diff --git a/src/utils/__tests__/resolveToolProtocol.spec.ts b/src/utils/__tests__/resolveToolProtocol.spec.ts
index 513a7eaa35..14c0edf4d9 100644
--- a/src/utils/__tests__/resolveToolProtocol.spec.ts
+++ b/src/utils/__tests__/resolveToolProtocol.spec.ts
@@ -8,12 +8,15 @@ describe("resolveToolProtocol", () => {
 	/**
 	 * XML Protocol Deprecation:
 	 *
-	 * XML tool protocol has been fully deprecated. All models now use Native
-	 * tool calling. User preferences and model defaults are ignored.
+	 * XML tool protocol has been deprecated for most providers. All models now
+	 * use Native tool calling by default. However, for OpenAI Compatible providers,
+	 * user preferences are still respected because third-party API proxies may not
+	 * fully support native tool calling.
 	 *
 	 * Precedence:
 	 * 1. Locked Protocol (for resumed tasks that used XML)
-	 * 2. Native (always, for all new tasks)
+	 * 2. User preference for OpenAI Compatible provider (allows XML for compatibility)
+	 * 3. Native (default for all other providers and new tasks)
 	 */
 
 	describe("Locked Protocol (Precedence Level 0 - Highest Priority)", () => {
@@ -66,7 +69,7 @@ describe("resolveToolProtocol", () => {
 			expect(result).toBe(TOOL_PROTOCOL.NATIVE)
 		})
 
-		it("should use native for OpenAI compatible provider", () => {
+		it("should use native for OpenAI compatible provider without user preference", () => {
 			const settings: ProviderSettings = {
 				apiProvider: "openai",
 			}
@@ -75,6 +78,44 @@ describe("resolveToolProtocol", () => {
 		})
 	})
 
+	describe("OpenAI Compatible Provider - User Preference Respected", () => {
+		it("should use XML when user explicitly sets toolProtocol to xml for openai provider", () => {
+			const settings: ProviderSettings = {
+				apiProvider: "openai",
+				toolProtocol: "xml",
+			}
+			const result = resolveToolProtocol(settings)
+			expect(result).toBe(TOOL_PROTOCOL.XML)
+		})
+
+		it("should use native when user explicitly sets toolProtocol to native for openai provider", () => {
+			const settings: ProviderSettings = {
+				apiProvider: "openai",
+				toolProtocol: "native",
+			}
+			const result = resolveToolProtocol(settings)
+			expect(result).toBe(TOOL_PROTOCOL.NATIVE)
+		})
+
+		it("should default to native when no toolProtocol is set for openai provider", () => {
+			const settings: ProviderSettings = {
+				apiProvider: "openai",
+			}
+			const result = resolveToolProtocol(settings)
+			expect(result).toBe(TOOL_PROTOCOL.NATIVE)
+		})
+
+		it("should respect locked protocol over user preference for openai provider", () => {
+			const settings: ProviderSettings = {
+				apiProvider: "openai",
+				toolProtocol: "xml",
+			}
+			// Locked protocol takes precedence
+			const result = resolveToolProtocol(settings, undefined, "native")
+			expect(result).toBe(TOOL_PROTOCOL.NATIVE)
+		})
+	})
+
 	describe("Edge Cases", () => {
 		it("should handle missing provider name gracefully", () => {
 			const settings: ProviderSettings = {}
diff --git a/src/utils/resolveToolProtocol.ts b/src/utils/resolveToolProtocol.ts
index 92041fbeaf..11872cae10 100644
--- a/src/utils/resolveToolProtocol.ts
+++ b/src/utils/resolveToolProtocol.ts
@@ -15,21 +15,23 @@ type ApiMessageForDetection = Anthropic.MessageParam & {
  * Resolve the effective tool protocol.
  *
  * **Deprecation Note (XML Protocol):**
- * XML tool protocol has been deprecated. All models now use Native tool calling.
- * User/profile preferences (`providerSettings.toolProtocol`) and model defaults
- * (`modelInfo.defaultToolProtocol`) are ignored.
+ * XML tool protocol has been deprecated for most providers. All models now use
+ * Native tool calling by default. However, for OpenAI Compatible providers,
+ * user preferences are still respected because third-party API proxies may not
+ * fully support native tool calling.
  *
  * Precedence:
  * 1. Locked Protocol (task-level lock for resumed tasks - highest priority)
- * 2. Native (always, for all new tasks)
+ * 2. User preference for OpenAI Compatible provider (allows XML for compatibility)
+ * 3. Native (default for all other providers and new tasks)
  *
- * @param _providerSettings - The provider settings (toolProtocol field is ignored)
+ * @param providerSettings - The provider settings (toolProtocol field is respected for openai provider)
  * @param _modelInfo - Unused, kept for API compatibility
  * @param lockedProtocol - Optional task-locked protocol that takes absolute precedence
  * @returns The resolved tool protocol (either "xml" or "native")
  */
 export function resolveToolProtocol(
-	_providerSettings: ProviderSettings,
+	providerSettings: ProviderSettings,
 	_modelInfo?: unknown,
 	lockedProtocol?: ToolProtocol,
 ): ToolProtocol {
@@ -39,8 +41,15 @@ export function resolveToolProtocol(
 		return lockedProtocol
 	}
 
