diff --git a/strands-py/pyproject.toml b/strands-py/pyproject.toml
index c439943360..ce31f81a7b 100644
--- a/strands-py/pyproject.toml
+++ b/strands-py/pyproject.toml
@@ -47,7 +47,7 @@ dependencies = [
 
 [project.optional-dependencies]
 anthropic = ["anthropic>=0.21.0,<1.0.0"]
-gemini = ["google-genai>=1.67.0,<3.0.0"]
+gemini = ["google-genai>=1.68.0,<3.0.0"]
 # The latest litellm v1.92.0 do not support python 3.14, for the short term we will keep 
 # the version lower than 1.92.0 until litellm has the python 3.14 supported version.
 litellm = ["litellm>=1.75.9,<=1.95.0", "openai>=1.68.0,<3.0.0"]
diff --git a/strands-py/src/strands/models/gemini.py b/strands-py/src/strands/models/gemini.py
index 6a301582d4..324ffb1437 100644
--- a/strands-py/src/strands/models/gemini.py
+++ b/strands-py/src/strands/models/gemini.py
@@ -328,6 +328,8 @@ def _format_request_config(
         system_prompt: str | None,
         params: dict[str, Any] | None,
         tool_choice: ToolChoice | None = None,
+        *,
+        is_vertex: bool = False,
     ) -> genai.types.GenerateContentConfig:
         """Format Gemini request config.
 
@@ -338,6 +340,8 @@ def _format_request_config(
             system_prompt: System prompt to provide context to the model.
             params: Additional model parameters (e.g., temperature).
             tool_choice: Selection strategy for tool invocation.
+            is_vertex: Whether the request is sent through Vertex AI, which does not support
+                `include_server_side_tool_invocations`.
 
         Returns:
             Gemini request config.
@@ -351,6 +355,21 @@ def _format_request_config(
             # merged with, or replaced by, the narrower per-request choice.
             config_params.setdefault("tool_config", tool_config)
 
+        if tool_specs and self.config.get("gemini_tools") and not is_vertex:
+            # Gemini requires this flag when server-side built-in tools and function declarations are combined.
+            # An explicit params key, including None, owns the request. Normalize a supplied dict through
+            # the SDK so both snake_case and the REST-facing camelCase aliases work.
+            existing_tool_config = config_params.get("tool_config")
+            if "tool_config" not in config_params:
+                config_params["tool_config"] = genai.types.ToolConfig(include_server_side_tool_invocations=True)
+            elif existing_tool_config is not None:
+                merged_tool_config = genai.types.ToolConfig.model_validate(existing_tool_config)
+                if merged_tool_config.include_server_side_tool_invocations is None:
+                    merged_tool_config = merged_tool_config.model_copy(
+                        update={"include_server_side_tool_invocations": True},
+                    )
+                config_params["tool_config"] = merged_tool_config
+
         return genai.types.GenerateContentConfig(
             system_instruction=system_prompt,
             tools=self._format_request_tools(tool_specs),
@@ -364,6 +383,8 @@ def _format_request(
         system_prompt: str | None,
         params: dict[str, Any] | None,
         tool_choice: ToolChoice | None = None,
+        *,
+        is_vertex: bool = False,
     ) -> dict[str, Any]:
         """Format a Gemini streaming request.
 
@@ -375,12 +396,20 @@ def _format_request(
             system_prompt: System prompt to provide context to the model.
             params: Additional model parameters (e.g., temperature).
             tool_choice: Selection strategy for tool invocation.
+            is_vertex: Whether the request is sent through Vertex AI, which does not support
+                `include_server_side_tool_invocations`.
 
         Returns:
             A Gemini streaming request.
         """
         return {
-            "config": self._format_request_config(tool_specs, system_prompt, params, tool_choice).to_json_dict(),
+            "config": self._format_request_config(
+                tool_specs,
+                system_prompt,
+                params,
+                tool_choice,
+                is_vertex=is_vertex,
+            ).to_json_dict(),
             "contents": [content.to_json_dict() for content in self._format_request_content(messages)],
             "model": self.config["model_id"],
         }
@@ -586,11 +615,17 @@ async def stream(
         Raises:
             ModelThrottledException: If the request is throttled by Gemini.
         """
+        gemini_client = self._get_client()
         request = self._format_request(
-            messages, tool_specs, system_prompt, self.config.get("params"), tool_choice=tool_choice
+            messages,
+            tool_specs,
+            system_prompt,
+            self.config.get("params"),
+            tool_choice=tool_choice,
+            is_vertex=bool(getattr(gemini_client, "vertexai", False)),
         )
 
-        client = self._get_client().aio
+        client = gemini_client.aio
 
         try:
             response = await client.models.generate_content_stream(**request)
diff --git a/strands-py/tests/strands/models/test_gemini.py b/strands-py/tests/strands/models/test_gemini.py
index 5c70222d55..249dd8792a 100644
--- a/strands-py/tests/strands/models/test_gemini.py
+++ b/strands-py/tests/strands/models/test_gemini.py
@@ -15,6 +15,7 @@ def gemini_client():
     with unittest.mock.patch.object(strands.models.gemini.genai, "Client") as mock_client_cls:
         mock_client = mock_client_cls.return_value
         mock_client.aio = unittest.mock.AsyncMock()
+        mock_client.vertexai = False
         yield mock_client
 
