diff --git a/packages/agent/src/lib/stream-transformers.ts b/packages/agent/src/lib/stream-transformers.ts
index a6e24f9..66dac32 100644
--- a/packages/agent/src/lib/stream-transformers.ts
+++ b/packages/agent/src/lib/stream-transformers.ts
@@ -805,15 +805,38 @@ export function extractTextFromResponse(response: models.OpenResponsesResult): s
   return '';
 }
 
+/**
+ * Whether the provider stopped this response at `max_output_tokens`. The
+ * `function_call` items on such a response are an unfinished batch: the model
+ * asked for the set together, and the last one carries whatever argument
+ * prefix fit in the budget. Executing the complete ones would hand the model a
+ * result set with a silent hole, and spend side effects on a turn that
+ * truncates the same way on the same budget, so none of them run. The caller
+ * sees every item and `incomplete_details`, and resumes once the budget is
+ * raised.
+ */
+function isTruncatedAtMaxOutputTokens(response: models.OpenResponsesResult): boolean {
+  return (
+    response.status === 'incomplete' && response.incompleteDetails?.reason === 'max_output_tokens'
+  );
+}
+
 /**
  * Extract all tool calls from a completed response
  * Returns parsed tool calls with arguments as objects (not JSON strings)
+ *
+ * A response truncated at `max_output_tokens` yields no tool calls: see
+ * `isTruncatedAtMaxOutputTokens`.
  */
 export function extractToolCallsFromResponse(
   response: models.OpenResponsesResult,
 ): ParsedToolCall<Tool>[] {
   const toolCalls: ParsedToolCall<Tool>[] = [];
 
+  if (isTruncatedAtMaxOutputTokens(response)) {
+    return toolCalls;
+  }
+
   for (const item of response.output) {
     if (isFunctionCallItem(item)) {
       try {
@@ -959,9 +982,20 @@ export async function* buildToolCallStream(
 }
 
 /**
- * Check if a response contains any tool calls
+ * Check if a response contains any tool calls the loop should execute. A
+ * response truncated at `max_output_tokens` has none, even when its output
+ * carries a cut-off `function_call` item.
+ *
+ * Scope: this and `extractToolCallsFromResponse` decide execution on the
+ * completed response. `buildToolCallStream` (`getToolCallsStream()`) is a
+ * consumer view that yields each call as its `output_item.done` arrives,
+ * before the terminal event says whether the turn was cut off, so it still
+ * reports the model's emitted calls, truncated one included.
  */
 export function responseHasToolCalls(response: models.OpenResponsesResult): boolean {
+  if (isTruncatedAtMaxOutputTokens(response)) {
+    return false;
+  }
   return response.output.some((item) => 'type' in item && item.type === 'function_call');
 }
 
