diff --git a/docs/concepts/model-failover.md b/docs/concepts/model-failover.md
index 3a3641979982..c54476ce925d 100644
--- a/docs/concepts/model-failover.md
+++ b/docs/concepts/model-failover.md
@@ -314,6 +314,7 @@ OpenClaw builds the candidate list from the currently requested `provider/model`
     - explicit aborts that are not timeout/failover-shaped
     - context overflow errors that should stay inside compaction/retry logic (for example `request_too_large`, `INVALID_ARGUMENT: input exceeds the maximum number of tokens`, `input token count exceeds the maximum number of input tokens`, `The input is too long for the model`, or `ollama error: context length exceeded`)
     - a final unknown error when there are no candidates left
+    - Claude Fable 5 safety refusals; direct API-key requests handle those at the provider level via Anthropic's server-side fallback to `claude-opus-4-8` instead (see [Anthropic](/providers/anthropic#safety-refusal-fallback-claude-fable-5))
 
   </Tab>
 </Tabs>
diff --git a/docs/docs_map.md b/docs/docs_map.md
index 3fb15f796f4b..72d641f6affc 100644
--- a/docs/docs_map.md
+++ b/docs/docs_map.md
@@ -7203,6 +7203,11 @@ Do not edit it by hand; run `pnpm docs:map:gen`.
 - Headings:
   - H2: Getting started
   - H2: Thinking defaults (Claude Fable 5, 4.8, and 4.6)
+  - H2: Safety refusal fallback (Claude Fable 5)
+  - H3: Why this exists
+  - H3: How it works
+  - H3: Observability and billing
+  - H3: Scope
   - H2: Prompt caching
   - H2: Advanced configuration
   - H2: Troubleshooting
diff --git a/docs/providers/anthropic.md b/docs/providers/anthropic.md
index 0a44acdac919..b515a364acf3 100644
--- a/docs/providers/anthropic.md
+++ b/docs/providers/anthropic.md
@@ -206,6 +206,77 @@ Related Anthropic docs:
 
 </Note>
 
+## Safety refusal fallback (Claude Fable 5)
+
+<Warning>
+Using Claude Fable 5 means also using Claude Opus 4.8. Fable 5 ships with
+safety classifiers that can decline a request, and Anthropic's sanctioned
+recovery is to have `claude-opus-4-8` serve that turn. OpenClaw opts into this
+automatically for direct API-key requests, so some Fable turns are answered
+and billed as Claude Opus 4.8. If your policy or budget cannot accept
+Opus-served turns, do not select `anthropic/claude-fable-5`.
+</Warning>
+
+### Why this exists
+
+Fable 5 classifiers return `stop_reason: "refusal"` on requests in restricted
+domains, and they also false-positive on benign-adjacent work (security
+tooling, life sciences, or even asking the model to reproduce its raw
+reasoning). Without a fallback, the turn dies with an error even though
+another Claude model would happily serve it — Anthropic's own refusal message
+tells API integrators to configure a fallback model.
+
+### How it works
+
+1. For every direct API-key request to `anthropic/claude-fable-5`, OpenClaw
+   sends Anthropic's server-side fallback opt-in: the
+   `server-side-fallback-2026-06-01` beta header plus
+   `fallbacks: [{"model": "claude-opus-4-8"}]`. Claude Opus 4.8 is the only
+   fallback target Anthropic permits for Fable 5.
+2. Only a safety-classifier decline triggers the fallback. Rate limits,
+   overloads, and server errors behave exactly as before and go through
+   OpenClaw's normal [model failover](/concepts/model-failover).
+3. The rescue happens inside the same call. A decline before any output is
+   invisible apart from latency; the whole answer comes from Opus 4.8. On a
+   mid-stream decline the partial text is kept as the prefix the fallback
+   model continues from, while the declined model's reasoning and tool calls
+   are discarded per Anthropic's replay rules (they must not be echoed back or
+   executed).
+4. If Claude Opus 4.8 declines as well, the turn surfaces the refusal as an
+   error, exactly like before this feature.
+
+The fallback happens at the Anthropic API level, so `claude-opus-4-8` does not
+need to be in your configured model list or fallback chain — a Fable-capable
+API key can always serve Opus.
+
+### Observability and billing
+
+- A fallback-served turn records a `provider_fallback` diagnostic on the
+  assistant message naming `fromModel` and `toModel`, and the message's
+  `responseModel` reports `claude-opus-4-8`.
+- Anthropic bills per attempt: a decline before output is free, and the rescue
+  bills at Claude Opus 4.8 rates (currently half of Fable 5 rates). OpenClaw's
+  per-turn cost estimate prices fallback-served turns at Opus rates to match.
+- A mid-stream decline additionally bills the already-streamed Fable partial
+  on Anthropic's side; that portion is reported in the API's per-attempt
+  usage but not folded into OpenClaw's per-turn estimate.
+
+### Scope
+
+Applies to `anthropic/claude-fable-5` with API-key auth against
+`api.anthropic.com`. OAuth (Claude CLI subscription reuse), proxy base URLs,
+Bedrock, Vertex, and Foundry requests are unchanged and still surface
+refusals as errors there.
+
+Verified live: a benign prompt asking Fable 5 to reproduce its raw chain of
+thought is declined with `category: "reasoning_extraction"` when sent without
+fallbacks, and the same prompt through OpenClaw returns a normal Opus-served
+answer with the `provider_fallback` diagnostic attached.
+
+See Anthropic's [refusals and fallback
+guide](https://platform.claude.com/docs/en/build-with-claude/refusals-and-fallback)
+for the underlying behavior.
+
 ## Prompt caching
 
