diff --git a/CHANGELOG.md b/CHANGELOG.md
index 07b1a7891d5..2b8fe0e278b 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -67,6 +67,7 @@ Docs: https://docs.openclaw.ai
 - Agents/Replies: emit a default completion acknowledgement (`✅ Done.`) when runs execute tools successfully but return no final assistant text, preventing silent no-reply turns after tool-only completions. (#22834) Thanks @Oldshue.
 - Agents/Subagents: honor `tools.subagents.tools.alsoAllow` and explicit subagent `allow` entries when resolving built-in subagent deny defaults, so explicitly granted tools (for example `sessions_send`) are no longer blocked unless re-denied in `tools.subagents.tools.deny`. (#23359) Thanks @goren-beehero.
 - Agents/Diagnostics: include resolved lifecycle error text in `embedded run agent end` warnings so UI/TUI “Connection error” runs expose actionable provider failure reasons in gateway logs. (#23054) Thanks @Raize.
+- Agents/Auth profiles: skip auth-profile cooldown writes for timeout failures in embedded runner rotation so model/network timeouts do not poison same-provider fallback model selection while still allowing in-turn account rotation. (#22622) Thanks @vageeshkumar.
 - Plugins/Hooks: run legacy `before_agent_start` once per agent turn and reuse that result across model-resolve and prompt-build compatibility paths, preventing duplicate hook side effects (for example duplicate external API calls). (#23289) Thanks @ksato8710.
 - Models/Config: default missing Anthropic provider/model `api` fields to `anthropic-messages` during config validation so custom relay model entries are preserved instead of being dropped by runtime model registry validation. (#23332) Thanks @bigbigmonkey123.
 - Gateway/Pairing: treat operator.admin pairing tokens as satisfying operator.write requests so legacy devices stop looping through scope-upgrade prompts introduced in 2026.2.19. (#23125, #23006) Thanks @vignesh07.
diff --git a/src/agents/pi-embedded-runner.run-embedded-pi-agent.auth-profile-rotation.test.ts b/src/agents/pi-embedded-runner.run-embedded-pi-agent.auth-profile-rotation.test.ts
index 09694ffb623..de67dd10039 100644
--- a/src/agents/pi-embedded-runner.run-embedded-pi-agent.auth-profile-rotation.test.ts
+++ b/src/agents/pi-embedded-runner.run-embedded-pi-agent.auth-profile-rotation.test.ts
@@ -331,6 +331,25 @@ describe("runEmbeddedPiAgent auth profile rotation", () => {
     }
   });
 
+  it("rotates on timeout without cooling down the timed-out profile", async () => {
+    await withAgentWorkspace(async ({ agentDir, workspaceDir }) => {
+      await writeAuthStore(agentDir);
+      mockFailedThenSuccessfulAttempt("request ended without sending any chunks");
+
+      await runAutoPinnedOpenAiTurn({
+        agentDir,
+        workspaceDir,
+        sessionKey: "agent:test:timeout-no-cooldown",
+        runId: "run:timeout-no-cooldown",
+      });
+
+      expect(runEmbeddedAttemptMock).toHaveBeenCalledTimes(2);
+      const usageStats = await readUsageStats(agentDir);
+      expect(typeof usageStats["openai:p2"]?.lastUsed).toBe("number");
+      expect(usageStats["openai:p1"]?.cooldownUntil).toBeUndefined();
+    });
+  });
+
   it("does not rotate for compaction timeouts", async () => {
     await withAgentWorkspace(async ({ agentDir, workspaceDir }) => {
       await writeAuthStore(agentDir);
diff --git a/src/agents/pi-embedded-runner/run.ts b/src/agents/pi-embedded-runner/run.ts
index dc36421fbf6..02e31b8febe 100644
--- a/src/agents/pi-embedded-runner/run.ts
+++ b/src/agents/pi-embedded-runner/run.ts
@@ -949,8 +949,8 @@ export async function runEmbeddedPiAgent(
             );
           }
 
-          // Treat timeout as potential rate limit (Antigravity hangs on rate limit)
-          // But exclude post-prompt compaction timeouts (model succeeded; no profile issue)
+          // Rotate on timeout to try another account/model path in this turn,
+          // but exclude post-prompt compaction timeouts (model succeeded; no profile issue).
           const shouldRotate =
             (!aborted && failoverFailure) || (timedOut && !timedOutDuringCompaction);
 
@@ -973,9 +973,7 @@ export async function runEmbeddedPiAgent(
                 });
               }
               if (timedOut && !isProbeSession) {
-                log.warn(
-                  `Profile ${lastProfileId} timed out (possible rate limit). Trying next account...`,
-                );
+                log.warn(`Profile ${lastProfileId} timed out. Trying next account...`);
               }
               if (cloudCodeAssistFormatError) {
                 log.warn(