diff --git a/CHANGELOG.md b/CHANGELOG.md
index a116f2b4d..831690d21 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -8,6 +8,13 @@ Newest first. `Unreleased` is what is on `main` and not yet tagged.
 
 ## Unreleased
 
+### A vendor that broke no longer reads as a refusal to a Bot running its own loop
+
+When a Bot that calls tools back from its own process, such as the LangGraph Bots, called a tool
+whose vendor failed, or hit a fault in this deployment, the answer began "Refused." like a boundary
+holding. The conversation drew it as blocked and the model read it as not allowed, while the audit
+trail recorded a failed call. Only a refusal is marked now. A vendor that broke reads "That tool could
+not be called: …", the way it already did for a Bot running here, and a refusal reads as before.
 ### A Bot running its own loop is told a vendor's error is the vendor's
 
 A vendor that says no by answering with an error, the way an MCP server refuses a call, reached a Bot
diff --git a/server/src/app.ts b/server/src/app.ts
index 78ce54848..44a255fba 100644
--- a/server/src/app.ts
+++ b/server/src/app.ts
@@ -59,7 +59,11 @@ import type { OnboardingStore } from "./people/onboarding";
 import { MAX_PAGE, type PeopleStore } from "./people/store";
 import type { ComposioBroker } from "./plugins/broker";
 import { createPluginRoutes } from "./plugins/routes";
-import { isDeploymentFault, type PluginStore } from "./plugins/store";
+import {
+  isDeploymentFault,
+  PluginRefusedError,
+  type PluginStore,
+} from "./plugins/store";
 import { REFUSAL_MARKER, vendorAnswer } from "./plugins/tools";
 import { createRoutineRoutes, type RoutineStore } from "./routines/routes";
 import type { RoutineRunner } from "./routines/runner";
@@ -1414,13 +1418,24 @@ export function createApp(
          * sentence is allowed to contain. Today the two overlap on a query failure and this arm can
          * only be reached by something neither recognises — which is exactly the state the last two
          * findings in this area were found in, one predicate apart from a leak.
+         *
+         * AND ONLY A REFUSAL CARRIES THE MARKER, which is the in-process door's third question. The
+         * transcript draws an answer that starts with it as a boundary holding, and the model reads
+         * "Refused." as "not allowed". `callTool` throws `PluginRefusedError` for that, and rethrows
+         * a vendor that broke after recording `mcp.call_failed`; marking every throw drew a vendor
+         * outage, or a fault of this deployment's own, as a policy refusing.
          */
+        if (error instanceof PluginRefusedError) {
+          return context.json({
+            text: `${REFUSAL_MARKER} ${withoutStatement(error)}`,
+            isError: true,
+          });
+        }
         return context.json({
-          text: `${REFUSAL_MARKER} ${
+          text:
             error instanceof Error && !isDeploymentFault(error)
-              ? withoutStatement(error)
-              : "That tool could not be called."
-          }`,
+              ? `That tool could not be called: ${withoutStatement(error)}`
+              : "That tool could not be called.",
           isError: true,
         });
       }
diff --git a/server/tests/agent-callback-token.test.ts b/server/tests/agent-callback-token.test.ts
index 64b1190f2..47d01969b 100644
--- a/server/tests/agent-callback-token.test.ts
+++ b/server/tests/agent-callback-token.test.ts
@@ -472,6 +472,67 @@ describe("the tool-call route a callback token guards", () => {
     expect(text).toContain("That tool could not be called.");
   });
 
+  /**
+   * ONLY A REFUSAL IS MARKED AS ONE, because the marker is what the transcript draws.
+   *
+   * `chat-transcript.tsx` labels a tool result that starts with `REFUSAL_MARKER` as blocked, and the
+   * model reads "Refused." as "not allowed". `callTool` throws `PluginRefusedError` for a boundary
+   * holding, and rethrows a vendor that broke after recording `mcp.call_failed`. The in-process door
+   * keeps the two apart — "one means 'not allowed', the other means 'it broke'" — and this route
+   * put the marker in front of every throw, so on a Bot running its own loop a vendor outage and a
+   * database fault were both drawn as a policy refusal. Asked of both doors with the same store.
+   */
+  test("a throw is marked as a refusal only when it is one, the way the in-process door marks it", async () => {
+    const { grantedTools, REFUSAL_MARKER } = await import(
+      "../src/plugins/tools"
+    );
+    const throws: [string, unknown][] = [
+      ["vendor failure", new Error("fetch failed")],
+      ["deployment fault", queryFailure()],
+      [
+        "refusal",
+        new PluginRefusedError(
+          "No Bot holds linear/LINEAR_CREATE_ISSUE, so nothing was called.",
+          null,
+        ),
+      ],
+    ];
+
+    const seen: string[] = [];
+    for (const [kind, thrown] of throws) {
+      const callback = await toolResult(thrown);
+      const [tool] = await grantedTools({
+        store: {
+          callTool: async () => {
+            throw thrown;
+          },
+          listForAgent: async () => ({
+            tools: [
+              {
+                toolName: "mcp__linear__LINEAR_CREATE_ISSUE",
+                ref: "linear/LINEAR_CREATE_ISSUE",
+                description: "Create an issue.",
+                inputSchema: { type: "object" },
+              },
+            ],
+          }),
+        } as unknown as PluginStore,
+        botId: "knowledge",
+        actorId: "usr_7",
+      });
+      const inProcess = await tool?.execute({});
+      seen.push(
+        `${kind}: marked ${callback.startsWith(REFUSAL_MARKER)}, same as in-process ${callback === inProcess}`,
+      );
+    }
+
+    expect(seen).toEqual([
+      "vendor failure: marked false, same as in-process true",
+      "deployment fault: marked false, same as in-process true",
+      "refusal: marked true, same as in-process true",
+    ]);
+  });
+
   /**
    * AND THE REFUSAL STILL SPEAKS, because a guard that silences everything is not the fix.
    *