 OpenClaw supports Anthropic's prompt caching feature for API-key auth.
diff --git a/src/agents/anthropic-transport-stream.test.ts b/src/agents/anthropic-transport-stream.test.ts
index 6f4b6e8125d1..1184abbe61b7 100644
--- a/src/agents/anthropic-transport-stream.test.ts
+++ b/src/agents/anthropic-transport-stream.test.ts
@@ -300,6 +300,193 @@ describe("anthropic transport stream", () => {
     );
   });
 
+  it("sends server-side fallback params for direct Fable API-key requests", async () => {
+    guardedFetchMock.mockResolvedValueOnce(
+      createSseResponse([
+        {
+          type: "message_start",
+          message: { id: "msg_fb", usage: { input_tokens: 1, output_tokens: 0 } },
+        },
+        {
+          type: "message_delta",
+          delta: { stop_reason: "end_turn" },
+          usage: { input_tokens: 1, output_tokens: 1 },
+        },
+        { type: "message_stop" },
+      ]),
+    );
+
+    await runTransportStream(
+      makeAnthropicTransportModel({ id: "claude-fable-5", name: "Claude Fable 5" }),
+      {
+        messages: [{ role: "user", content: "hello" }],
+      } as AnthropicStreamContext,
+      {
+        apiKey: "sk-ant-api",
+      } as AnthropicStreamOptions,
+    );
+
+    expect(latestAnthropicRequest().payload.fallbacks).toEqual([{ model: "claude-opus-4-8" }]);
+    expect(latestAnthropicRequestHeaders().get("anthropic-beta")).toBe(
+      "fine-grained-tool-streaming-2025-05-14,server-side-fallback-2026-06-01",
+    );
+  });
+
+  it.each([
+    {
+      label: "OAuth tokens",
+      model: { id: "claude-fable-5", name: "Claude Fable 5" },
+      apiKey: "sk-ant-oat01-token",
+    },
+    {
+      label: "custom proxy endpoints",
+      model: {
+        id: "claude-fable-5",
+        name: "Claude Fable 5",
+        baseUrl: "https://proxy.example.com/v1",
+      },
+      apiKey: "sk-ant-api",
+    },
+    {
+      label: "non-Fable models",
+      model: { id: "claude-opus-4-8", name: "Claude Opus 4.8" },
+      apiKey: "sk-ant-api",
+    },
+  ])("omits server-side fallback params for $label", async ({ model, apiKey }) => {
+    guardedFetchMock.mockResolvedValueOnce(
+      createSseResponse([
+        {
+          type: "message_start",
+          message: { id: "msg_no_fb", usage: { input_tokens: 1, output_tokens: 0 } },
+        },
+        {
+          type: "message_delta",
+          delta: { stop_reason: "end_turn" },
+          usage: { input_tokens: 1, output_tokens: 1 },
+        },
+        { type: "message_stop" },
+      ]),
+    );
+
+    await runTransportStream(
+      makeAnthropicTransportModel(model),
+      {
+        messages: [{ role: "user", content: "hello" }],
+      } as AnthropicStreamContext,
+      {
+        apiKey,
+      } as AnthropicStreamOptions,
+    );
+
+    expect(latestAnthropicRequest().payload.fallbacks).toBeUndefined();
+    expect(latestAnthropicRequestHeaders().get("anthropic-beta") ?? "").not.toContain(
+      "server-side-fallback",
+    );
+  });
+
+  it("rebuilds Fable output at a mid-stream server-side fallback boundary", async () => {
+    guardedFetchMock.mockResolvedValueOnce(
+      createSseResponse([
+        {
+          type: "message_start",
+          message: {
+            id: "msg_fb",
+            model: "claude-fable-5",
+            usage: { input_tokens: 5, output_tokens: 0 },
+          },
+        },
+        {
+          type: "content_block_start",
+          index: 0,
+          content_block: { type: "thinking", thinking: "" },
+        },
+        {
+          type: "content_block_delta",
+          index: 0,
+          delta: { type: "thinking_delta", thinking: "pre-boundary reasoning" },
+        },
+        { type: "content_block_stop", index: 0 },
+        {
+          type: "content_block_start",
+          index: 1,
+          content_block: { type: "text", text: "partial " },
+        },
+        { type: "content_block_stop", index: 1 },
+        {
+          // Starting a tool call tags the preceding text as commentary before
+          // the classifier declines mid-turn.
+          type: "content_block_start",
+          index: 2,
+          content_block: { type: "tool_use", id: "call_1", name: "lookup", input: {} },
+        },
+        { type: "content_block_stop", index: 2 },
+        {
+          type: "content_block_start",
+          index: 3,
+          content_block: {
+            type: "fallback",
+            from: { model: "claude-fable-5" },
+            to: { model: "claude-opus-4-8" },
+          },
+        },
+        { type: "content_block_stop", index: 3 },
+        {
+          type: "content_block_start",
+          index: 4,
+          content_block: { type: "text", text: "" },
+        },
+        {
+          type: "content_block_delta",
+          index: 4,
+          delta: { type: "text_delta", text: "continued" },
+        },
+        { type: "content_block_stop", index: 4 },
+        {
+          type: "message_delta",
+          delta: { stop_reason: "end_turn" },
+          usage: { input_tokens: 5, output_tokens: 9 },
+        },
+        { type: "message_stop" },
+      ]),
+    );
+
+    const model = makeAnthropicTransportModel({ id: "claude-fable-5", name: "Claude Fable 5" });
+    model.cost = { input: 10, output: 50, cacheRead: 1, cacheWrite: 12.5 };
+    const result = await runTransportStream(
+      model,
+      {
+        messages: [{ role: "user", content: "hello" }],
+      } as AnthropicStreamContext,
+      {
+        apiKey: "sk-ant-api",
+      } as AnthropicStreamOptions,
+    );
+
+    // Pre-boundary thinking/tool blocks must not replay or execute; text is
+    // the continuation prefix, and the commentary tag added for the dropped
+    // tool call must not survive (it would hide the prefix from the visible
+    // final answer).
+    expect(result.stopReason).toBe("stop");
+    expect(result.content).toEqual([
+      { type: "text", text: "partial " },
+      { type: "text", text: "continued" },
+    ]);
+    expect(result.responseModel).toBe("claude-opus-4-8");
+    expect(result.diagnostics).toEqual([
+      expect.objectContaining({
+        type: "provider_fallback",
+        details: {
+          provider: "anthropic",
+          fromModel: "claude-fable-5",
+          toModel: "claude-opus-4-8",
+        },
+      }),
+    ]);
+    // Fallback-served turns bill at the serving model's rates, not Fable's:
+    // 5 input tokens at $5/MTok plus 9 output tokens at $25/MTok.
+    expect(result.usage.cost.total).toBeCloseTo(0.00025, 10);
+  });
+
   it("uses bearer auth for Microsoft Foundry Anthropic transport requests", async () => {
     const model = makeAnthropicTransportModel({
       provider: "microsoft-foundry",
diff --git a/src/agents/anthropic-transport-stream.ts b/src/agents/anthropic-transport-stream.ts
index c96d8935e035..ffa8b5d9ddc2 100644
--- a/src/agents/anthropic-transport-stream.ts
+++ b/src/agents/anthropic-transport-stream.ts
@@ -40,6 +40,13 @@ import {
   usesClaudeFable5MessagesContract,
 } from "../shared/anthropic-model-contract.js";
 import { applyAnthropicRefusal } from "../shared/anthropic-refusal.js";
+import {
+  ANTHROPIC_SERVER_SIDE_FALLBACK_BETA,
+  CLAUDE_FABLE_5_FALLBACK_MODEL_COST,
+  applyAnthropicFallbackBoundary,
+  buildAnthropicServerSideFallbacks,
+  readAnthropicFallbackBoundary,
+} from "../shared/anthropic-server-fallback.js";
 import { MALFORMED_STREAMING_FRAGMENT_ERROR_MESSAGE } from "../shared/assistant-error-format.js";
 import { createDeferredEventBuffer } from "../shared/deferred-event-buffer.js";
 import { notifyLlmRequestActivity } from "../shared/llm-request-activity.js";
@@ -279,6 +286,15 @@ function isKimiAnthropicProvider(provider: string | undefined): boolean {
   return /^kimi(?:-|$)/.test(normalizeLowercaseStringOrEmpty(provider ?? ""));
 }
 
