diff --git a/fme/ace/data_loading/batch_data.py b/fme/ace/data_loading/batch_data.py
index f94a02a05..ea3e13348 100644
--- a/fme/ace/data_loading/batch_data.py
+++ b/fme/ace/data_loading/batch_data.py
@@ -12,6 +12,7 @@
 
 from fme.core.dataset.dataset import DatasetItem
 from fme.core.device import get_device
+from fme.core.distributed import Distributed
 from fme.core.labels import BatchLabels, LabelEncoding
 from fme.core.tensors import repeat_interleave_batch_dim, unfold_ensemble_dim
 from fme.core.typing_ import EnsembleTensorDict, TensorDict, TensorMapping
@@ -170,6 +171,18 @@ def to_device(self) -> "BatchData":
             labels=self.labels.to(device) if self.labels is not None else None,
         )
 
+    def scatter_spatial(self, global_img_shape: tuple[int, int]) -> "BatchData":
+        """Slice data tensors to the local spatial chunk."""
+        dist = Distributed.get_instance()
+        return self.__class__(
+            data=dist.scatter_spatial(dict(self.data), global_img_shape),
+            time=self.time,
+            horizontal_dims=self.horizontal_dims,
+            epoch=self.epoch,
+            labels=self.labels,
+            n_ensemble=self.n_ensemble,
+        )
+
     def to_cpu(self) -> "BatchData":
         return self.__class__(
             data={k: v.cpu() for k, v in self.data.items()},
diff --git a/fme/ace/data_loading/config.py b/fme/ace/data_loading/config.py
index 289971186..2a4bac517 100644
--- a/fme/ace/data_loading/config.py
+++ b/fme/ace/data_loading/config.py
@@ -78,10 +78,11 @@ def available_labels(self) -> set[str] | None:
 
     def __post_init__(self):
         dist = Distributed.get_instance()
-        if self.batch_size % dist.world_size != 0:
+        if self.batch_size % dist.total_data_parallel_ranks != 0:
             raise ValueError(
-                "batch_size must be divisible by the number of parallel "
-                f"workers, got {self.batch_size} and {dist.world_size}"
+                "batch_size must be divisible by the number of data-parallel "
+                f"workers, got {self.batch_size} and "
+                f"{dist.total_data_parallel_ranks}"
             )
         self._zarr_engine_used = self.dataset.zarr_engine_used
         if self.time_buffer < 0:
diff --git a/fme/ace/data_loading/getters.py b/fme/ace/data_loading/getters.py
index bb060117b..d1552a999 100644
--- a/fme/ace/data_loading/getters.py
+++ b/fme/ace/data_loading/getters.py
@@ -49,8 +49,13 @@ def _get_sampler(
 ) -> torch.utils.data.Sampler:
     dist = Distributed.get_instance()
     if sample_with_replacement_dataset_size is not None:
+        dist.require_no_spatial_parallelism(
+            "sample_with_replacement is not supported with spatial "
+            "parallelism. Spatial co-ranks would draw different samples, "
+            "producing corrupted data after scatter_spatial reassembly."
+        )
         local_sample_with_replacement_dataset_size = (
-            sample_with_replacement_dataset_size // dist.world_size
+            sample_with_replacement_dataset_size // dist.total_data_parallel_ranks
         )
         sampler = torch.utils.data.RandomSampler(
             dataset,
diff --git a/fme/ace/data_loading/gridded_data.py b/fme/ace/data_loading/gridded_data.py
index bd7fe86b6..1fd4d0484 100644
--- a/fme/ace/data_loading/gridded_data.py
+++ b/fme/ace/data_loading/gridded_data.py
@@ -50,7 +50,9 @@ def __init__(
             will be on the current device.
         """
         self._loader = loader
-        self._properties = properties.to_device()
+        shape = properties.horizontal_coordinates.shape
+        self._global_img_shape: tuple[int, int] = (shape[-2], shape[-1])
+        self._properties = properties.to_device().localize()
         self._timestep = self._properties.timestep
         self._vertical_coordinate = self._properties.vertical_coordinate
         self._mask_provider = self._properties.mask_provider
@@ -72,7 +74,8 @@ def _get_gpu_loader(
         self, base_loader: DataLoader[BatchData]
     ) -> DataLoader[BatchData]:
         def modify_and_on_device(batch: BatchData) -> BatchData:
-            return self._modifier(batch).to_device()
+            batch = self._modifier(batch)
+            return batch.to_device().scatter_spatial(self._global_img_shape)
 
         return SizedMap(modify_and_on_device, base_loader)
 
