diff --git a/packages/cli/src/ui/App.test.tsx b/packages/cli/src/ui/App.test.tsx
index 1271c86a..75de2cf2 100644
--- a/packages/cli/src/ui/App.test.tsx
+++ b/packages/cli/src/ui/App.test.tsx
@@ -125,6 +125,7 @@ vi.mock('@gemini-cli/core', async (importOriginal) => {
         getGeminiClient: vi.fn(() => ({})),
         getCheckpointingEnabled: vi.fn(() => opts.checkpointing ?? true),
         getAllGeminiMdFilenames: vi.fn(() => ['GEMINI.md']),
+        setFlashFallbackHandler: vi.fn(),
       };
     });
   return {
diff --git a/packages/cli/src/ui/App.tsx b/packages/cli/src/ui/App.tsx
index c25d74e2..7824f0f7 100644
--- a/packages/cli/src/ui/App.tsx
+++ b/packages/cli/src/ui/App.tsx
@@ -115,6 +115,7 @@ const App = ({ config, settings, startupWarnings = [] }: AppProps) => {
   const [editorError, setEditorError] = useState<string | null>(null);
   const [footerHeight, setFooterHeight] = useState<number>(0);
   const [corgiMode, setCorgiMode] = useState(false);
+  const [currentModel, setCurrentModel] = useState(config.getModel());
   const [shellModeActive, setShellModeActive] = useState(false);
   const [showErrorDetails, setShowErrorDetails] = useState<boolean>(false);
   const [showToolDescriptions, setShowToolDescriptions] =
@@ -214,6 +215,42 @@ const App = ({ config, settings, startupWarnings = [] }: AppProps) => {
     }
   }, [config, addItem]);
 
+  // Watch for model changes (e.g., from Flash fallback)
+  useEffect(() => {
+    const checkModelChange = () => {
+      const configModel = config.getModel();
+      if (configModel !== currentModel) {
+        setCurrentModel(configModel);
+      }
+    };
+
+    // Check immediately and then periodically
+    checkModelChange();
+    const interval = setInterval(checkModelChange, 1000); // Check every second
+
+    return () => clearInterval(interval);
+  }, [config, currentModel]);
+
+  // Set up Flash fallback handler
+  useEffect(() => {
+    const flashFallbackHandler = async (
+      currentModel: string,
+      fallbackModel: string,
+    ): Promise<boolean> => {
+      // Add message to UI history
+      addItem(
+        {
+          type: MessageType.INFO,
+          text: `⚡ Rate limiting detected. Automatically switching from ${currentModel} to ${fallbackModel} for faster responses for the remainder of this session.`,
+        },
+        Date.now(),
+      );
+      return true; // Always accept the fallback
+    };
+
+    config.setFlashFallbackHandler(flashFallbackHandler);
+  }, [config, addItem]);
+
   const {
     handleSlashCommand,
     slashCommands,
@@ -787,7 +824,7 @@ const App = ({ config, settings, startupWarnings = [] }: AppProps) => {
             </Box>
           )}
           <Footer
-            model={config.getModel()}
+            model={currentModel}
             targetDir={config.getTargetDir()}
             debugMode={config.getDebugMode()}
             branchName={branchName}
diff --git a/packages/cli/src/ui/hooks/slashCommandProcessor.ts b/packages/cli/src/ui/hooks/slashCommandProcessor.ts
index b9d3c0da..f76580b7 100644
--- a/packages/cli/src/ui/hooks/slashCommandProcessor.ts
+++ b/packages/cli/src/ui/hooks/slashCommandProcessor.ts
@@ -171,7 +171,7 @@ export const useSlashCommandProcessor = (
     [addMessage],
   );
 
-  const savedChatTags = async function () {
+  const savedChatTags = useCallback(async () => {
     const geminiDir = config?.getProjectTempDir();
     if (!geminiDir) {
       return [];
@@ -186,7 +186,7 @@ export const useSlashCommandProcessor = (
     } catch (_err) {
       return [];
     }
-  };
+  }, [config]);
 
   const slashCommands: SlashCommand[] = useMemo(() => {
     const commands: SlashCommand[] = [
@@ -992,6 +992,7 @@ Add any other context about the problem here.
     addMemoryAction,
     addMessage,
     toggleCorgiMode,
+    savedChatTags,
     config,
     showToolDescriptions,
     session,
diff --git a/packages/core/src/config/config.ts b/packages/core/src/config/config.ts
index a92dd7ba..b266512c 100644
--- a/packages/core/src/config/config.ts
+++ b/packages/core/src/config/config.ts
@@ -35,7 +35,10 @@ import {
   TelemetryTarget,
   StartSessionEvent,
 } from '../telemetry/index.js';
-import { DEFAULT_GEMINI_EMBEDDING_MODEL } from './models.js';
+import {
+  DEFAULT_GEMINI_EMBEDDING_MODEL,
+  DEFAULT_GEMINI_FLASH_MODEL,
+} from './models.js';
 import { ClearcutLogger } from '../telemetry/clearcut-logger/clearcut-logger.js';
 
 export enum ApprovalMode {
@@ -85,6 +88,11 @@ export interface SandboxConfig {
   image: string;
 }
 