+/**
+ * Server-side refusal fallback is a first-party Claude API beta: proxies and
+ * Bedrock/Vertex/Foundry reject the `fallbacks` param, and OAuth (Claude Code
+ * identity) requests are excluded until the beta is verified there.
+ */
+function useAnthropicServerSideFallback(model: AnthropicTransportModel): boolean {
+  return usesClaudeFable5MessagesContract(model) && isDirectAnthropicModel(model);
+}
+
 function supportsReasoningContentReplay(
   model: Pick<AnthropicTransportModel, "provider" | "baseUrl">,
 ): boolean {
@@ -902,6 +918,9 @@ function createAnthropicTransportClient(params: {
       isOAuthToken: true,
     };
   }
+  if (useAnthropicServerSideFallback(model)) {
+    betaFeatures.push(ANTHROPIC_SERVER_SIDE_FALLBACK_BETA);
+  }
   const betaHeader = buildAnthropicBetaHeader(model, betaFeatures, { oauth: false });
   return {
     client: createAnthropicMessagesClient({
@@ -960,6 +979,12 @@ function buildAnthropicParams(
     max_tokens: maxTokens,
     stream: true,
   };
+  // Fable safety classifiers can decline benign-adjacent work; server-side
+  // fallback re-serves the same call on claude-opus-4-8 instead of failing
+  // the turn. Requires the matching beta header from the transport client.
+  if (!isOAuthToken && useAnthropicServerSideFallback(model)) {
+    params.fallbacks = buildAnthropicServerSideFallbacks();
+  }
   if (isOAuthToken) {
     params.system = [
       {
@@ -1125,6 +1150,9 @@ export function createAnthropicMessagesTransportStreamFn(): StreamFn {
           )
         : undefined;
       const eventSink = refusalBuffer ?? stream;
+      // Fallback-served turns bill at the serving model's rates; a boundary
+      // swaps this to the fallback model's cost table.
+      let costModel = model;
       try {
         const apiKey = options?.apiKey ?? getEnvApiKey(model.provider) ?? "";
         if (!apiKey) {
@@ -1295,7 +1323,7 @@ export function createAnthropicMessagesTransportStreamFn(): StreamFn {
               output.usage.output +
               output.usage.cacheRead +
               output.usage.cacheWrite;
-            calculateCost(model, output.usage);
+            calculateCost(costModel, output.usage);
             // Defer start until after message_start so that pre-stream SSE errors
             // (e.g. invalid thinking signatures) arrive before any non-error event
             // is yielded, keeping yieldedOutput=false in pumpStreamWithRecovery
@@ -1310,6 +1338,56 @@ export function createAnthropicMessagesTransportStreamFn(): StreamFn {
           if (event.type === "content_block_start") {
             const contentBlock = event.content_block as Record<string, unknown> | undefined;
             const index = typeof event.index === "number" ? event.index : -1;
+            const fallbackBoundary = refusalBuffer
+              ? readAnthropicFallbackBoundary(contentBlock)
+              : null;
+            if (fallbackBoundary) {
+              // Server-side fallback boundary: pre-boundary thinking/tool
+              // blocks must not replay or execute, and the buffered preview
+              // events reference them, so rebuild the deferred timeline from
+              // the surviving text prefix the fallback model continued from.
+              refusalBuffer?.discard();
+              pendingTextEnds.length = 0;
+              blockIndexes.clear();
+              applyAnthropicFallbackBoundary({
+                output,
+                boundary: fallbackBoundary,
+                provider: model.provider,
+              });
+              // Cost intentionally mirrors top-level usage (serving attempt at
+              // serving-model rates). A mid-stream decline's billed partial is
+              // only in usage.iterations and is not folded in here.
+              costModel = { ...model, cost: CLAUDE_FABLE_5_FALLBACK_MODEL_COST };
+              calculateCost(costModel, output.usage);
+              eventSink.push({ type: "start", partial: output as never });
+              for (let i = 0; i < output.content.length; i += 1) {
+                const block = output.content[i];
+                if (block.type !== "text") {
+                  continue;
+                }
+                delete block.index;
+                eventSink.push({
+                  type: "text_start",
+                  contentIndex: i,
+                  partial: output as never,
+                });
+                if (block.text) {
+                  eventSink.push({
+                    type: "text_delta",
+                    contentIndex: i,
+                    delta: block.text,
+                    partial: output as never,
+                  });
+                }
+                pendingTextEnds.push({
+                  type: "text_end",
+                  contentIndex: i,
+                  content: block.text,
+                  partial: output as never,
+                });
+              }
+              continue;
+            }
             if (contentBlock?.type === "text") {
               const text =
                 typeof contentBlock.text === "string"
@@ -1595,7 +1673,7 @@ export function createAnthropicMessagesTransportStreamFn(): StreamFn {
               output.usage.output +
               output.usage.cacheRead +
               output.usage.cacheWrite;
-            calculateCost(model, output.usage);
+            calculateCost(costModel, output.usage);
             // Gate on the turn CONTAINING a tool call, not the provider's stop_reason
             // label: Bedrock/Vertex-proxied routes (e.g. pioneer) report "end_turn" on
             // tool-using turns. No-op for direct Anthropic (already "toolUse" here).
diff --git a/src/llm/providers/anthropic.test.ts b/src/llm/providers/anthropic.test.ts
index d4a77d0995de..c29a0f879ac1 100644
--- a/src/llm/providers/anthropic.test.ts
+++ b/src/llm/providers/anthropic.test.ts
@@ -540,6 +540,247 @@ describe("Anthropic provider", () => {
     ]);
   });
 
