diff --git a/packages/ai/src/utils/models/ai-fallback-memory-safe.test.ts b/packages/ai/src/utils/models/ai-fallback-memory-safe.test.ts
index 779bebe8b..ec2452834 100644
--- a/packages/ai/src/utils/models/ai-fallback-memory-safe.test.ts
+++ b/packages/ai/src/utils/models/ai-fallback-memory-safe.test.ts
@@ -64,6 +64,47 @@ function createMemorySafeMockModel(
   };
 }
 
+// Memory-safe mock that simulates AbortError during streaming
+function createAbortingMemorySafeMockModel(id: string, abortAfterChunks = 1): LanguageModelV1 {
+  return {
+    specificationVersion: 'v1' as const,
+    modelId: id,
+    provider: `provider-${id}`,
+    defaultObjectGenerationMode: undefined,
+
+    doGenerate: vi.fn(),
+
+    doStream: vi.fn().mockImplementation(async () => {
+      let readCount = 0;
+
+      return {
+        stream: {
+          getReader: () => ({
+            read: vi.fn().mockImplementation(async () => {
+              if (readCount < abortAfterChunks) {
+                readCount++;
+                return {
+                  done: false,
+                  value: {
+                    type: 'text-delta',
+                    textDelta: `Stream chunk ${readCount} from ${id}`,
+                  } as LanguageModelV1StreamPart,
+                };
+              }
+              // Throw AbortError after specified chunks
+              const abortError = new Error('The operation was aborted');
+              abortError.name = 'AbortError';
+              throw abortError;
+            }),
+            releaseLock: vi.fn(),
+          }),
+        } as any,
+        rawCall: { rawPrompt: 'test', rawSettings: {} },
+      };
+    }),
+  };
+}
+
 describe('FallbackModel - Memory Safe Streaming Tests', () => {
   it('should successfully stream from the first model', async () => {
     const model1 = createMemorySafeMockModel('model1');
@@ -138,4 +179,149 @@ describe('FallbackModel - Memory Safe Streaming Tests', () => {
     await expect(fallback.doStream(options)).rejects.toThrow('Invalid API key');
     expect(model2.doStream).not.toHaveBeenCalled();
   });
+
+  describe('AbortError handling', () => {
+    it('should handle AbortError without retrying to next model', async () => {
+      const model1 = createAbortingMemorySafeMockModel('model1', 1); // Aborts after first chunk
+      const model2 = createMemorySafeMockModel('model2');
+      const onError = vi.fn();
+
+      const fallback = createFallback({
+        models: [model1, model2],
+        onError,
+      });
+
+      const options: LanguageModelV1CallOptions = {
+        inputFormat: 'prompt',
+        prompt: [{ role: 'user', content: [{ type: 'text', text: 'Test prompt' }] }],
+        mode: { type: 'regular' },
+      };
+
+      const result = await fallback.doStream(options);
+      const reader = result.stream.getReader();
+
+      // Read first chunk successfully
+      const firstChunk = await reader.read();
+      expect(firstChunk.done).toBe(false);
+      expect(firstChunk.value).toEqual({
+        type: 'text-delta',
+        textDelta: 'Stream chunk 1 from model1',
+      });
+
+      // Next read should complete without error (AbortError is handled gracefully)
+      const secondRead = await reader.read();
+      expect(secondRead.done).toBe(true);
+
+      // Should not have called onError since AbortError is intentional
+      expect(onError).not.toHaveBeenCalled();
+
+      // Should not have tried the second model
+      expect(model2.doStream).not.toHaveBeenCalled();
+    });
+
+    it('should handle AbortError before any output', async () => {
+      const model1 = createAbortingMemorySafeMockModel('model1', 0); // Aborts immediately
+      const model2 = createMemorySafeMockModel('model2');
+
+      const fallback = createFallback({ models: [model1, model2] });
+
+      const options: LanguageModelV1CallOptions = {
+        inputFormat: 'prompt',
+        prompt: [{ role: 'user', content: [{ type: 'text', text: 'Test prompt' }] }],
+        mode: { type: 'regular' },
+      };
+
+      const result = await fallback.doStream(options);
+      const reader = result.stream.getReader();
+
+      // First read should complete without error
+      const firstRead = await reader.read();
+      expect(firstRead.done).toBe(true);
+
+      // Should not have tried the second model (abort is intentional)
+      expect(model2.doStream).not.toHaveBeenCalled();
+    });
+
+    it('should not retry on AbortError even with retryAfterOutput enabled', async () => {
+      const model1 = createAbortingMemorySafeMockModel('model1', 2); // Aborts after 2 chunks
+      const model2 = createMemorySafeMockModel('model2');
+
+      const fallback = createFallback({
+        models: [model1, model2],