+export type FlashFallbackHandler = (
+  currentModel: string,
+  fallbackModel: string,
+) => Promise<boolean>;
+
 export interface ConfigParameters {
   sessionId: string;
   embeddingModel?: string;
@@ -156,6 +164,8 @@ export class Config {
   private readonly bugCommand: BugCommandSettings | undefined;
   private readonly model: string;
   private readonly extensionContextFilePaths: string[];
+  private modelSwitchedDuringSession: boolean = false;
+  flashFallbackHandler?: FlashFallbackHandler;
 
   constructor(params: ConfigParameters) {
     this.sessionId = params.sessionId;
@@ -216,9 +226,24 @@ export class Config {
   }
 
   async refreshAuth(authMethod: AuthType) {
+    // Check if this is actually a switch to a different auth method
+    const previousAuthType = this.contentGeneratorConfig?.authType;
+    const _isAuthMethodSwitch =
+      previousAuthType && previousAuthType !== authMethod;
+
+    // Always use the original default model when switching auth methods
+    // This ensures users don't stay on Flash after switching between auth types
+    // and allows API key users to get proper fallback behavior from getEffectiveModel
+    const modelToUse = this.model; // Use the original default model
+
+    // Temporarily clear contentGeneratorConfig to prevent getModel() from returning
+    // the previous session's model (which might be Flash)
+    this.contentGeneratorConfig = undefined!;
+
     const contentConfig = await createContentGeneratorConfig(
-      this.getModel(),
+      modelToUse,
       authMethod,
+      this,
     );
 
     const gc = new GeminiClient(this);
@@ -226,6 +251,11 @@ export class Config {
     this.toolRegistry = await createToolRegistry(this);
     await gc.initialize(contentConfig);
     this.contentGeneratorConfig = contentConfig;
+
+    // Reset the session flag since we're explicitly changing auth and using default model
+    this.modelSwitchedDuringSession = false;
+
+    // Note: In the future, we may want to reset any cached state when switching auth methods
   }
 
   getSessionId(): string {
@@ -240,6 +270,28 @@ export class Config {
     return this.contentGeneratorConfig?.model || this.model;
   }
 
