diff --git a/frontend/src/components/LLMSelection/AzureAiOptions/index.jsx b/frontend/src/components/LLMSelection/AzureAiOptions/index.jsx
index dcfd8b058..12c50dcee 100644
--- a/frontend/src/components/LLMSelection/AzureAiOptions/index.jsx
+++ b/frontend/src/components/LLMSelection/AzureAiOptions/index.jsx
@@ -1,4 +1,6 @@
+import { Info } from "@phosphor-icons/react";
 import { useTranslation } from "react-i18next";
+import { Tooltip } from "react-tooltip";
 
 export default function AzureAiOptions({ settings }) {
   const { t } = useTranslation();
@@ -79,9 +81,33 @@ export default function AzureAiOptions({ settings }) {
         </div>
 
         <div className="flex flex-col w-60">
-          <label className="text-white text-sm font-semibold block mb-3">
-            {t("llm.providers.azure_openai.model_type")}
-          </label>
+          <div className="flex items-center gap-1 mb-3">
+            <label className="text-white text-sm font-semibold block">
+              {t("llm.providers.azure_openai.model_type")}
+            </label>
+            <Tooltip
+              id="azure-openai-model-type"
+              place="top"
+              delayShow={300}
+              className="tooltip !text-xs !opacity-100"
+              style={{
+                maxWidth: "250px",
+                whiteSpace: "normal",
+                wordWrap: "break-word",
+              }}
+            />
+            <div
+              type="button"
+              className="text-theme-text-secondary cursor-pointer hover:bg-theme-bg-primary flex items-center justify-center rounded-full"
+              data-tooltip-id="azure-openai-model-type"
+              data-tooltip-place="top"
+              data-tooltip-content={t(
+                "llm.providers.azure_openai.model_type_tooltip"
+              )}
+            >
+              <Info size={18} className="text-theme-text-secondary" />
+            </div>
+          </div>
           <select
             name="AzureOpenAiModelType"
             defaultValue={settings?.AzureOpenAiModelType || "default"}
diff --git a/frontend/src/locales/ar/common.js b/frontend/src/locales/ar/common.js
index b1e07df25..c31d8dc42 100644
--- a/frontend/src/locales/ar/common.js
+++ b/frontend/src/locales/ar/common.js
@@ -363,6 +363,7 @@ const TRANSLATIONS = {
         model_type: null,
         default: null,
         reasoning: null,
+        model_type_tooltip: null,
       },
     },
   },
diff --git a/frontend/src/locales/da/common.js b/frontend/src/locales/da/common.js
index db8767aa9..4f47a4b7c 100644
--- a/frontend/src/locales/da/common.js
+++ b/frontend/src/locales/da/common.js
@@ -365,6 +365,7 @@ const TRANSLATIONS = {
         model_type: null,
         default: null,
         reasoning: null,
+        model_type_tooltip: null,
       },
     },
   },
diff --git a/frontend/src/locales/de/common.js b/frontend/src/locales/de/common.js
index 4b56f39e8..bbc6ef2ec 100644
--- a/frontend/src/locales/de/common.js
+++ b/frontend/src/locales/de/common.js
@@ -557,6 +557,7 @@ const TRANSLATIONS = {
         model_type: "Art des Modells",
         default: "Standard",
         reasoning: "Reasoning",
+        model_type_tooltip: null,
       },
     },
   },
diff --git a/frontend/src/locales/en/common.js b/frontend/src/locales/en/common.js
index 34b16cf0f..0c98811f3 100644
--- a/frontend/src/locales/en/common.js
+++ b/frontend/src/locales/en/common.js
@@ -583,6 +583,8 @@ const TRANSLATIONS = {
         chat_deployment_name: "Chat Deployment Name",
         chat_model_token_limit: "Chat Model Token Limit",
         model_type: "Model Type",
+        model_type_tooltip:
