diff --git a/src/algorithms/tracking/CKFTracking.cc b/src/algorithms/tracking/CKFTracking.cc
index dfcd8eb654..e7600ec103 100644
--- a/src/algorithms/tracking/CKFTracking.cc
+++ b/src/algorithms/tracking/CKFTracking.cc
@@ -6,35 +6,23 @@
 #include <Acts/Definitions/Algebra.hpp>
 #include <Acts/Definitions/TrackParametrization.hpp>
 #include <Acts/Definitions/Units.hpp>
+#include <Acts/Utilities/MathHelpers.hpp>
+#include <edm4hep/Vector3f.h>
 #if Acts_VERSION_MAJOR >= 46
-#include <Acts/EventData/BoundTrackParameters.hpp>
 #else
 #include <Acts/EventData/GenericBoundTrackParameters.hpp>
 #endif
 #include <Acts/EventData/MeasurementHelpers.hpp>
-#include <Acts/EventData/TrackStatePropMask.hpp>
-#include <Acts/Geometry/GeometryContext.hpp>
-#include <Acts/Geometry/GeometryHierarchyMap.hpp>
-#include <Acts/TrackFinding/CombinatorialKalmanFilterExtensions.hpp>
-#include <Acts/Utilities/CalibrationContext.hpp>
-#include <spdlog/common.h>
-#include <algorithm>
-#include <any>
-#include <array>
-#include <cstddef>
-#include <cstdint>
-#include <functional>
-#include <string>
-#include <system_error>
-#include <tuple>
-#include <utility>
 #include <Acts/EventData/ParticleHypothesis.hpp>
 #include <Acts/EventData/ProxyAccessor.hpp>
 #include <Acts/EventData/SourceLink.hpp>
 #include <Acts/EventData/TrackContainer.hpp>
 #include <Acts/EventData/TrackProxy.hpp>
+#include <Acts/EventData/TrackStatePropMask.hpp>
 #include <Acts/EventData/VectorMultiTrajectory.hpp>
 #include <Acts/EventData/VectorTrackContainer.hpp>
+#include <Acts/Geometry/GeometryContext.hpp>
+#include <Acts/Geometry/GeometryHierarchyMap.hpp>
 #include <Acts/Geometry/GeometryIdentifier.hpp>
 #include <Acts/Propagator/ActorList.hpp>
 #include <Acts/Propagator/EigenStepper.hpp>
@@ -45,8 +33,10 @@
 #include <Acts/Propagator/StandardAborters.hpp>
 #include <Acts/Surfaces/PerigeeSurface.hpp>
 #include <Acts/Surfaces/Surface.hpp>
+#include <Acts/TrackFinding/CombinatorialKalmanFilterExtensions.hpp>
 #include <Acts/TrackFinding/TrackStateCreator.hpp>
 #include <Acts/TrackFitting/GainMatrixUpdater.hpp>
+#include <Acts/Utilities/CalibrationContext.hpp>
 #include <Acts/Utilities/Logger.hpp>
 #include <Acts/Utilities/TrackHelpers.hpp>
 #include <ActsExamples/EventData/GeometryContainers.hpp>
@@ -60,9 +50,20 @@
 #include <edm4eic/TrackSeedCollection.h>
 #include <edm4eic/unit_system.h>
 #include <edm4hep/Vector2f.h>
+#include <spdlog/common.h>
 #include <Eigen/Core>
 #include <Eigen/Geometry>
 #include <Eigen/LU> // IWYU pragma: keep
+#include <algorithm>
+#include <any>
+#include <array>
+#include <cstddef>
+#include <cstdint>
+#include <functional>
+#include <string>
+#include <system_error>
+#include <tuple>
+#include <utility>
 // IWYU pragma: no_include <Acts/Utilities/detail/ContextType.hpp>
 // IWYU pragma: no_include <Acts/Utilities/detail/ContainerIterator.hpp>
 
@@ -185,8 +186,14 @@ void CKFTracking::process(const Input& input, const Output& output) const {
       ++i;
     }
 
