diff --git a/srsgnb/hdr/stack/mac/sched_nr_ue.h b/srsgnb/hdr/stack/mac/sched_nr_ue.h
index 0fd4eb123..9fcbed9b6 100644
--- a/srsgnb/hdr/stack/mac/sched_nr_ue.h
+++ b/srsgnb/hdr/stack/mac/sched_nr_ue.h
@@ -61,7 +61,7 @@ public:
   struct pdu_builder {
     pdu_builder() = default;
     explicit pdu_builder(uint32_t cc_, ue_buffer_manager& parent_) : cc(cc_), parent(&parent_) {}
-    void alloc_subpdus(uint32_t rem_bytes, sched_nr_interface::dl_pdu_t& pdu);
+    bool alloc_subpdus(uint32_t rem_bytes, sched_nr_interface::dl_pdu_t& pdu);
 
   private:
     uint32_t           cc     = SRSRAN_MAX_CARRIERS;
@@ -180,9 +180,9 @@ public:
   ul_harq_proc* find_empty_ul_harq() { return ue->harq_ent.find_empty_ul_harq(); }
 
   /// Build PDU with MAC CEs and MAC SDUs
-  void build_pdu(uint32_t rem_bytes, sched_nr_interface::dl_pdu_t& pdu)
+  bool build_pdu(uint32_t rem_bytes, sched_nr_interface::dl_pdu_t& pdu)
   {
-    ue->pdu_builder.alloc_subpdus(rem_bytes, pdu);
+    return ue->pdu_builder.alloc_subpdus(rem_bytes, pdu);
   }
 
   /// Channel Information Getters
diff --git a/srsgnb/src/stack/mac/sched_nr_grant_allocator.cc b/srsgnb/src/stack/mac/sched_nr_grant_allocator.cc
index 34a2c33de..f1aa3e404 100644
--- a/srsgnb/src/stack/mac/sched_nr_grant_allocator.cc
+++ b/srsgnb/src/stack/mac/sched_nr_grant_allocator.cc
@@ -353,33 +353,51 @@ alloc_result bwp_slot_allocator::alloc_pdsch(slot_ue& ue, uint32_t ss_id, const
   slot_cfg.idx = ue.pdsch_slot.to_uint();
   // Value 0.95 is from TS 38.214 v15.14.00, Section 5.1.3, page 17
   const static float max_R = 0.95;
-  double             R_prime = max_R;
+  double             R_prime;
+  const static int   min_MCS_ccch = 4;
+  // The purpose of the external loop is to reset the MCS to a min value of 4 if there are not enough PRBs to
+  // allocate the SRB0/CCCH. This loop only affects the low MCS values
   while (true) {
-    // Generate PDSCH
-    bool success = ue->phy().get_pdsch_cfg(slot_cfg, pdcch.dci, pdsch.sch);
-    srsran_assert(success, "Error converting DCI to grant");
-    if (ue.h_dl->nof_retx() != 0) {
-      srsran_assert(pdsch.sch.grant.tb[0].tbs == (int)ue.h_dl->tbs(), "The TBS did not remain constant in retx");
+    // The purpose of the internal loop is to decrease the MCS if the effective coderate is too high. This loop
+    // only affects the high MCS values
+    while (true) {
+      // Generate PDSCH
+      bool success = ue->phy().get_pdsch_cfg(slot_cfg, pdcch.dci, pdsch.sch);
+      srsran_assert(success, "Error converting DCI to grant");
+      if (ue.h_dl->nof_retx() != 0) {
+        srsran_assert(pdsch.sch.grant.tb[0].tbs == (int)ue.h_dl->tbs(), "The TBS did not remain constant in retx");
+      }
+      R_prime = pdsch.sch.grant.tb[0].R_prime;
+      if (ue.h_dl->nof_retx() > 0 or R_prime < max_R or mcs <= 0) {
+        break;
+      }
+      // Decrease MCS if first tx and rate is too high
+      mcs--;
+      pdcch.dci.mcs = mcs;
     }
-    R_prime = pdsch.sch.grant.tb[0].R_prime;
-    if (ue.h_dl->nof_retx() > 0 or R_prime < max_R or mcs <= 0) {
+    if (R_prime >= max_R and mcs == 0) {
+      logger.warning("Couldn't find mcs that leads to R<0.95");
+    }
+    ue.h_dl->set_mcs(mcs);
+    ue.h_dl->set_tbs(pdsch.sch.grant.tb[0].tbs); // set HARQ TBS
+    pdsch.sch.grant.tb[0].softbuffer.tx = ue.h_dl->get_softbuffer().get();
+    pdsch.data[0]                       = ue.h_dl->get_tx_pdu()->get();
+
+    // Select scheduled LCIDs and update UE buffer state
+    bwp_pdsch_slot.dl.data.emplace_back();
+    // NOTE: ue.h_dl->tbs() has to be converted from bits to bytes
+    bool segmented_ccch_pdu = not ue.build_pdu(ue.h_dl->tbs() / 8, bwp_pdsch_slot.dl.data.back());
+    if (segmented_ccch_pdu) {
+      // In case of segmented PDU for CCCH, set minimum MCS to 4 and re-run the outer while loop
+      bwp_pdsch_slot.dl.data.pop_back();
+      mcs           = min_MCS_ccch;
+      pdcch.dci.mcs = mcs;
+      logger.warning(
+          "SCHED: MCS increased to min value %d to allocate SRB0/CCCH for rnti=0x%x", min_MCS_ccch, ue->rnti);
+    } else {
       break;
     }
-    // Decrease MCS if first tx and rate is too high
-    mcs--;
-    pdcch.dci.mcs = mcs;
-  }
-  if (R_prime >= max_R and mcs == 0) {
-    logger.warning("Couldn't find mcs that leads to R<0.95");
   }
-  ue.h_dl->set_mcs(mcs);
-  ue.h_dl->set_tbs(pdsch.sch.grant.tb[0].tbs); // set HARQ TBS
-  pdsch.sch.grant.tb[0].softbuffer.tx = ue.h_dl->get_softbuffer().get();
-  pdsch.data[0]                       = ue.h_dl->get_tx_pdu()->get();
-
-  // Select scheduled LCIDs and update UE buffer state
-  bwp_pdsch_slot.dl.data.emplace_back();
-  ue.build_pdu(ue.h_dl->tbs(), bwp_pdsch_slot.dl.data.back());
 