+        retryAfterOutput: true, // Even with this enabled, AbortError should not retry
+      });
+
+      const options: LanguageModelV1CallOptions = {
+        inputFormat: 'prompt',
+        prompt: [{ role: 'user', content: [{ type: 'text', text: 'Test prompt' }] }],
+        mode: { type: 'regular' },
+      };
+
+      const result = await fallback.doStream(options);
+      const reader = result.stream.getReader();
+
+      // Read chunks successfully
+      const chunk1 = await reader.read();
+      expect(chunk1.value).toEqual({
+        type: 'text-delta',
+        textDelta: 'Stream chunk 1 from model1',
+      });
+
+      const chunk2 = await reader.read();
+      expect(chunk2.value).toEqual({
+        type: 'text-delta',
+        textDelta: 'Stream chunk 2 from model1',
+      });
+
+      // Next read should complete without error
+      const finalRead = await reader.read();
+      expect(finalRead.done).toBe(true);
+
+      // Should not have tried model2 even with retryAfterOutput
+      expect(model2.doStream).not.toHaveBeenCalled();
+    });
+
+    it('should not cause "Controller is already closed" error on AbortError', async () => {
+      // This test specifically validates the fix for the controller closed issue
+      const model1 = createAbortingMemorySafeMockModel('model1', 1);
+      const model2 = createMemorySafeMockModel('model2');
+
+      const fallback = createFallback({
+        models: [model1, model2],
+        retryAfterOutput: true,
+      });
+
+      const options: LanguageModelV1CallOptions = {
+        inputFormat: 'prompt',
+        prompt: [{ role: 'user', content: [{ type: 'text', text: 'Test prompt' }] }],
+        mode: { type: 'regular' },
+      };
+
+      // This should not throw "Controller is already closed" error
+      const result = await fallback.doStream(options);
+      const reader = result.stream.getReader();
+
+      let errorThrown: Error | null = null;
+      const chunks: any[] = [];
+
+      try {
+        while (true) {
+          const { done, value } = await reader.read();
+          if (done) break;
+          chunks.push(value);
+        }
+      } catch (error) {
+        errorThrown = error as Error;
+      }
+
+      // Should have successfully read one chunk before abort
+      expect(chunks).toHaveLength(1);
+
+      // Should not have thrown any error
+      expect(errorThrown).toBeNull();
+
+      // Should not have tried to fallback to model2
+      expect(model2.doStream).not.toHaveBeenCalled();
+    });
+  });
 });
diff --git a/packages/ai/src/utils/models/ai-fallback-streaming.test.ts b/packages/ai/src/utils/models/ai-fallback-streaming.test.ts
index faf1eaf22..df0b0e0c5 100644
--- a/packages/ai/src/utils/models/ai-fallback-streaming.test.ts
+++ b/packages/ai/src/utils/models/ai-fallback-streaming.test.ts
@@ -99,6 +99,52 @@ function createFailingStreamModel(id: string, errorAfterChunks = 1): LanguageMod
   return mockModel;
 }
 
+// Helper to create a model that throws AbortError during streaming
+function createAbortingStreamModel(id: string, abortAfterChunks = 1): LanguageModelV1 {
+  const mockModel: LanguageModelV1 = {
+    specificationVersion: 'v1' as const,
+    modelId: id,
+    provider: `provider-${id}`,
+    defaultObjectGenerationMode: undefined,
+
+    doGenerate: vi.fn(),
+
+    doStream: vi.fn().mockImplementation(async () => {
+      const chunks: LanguageModelV1StreamPart[] = [
+        { type: 'text-delta', textDelta: `Stream from ${id} before abort` },
+        { type: 'text-delta', textDelta: ' more text' },
+        { type: 'finish', finishReason: 'stop', usage: { promptTokens: 10, completionTokens: 20 } },
+      ];
+
+      const stream = new ReadableStream<LanguageModelV1StreamPart>({
+        start(controller) {
+          let chunkCount = 0;
+          // Enqueue chunks up to the abort point
+          for (const chunk of chunks) {
+            if (chunkCount >= abortAfterChunks) {
+              // Simulate an AbortError
+              const abortError = new Error('The operation was aborted');
+              abortError.name = 'AbortError';
+              setTimeout(() => controller.error(abortError), 0);
+              return;
+            }
+            controller.enqueue(chunk);
+            chunkCount++;
+          }
+          controller.close();
+        },
+      });
+
+      return {
+        stream,
+        rawCall: { rawPrompt: 'test', rawSettings: {} },
+      };
+    }),
+  };
+
+  return mockModel;
+}
+
 // NOTE: These streaming tests are temporarily disabled due to memory issues
 // with ReadableStream in the test environment. See ai-fallback-memory-safe.test.ts
 // for alternative streaming tests that avoid memory issues.