@@ -174,21 +177,23 @@ def __init__(
             will be on the current device.
         """
         self._loader = loader
-        self._properties = properties.to_device()
+        shape = properties.horizontal_coordinates.shape
+        self._global_img_shape: tuple[int, int] = (shape[-2], shape[-1])
+        self._properties = properties.to_device().localize()
         self._n_initial_conditions: int | None = None
         if isinstance(initial_condition, PrognosticStateDataRequirements):
             self._initial_condition: PrognosticState = get_initial_condition(
-                loader, initial_condition
+                self.loader, initial_condition
             )
         else:
             self._initial_condition = initial_condition.to_device()
 
     @property
     def loader(self) -> DataLoader[BatchData]:
-        def on_device(batch: BatchData) -> BatchData:
-            return batch.to_device()
+        def scatter_and_on_device(batch: BatchData) -> BatchData:
+            return batch.to_device().scatter_spatial(self._global_img_shape)
 
-        return SizedMap(on_device, self._loader)
+        return SizedMap(scatter_and_on_device, self._loader)
 
     @property
     def variable_metadata(self) -> dict[str, VariableMetadata]:
diff --git a/fme/ace/data_loading/inference.py b/fme/ace/data_loading/inference.py
index 7f9455e12..1bdeea445 100644
--- a/fme/ace/data_loading/inference.py
+++ b/fme/ace/data_loading/inference.py
@@ -286,7 +286,7 @@ def _get_batch_data(self, index) -> BatchData:
         sample_tuples = []
         for i_member in range(self._n_initial_conditions):
             # check if sample is one this local rank should process
-            if i_member % dist.world_size != dist.rank:
+            if i_member % dist.total_data_parallel_ranks != dist.data_parallel_rank:
                 continue
             i_window_start = i_start + self._start_indices[i_member]
             i_window_end = i_window_start + self._forward_steps_in_memory + 1
@@ -334,7 +334,9 @@ def __getitem__(self, index) -> BatchData:
             for key, value in self._persistence_data.data.items():
                 updated_data[key] = value.expand_as(result.data[key])
             result.data = {**result.data, **updated_data}
-        assert result.time.shape[0] == self._n_initial_conditions // dist.world_size
+        assert result.time.shape[0] == (
+            self._n_initial_conditions // dist.total_data_parallel_ranks
+        )
         return result
 
     def __len__(self) -> int:
diff --git a/fme/ace/data_loading/test_data_loader.py b/fme/ace/data_loading/test_data_loader.py
index 99463838f..5c6bc6282 100644
--- a/fme/ace/data_loading/test_data_loader.py
+++ b/fme/ace/data_loading/test_data_loader.py
@@ -1,6 +1,7 @@
 """This file contains unit tests related to creating torch Datasets from climate
 data (e.g. netCDF files)."""
 
+import datetime
 import math
 import os
 import pathlib
@@ -30,14 +31,20 @@
 )
 from fme.ace.data_loading.perturbation import PerturbationSelector, SSTPerturbation
 from fme.ace.requirements import DataRequirements, PrognosticStateDataRequirements
-from fme.core.coordinates import HybridSigmaPressureCoordinate
+from fme.core.coordinates import (
+    HybridSigmaPressureCoordinate,
+    LatLonCoordinates,
+    NullVerticalCoordinate,
+)
 from fme.core.dataset.concat import ConcatDatasetConfig
+from fme.core.dataset.data_typing import VariableMetadata
 from fme.core.dataset.merged import MergeDatasetConfig, MergeNoConcatDatasetConfig
+from fme.core.dataset.properties import DatasetProperties
 from fme.core.dataset.schedule import IntMilestone, IntSchedule
 from fme.core.dataset.xarray import XarrayDataConfig
 from fme.core.device import using_gpu
 from fme.core.distributed.distributed import Distributed
-from fme.core.distributed.model_torch_distributed import ModelTorchDistributed
+from fme.core.mask_provider import MaskProvider
 from fme.core.testing.regression import validate_tensor_dict
 from fme.core.typing_ import Slice
 