   // Generate PUCCH
   bwp_uci_slot.pending_acks.emplace_back();
diff --git a/srsgnb/src/stack/mac/sched_nr_ue.cc b/srsgnb/src/stack/mac/sched_nr_ue.cc
index 8f9b78ef6..061ea98e9 100644
--- a/srsgnb/src/stack/mac/sched_nr_ue.cc
+++ b/srsgnb/src/stack/mac/sched_nr_ue.cc
@@ -27,8 +27,16 @@ int ue_buffer_manager::get_dl_tx_total() const
   return total_bytes;
 }
 
-void ue_buffer_manager::pdu_builder::alloc_subpdus(uint32_t rem_bytes, sched_nr_interface::dl_pdu_t& pdu)
+// Return true if there is no SRB0/CCCH MAC PDU segmentation, false otherwise
+bool ue_buffer_manager::pdu_builder::alloc_subpdus(uint32_t rem_bytes, sched_nr_interface::dl_pdu_t& pdu)
 {
+  // In case of SRB0/CCCH PDUs, we need to check whether there is PDU segmentation; if LCID = 0 has emtpy buffer, no
+  // need to perform this check
+  bool check_ccch_pdu_segmentation =
+      parent->get_dl_tx_total(srsran::mac_sch_subpdu_nr::nr_lcid_sch_t::CCCH) > 0 ? true : false;
+
+  // First step: allocate MAC CEs until resources allow
+  srsran::deque<ce_t> restore_ces;
   for (ce_t ce : parent->pending_ces) {
     if (ce.cc == cc) {
       // Note: This check also avoids thread collisions across UE carriers
@@ -38,17 +46,35 @@ void ue_buffer_manager::pdu_builder::alloc_subpdus(uint32_t rem_bytes, sched_nr_
       }
       rem_bytes -= size_ce;
       pdu.subpdus.push_back(ce.lcid);
-      parent->pending_ces.pop_front();
+      // If there is possibility of CCCH segmentation, we need to save the MAC CEs in a tmp queue to be later restored
+      if (check_ccch_pdu_segmentation) {
+        restore_ces.push_back(parent->pending_ces.front());
+        parent->pending_ces.pop_front();
+      }
     }
   }
 
+  // Second step: allocate the remaining LCIDs (LCIDs for MAC CEs are addressed above)
   for (uint32_t lcid = 0; rem_bytes > 0 and is_lcid_valid(lcid); ++lcid) {
     uint32_t pending_lcid_bytes = parent->get_dl_tx_total(lcid);
+    // Verify if the TBS is big enough to store the entire CCCH buffer
+    // Note: (pending_lcid_bytes > rem_bytes) implies (check_ccch_pdu_segmentation == true)
+    if (lcid == srsran::mac_sch_subpdu_nr::nr_lcid_sch_t::CCCH and pending_lcid_bytes > rem_bytes) {
+      // restore the MAC CEs as they were at the beginning of the function
+      for (ce_t ce : restore_ces) {
+        parent->pending_ces.push_back(ce);
+      }
+      // double check if this line is required
+      pdu.subpdus.clear();
+      return false;
+    }
     if (pending_lcid_bytes > 0) {
       rem_bytes -= std::min(rem_bytes, pending_lcid_bytes);
       pdu.subpdus.push_back(lcid);
     }
   }
+
+  return true;
 }
 
 ///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////