+          "If your deployment uses a reasoning model (o1, o1-mini, o3-mini, etc.), set this to “Reasoning”. Otherwise, your chat requests may fail.",
         default: "Default",
         reasoning: "Reasoning",
       },
diff --git a/frontend/src/locales/es/common.js b/frontend/src/locales/es/common.js
index 83f5e49fd..fc879d4b1 100644
--- a/frontend/src/locales/es/common.js
+++ b/frontend/src/locales/es/common.js
@@ -568,6 +568,7 @@ const TRANSLATIONS = {
         model_type: "Tipo de modelo",
         default: "Predeterminado",
         reasoning: "Razonamiento",
+        model_type_tooltip: null,
       },
     },
   },
diff --git a/frontend/src/locales/et/common.js b/frontend/src/locales/et/common.js
index 972a500e2..ec1fa2d9b 100644
--- a/frontend/src/locales/et/common.js
+++ b/frontend/src/locales/et/common.js
@@ -534,6 +534,7 @@ const TRANSLATIONS = {
         model_type: "Mudeli tüüp",
         default: "Vaikimisi",
         reasoning: "Põhjendus",
+        model_type_tooltip: null,
       },
     },
   },
diff --git a/frontend/src/locales/fa/common.js b/frontend/src/locales/fa/common.js
index 16f912bdb..79a4ffdcf 100644
--- a/frontend/src/locales/fa/common.js
+++ b/frontend/src/locales/fa/common.js
@@ -355,6 +355,7 @@ const TRANSLATIONS = {
         model_type: null,
         default: null,
         reasoning: null,
+        model_type_tooltip: null,
       },
     },
   },
diff --git a/frontend/src/locales/fr/common.js b/frontend/src/locales/fr/common.js
index aca6bc53d..f4d3a4b05 100644
--- a/frontend/src/locales/fr/common.js
+++ b/frontend/src/locales/fr/common.js
@@ -371,6 +371,7 @@ const TRANSLATIONS = {
         model_type: "Type de modèle",
         default: "Par défaut",
         reasoning: "Raisonnement",
+        model_type_tooltip: null,
       },
     },
   },
diff --git a/frontend/src/locales/he/common.js b/frontend/src/locales/he/common.js
index 98bc1aa7a..493fa3eb3 100644
--- a/frontend/src/locales/he/common.js
+++ b/frontend/src/locales/he/common.js
@@ -541,6 +541,7 @@ const TRANSLATIONS = {
         model_type: "סוג מודל",
         default: "ברירת מחדל",
         reasoning: "היגיון",
+        model_type_tooltip: null,
       },
     },
   },
diff --git a/frontend/src/locales/it/common.js b/frontend/src/locales/it/common.js
index 5255eb5e8..d4cf25a61 100644
--- a/frontend/src/locales/it/common.js
+++ b/frontend/src/locales/it/common.js
@@ -360,6 +360,7 @@ const TRANSLATIONS = {
         model_type: null,
         default: null,
         reasoning: null,
+        model_type_tooltip: null,
       },
     },
   },
diff --git a/frontend/src/locales/ja/common.js b/frontend/src/locales/ja/common.js
index 70b5d58e9..f73913f39 100644
--- a/frontend/src/locales/ja/common.js
+++ b/frontend/src/locales/ja/common.js
@@ -363,6 +363,7 @@ const TRANSLATIONS = {
         model_type: null,
         default: null,
         reasoning: null,
+        model_type_tooltip: null,
       },
     },
   },
diff --git a/frontend/src/locales/ko/common.js b/frontend/src/locales/ko/common.js
index cc06dce79..591334d49 100644
--- a/frontend/src/locales/ko/common.js
+++ b/frontend/src/locales/ko/common.js
@@ -544,6 +544,7 @@ const TRANSLATIONS = {
         model_type: "모델 유형",
         default: "기본값",
         reasoning: "추론",
+        model_type_tooltip: null,
       },
     },
   },
diff --git a/frontend/src/locales/lv/common.js b/frontend/src/locales/lv/common.js
index 86d7566e3..63e5fdf06 100644
--- a/frontend/src/locales/lv/common.js
+++ b/frontend/src/locales/lv/common.js
@@ -552,6 +552,7 @@ const TRANSLATIONS = {
         model_type: null,
         default: null,
         reasoning: null,
+        model_type_tooltip: null,
       },
     },
   },
diff --git a/frontend/src/locales/nl/common.js b/frontend/src/locales/nl/common.js
