diff --git a/.buildkite/scripts/hardware_ci/run-tpu-v1-test-part2.sh b/.buildkite/scripts/hardware_ci/run-tpu-v1-test-part2.sh
index 10d2e2364..b571618f4 100755
--- a/.buildkite/scripts/hardware_ci/run-tpu-v1-test-part2.sh
+++ b/.buildkite/scripts/hardware_ci/run-tpu-v1-test-part2.sh
@@ -128,7 +128,7 @@ run_and_track_test() {
 
 # --- Actual Test Execution ---
 run_and_track_test 1 "test_struct_output_generate.py" \
-    "HF_HUB_DISABLE_XET=1 python3 -m pytest -s -v /workspace/vllm/tests/v1/entrypoints/llm/test_struct_output_generate.py -k \"not test_structured_output_with_reasoning_matrices\""
+    "python3 -m pytest -s -v /workspace/vllm/tests/v1/entrypoints/llm/test_struct_output_generate.py -k \"not test_structured_output_with_reasoning_matrices\""
 run_and_track_test 2 "test_moe_pallas.py" \
     "python3 -m pytest -s -v /workspace/vllm/tests/tpu/test_moe_pallas.py"
 run_and_track_test 3 "test_lora.py" \
diff --git a/.buildkite/scripts/hardware_ci/run-tpu-v1-test.sh b/.buildkite/scripts/hardware_ci/run-tpu-v1-test.sh
index 9e7b5a546..d55a786e4 100755
--- a/.buildkite/scripts/hardware_ci/run-tpu-v1-test.sh
+++ b/.buildkite/scripts/hardware_ci/run-tpu-v1-test.sh
@@ -134,7 +134,7 @@ run_and_track_test 1 "test_compilation.py" \
 run_and_track_test 2 "test_basic.py" \
     "python3 -m pytest -s -v /workspace/vllm/tests/v1/tpu/test_basic.py"
 run_and_track_test 3 "test_accuracy.py::test_lm_eval_accuracy_v1_engine" \
-    "HF_HUB_DISABLE_XET=1 python3 -m pytest -s -v /workspace/vllm/tests/entrypoints/llm/test_accuracy.py::test_lm_eval_accuracy_v1_engine"
+    "python3 -m pytest -s -v /workspace/vllm/tests/entrypoints/llm/test_accuracy.py::test_lm_eval_accuracy_v1_engine"
 run_and_track_test 4 "test_quantization_accuracy.py" \
     "python3 -m pytest -s -v /workspace/vllm/tests/tpu/test_quantization_accuracy.py"
 run_and_track_test 5 "examples/offline_inference/tpu.py" \
diff --git a/tests/entrypoints/llm/test_accuracy.py b/tests/entrypoints/llm/test_accuracy.py
index 39bc8ab07..5d605e906 100644
--- a/tests/entrypoints/llm/test_accuracy.py
+++ b/tests/entrypoints/llm/test_accuracy.py
@@ -96,9 +96,6 @@ def test_lm_eval_accuracy_v1_engine_fp8_kv_cache(
         more_args = None
         if current_platform.is_tpu():
             # Limit compilation time for TPU V1
-
-            # xet doesn't work well for Qwen/Qwen3-1.7B
-            m.setenv("HF_HUB_DISABLE_XET", "1")
             more_args = "max_model_len=2048,max_num_seqs=128,kv_cache_dtype=fp8"
 
             # Add TP test (if provided)