diff --git a/api/server/services/AuthService.js b/api/server/services/AuthService.js
index a400bce8b7..03122cb559 100644
--- a/api/server/services/AuthService.js
+++ b/api/server/services/AuthService.js
@@ -7,7 +7,13 @@ const {
   DEFAULT_REFRESH_TOKEN_EXPIRY,
 } = require('@librechat/data-schemas');
 const { ErrorTypes, SystemRoles, errorsToString } = require('librechat-data-provider');
-const { isEnabled, checkEmailConfig, isEmailDomainAllowed, math } = require('@librechat/api');
+const {
+  math,
+  isEnabled,
+  checkEmailConfig,
+  isEmailDomainAllowed,
+  shouldUseSecureCookie,
+} = require('@librechat/api');
 const {
   findUser,
   findToken,
@@ -33,7 +39,6 @@ const domains = {
   server: process.env.DOMAIN_SERVER,
 };
 
-const isProduction = process.env.NODE_ENV === 'production';
 const genericVerificationMessage = 'Please check your email to verify your email address.';
 
 /**
@@ -392,13 +397,13 @@ const setAuthTokens = async (userId, res, _session = null) => {
     res.cookie('refreshToken', refreshToken, {
       expires: new Date(refreshTokenExpires),
       httpOnly: true,
-      secure: isProduction,
+      secure: shouldUseSecureCookie(),
       sameSite: 'strict',
     });
     res.cookie('token_provider', 'librechat', {
       expires: new Date(refreshTokenExpires),
       httpOnly: true,
-      secure: isProduction,
+      secure: shouldUseSecureCookie(),
       sameSite: 'strict',
     });
     return token;
@@ -419,7 +424,7 @@ const setAuthTokens = async (userId, res, _session = null) => {
  * @param {Object} req - request object (for session access)
  * @param {Object} res - response object
  * @param {string} [userId] - Optional MongoDB user ID for image path validation
- * @returns {String} - access token
+ * @returns {String} - id_token (preferred) or access_token as the app auth token
  */
 const setOpenIDAuthTokens = (tokenset, req, res, userId, existingRefreshToken) => {
   try {
@@ -448,6 +453,15 @@ const setOpenIDAuthTokens = (tokenset, req, res, userId, existingRefreshToken) =
       return;
     }
 
+    /**
+     * Use id_token as the app authentication token (Bearer token for JWKS validation).
+     * The id_token is always a standard JWT signed by the IdP's JWKS keys with the app's
+     * client_id as audience. The access_token may be opaque or intended for a different
+     * audience (e.g., Microsoft Graph API), which fails JWKS validation.
+     * Falls back to access_token for providers where id_token is not available.
+     */
+    const appAuthToken = tokenset.id_token || tokenset.access_token;
+
     /** Store tokens server-side in session to avoid large cookies */
     if (req.session) {
       req.session.openidTokens = {
@@ -460,13 +474,13 @@ const setOpenIDAuthTokens = (tokenset, req, res, userId, existingRefreshToken) =
       res.cookie('refreshToken', refreshToken, {
         expires: expirationDate,
         httpOnly: true,
-        secure: isProduction,
+        secure: shouldUseSecureCookie(),
         sameSite: 'strict',
       });
       res.cookie('openid_access_token', tokenset.access_token, {
         expires: expirationDate,
         httpOnly: true,
-        secure: isProduction,
+        secure: shouldUseSecureCookie(),
         sameSite: 'strict',
       });
     }
@@ -475,7 +489,7 @@ const setOpenIDAuthTokens = (tokenset, req, res, userId, existingRefreshToken) =
     res.cookie('token_provider', 'openid', {
       expires: expirationDate,
       httpOnly: true,
-      secure: isProduction,
+      secure: shouldUseSecureCookie(),
       sameSite: 'strict',
     });
     if (userId && isEnabled(process.env.OPENID_REUSE_TOKENS)) {
@@ -486,11 +500,11 @@ const setOpenIDAuthTokens = (tokenset, req, res, userId, existingRefreshToken) =
       res.cookie('openid_user_id', signedUserId, {