+  setModel(newModel: string): void {
+    if (this.contentGeneratorConfig) {
+      this.contentGeneratorConfig.model = newModel;
+      this.modelSwitchedDuringSession = true;
+    }
+  }
+
+  isModelSwitchedDuringSession(): boolean {
+    return this.modelSwitchedDuringSession;
+  }
+
+  resetModelToDefault(): void {
+    if (this.contentGeneratorConfig) {
+      this.contentGeneratorConfig.model = this.model; // Reset to the original default model
+      this.modelSwitchedDuringSession = false;
+    }
+  }
+
+  setFlashFallbackHandler(handler: FlashFallbackHandler): void {
+    this.flashFallbackHandler = handler;
+  }
+
   getEmbeddingModel(): string {
     return this.embeddingModel;
   }
@@ -445,3 +497,6 @@ export function createToolRegistry(config: Config): Promise<ToolRegistry> {
     return registry;
   })();
 }
+
+// Export model constants for use in CLI
+export { DEFAULT_GEMINI_FLASH_MODEL };
diff --git a/packages/core/src/config/flashFallback.test.ts b/packages/core/src/config/flashFallback.test.ts
new file mode 100644
index 00000000..325cc064
--- /dev/null
+++ b/packages/core/src/config/flashFallback.test.ts
@@ -0,0 +1,139 @@
+/**
+ * @license
+ * Copyright 2025 Google LLC
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+import { describe, it, expect, beforeEach } from 'vitest';
+import { Config } from './config.js';
+import { DEFAULT_GEMINI_MODEL, DEFAULT_GEMINI_FLASH_MODEL } from './models.js';
+
+describe('Flash Model Fallback Configuration', () => {
+  let config: Config;
+
+  beforeEach(() => {
+    config = new Config({
+      sessionId: 'test-session',
+      targetDir: '/test',
+      debugMode: false,
+      cwd: '/test',
+      model: DEFAULT_GEMINI_MODEL,
+    });
+
+    // Initialize contentGeneratorConfig for testing
+    (
+      config as unknown as { contentGeneratorConfig: unknown }
+    ).contentGeneratorConfig = {
+      model: DEFAULT_GEMINI_MODEL,
+      authType: 'oauth-personal',
+    };
+  });
+
+  describe('setModel', () => {
+    it('should update the model and mark as switched during session', () => {
+      expect(config.getModel()).toBe(DEFAULT_GEMINI_MODEL);
+      expect(config.isModelSwitchedDuringSession()).toBe(false);
+
+      config.setModel(DEFAULT_GEMINI_FLASH_MODEL);
+
+      expect(config.getModel()).toBe(DEFAULT_GEMINI_FLASH_MODEL);
+      expect(config.isModelSwitchedDuringSession()).toBe(true);
+    });
+
+    it('should handle multiple model switches during session', () => {
+      config.setModel(DEFAULT_GEMINI_FLASH_MODEL);
+      expect(config.isModelSwitchedDuringSession()).toBe(true);
+
+      config.setModel('gemini-1.5-pro');
+      expect(config.getModel()).toBe('gemini-1.5-pro');
+      expect(config.isModelSwitchedDuringSession()).toBe(true);
+    });
+
+    it('should only mark as switched if contentGeneratorConfig exists', () => {
+      // Create config without initializing contentGeneratorConfig
+      const newConfig = new Config({
+        sessionId: 'test-session-2',
+        targetDir: '/test',
+        debugMode: false,
+        cwd: '/test',
+        model: DEFAULT_GEMINI_MODEL,
+      });
+
+      // Should not crash when contentGeneratorConfig is undefined
+      newConfig.setModel(DEFAULT_GEMINI_FLASH_MODEL);
+      expect(newConfig.isModelSwitchedDuringSession()).toBe(false);
+    });
+  });
+
+  describe('getModel', () => {
+    it('should return contentGeneratorConfig model if available', () => {
+      // Simulate initialized content generator config
+      config.setModel(DEFAULT_GEMINI_FLASH_MODEL);
+      expect(config.getModel()).toBe(DEFAULT_GEMINI_FLASH_MODEL);
+    });
+
+    it('should fallback to initial model if contentGeneratorConfig is not available', () => {
+      // Test with fresh config where contentGeneratorConfig might not be set
+      const newConfig = new Config({
+        sessionId: 'test-session-2',
+        targetDir: '/test',
+        debugMode: false,
+        cwd: '/test',
+        model: 'custom-model',
+      });
+
