diff --git a/python/packages/ag-ui/agent_framework_ag_ui/_run_common.py b/python/packages/ag-ui/agent_framework_ag_ui/_run_common.py
index cec86bdcf3..11f71650fd 100644
--- a/python/packages/ag-ui/agent_framework_ag_ui/_run_common.py
+++ b/python/packages/ag-ui/agent_framework_ag_ui/_run_common.py
@@ -355,6 +355,14 @@ def _emit_usage(content: Content) -> list[BaseEvent]:
     return [CustomEvent(name="usage", value=usage_details)]
 
 
+def _emit_oauth_consent(content: Content) -> list[BaseEvent]:
+    """Emit an OAuth consent request as a custom event so frontends can render a consent link."""
+    consent_link = content.consent_link or ""
+    if not consent_link:
+        return []
+    return [CustomEvent(name="oauth_consent_request", value={"consent_link": consent_link})]
+
+
 def _emit_content(
     content: Any,
     flow: FlowState,
@@ -374,5 +382,7 @@ def _emit_content(
         return _emit_approval_request(content, flow, predictive_handler, require_confirmation)
     if content_type == "usage":
         return _emit_usage(content)
+    if content_type == "oauth_consent_request":
+        return _emit_oauth_consent(content)
     logger.debug("Skipping unsupported content type in AG-UI emitter: %s", content_type)
     return []
diff --git a/python/packages/ag-ui/tests/ag_ui/test_run.py b/python/packages/ag-ui/tests/ag_ui/test_run.py
index 4abd63c799..c54f0ab433 100644
--- a/python/packages/ag-ui/tests/ag_ui/test_run.py
+++ b/python/packages/ag-ui/tests/ag_ui/test_run.py
@@ -4,6 +4,7 @@
 
 import pytest
 from ag_ui.core import (
+    CustomEvent,
     TextMessageEndEvent,
     TextMessageStartEvent,
 )
@@ -834,3 +835,26 @@ def test_text_then_tool_flow(self):
 
         assert len(start_events) == 2
         assert len(end_events) == 2
+
+
+def test_emit_oauth_consent_request():
+    """Test that oauth_consent_request content emits a CustomEvent."""
+    content = Content.from_oauth_consent_request(
+        consent_link="https://login.microsoftonline.com/consent",
+    )
+    flow = FlowState()
+    events = _emit_content(content, flow)
+
+    assert len(events) == 1
+    assert isinstance(events[0], CustomEvent)
+    assert events[0].name == "oauth_consent_request"
+    assert events[0].value == {"consent_link": "https://login.microsoftonline.com/consent"}
+
+
+def test_emit_oauth_consent_request_no_link():
+    """Test that oauth_consent_request without a consent_link emits no events."""
+    content = Content("oauth_consent_request", user_input_request=True)
+    flow = FlowState()
+    events = _emit_content(content, flow)
+
+    assert len(events) == 0
diff --git a/python/packages/azure-ai/agent_framework_azure_ai/_client.py b/python/packages/azure-ai/agent_framework_azure_ai/_client.py
index de9df819ec..b83c0fb8b9 100644
--- a/python/packages/azure-ai/agent_framework_azure_ai/_client.py
+++ b/python/packages/azure-ai/agent_framework_azure_ai/_client.py
@@ -15,6 +15,9 @@
     BaseContextProvider,
     ChatAndFunctionMiddlewareTypes,
     ChatMiddlewareLayer,
+    ChatResponse,
+    ChatResponseUpdate,
+    Content,
     FunctionInvocationConfiguration,
     FunctionInvocationLayer,
     FunctionTool,
@@ -579,6 +582,61 @@ def _get_current_conversation_id(self, options: Mapping[str, Any], **kwargs: Any
         """Get the current conversation ID from chat options or kwargs."""
         return options.get("conversation_id") or kwargs.get("conversation_id") or self.conversation_id
 