         expires: expirationDate,
         httpOnly: true,
-        secure: isProduction,
+        secure: shouldUseSecureCookie(),
         sameSite: 'strict',
       });
     }
-    return tokenset.access_token;
+    return appAuthToken;
   } catch (error) {
     logger.error('[setOpenIDAuthTokens] Error in setting authentication tokens:', error);
     throw error;
diff --git a/api/server/services/AuthService.spec.js b/api/server/services/AuthService.spec.js
new file mode 100644
index 0000000000..da78f8d775
--- /dev/null
+++ b/api/server/services/AuthService.spec.js
@@ -0,0 +1,269 @@
+jest.mock('@librechat/data-schemas', () => ({
+  logger: { info: jest.fn(), warn: jest.fn(), debug: jest.fn(), error: jest.fn() },
+  DEFAULT_SESSION_EXPIRY: 900000,
+  DEFAULT_REFRESH_TOKEN_EXPIRY: 604800000,
+}));
+jest.mock('librechat-data-provider', () => ({
+  ErrorTypes: {},
+  SystemRoles: { USER: 'USER', ADMIN: 'ADMIN' },
+  errorsToString: jest.fn(),
+}));
+jest.mock('@librechat/api', () => ({
+  isEnabled: jest.fn((val) => val === 'true' || val === true),
+  checkEmailConfig: jest.fn(),
+  isEmailDomainAllowed: jest.fn(),
+  math: jest.fn((val, fallback) => (val ? Number(val) : fallback)),
+  shouldUseSecureCookie: jest.fn(() => false),
+}));
+jest.mock('~/models', () => ({
+  findUser: jest.fn(),
+  findToken: jest.fn(),
+  createUser: jest.fn(),
+  updateUser: jest.fn(),
+  countUsers: jest.fn(),
+  getUserById: jest.fn(),
+  findSession: jest.fn(),
+  createToken: jest.fn(),
+  deleteTokens: jest.fn(),
+  deleteSession: jest.fn(),
+  createSession: jest.fn(),
+  generateToken: jest.fn(),
+  deleteUserById: jest.fn(),
+  generateRefreshToken: jest.fn(),
+}));
+jest.mock('~/strategies/validators', () => ({ registerSchema: { parse: jest.fn() } }));
+jest.mock('~/server/services/Config', () => ({ getAppConfig: jest.fn() }));
+jest.mock('~/server/utils', () => ({ sendEmail: jest.fn() }));
+
+const { shouldUseSecureCookie } = require('@librechat/api');
+const { setOpenIDAuthTokens } = require('./AuthService');
+
+/** Helper to build a mock Express response */
+function mockResponse() {
+  const cookies = {};
+  const res = {
+    cookie: jest.fn((name, value, options) => {
+      cookies[name] = { value, options };
+    }),
+    _cookies: cookies,
+  };
+  return res;
+}
+
+/** Helper to build a mock Express request with session */
+function mockRequest(sessionData = {}) {
+  return {
+    session: { openidTokens: null, ...sessionData },
+  };
+}
+
+describe('setOpenIDAuthTokens', () => {
+  const env = process.env;
+
+  beforeEach(() => {
+    jest.clearAllMocks();
+    process.env = {
+      ...env,
+      JWT_REFRESH_SECRET: 'test-refresh-secret',
+      OPENID_REUSE_TOKENS: 'true',
+    };
+  });
+
+  afterAll(() => {
+    process.env = env;
+  });
+
+  describe('token selection (id_token vs access_token)', () => {
+    it('should return id_token when both id_token and access_token are present', () => {
+      const tokenset = {
+        id_token: 'the-id-token',
+        access_token: 'the-access-token',
+        refresh_token: 'the-refresh-token',
+      };
+      const req = mockRequest();
+      const res = mockResponse();
+
+      const result = setOpenIDAuthTokens(tokenset, req, res, 'user-123');
+      expect(result).toBe('the-id-token');
+    });
+
+    it('should return access_token when id_token is not available', () => {
+      const tokenset = {
+        access_token: 'the-access-token',
+        refresh_token: 'the-refresh-token',
+      };
+      const req = mockRequest();
+      const res = mockResponse();
+
+      const result = setOpenIDAuthTokens(tokenset, req, res, 'user-123');
+      expect(result).toBe('the-access-token');
+    });
+
+    it('should return access_token when id_token is undefined', () => {