+      expect(newConfig.getModel()).toBe('custom-model');
+    });
+  });
+
+  describe('isModelSwitchedDuringSession', () => {
+    it('should start as false for new session', () => {
+      expect(config.isModelSwitchedDuringSession()).toBe(false);
+    });
+
+    it('should remain false if no model switch occurs', () => {
+      // Perform other operations that don't involve model switching
+      expect(config.isModelSwitchedDuringSession()).toBe(false);
+    });
+
+    it('should persist switched state throughout session', () => {
+      config.setModel(DEFAULT_GEMINI_FLASH_MODEL);
+      expect(config.isModelSwitchedDuringSession()).toBe(true);
+
+      // Should remain true even after getting model
+      config.getModel();
+      expect(config.isModelSwitchedDuringSession()).toBe(true);
+    });
+  });
+
+  describe('resetModelToDefault', () => {
+    it('should reset model to default and clear session switch flag', () => {
+      // Switch to Flash first
+      config.setModel(DEFAULT_GEMINI_FLASH_MODEL);
+      expect(config.getModel()).toBe(DEFAULT_GEMINI_FLASH_MODEL);
+      expect(config.isModelSwitchedDuringSession()).toBe(true);
+
+      // Reset to default
+      config.resetModelToDefault();
+
+      // Should be back to default with flag cleared
+      expect(config.getModel()).toBe(DEFAULT_GEMINI_MODEL);
+      expect(config.isModelSwitchedDuringSession()).toBe(false);
+    });
+
+    it('should handle case where contentGeneratorConfig is not initialized', () => {
+      // Create config without initializing contentGeneratorConfig
+      const newConfig = new Config({
+        sessionId: 'test-session-2',
+        targetDir: '/test',
+        debugMode: false,
+        cwd: '/test',
+        model: DEFAULT_GEMINI_MODEL,
+      });
+
+      // Should not crash when contentGeneratorConfig is undefined
+      expect(() => newConfig.resetModelToDefault()).not.toThrow();
+      expect(newConfig.isModelSwitchedDuringSession()).toBe(false);
+    });
+  });
+});
diff --git a/packages/core/src/core/client.test.ts b/packages/core/src/core/client.test.ts
index 8e9bae18..924b4097 100644
--- a/packages/core/src/core/client.test.ts
+++ b/packages/core/src/core/client.test.ts
@@ -20,6 +20,7 @@ import { Turn } from './turn.js';
 import { getCoreSystemPrompt } from './prompts.js';
 import { DEFAULT_GEMINI_FLASH_MODEL } from '../config/models.js';
 import { FileDiscoveryService } from '../services/fileDiscoveryService.js';
+import { setSimulate429 } from '../utils/testUtils.js';
 
 // --- Mocks ---
 const mockChatCreateFn = vi.fn();
@@ -68,6 +69,9 @@ describe('Gemini Client (client.ts)', () => {
   beforeEach(async () => {
     vi.resetAllMocks();
 
+    // Disable 429 simulation for tests
+    setSimulate429(false);
+
     // Set up the mock for GoogleGenAI constructor and its methods
     const MockedGoogleGenAI = vi.mocked(GoogleGenAI);
     MockedGoogleGenAI.mockImplementation(() => {
diff --git a/packages/core/src/core/client.ts b/packages/core/src/core/client.ts
index 36acb3e8..eb94baed 100644
--- a/packages/core/src/core/client.ts
+++ b/packages/core/src/core/client.ts
@@ -38,6 +38,7 @@ import {
 } from './contentGenerator.js';
 import { ProxyAgent, setGlobalDispatcher } from 'undici';
 import { DEFAULT_GEMINI_FLASH_MODEL } from '../config/models.js';
+import { AuthType } from './contentGenerator.js';
 
 function isThinkingSupported(model: string) {
   if (model.startsWith('gemini-2.5')) return true;
@@ -276,7 +277,11 @@ export class GeminiClient {
           contents,
         });
 
-      const result = await retryWithBackoff(apiCall);
+      const result = await retryWithBackoff(apiCall, {
+        onPersistent429: async (authType?: string) =>
+          await this.handleFlashFallback(authType),
+        authType: this.config.getContentGeneratorConfig()?.authType,
+      });
 
       const text = getResponseText(result);
       if (!text) {
@@ -360,7 +365,11 @@ export class GeminiClient {
           contents,
         });
 
