diff --git a/CHANGELOG.md b/CHANGELOG.md
index 08de8b00..96d44a06 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -13,6 +13,8 @@ changes. Best viewed [here](https://google-grain.readthedocs.io/en/latest/change
     hiding first batch processing behind model checkpoint recovery.
   * Introduces `grain.experimental.multithread_prefetch` as an
     alternative to multiprocessing prefetch in free-threading Python.
+  * Switches to multithreading instead of multiprocessing in
+    `IterDataset.mp_prefetch` when free-threaded Python is detected.
 
 * Breaking changes:
 
diff --git a/grain/_src/python/dataset/dataset.py b/grain/_src/python/dataset/dataset.py
index 02e76211..c1f6e52d 100644
--- a/grain/_src/python/dataset/dataset.py
+++ b/grain/_src/python/dataset/dataset.py
@@ -50,6 +50,7 @@
 from collections.abc import Awaitable, Callable, Iterable, Iterator, Sequence
 import functools
 import json
+import sys
 from typing import Any, Generic, TypeVar, Union, cast, overload
 import warnings
 
@@ -1290,6 +1291,9 @@ def mp_prefetch(
     prefetch workers, consider moving many-to-one and stateful transformations
     to after ``mp_prefetch`` or outside of the Grain pipeline.
 
+    NOTE: In free-threaded Python builds, this implementation switches to
+    multithreading, ignoring ``worker_init_fn``.
+
     Args:
       options: options for the prefetching processes. ``options.num_workers``
         must be greater than or equal to 0. If ``options.num_workers`` is 0,
@@ -1312,6 +1316,18 @@ def mp_prefetch(
     # pylint: disable=g-import-not-at-top
     from grain._src.python.dataset.transformations import prefetch
     # pylint: enable=g-import-not-at-top
+    if is_in_free_threaded_python():
+      if worker_init_fn is not None:
+        warnings.warn(
+            "Free-threaded Python is used: `mp_prefetch` falls back to"
+            " thread-based implementation and `worker_init_fn` is ignored."
+        )
+      return prefetch.multithread_prefetch(
+          self,
+          num_threads=options.num_workers,
+          buffer_size=options.per_worker_buffer_size,
+          sequential_slice=sequential_slice,
+      )
     return prefetch.MultiprocessPrefetchIterDataset(
         self,
         multiprocessing_options=options,
@@ -1684,3 +1700,8 @@ def get_execution_summary(
     )
   return execution_stats._get_execution_summary()
   # pylint: enable=protected-access
+
+
+def is_in_free_threaded_python() -> bool:
+  """Returns whether Python is running in free-threaded mode."""
+  return hasattr(sys, "_is_gil_enabled") and not sys._is_gil_enabled()  # pylint: disable=protected-access
diff --git a/grain/_src/python/dataset/dataset_test.py b/grain/_src/python/dataset/dataset_test.py
index 42a208cb..ce171393 100644
--- a/grain/_src/python/dataset/dataset_test.py
+++ b/grain/_src/python/dataset/dataset_test.py
@@ -31,6 +31,7 @@
 from grain._src.python.dataset import base
 from grain._src.python.dataset import dataset
 from grain._src.python.dataset import stats as dataset_stats
+from grain._src.python.dataset.transformations import prefetch
 import grain._src.python.testing.experimental as test_util
 from grain.proto import execution_summary_pb2
 import numpy as np
@@ -1182,6 +1183,21 @@ def test_apply(self, ds):
         ],
     )
 
+  def test_mp_prefetch_switches_to_threads_for_free_threaded_python(self):
+    ds = dataset.MapDataset.range(15).to_iter_dataset()
+    prefetched_ds = ds.mp_prefetch()
+    is_free_threaded = (
+        hasattr(sys, "_is_gil_enabled") and not sys._is_gil_enabled()
+    )
+    if is_free_threaded:
+      self.assertNotIsInstance(
+          prefetched_ds, prefetch.MultiprocessPrefetchIterDataset
+      )
+    else:
+      self.assertIsInstance(
+          prefetched_ds, prefetch.MultiprocessPrefetchIterDataset
+      )
+
 
 class TfRandomMapAlwaysAddingOne(transforms.TfRandomMapTransform):