diff --git a/packages/core/src/utils/fetch.test.ts b/packages/core/src/utils/fetch.test.ts
index e4da21ffa0..1f56f7af19 100644
--- a/packages/core/src/utils/fetch.test.ts
+++ b/packages/core/src/utils/fetch.test.ts
@@ -209,7 +209,7 @@ describe('fetch utils', () => {
       expect(ProxyAgent).toHaveBeenCalledWith({
         uri: proxyUrl,
         headersTimeout: 45773134,
-        bodyTimeout: 45773134,
+        bodyTimeout: 300000,
       });
       expect(setGlobalDispatcher).toHaveBeenCalled();
     });
diff --git a/packages/core/src/utils/fetch.ts b/packages/core/src/utils/fetch.ts
index 755875ff75..8c2fddc868 100644
--- a/packages/core/src/utils/fetch.ts
+++ b/packages/core/src/utils/fetch.ts
@@ -28,14 +28,15 @@ export class PrivateIpError extends Error {
   }
 }
 
-let defaultTimeout = 300000; // 5 minutes
+let defaultHeadersTimeout = 60000; // 60 seconds
+const defaultBodyTimeout = 300000; // 5 minutes
 let currentProxy: string | undefined = undefined;
 
 // Configure default global dispatcher with higher timeouts
 setGlobalDispatcher(
   new Agent({
-    headersTimeout: defaultTimeout,
-    bodyTimeout: defaultTimeout,
+    headersTimeout: defaultHeadersTimeout,
+    bodyTimeout: defaultBodyTimeout,
   }),
 );
 
@@ -45,14 +46,15 @@ export function updateGlobalFetchTimeouts(timeoutMs: number) {
       `Invalid timeout value: ${timeoutMs}. Must be a positive finite number.`,
     );
   }
-  defaultTimeout = timeoutMs;
+  defaultHeadersTimeout = timeoutMs;
+  // We keep body timeout high for LLM streaming responses
   if (currentProxy) {
     setGlobalProxy(currentProxy);
   } else {
     setGlobalDispatcher(
       new Agent({
-        headersTimeout: defaultTimeout,
-        bodyTimeout: defaultTimeout,
+        headersTimeout: defaultHeadersTimeout,
+        bodyTimeout: defaultBodyTimeout,
       }),
     );
   }
@@ -214,8 +216,8 @@ export function setGlobalProxy(proxy: string) {
   setGlobalDispatcher(
     new ProxyAgent({
       uri: proxy,
-      headersTimeout: defaultTimeout,
-      bodyTimeout: defaultTimeout,
+      headersTimeout: defaultHeadersTimeout,
+      bodyTimeout: defaultBodyTimeout,
     }),
   );
 }
diff --git a/packages/core/src/utils/retry.test.ts b/packages/core/src/utils/retry.test.ts
index 29758e6e92..290f14eadb 100644
--- a/packages/core/src/utils/retry.test.ts
+++ b/packages/core/src/utils/retry.test.ts
@@ -451,6 +451,25 @@ describe('retryWithBackoff', () => {
       });
       await vi.runAllTimersAsync();
       await expect(promise).resolves.toBe('success');
+      expect(mockFn).toHaveBeenCalledTimes(2);
+    });
+
+    it('should retry on undici timeout error codes (UND_ERR_HEADERS_TIMEOUT)', async () => {
+      const error = new Error('Headers timeout error');
+      (error as any).code = 'UND_ERR_HEADERS_TIMEOUT';
+      const mockFn = vi
+        .fn()
+        .mockRejectedValueOnce(error)
+        .mockResolvedValue('success');
+
+      const promise = retryWithBackoff(mockFn, {
+        retryFetchErrors: false,
+        initialDelayMs: 1,
+        maxDelayMs: 1,
+      });
+      await vi.runAllTimersAsync();
+      await expect(promise).resolves.toBe('success');
+      expect(mockFn).toHaveBeenCalledTimes(2);
     });
 
     it('should retry on SSL error code (ERR_SSL_SSLV3_ALERT_BAD_RECORD_MAC)', async () => {
diff --git a/packages/core/src/utils/retry.ts b/packages/core/src/utils/retry.ts
index 5b3ac4f113..9478d0f2c2 100644
--- a/packages/core/src/utils/retry.ts
+++ b/packages/core/src/utils/retry.ts
@@ -55,6 +55,9 @@ const RETRYABLE_NETWORK_CODES = [
   'ECONNREFUSED',
   'ERR_SSL_WRONG_VERSION_NUMBER',
   'EPROTO', // Generic protocol error (often SSL-related)
+  'UND_ERR_HEADERS_TIMEOUT',
+  'UND_ERR_BODY_TIMEOUT',
+  'UND_ERR_CONNECT_TIMEOUT',
 ];
 
 // Node.js builds SSL error codes by prepending ERR_SSL_ to the uppercased