-      const result = await retryWithBackoff(apiCall);
+      const result = await retryWithBackoff(apiCall, {
+        onPersistent429: async (authType?: string) =>
+          await this.handleFlashFallback(authType),
+        authType: this.config.getContentGeneratorConfig()?.authType,
+      });
       return result;
     } catch (error: unknown) {
       if (abortSignal.aborted) {
@@ -489,4 +498,43 @@ export class GeminiClient {
         }
       : null;
   }
+
+  /**
+   * Handles fallback to Flash model when persistent 429 errors occur for OAuth users.
+   * Uses a fallback handler if provided by the config, otherwise returns null.
+   */
+  private async handleFlashFallback(authType?: string): Promise<string | null> {
+    // Only handle fallback for OAuth users
+    if (
+      authType !== AuthType.LOGIN_WITH_GOOGLE_PERSONAL &&
+      authType !== AuthType.LOGIN_WITH_GOOGLE_ENTERPRISE
+    ) {
+      return null;
+    }
+
+    const currentModel = this.model;
+    const fallbackModel = DEFAULT_GEMINI_FLASH_MODEL;
+
+    // Don't fallback if already using Flash model
+    if (currentModel === fallbackModel) {
+      return null;
+    }
+
+    // Check if config has a fallback handler (set by CLI package)
+    const fallbackHandler = this.config.flashFallbackHandler;
+    if (typeof fallbackHandler === 'function') {
+      try {
+        const accepted = await fallbackHandler(currentModel, fallbackModel);
+        if (accepted) {
+          this.config.setModel(fallbackModel);
+          this.model = fallbackModel;
+          return fallbackModel;
+        }
+      } catch (error) {
+        console.warn('Flash fallback handler failed:', error);
+      }
+    }
+
+    return null;
+  }
 }
diff --git a/packages/core/src/core/contentGenerator.ts b/packages/core/src/core/contentGenerator.ts
index 058e69a6..c708dad4 100644
--- a/packages/core/src/core/contentGenerator.ts
+++ b/packages/core/src/core/contentGenerator.ts
@@ -51,14 +51,18 @@ export type ContentGeneratorConfig = {
 export async function createContentGeneratorConfig(
   model: string | undefined,
   authType: AuthType | undefined,
+  config?: { getModel?: () => string },
 ): Promise<ContentGeneratorConfig> {
   const geminiApiKey = process.env.GEMINI_API_KEY;
   const googleApiKey = process.env.GOOGLE_API_KEY;
   const googleCloudProject = process.env.GOOGLE_CLOUD_PROJECT;
   const googleCloudLocation = process.env.GOOGLE_CLOUD_LOCATION;
 
+  // Use runtime model from config if available, otherwise fallback to parameter or default
+  const effectiveModel = config?.getModel?.() || model || DEFAULT_GEMINI_MODEL;
+
   const contentGeneratorConfig: ContentGeneratorConfig = {
-    model: model || DEFAULT_GEMINI_MODEL,
+    model: effectiveModel,
     authType,
   };
 
diff --git a/packages/core/src/core/geminiChat.test.ts b/packages/core/src/core/geminiChat.test.ts
index 0b1ed339..18b3729e 100644
--- a/packages/core/src/core/geminiChat.test.ts
+++ b/packages/core/src/core/geminiChat.test.ts
@@ -14,6 +14,7 @@ import {
 } from '@google/genai';
 import { GeminiChat } from './geminiChat.js';
 import { Config } from '../config/config.js';
+import { setSimulate429 } from '../utils/testUtils.js';
 
 // Mocks
 const mockModelsModule = {
@@ -29,6 +30,12 @@ const mockConfig = {
   getTelemetryLogPromptsEnabled: () => true,
   getUsageStatisticsEnabled: () => true,
   getDebugMode: () => false,
+  getContentGeneratorConfig: () => ({
+    authType: 'oauth-personal',
+    model: 'test-model',
+  }),
+  setModel: vi.fn(),
+  flashFallbackHandler: undefined,
 } as unknown as Config;
 
 describe('GeminiChat', () => {
@@ -38,6 +45,8 @@ describe('GeminiChat', () => {
 
   beforeEach(() => {
     vi.clearAllMocks();
+    // Disable 429 simulation for tests
+    setSimulate429(false);
     // Reset history for each test by creating a new instance
     chat = new GeminiChat(mockConfig, mockModelsModule, model, config, []);
   });
diff --git a/packages/core/src/core/geminiChat.ts b/packages/core/src/core/geminiChat.ts
index e08aaf86..4db13852 100644
--- a/packages/core/src/core/geminiChat.ts
+++ b/packages/core/src/core/geminiChat.ts
@@ -18,7 +18,7 @@ import {
 } from '@google/genai';
 import { retryWithBackoff } from '../utils/retry.js';
 import { isFunctionResponse } from '../utils/messageInspectors.js';
-import { ContentGenerator } from './contentGenerator.js';
+import { ContentGenerator, AuthType } from './contentGenerator.js';
 import { Config } from '../config/config.js';
 import {
   logApiRequest,
@@ -34,6 +34,7 @@ import {
   ApiRequestEvent,
   ApiResponseEvent,
 } from '../telemetry/types.js';
+import { DEFAULT_GEMINI_FLASH_MODEL } from '../config/models.js';
 
 /**
  * Returns true if the response is valid, false otherwise.
@@ -181,6 +182,44 @@ export class GeminiChat {
     );
   }
 
