/.github/workflows/tests.yml
index e9a780d6f..768944f8d 100644
--- a/.github/workflows/tests.yml
+++ b/.github/workflows/tests.yml
@@ -16,6 +16,7 @@ on:
 env:
   TQDM_DISABLE: 1
   CI_SLACK_CHANNEL: ${{ secrets.CI_PUSH_MAIN_CHANNEL }}
+  PYTORCH_CUDA_ALLOC_CONF: "expandable_segments:True"
 
 jobs:
   check_code_quality:
diff --git a/tests/conftest.py b/tests/conftest.py
new file mode 100644
index 000000000..d22f3932c
--- /dev/null
+++ b/tests/conftest.py
@@ -0,0 +1,35 @@
+# Copyright 2020-2025 The HuggingFace Team. All rights reserved.
+#
+# 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.
+
+import gc
+
+import pytest
+import torch
+
+
+@pytest.fixture(autouse=True)
+def cleanup_gpu():
+    """
+    Automatically cleanup GPU memory after each test.
+
+    This fixture helps prevent CUDA out of memory errors when running tests in parallel
+    with pytest-xdist by ensuring models and tensors are properly garbage collected
+    and GPU memory caches are cleared between tests.
+    """
+    yield
+    # Cleanup after test
+    gc.collect()
+    if torch.cuda.is_available():
+        torch.cuda.empty_cache()
+        torch.cuda.synchronize()