index 0a9f88147..5ff71c289 100644
--- a/frontend/src/locales/nl/common.js
+++ b/frontend/src/locales/nl/common.js
@@ -357,6 +357,7 @@ const TRANSLATIONS = {
         model_type: null,
         default: null,
         reasoning: null,
+        model_type_tooltip: null,
       },
     },
   },
diff --git a/frontend/src/locales/pl/common.js b/frontend/src/locales/pl/common.js
index f6c3c3aa5..8d45ec049 100644
--- a/frontend/src/locales/pl/common.js
+++ b/frontend/src/locales/pl/common.js
@@ -557,6 +557,7 @@ const TRANSLATIONS = {
         model_type: "Typ modelu",
         default: "Domyślne",
         reasoning: "Uzasadnienie",
+        model_type_tooltip: null,
       },
     },
   },
diff --git a/frontend/src/locales/pt_BR/common.js b/frontend/src/locales/pt_BR/common.js
index aa3655afd..6cf084de3 100644
--- a/frontend/src/locales/pt_BR/common.js
+++ b/frontend/src/locales/pt_BR/common.js
@@ -542,6 +542,7 @@ const TRANSLATIONS = {
         model_type: "Tipo do Modelo",
         default: "Padrão",
         reasoning: "Raciocínio",
+        model_type_tooltip: null,
       },
     },
   },
diff --git a/frontend/src/locales/ro/common.js b/frontend/src/locales/ro/common.js
index eafa9c228..b6e4d90de 100644
--- a/frontend/src/locales/ro/common.js
+++ b/frontend/src/locales/ro/common.js
@@ -1011,6 +1011,7 @@ const TRANSLATIONS = {
         model_type: "Tip model",
         default: "Implicit",
         reasoning: "Raționament",
+        model_type_tooltip: null,
       },
     },
   },
diff --git a/frontend/src/locales/ru/common.js b/frontend/src/locales/ru/common.js
index efac39e05..acac6530f 100644
--- a/frontend/src/locales/ru/common.js
+++ b/frontend/src/locales/ru/common.js
@@ -366,6 +366,7 @@ const TRANSLATIONS = {
         model_type: null,
         default: null,
         reasoning: null,
+        model_type_tooltip: null,
       },
     },
   },
diff --git a/frontend/src/locales/tr/common.js b/frontend/src/locales/tr/common.js
index 71441d368..fb03874b3 100644
--- a/frontend/src/locales/tr/common.js
+++ b/frontend/src/locales/tr/common.js
@@ -357,6 +357,7 @@ const TRANSLATIONS = {
         model_type: null,
         default: null,
         reasoning: null,
+        model_type_tooltip: null,
       },
     },
   },
diff --git a/frontend/src/locales/vn/common.js b/frontend/src/locales/vn/common.js
index 45b545699..7f0458c2b 100644
--- a/frontend/src/locales/vn/common.js
+++ b/frontend/src/locales/vn/common.js
@@ -356,6 +356,7 @@ const TRANSLATIONS = {
         model_type: null,
         default: null,
         reasoning: null,
+        model_type_tooltip: null,
       },
     },
   },
diff --git a/frontend/src/locales/zh/common.js b/frontend/src/locales/zh/common.js
index f1d59b71d..855c512c9 100644
--- a/frontend/src/locales/zh/common.js
+++ b/frontend/src/locales/zh/common.js
@@ -520,6 +520,7 @@ const TRANSLATIONS = {
         model_type: "模型类型",
         default: "预设",
         reasoning: "推理",
+        model_type_tooltip: null,
       },
     },
   },
diff --git a/frontend/src/locales/zh_TW/common.js b/frontend/src/locales/zh_TW/common.js
index f1af8bf6c..9343cc440 100644
--- a/frontend/src/locales/zh_TW/common.js
+++ b/frontend/src/locales/zh_TW/common.js
@@ -348,6 +348,7 @@ const TRANSLATIONS = {
         model_type: "模型類型",
         default: "預設",
         reasoning: "推理",
+        model_type_tooltip: null,
       },
     },
   },
diff --git a/server/utils/AiProviders/azureOpenAi/index.js b/server/utils/AiProviders/azureOpenAi/index.js
index d6e58ccfd..274bbb19a 100644
--- a/server/utils/AiProviders/azureOpenAi/index.js
+++ b/server/utils/AiProviders/azureOpenAi/index.js
@@ -9,19 +9,23 @@ const {
 