+  /**
+   * Handles fallback to Flash model when persistent 429 errors occur for OAuth users.
+   * Uses a fallback handler if provided by the config, otherwise returns null.
+   */
+  private async handleFlashFallback(authType?: string): Promise<string | null> {
+    // Only handle fallback for OAuth users
+    if (
+      authType !== AuthType.LOGIN_WITH_GOOGLE_PERSONAL &&
+      authType !== AuthType.LOGIN_WITH_GOOGLE_ENTERPRISE
+    ) {
+      return null;
+    }
+
+    const currentModel = this.model;
+    const fallbackModel = DEFAULT_GEMINI_FLASH_MODEL;
+
+    // Don't fallback if already using Flash model
+    if (currentModel === fallbackModel) {
+      return null;
+    }
+
+    // Check if config has a fallback handler (set by CLI package)
+    const fallbackHandler = this.config.flashFallbackHandler;
+    if (typeof fallbackHandler === 'function') {
+      try {
+        const accepted = await fallbackHandler(currentModel, fallbackModel);
+        if (accepted) {
+          this.config.setModel(fallbackModel);
+          return fallbackModel;
+        }
+      } catch (error) {
+        console.warn('Flash fallback handler failed:', error);
+      }
+    }
+
+    return null;
+  }
+
   /**
    * Sends a message to the model and returns the response.
    *
@@ -315,6 +354,9 @@ export class GeminiChat {
           }
           return false; // Don't retry other errors by default
         },
+        onPersistent429: async (authType?: string) =>
+          await this.handleFlashFallback(authType),
+        authType: this.config.getContentGeneratorConfig()?.authType,
       });
 
       // Resolve the internal tracking of send completion promise - `sendPromise`
diff --git a/packages/core/src/utils/flashFallback.integration.test.ts b/packages/core/src/utils/flashFallback.integration.test.ts
new file mode 100644
index 00000000..21c40296
--- /dev/null
+++ b/packages/core/src/utils/flashFallback.integration.test.ts
@@ -0,0 +1,144 @@
+/**
+ * @license
+ * Copyright 2025 Google LLC
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+import { describe, it, expect, beforeEach, vi } from 'vitest';
+import { Config } from '../config/config.js';
+import {
+  setSimulate429,
+  disableSimulationAfterFallback,
+  shouldSimulate429,
+  createSimulated429Error,
+  resetRequestCounter,
+} from './testUtils.js';
+import { DEFAULT_GEMINI_FLASH_MODEL } from '../config/models.js';
+import { retryWithBackoff } from './retry.js';
+import { AuthType } from '../core/contentGenerator.js';
+
+describe('Flash Fallback Integration', () => {
+  let config: Config;
+
+  beforeEach(() => {
+    config = new Config({
+      sessionId: 'test-session',
+      targetDir: '/test',
+      debugMode: false,
+      cwd: '/test',
+      model: 'gemini-2.5-pro',
+    });
+
+    // Reset simulation state for each test
+    setSimulate429(false);
+    resetRequestCounter();
+  });
+
+  it('should automatically accept fallback', async () => {
+    // Set up a minimal flash fallback handler for testing
+    const flashFallbackHandler = async (): Promise<boolean> => true;
+
+    config.setFlashFallbackHandler(flashFallbackHandler);
+
+    // Call the handler directly to test
+    const result = await config.flashFallbackHandler!(
+      'gemini-2.5-pro',
+      DEFAULT_GEMINI_FLASH_MODEL,
+    );
+
+    // Verify it automatically accepts
+    expect(result).toBe(true);
+  });
+
+  it('should trigger fallback after 3 consecutive 429 errors for OAuth users', async () => {
+    let fallbackCalled = false;
+    let fallbackModel = '';
+
+    // Mock function that simulates exactly 3 429 errors, then succeeds after fallback
+    const mockApiCall = vi
+      .fn()
+      .mockRejectedValueOnce(createSimulated429Error())
+      .mockRejectedValueOnce(createSimulated429Error())
+      .mockRejectedValueOnce(createSimulated429Error())
+      .mockResolvedValueOnce('success after fallback');
+
+    // Mock fallback handler
+    const mockFallbackHandler = vi.fn(async (_authType?: string) => {
+      fallbackCalled = true;
+      fallbackModel = DEFAULT_GEMINI_FLASH_MODEL;
+      return fallbackModel;
+    });
+
+    // Test with OAuth personal auth type, with maxAttempts = 3 to ensure fallback triggers
+    const result = await retryWithBackoff(mockApiCall, {
+      maxAttempts: 3,
+      initialDelayMs: 1,
+      maxDelayMs: 10,
+      shouldRetry: (error: Error) => {
+        const status = (error as Error & { status?: number }).status;
+        return status === 429;
+      },
+      onPersistent429: mockFallbackHandler,
+      authType: AuthType.LOGIN_WITH_GOOGLE_PERSONAL,
+    });
+
+    // Verify fallback was triggered
+    expect(fallbackCalled).toBe(true);
+    expect(fallbackModel).toBe(DEFAULT_GEMINI_FLASH_MODEL);
+    expect(mockFallbackHandler).toHaveBeenCalledWith(
+      AuthType.LOGIN_WITH_GOOGLE_PERSONAL,
+    );
+    expect(result).toBe('success after fallback');
+    // Should have: 3 failures, then fallback triggered, then 1 success after retry reset
+    expect(mockApiCall).toHaveBeenCalledTimes(4);
+  });
+
+  it('should not trigger fallback for API key users', async () => {
+    let fallbackCalled = false;
+
+    // Mock function that simulates 429 errors
+    const mockApiCall = vi.fn().mockRejectedValue(createSimulated429Error());
+
+    // Mock fallback handler
+    const mockFallbackHandler = vi.fn(async () => {
+      fallbackCalled = true;
+      return DEFAULT_GEMINI_FLASH_MODEL;
+    });
+
+    // Test with API key auth type - should not trigger fallback
+    try {
+      await retryWithBackoff(mockApiCall, {
+        maxAttempts: 5,
+        initialDelayMs: 10,
+        maxDelayMs: 100,
+        shouldRetry: (error: Error) => {
+          const status = (error as Error & { status?: number }).status;
+          return status === 429;
+        },
+        onPersistent429: mockFallbackHandler,
+        authType: AuthType.USE_GEMINI, // API key auth type
+      });
+    } catch (error) {
+      // Expected to throw after max attempts
+      expect((error as Error).message).toContain('Rate limit exceeded');
+    }
+
+    // Verify fallback was NOT triggered for API key users
+    expect(fallbackCalled).toBe(false);
+    expect(mockFallbackHandler).not.toHaveBeenCalled();
+  });
+
+  it('should properly disable simulation state after fallback', () => {
+    // Enable simulation
+    setSimulate429(true);
+
+    // Verify simulation is enabled
+    expect(shouldSimulate429()).toBe(true);
+
+    // Disable simulation after fallback
+    disableSimulationAfterFallback();
+
+    // Verify simulation is now disabled
+    expect(shouldSimulate429()).toBe(false);
+  });
+});
diff --git a/packages/core/src/utils/retry.test.ts b/packages/core/src/utils/retry.test.ts
index 4c269987..39f62981 100644
--- a/packages/core/src/utils/retry.test.ts
+++ b/packages/core/src/utils/retry.test.ts
@@ -7,6 +7,7 @@
 /* eslint-disable @typescript-eslint/no-explicit-any */
 import { describe, it, expect, vi, beforeEach, afterEach } from 'vitest';
 import { retryWithBackoff } from './retry.js';
+import { setSimulate429 } from './testUtils.js';
 
