diff --git a/crates/goose/src/model.rs b/crates/goose/src/model.rs
index 9a9f8eb546dc..452ce71ae297 100644
--- a/crates/goose/src/model.rs
+++ b/crates/goose/src/model.rs
@@ -96,6 +96,7 @@ impl ModelConfig {
     ) -> Result<Self, ConfigError> {
         let context_limit = Self::parse_context_limit(&model_name, None, context_env_var)?;
         let temperature = Self::parse_temperature()?;
+        let max_tokens = Self::parse_max_tokens()?;
         let toolshim = Self::parse_toolshim()?;
         let toolshim_model = Self::parse_toolshim_model()?;
 
@@ -103,7 +104,7 @@ impl ModelConfig {
             model_name,
             context_limit,
             temperature,
-            max_tokens: None,
+            max_tokens,
             toolshim,
             toolshim_model,
             fast_model: None,
@@ -184,6 +185,26 @@ impl ModelConfig {
         }
     }
 
+    fn parse_max_tokens() -> Result<Option<i32>, ConfigError> {
+        match crate::config::Config::global().get_param::<i32>("GOOSE_MAX_TOKENS") {
+            Ok(tokens) => {
+                if tokens <= 0 {
+                    return Err(ConfigError::InvalidRange(
+                        "goose_max_tokens".to_string(),
+                        "must be greater than 0".to_string(),
+                    ));
+                }
+                Ok(Some(tokens))
+            }
+            Err(crate::config::ConfigError::NotFound(_)) => Ok(None),
+            Err(e) => Err(ConfigError::InvalidValue(
+                "goose_max_tokens".to_string(),
+                String::new(),
+                e.to_string(),
+            )),
+        }
+    }
+
     fn parse_toolshim() -> Result<bool, ConfigError> {
         if let Ok(val) = std::env::var("GOOSE_TOOLSHIM") {
             match val.to_lowercase().as_str() {
@@ -296,3 +317,72 @@ impl ModelConfig {
             .unwrap_or_else(|_| panic!("Failed to create model config for {}", model_name))
     }
 }
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+
+    #[test]
+    fn test_parse_max_tokens_valid() {
+        let _guard = env_lock::lock_env([("GOOSE_MAX_TOKENS", Some("4096"))]);
+        let result = ModelConfig::parse_max_tokens().unwrap();
+        assert_eq!(result, Some(4096));
+    }
+
+    #[test]
+    fn test_parse_max_tokens_not_set() {
+        let _guard = env_lock::lock_env([("GOOSE_MAX_TOKENS", None::<&str>)]);
+        let result = ModelConfig::parse_max_tokens().unwrap();
+        assert_eq!(result, None);
+    }
+
+    #[test]
+    fn test_parse_max_tokens_invalid_string() {
+        let _guard = env_lock::lock_env([("GOOSE_MAX_TOKENS", Some("not_a_number"))]);
+        let result = ModelConfig::parse_max_tokens();
+        assert!(result.is_err());
+        assert!(matches!(result.unwrap_err(), ConfigError::InvalidValue(..)));
+    }
+
+    #[test]
+    fn test_parse_max_tokens_zero() {
+        let _guard = env_lock::lock_env([("GOOSE_MAX_TOKENS", Some("0"))]);
+        let result = ModelConfig::parse_max_tokens();
+        assert!(result.is_err());
+        assert!(matches!(result.unwrap_err(), ConfigError::InvalidRange(..)));
+    }
+
+    #[test]
+    fn test_parse_max_tokens_negative() {
+        let _guard = env_lock::lock_env([("GOOSE_MAX_TOKENS", Some("-100"))]);
+        let result = ModelConfig::parse_max_tokens();
+        assert!(result.is_err());
+        assert!(matches!(result.unwrap_err(), ConfigError::InvalidRange(..)));
+    }
+
+    #[test]
+    fn test_model_config_with_max_tokens_env() {
+        let _guard = env_lock::lock_env([
+            ("GOOSE_MAX_TOKENS", Some("8192")),
+            ("GOOSE_TEMPERATURE", None::<&str>),
+            ("GOOSE_CONTEXT_LIMIT", None::<&str>),
+            ("GOOSE_TOOLSHIM", None::<&str>),
+            ("GOOSE_TOOLSHIM_OLLAMA_MODEL", None::<&str>),
+        ]);
+        let config = ModelConfig::new("test-model").unwrap();
+        assert_eq!(config.max_tokens, Some(8192));
+    }
+
+    #[test]
+    fn test_model_config_without_max_tokens_env() {
+        let _guard = env_lock::lock_env([
+            ("GOOSE_MAX_TOKENS", None::<&str>),
+            ("GOOSE_TEMPERATURE", None::<&str>),
+            ("GOOSE_CONTEXT_LIMIT", None::<&str>),
+            ("GOOSE_TOOLSHIM", None::<&str>),
+            ("GOOSE_TOOLSHIM_OLLAMA_MODEL", None::<&str>),
+        ]);
+        let config = ModelConfig::new("test-model").unwrap();
+        assert_eq!(config.max_tokens, None);
+    }
+}