-    // Construct a perigee surface as the target surface
-    auto pSurface = Acts::Surface::makeShared<const Acts::PerigeeSurface>(Acts::Vector3(0, 0, 0));
+    // Construct the perigee surface at the seed's reference point.
+    // For IP-originating tracks this is (0,0,0); for displaced seeds (e.g. from
+    // Lambda decay daughters) the seed carries the actual decay-vertex position
+    // so the CKF propagates from there instead of from the IP.
+    const auto& perigee_pos = track_seed.getPerigee();
+    auto pSurface           = Acts::Surface::makeShared<const Acts::PerigeeSurface>(Acts::Vector3(
+        perigee_pos.x * Acts::UnitConstants::mm, perigee_pos.y * Acts::UnitConstants::mm,
+        perigee_pos.z * Acts::UnitConstants::mm));
 
     // Create parameters
     acts_init_trk_params.emplace_back(pSurface, params, cov, Acts::ParticleHypothesis::pion());
diff --git a/src/algorithms/tracking/TrackParamTruthInit.cc b/src/algorithms/tracking/TrackParamTruthInit.cc
index 35ab17917b..61699dc8b0 100644
--- a/src/algorithms/tracking/TrackParamTruthInit.cc
+++ b/src/algorithms/tracking/TrackParamTruthInit.cc
@@ -87,19 +87,34 @@ void TrackParamTruthInit::process(const Input& input, const Output& output) cons
     // modify initial momentum to avoid bleeding truth to results when fit fails
     const auto pinit = pmag * (1.0 + m_cfg.momentumSmear * gaussian(generator));
 
-    // define line surface for local position values
-    auto perigee = Acts::Surface::makeShared<Acts::PerigeeSurface>(Acts::Vector3(0, 0, 0));
-
-    // track particle back to transverse point-of-closest approach
-    // with respect to the defined line surface
-    auto linesurface_parameter = -(v.x * p.x + v.y * p.y) / (p.x * p.x + p.y * p.y);
+    Acts::Vector3 direction(sin(theta) * cos(phi), sin(theta) * sin(phi), cos(theta));
 
-    auto xpca = v.x + linesurface_parameter * p.x;
-    auto ypca = v.y + linesurface_parameter * p.y;
-    auto zpca = v.z + linesurface_parameter * p.z;
+    // Choose the perigee reference point and compute local (d0, z0) coordinates.
+    //
+    // Default: back-extrapolate to the transverse PCA w.r.t. the beam axis at z=0.
+    // This is correct for IP-originating tracks but produces a reference point far
+    // behind the IP for displaced vertices (e.g. Lambda decay daughters at large z),
+    // which forces ACTS to propagate many metres before reaching the detector.
+    //
+    // useVertexAsPerigee: anchor the perigee at the MCParticle vertex itself so
+    // the CKF only needs to propagate forward from the actual production point.
+    Acts::Vector3 perigee_center;
+    Acts::Vector3 global;
+
+    if (m_cfg.useVertexAsPerigee) {
+      // Place perigee at the vertex; the particle starts there so d0=z0=0 exactly.
+      perigee_center = Acts::Vector3(v.x, v.y, v.z);
+      global         = perigee_center; // PCA = vertex itself
+    } else {
+      // Standard: perigee at beam axis origin, back-extrapolate to transverse PCA.
+      perigee_center             = Acts::Vector3(0, 0, 0);
+      auto linesurface_parameter = -(v.x * p.x + v.y * p.y) / (p.x * p.x + p.y * p.y);
+      global = Acts::Vector3(v.x + linesurface_parameter * p.x, v.y + linesurface_parameter * p.y,
+                             v.z + linesurface_parameter * p.z);
+    }
 
-    Acts::Vector3 global(xpca, ypca, zpca);
-    Acts::Vector3 direction(sin(theta) * cos(phi), sin(theta) * sin(phi), cos(theta));
+    // define line surface for local position values
+    auto perigee = Acts::Surface::makeShared<Acts::PerigeeSurface>(perigee_center);
 