 // Define an interface for the error with a status property
 interface HttpError extends Error {
@@ -42,10 +43,15 @@ class NonRetryableError extends Error {
 describe('retryWithBackoff', () => {
   beforeEach(() => {
     vi.useFakeTimers();
+    // Disable 429 simulation for tests
+    setSimulate429(false);
+    // Suppress unhandled promise rejection warnings for tests that expect errors
+    console.warn = vi.fn();
   });
 
   afterEach(() => {
     vi.restoreAllMocks();
+    vi.useRealTimers();
   });
 
   it('should return the result on the first attempt if successful', async () => {
@@ -231,4 +237,197 @@ describe('retryWithBackoff', () => {
       expect(d).toBeLessThanOrEqual(100 * 1.3);
     });
   });
+
+  describe('Flash model fallback for OAuth users', () => {
+    it('should trigger fallback for OAuth personal users after persistent 429 errors', async () => {
+      const fallbackCallback = vi.fn().mockResolvedValue('gemini-2.5-flash');
+
+      let fallbackOccurred = false;
+      const mockFn = vi.fn().mockImplementation(async () => {
+        if (!fallbackOccurred) {
+          const error: HttpError = new Error('Rate limit exceeded');
+          error.status = 429;
+          throw error;
+        }
+        return 'success';
+      });
+
+      const promise = retryWithBackoff(mockFn, {
+        maxAttempts: 3,
+        initialDelayMs: 100,
+        onPersistent429: async (authType?: string) => {
+          fallbackOccurred = true;
+          return await fallbackCallback(authType);
+        },
+        authType: 'oauth-personal',
+      });
+
+      // Advance all timers to complete retries
+      await vi.runAllTimersAsync();
+
+      // Should succeed after fallback
+      await expect(promise).resolves.toBe('success');
+
+      // Verify callback was called with correct auth type
+      expect(fallbackCallback).toHaveBeenCalledWith('oauth-personal');
+
+      // Should retry again after fallback
+      expect(mockFn).toHaveBeenCalledTimes(4); // 3 initial attempts + 1 after fallback
+    });
+
+    it('should trigger fallback for OAuth enterprise users after persistent 429 errors', async () => {
+      const fallbackCallback = vi.fn().mockResolvedValue('gemini-2.5-flash');
+
+      let fallbackOccurred = false;
+      const mockFn = vi.fn().mockImplementation(async () => {
+        if (!fallbackOccurred) {
+          const error: HttpError = new Error('Rate limit exceeded');
+          error.status = 429;
+          throw error;
+        }
+        return 'success';
+      });
+
+      const promise = retryWithBackoff(mockFn, {
+        maxAttempts: 3,
+        initialDelayMs: 100,
+        onPersistent429: async (authType?: string) => {
+          fallbackOccurred = true;
+          return await fallbackCallback(authType);
+        },
+        authType: 'oauth-enterprise',
+      });
+
+      await vi.runAllTimersAsync();
+
+      await expect(promise).resolves.toBe('success');
+      expect(fallbackCallback).toHaveBeenCalledWith('oauth-enterprise');
+    });
+
+    it('should NOT trigger fallback for API key users', async () => {
+      const fallbackCallback = vi.fn();
+
+      const mockFn = vi.fn(async () => {
+        const error: HttpError = new Error('Rate limit exceeded');
+        error.status = 429;
+        throw error;
+      });
+
+      const promise = retryWithBackoff(mockFn, {
+        maxAttempts: 3,
+        initialDelayMs: 100,
+        onPersistent429: fallbackCallback,
+        authType: 'gemini-api-key',
+      });
+
+      // Handle the promise properly to avoid unhandled rejections
+      const resultPromise = promise.catch((error) => error);
+      await vi.runAllTimersAsync();
+      const result = await resultPromise;
+
+      // Should fail after all retries without fallback
+      expect(result).toBeInstanceOf(Error);
+      expect(result.message).toBe('Rate limit exceeded');
+
+      // Callback should not be called for API key users
+      expect(fallbackCallback).not.toHaveBeenCalled();
+    });
+
+    it('should reset attempt counter and continue after successful fallback', async () => {
+      let fallbackCalled = false;
+      const fallbackCallback = vi.fn().mockImplementation(async () => {
+        fallbackCalled = true;
+        return 'gemini-2.5-flash';
+      });
+
+      const mockFn = vi.fn().mockImplementation(async () => {
+        if (!fallbackCalled) {
+          const error: HttpError = new Error('Rate limit exceeded');
+          error.status = 429;
+          throw error;
+        }
+        return 'success';
+      });
+
+      const promise = retryWithBackoff(mockFn, {
+        maxAttempts: 3,
+        initialDelayMs: 100,
+        onPersistent429: fallbackCallback,
+        authType: 'oauth-personal',
+      });
+
+      await vi.runAllTimersAsync();
+
+      await expect(promise).resolves.toBe('success');
+      expect(fallbackCallback).toHaveBeenCalledOnce();
+    });
+
+    it('should continue with original error if fallback is rejected', async () => {
+      const fallbackCallback = vi.fn().mockResolvedValue(null); // User rejected fallback
+
+      const mockFn = vi.fn(async () => {
+        const error: HttpError = new Error('Rate limit exceeded');
+        error.status = 429;
+        throw error;
+      });
+
+      const promise = retryWithBackoff(mockFn, {
+        maxAttempts: 3,
+        initialDelayMs: 100,
+        onPersistent429: fallbackCallback,
+        authType: 'oauth-personal',
+      });
+
+      // Handle the promise properly to avoid unhandled rejections
+      const resultPromise = promise.catch((error) => error);
+      await vi.runAllTimersAsync();
+      const result = await resultPromise;
+
+      // Should fail with original error when fallback is rejected
+      expect(result).toBeInstanceOf(Error);
+      expect(result.message).toBe('Rate limit exceeded');
+      expect(fallbackCallback).toHaveBeenCalledWith('oauth-personal');
+    });
+
+    it('should handle mixed error types (only count consecutive 429s)', async () => {
+      const fallbackCallback = vi.fn().mockResolvedValue('gemini-2.5-flash');
+      let attempts = 0;
+      let fallbackOccurred = false;
+
+      const mockFn = vi.fn().mockImplementation(async () => {
+        attempts++;
+        if (fallbackOccurred) {
+          return 'success';
+        }
+        if (attempts === 1) {
+          // First attempt: 500 error (resets consecutive count)
+          const error: HttpError = new Error('Server error');
+          error.status = 500;
+          throw error;
+        } else {
+          // Remaining attempts: 429 errors
+          const error: HttpError = new Error('Rate limit exceeded');
+          error.status = 429;
+          throw error;
+        }
+      });
+
+      const promise = retryWithBackoff(mockFn, {
+        maxAttempts: 5,
+        initialDelayMs: 100,
+        onPersistent429: async (authType?: string) => {
+          fallbackOccurred = true;
+          return await fallbackCallback(authType);
+        },
+        authType: 'oauth-personal',
+      });
+
+      await vi.runAllTimersAsync();
+
+      await expect(promise).resolves.toBe('success');
+
+      // Should trigger fallback after 4 consecutive 429s (attempts 2-5)
+      expect(fallbackCallback).toHaveBeenCalledWith('oauth-personal');
+    });
+  });
 });
diff --git a/packages/core/src/utils/retry.ts b/packages/core/src/utils/retry.ts
index 1e7d5bcb..e0fc4ced 100644
--- a/packages/core/src/utils/retry.ts
+++ b/packages/core/src/utils/retry.ts
@@ -4,11 +4,15 @@
  * SPDX-License-Identifier: Apache-2.0
  */
 
+import { AuthType } from '../core/contentGenerator.js';
+
 export interface RetryOptions {
   maxAttempts: number;
   initialDelayMs: number;
   maxDelayMs: number;
   shouldRetry: (error: Error) => boolean;
+  onPersistent429?: (authType?: string) => Promise<string | null>;
+  authType?: string;
 }
 
 const DEFAULT_RETRY_OPTIONS: RetryOptions = {
@@ -59,29 +63,69 @@ export async function retryWithBackoff<T>(
   fn: () => Promise<T>,
   options?: Partial<RetryOptions>,
 ): Promise<T> {
-  const { maxAttempts, initialDelayMs, maxDelayMs, shouldRetry } = {
+  const {
+    maxAttempts,
+    initialDelayMs,
+    maxDelayMs,
+    shouldRetry,
+    onPersistent429,
+    authType,
+  } = {
     ...DEFAULT_RETRY_OPTIONS,
     ...options,
   };
 
   let attempt = 0;
   let currentDelay = initialDelayMs;
+  let consecutive429Count = 0;
 