@@ -276,6 +322,126 @@ describe.skip('FallbackModel - Streaming', () => {
       });
     });
 
+    describe('abort error handling', () => {
+      it('should handle AbortError without retrying or causing controller closed error', async () => {
+        const model1 = createAbortingStreamModel('model1', 1); // Aborts after first chunk
+        const model2 = createMockModel('model2');
+        const onError = vi.fn();
+        const fallback = createFallback({
+          models: [model1, model2],
+          onError,
+        });
+
+        const options: LanguageModelV1CallOptions = {
+          inputFormat: 'prompt',
+          prompt: [{ role: 'user', content: [{ type: 'text', text: 'Test prompt' }] }],
+          mode: { type: 'regular' },
+        };
+
+        const result = await fallback.doStream(options);
+        const reader = result.stream.getReader();
+        const chunks: LanguageModelV1StreamPart[] = [];
+        let errorThrown: Error | null = null;
+
+        try {
+          while (true) {
+            const { done, value } = await reader.read();
+            if (done) break;
+            chunks.push(value);
+          }
+        } catch (error) {
+          errorThrown = error as Error;
+        }
+
+        // Should have received the chunk before the abort
+        expect(chunks).toHaveLength(1);
+        expect(chunks[0]).toEqual({
+          type: 'text-delta',
+          textDelta: 'Stream from model1 before abort',
+        });
+
+        // Should not have called onError since AbortError is intentional
+        expect(onError).not.toHaveBeenCalled();
+
+        // Should not have tried the second model
+        expect(model2.doStream).not.toHaveBeenCalled();
+
+        // Stream should have ended cleanly without throwing
+        expect(errorThrown).toBeNull();
+      });
+
+      it('should handle AbortError before any output', async () => {
+        const model1 = createAbortingStreamModel('model1', 0); // Aborts immediately
+        const model2 = createMockModel('model2');
+        const fallback = createFallback({ models: [model1, model2] });
+
+        const options: LanguageModelV1CallOptions = {
+          inputFormat: 'prompt',
+          prompt: [{ role: 'user', content: [{ type: 'text', text: 'Test prompt' }] }],
+          mode: { type: 'regular' },
+        };
+
+        const result = await fallback.doStream(options);
+        const reader = result.stream.getReader();
+        const chunks: LanguageModelV1StreamPart[] = [];
+        let errorThrown: Error | null = null;
+
+        try {
+          while (true) {
+            const { done, value } = await reader.read();
+            if (done) break;
+            chunks.push(value);
+          }
+        } catch (error) {
+          errorThrown = error as Error;
+        }
+
+        // Should not have received any chunks
+        expect(chunks).toHaveLength(0);
+
+        // Should not have tried the second model (abort is intentional)
+        expect(model2.doStream).not.toHaveBeenCalled();
+
+        // Stream should have ended cleanly without throwing
+        expect(errorThrown).toBeNull();
+      });
+
+      it('should handle AbortError with retryAfterOutput enabled', async () => {
+        const model1 = createAbortingStreamModel('model1', 1); // Aborts after first chunk
+        const model2 = createMockModel('model2');
+        const fallback = createFallback({
+          models: [model1, model2],
+          retryAfterOutput: true, // Even with this enabled, AbortError should not retry
+        });
+
+        const options: LanguageModelV1CallOptions = {
+          inputFormat: 'prompt',
+          prompt: [{ role: 'user', content: [{ type: 'text', text: 'Test prompt' }] }],
+          mode: { type: 'regular' },
+        };
+
+        const result = await fallback.doStream(options);
+        const reader = result.stream.getReader();
