diff --git a/tests/test_tui_gateway_server.py b/tests/test_tui_gateway_server.py
index 48addce8b2..d196047ea2 100644
--- a/tests/test_tui_gateway_server.py
+++ b/tests/test_tui_gateway_server.py
@@ -9271,6 +9271,83 @@ def test_config_set_model_explicit_provider_skips_broken_default_init(monkeypatc
         server._sessions.pop("sid", None)
 
 
+@pytest.mark.parametrize(
+    "provider_flag", [" --provider custom:new-provider", ""]
+)
+def test_config_set_model_recovers_failed_deferred_resume(monkeypatch, provider_flag):
+    old_ready = threading.Event()
+    old_ready.set()
+    reasoning = {"effort": "high"}
+    old_override = {"model": "old/model", "provider": "removed-provider"}
+    session = _session(
+        agent_ready=old_ready,
+        agent_build_started=True,
+        agent_error="Unknown provider 'removed-provider'",
+        model_override=old_override,
+        resume_runtime_overrides={
+            "model_override": old_override,
+            "provider_override": "removed-provider",
+            "reasoning_config_override": reasoning,
+        },
+    )
+    session["agent"] = None
+    server._sessions["sid"] = session
+    seen = {"build": 0, "persist": 0}
+
+    def fake_apply_model_switch(_sid, current, _value, **_kwargs):
+        current["model_override"] = {
+            "model": "new/model",
+            "provider": "custom:new-provider",
+        }
+        return {
+            "value": "new/model",
+            "warning": "",
+            "confirm_required": False,
+            "scope": "session",
+        }
+
+    def fake_start_agent_build(sid, current):
+        seen["build"] += 1
+        assert sid == "sid"
+        assert current["agent_error"] is None
+        assert current["agent_ready"] is not old_ready
+        assert current.get("agent_build_started") is None
+        overrides = current["resume_runtime_overrides"]
+        assert overrides["model_override"] == current["model_override"]
+        assert overrides["provider_override"] == "custom:new-provider"
+        assert overrides["reasoning_config_override"] == reasoning
+        current["agent"] = types.SimpleNamespace(model="new/model")
+        current["agent_ready"].set()
+
+    monkeypatch.setattr(server, "_apply_model_switch", fake_apply_model_switch)
+    monkeypatch.setattr(server, "_start_agent_build", fake_start_agent_build)
+    monkeypatch.setattr(
+        server,
+        "_persist_live_session_runtime",
+        lambda _session: seen.__setitem__("persist", seen["persist"] + 1),
+    )
+
+    try:
+        resp = server.handle_request(
+            {
+                "id": "1",
+                "method": "config.set",
+                "params": {
+                    "session_id": "sid",
+                    "key": "model",
+                    "value": f"new/model{provider_flag}",
+                },
+            }
+        )
+
+        assert resp["result"]["value"] == "new/model"
+        assert seen == {"build": 1, "persist": 1}
+        assert session["agent_error"] is None
+        assert session["agent"].model == "new/model"
+    finally:
+        server._sessions.pop("sid", None)
+
+
 def test_config_set_model_explicit_provider_surfaces_selected_provider_errors(monkeypatch):
     seen = {"build": 0, "wait": 0}
     session = _session()
diff --git a/tui_gateway/server.py b/tui_gateway/server.py
index ccd7bafd07..0a27a7811a 100644
--- a/tui_gateway/server.py
+++ b/tui_gateway/server.py
@@ -13739,7 +13739,14 @@ def _(rid, params: dict) -> dict:
                     )
                 parsed_flags = parse_model_switch_args(value)
                 explicit_provider = parsed_flags.explicit_provider
-                if session.get("agent") is None and not explicit_provider.strip():
+                failed_agent_init = session.get("agent") is None and bool(
+                    session.get("agent_error")
+                )
+                if (
+                    session.get("agent") is None
+                    and not explicit_provider.strip()
+                    and not failed_agent_init
+                ):
                     session_id = params.get("session_id", "")
                     _start_agent_build(session_id, session)
                     init_err = _wait_agent(session, rid)
@@ -13756,6 +13763,30 @@ def _(rid, params: dict) -> dict:
                     ),
                     parsed_flags=parsed_flags,
                 )
+                if failed_agent_init and not result.get("confirm_required"):
+                    model_override = session.get("model_override")
+                    resume_overrides = session.get("resume_runtime_overrides")
+                    if isinstance(model_override, dict) and isinstance(
+                        resume_overrides, dict
+                    ):
+                        resume_overrides = dict(resume_overrides)
+                        resume_overrides["model_override"] = model_override
+                        if provider := model_override.get("provider"):
+                            resume_overrides["provider_override"] = provider
+                        else:
+                            resume_overrides.pop("provider_override", None)
+                        session["resume_runtime_overrides"] = resume_overrides
+                    session["agent_error"] = None
+                    session["agent_ready"] = threading.Event()
+                    session.pop("agent_build_started", None)
+                    session.pop("_agent_build_thread", None)
+                    _start_agent_build(params.get("session_id", ""), session)
+                    init_err = _wait_agent(session, rid)
+                    if init_err:
+                        return init_err
+                    if session.get("agent") is None:
+                        return _err(rid, 5032, "agent initialization failed")
+                    _persist_live_session_runtime(session)
             else:
                 result = _apply_model_switch(
                     "",