+  it("sends server-side fallback params for direct Fable API-key requests", async () => {
+    let capturedPayload: unknown;
+    const stream = streamAnthropic(
+      makeAnthropicModel({ id: "claude-fable-5", name: "Claude Fable 5" }),
+      { messages: [{ role: "user", content: "hello", timestamp: 0 }] },
+      {
+        apiKey: "sk-ant-provider",
+        onPayload: (payload) => {
+          capturedPayload = payload;
+          throw new Error("stop before network");
+        },
+      },
+    );
+    await stream.result();
+
+    expect((capturedPayload as { fallbacks?: unknown }).fallbacks).toEqual([
+      { model: "claude-opus-4-8" },
+    ]);
+    await vi.waitFor(() => expect(anthropicMockState.configs).toHaveLength(1));
+    const config = anthropicMockState.configs[0] as {
+      defaultHeaders?: Record<string, string>;
+    };
+    expect(config.defaultHeaders?.["anthropic-beta"]).toContain("server-side-fallback-2026-06-01");
+  });
+
+  it.each([
+    { label: "OAuth tokens", overrides: {}, apiKey: "sk-ant-oat01-token" },
+    {
+      label: "custom proxy endpoints",
+      overrides: { baseUrl: "https://proxy.example.com/v1" },
+      apiKey: "sk-ant-provider",
+    },
+    {
+      label: "Anthropic Vertex models",
+      overrides: { provider: "anthropic-vertex" },
+      apiKey: "vertex-token",
+    },
+    {
+      label: "non-Fable models",
+      overrides: { id: "claude-opus-4-8", name: "Claude Opus 4.8" },
+      apiKey: "sk-ant-provider",
+    },
+  ])("omits server-side fallback params for $label", async ({ overrides, apiKey }) => {
+    let capturedPayload: unknown;
+    const stream = streamAnthropic(
+      makeAnthropicModel({ id: "claude-fable-5", name: "Claude Fable 5", ...overrides }),
+      { messages: [{ role: "user", content: "hello", timestamp: 0 }] },
+      {
+        apiKey,
+        onPayload: (payload) => {
+          capturedPayload = payload;
+          throw new Error("stop before network");
+        },
+      },
+    );
+    await stream.result();
+
+    expect((capturedPayload as { fallbacks?: unknown }).fallbacks).toBeUndefined();
+  });
+
+  it("rebuilds Fable output at a mid-stream server-side fallback boundary", async () => {
+    const client = {
+      messages: {
+        create: vi.fn(() => ({
+          asResponse: () =>
+            Promise.resolve(
+              createSseResponse([
+                {
+                  type: "message_start",
+                  message: {
+                    id: "msg_fallback",
+                    model: "claude-fable-5",
+                    usage: { input_tokens: 5, output_tokens: 0 },
+                  },
+                },
+                {
+                  type: "content_block_start",
+                  index: 0,
+                  content_block: { type: "thinking", thinking: "" },
+                },
+                {
+                  type: "content_block_delta",
+                  index: 0,
+                  delta: { type: "thinking_delta", thinking: "pre-boundary reasoning" },
+                },
+                { type: "content_block_stop", index: 0 },
+                {
+                  type: "content_block_start",
+                  index: 1,
+                  content_block: { type: "text", text: "" },
+                },
+                {
+                  type: "content_block_delta",
+                  index: 1,
+                  delta: { type: "text_delta", text: "partial " },
+                },
+                { type: "content_block_stop", index: 1 },
+                {
+                  type: "content_block_start",
+                  index: 2,
+                  content_block: { type: "tool_use", id: "call_1", name: "lookup", input: {} },
+                },
+                { type: "content_block_stop", index: 2 },
+                {
+                  type: "content_block_start",
+                  index: 3,
+                  content_block: {
+                    type: "fallback",
+                    from: { model: "claude-fable-5" },
+                    to: { model: "claude-opus-4-8" },
+                  },
+                },
+                { type: "content_block_stop", index: 3 },
+                {
+                  type: "content_block_start",
+                  index: 4,
+                  content_block: { type: "text", text: "" },
+                },
+                {
+                  type: "content_block_delta",
+                  index: 4,
+                  delta: { type: "text_delta", text: "continued" },
+                },
+                { type: "content_block_stop", index: 4 },
+                {
+                  type: "message_delta",
+                  delta: { stop_reason: "end_turn" },
+                  usage: { input_tokens: 5, output_tokens: 9 },
+                },
+                { type: "message_stop" },
+              ]),
+            ),
+        })),
+      },
+    };
+
+    const stream = streamAnthropic(
+      makeAnthropicModel({
+        id: "claude-fable-5",
+        name: "Claude Fable 5",
+        cost: { input: 10, output: 50, cacheRead: 1, cacheWrite: 12.5 },
+      }),
+      { messages: [{ role: "user", content: "hello", timestamp: 0 }] },
+      { apiKey: "sk-ant-provider", client: client as never },
+    );
+    const eventTypes: string[] = [];
