diff --git a/litellm/litellm_core_utils/prompt_templates/factory.py b/litellm/litellm_core_utils/prompt_templates/factory.py
index 4320f756454..89a708077f3 100644
--- a/litellm/litellm_core_utils/prompt_templates/factory.py
+++ b/litellm/litellm_core_utils/prompt_templates/factory.py
@@ -45,6 +45,7 @@
     infer_content_type_from_url_and_content,
     is_non_content_values_set,
     parse_tool_call_arguments,
+    unpack_defs,
 )
 from .image_handling import convert_url_to_base64
 
@@ -1462,6 +1463,56 @@ def convert_to_gemini_tool_call_invoke(
         )
 
 
+def _clean_refs_for_gemini(obj: Any) -> None:
+    """
+    Recursively clean $defs, $ref, and definitions from a dict for Gemini compatibility.
+    
+    Gemini rejects:
+    - $defs sections (even after $ref has been inlined)
+    - Any remaining $ref (circular refs, external URLs)
+    
+    This function:
+    1. Removes all $defs/definitions keys
+    2. Replaces any remaining $ref with a placeholder object
+    """
+    if isinstance(obj, dict):
+        # Remove $defs and definitions at this level
+        obj.pop("$defs", None)
+        obj.pop("definitions", None)
+        
+        # Check for and handle remaining $ref (circular or external)
+        if "$ref" in obj:
+            ref_value = obj.pop("$ref")
+            # Replace with a generic object type as placeholder
+            obj["type"] = "object"
+            obj["description"] = f"(schema reference: {ref_value})"
+        
+        # Recurse into values
+        for value in obj.values():
+            _clean_refs_for_gemini(value)
+    elif isinstance(obj, list):
+        for item in obj:
+            _clean_refs_for_gemini(item)
+
+
+def _prepare_response_for_gemini(response_data: dict) -> dict:
+    """
+    Prepare a tool response dict for Gemini by inlining $ref and removing $defs.
+    
+    Gemini rejects JSON schemas with $defs/$ref in function_response content.
+    This function applies unpack_defs to inline references, then cleans up
+    any remaining $defs sections and unresolved $refs (circular or external).
+    
+    Returns a new dict (does not mutate the input).
+    """
+    import copy
+
+    result = copy.deepcopy(response_data)
+    unpack_defs(result, {})
+    _clean_refs_for_gemini(result)
+    return result
+
+
 def convert_to_gemini_tool_call_result(
     message: Union[ChatCompletionToolMessage, ChatCompletionFunctionMessage],
     last_message_with_tool_calls: Optional[dict],
@@ -1570,6 +1621,11 @@ def convert_to_gemini_tool_call_result(
         # Not valid JSON, wrap in content field
         response_data = {"content": content_str}
 
+    # Gemini rejects JSON schemas with $defs/$ref in function_response content.
+    # Inline $refs and clean up for Gemini compatibility.
+    if isinstance(response_data, dict):
+        response_data = _prepare_response_for_gemini(response_data)
+
     # We can't determine from openai message format whether it's a successful or
     # error call result so default to the successful result template
     _function_response = VertexFunctionResponse(