 
@@ -1033,6 +1034,7 @@ async def test_stream_request_with_gemini_tools(gemini_client, messages, model_i
 
 @pytest.mark.asyncio
 async def test_stream_request_with_gemini_tools_and_function_tools(gemini_client, messages, tool_spec, model_id):
+    """Regression coverage for #3639: built-in and function tools coexist."""
     code_execution_tool = genai.types.Tool(code_execution=genai.types.ToolCodeExecution())
     model = GeminiModel(model_id=model_id, gemini_tools=[code_execution_tool])
 
@@ -1051,7 +1053,8 @@ async def test_stream_request_with_gemini_tools_and_function_tools(gemini_client
                     ]
                 },
                 {"code_execution": {}},
-            ]
+            ],
+            "tool_config": {"include_server_side_tool_invocations": True},
         },
         "contents": [{"parts": [{"text": "test"}], "role": "user"}],
         "model": model_id,
@@ -1059,6 +1062,77 @@ async def test_stream_request_with_gemini_tools_and_function_tools(gemini_client
     gemini_client.aio.models.generate_content_stream.assert_called_with(**exp_request)
 
 
+@pytest.mark.asyncio
+async def test_stream_request_with_gemini_tools_and_function_tools_for_vertex(
+    gemini_client, messages, tool_spec, model_id
+):
+    gemini_client.vertexai = True
+    code_execution_tool = genai.types.Tool(code_execution=genai.types.ToolCodeExecution())
+    model = GeminiModel(model_id=model_id, client=gemini_client, gemini_tools=[code_execution_tool])
+
+    await anext(model.stream(messages, tool_specs=[tool_spec]))
+
+    request = gemini_client.aio.models.generate_content_stream.call_args.kwargs
+    assert "include_server_side_tool_invocations" not in (request["config"].get("tool_config") or {})
+
+
+@pytest.mark.asyncio
+async def test_stream_request_with_empty_function_tools_does_not_enable_server_side_invocations(
+    gemini_client, messages, model_id
+):
+    code_execution_tool = genai.types.Tool(code_execution=genai.types.ToolCodeExecution())
+    model = GeminiModel(model_id=model_id, client=gemini_client, gemini_tools=[code_execution_tool])
+
+    await anext(model.stream(messages, tool_specs=[]))
+
+    request = gemini_client.aio.models.generate_content_stream.call_args.kwargs
+    assert "tool_config" not in request["config"]
+
+
+@pytest.mark.asyncio
+async def test_stream_request_with_gemini_tools_merges_camel_case_tool_config(
+    gemini_client, messages, tool_spec, model_id
+):
+    code_execution_tool = genai.types.Tool(code_execution=genai.types.ToolCodeExecution())
+    model = GeminiModel(
+        model_id=model_id,
+        client=gemini_client,
+        gemini_tools=[code_execution_tool],
+        params={"tool_config": {"includeServerSideToolInvocations": False}},
+    )
+
+    await anext(model.stream(messages, tool_specs=[tool_spec]))
+
+    request = gemini_client.aio.models.generate_content_stream.call_args.kwargs
+    assert request["config"]["tool_config"] == {"include_server_side_tool_invocations": False}
+
+
+@pytest.mark.asyncio
+async def test_stream_request_with_gemini_tools_merges_existing_tool_config(
+    gemini_client, messages, tool_spec, model_id
+):
+    code_execution_tool = genai.types.Tool(code_execution=genai.types.ToolCodeExecution())
+    tool_config = genai.types.ToolConfig(
+        function_calling_config=genai.types.FunctionCallingConfig(
+            mode=genai.types.FunctionCallingConfigMode.AUTO,
+        ),
+    )
+    model = GeminiModel(
+        model_id=model_id,
+        client=gemini_client,
+        gemini_tools=[code_execution_tool],
+        params={"tool_config": tool_config},
+    )
+
+    await anext(model.stream(messages, tool_specs=[tool_spec]))
+
+    request = gemini_client.aio.models.generate_content_stream.call_args.kwargs
+    assert request["config"]["tool_config"] == {
+        "function_calling_config": {"mode": "AUTO"},
+        "include_server_side_tool_invocations": True,
+    }
+
+
 @pytest.mark.parametrize(
     ("tool_choice", "exp_function_calling_config"),
     [
@@ -1165,7 +1239,11 @@ async def test_stream_tool_config_param_set_to_none_still_takes_precedence(
 
     Matches the sibling providers, which spread params last and therefore let an explicit None win.
     """
-    model = GeminiModel(model_id=model_id, params={"tool_config": None})
+    model = GeminiModel(
+        model_id=model_id,
+        gemini_tools=[genai.types.Tool(code_execution=genai.types.ToolCodeExecution())],
+        params={"tool_config": None},
+    )
 
     await anext(model.stream(messages, tool_specs=[tool_spec], tool_choice={"any": {}}))
 
@@ -1180,7 +1258,8 @@ async def test_stream_tool_config_param_set_to_none_still_takes_precedence(
                             "parameters_json_schema": tool_spec["inputSchema"]["json"],
                         }
                     ]
-                }
+                },
+                {"code_execution": {}},
             ],
         },
         "contents": [{"parts": [{"text": "test"}], "role": "user"}],