diff --git a/src/Libraries/Microsoft.Extensions.AI.Abstractions/Functions/AIFunctionFactory.cs b/src/Libraries/Microsoft.Extensions.AI.Abstractions/Functions/AIFunctionFactory.cs
index 320df4098a3..e864923883e 100644
--- a/src/Libraries/Microsoft.Extensions.AI.Abstractions/Functions/AIFunctionFactory.cs
+++ b/src/Libraries/Microsoft.Extensions.AI.Abstractions/Functions/AIFunctionFactory.cs
@@ -26,6 +26,7 @@
 #pragma warning disable S2333 // Redundant modifiers should not be used
 #pragma warning disable S3011 // Reflection should not be used to increase accessibility of classes, methods, or fields
 #pragma warning disable SA1202 // Public members should come before private members
+#pragma warning disable SA1203 // Constants should appear before fields
 
 namespace Microsoft.Extensions.AI;
 
@@ -825,6 +826,23 @@ static bool IsAsyncMethod(MethodInfo method)
                     {
                         try
                         {
+                            if (value is string text && IsPotentiallyJson(text))
+                            {
+                                Debug.Assert(typeInfo.Type != typeof(string), "string parameters should not enter this branch.");
+
+                                // Account for the parameter potentially being a JSON string.
+                                // The value is a string but the type is not. Try to deserialize it under the assumption that it's JSON.
+                                // If it's not, we'll fall through to the default path that makes it valid JSON and then tries to deserialize.
+                                try
+                                {
+                                    return JsonSerializer.Deserialize(text, typeInfo);
+                                }
+                                catch (JsonException)
+                                {
+                                    // If the string is not valid JSON, fall through to the round-trip.
+                                }
+                            }
+
                             string json = JsonSerializer.Serialize(value, serializerOptions.GetTypeInfo(value.GetType()));
                             return JsonSerializer.Deserialize(json, typeInfo);
                         }
@@ -1021,6 +1039,35 @@ private record struct DescriptorKey(
             AIJsonSchemaCreateOptions SchemaOptions);
     }
 
+    /// <summary>
+    /// Quickly checks if the specified string is potentially JSON
+    /// by checking if the first non-whitespace characters are valid JSON start tokens.
+    /// </summary>
+    /// <param name="value">The string to check.</param>
+    /// <returns>If <see langword="false"/> then the string is definitely not valid JSON.</returns>
+    private static bool IsPotentiallyJson(string value) => PotentiallyJsonRegex().IsMatch(value);
+#if NET
+    [GeneratedRegex(PotentiallyJsonRegexString, RegexOptions.IgnorePatternWhitespace)]
+    private static partial Regex PotentiallyJsonRegex();
+#else
+    private static Regex PotentiallyJsonRegex() => _potentiallyJsonRegex;
+    private static readonly Regex _potentiallyJsonRegex = new(PotentiallyJsonRegexString, RegexOptions.IgnorePatternWhitespace | RegexOptions.Compiled);
+#endif
+    private const string PotentiallyJsonRegexString = """
+        ^\s*        # Optional whitespace at the start of the string
+           ( null   # null literal
+           | false  # false literal
+           | true   # true literal
+           | \d     # positive number
+           | -\d    # negative number
+           | "      # string
+           | \[     # start array
+           | {      # start object
+           | //     # Start of single-line comment
+           | /\*    # Start of multi-line comment
+           )
+        """;
+
     /// <summary>
     /// Removes characters from a .NET member name that shouldn't be used in an AI function name.
     /// </summary>
diff --git a/test/Libraries/Microsoft.Extensions.AI.Integration.Tests/ChatClientIntegrationTests.cs b/test/Libraries/Microsoft.Extensions.AI.Integration.Tests/ChatClientIntegrationTests.cs
index d84d767fd4c..ffa94f64531 100644
--- a/test/Libraries/Microsoft.Extensions.AI.Integration.Tests/ChatClientIntegrationTests.cs
+++ b/test/Libraries/Microsoft.Extensions.AI.Integration.Tests/ChatClientIntegrationTests.cs
@@ -341,6 +341,39 @@ public virtual async Task FunctionInvocation_NestedParameters()
         AssertUsageAgainstActivities(response, activities);
     }
 