+    @override
+    def _parse_response_from_openai(
+        self,
+        response: Any,
+        options: dict[str, Any],
+    ) -> ChatResponse:
+        """Parse an Azure AI Responses API response, handling Azure-specific output item types."""
+        result = super()._parse_response_from_openai(response, options)
+
+        for item in response.output:
+            if item.type == "oauth_consent_request":
+                consent_link = item.consent_link
+                if consent_link and result.messages:
+                    result.messages[0].contents.append(
+                        Content.from_oauth_consent_request(
+                            consent_link=consent_link,
+                            raw_representation=item,
+                        )
+                    )
+                elif not consent_link:
+                    logger.warning("Received oauth_consent_request output without consent_link: %s", item)
+
+        return result
+
+    @override
+    def _parse_chunk_from_openai(
+        self,
+        event: Any,
+        options: dict[str, Any],
+        function_call_ids: dict[int, tuple[str, str]],
+    ) -> ChatResponseUpdate:
+        """Parse an Azure AI streaming event, handling Azure-specific event types."""
+        # Intercept output_item.added events for Azure-specific item types
+        if event.type == "response.output_item.added" and event.item.type == "oauth_consent_request":
+            event_item = event.item
+            consent_link = event_item.consent_link
+            contents: list[Content] = []
+            if consent_link:
+                contents.append(
+                    Content.from_oauth_consent_request(
+                        consent_link=consent_link,
+                        raw_representation=event_item,
+                    )
+                )
+            else:
+                logger.warning("Received oauth_consent_request output without consent_link: %s", event_item)
+            return ChatResponseUpdate(
+                contents=contents,
+                role="assistant",
+                model_id=self.model_id,
+                raw_representation=event,
+            )
+
+        return super()._parse_chunk_from_openai(event, options, function_call_ids)
+
     def _prepare_messages_for_azure_ai(self, messages: Sequence[Message]) -> tuple[list[Message], str | None]:
         """Prepare input from messages and convert system/developer messages to instructions."""
         result: list[Message] = []
diff --git a/python/packages/azure-ai/tests/test_azure_ai_client.py b/python/packages/azure-ai/tests/test_azure_ai_client.py
index 5824b668f1..37d625e5dc 100644
--- a/python/packages/azure-ai/tests/test_azure_ai_client.py
+++ b/python/packages/azure-ai/tests/test_azure_ai_client.py
@@ -1774,3 +1774,63 @@ def test_get_image_generation_tool_with_options() -> None:
 
 
 # endregion
+
+
+# region OAuth Consent
+
+
+def test_parse_chunk_with_oauth_consent_request(mock_project_client: MagicMock) -> None:
+    """Test that a streaming oauth_consent_request output item is parsed into oauth_consent_request content.
+
+    This reproduces the bug from issue #3950 where the event was logged as "Unparsed event"
+    and silently discarded, causing the agent run to complete with zero content.
+    """
+    client = AzureAIClient(project_client=mock_project_client, agent_name="test")
+    chat_options: dict[str, Any] = {}
+    function_call_ids: dict[int, tuple[str, str]] = {}
+
+    mock_item = MagicMock()
+    mock_item.type = "oauth_consent_request"
+    mock_item.consent_link = "https://login.microsoftonline.com/common/oauth2/authorize?client_id=abc123"
+
+    mock_event = MagicMock()
+    mock_event.type = "response.output_item.added"
+    mock_event.item = mock_item
+    mock_event.output_index = 0
+
+    update = client._parse_chunk_from_openai(mock_event, chat_options, function_call_ids)
+
+    assert len(update.contents) == 1
+    consent_content = update.contents[0]
+    assert consent_content.type == "oauth_consent_request"
+    assert consent_content.consent_link == "https://login.microsoftonline.com/common/oauth2/authorize?client_id=abc123"
+    assert consent_content.user_input_request is True
+
+
+def test_parse_response_with_oauth_consent_output_item(mock_project_client: MagicMock) -> None:
+    """Test that a non-streaming oauth_consent_request output item is parsed correctly."""
+    client = AzureAIClient(project_client=mock_project_client, agent_name="test")
+
+    mock_item = MagicMock()
+    mock_item.type = "oauth_consent_request"
+    mock_item.consent_link = "https://login.microsoftonline.com/consent?code=abc"
+
+    mock_response = MagicMock()
+    mock_response.output = [mock_item]
+    mock_response.output_parsed = None
+    mock_response.metadata = {}
+    mock_response.id = "resp-oauth-1"
+    mock_response.model = "test-model"
+    mock_response.created_at = 1000000000
+    mock_response.usage = None
+    mock_response.status = "completed"
+
+    response = client._parse_response_from_openai(mock_response, {})
+
+    assert len(response.messages) > 0
+    consent_contents = [c for c in response.messages[0].contents if c.type == "oauth_consent_request"]
+    assert len(consent_contents) == 1
+    assert consent_contents[0].consent_link == "https://login.microsoftonline.com/consent?code=abc"
+
+
+# endregion
diff --git a/python/packages/core/agent_framework/_types.py b/python/packages/core/agent_framework/_types.py
index c664fd3446..02b9e54371 100644
--- a/python/packages/core/agent_framework/_types.py
+++ b/python/packages/core/agent_framework/_types.py
@@ -331,6 +331,7 @@ def _serialize_value(value: Any, exclude_none: bool) -> Any:
     "mcp_server_tool_result",
     "function_approval_request",
     "function_approval_response",
+    "oauth_consent_request",
 ]
 