-	// 2. Always return Native protocol for new tasks
-	// All models now support native tools; XML is deprecated
+	// 2. For OpenAI Compatible provider, respect user preference
+	// Third-party API proxies may not fully support native tool calling,
+	// so users need the ability to select XML protocol as a workaround.
+	if (providerSettings.apiProvider === "openai" && providerSettings.toolProtocol) {
+		return providerSettings.toolProtocol
+	}
+
+	// 3. Default to Native protocol for new tasks
+	// All models now support native tools; XML is deprecated for standard providers
 	return TOOL_PROTOCOL.NATIVE
 }
 
diff --git a/webview-ui/src/components/settings/providers/OpenAICompatible.tsx b/webview-ui/src/components/settings/providers/OpenAICompatible.tsx
index ad338d342a..b67a4ad965 100644
--- a/webview-ui/src/components/settings/providers/OpenAICompatible.tsx
+++ b/webview-ui/src/components/settings/providers/OpenAICompatible.tsx
@@ -8,14 +8,24 @@ import {
 	type ModelInfo,
 	type ReasoningEffort,
 	type OrganizationAllowList,
+	type ToolProtocol,
 	azureOpenAiDefaultApiVersion,
 	openAiModelInfoSaneDefaults,
+	TOOL_PROTOCOL,
 } from "@roo-code/types"
 
 import { ExtensionMessage } from "@roo/ExtensionMessage"
 
 import { useAppTranslation } from "@src/i18n/TranslationContext"
-import { Button, StandardTooltip } from "@src/components/ui"
+import {
+	Button,
+	StandardTooltip,
+	Select,
+	SelectTrigger,
+	SelectValue,
+	SelectContent,
+	SelectItem,
+} from "@src/components/ui"
 
 import { convertHeadersToObject } from "../utils/headers"
 import { inputEventTransform, noTransform } from "../transforms"
@@ -246,6 +256,31 @@ export const OpenAICompatible = ({
 				)}
 			</div>
 
+			{/* Tool Protocol Selector - for third-party API providers that may not support native tool calling */}
+			<div>
+				<label className="block font-medium mb-1">{t("settings:toolProtocol.label")}</label>
+				<Select
+					value={apiConfiguration.toolProtocol || "default"}
+					onValueChange={(value) => {
+						const newValue = value === "default" ? undefined : (value as ToolProtocol)
+						setApiConfigurationField("toolProtocol", newValue)
+					}}>
+					<SelectTrigger className="w-full">
+						<SelectValue placeholder={t("settings:common.select")} />
+					</SelectTrigger>
+					<SelectContent>
+						<SelectItem value="default">
+							{t("settings:toolProtocol.default")} ({t("settings:toolProtocol.native")})
+						</SelectItem>
+						<SelectItem value={TOOL_PROTOCOL.XML}>{t("settings:toolProtocol.xml")}</SelectItem>
+						<SelectItem value={TOOL_PROTOCOL.NATIVE}>{t("settings:toolProtocol.native")}</SelectItem>
+					</SelectContent>
+				</Select>
+				<div className="text-sm text-vscode-descriptionForeground mt-1">
+					{t("settings:toolProtocol.description")}
+				</div>
+			</div>
+
 			<div className="flex flex-col gap-1">
 				<Checkbox
 					checked={apiConfiguration.enableReasoningEffort ?? false}