+    for await (const event of stream) {
+      eventTypes.push(event.type);
+    }
+    const result = await stream.result();
+
+    // Pre-boundary thinking/tool blocks must not replay or execute; text is
+    // the continuation prefix the fallback model built on.
+    expect(result.stopReason).toBe("stop");
+    expect(result.content).toEqual([
+      { type: "text", text: "partial " },
+      { type: "text", text: "continued" },
+    ]);
+    expect(result.responseModel).toBe("claude-opus-4-8");
+    expect(result.diagnostics).toEqual([
+      expect.objectContaining({
+        type: "provider_fallback",
+        details: {
+          provider: "anthropic",
+          fromModel: "claude-fable-5",
+          toModel: "claude-opus-4-8",
+        },
+      }),
+    ]);
+    expect(eventTypes).not.toContain("thinking_start");
+    expect(eventTypes).not.toContain("toolcall_start");
+    expect(eventTypes.filter((type) => type === "start")).toHaveLength(1);
+    // Fallback-served turns bill at the serving model's rates, not Fable's:
+    // 5 input tokens at $5/MTok plus 9 output tokens at $25/MTok.
+    expect(result.usage.cost.input).toBeCloseTo(0.000025, 10);
+    expect(result.usage.cost.output).toBeCloseTo(0.000225, 10);
+    expect(result.usage.cost.total).toBeCloseTo(0.00025, 10);
+  });
+
+  it("records a pre-output server-side fallback and keeps the continuation", async () => {
+    const client = {
+      messages: {
+        create: vi.fn(() => ({
+          asResponse: () =>
+            Promise.resolve(
+              createSseResponse([
+                {
+                  type: "message_start",
+                  message: {
+                    id: "msg_fallback",
+                    // Pre-output declines: message_start names the fallback model.
+                    model: "claude-opus-4-8",
+                    usage: { input_tokens: 5, output_tokens: 0 },
+                  },
+                },
+                {
+                  type: "content_block_start",
+                  index: 0,
+                  content_block: {
+                    type: "fallback",
+                    from: { model: "claude-fable-5" },
+                    to: { model: "claude-opus-4-8" },
+                  },
+                },
+                { type: "content_block_stop", index: 0 },
+                {
+                  type: "content_block_start",
+                  index: 1,
+                  content_block: { type: "text", text: "" },
+                },
+                {
+                  type: "content_block_delta",
+                  index: 1,
+                  delta: { type: "text_delta", text: "Hi!" },
+                },
+                { type: "content_block_stop", index: 1 },
+                {
+                  type: "message_delta",
+                  delta: { stop_reason: "end_turn" },
+                  usage: { input_tokens: 5, output_tokens: 2 },
+                },
+                { type: "message_stop" },
+              ]),
+            ),
+        })),
+      },
+    };
+
+    const stream = streamAnthropic(
+      makeAnthropicModel({ id: "claude-fable-5", name: "Claude Fable 5" }),
+      { messages: [{ role: "user", content: "hello", timestamp: 0 }] },
+      { apiKey: "sk-ant-provider", client: client as never },
+    );
+    const result = await stream.result();
+
+    expect(result.stopReason).toBe("stop");
+    expect(result.content).toEqual([{ type: "text", text: "Hi!" }]);
+    expect(result.responseModel).toBe("claude-opus-4-8");
+    expect(result.diagnostics).toEqual([expect.objectContaining({ type: "provider_fallback" })]);
+  });
+
   it("routes interleaved active content blocks by their event indexes", async () => {
     const client = {
       messages: {
diff --git a/src/llm/providers/anthropic.ts b/src/llm/providers/anthropic.ts
index 9c58e0e19212..094c13417422 100644
--- a/src/llm/providers/anthropic.ts
+++ b/src/llm/providers/anthropic.ts
@@ -15,6 +15,7 @@ import {
   type AnthropicProjectedToolChoice,
   type AnthropicToolProjection,
 } from "../../agents/anthropic-tool-projection.js";
+import { resolveProviderEndpoint } from "../../agents/provider-attribution.js";
 import { buildGuardedModelFetch } from "../../agents/provider-transport-fetch.js";
 import {
   splitSystemPromptCacheBoundary,
@@ -33,6 +34,13 @@ import {
   usesClaudeFable5MessagesContract,
 } from "../../shared/anthropic-model-contract.js";
 import { applyAnthropicRefusal } from "../../shared/anthropic-refusal.js";
+import {
+  ANTHROPIC_SERVER_SIDE_FALLBACK_BETA,
+  CLAUDE_FABLE_5_FALLBACK_MODEL_COST,
+  applyAnthropicFallbackBoundary,
+  buildAnthropicServerSideFallbacks,
+  readAnthropicFallbackBoundary,
+} from "../../shared/anthropic-server-fallback.js";
 import { createDeferredEventBuffer } from "../../shared/deferred-event-buffer.js";
 import { notifyLlmRequestActivity } from "../../shared/llm-request-activity.js";
 import { getEnvApiKey } from "../env-api-keys.js";
@@ -506,10 +514,17 @@ export const streamAnthropic: StreamFunction<"anthropic-messages", AnthropicOpti
         )
       : undefined;
     const eventSink = refusalBuffer ?? stream;
+    // Fallback-served turns bill at the serving model's rates; a boundary
+    // swaps this to the fallback model's cost table.
+    let costModel = model;
 