+      const tokenset = {
+        id_token: undefined,
+        access_token: 'the-access-token',
+        refresh_token: 'the-refresh-token',
+      };
+      const req = mockRequest();
+      const res = mockResponse();
+
+      const result = setOpenIDAuthTokens(tokenset, req, res, 'user-123');
+      expect(result).toBe('the-access-token');
+    });
+
+    it('should return access_token when id_token is null', () => {
+      const tokenset = {
+        id_token: null,
+        access_token: 'the-access-token',
+        refresh_token: 'the-refresh-token',
+      };
+      const req = mockRequest();
+      const res = mockResponse();
+
+      const result = setOpenIDAuthTokens(tokenset, req, res, 'user-123');
+      expect(result).toBe('the-access-token');
+    });
+
+    it('should return id_token even when id_token and access_token differ', () => {
+      const tokenset = {
+        id_token: 'id-token-jwt-signed-by-idp',
+        access_token: 'opaque-graph-api-token',
+        refresh_token: 'refresh-token',
+      };
+      const req = mockRequest();
+      const res = mockResponse();
+
+      const result = setOpenIDAuthTokens(tokenset, req, res, 'user-123');
+      expect(result).toBe('id-token-jwt-signed-by-idp');
+      expect(result).not.toBe('opaque-graph-api-token');
+    });
+  });
+
+  describe('session token storage', () => {
+    it('should store the original access_token in session (not id_token)', () => {
+      const tokenset = {
+        id_token: 'the-id-token',
+        access_token: 'the-access-token',
+        refresh_token: 'the-refresh-token',
+      };
+      const req = mockRequest();
+      const res = mockResponse();
+
+      setOpenIDAuthTokens(tokenset, req, res, 'user-123');
+
+      expect(req.session.openidTokens.accessToken).toBe('the-access-token');
+      expect(req.session.openidTokens.refreshToken).toBe('the-refresh-token');
+    });
+  });
+
+  describe('cookie secure flag', () => {
+    it('should call shouldUseSecureCookie for every cookie set', () => {
+      const tokenset = {
+        id_token: 'the-id-token',
+        access_token: 'the-access-token',
+        refresh_token: 'the-refresh-token',
+      };
+      const req = mockRequest();
+      const res = mockResponse();
+
+      setOpenIDAuthTokens(tokenset, req, res, 'user-123');
+
+      // token_provider + openid_user_id (session path, so no refreshToken/openid_access_token cookies)
+      const secureCalls = shouldUseSecureCookie.mock.calls.length;
+      expect(secureCalls).toBeGreaterThanOrEqual(2);
+
+      // Verify all cookies use the result of shouldUseSecureCookie
+      for (const [, cookie] of Object.entries(res._cookies)) {
+        expect(cookie.options.secure).toBe(false);
+      }
+    });
+
+    it('should set secure: true when shouldUseSecureCookie returns true', () => {
+      shouldUseSecureCookie.mockReturnValue(true);
+
+      const tokenset = {
+        id_token: 'the-id-token',
+        access_token: 'the-access-token',
+        refresh_token: 'the-refresh-token',
+      };
+      const req = mockRequest();
+      const res = mockResponse();
+
+      setOpenIDAuthTokens(tokenset, req, res, 'user-123');
+
+      for (const [, cookie] of Object.entries(res._cookies)) {
+        expect(cookie.options.secure).toBe(true);
+      }
+    });
+
+    it('should use shouldUseSecureCookie for cookie fallback path (no session)', () => {
+      shouldUseSecureCookie.mockReturnValue(false);
+
+      const tokenset = {
+        id_token: 'the-id-token',
+        access_token: 'the-access-token',
+        refresh_token: 'the-refresh-token',
+      };
+      const req = { session: null };
+      const res = mockResponse();
+
+      setOpenIDAuthTokens(tokenset, req, res, 'user-123');
+