@@ -203,10 +210,6 @@ def test_ensemble_loader_n_samples(tmp_path, num_ensemble_members=3, n_samples=1
 def test_xarray_loader(tmp_path):
     """Checks that vertical coordinates are present."""
     dist = Distributed.get_instance()
-    if isinstance(dist._distributed, ModelTorchDistributed):
-        pytest.xfail(
-            "ModelTorchDistributed slicing along spatial dimensions is not implemented."
-        )
     tmp_path = dist.scatter_object(tmp_path)  # get the root value
     global_batch_size = 24
     if dist.is_root():
@@ -1173,3 +1176,67 @@ def test_pinned_memory(tmp_path, time_buffer: int):
     for batch in loader:
         tensor = next(iter(batch.data.values()))
         assert tensor.is_pinned() is using_gpu()
+
+
+@pytest.mark.parallel
+def test_localize_properties():
+    """Verify DatasetProperties.localize() partitions coords and masks across ranks."""
+    dist = Distributed.get_instance()
+    n_lat, n_lon = N_LAT, N_LON
+    lat = torch.linspace(-90.0, 90.0, n_lat)
+    lon = torch.linspace(0.0, 360.0, n_lon)
+    coords = LatLonCoordinates(lat=lat, lon=lon)
+    mask_tensor = torch.arange(n_lat * n_lon, dtype=torch.float32).reshape(
+        1, n_lat, n_lon
+    )
+    mask_provider = MaskProvider(masks={"mask_test": mask_tensor})
+    timestep = datetime.timedelta(hours=6)
+    metadata = {"temp": VariableMetadata(units="K", long_name="Temperature")}
+    vertical = NullVerticalCoordinate()
+    props = DatasetProperties(
+        variable_metadata=metadata,
+        vertical_coordinate=vertical,
+        horizontal_coordinates=coords,
+        mask_provider=mask_provider,
+        timestep=timestep,
+        is_remote=False,
+        all_labels=None,
+    )
+
+    local = props.localize()
+
+    # Unchanged fields
+    assert local.variable_metadata is metadata
+    assert local.vertical_coordinate is vertical
+    assert local.timestep == timestep
+
+    # Gather local coordinates to root and verify full, non-overlapping coverage.
+    assert isinstance(local.horizontal_coordinates, LatLonCoordinates)
+    local_lat = local.horizontal_coordinates.lat.tolist()
+    local_lon = local.horizontal_coordinates.lon.tolist()
+    all_lats = dist.gather_object(local_lat)
+    all_lons = dist.gather_object(local_lon)
+    if dist.is_root():
+        assert all_lats is not None and all_lons is not None
+        # Spatial co-ranks (same data_parallel_rank) should have distinct
+        # lat/lon slices whose union covers the global coordinates exactly.
+        combined_lat = sorted(set(v for rank_lat in all_lats for v in rank_lat))
+        combined_lon = sorted(set(v for rank_lon in all_lons for v in rank_lon))
+        assert combined_lat == lat.tolist(), "lat coverage incomplete or has gaps"
+        assert combined_lon == lon.tolist(), "lon coverage incomplete or has gaps"
+
+    # Gather local masks to root and verify they tile to the global mask.
+    assert isinstance(local.mask_provider, MaskProvider)
+    local_mask = local.mask_provider.masks["mask_test"]
+    h_slice, w_slice = dist.get_local_slices((n_lat, n_lon))
+    all_slices = dist.gather_object((h_slice, w_slice))
+    all_masks = dist.gather_object(local_mask.tolist())
+    if dist.is_root():
+        assert all_slices is not None and all_masks is not None
+        canvas = torch.zeros_like(mask_tensor)
+        for (hs, ws), mask_data in zip(all_slices, all_masks):
+            canvas[..., hs, ws] += torch.tensor(mask_data)
+        # Each cell should be covered once per data-parallel rank (spatial
+        # co-ranks have distinct slices, data-parallel ranks have identical ones).
+        expected_count = dist.total_data_parallel_ranks
+        torch.testing.assert_close(canvas, mask_tensor * expected_count)
diff --git a/fme/core/coordinates.py b/fme/core/coordinates.py
index 552dabf33..68c2fbb29 100644
--- a/fme/core/coordinates.py
+++ b/fme/core/coordinates.py
@@ -17,6 +17,7 @@
 from fme.core.corrector.registry import CorrectorABC
 from fme.core.derived_variables import compute_derived_quantities
 from fme.core.device import get_device
+from fme.core.distributed import Distributed
 from fme.core.gridded_ops import GriddedOperations, HEALPixOperations, LatLonOperations
 from fme.core.mask_provider import MaskProvider, MaskProviderABC, NullMaskProvider
 from fme.core.ocean_derived_variables import compute_ocean_derived_quantities
@@ -693,6 +694,17 @@ def meshgrid(self) -> tuple[torch.Tensor, torch.Tensor]:
     def shape(self) -> tuple[int, ...]:
         pass
 
+    @abc.abstractmethod
+    def localize(self: HC) -> HC:
+        """Return a copy with coordinates sliced to the local spatial chunk.
+
+        Uses ``Distributed.get_instance()`` to determine the local slices.
+        Coordinate types that do not support spatial parallelism should raise
+        ``SpatialParallelismNotImplemented`` when the distributed layout
+        requires slicing.
+        """
+        pass
+
     @abc.abstractmethod
     def get_state(self) -> TensorMapping:
         pass
@@ -788,6 +800,14 @@ def meshgrid(self) -> tuple[torch.Tensor, torch.Tensor]:
     def shape(self) -> tuple[int, int]:
         return (len(self.lat), len(self.lon))
 