 
@@ -468,6 +469,8 @@ def __init__(
         function_call: Content | None = None,
         user_input_request: bool | None = None,
         approved: bool | None = None,
+        # OAuth consent fields
+        consent_link: str | None = None,
         # Common fields
         annotations: Sequence[Annotation] | None = None,
         additional_properties: MutableMapping[str, Any] | None = None,
@@ -508,6 +511,7 @@ def __init__(
         self.function_call = function_call
         self.user_input_request = user_input_request
         self.approved = approved
+        self.consent_link = consent_link
 
     @classmethod
     def from_text(
@@ -978,6 +982,37 @@ def from_function_approval_response(
             raw_representation=raw_representation,
         )
 
+    @classmethod
+    def from_oauth_consent_request(
+        cls: type[ContentT],
+        consent_link: str,
+        *,
+        annotations: Sequence[Annotation] | None = None,
+        additional_properties: MutableMapping[str, Any] | None = None,
+        raw_representation: Any = None,
+    ) -> ContentT:
+        """Create OAuth consent request content.
+
+        Args:
+            consent_link: The URL the user must visit to complete OAuth consent.
+
+        Keyword Args:
+            annotations: Optional annotations.
+            additional_properties: Optional additional properties.
+            raw_representation: Optional raw representation from the provider.
+
+        Returns:
+            A new Content instance with type ``oauth_consent_request``.
+        """
+        return cls(
+            "oauth_consent_request",
+            consent_link=consent_link,
+            user_input_request=True,
+            annotations=annotations,
+            additional_properties=additional_properties,
+            raw_representation=raw_representation,
+        )
+
     def to_function_approval_response(
         self,
         approved: bool,
@@ -1024,6 +1059,7 @@ def to_dict(self, *, exclude_none: bool = True, exclude: set[str] | None = None)
             "user_input_request",
             "approved",
             "id",
+            "consent_link",
             "additional_properties",
         )
 
diff --git a/python/packages/core/agent_framework/observability.py b/python/packages/core/agent_framework/observability.py
index 338e4c6ab7..f9178c1207 100644
--- a/python/packages/core/agent_framework/observability.py
+++ b/python/packages/core/agent_framework/observability.py
@@ -28,7 +28,7 @@
 from opentelemetry import metrics, trace
 from opentelemetry.sdk.resources import Resource
 from opentelemetry.semconv.attributes import service_attributes
-from opentelemetry.semconv_ai import Meters, SpanAttributes
+from opentelemetry.semconv_ai import Meters
 