     try {
       let client: Anthropic;
       let isOAuth: boolean;
+      // The beta-gated fallbacks param may only ship on clients we built,
+      // where the matching beta header is guaranteed; injected clients carry
+      // caller-owned headers.
+      let serverSideFallback = false;
 
       if (options?.client) {
         client = options.client;
@@ -540,8 +555,9 @@ export const streamAnthropic: StreamFunction<"anthropic-messages", AnthropicOpti
         );
         client = created.client;
         isOAuth = created.isOAuthToken;
+        serverSideFallback = created.serverSideFallback;
       }
-      const builtParams = buildParams(model, context, isOAuth, options);
+      const builtParams = buildParams(model, context, isOAuth, options, serverSideFallback);
       let params = builtParams.params;
       const toolProjection = builtParams.toolProjection;
       const nextParams = await options?.onPayload?.(params, model);
@@ -584,14 +600,57 @@ export const streamAnthropic: StreamFunction<"anthropic-messages", AnthropicOpti
             output.usage.output +
             output.usage.cacheRead +
             output.usage.cacheWrite;
-          calculateCost(model, output.usage);
+          calculateCost(costModel, output.usage);
           // Defer start until after message_start so that pre-stream SSE errors
           // (e.g. invalid thinking signatures) arrive before any non-error event
           // is yielded, keeping yieldedOutput=false in pumpStreamWithRecovery
           // and allowing the thinking-block recovery retry to fire.
           eventSink.push({ type: "start", partial: output });
         } else if (event.type === "content_block_start") {
-          if (event.content_block.type === "text") {
+          const fallbackBoundary = refusalBuffer
+            ? readAnthropicFallbackBoundary(event.content_block)
+            : null;
+          if (fallbackBoundary) {
+            // Server-side fallback boundary: pre-boundary thinking/tool blocks
+            // must not replay or execute, and the buffered preview events
+            // reference them, so rebuild the deferred timeline from the
+            // surviving text prefix the fallback model continued from.
+            refusalBuffer?.discard();
+            blockIndexes.clear();
+            applyAnthropicFallbackBoundary({
+              output,
+              boundary: fallbackBoundary,
+              provider: model.provider,
+            });
+            // Cost intentionally mirrors top-level usage (serving attempt at
+            // serving-model rates). A mid-stream decline's billed partial is
+            // only in usage.iterations and is not folded in here.
+            costModel = { ...model, cost: CLAUDE_FABLE_5_FALLBACK_MODEL_COST };
+            calculateCost(costModel, output.usage);
+            eventSink.push({ type: "start", partial: output });
+            for (let i = 0; i < blocks.length; i += 1) {
+              const block = blocks[i];
+              if (block.type !== "text") {
+                continue;
+              }
+              delete (block as Partial<Block>).index;
+              eventSink.push({ type: "text_start", contentIndex: i, partial: output });
+              if (block.text) {
+                eventSink.push({
+                  type: "text_delta",
+                  contentIndex: i,
+                  delta: block.text,
+                  partial: output,
+                });
+              }
+              eventSink.push({
+                type: "text_end",
+                contentIndex: i,
+                content: block.text,
+                partial: output,
+              });
+            }
+          } else if (event.content_block.type === "text") {
             const block: Block = {
               type: "text",
               text: "",
@@ -759,7 +818,7 @@ export const streamAnthropic: StreamFunction<"anthropic-messages", AnthropicOpti
             output.usage.output +
             output.usage.cacheRead +
             output.usage.cacheWrite;
-          calculateCost(model, output.usage);
+          calculateCost(costModel, output.usage);
         }
       }
 
