diff --git a/grain/_src/python/dataset/dataset.py b/grain/_src/python/dataset/dataset.py
index ed49bfe1..f3a0695e 100644
--- a/grain/_src/python/dataset/dataset.py
+++ b/grain/_src/python/dataset/dataset.py
@@ -1502,6 +1502,10 @@ def set_state_fn(state: str):
 
   ### END Orbax checkpointing API.
 
+  def is_ready(self) -> bool:
+    """Returns True if the iterator has data ready to be consumed."""
+    return True
+
   def start_prefetch(self) -> None:
     """Starts processing elements in the first asynchronous parent iterator.
 
diff --git a/grain/_src/python/dataset/transformations/interleave.py b/grain/_src/python/dataset/transformations/interleave.py
index 9db05ba9..2ca1008a 100644
--- a/grain/_src/python/dataset/transformations/interleave.py
+++ b/grain/_src/python/dataset/transformations/interleave.py
@@ -38,6 +38,7 @@ def __init__(
       num_make_iter_threads: int = 1,
       make_iter_buffer_size: int = 1,
       iter_buffer_size: int = 1,
+      allow_reordering: bool = False,
   ):
     # `datasets` is allowed to be a lazily evaluated `MapDataset`. We avoid
     # passing it as `parents` to not trigger evaluation early.
@@ -46,6 +47,7 @@ def __init__(
     self._num_make_iter_threads = num_make_iter_threads
     self._make_iter_buffer_size = make_iter_buffer_size
     self._iter_buffer_size = iter_buffer_size
+    self._allow_reordering = allow_reordering
     self._prefetch_ds_iter = (
         dataset.MapDataset.source(datasets)
         .map(
@@ -95,6 +97,17 @@ def __next__(self) -> T:
     timer = stats.Timer()
     _ = self._stats  # eagerly initialize stats
     while True:
+      if (
+          self._allow_reordering
+          and self._iterators_in_use[self._next_index_in_cycle] is not None
+      ):
+        for i in range(self._cycle_length):
+          idx = (self._next_index_in_cycle + i) % self._cycle_length
+          if iterator := self._iterators_in_use[idx]:
+            if iterator.is_ready():
+              self._next_index_in_cycle = idx
+              break
+
       if iterator_to_use := self._iterators_in_use[self._next_index_in_cycle]:
         try:
           result = iterator_to_use.__next__()
@@ -384,6 +397,7 @@ def __init__(
       num_make_iter_threads: int = 1,
       make_iter_buffer_size: int = 1,
       iter_buffer_size: int = 1,
+      allow_reordering: bool = False,
   ):
     """Initializes the InterleaveIterDataset.
 
@@ -405,6 +419,9 @@ def __init__(
         is 1, with this we'll always keep the next iterator ready in advance.
       iter_buffer_size: Optional. The number of elements to prefetch from each
         iterator. Default value is 1.
+      allow_reordering: Optional. If True, the next element will be taken from
+        the first iterator that has an element ready. If False, the iterators
+        will be cycled through in a round-robin fashion. Default value is False.
     """
     super().__init__()
     self._datasets = datasets
@@ -412,6 +429,7 @@ def __init__(
     self._num_make_iter_threads = num_make_iter_threads
     self._make_iter_buffer_size = make_iter_buffer_size
     self._iter_buffer_size = iter_buffer_size
+    self._allow_reordering = allow_reordering
 
   def __iter__(self) -> dataset.DatasetIterator[T]:
     return InterleaveDatasetIterator(
@@ -420,6 +438,7 @@ def __iter__(self) -> dataset.DatasetIterator[T]:
         num_make_iter_threads=self._num_make_iter_threads,
         make_iter_buffer_size=self._make_iter_buffer_size,
         iter_buffer_size=self._iter_buffer_size,
+        allow_reordering=self._allow_reordering,
     )
 
   def set_slice(self, sl: slice, sequential_slice: bool = False):
diff --git a/grain/_src/python/dataset/transformations/interleave_test.py b/grain/_src/python/dataset/transformations/interleave_test.py
index c5d64730..24ed0dd7 100644
--- a/grain/_src/python/dataset/transformations/interleave_test.py
+++ b/grain/_src/python/dataset/transformations/interleave_test.py
@@ -12,6 +12,8 @@
 # See the License for the specific language governing permissions and
 # limitations under the License.
 