     // convert from global to local coordinates using the defined line surface
     auto local = perigee->globalToLocal(m_geoSvc->getActsGeometryContext(), global, direction);
@@ -131,7 +146,9 @@ void TrackParamTruthInit::process(const Input& input, const Output& output) cons
 
     // Insert into edm4eic::TrackSeeds
     auto track_seed = track_seeds->create();
-    track_seed.setPerigee({0.F, 0.F, 0.F});
+    track_seed.setPerigee({static_cast<float>(perigee_center.x()),
+                           static_cast<float>(perigee_center.y()),
+                           static_cast<float>(perigee_center.z())});
     track_seed.setParams(track_parameter);
     // There are no hits to store to the seed
 
diff --git a/src/algorithms/tracking/TrackParamTruthInitConfig.h b/src/algorithms/tracking/TrackParamTruthInitConfig.h
index 09ae8ec69a..7f0f70a16e 100644
--- a/src/algorithms/tracking/TrackParamTruthInitConfig.h
+++ b/src/algorithms/tracking/TrackParamTruthInitConfig.h
@@ -15,4 +15,12 @@ struct TrackParamTruthInitConfig {
   double maxEtaForward  = 6.0;
   double maxEtaBackward = 4.1;
   double momentumSmear  = 0.1;
+  /** When true the seed perigee is placed at the MCParticle vertex instead
+   *  of being extrapolated back to the beam axis.  This is essential for
+   *  particles produced at large |z| (e.g. Lambda decay daughters) where
+   *  the standard back-extrapolation puts the reference point far behind
+   *  the IP, forcing ACTS to propagate many metres before reaching the
+   *  detector, which degrades or eliminates CKF efficiency.
+   */
+  bool useVertexAsPerigee = false;
 };
diff --git a/src/factories/tracking/TrackParamTruthInit_factory.h b/src/factories/tracking/TrackParamTruthInit_factory.h
index 450838cfa9..8e88c1b7b2 100644
--- a/src/factories/tracking/TrackParamTruthInit_factory.h
+++ b/src/factories/tracking/TrackParamTruthInit_factory.h
@@ -48,6 +48,9 @@ class TrackParamTruthInit_factory
   ParameterRef<double> m_momentumSmear{
       this, "MomentumSmear", config().momentumSmear,
       "Momentum magnitude fraction to use as width of gaussian smearing"};
+  ParameterRef<bool> m_useVertexAsPerigee{
+      this, "UseVertexAsPerigee", config().useVertexAsPerigee,
+      "Anchor the seed perigee at the MCParticle vertex (for displaced tracks)"};
 
   Service<ACTSGeo_service> m_ACTSGeoSvc{this};
   Service<AlgorithmsInit_service> m_algorithmsInit{this};
diff --git a/src/global/tracking/tracking.cc b/src/global/tracking/tracking.cc
index 18db46f52b..6c9e8b08c0 100644
--- a/src/global/tracking/tracking.cc
+++ b/src/global/tracking/tracking.cc
@@ -3,7 +3,6 @@
 
 #include <Acts/Definitions/Units.hpp>
 #include <Evaluator/DD4hepUnits.h>
-#include <JANA/JApplication.h>
 #include <JANA/JApplicationFwd.h>
 #include <JANA/Utils/JTypeInfo.h>
 #include <edm4eic/MCRecoTrackParticleAssociationCollection.h>
@@ -11,24 +10,18 @@
 #include <edm4eic/MCRecoTrackerHitLinkCollection.h>
 #include <edm4eic/Measurement2D.h>
 #include <edm4eic/TrackCollection.h>
-#include <edm4eic/TrackParameters.h>
-#include <edm4eic/TrackSeed.h>
 #include <edm4eic/TrackerHitCollection.h>
 #include <podio/detail/Link.h>
-#include <cmath>
 #include <deque>
-#include <functional>
 #include <memory>
 #include <string>
-#include <utility>
 #include <variant>
 #include <vector>
 