   while (attempt < maxAttempts) {
     attempt++;
     try {
       return await fn();
     } catch (error) {
+      const errorStatus = getErrorStatus(error);
+
+      // Track consecutive 429 errors
+      if (errorStatus === 429) {
+        consecutive429Count++;
+      } else {
+        consecutive429Count = 0;
+      }
+
+      // Check if we've exhausted retries or shouldn't retry
       if (attempt >= maxAttempts || !shouldRetry(error as Error)) {
+        // If we have persistent 429s and a fallback callback for OAuth
+        if (
+          consecutive429Count >= 3 &&
+          onPersistent429 &&
+          (authType === AuthType.LOGIN_WITH_GOOGLE_PERSONAL ||
+            authType === AuthType.LOGIN_WITH_GOOGLE_ENTERPRISE)
+        ) {
+          try {
+            const fallbackModel = await onPersistent429(authType);
+            if (fallbackModel) {
+              // Reset attempt counter and try with new model
+              attempt = 0;
+              consecutive429Count = 0;
+              currentDelay = initialDelayMs;
+              continue;
+            }
+          } catch (fallbackError) {
+            // If fallback fails, continue with original error
+            console.warn('Fallback to Flash model failed:', fallbackError);
+          }
+        }
         throw error;
       }
 
-      const { delayDurationMs, errorStatus } = getDelayDurationAndStatus(error);
+      const { delayDurationMs, errorStatus: delayErrorStatus } =
+        getDelayDurationAndStatus(error);
 
       if (delayDurationMs > 0) {
         // Respect Retry-After header if present and parsed
         console.warn(
-          `Attempt ${attempt} failed with status ${errorStatus ?? 'unknown'}. Retrying after explicit delay of ${delayDurationMs}ms...`,
+          `Attempt ${attempt} failed with status ${delayErrorStatus ?? 'unknown'}. Retrying after explicit delay of ${delayDurationMs}ms...`,
           error,
         );
         await delay(delayDurationMs);
diff --git a/packages/core/src/utils/testUtils.ts b/packages/core/src/utils/testUtils.ts
new file mode 100644
index 00000000..a0010b10
--- /dev/null
+++ b/packages/core/src/utils/testUtils.ts
@@ -0,0 +1,87 @@
+/**
+ * @license
+ * Copyright 2025 Google LLC
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+/**
+ * Testing utilities for simulating 429 errors in unit tests
+ */
+
+let requestCounter = 0;
+let simulate429Enabled = false;
+let simulate429AfterRequests = 0;
+let simulate429ForAuthType: string | undefined;
+let fallbackOccurred = false;
+
+/**
+ * Check if we should simulate a 429 error for the current request
+ */
+export function shouldSimulate429(authType?: string): boolean {
+  if (!simulate429Enabled || fallbackOccurred) {
+    return false;
+  }
+
+  // If auth type filter is set, only simulate for that auth type
+  if (simulate429ForAuthType && authType !== simulate429ForAuthType) {
+    return false;
+  }
+
+  requestCounter++;
+
+  // If afterRequests is set, only simulate after that many requests
+  if (simulate429AfterRequests > 0) {
+    return requestCounter > simulate429AfterRequests;
+  }
+
+  // Otherwise, simulate for every request
+  return true;
+}
+
+/**
+ * Reset the request counter (useful for tests)
+ */
+export function resetRequestCounter(): void {
+  requestCounter = 0;
+}
+
+/**
+ * Disable 429 simulation after successful fallback
+ */
+export function disableSimulationAfterFallback(): void {
+  fallbackOccurred = true;
+}
+
+/**
+ * Create a simulated 429 error response
+ */
+export function createSimulated429Error(): Error {
+  const error = new Error('Rate limit exceeded (simulated)') as Error & {
+    status: number;
+  };
+  error.status = 429;
+  return error;
+}
+
+/**
+ * Reset simulation state when switching auth methods
+ */
+export function resetSimulationState(): void {
+  fallbackOccurred = false;
+  resetRequestCounter();
+}
+
+/**
+ * Enable/disable 429 simulation programmatically (for tests)
+ */
+export function setSimulate429(
+  enabled: boolean,
+  afterRequests = 0,
+  forAuthType?: string,
+): void {
+  simulate429Enabled = enabled;
+  simulate429AfterRequests = afterRequests;
+  simulate429ForAuthType = forAuthType;
+  fallbackOccurred = false; // Reset fallback state when simulation is re-enabled
+  resetRequestCounter();
+}
diff --git a/packages/core/test-setup.ts b/packages/core/test-setup.ts
new file mode 100644
index 00000000..ed06d5f1
--- /dev/null
+++ b/packages/core/test-setup.ts
@@ -0,0 +1,10 @@
+/**
+ * @license
+ * Copyright 2025 Google LLC
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+import { setSimulate429 } from './src/utils/testUtils.js';
+
+// Disable 429 simulation globally for all tests
+setSimulate429(false);
diff --git a/packages/core/vitest.config.ts b/packages/core/vitest.config.ts
index f3cb0377..f00d72e5 100644
--- a/packages/core/vitest.config.ts
+++ b/packages/core/vitest.config.ts
@@ -10,6 +10,7 @@ export default defineConfig({
   test: {
     reporters: ['default', 'junit'],
     silent: true,
+    setupFiles: ['./test-setup.ts'],
     outputFile: {
       junit: 'junit.xml',
     },