diff --git a/Cargo.lock b/Cargo.lock
index 0eda119e6bafe7017516c254d270d7a26d533f65..f08ed4cd173f7aa68ad62b99a0c3f4692fde60e2 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -179,6 +179,7 @@ dependencies = [
  "gpui",
  "gpui_tokio",
  "handlebars 4.5.0",
+ "heck 0.5.0",
  "html_to_markdown",
  "http_client",
  "indoc",
diff --git a/crates/agent/Cargo.toml b/crates/agent/Cargo.toml
index 2ea713a04d66b6e351cdb163318c39498bb412c3..9f563cf0b1b009a496d36a6f090b0f4b476433a7 100644
--- a/crates/agent/Cargo.toml
+++ b/crates/agent/Cargo.toml
@@ -38,6 +38,7 @@ futures.workspace = true
 git.workspace = true
 gpui.workspace = true
 handlebars = { workspace = true, features = ["rust-embed"] }
+heck.workspace = true
 html_to_markdown.workspace = true
 http_client.workspace = true
 indoc.workspace = true
diff --git a/crates/agent/src/tests/mod.rs b/crates/agent/src/tests/mod.rs
index 499d9bdd30d50b236023e872805acaf6680f75ee..6434ba09a872a4674d53450606834a5b2923436b 100644
--- a/crates/agent/src/tests/mod.rs
+++ b/crates/agent/src/tests/mod.rs
@@ -1767,6 +1767,23 @@ async fn test_mcp_tool_truncation(cx: &mut TestAppContext) {
         cx,
     );
 
+    // Server with spaces in name - tests snake_case conversion for API compatibility
+    let _server4_calls = setup_context_server(
+        "Azure DevOps",
+        vec![context_server::types::Tool {
+            name: "echo".into(), // Also conflicts - will be disambiguated as azure_dev_ops_echo
+            description: None,
+            input_schema: serde_json::to_value(EchoTool::input_schema(
+                LanguageModelToolSchemaFormat::JsonSchema,
+            ))
+            .unwrap(),
+            output_schema: None,
+            annotations: None,
+        }],
+        &context_server_store,
+        cx,
+    );
+
     thread
         .update(cx, |thread, cx| {
             thread.send(UserMessageId::new(), ["Go"], cx)
@@ -1777,6 +1794,7 @@ async fn test_mcp_tool_truncation(cx: &mut TestAppContext) {
     assert_eq!(
         tool_names_for_completion(&completion),
         vec![
+            "azure_dev_ops_echo",
             "bbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbb",
             "cccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc",
             "delay",
diff --git a/crates/agent/src/thread.rs b/crates/agent/src/thread.rs
index 26026175e68f3fecd20d21441bb7f1e41a438207..1820aebae547afa1a01968bb5d160b34503e9e1e 100644
--- a/crates/agent/src/thread.rs
+++ b/crates/agent/src/thread.rs
@@ -32,6 +32,7 @@ use futures::{
 use gpui::{
     App, AppContext, AsyncApp, Context, Entity, EventEmitter, SharedString, Task, WeakEntity,
 };
+use heck::ToSnakeCase as _;
 use language_model::{
     LanguageModel, LanguageModelCompletionError, LanguageModelCompletionEvent, LanguageModelId,
     LanguageModelImage, LanguageModelProviderId, LanguageModelRegistry, LanguageModelRequest,
@@ -2466,13 +2467,14 @@ impl Thread {
         }
 
         // When there are duplicate tool names, disambiguate by prefixing them
-        // with the server ID. In the rare case there isn't enough space for the
-        // disambiguated tool name, keep only the last tool with this name.
+        // with the server ID (converted to snake_case for API compatibility).
+        // In the rare case there isn't enough space for the disambiguated tool
+        // name, keep only the last tool with this name.
         for (server_id, tool_name, tool) in context_server_tools {
             if duplicate_tool_names.contains(&tool_name) {
                 let available = MAX_TOOL_NAME_LENGTH.saturating_sub(tool_name.len());
                 if available >= 2 {
-                    let mut disambiguated = server_id.0.to_string();
+                    let mut disambiguated = server_id.0.to_snake_case();
                     disambiguated.truncate(available - 1);
                     disambiguated.push('_');
                     disambiguated.push_str(&tool_name);