-#include "algorithms/meta/SubDivideFunctors.h"
+#include "algorithms/tracking/TrackParamTruthInitConfig.h"
 #include "algorithms/tracking/TrackPropagationConfig.h"
 #include "extensions/jana/JOmniFactoryGeneratorT.h"
 #include "factories/meta/CollectionCollector_factory.h"
-#include "factories/meta/SubDivideCollection_factory.h"
 #include "factories/tracking/ActsToTracks_factory.h"
 #include "factories/tracking/ActsTrackMerger_factory.h"
 #include "factories/tracking/AmbiguitySolver_factory.h"
@@ -49,19 +42,26 @@ void InitPlugin(JApplication* app) {
 
   using namespace eicrecon;
 
+  // Central tracker truth seeds: charged particles near the IP within the configured vertex cuts.
+  // (Includes Geant4 secondaries with simulatorStatus != 0; generator intermediates are rejected.)
   app->Add(new JOmniFactoryGeneratorT<TrackParamTruthInit_factory>(
-      "TrackerTruthSeeds", {"EventHeader", "MCParticles"},
-      {"TrackerTruthSeeds", "TrackerTruthSeedParameters"}, {}, app));
-
-  std::vector<std::pair<double, double>> thetaRanges{{0, 50 * dd4hep::mrad},
-                                                     {50 * dd4hep::mrad, 180 * dd4hep::deg}};
-  app->Add(new JOmniFactoryGeneratorT<SubDivideCollection_factory<edm4eic::TrackSeed>>(
-      "CentralB0TrackerTruthSeeds", {"TrackerTruthSeeds"},
-      {"B0TrackerTruthSeeds", "CentralTrackerTruthSeeds"},
-      {
-          .function = RangeSplit<
-              Chain<&edm4eic::TrackSeed::getParams, &edm4eic::TrackParameters::getTheta>>(
-              thetaRanges),
+      "CentralTrackerTruthSeeds", {"EventHeader", "MCParticles"},
+      {"CentralTrackerTruthSeeds", "CentralTrackerTruthSeedParameters"}, {}, app));
+
+  // Dedicated B0 truth seeder: relaxed vertex-z cut so that charged daughters of Lambda
+  // decays at large z (up to ~O(meters)) are also seeded for the B0 tracker CKF.
+  app->Add(new JOmniFactoryGeneratorT<TrackParamTruthInit_factory>(
+      "B0TrackerTruthSeeds", {"EventHeader", "MCParticles"},
+      {"B0TrackerTruthSeeds", "B0TrackerTruthSeedParameters"},
+      TrackParamTruthInitConfig{
+          .maxVertexX         = 120 * dd4hep::mm, // maxVertexZ * tan(20mrad) ~ 120mm
+          .maxVertexY         = 120 * dd4hep::mm,
+          .maxVertexZ         = 6000 * dd4hep::mm, // B0 tracker starts at ~6 m from IP
+          .minMomentum        = 100 * dd4hep::MeV,
+          .maxEtaForward      = 6.0,
+          .maxEtaBackward     = 0.0, // forward-going particles only
+          .momentumSmear      = 0.1,
+          .useVertexAsPerigee = true, // anchor at decay vertex, not beam-axis PCA
       },
       app));
 
diff --git a/src/services/io/podio/JEventProcessorPODIO.cc b/src/services/io/podio/JEventProcessorPODIO.cc
index c7ec93153d..7b49a9fada 100644
--- a/src/services/io/podio/JEventProcessorPODIO.cc
+++ b/src/services/io/podio/JEventProcessorPODIO.cc
@@ -62,9 +62,10 @@ JEventProcessorPODIO::JEventProcessorPODIO() {
       "MCParticlesHeadOnFrameNoBeamFX",
 
       // Central tracking hits combined
-      "TrackerTruthSeeds",
-      "TrackerTruthSeedParameters",
+      "CentralTrackerTruthSeedParameters",
       "CentralTrackerTruthSeeds",
+      "B0TrackerTruthSeedParameters",
+      "B0TrackerTruthSeeds",
       "CentralTrackingRecHits",
       "CentralTrackingRawHitLinks",
       "CentralTrackingRawHitAssociations",