@@ -912,6 +971,19 @@ function isOAuthToken(apiKey: string): boolean {
   return apiKey.includes("sk-ant-oat");
 }
 
+/**
+ * Server-side refusal fallback is a first-party Claude API beta: proxies and
+ * Bedrock/Vertex/Foundry reject the `fallbacks` param, and OAuth (Claude Code
+ * identity) requests are excluded until the beta is verified there.
+ */
+function supportsAnthropicServerSideFallback(model: Model<"anthropic-messages">): boolean {
+  if (!usesClaudeFable5MessagesContract(model) || model.provider !== "anthropic") {
+    return false;
+  }
+  const endpointClass = resolveProviderEndpoint(model.baseUrl).endpointClass;
+  return endpointClass === "default" || endpointClass === "anthropic-public";
+}
+
 function createClient(
   model: Model<"anthropic-messages">,
   apiKey: string,
@@ -920,7 +992,7 @@ function createClient(
   optionsHeaders?: Record<string, string>,
   dynamicHeaders?: Record<string, string>,
   sessionId?: string,
-): { client: Anthropic; isOAuthToken: boolean } {
+): { client: Anthropic; isOAuthToken: boolean; serverSideFallback: boolean } {
   // Adaptive thinking models (Opus 4.6, Sonnet 4.6) have interleaved thinking built-in.
   // The beta header is deprecated on Opus 4.6 and redundant on Sonnet 4.6, so skip it.
   const needsInterleavedBeta = interleavedThinking && !supportsAdaptiveThinking(model);
@@ -951,7 +1023,7 @@ function createClient(
       fetch: buildGuardedModelFetch(model),
     });
 
-    return { client, isOAuthToken: false };
+    return { client, isOAuthToken: false, serverSideFallback: false };
   }
 
   // Copilot: Bearer auth, selective betas.
@@ -973,7 +1045,7 @@ function createClient(
       ),
     });
 
-    return { client, isOAuthToken: false };
+    return { client, isOAuthToken: false, serverSideFallback: false };
   }
 
   if (usesFoundryBearerAuth(model)) {
@@ -994,7 +1066,7 @@ function createClient(
       ),
     });
 
-    return { client, isOAuthToken: false };
+    return { client, isOAuthToken: false, serverSideFallback: false };
   }
 
   // OAuth: Bearer auth, Claude Code identity headers
@@ -1017,10 +1089,14 @@ function createClient(
       ),
     });
 
-    return { client, isOAuthToken: true };
+    return { client, isOAuthToken: true, serverSideFallback: false };
   }
 
   // API key auth
+  const serverSideFallback = supportsAnthropicServerSideFallback(model);
+  if (serverSideFallback) {
+    betaFeatures.push(ANTHROPIC_SERVER_SIDE_FALLBACK_BETA);
+  }
   const sessionAffinityHeaders: Record<string, string | null> =
     sessionId && getAnthropicCompat(model).sendSessionAffinityHeaders
       ? { "x-session-affinity": sessionId }
@@ -1042,7 +1118,7 @@ function createClient(
     ),
   });
 
