diff --git a/pydantic_ai_slim/pydantic_ai/_tool_manager.py b/pydantic_ai_slim/pydantic_ai/_tool_manager.py
index 9a9f93e1ff..8369d76913 100644
--- a/pydantic_ai_slim/pydantic_ai/_tool_manager.py
+++ b/pydantic_ai_slim/pydantic_ai/_tool_manager.py
@@ -14,7 +14,7 @@
 from . import messages as _messages
 from ._instrumentation import InstrumentationNames
 from ._run_context import AgentDepsT, RunContext
-from .exceptions import ModelRetry, ToolRetryError, UnexpectedModelBehavior
+from .exceptions import ModelRetry, ToolRetryError, UnexpectedModelBehavior, UnknownToolNameRetry
 from .messages import ToolCallPart
 from .tools import ToolDefinition
 from .toolsets.abstract import AbstractToolset, ToolsetTool
@@ -35,6 +35,8 @@ class ToolManager(Generic[AgentDepsT]):
     """The cached tools for this run step."""
     failed_tools: set[str] = field(default_factory=set)
     """Names of tools that failed in this run step."""
+    max_unknown_tool_retries: int = 1
+    """Maximum number of times to retry after an unknown tool is proposed"""
 
     @classmethod
     @contextmanager
@@ -146,7 +148,7 @@ async def _call_tool(
                     msg = f'Available tools: {", ".join(f"{name!r}" for name in self.tools.keys())}'
                 else:
                     msg = 'No tools available.'
-                raise ModelRetry(f'Unknown tool name: {name!r}. {msg}')
+                raise UnknownToolNameRetry(name, msg)
 
             if tool.tool_def.kind == 'external':
                 raise RuntimeError('External tools cannot be called')
@@ -176,7 +178,10 @@ async def _call_tool(
 
             return result
         except (ValidationError, ModelRetry) as e:
-            max_retries = tool.max_retries if tool is not None else 1
+            if isinstance(e, UnknownToolNameRetry):
+                max_retries = self.max_unknown_tool_retries
+            else:
+                max_retries = tool.max_retries if tool is not None else 1
             current_retry = self.ctx.retries.get(name, 0)
 
             if current_retry == max_retries:
diff --git a/pydantic_ai_slim/pydantic_ai/agent/__init__.py b/pydantic_ai_slim/pydantic_ai/agent/__init__.py
index c8208ac9e6..9234976355 100644
--- a/pydantic_ai_slim/pydantic_ai/agent/__init__.py
+++ b/pydantic_ai_slim/pydantic_ai/agent/__init__.py
@@ -147,6 +147,7 @@ class Agent(AbstractAgent[AgentDepsT, OutputDataT]):
     _prepare_output_tools: ToolsPrepareFunc[AgentDepsT] | None = dataclasses.field(repr=False)
     _max_result_retries: int = dataclasses.field(repr=False)
     _max_tool_retries: int = dataclasses.field(repr=False)
+    _max_unknown_tool_retries: int = dataclasses.field(repr=False)
     _validation_context: Any | Callable[[RunContext[AgentDepsT]], Any] = dataclasses.field(repr=False)
 
     _event_stream_handler: EventStreamHandler[AgentDepsT] | None = dataclasses.field(repr=False)
@@ -318,6 +319,7 @@ def __init__(
 
         self._max_result_retries = output_retries if output_retries is not None else retries
         self._max_tool_retries = retries
+        self._max_unknown_tool_retries = retries
 
         self._validation_context = validation_context
 
@@ -569,7 +571,7 @@ async def main():
                 output_toolset.max_retries = self._max_result_retries
                 output_toolset.output_validators = output_validators
         toolset = self._get_toolset(output_toolset=output_toolset, additional_toolsets=toolsets)
-        tool_manager = ToolManager[AgentDepsT](toolset)
+        tool_manager = ToolManager[AgentDepsT](toolset, max_unknown_tool_retries=self._max_unknown_tool_retries)
 
         # Build the graph
         graph = _agent_graph.build_agent_graph(self.name, self._deps_type, output_type_)
diff --git a/pydantic_ai_slim/pydantic_ai/exceptions.py b/pydantic_ai_slim/pydantic_ai/exceptions.py
index 0b4500502c..7d3cd2f478 100644
--- a/pydantic_ai_slim/pydantic_ai/exceptions.py
+++ b/pydantic_ai_slim/pydantic_ai/exceptions.py
@@ -67,6 +67,13 @@ def __get_pydantic_core_schema__(cls, _: Any, __: Any) -> core_schema.CoreSchema
         )
 
 
+class UnknownToolNameRetry(ModelRetry):
+    """Exception to raise when a tool name is not recognized."""
+
+    def __init__(self, name: str, msg: str):
+        super().__init__(f'Unknown tool name: {name!r}. {msg}')
+
+
 class CallDeferred(Exception):
     """Exception to raise when a tool call should be deferred.