+    [ConditionalFact]
+    public virtual async Task FunctionInvocation_ArrayParameter()
+    {
+        SkipIfNotEnabled();
+
+        var sourceName = Guid.NewGuid().ToString();
+        var activities = new List<Activity>();
+        using var tracerProvider = OpenTelemetry.Sdk.CreateTracerProviderBuilder()
+            .AddSource(sourceName)
+            .AddInMemoryExporter(activities)
+            .Build();
+
+        using var chatClient = new FunctionInvokingChatClient(
+            new OpenTelemetryChatClient(_chatClient, sourceName: sourceName));
+
+        List<ChatMessage> messages =
+        [
+            new(ChatRole.User, "Can you add bacon, lettuce, and tomatoes to Peter's shopping cart?")
+        ];
+
+        string? shopperName = null;
+        List<string> shoppingCart = [];
+        AIFunction func = AIFunctionFactory.Create((string[] items, string shopperId) => { shoppingCart.AddRange(items); shopperName = shopperId; }, "AddItemsToShoppingCart");
+        var response = await chatClient.GetResponseAsync(messages, new()
+        {
+            Tools = [func]
+        });
+
+        Assert.Equal("Peter", shopperName);
+        Assert.Equal(["bacon", "lettuce", "tomatoes"], shoppingCart);
+        AssertUsageAgainstActivities(response, activities);
+    }
+
     private static void AssertUsageAgainstActivities(ChatResponse response, List<Activity> activities)
     {
         // If the underlying IChatClient provides usage data, function invocation should aggregate the
diff --git a/test/Libraries/Microsoft.Extensions.AI.Tests/Functions/AIFunctionFactoryTest.cs b/test/Libraries/Microsoft.Extensions.AI.Tests/Functions/AIFunctionFactoryTest.cs
index 84298788e8c..b15d200a39a 100644
--- a/test/Libraries/Microsoft.Extensions.AI.Tests/Functions/AIFunctionFactoryTest.cs
+++ b/test/Libraries/Microsoft.Extensions.AI.Tests/Functions/AIFunctionFactoryTest.cs
@@ -6,6 +6,7 @@
 using System.ComponentModel;
 using System.Reflection;
 using System.Text.Json;
+using System.Text.Json.Nodes;
 using System.Text.Json.Serialization;
 using System.Threading;
 using System.Threading.Tasks;
@@ -75,6 +76,66 @@ public async Task Parameters_MissingRequiredParametersFail_Async()
         }
     }
 
+    [Fact]
+    public async Task Parameters_ToleratesJsonEncodedParameters()
+    {
+        AIFunction func = AIFunctionFactory.Create((int x, int y, int z, int w, int u) => x + y + z + w + u);
+
+        var result = await func.InvokeAsync(new()
+        {
+            ["x"] = "1",
+            ["y"] = JsonNode.Parse("2"),
+            ["z"] = JsonDocument.Parse("3"),
+            ["w"] = JsonDocument.Parse("4").RootElement,
+            ["u"] = 5M, // boxed decimal cannot be cast to int, requires conversion
+        });
+
+        AssertExtensions.EqualFunctionCallResults(15, result);
+    }
+
+    [Theory]
+    [InlineData("   null")]
+    [InlineData("   false   ")]
+    [InlineData("true   ")]
+    [InlineData("42")]
+    [InlineData("0.0")]
+    [InlineData("-1e15")]
+    [InlineData("  \"I am a string!\" ")]
+    [InlineData("  {}")]
+    [InlineData("[]")]
+    public async Task Parameters_ToleratesJsonStringParameters(string jsonStringParam)
+    {
+        AIFunction func = AIFunctionFactory.Create((JsonElement param) => param);
+        JsonElement expectedResult = JsonDocument.Parse(jsonStringParam).RootElement;
+
+        var result = await func.InvokeAsync(new()
+        {
+            ["param"] = jsonStringParam
+        });
+
+        AssertExtensions.EqualFunctionCallResults(expectedResult, result);
+    }
+
+    [Theory]
+    [InlineData("")]
+    [InlineData("                 \r\n")]
+    [InlineData("I am a string!")]
+    [InlineData("/* Code snippet */ int main(void) { return 0; }")]
+    [InlineData("let rec Y F x = F (Y F) x")]
+    [InlineData("+3")]
+    public async Task Parameters_ToleratesInvalidJsonStringParameters(string invalidJsonParam)
+    {
+        AIFunction func = AIFunctionFactory.Create((JsonElement param) => param);
+        JsonElement expectedResult = JsonDocument.Parse(JsonSerializer.Serialize(invalidJsonParam, JsonContext.Default.String)).RootElement;
+
+        var result = await func.InvokeAsync(new()
+        {
+            ["param"] = invalidJsonParam
+        });
+
+        AssertExtensions.EqualFunctionCallResults(expectedResult, result);
+    }
+
     [Fact]
     public async Task Parameters_MappedByType_Async()
     {