diff --git a/src/google/adk/models/lite_llm.py b/src/google/adk/models/lite_llm.py
index a854c0104b..df9593ae90 100644
--- a/src/google/adk/models/lite_llm.py
+++ b/src/google/adk/models/lite_llm.py
@@ -187,7 +187,9 @@ def _quote_unquoted_json_object_keys(value: str) -> str:
   return "".join(result)
 
 
-def _parse_tool_call_arguments(arguments: Any) -> Any:
+def _parse_tool_call_arguments(
+    arguments: Any, *, strict: bool = True
+) -> Any:
   """Parses LiteLLM tool call arguments.
 
   LiteLLM normally returns OpenAI-compatible tool call arguments as JSON
@@ -195,6 +197,14 @@ def _parse_tool_call_arguments(arguments: Any) -> Any:
   argument payload is a Python dict literal or has unquoted object keys. Keep
   strict JSON as the primary path, then repair only those complete
   object-literal shapes so ADK can still surface the intended function call.
+
+  When ``strict=False`` (non-strict mode), all repairs failing produces a
+  warning log and an empty dict ``{}`` fallback instead of raising.
+
+  Args:
+    arguments: The tool call arguments to parse.
+    strict: If ``True`` (default), raises ``json.JSONDecodeError`` when all
+      repairs fail. If ``False``, logs a warning and returns ``{}``.
   """
   if not arguments:
     return {}
@@ -206,11 +216,13 @@ def _parse_tool_call_arguments(arguments: Any) -> Any:
   except json.JSONDecodeError as exc:
     json_error = exc
 
+  # Retry with Python literal eval (handles single-quoted keys, etc.).
   try:
     return ast.literal_eval(arguments)
   except (SyntaxError, ValueError):
     pass
 
+  # Retry after quoting unquoted JSON object keys.
   repaired_arguments = _quote_unquoted_json_object_keys(arguments)
   if repaired_arguments != arguments:
     try:
@@ -221,6 +233,48 @@ def _parse_tool_call_arguments(arguments: Any) -> Any:
       except (SyntaxError, ValueError):
         pass
 
+  # Retry after stripping Markdown code fences (```json ... ```).
+  fence_match = re.search(
+      r"```(?:json)?\s*(\{[\s\S]*?\})\s*```", arguments
+  )
+  if fence_match:
+    candidate = fence_match.group(1).strip()
+    if candidate != arguments:
+      try:
+        return json.loads(candidate)
+      except json.JSONDecodeError:
+        try:
+          return ast.literal_eval(candidate)
+        except (SyntaxError, ValueError):
+          pass
+      # Also try with unquoted-key repair on the fence-stripped content.
+      repaired_candidate = _quote_unquoted_json_object_keys(candidate)
+      if repaired_candidate != candidate:
+        try:
+          return json.loads(repaired_candidate)
+        except json.JSONDecodeError:
+          try:
+            return ast.literal_eval(repaired_candidate)
+          except (SyntaxError, ValueError):
+            pass
+
+  # Fall back to the first balanced {…} block (tolerates trailing content).
+  open_brace = arguments.find("{")
+  if open_brace != -1:
+    try:
+      candidate, _ = _JSON_DECODER.raw_decode(arguments, open_brace)
+      return candidate
+    except json.JSONDecodeError:
+      pass
+
+  if not strict:
+    logger.warning(
+        "Failed to parse tool call arguments as JSON, falling back to empty"
+        " args. Arguments (first 200 chars): %s",
+        arguments[:200],
+    )
+    return {}
+
   raise json_error
 
 
@@ -2388,7 +2442,9 @@ def _message_to_generate_content_response(
         thought_signature = _extract_thought_signature_from_tool_call(tool_call)
         part = types.Part.from_function_call(
             name=tool_call.function.name,
-            args=_parse_tool_call_arguments(tool_call.function.arguments),
+            args=_parse_tool_call_arguments(
+                tool_call.function.arguments, strict=False
+            ),
         )
         function_call = part.function_call
         if function_call is None:
diff --git a/tests/unittests/models/test_litellm.py b/tests/unittests/models/test_litellm.py
index 68b0e74c17..dbb72c25fe 100644
--- a/tests/unittests/models/test_litellm.py
+++ b/tests/unittests/models/test_litellm.py
@@ -54,6 +54,7 @@
 from google.adk.models.lite_llm import _model_response_to_chunk
 from google.adk.models.lite_llm import _model_response_to_generate_content_response
 from google.adk.models.lite_llm import _parse_deepseek_tool_calls_from_text
+from google.adk.models.lite_llm import _parse_tool_call_arguments
 from google.adk.models.lite_llm import _parse_tool_calls_from_text
 from google.adk.models.lite_llm import _redact_file_uri_for_log
 from google.adk.models.lite_llm import _redirect_litellm_loggers_to_stdout
@@ -7076,3 +7077,67 @@ async def test_generate_content_async_omits_tool_choice_when_functions_override(
   _, kwargs = mock_acompletion.call_args
   assert kwargs.get("tools") is None
   assert "tool_choice" not in kwargs
+
+
+class TestParseToolCallArguments:
+  """Tests for _parse_tool_call_arguments."""
+
+  def test_valid_json(self):
+    assert _parse_tool_call_arguments('{"a": 1}') == {"a": 1}
+
+  def test_empty(self):
+    assert _parse_tool_call_arguments(None) == {}
+    assert _parse_tool_call_arguments("") == {}
+
+  def test_already_dict(self):
+    assert _parse_tool_call_arguments({"a": 1}) == {"a": 1}
+
+  def test_unquoted_keys(self):
+    result = _parse_tool_call_arguments('{a: 1}')
+    assert result == {"a": 1}
+
+  def test_markdown_fence_valid(self):
+    result = _parse_tool_call_arguments(
+        "```json\n{\"a\": 1}\n```"
+    )
+    assert result == {"a": 1}
+
+  def test_markdown_fence_malformed(self):
+    result = _parse_tool_call_arguments("```\n{a: 1}\n```")
+    assert result == {"a": 1}
+
+  def test_extra_trailing_text(self):
+    result = _parse_tool_call_arguments('{"a": 1} extra stuff')
+    assert result == {"a": 1}
+
+  def test_truly_malformed_strict_raises(self):
+    with pytest.raises(json.JSONDecodeError):
+      _parse_tool_call_arguments("{bad")
+
+  def test_truly_malformed_nonstrict_returns_empty(self):
+    result = _parse_tool_call_arguments("{bad", strict=False)
+    assert result == {}
+
+  def test_trailing_comma(self):
+    result = _parse_tool_call_arguments('{"a": 1,}')
+    assert result == {"a": 1}
+
+  def test_single_quotes(self):
+    result = _parse_tool_call_arguments("{'a': 1}")
+    assert result == {"a": 1}
+
+  def test_empty_object(self):
+    result = _parse_tool_call_arguments("{}")
+    assert result == {}
+
+  def test_nested_objects(self):
+    result = _parse_tool_call_arguments('{"a": {"b": 2}}')
+    assert result == {"a": {"b": 2}}
+
+  def test_array_values(self):
+    result = _parse_tool_call_arguments('{"a": [1, 2, 3]}')
+    assert result == {"a": [1, 2, 3]}
+
+  def test_string_with_escaped_chars(self):
+    result = _parse_tool_call_arguments('{"a": "he\\"llo"}')
+    assert result == {"a": 'he"llo'}