diff --git a/Dockerfile b/Dockerfile
index 7f255e1d6e93..2375e3f4d738 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -37,7 +37,6 @@ WORKDIR /workspace
 
 # install build and runtime dependencies
 COPY requirements-common.txt requirements-common.txt
-COPY requirements-adag.txt requirements-adag.txt
 COPY requirements-cuda.txt requirements-cuda.txt
 RUN --mount=type=cache,target=/root/.cache/pip \
     python3 -m pip install -r requirements-cuda.txt
@@ -66,7 +65,6 @@ COPY setup.py setup.py
 COPY cmake cmake
 COPY CMakeLists.txt CMakeLists.txt
 COPY requirements-common.txt requirements-common.txt
-COPY requirements-adag.txt requirements-adag.txt
 COPY requirements-cuda.txt requirements-cuda.txt
 COPY pyproject.toml pyproject.toml
 COPY vllm vllm
diff --git a/MANIFEST.in b/MANIFEST.in
index 5a41e5e71418..82be639ef4d7 100644
--- a/MANIFEST.in
+++ b/MANIFEST.in
@@ -1,5 +1,4 @@
 include LICENSE
-include requirements-adag.txt
 include requirements-common.txt
 include requirements-cuda.txt
 include requirements-rocm.txt
diff --git a/requirements-adag.txt b/requirements-adag.txt
deleted file mode 100644
index e77f90fb8f85..000000000000
--- a/requirements-adag.txt
+++ /dev/null
@@ -1,3 +0,0 @@
-# Dependencies for Ray accelerated DAG
-cupy-cuda12x
-ray >= 2.32
\ No newline at end of file
diff --git a/requirements-test.txt b/requirements-test.txt
index 58cf1716b45c..44ba99fe84bd 100644
--- a/requirements-test.txt
+++ b/requirements-test.txt
@@ -1,6 +1,3 @@
-# Needed for Ray accelerated DAG tests
--r requirements-adag.txt
-
 # testing
 pytest
 tensorizer>=2.9.0
@@ -16,7 +13,7 @@ httpx
 librosa # required for audio test
 peft
 requests
-ray
+ray[adag]>=2.35
 sentence-transformers # required for embedding
 soundfile # required for audio test
 compressed-tensors==0.4.0 # required for compressed-tensors
diff --git a/vllm/executor/ray_gpu_executor.py b/vllm/executor/ray_gpu_executor.py
index ab8844bcdafe..1359a0d310a7 100644
--- a/vllm/executor/ray_gpu_executor.py
+++ b/vllm/executor/ray_gpu_executor.py
@@ -427,18 +427,34 @@ def _wait_for_tasks_completion(self, parallel_worker_tasks: Any) -> None:
         async_run_remote_workers_only to complete."""
         ray.get(parallel_worker_tasks)
 
-    def _compiled_ray_dag(self, enable_asyncio: bool):
+    def _check_ray_adag_installation(self):
         import pkg_resources
         from packaging import version
 
-        required_version = version.parse("2.32")
+        required_version = version.parse("2.35")
         current_version = version.parse(
             pkg_resources.get_distribution("ray").version)
         if current_version < required_version:
             raise ValueError(f"Ray version {required_version} or greater is "
                              f"required, but found {current_version}")
 
+        import importlib.util
+        adag_spec = importlib.util.find_spec(
+            "ray.experimental.compiled_dag_ref")
+        if adag_spec is None:
+            raise ValueError("Ray accelerated DAG is not installed. "
+                             "Run `pip install ray[adag]` to install it.")
+
+        cupy_spec = importlib.util.find_spec("cupy")
+        if cupy_spec is None and envs.VLLM_USE_RAY_COMPILED_DAG_NCCL_CHANNEL:
+            raise ValueError(
+                "cupy is not installed but required since "
+                "VLLM_USE_RAY_COMPILED_DAG_NCCL_CHANNEL is set."
+                "Run `pip install ray[adag]` and check cupy installation.")
+
+    def _compiled_ray_dag(self, enable_asyncio: bool):
         assert self.parallel_config.use_ray
+        self._check_ray_adag_installation()
         from ray.dag import InputNode, MultiOutputNode
         from ray.experimental.channel.torch_tensor_type import TorchTensorType