diff --git a/modelopt/torch/utils/random.py b/modelopt/torch/utils/random.py
index b7ab30f2392..0c8249ff980 100644
--- a/modelopt/torch/utils/random.py
+++ b/modelopt/torch/utils/random.py
@@ -44,9 +44,10 @@ def _get_generator(seed: int | None = None) -> _random.Random:
         delattr(_get_generator, "generator")
     if not hasattr(_get_generator, "generator"):
         # synchronizing random seed and initialize generator
-        seed = dist.broadcast(seed or _random.getrandbits(64))
+        is_manual = seed is not None
+        seed = dist.broadcast(seed if seed is not None else _random.getrandbits(64))
         _get_generator.generator = _random.Random(seed)  # type: ignore[attr-defined]
-        _get_generator.is_manual = seed is not None  # type: ignore[attr-defined]
+        _get_generator.is_manual = is_manual  # type: ignore[attr-defined]
         _get_generator.is_synced = dist.size() > 1  # type: ignore[attr-defined]
     return _get_generator.generator  # type: ignore[attr-defined]
 
@@ -157,7 +158,12 @@ def _deterministic_seed():
     Resets the random state to prior upon exit.
     """
     old_random_generator = _get_generator()
+    old_is_manual = getattr(_get_generator, "is_manual", False)
+    old_is_synced = getattr(_get_generator, "is_synced", False)
     _set_deterministic_seed(1024)
-    yield
-    delattr(_get_generator, "generator")
-    setattr(_get_generator, "generator", old_random_generator)
+    try:
+        yield
+    finally:
+        _get_generator.generator = old_random_generator  # type: ignore[attr-defined]
+        _get_generator.is_manual = old_is_manual  # type: ignore[attr-defined]
+        _get_generator.is_synced = old_is_synced  # type: ignore[attr-defined]
diff --git a/tests/unit/torch/utils/test_random_seed.py b/tests/unit/torch/utils/test_random_seed.py
new file mode 100644
index 00000000000..240efd70158
--- /dev/null
+++ b/tests/unit/torch/utils/test_random_seed.py
@@ -0,0 +1,77 @@
+# SPDX-FileCopyrightText: Copyright (c) 2024 NVIDIA CORPORATION & AFFILIATES. All rights reserved.
+# SPDX-License-Identifier: Apache-2.0
+#
+# 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.
+
+"""Regression tests for seed handling in ``modelopt.torch.utils.random``."""
+
+import random as stdlib_random
+
+import pytest
+
+from modelopt.torch.utils import random as mtu_random
+from modelopt.torch.utils.random import _get_generator
+
+
+def _clear_generator_cache():
+    for attr in ("generator", "is_manual", "is_synced"):
+        if hasattr(_get_generator, attr):
+            delattr(_get_generator, attr)
+
+
+@pytest.fixture(autouse=True)
+def _fresh_generator_cache():
+    """Clear the cached generator state on ``_get_generator`` around each test."""
+    _clear_generator_cache()
+    yield
+    _clear_generator_cache()
+
+
+def test_explicit_seed_zero_is_honored():
+    """An explicit seed of 0 must not be silently replaced by random bits."""
+    _get_generator(seed=0)
+    stream_0a = [mtu_random.random() for _ in range(5)]
+
+    _get_generator(seed=0)
+    stream_0b = [mtu_random.random() for _ in range(5)]
+
+    _get_generator(seed=1)
+    stream_1 = [mtu_random.random() for _ in range(5)]
+
+    reference = stdlib_random.Random(0)
+    assert stream_0a == stream_0b
+    assert stream_0a == [reference.random() for _ in range(5)]
+    assert stream_0a != stream_1
+
+
+def test_is_manual_flag_reflects_original_argument():
+    """``is_manual`` must be False for auto-seeding and True for a manual seed."""
+    _get_generator()
+    assert _get_generator.is_manual is False
+
+    _get_generator(seed=42)
+    assert _get_generator.is_manual is True
+
+
+def test_deterministic_seed_restores_generator_on_exception():
+    """``_deterministic_seed`` must restore the outer generator even if the body raises."""
+    _get_generator(seed=7)
+    reference = stdlib_random.Random(7)
+    assert [mtu_random.random() for _ in range(3)] == [reference.random() for _ in range(3)]
+
+    with pytest.raises(RuntimeError, match="boom"), mtu_random._deterministic_seed():
+        mtu_random.random()
+        raise RuntimeError("boom")
+
+    # The outer stream must continue exactly where it left off.
+    assert [mtu_random.random() for _ in range(3)] == [reference.random() for _ in range(3)]