diff --git a/python/packages/core/agent_framework/openai/_responses_client.py b/python/packages/core/agent_framework/openai/_responses_client.py
index 37a35ae9bc..87ac6acf29 100644
--- a/python/packages/core/agent_framework/openai/_responses_client.py
+++ b/python/packages/core/agent_framework/openai/_responses_client.py
@@ -605,8 +605,12 @@ def _check_model_presence(self, options: dict[str, Any]) -> None:
             options["model"] = self.model_id
 
     def _get_current_conversation_id(self, options: dict[str, Any], **kwargs: Any) -> str | None:
-        """Get the current conversation ID from options dict or kwargs."""
-        return options.get("conversation_id") or kwargs.get("conversation_id")
+        """Get the current conversation ID, preferring kwargs over options.
+
+        This ensures runtime-updated conversation IDs (for example, from tool execution
+        loops) take precedence over the initial configuration provided in options.
+        """
+        return kwargs.get("conversation_id") or options.get("conversation_id")
 
     def _prepare_messages_for_openai(self, chat_messages: Sequence[ChatMessage]) -> list[dict[str, Any]]:
         """Prepare the chat messages for a request.
diff --git a/python/packages/core/tests/openai/test_openai_responses_client.py b/python/packages/core/tests/openai/test_openai_responses_client.py
index c91297d7df..977d948c3d 100644
--- a/python/packages/core/tests/openai/test_openai_responses_client.py
+++ b/python/packages/core/tests/openai/test_openai_responses_client.py
@@ -1682,6 +1682,20 @@ async def test_prepare_options_store_parameter_handling() -> None:
     assert "previous_response_id" not in options
 
 
+async def test_conversation_id_precedence_kwargs_over_options() -> None:
+    """When both kwargs and options contain conversation_id, kwargs wins."""
+    client = OpenAIResponsesClient(model_id="test-model", api_key="test-key")
+    messages = [ChatMessage(role="user", text="Hello")]
+
+    # options has a stale response id, kwargs carries the freshest one
+    opts = {"conversation_id": "resp_old_123"}
+    run_opts = await client._prepare_options(messages, opts, conversation_id="resp_new_456")  # type: ignore
+
+    # Verify kwargs takes precedence and maps to previous_response_id for resp_* IDs
+    assert run_opts.get("previous_response_id") == "resp_new_456"
+    assert "conversation" not in run_opts
+
+
 def test_with_callable_api_key() -> None:
     """Test OpenAIResponsesClient initialization with callable API key."""