+      // In the cookie fallback path, we get: refreshToken, openid_access_token, token_provider, openid_user_id
+      expect(res.cookie).toHaveBeenCalledWith(
+        'refreshToken',
+        expect.any(String),
+        expect.objectContaining({ secure: false }),
+      );
+      expect(res.cookie).toHaveBeenCalledWith(
+        'openid_access_token',
+        expect.any(String),
+        expect.objectContaining({ secure: false }),
+      );
+      expect(res.cookie).toHaveBeenCalledWith(
+        'token_provider',
+        'openid',
+        expect.objectContaining({ secure: false }),
+      );
+    });
+  });
+
+  describe('edge cases', () => {
+    it('should return undefined when tokenset is null', () => {
+      const req = mockRequest();
+      const res = mockResponse();
+      const result = setOpenIDAuthTokens(null, req, res, 'user-123');
+      expect(result).toBeUndefined();
+    });
+
+    it('should return undefined when access_token is missing', () => {
+      const tokenset = { refresh_token: 'refresh' };
+      const req = mockRequest();
+      const res = mockResponse();
+      const result = setOpenIDAuthTokens(tokenset, req, res, 'user-123');
+      expect(result).toBeUndefined();
+    });
+
+    it('should return undefined when no refresh token is available', () => {
+      const tokenset = { access_token: 'access', id_token: 'id' };
+      const req = mockRequest();
+      const res = mockResponse();
+      const result = setOpenIDAuthTokens(tokenset, req, res, 'user-123');
+      expect(result).toBeUndefined();
+    });
+
+    it('should use existingRefreshToken when tokenset has no refresh_token', () => {
+      const tokenset = {
+        id_token: 'the-id-token',
+        access_token: 'the-access-token',
+      };
+      const req = mockRequest();
+      const res = mockResponse();
+
+      const result = setOpenIDAuthTokens(tokenset, req, res, 'user-123', 'existing-refresh');
+      expect(result).toBe('the-id-token');
+      expect(req.session.openidTokens.refreshToken).toBe('existing-refresh');
+    });
+  });
+});
diff --git a/api/server/socialLogins.js b/api/server/socialLogins.js
index cf67fa9436..a84c33bd52 100644
--- a/api/server/socialLogins.js
+++ b/api/server/socialLogins.js
@@ -1,7 +1,7 @@
 const passport = require('passport');
 const session = require('express-session');
-const { isEnabled } = require('@librechat/api');
 const { CacheKeys } = require('librechat-data-provider');
+const { isEnabled, shouldUseSecureCookie } = require('@librechat/api');
 const { logger, DEFAULT_SESSION_EXPIRY } = require('@librechat/data-schemas');
 const {
   openIdJwtLogin,
@@ -15,38 +15,6 @@ const {
 } = require('~/strategies');
 const { getLogStores } = require('~/cache');
 
-/**
- * Determines if secure cookies should be used.
- * Only use secure cookies in production when not on localhost.
- * @returns {boolean}
- */
-function shouldUseSecureCookie() {
-  const isProduction = process.env.NODE_ENV === 'production';
-  const domainServer = process.env.DOMAIN_SERVER || '';
-
-  let hostname = '';
-  if (domainServer) {
-    try {
-      const normalized = /^https?:\/\//i.test(domainServer)
-        ? domainServer
-        : `http://${domainServer}`;
-      const url = new URL(normalized);
-      hostname = (url.hostname || '').toLowerCase();
-    } catch {
-      // Fallback: treat DOMAIN_SERVER directly as a hostname-like string
-      hostname = domainServer.toLowerCase();
-    }
-  }
-
-  const isLocalhost =
-    hostname === 'localhost' ||
-    hostname === '127.0.0.1' ||
-    hostname === '::1' ||
-    hostname.endsWith('.localhost');
-
-  return isProduction && !isLocalhost;
-}
-
 /**
  * Configures OpenID Connect for the application.
  * @param {Express.Application} app - The Express application instance.