-  return { client, isOAuthToken: false };
+  return { client, isOAuthToken: false, serverSideFallback };
 }
 
 function buildParams(
@@ -1050,6 +1126,7 @@ function buildParams(
   context: Context,
   isOAuthTokenResult: boolean,
   options?: AnthropicOptions,
+  serverSideFallback = false,
 ): {
   params: MessageCreateParamsStreaming;
   toolProjection?: AnthropicToolProjection;
@@ -1094,6 +1171,14 @@ function buildParams(
     params.system = system;
   }
 
+  // Fable safety classifiers can decline benign-adjacent work; server-side
+  // fallback re-serves the same call on claude-opus-4-8 instead of failing
+  // the turn. Only set when createClient added the matching beta header.
+  if (serverSideFallback) {
+    (params as { fallbacks?: Array<{ model: string }> }).fallbacks =
+      buildAnthropicServerSideFallbacks();
+  }
+
   // Thinking and post-4.6 Claude models reject custom temperature values.
   if (
     options?.temperature !== undefined &&
diff --git a/src/shared/anthropic-server-fallback.ts b/src/shared/anthropic-server-fallback.ts
new file mode 100644
index 000000000000..ee3e6029fa40
--- /dev/null
+++ b/src/shared/anthropic-server-fallback.ts
@@ -0,0 +1,97 @@
+import type { AssistantMessageDiagnostic } from "../llm/types.js";
+
+/**
+ * Anthropic server-side refusal fallback (`server-side-fallback-2026-06-01`).
+ * When Claude Fable 5 safety classifiers decline a request, the API re-serves
+ * the same call on a permitted fallback model inside the same stream instead
+ * of returning `stop_reason: "refusal"`.
+ * https://platform.claude.com/docs/en/build-with-claude/refusals-and-fallback
+ */
+export const ANTHROPIC_SERVER_SIDE_FALLBACK_BETA = "server-side-fallback-2026-06-01";
+
+// Anthropic contract: claude-opus-4-8 is the only entry in claude-fable-5's
+// published `allowed_fallback_models`; other targets are rejected up front.
+export const CLAUDE_FABLE_5_FALLBACK_MODEL = "claude-opus-4-8";
+
+// Fallback-served turns bill at the serving model's rates (top-level usage
+// covers only that attempt), so cost math must switch off the Fable table.
+// Claude Opus 4.8 per-MTok pricing, same shape as the bundled Fable table.
+export const CLAUDE_FABLE_5_FALLBACK_MODEL_COST = {
+  input: 5,
+  output: 25,
+  cacheRead: 0.5,
+  cacheWrite: 6.25,
+} as const;
+
+export function buildAnthropicServerSideFallbacks(): Array<{ model: string }> {
+  return [{ model: CLAUDE_FABLE_5_FALLBACK_MODEL }];
+}
+
+export type AnthropicFallbackBoundary = {
+  fromModel: string | null;
+  toModel: string | null;
+};
+
+function readBoundaryModel(value: unknown): string | null {
+  if (!value || typeof value !== "object") {
+    return null;
+  }
+  const model = (value as { model?: unknown }).model;
+  return typeof model === "string" && model.trim() ? model : null;
+}
+
+/** Reads a `fallback` content block marking where one model's output gives way to the next. */
+export function readAnthropicFallbackBoundary(block: unknown): AnthropicFallbackBoundary | null {
+  if (!block || typeof block !== "object") {
+    return null;
+  }
+  const record = block as { type?: unknown; from?: unknown; to?: unknown };
+  if (record.type !== "fallback") {
+    return null;
+  }
+  return {
+    fromModel: readBoundaryModel(record.from),
+    toModel: readBoundaryModel(record.to),
+  };
+}
+
+/**
+ * Applies a mid-stream fallback boundary to the accumulated assistant output.
+ * Anthropic's replay contract: pre-boundary thinking/tool_use blocks must not
+ * be echoed on later turns (and dropped tool calls must never execute); the
+ * pre-boundary text is the continuation prefix the fallback model built on.
+ */
+export function applyAnthropicFallbackBoundary(params: {
+  output: {
+    content: Array<{ type: string }>;
+    responseModel?: string;
+    diagnostics?: AssistantMessageDiagnostic[];
+  };
+  boundary: AnthropicFallbackBoundary;
+  provider: string;
+}): void {
+  const { output, boundary } = params;
+  const survivors = output.content.filter((block) => block.type === "text");
+  for (const survivor of survivors) {
+    // Commentary phase tags refer to dropped pre-boundary tool calls; the
+    // prefix is now the start of the final answer, and phase-aware display
+    // extraction would otherwise hide it from the visible response.
+    delete (survivor as { textSignature?: string }).textSignature;
+  }
+  output.content.splice(0, output.content.length, ...survivors);
+  if (boundary.toModel) {
+    output.responseModel = boundary.toModel;
+  }
+  output.diagnostics = [
+    ...(output.diagnostics ?? []),
+    {
+      type: "provider_fallback",
+      timestamp: Date.now(),
+      details: {
+        provider: params.provider,
+        fromModel: boundary.fromModel,
+        toModel: boundary.toModel,
+      },
+    },
+  ];
+}