diff --git a/src/Libraries/Microsoft.Extensions.AI/ChatCompletion/FunctionInvokingChatClient.cs b/src/Libraries/Microsoft.Extensions.AI/ChatCompletion/FunctionInvokingChatClient.cs
index 9fd95df0424..f1858a295cf 100644
--- a/src/Libraries/Microsoft.Extensions.AI/ChatCompletion/FunctionInvokingChatClient.cs
+++ b/src/Libraries/Microsoft.Extensions.AI/ChatCompletion/FunctionInvokingChatClient.cs
@@ -460,7 +460,10 @@ public override async IAsyncEnumerable<ChatResponseUpdate> GetStreamingResponseA
                 foreach (var message in preDownstreamCallHistory)
                 {
                     yield return ConvertToolResultMessageToUpdate(message, options?.ConversationId, message.MessageId);
-                    Activity.Current = activity; // workaround for https://github.com/dotnet/runtime/issues/47802
+                    if (activity is not null)
+                    {
+                        Activity.Current = activity; // workaround for https://github.com/dotnet/runtime/issues/47802
+                    }
                 }
             }
 
@@ -474,7 +477,10 @@ public override async IAsyncEnumerable<ChatResponseUpdate> GetStreamingResponseA
                 {
                     message.MessageId = toolMessageId;
                     yield return ConvertToolResultMessageToUpdate(message, options?.ConversationId, message.MessageId);
-                    Activity.Current = activity; // workaround for https://github.com/dotnet/runtime/issues/47802
+                    if (activity is not null)
+                    {
+                        Activity.Current = activity; // workaround for https://github.com/dotnet/runtime/issues/47802
+                    }
                 }
 
                 if (shouldTerminate)
@@ -557,8 +563,10 @@ public override async IAsyncEnumerable<ChatResponseUpdate> GetStreamingResponseA
                     // we can yield the update as-is.
                     lastYieldedUpdateIndex++;
                     yield return update;
-                    Activity.Current = activity; // workaround for https://github.com/dotnet/runtime/issues/47802
-
+                    if (activity is not null)
+                    {
+                        Activity.Current = activity; // workaround for https://github.com/dotnet/runtime/issues/47802
+                    }
                     continue;
                 }
 
@@ -584,7 +592,10 @@ public override async IAsyncEnumerable<ChatResponseUpdate> GetStreamingResponseA
                         }
 
                         yield return updateToYield;
-                        Activity.Current = activity; // workaround for https://github.com/dotnet/runtime/issues/47802
+                        if (activity is not null)
+                        {
+                            Activity.Current = activity; // workaround for https://github.com/dotnet/runtime/issues/47802
+                        }
                     }
 
                     continue;
@@ -601,7 +612,10 @@ public override async IAsyncEnumerable<ChatResponseUpdate> GetStreamingResponseA
             {
                 var updateToYield = updates[lastYieldedUpdateIndex];
                 yield return updateToYield;
-                Activity.Current = activity; // workaround for https://github.com/dotnet/runtime/issues/47802
+                if (activity is not null)
+                {
+                    Activity.Current = activity; // workaround for https://github.com/dotnet/runtime/issues/47802
+                }
             }
 
             // If there's nothing more to do, break out of the loop and allow the handling at the
@@ -632,7 +646,10 @@ public override async IAsyncEnumerable<ChatResponseUpdate> GetStreamingResponseA
             foreach (var message in modeAndMessages.MessagesAdded)
             {
                 yield return ConvertToolResultMessageToUpdate(message, response.ConversationId, toolMessageId);
-                Activity.Current = activity; // workaround for https://github.com/dotnet/runtime/issues/47802
+                if (activity is not null)
+                {
+                    Activity.Current = activity; // workaround for https://github.com/dotnet/runtime/issues/47802
+                }
             }
 
             if (modeAndMessages.ShouldTerminate)
diff --git a/test/Libraries/Microsoft.Extensions.AI.Tests/ChatCompletion/FunctionInvokingChatClientTests.cs b/test/Libraries/Microsoft.Extensions.AI.Tests/ChatCompletion/FunctionInvokingChatClientTests.cs
index 2ddf757d185..dd2a139b4f6 100644
--- a/test/Libraries/Microsoft.Extensions.AI.Tests/ChatCompletion/FunctionInvokingChatClientTests.cs
+++ b/test/Libraries/Microsoft.Extensions.AI.Tests/ChatCompletion/FunctionInvokingChatClientTests.cs
@@ -1713,6 +1713,63 @@ public async Task DoesNotCreateOrchestrateToolsSpanWhenInvokeAgentIsParent(strin
         Assert.All(childActivities, activity => Assert.Same(invokeAgent, activity.Parent));
     }
 
+    [Fact]
+    public async Task StreamingPreservesTraceContextWhenInvokeAgentWithNameIsParent()
+    {
+        string agentSourceName = Guid.NewGuid().ToString();
+        string clientSourceName = Guid.NewGuid().ToString();
+        var activities = new List<Activity>();
+
+        using TracerProvider tracerProvider = OpenTelemetry.Sdk.CreateTracerProviderBuilder()
+            .AddSource(agentSourceName)
+            .AddSource(clientSourceName)
+            .AddInMemoryExporter(activities)
+            .Build();
+
+        int callCount = 0;
+        using var innerClient = new TestChatClient
+        {
+            GetStreamingResponseAsyncCallback = (messages, options, ct) =>
+            {
+                callCount++;
+                ChatMessage message = callCount == 1
+                    ? new(ChatRole.Assistant, [new FunctionCallContent("call1", "Func1")])
+                    : new(ChatRole.Assistant, "Done");
+                return YieldAsync(new ChatResponse(message).ToChatResponseUpdates());
+            }
+        };
+
+        var client = innerClient.AsBuilder()
+            .Use(c => new FunctionInvokingChatClient(
+                new OpenTelemetryChatClient(c, sourceName: clientSourceName)))
+            .Build();
+
+        var options = new ChatOptions
+        {
+            Tools = [AIFunctionFactory.Create(() => "Result 1", "Func1")]
+        };
+
+        using var agentSource = new ActivitySource(agentSourceName);
+        using var invokeAgentActivity = agentSource.StartActivity("invoke_agent MyAgent(agent-123)");
+        Assert.NotNull(invokeAgentActivity);
+
+        await foreach (var update in client.GetStreamingResponseAsync(
+            [new ChatMessage(ChatRole.User, "hello")], options))
+        {
+            // consume all updates
+        }
+
+        Assert.Equal(2, callCount);
+
+        var chatActivities = activities.Where(a => a.DisplayName.StartsWith("chat", StringComparison.Ordinal)).ToList();
+        Assert.Equal(2, chatActivities.Count);
+
+        // All child activities must share the same trace as invoke_agent
+        var nonAgentActivities = activities.Where(a => a != invokeAgentActivity).ToList();
+        Assert.All(nonAgentActivities, a =>
+            Assert.Equal(invokeAgentActivity.TraceId, a.TraceId));
+    }
+
     [Theory]
     [InlineData("invoke_agen")]
     [InlineData("invoke_agent_extra")]