diff --git a/client/src/components/SidePanel/Agents/AgentPanel.tsx b/client/src/components/SidePanel/Agents/AgentPanel.tsx
index f74dcfddcc..890488e88d 100644
--- a/client/src/components/SidePanel/Agents/AgentPanel.tsx
+++ b/client/src/components/SidePanel/Agents/AgentPanel.tsx
@@ -1,7 +1,7 @@
-import { Plus } from 'lucide-react';
 import React, { useMemo, useCallback, useRef, useState } from 'react';
+import { Plus } from 'lucide-react';
 import { Button, useToastContext } from '@librechat/client';
-import { useWatch, useForm, FormProvider, type FieldNamesMarkedBoolean } from 'react-hook-form';
+import { useWatch, useForm, FormProvider } from 'react-hook-form';
 import { useGetModelsQuery } from 'librechat-data-provider/react-query';
 import {
   Tools,
@@ -11,8 +11,10 @@ import {
   PermissionBits,
   isAssistantsEndpoint,
 } from 'librechat-data-provider';
-import type { AgentForm, StringOption } from '~/common';
+import type { FieldNamesMarkedBoolean } from 'react-hook-form';
 import type { Agent } from 'librechat-data-provider';
+import type { TranslationKeys } from '~/hooks/useLocalize';
+import type { AgentForm, StringOption } from '~/common';
 import {
   useCreateAgentMutation,
   useUpdateAgentMutation,
@@ -23,7 +25,6 @@ import {
 import { createProviderOption, getDefaultAgentFormValues } from '~/utils';
 import { useResourcePermissions } from '~/hooks/useResourcePermissions';
 import { useSelectAgent, useLocalize, useAuthContext } from '~/hooks';
-import type { TranslationKeys } from '~/hooks/useLocalize';
 import { useAgentPanelContext } from '~/Providers/AgentPanelContext';
 import AgentPanelSkeleton from './AgentPanelSkeleton';
 import AdvancedPanel from './Advanced/AdvancedPanel';
diff --git a/packages/api/src/oauth/csrf.spec.ts b/packages/api/src/oauth/csrf.spec.ts
new file mode 100644
index 0000000000..b56f1fd38f
--- /dev/null
+++ b/packages/api/src/oauth/csrf.spec.ts
@@ -0,0 +1,99 @@
+import { shouldUseSecureCookie } from './csrf';
+
+describe('shouldUseSecureCookie', () => {
+  const originalEnv = process.env;
+
+  beforeEach(() => {
+    process.env = { ...originalEnv };
+  });
+
+  afterAll(() => {
+    process.env = originalEnv;
+  });
+
+  it('should return true in production with a non-localhost domain', () => {
+    process.env.NODE_ENV = 'production';
+    process.env.DOMAIN_SERVER = 'https://myapp.example.com';
+    expect(shouldUseSecureCookie()).toBe(true);
+  });
+
+  it('should return false in development regardless of domain', () => {
+    process.env.NODE_ENV = 'development';
+    process.env.DOMAIN_SERVER = 'https://myapp.example.com';
+    expect(shouldUseSecureCookie()).toBe(false);
+  });
+
+  it('should return false when NODE_ENV is not set', () => {
+    delete process.env.NODE_ENV;
+    process.env.DOMAIN_SERVER = 'https://myapp.example.com';
+    expect(shouldUseSecureCookie()).toBe(false);
+  });
+
+  describe('localhost detection in production', () => {
+    beforeEach(() => {
+      process.env.NODE_ENV = 'production';
+    });
+
+    it('should return false for http://localhost:3080', () => {
+      process.env.DOMAIN_SERVER = 'http://localhost:3080';
+      expect(shouldUseSecureCookie()).toBe(false);
+    });
+
+    it('should return false for https://localhost:3080', () => {
+      process.env.DOMAIN_SERVER = 'https://localhost:3080';
+      expect(shouldUseSecureCookie()).toBe(false);
+    });
+
+    it('should return false for http://localhost (no port)', () => {
+      process.env.DOMAIN_SERVER = 'http://localhost';
+      expect(shouldUseSecureCookie()).toBe(false);
+    });
+
+    it('should return false for http://127.0.0.1:3080', () => {
+      process.env.DOMAIN_SERVER = 'http://127.0.0.1:3080';
+      expect(shouldUseSecureCookie()).toBe(false);
+    });
+
+    it('should return true for http://[::1]:3080 (IPv6 loopback — not detected due to URL bracket parsing)', () => {
+      // Known limitation: new URL('http://[::1]:3080').hostname returns '[::1]' (with brackets)
+      // but the check compares against '::1' (without brackets). IPv6 localhost is rare in practice.
