diff --git a/components/runners/ambient-runner/pyproject.toml b/components/runners/ambient-runner/pyproject.toml
index 71acf9812..9bed1a504 100644
--- a/components/runners/ambient-runner/pyproject.toml
+++ b/components/runners/ambient-runner/pyproject.toml
@@ -24,7 +24,7 @@ dependencies = [
 [project.optional-dependencies]
 claude = [
   "anthropic[vertex]>=0.116.0",
-  "claude-agent-sdk>=0.2.115",
+  "claude-agent-sdk>=0.2.120",
 ]
 observability = [
   "langfuse>=3.14.5",
diff --git a/components/runners/ambient-runner/uv.lock b/components/runners/ambient-runner/uv.lock
index 279b21d5a..b7cada6db 100644
--- a/components/runners/ambient-runner/uv.lock
+++ b/components/runners/ambient-runner/uv.lock
@@ -212,7 +212,7 @@ requires-dist = [
     { name = "aiohttp", specifier = ">=3.14.1" },
     { name = "ambient-runner", extras = ["claude", "observability", "mlflow-observability", "mcp-atlassian"], marker = "extra == 'all'" },
     { name = "anthropic", extras = ["vertex"], marker = "extra == 'claude'", specifier = ">=0.116.0" },
-    { name = "claude-agent-sdk", marker = "extra == 'claude'", specifier = ">=0.2.115" },
+    { name = "claude-agent-sdk", marker = "extra == 'claude'", specifier = ">=0.2.120" },
     { name = "cryptography", specifier = ">=48.0.1" },
     { name = "fastapi", specifier = ">=0.135.1" },
     { name = "grpcio", specifier = ">=1.60.0" },
@@ -539,20 +539,20 @@ wheels = [
 
 [[package]]
 name = "claude-agent-sdk"
-version = "0.2.115"
+version = "0.2.120"
 source = { registry = "https://pypi.org/simple" }
 dependencies = [
     { name = "anyio" },
     { name = "mcp" },
     { name = "sniffio" },
 ]
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 [[package]]