 from . import __version__ as version_info
 from ._settings import load_settings
@@ -1756,9 +1756,7 @@ def _capture_response(
     span.set_attributes(attributes)
     attrs: dict[str, Any] = {k: v for k, v in attributes.items() if k in GEN_AI_METRIC_ATTRIBUTES}
     if token_usage_histogram and (input_tokens := attributes.get(OtelAttr.INPUT_TOKENS)):
-        token_usage_histogram.record(
-            input_tokens, attributes={**attrs, OtelAttr.T_TYPE: OtelAttr.T_TYPE_INPUT}
-        )
+        token_usage_histogram.record(input_tokens, attributes={**attrs, OtelAttr.T_TYPE: OtelAttr.T_TYPE_INPUT})
     if token_usage_histogram and (output_tokens := attributes.get(OtelAttr.OUTPUT_TOKENS)):
         token_usage_histogram.record(output_tokens, {**attrs, OtelAttr.T_TYPE: OtelAttr.T_TYPE_OUTPUT})
     if operation_duration_histogram and duration is not None:
diff --git a/python/packages/core/agent_framework/openai/_chat_client.py b/python/packages/core/agent_framework/openai/_chat_client.py
index 5d6f66491c..f08d80e990 100644
--- a/python/packages/core/agent_framework/openai/_chat_client.py
+++ b/python/packages/core/agent_framework/openai/_chat_client.py
@@ -411,9 +411,7 @@ def _parse_response_update_from_openai(
         # See https://github.com/microsoft/agent-framework/issues/3434
         if chunk.usage:
             contents.append(
-                Content.from_usage(
-                    usage_details=self._parse_usage_from_openai(chunk.usage), raw_representation=chunk
-                )
+                Content.from_usage(usage_details=self._parse_usage_from_openai(chunk.usage), raw_representation=chunk)
             )
 
         for choice in chunk.choices:
@@ -591,7 +589,9 @@ def _prepare_message_for_openai(self, message: Message) -> list[dict[str, Any]]:
         # See https://github.com/microsoft/agent-framework/issues/4084
         for msg in all_messages:
             msg_content: Any = msg.get("content")
-            if isinstance(msg_content, list) and all(isinstance(c, dict) and c.get("type") == "text" for c in msg_content):
+            if isinstance(msg_content, list) and all(
+                isinstance(c, dict) and c.get("type") == "text" for c in msg_content
+            ):
                 msg["content"] = "\n".join(c.get("text", "") for c in msg_content)
 
         return all_messages
diff --git a/python/packages/core/tests/core/test_types.py b/python/packages/core/tests/core/test_types.py
index 8a8885b919..78e40806ca 100644
--- a/python/packages/core/tests/core/test_types.py
+++ b/python/packages/core/tests/core/test_types.py
@@ -3310,3 +3310,30 @@ def result(r: ChatResponse) -> ChatResponse:
 
 
 # endregion
+
+
+# region OAuth Consent Content
+
+
+def test_oauth_consent_request_creation():
+    """Test Content.from_oauth_consent_request creates the correct content."""
+    content = Content.from_oauth_consent_request(
+        consent_link="https://login.microsoftonline.com/common/oauth2/authorize?client_id=abc",
+    )
+    assert content.type == "oauth_consent_request"
+    assert content.consent_link == "https://login.microsoftonline.com/common/oauth2/authorize?client_id=abc"
+    assert content.user_input_request is True
+
+
+def test_oauth_consent_request_serialization_roundtrip():
+    """Test that oauth_consent_request content serializes and includes consent_link."""
+    content = Content.from_oauth_consent_request(
+        consent_link="https://login.microsoftonline.com/consent",
+    )
+    d = content.to_dict()
+    assert d["type"] == "oauth_consent_request"
+    assert d["consent_link"] == "https://login.microsoftonline.com/consent"
+    assert d["user_input_request"] is True
+
+
+# endregion