+      process.env.DOMAIN_SERVER = 'http://[::1]:3080';
+      expect(shouldUseSecureCookie()).toBe(true);
+    });
+
+    it('should return false for subdomain of localhost', () => {
+      process.env.DOMAIN_SERVER = 'http://app.localhost:3080';
+      expect(shouldUseSecureCookie()).toBe(false);
+    });
+
+    it('should return true for a domain containing "localhost" as a substring but not as hostname', () => {
+      process.env.DOMAIN_SERVER = 'https://notlocalhost.example.com';
+      expect(shouldUseSecureCookie()).toBe(true);
+    });
+
+    it('should return true for a regular production domain', () => {
+      process.env.DOMAIN_SERVER = 'https://chat.example.com';
+      expect(shouldUseSecureCookie()).toBe(true);
+    });
+
+    it('should return true when DOMAIN_SERVER is empty (conservative default)', () => {
+      process.env.DOMAIN_SERVER = '';
+      expect(shouldUseSecureCookie()).toBe(true);
+    });
+
+    it('should return true when DOMAIN_SERVER is not set (conservative default)', () => {
+      delete process.env.DOMAIN_SERVER;
+      expect(shouldUseSecureCookie()).toBe(true);
+    });
+
+    it('should handle DOMAIN_SERVER without protocol prefix', () => {
+      process.env.DOMAIN_SERVER = 'localhost:3080';
+      expect(shouldUseSecureCookie()).toBe(false);
+    });
+
+    it('should handle case-insensitive hostnames', () => {
+      process.env.DOMAIN_SERVER = 'http://LOCALHOST:3080';
+      expect(shouldUseSecureCookie()).toBe(false);
+    });
+  });
+});
diff --git a/packages/api/src/oauth/csrf.ts b/packages/api/src/oauth/csrf.ts
index 5bf0566b45..6ed63968d1 100644
--- a/packages/api/src/oauth/csrf.ts
+++ b/packages/api/src/oauth/csrf.ts
@@ -8,7 +8,37 @@ export const OAUTH_SESSION_COOKIE = 'oauth_session';
 export const OAUTH_SESSION_MAX_AGE = 24 * 60 * 60 * 1000;
 export const OAUTH_SESSION_COOKIE_PATH = '/api';
 
-const isProduction = process.env.NODE_ENV === 'production';
+/**
+ * Determines if secure cookies should be used.
+ * Returns `true` in production unless the server is running on localhost (HTTP).
+ * This allows cookies to work on `http://localhost` during local development
+ * even when `NODE_ENV=production` (common in Docker Compose setups).
+ */
+export function shouldUseSecureCookie(): boolean {
+  const isProduction = process.env.NODE_ENV === 'production';
+  const domainServer = process.env.DOMAIN_SERVER || '';
+
+  let hostname = '';
+  if (domainServer) {
+    try {
+      const normalized = /^https?:\/\//i.test(domainServer)
+        ? domainServer
+        : `http://${domainServer}`;
+      const url = new URL(normalized);
+      hostname = (url.hostname || '').toLowerCase();
+    } catch {
+      hostname = domainServer.toLowerCase();
+    }
+  }
+
+  const isLocalhost =
+    hostname === 'localhost' ||
+    hostname === '127.0.0.1' ||
+    hostname === '::1' ||
+    hostname.endsWith('.localhost');
+
+  return isProduction && !isLocalhost;
+}
 
 /** Generates an HMAC-based token for OAuth CSRF protection */
 export function generateOAuthCsrfToken(flowId: string, secret?: string): string {
@@ -23,7 +53,7 @@ export function generateOAuthCsrfToken(flowId: string, secret?: string): string
 export function setOAuthCsrfCookie(res: Response, flowId: string, cookiePath: string): void {
   res.cookie(OAUTH_CSRF_COOKIE, generateOAuthCsrfToken(flowId), {
     httpOnly: true,
-    secure: isProduction,
+    secure: shouldUseSecureCookie(),
     sameSite: 'lax',
     maxAge: OAUTH_CSRF_MAX_AGE,
     path: cookiePath,
@@ -68,7 +98,7 @@ export function setOAuthSession(req: Request, res: Response, next: NextFunction)
 export function setOAuthSessionCookie(res: Response, userId: string): void {
   res.cookie(OAUTH_SESSION_COOKIE, generateOAuthCsrfToken(userId), {
     httpOnly: true,
-    secure: isProduction,
+    secure: shouldUseSecureCookie(),
     sameSite: 'lax',
     maxAge: OAUTH_SESSION_MAX_AGE,
     path: OAUTH_SESSION_COOKIE_PATH,