diff --git a/examples/run_sft.py b/examples/run_sft.py
index 4e80414f8d..69f3128231 100644
--- a/examples/run_sft.py
+++ b/examples/run_sft.py
@@ -17,7 +17,6 @@
 import pprint
 from functools import partial
 
-from datasets import concatenate_datasets
 from omegaconf import OmegaConf
 from transformers import AutoTokenizer
 
@@ -29,6 +28,7 @@
     load_response_dataset,
     update_single_dataset_config,
 )
+from nemo_rl.data.utils import merge_datasets
 from nemo_rl.distributed.virtual_cluster import init_ray
 from nemo_rl.utils.config import (
     load_config,
@@ -89,7 +89,7 @@ def setup_data(tokenizer: AutoTokenizer, data_config: DataConfig):
         if hasattr(data, "preprocessor") and data.preprocessor is not None:
             task_data_preprocessors[data.task_name] = data.preprocessor
 
-    merged_data = concatenate_datasets([data.dataset for data in data_list])
+    merged_data = merge_datasets([data.dataset for data in data_list])
     dataset = AllTaskProcessedDataset(
         merged_data,
         tokenizer,
@@ -144,7 +144,7 @@ def setup_data(tokenizer: AutoTokenizer, data_config: DataConfig):
 
     val_dataset = None
     if len(val_data_list) > 0:
-        merged_val_data = concatenate_datasets(val_data_list)
+        merged_val_data = merge_datasets(val_data_list)
         val_dataset = AllTaskProcessedDataset(
             merged_val_data,
             tokenizer,
diff --git a/nemo_rl/data/utils.py b/nemo_rl/data/utils.py
index 2819e27582..cbfc50cf52 100644
--- a/nemo_rl/data/utils.py
+++ b/nemo_rl/data/utils.py
@@ -14,7 +14,7 @@
 
 from typing import Any, Optional, Union
 
-from datasets import concatenate_datasets
+from datasets import Dataset, concatenate_datasets
 from transformers import AutoProcessor, AutoTokenizer
 
 from nemo_rl.data import DataConfig
@@ -25,11 +25,27 @@
     load_response_dataset,
     update_single_dataset_config,
 )
+from nemo_rl.data.datasets.response_datasets.oai_format_dataset import (
+    PreservingDataset,
+)
 from nemo_rl.data.processors import preference_preprocessor
 from nemo_rl.environments.interfaces import EnvironmentInterface
 from nemo_rl.environments.utils import create_env
 
 
+def merge_datasets(datasets: list) -> Union[Dataset, "PreservingDataset"]:
+    """Merge a list of datasets, handling both HuggingFace Dataset and PreservingDataset.
+
+    HuggingFace's ``concatenate_datasets`` does not accept ``PreservingDataset`` objects.
+    This helper detects the dataset types and merges them appropriately.
+    """
+    if all(isinstance(d, PreservingDataset) for d in datasets):
+        merged_data = [item for d in datasets for item in d.data]
+        return PreservingDataset(merged_data)
+
+    return concatenate_datasets(datasets)
+
+
 # TODO: @yukih: unify to setup_data after dataset refactored
 def setup_response_data(
     tokenizer: AutoProcessor | AutoTokenizer,
@@ -134,7 +150,7 @@ def setup_response_data(
         }
     else:
         # merge datasets into a single dataset
-        merged_data = concatenate_datasets([data.dataset for data in data_list])
+        merged_data = merge_datasets([data.dataset for data in data_list])
         dataset = AllTaskProcessedDataset(
             merged_data,
             tokenizer,
@@ -199,7 +215,7 @@ def setup_response_data(
     # merge datasets
     val_dataset = None
     if len(val_data_list) > 0:
-        merged_val_data = concatenate_datasets(val_data_list)
+        merged_val_data = merge_datasets(val_data_list)
         val_dataset = AllTaskProcessedDataset(
             merged_val_data,
             tokenizer,
diff --git a/tests/unit/data/datasets/test_preserving_dataset.py b/tests/unit/data/datasets/test_preserving_dataset.py
index 9c16a6ffeb..9c06ef5b00 100644
--- a/tests/unit/data/datasets/test_preserving_dataset.py
+++ b/tests/unit/data/datasets/test_preserving_dataset.py
@@ -313,3 +313,59 @@ def test_comparison_with_standard_dataset(self):
         preserving_dataset = PreservingDataset(data)
         assert preserving_dataset[0]["tool_id"] == "123"
         assert "tool_id" not in preserving_dataset[1]  # Key doesn't exist
+
+
+class TestMergeDatasets:
+    """Test merge_datasets helper that handles both HF Dataset and PreservingDataset."""
+
+    def test_merge_preserving_datasets(self):
+        """Test merging multiple PreservingDatasets."""
+        from nemo_rl.data.utils import merge_datasets
+
+        ds1 = PreservingDataset([{"a": 1}, {"b": 2}])
+        ds2 = PreservingDataset([{"c": 3}])
+
+        merged = merge_datasets([ds1, ds2])
+
+        assert isinstance(merged, PreservingDataset)
+        assert len(merged) == 3
+        assert merged[0] == {"a": 1}
+        assert merged[1] == {"b": 2}
+        assert merged[2] == {"c": 3}
+
+    def test_merge_hf_datasets(self):
+        """Test merging standard HuggingFace Datasets still works."""
+        from nemo_rl.data.utils import merge_datasets
+
+        ds1 = Dataset.from_list([{"x": 1}, {"x": 2}])
+        ds2 = Dataset.from_list([{"x": 3}])
+
+        merged = merge_datasets([ds1, ds2])
+
+        assert isinstance(merged, Dataset)
+        assert len(merged) == 3
+        assert merged[0]["x"] == 1
+        assert merged[2]["x"] == 3
+
+    def test_merge_single_preserving_dataset(self):
+        """Test merging a single PreservingDataset."""
+        from nemo_rl.data.utils import merge_datasets
+
+        ds = PreservingDataset([{"a": 1, "b": 2}, {"c": 3}])
+
+        merged = merge_datasets([ds])
+
+        assert isinstance(merged, PreservingDataset)
+        assert len(merged) == 2
+
+    def test_merge_preserving_datasets_preserves_heterogeneous_structure(self):
+        """Test that merging PreservingDatasets doesn't introduce None-filling."""
+        from nemo_rl.data.utils import merge_datasets
+
+        ds1 = PreservingDataset([{"role": "user", "content": "hi", "tool_id": "1"}])
+        ds2 = PreservingDataset([{"role": "assistant", "content": "hello"}])
+
+        merged = merge_datasets([ds1, ds2])
+
+        assert "tool_id" in merged[0]
+        assert "tool_id" not in merged[1]  # No None-filling