diff --git a/packages/core/src/code_assist/server.test.ts b/packages/core/src/code_assist/server.test.ts
index f5110b27d0..d79526d1c3 100644
--- a/packages/core/src/code_assist/server.test.ts
+++ b/packages/core/src/code_assist/server.test.ts
@@ -84,7 +84,6 @@ describe('CodeAssistServer', () => {
         responseType: 'json',
         body: expect.any(String),
         signal: undefined,
-        timeout: 60000,
       }),
     );
 
@@ -405,7 +404,6 @@ describe('CodeAssistServer', () => {
           'Content-Type': 'application/json',
         },
         signal: undefined,
-        timeout: 60000,
       }),
     );
 
diff --git a/packages/core/src/code_assist/server.ts b/packages/core/src/code_assist/server.ts
index a4ec645d41..ff5fb76e07 100644
--- a/packages/core/src/code_assist/server.ts
+++ b/packages/core/src/code_assist/server.ts
@@ -305,7 +305,6 @@ export class CodeAssistServer implements ContentGenerator {
       responseType: 'json',
       body: JSON.stringify(req),
       signal,
-      timeout: 60000,
     });
     return res.data;
   }
@@ -353,7 +352,6 @@ export class CodeAssistServer implements ContentGenerator {
       responseType: 'stream',
       body: JSON.stringify(req),
       signal,
-      timeout: 60000,
     });
 
     return (async function* (): AsyncGenerator<T> {
diff --git a/packages/core/src/core/contentGenerator.ts b/packages/core/src/core/contentGenerator.ts
index af3ec27062..98d8d50020 100644
--- a/packages/core/src/core/contentGenerator.ts
+++ b/packages/core/src/core/contentGenerator.ts
@@ -206,7 +206,7 @@ export async function createContentGenerator(
           'x-gemini-api-privileged-user-id': `${installationId}`,
         };
       }
-      const httpOptions = { headers, timeout: 60000 };
+      const httpOptions = { headers };
 
       const googleGenAI = new GoogleGenAI({
         apiKey: config.apiKey === '' ? undefined : config.apiKey,
diff --git a/packages/core/src/utils/fetch.ts b/packages/core/src/utils/fetch.ts
index 30d583e99f..e0bb1f3378 100644
--- a/packages/core/src/utils/fetch.ts
+++ b/packages/core/src/utils/fetch.ts
@@ -6,7 +6,18 @@
 
 import { getErrorMessage, isNodeError } from './errors.js';
 import { URL } from 'node:url';
-import { ProxyAgent, setGlobalDispatcher } from 'undici';
+import { Agent, ProxyAgent, setGlobalDispatcher } from 'undici';
+
+const DEFAULT_HEADERS_TIMEOUT = 60000; // 60 seconds
+const DEFAULT_BODY_TIMEOUT = 300000; // 5 minutes
+
+// Configure default global dispatcher with higher timeouts
+setGlobalDispatcher(
+  new Agent({
+    headersTimeout: DEFAULT_HEADERS_TIMEOUT,
+    bodyTimeout: DEFAULT_BODY_TIMEOUT,
+  }),
+);
 
 const PRIVATE_IP_RANGES = [
   /^10\./,
@@ -73,5 +84,11 @@ export async function fetchWithTimeout(
 }
 
 export function setGlobalProxy(proxy: string) {
-  setGlobalDispatcher(new ProxyAgent(proxy));
+  setGlobalDispatcher(
+    new ProxyAgent({
+      uri: proxy,
+      headersTimeout: DEFAULT_HEADERS_TIMEOUT,
+      bodyTimeout: DEFAULT_BODY_TIMEOUT,
+    }),
+  );
 }