diff --git a/src/art/utils/sft.py b/src/art/utils/sft.py
index 776330c9a..b9d571130 100644
--- a/src/art/utils/sft.py
+++ b/src/art/utils/sft.py
@@ -217,9 +217,6 @@ def create_sft_dataset_iterator(
     items_per_chunk = batch_size * chunk_size
     chunks_per_epoch = math.ceil(dataset_size / items_per_chunk)
 
-    # Convert initial_step (batch-based) to initial_chunk for skipping
-    initial_chunk = initial_step // chunk_size
-
     pbar = (
         tqdm(
             initial=initial_step, total=total_batches, desc="SFT Training", unit="step"
@@ -234,14 +231,16 @@ def create_sft_dataset_iterator(
             random.Random(seed + epoch).shuffle(epoch_trajs)
 
         for chunk_idx in range(chunks_per_epoch):
-            global_chunk_idx = epoch * chunks_per_epoch + chunk_idx
+            chunk_start = chunk_idx * items_per_chunk
+            chunk_end = min(chunk_start + items_per_chunk, dataset_size)
 
-            # Skip chunks before initial_step
-            if global_chunk_idx < initial_chunk:
+            # Resume by batch, since the last chunk of an epoch can be shorter.
+            chunk_start = max(
+                chunk_start, (initial_step - epoch * batches_per_epoch) * batch_size
+            )
+            if chunk_start >= chunk_end:
                 continue
 
-            chunk_start = chunk_idx * items_per_chunk
-            chunk_end = min(chunk_start + items_per_chunk, dataset_size)
             chunk_trajs = epoch_trajs[chunk_start:chunk_end]
 
             num_batches_in_chunk = math.ceil(len(chunk_trajs) / batch_size)
diff --git a/tests/unit/test_sft.py b/tests/unit/test_sft.py
index 687c0349c..abcab3e6f 100644
--- a/tests/unit/test_sft.py
+++ b/tests/unit/test_sft.py
@@ -11,6 +11,7 @@
 
 from art import TrainableModel
 from art.utils.sft import (
+    SFTChunk,
     create_lr_schedule,
     create_sft_dataset_iterator,
     iterate_file,
@@ -307,6 +308,58 @@ def test_create_sft_dataset_iterator_initial_step():
     assert resumed_chunks[0].config.learning_rate == all_chunks[1].config.learning_rate
 
 
+@pytest.mark.parametrize("dataset_size", [5, 6])
+@pytest.mark.parametrize("shuffle", [False, True])
+@pytest.mark.parametrize("initial_step", range(8))
+def test_create_sft_dataset_iterator_resume_batches(
+    dataset_size, shuffle, initial_step
+):
+    # Each epoch has three batches, so its second chunk has only one batch.
+    trajs = _make_trajectories(dataset_size)
+    all_chunks = list(
+        create_sft_dataset_iterator(
+            trajs,
+            chunk_size=2,
+            epochs=2,
+            batch_size=2,
+            shuffle=shuffle,
+            show_progress=False,
+        )
+    )
+    resumed_chunks = list(
+        create_sft_dataset_iterator(
+            trajs,
+            chunk_size=2,
+            epochs=2,
+            batch_size=2,
+            shuffle=shuffle,
+            initial_step=initial_step,
+            show_progress=False,
+        )
+    )
+
+    def batches(chunks: list[SFTChunk]):
+        result = []
+        for chunk in chunks:
+            lrs = chunk.config.learning_rate
+            assert isinstance(lrs, list)
+            for offset, lr in zip(
+                range(0, len(chunk.trajectories), 2), lrs, strict=True
+            ):
+                result.append(
+                    (
+                        chunk.trajectories[offset : offset + 2],
+                        lr,
+                        chunk.step + offset // 2,
+                        chunk.epoch,
+                        chunk.epoch_step + offset // 2,
+                    )
+                )
+        return result
+
+    assert batches(resumed_chunks) == batches(all_chunks)[initial_step:]
+
+
 def test_create_sft_dataset_iterator_deterministic():
     """Test that create_sft_dataset_iterator is deterministic with the same seed."""
     trajs = _make_trajectories(50)