diff --git a/packages/agent/tests/unit/max-output-tokens-truncation.test.ts b/packages/agent/tests/unit/max-output-tokens-truncation.test.ts
new file mode 100644
index 0000000..4800cdb
--- /dev/null
+++ b/packages/agent/tests/unit/max-output-tokens-truncation.test.ts
@@ -0,0 +1,220 @@
+import type { OpenRouterCore } from '@openrouter/sdk/core';
+import type * as models from '@openrouter/sdk/models';
+import { beforeEach, describe, expect, it, vi } from 'vitest';
+import { z } from 'zod/v4';
+
+const mockBetaResponsesSend = vi.hoisted(() => vi.fn());
+
+vi.mock('@openrouter/sdk/funcs/betaResponsesSend', () => ({
+  betaResponsesSend: mockBetaResponsesSend,
+}));
+
+import { callModel } from '../../src/inner-loop/call-model.js';
+import { stepCountIs } from '../../src/lib/stop-conditions.js';
+import {
+  extractToolCallsFromResponse,
+  responseHasToolCalls,
+} from '../../src/lib/stream-transformers.js';
+import { ToolType } from '../../src/lib/tool-types.js';
+
+/**
+ * A turn the provider stopped at `max_output_tokens` two tokens into the tool
+ * call: a reasoning model spent the whole budget thinking. The `function_call`
+ * item is present but its arguments are a fragment. The loop must treat this
+ * as the end of the run, not as a call to execute or a reason to request again.
+ */
+function truncatedToolCallResponse(
+  output: models.OpenResponsesResult['output'] = [
+    {
+      type: 'function_call',
+      id: 'fc_1',
+      callId: 'call_1',
+      name: 'run_shell',
+      arguments: '{"commands":',
+      status: 'incomplete',
+    },
+  ],
+): models.OpenResponsesResult {
+  return {
+    id: 'resp_truncated',
+    object: 'response',
+    createdAt: 1_783_462_506,
+    completedAt: 1_783_462_520,
+    model: 'test-model',
+    status: 'incomplete',
+    incompleteDetails: {
+      reason: 'max_output_tokens',
+    },
+    error: null,
+    output,
+    usage: {
+      inputTokens: 4529,
+      inputTokensDetails: {
+        cachedTokens: 0,
+      },
+      outputTokens: 3002,
+      totalTokens: 7531,
+      outputTokensDetails: {
+        reasoningTokens: 3000,
+      },
+    },
+    temperature: null,
+    topP: null,
+    presencePenalty: null,
+    frequencyPenalty: null,
+    metadata: null,
+    instructions: null,
+    tools: [],
+    toolChoice: 'auto',
+    parallelToolCalls: false,
+  } as models.OpenResponsesResult;
+}
+
+/**
+ * The same cut-off after a parallel batch: three weather calls completed
+ * before the budget ran out inside the fourth call. The batch is one plan;
+ * running the three would leave the model a result set with a silent hole.
+ */
+function truncatedBatchResponse(): models.OpenResponsesResult {
+  return truncatedToolCallResponse([
+    ...[
+      'Paris',
+      'London',
+      'Tokyo',
+    ].map((city, index) => ({
+      type: 'function_call' as const,
+      id: `fc_weather_${index}`,
+      callId: `call_weather_${index}`,
+      name: 'get_weather',
+      arguments: JSON.stringify({
+        city,
+      }),
+      status: 'completed' as const,
+    })),
+    {
+      type: 'function_call',
+      id: 'fc_shell',
+      callId: 'call_shell',
+      name: 'run_shell',
+      arguments: '{"commands":',
+      status: 'incomplete',
+    },
+  ]);
+}
+
+const client = {} as OpenRouterCore;
+
+describe('max_output_tokens truncation', () => {
+  beforeEach(() => {
+    mockBetaResponsesSend.mockReset();
+  });
+
+  it('extracts no tool calls from a response truncated at max_output_tokens', () => {
+    const response = truncatedToolCallResponse();
+
+    expect(responseHasToolCalls(response)).toBe(false);
+    expect(extractToolCallsFromResponse(response)).toEqual([]);
+  });
+
+  it('finalizes on the truncated turn without executing the partial call or requesting again', async () => {
+    const executed: unknown[] = [];
+    mockBetaResponsesSend.mockResolvedValue({
+      ok: true,
+      value: truncatedToolCallResponse(),
+    });
+
+    const result = callModel(client, {
+      model: 'test-model',
+      input: 'Run echo hello.',
+      // Bounds the run so a regression (re-requesting on the exhausted budget)
+      // fails on the request count rather than looping until the worker dies.
+      stopWhen: stepCountIs(3),
+      tools: [
+        {
+          type: ToolType.Function,
+          function: {
+            name: 'run_shell',
+            description: 'Run shell commands.',
+            inputSchema: z.object({
+              commands: z.array(z.string()),
+            }),
+            execute: async (params: { commands: string[] }) => {
+              executed.push(params);
+              return {
+                ok: true,
+              };
+            },
+          },
+        },
+      ] as const,
+    });
+
+    const response = await result.getResponse();
+
+    expect(executed).toEqual([]);
+    expect(mockBetaResponsesSend).toHaveBeenCalledTimes(1);
+    expect(response.id).toBe('resp_truncated');
+    expect(response.status).toBe('incomplete');
+  });
+
+  it('does not execute the calls that completed before the cut-off either', async () => {
+    const executed: unknown[] = [];
+    mockBetaResponsesSend.mockResolvedValue({
+      ok: true,
+      value: truncatedBatchResponse(),
+    });
+
+    const result = callModel(client, {
+      model: 'test-model',
+      input: 'Weather in three cities, then run echo hello.',
+      stopWhen: stepCountIs(3),
+      tools: [
+        {
+          type: ToolType.Function,
+          function: {
+            name: 'get_weather',
+            description: 'Get the weather.',
+            inputSchema: z.object({
+              city: z.string(),
+            }),
+            execute: async (params: { city: string }) => {
+              executed.push(params);
+              return {
+                temperature: 22,
+              };
+            },
+          },
+        },
+        {
+          type: ToolType.Function,
+          function: {
+            name: 'run_shell',
+            description: 'Run shell commands.',
+            inputSchema: z.object({
+              commands: z.array(z.string()),
+            }),
+            execute: async (params: { commands: string[] }) => {
+              executed.push(params);
+              return {
+                ok: true,
+              };
+            },
+          },
+        },
+      ] as const,
+    });
+
+    const response = await result.getResponse();
+
+    expect(executed).toEqual([]);
+    expect(mockBetaResponsesSend).toHaveBeenCalledTimes(1);
+    expect(response.status).toBe('incomplete');
+    // The caller gets the whole turn, cut-off item included, to resume from.
+    expect(response.output.map((item) => ('callId' in item ? item.callId : item.type))).toEqual([
+      'call_weather_0',
+      'call_weather_1',
+      'call_weather_2',
+      'call_shell',
+    ]);
+  });
+});