 class AzureOpenAiLLM {
   constructor(embedder = null, modelPreference = null) {
-    const { AzureOpenAI } = require("openai");
+    const { OpenAI } = require("openai");
     if (!process.env.AZURE_OPENAI_ENDPOINT)
       throw new Error("No Azure API endpoint was set.");
     if (!process.env.AZURE_OPENAI_KEY)
       throw new Error("No Azure API key was set.");
 
-    this.apiVersion = "2024-12-01-preview";
-    this.openai = new AzureOpenAI({
+    this.openai = new OpenAI({
       apiKey: process.env.AZURE_OPENAI_KEY,
-      apiVersion: this.apiVersion,
-      endpoint: process.env.AZURE_OPENAI_ENDPOINT,
+      baseURL: AzureOpenAiLLM.formatBaseUrl(process.env.AZURE_OPENAI_ENDPOINT),
     });
     this.model = modelPreference ?? process.env.OPEN_MODEL_PREF;
+    /* 
+      Note: Azure OpenAI deployments do not expose model metadata that would allow us to
+      programmatically detect whether the deployment uses a reasoning model (o1, o1-mini, o3-mini, etc.).
+      As a result, we rely on the user to explicitly set AZURE_OPENAI_MODEL_TYPE="reasoning"
+      when using reasoning models, as incorrect configuration might result in chat errors.
+    */
     this.isOTypeModel =
       process.env.AZURE_OPENAI_MODEL_TYPE === "reasoning" || false;
     this.limits = {
@@ -37,6 +41,26 @@ class AzureOpenAiLLM {
     );
   }
 
+  /**
+   * Formats the Azure OpenAI endpoint URL to the correct format.
+   * @param {string} azureOpenAiEndpoint - The Azure OpenAI endpoint URL.
+   * @returns {string} The formatted URL.
+   */
+  static formatBaseUrl(azureOpenAiEndpoint) {
+    try {
+      const url = new URL(azureOpenAiEndpoint);
+      url.pathname = "/openai/v1";
+      url.protocol = "https";
+      url.search = "";
+      url.hash = "";
+      return url.href;
+    } catch (error) {
+      throw new Error(
+        `"${azureOpenAiEndpoint}" is not a valid URL. Check your settings for the Azure OpenAI provider and set a valid endpoint URL.`
+      );
+    }
+  }
+
   #log(text, ...args) {
     console.log(`\x1b[32m[AzureOpenAi]\x1b[0m ${text}`, ...args);
   }
@@ -54,13 +78,6 @@ class AzureOpenAiLLM {
   }
 
   streamingEnabled() {
-    // Streaming of reasoning models is not supported
-    if (this.isOTypeModel) {
-      this.#log(
-        "Streaming will be disabled. AZURE_OPENAI_MODEL_TYPE is set to 'reasoning'."
-      );
-      return false;
-    }
     return "streamGetChatCompletion" in this;
   }
 
diff --git a/server/utils/agents/aibitat/providers/azure.js b/server/utils/agents/aibitat/providers/azure.js
index 037937f35..58ed8471a 100644
--- a/server/utils/agents/aibitat/providers/azure.js
+++ b/server/utils/agents/aibitat/providers/azure.js
@@ -1,4 +1,5 @@
-const { AzureOpenAI } = require("openai");
+const { OpenAI } = require("openai");
+const { AzureOpenAiLLM } = require("../../../AiProviders/azureOpenAi");
 const Provider = require("./ai-provider.js");
 const { RetryError } = require("../error.js");
 
@@ -9,10 +10,9 @@ class AzureOpenAiProvider extends Provider {
   model;
 
   constructor(config = { model: null }) {
-    const client = new AzureOpenAI({
+    const client = new OpenAI({
       apiKey: process.env.AZURE_OPENAI_KEY,
-      endpoint: process.env.AZURE_OPENAI_ENDPOINT,
-      apiVersion: "2024-12-01-preview",
+      baseURL: AzureOpenAiLLM.formatBaseUrl(process.env.AZURE_OPENAI_ENDPOINT),
     });
     super(client);
     this.model = config.model ?? process.env.OPEN_MODEL_PREF;
@@ -84,12 +84,12 @@ class AzureOpenAiProvider extends Provider {
     } catch (error) {
       // If invalid Auth error we need to abort because no amount of waiting
       // will make auth better.
-      if (error instanceof AzureOpenAI.AuthenticationError) throw error;
+      if (error instanceof OpenAI.AuthenticationError) throw error;
 
       if (
-        error instanceof AzureOpenAI.RateLimitError ||
-        error instanceof AzureOpenAI.InternalServerError ||
-        error instanceof AzureOpenAI.APIError // Also will catch AuthenticationError!!!
+        error instanceof OpenAI.RateLimitError ||
+        error instanceof OpenAI.InternalServerError ||
+        error instanceof OpenAI.APIError // Also will catch AuthenticationError!!!
       ) {
         throw new RetryError(error.message);
       }