diff --git a/python/ray/train/gbdt_trainer.py b/python/ray/train/gbdt_trainer.py
index debdb526ae9a..48a19866e011 100644
--- a/python/ray/train/gbdt_trainer.py
+++ b/python/ray/train/gbdt_trainer.py
@@ -158,8 +158,10 @@ def __init__(
     ):
         self.label_column = label_column
         self.params = params
-        self.dmatrix_params = dmatrix_params or {}
+
         self.train_kwargs = train_kwargs
+        self.dmatrix_params = dmatrix_params or {}
+
         super().__init__(
             scaling_config=scaling_config,
             run_config=run_config,
@@ -168,6 +170,12 @@ def __init__(
             resume_from_checkpoint=resume_from_checkpoint,
         )
 
+        # Ray Datasets should always use distributed loading.
+        for dataset_name in self.datasets.keys():
+            dataset_params = self.dmatrix_params.get(dataset_name, {})
+            dataset_params["distributed"] = True
+            self.dmatrix_params[dataset_name] = dataset_params
+
     def _validate_attributes(self):
         super()._validate_attributes()
         self._validate_config_and_datasets()
diff --git a/python/ray/train/tests/test_xgboost_trainer.py b/python/ray/train/tests/test_xgboost_trainer.py
index 38f8b1fc130e..931515e207ad 100644
--- a/python/ray/train/tests/test_xgboost_trainer.py
+++ b/python/ray/train/tests/test_xgboost_trainer.py
@@ -237,6 +237,27 @@ def test_validation(ray_start_4_cpus):
         )
 
 
+def test_distributed_data_loading(ray_start_4_cpus):
+    """Checks that XGBoostTrainer does distributed data loading for Ray Datasets."""
+
+    class DummyXGBoostTrainer(XGBoostTrainer):
+        def _train(self, params, dtrain, **kwargs):
+            assert dtrain.distributed
+            return super()._train(params=params, dtrain=dtrain, **kwargs)
+
+    train_dataset = ray.data.from_pandas(train_df)
+
+    trainer = DummyXGBoostTrainer(
+        scaling_config=ScalingConfig(num_workers=2),
+        label_column="target",
+        params=params,
+        datasets={TRAIN_DATASET_KEY: train_dataset},
+    )
+
+    assert trainer.dmatrix_params[TRAIN_DATASET_KEY]["distributed"]
+    trainer.fit()
+
+
 if __name__ == "__main__":
     import pytest
     import sys