+        const chunks: LanguageModelV1StreamPart[] = [];
+
+        while (true) {
+          const { done, value } = await reader.read();
+          if (done) break;
+          chunks.push(value);
+        }
+
+        // Should only have chunks from model1 before abort
+        expect(chunks).toHaveLength(1);
+        expect(chunks[0]).toEqual({
+          type: 'text-delta',
+          textDelta: 'Stream from model1 before abort',
+        });
+
+        // Should not have tried model2 even with retryAfterOutput
+        expect(model2.doStream).not.toHaveBeenCalled();
+      });
+    });
+
     describe('stream retry with status codes', () => {
       it('should retry streaming on retryable status code', async () => {
         const error = Object.assign(new Error('Rate limited'), { statusCode: 429 });
diff --git a/packages/ai/src/utils/models/ai-fallback.ts b/packages/ai/src/utils/models/ai-fallback.ts
index b619121bd..1bb4d0471 100644
--- a/packages/ai/src/utils/models/ai-fallback.ts
+++ b/packages/ai/src/utils/models/ai-fallback.ts
@@ -191,9 +191,24 @@ export class FallbackModel implements LanguageModelV1 {
             }
             controller.close();
           } catch (error) {
+            // Check if this is an intentional abort (not a retry scenario)
+            if (error instanceof Error && error.name === 'AbortError') {
+              // Don't retry on intentional aborts, just close the controller
+              controller.close();
+              return;
+            }
+
             if (self.settings.onError) {
               await self.settings.onError(error as Error, self.modelId);
             }
+
+            // Check if we should retry this error
+            const shouldRetry = self.settings.shouldRetryThisError || defaultShouldRetryThisError;
+            if (!shouldRetry(error as Error)) {
+              controller.error(error);
+              return;
+            }
+
             if (
               (!hasStreamedAny || self.retryAfterOutput) &&
               streamRetryAttempts < maxStreamRetries
diff --git a/packages/ai/src/utils/models/haiku-3-5.ts b/packages/ai/src/utils/models/haiku-3-5.ts
index 14b215519..dbab6b9b4 100644
--- a/packages/ai/src/utils/models/haiku-3-5.ts
+++ b/packages/ai/src/utils/models/haiku-3-5.ts
@@ -55,13 +55,14 @@ function initializeHaiku35() {
 
 // Export a proxy that initializes on first use
 export const Haiku35 = new Proxy({} as ReturnType<typeof createFallback>, {
-  get(_target, prop, receiver) {
+  get(_target, prop) {
     const instance = initializeHaiku35();
-    return Reflect.get(instance, prop, receiver);
+    // Direct property access without receiver to avoid proxy conflicts
+    return instance[prop as keyof typeof instance];
   },
   has(_target, prop) {
     const instance = initializeHaiku35();
-    return Reflect.has(instance, prop);
+    return prop in instance;
   },
   ownKeys(_target) {
     const instance = initializeHaiku35();
diff --git a/packages/ai/src/utils/models/sonnet-4.ts b/packages/ai/src/utils/models/sonnet-4.ts
index 536b3033e..03bb8ecd3 100644
--- a/packages/ai/src/utils/models/sonnet-4.ts
+++ b/packages/ai/src/utils/models/sonnet-4.ts
@@ -55,13 +55,14 @@ function initializeSonnet4() {
 
 // Export a proxy that initializes on first use
 export const Sonnet4 = new Proxy({} as ReturnType<typeof createFallback>, {
-  get(_target, prop, receiver) {
+  get(_target, prop) {
     const instance = initializeSonnet4();
-    return Reflect.get(instance, prop, receiver);
+    // Direct property access without receiver to avoid proxy conflicts
+    return instance[prop as keyof typeof instance];
   },
   has(_target, prop) {
     const instance = initializeSonnet4();
-    return Reflect.has(instance, prop);
+    return prop in instance;
   },
   ownKeys(_target) {
     const instance = initializeSonnet4();