+import contextlib
+
 from absl.testing import absltest
 from absl.testing import flagsaver
 from absl.testing import parameterized
@@ -20,7 +22,7 @@
 from grain._src.python.dataset import base
 from grain._src.python.dataset import dataset
 from grain._src.python.dataset.transformations import interleave
-from grain._src.python.testing.experimental import assert_equal_output_after_checkpoint
+from grain._src.python.testing import experimental
 import numpy as np
 
 
@@ -187,7 +189,7 @@ def test_checkpointing_comprehensive(self):
         for i in range(1, 6)
     ]
     ds = interleave.InterleaveIterDataset(ds, cycle_length=5)
-    assert_equal_output_after_checkpoint(ds)
+    experimental.assert_equal_output_after_checkpoint(ds)
 
   def test_set_state_does_not_recreate_iterators_if_not_needed(self):
     cycle_length = 5
@@ -291,6 +293,57 @@ def test_set_next_index_with_multiple_datasets(self):
     ):
       dataset.set_next_index(ds_iter, 0)
 
+  def test_skips_unready_iterator(self):
+    ds1 = dataset.MapDataset.range(10).to_iter_dataset()
+    ds2 = dataset.MapDataset.range(10, 20).to_iter_dataset()
+    ds = interleave.InterleaveIterDataset(
+        [ds1, ds2],
+        cycle_length=2,
+        num_make_iter_threads=2,
+        make_iter_buffer_size=2,
+        iter_buffer_size=5,
+        allow_reordering=True,
+    )
+    it = ds.__iter__()
+
+    # The first cycle is still deterministic because the iterators have to be
+    # prepared.
+    self.assertEqual(next(it), 0)
+    self.assertEqual(next(it), 10)
+
+    # pytype: disable=attribute-error
+    @contextlib.contextmanager
+    def _force_disable_iterator(idx):
+      """Helper method to set an iterator to "not ready"."""
+      orig_it_is_ready = it._iterators_in_use[idx].is_ready
+      it._iterators_in_use[idx].is_ready = lambda: False
+      try:
+        yield
+      finally:
+        it._iterators_in_use[idx].is_ready = orig_it_is_ready
+
+    # pytype: enable=attribute-error
+
+    # Force the first iterator to be unready. It should only read from the 2nd
+    # iterator.
+    with _force_disable_iterator(0):
+      self.assertEqual(next(it), 11)
+      self.assertEqual(next(it), 12)
+      self.assertEqual(next(it), 13)
+
+    # Force the second iterator the be unready. It should only read from the 1st
+    # iterator.
+    with _force_disable_iterator(1):
+      self.assertEqual(next(it), 1)
+      self.assertEqual(next(it), 2)
+      self.assertEqual(next(it), 3)
+
+    # Verify we can get the remaining values.
+    remaining_values = sorted(list(it))
+    self.assertEqual(
+        remaining_values, [4, 5, 6, 7, 8, 9, 14, 15, 16, 17, 18, 19]
+    )
+
 
 if __name__ == "__main__":
   absltest.main()
diff --git a/grain/_src/python/dataset/transformations/prefetch.py b/grain/_src/python/dataset/transformations/prefetch.py
index a9cde484..23144913 100644
--- a/grain/_src/python/dataset/transformations/prefetch.py
+++ b/grain/_src/python/dataset/transformations/prefetch.py
@@ -183,6 +183,11 @@ def _threshold_checker(self):
         raise_threshold=self._ctx.dataset_options.filter_raise_threshold_ratio,
     )
 
+  def is_ready(self) -> bool:
+    return (
+        bool(self._buffer) or self._next_returned_index == self._dataset_length
+    )
+
   @dataset_stats.record_next_duration_if_output
   @dataset_stats.trace_input_pipeline_next(
       stage_category=dataset_stats.IPL_CAT_PREFETCH
@@ -547,6 +552,9 @@ def start_prefetch(self):
     )
     self._prefetch_thread.start()
 
+  def is_ready(self) -> bool:
+    return not self._buffer.empty()
+
   @dataset_stats.record_next_duration_if_output
   @dataset_stats.trace_input_pipeline_next(
       stage_category=dataset_stats.IPL_CAT_PREFETCH