+    def localize(self) -> "LatLonCoordinates":
+        dist = Distributed.get_instance()
+        h_slice, w_slice = dist.get_local_slices(self.shape)
+        return LatLonCoordinates(
+            lat=self.lat[h_slice],
+            lon=self.lon[w_slice],
+        )
+
     def get_state(self) -> TensorMapping:
         return {"lat": self.lat, "lon": self.lon}
 
@@ -939,6 +959,12 @@ def meshgrid(self) -> tuple[torch.Tensor, torch.Tensor]:
     def shape(self) -> tuple[int, int, int]:
         return (len(self.face), len(self.width), len(self.height))
 
+    def localize(self) -> "HEALPixCoordinates":
+        Distributed.get_instance().require_no_spatial_parallelism(
+            "HEALPixCoordinates does not support spatial parallelism."
+        )
+        return self
+
     def get_state(self) -> TensorMapping:
         return {"face": self.face, "height": self.height, "width": self.width}
 
diff --git a/fme/core/dataset/properties.py b/fme/core/dataset/properties.py
index be17f8cbe..5399492dc 100644
--- a/fme/core/dataset/properties.py
+++ b/fme/core/dataset/properties.py
@@ -38,6 +38,20 @@ def to_device(self) -> "DatasetProperties":
             self.all_labels,
         )
 
+    def localize(self) -> "DatasetProperties":
+        """Return a copy with coordinates and masks sliced to the local
+        spatial chunk based on the current distributed layout.
+        """
+        return DatasetProperties(
+            self.variable_metadata,
+            self.vertical_coordinate,
+            self.horizontal_coordinates.localize(),
+            self.mask_provider.localize(),
+            self.timestep,
+            self.is_remote,
+            self.all_labels,
+        )
+
     def update(self, other: "DatasetProperties", strict: bool = True):
         try:
             if self.timestep != other.timestep:
diff --git a/fme/core/distributed/distributed.py b/fme/core/distributed/distributed.py
index 9f3d842e9..d4ff33eb7 100644
--- a/fme/core/distributed/distributed.py
+++ b/fme/core/distributed/distributed.py
@@ -16,6 +16,12 @@
 T = TypeVar("T")
 
 
+class SpatialParallelismNotImplemented(NotImplementedError):
+    """Raised when a code path is incompatible with spatial parallelism."""
+
+    pass
+
+
 class Distributed:
     """
     A class to represent the distributed concerns for FME training.
@@ -183,6 +189,15 @@ def world_size(self) -> int:
         """
         return self._distributed.total_ranks
 
+    def require_no_spatial_parallelism(self, msg: str) -> None:
+        """Raise if spatial parallelism is active.
+
+        Use this to guard code paths that are known to be incorrect
+        when spatial co-ranks exist (world_size > total_data_parallel_ranks).
+        """
+        if self.world_size != self.total_data_parallel_ranks:
+            raise SpatialParallelismNotImplemented(msg)
+
     def get_sampler(
         self,
         dataset: torch.utils.data.Dataset,
diff --git a/fme/core/mask_provider.py b/fme/core/mask_provider.py
index 43b0587df..b5598a693 100644
--- a/fme/core/mask_provider.py
+++ b/fme/core/mask_provider.py
@@ -6,6 +6,7 @@
 
 import torch
 
+from fme.core.distributed import Distributed
 from fme.core.masking import NullMasking, StaticMasking
 from fme.core.typing_ import TensorDict, TensorMapping
 
@@ -27,6 +28,11 @@ def update(self: SelfType, other: SelfType) -> None: ...
     @abc.abstractmethod
     def build_output_masker(self) -> Callable[[TensorMapping], TensorDict]: ...
 
+    @abc.abstractmethod
+    def localize(self: SelfType) -> SelfType:
+        """Return a copy with masks sliced to the local spatial chunk."""
+        ...
+
     @abc.abstractmethod
     def get_state(self) -> dict[str, Any]: ...
 
@@ -38,6 +44,9 @@ def get_mask_tensor_for(self, name: str) -> torch.Tensor | None:
     def to(self, device: str) -> "_NullMaskProvider":
         return self
 
+    def localize(self) -> "_NullMaskProvider":
+        return self
+
     def update(self, other: MaskProviderABC) -> None:
         if not isinstance(other, _NullMaskProvider):
             raise ValueError(
@@ -124,6 +133,15 @@ def to(self, device: str) -> "MaskProvider":
             {name: tensor.to(device) for name, tensor in self.masks.items()}
         )
 
+    def localize(self) -> "MaskProvider":
+        if not self._masks:
+            return self
+        dist = Distributed.get_instance()
+        example_mask = next(iter(self._masks.values()))
+        img_shape = example_mask.shape[-2:]
+            {k: v[dist.get_local_slices(v.shape)].contiguous() for k, v in self._masks.items()}
+        )
+
     def update(self, other: "MaskProvider") -> None:
         """Update the MaskProvider's masks with masks from another MaskProvider.