diff --git a/src/agents/transcript-policy.ts b/src/agents/transcript-policy.ts
index 9ae14d38f..f50b0bfc9 100644
--- a/src/agents/transcript-policy.ts
+++ b/src/agents/transcript-policy.ts
@@ -73,6 +73,9 @@ export function resolveTranscriptPolicy(params: {
   const isGoogle = isGoogleModelApi(params.modelApi);
   const isAnthropic = isAnthropicApi(params.modelApi, provider);
   const isOpenAi = isOpenAiProvider(provider) || (!provider && isOpenAiApi(params.modelApi));
+  // Azure OpenAI uses OpenAI-compatible APIs but has stricter limits (40 char tool call IDs).
+  // Detect via provider name containing "azure".
+  const isAzureOpenAi = isOpenAiApi(params.modelApi) && provider.includes("azure");
   const isMistral = isMistralModel({ provider, modelId });
   const isOpenRouterGemini =
     (provider === "openrouter" || provider === "opencode") &&
@@ -83,9 +86,9 @@ export function resolveTranscriptPolicy(params: {
     modelId,
   });
 
-  const needsNonImageSanitize = isGoogle || isAnthropic || isMistral || isOpenRouterGemini;
+  const needsNonImageSanitize = isGoogle || isAnthropic || isMistral || isOpenRouterGemini || isAzureOpenAi;
 
-  const sanitizeToolCallIds = isGoogle || isMistral;
+  const sanitizeToolCallIds = isGoogle || isMistral || isAzureOpenAi;
   const toolCallIdMode: ToolCallIdMode | undefined = isMistral
     ? "strict9"
     : sanitizeToolCallIds