diff --git a/core/Azure.Mcp.Core/src/Helpers/CommandHelper.cs b/core/Azure.Mcp.Core/src/Helpers/CommandHelper.cs
index dace31fb7b..c739d5515a 100644
--- a/core/Azure.Mcp.Core/src/Helpers/CommandHelper.cs
+++ b/core/Azure.Mcp.Core/src/Helpers/CommandHelper.cs
@@ -26,11 +26,9 @@ public static bool HasSubscriptionAvailable(CommandResult commandResult)
             var subscriptionValue = parseResult.GetValueOrDefault<string>(OptionDefinitions.Common.Subscription.Name);
 
             var envSubscription = EnvironmentHelpers.GetAzureSubscriptionId();
-            return (string.IsNullOrEmpty(subscriptionValue) || IsPlaceholder(subscriptionValue)) && !string.IsNullOrEmpty(envSubscription)
+            return string.IsNullOrEmpty(subscriptionValue) && !string.IsNullOrEmpty(envSubscription)
                 ? envSubscription
                 : subscriptionValue;
         }
-
-        private static bool IsPlaceholder(string value) => value.Contains("subscription") || value.Contains("default");
     }
 }
diff --git a/core/Azure.Mcp.Core/src/Services/Azure/Subscription/SubscriptionService.cs b/core/Azure.Mcp.Core/src/Services/Azure/Subscription/SubscriptionService.cs
index 09a1df6f69..1660422ccb 100644
--- a/core/Azure.Mcp.Core/src/Services/Azure/Subscription/SubscriptionService.cs
+++ b/core/Azure.Mcp.Core/src/Services/Azure/Subscription/SubscriptionService.cs
@@ -47,8 +47,23 @@ public async Task<SubscriptionResource> GetSubscription(string subscription, str
     {
         ValidateRequiredParameters((nameof(subscription), subscription));
 
-        // Get the subscription ID first, whether the input is a name or ID
-        var subscriptionId = await GetSubscriptionId(subscription, tenant, retryPolicy, cancellationToken);
+        string subscriptionId;
+        try
+        {
+            // Get the subscription ID first, whether the input is a name or ID
+            subscriptionId = await GetSubscriptionId(subscription, tenant, retryPolicy, cancellationToken);
+        }
+        catch
+        {
+            // If the subscription lookup failed, try environment variable as fallback
+            var envSubscription = Core.Helpers.EnvironmentHelpers.GetAzureSubscriptionId();
+            if (string.IsNullOrEmpty(envSubscription))
+            {
+                throw; // Re-throw the original exception if no environment variable is available
+            }
+
+            subscriptionId = await GetSubscriptionId(envSubscription, tenant, retryPolicy, cancellationToken);
+        }
 
         // Use subscription ID for cache key
         var cacheKey = string.IsNullOrEmpty(tenant)
diff --git a/core/Azure.Mcp.Core/tests/Azure.Mcp.Core.UnitTests/Services/Azure/Subscription/SubscriptionServiceTests.cs b/core/Azure.Mcp.Core/tests/Azure.Mcp.Core.UnitTests/Services/Azure/Subscription/SubscriptionServiceTests.cs
new file mode 100644
index 0000000000..fbec58454c
--- /dev/null
+++ b/core/Azure.Mcp.Core/tests/Azure.Mcp.Core.UnitTests/Services/Azure/Subscription/SubscriptionServiceTests.cs
@@ -0,0 +1,124 @@
+// Copyright (c) Microsoft Corporation.
+// Licensed under the MIT License.
+
+using Azure.Mcp.Core.Helpers;
+using Azure.Mcp.Core.Options;
+using Azure.Mcp.Core.Services.Azure.Subscription;
+using Azure.Mcp.Core.Services.Azure.Tenant;
+using Azure.Mcp.Core.Services.Caching;
+using NSubstitute;
+using Xunit;
+
+namespace Azure.Mcp.Core.UnitTests.Services.Azure.Subscription;
+
+public class SubscriptionServiceTests : IDisposable
+{
+    private const string TestSubscriptionId = "12345678-1234-1234-1234-123456789012";
+    private const string TestSubscriptionName = "Test Subscription";
+    private const string EnvVarSubscriptionId = "87654321-4321-4321-4321-210987654321";
+
+    private readonly ICacheService _cacheService;
+    private readonly ITenantService _tenantService;
+    private readonly SubscriptionService _subscriptionService;
+    private readonly string? _originalEnvValue;
+
+    public SubscriptionServiceTests()
+    {
+        // Save original environment variable
+        _originalEnvValue = Environment.GetEnvironmentVariable("AZURE_SUBSCRIPTION_ID");
+
+        _cacheService = Substitute.For<ICacheService>();
+        _tenantService = Substitute.For<ITenantService>();
+        _subscriptionService = new SubscriptionService(_cacheService, _tenantService);
+
+        // Setup default cache behavior to return null (cache miss)
+        _cacheService.GetAsync<object>(Arg.Any<string>(), Arg.Any<string>(), Arg.Any<TimeSpan>())
+            .Returns((object?)null);
+    }
+
+    public void Dispose()
+    {
+        // Restore original environment variable
+        if (_originalEnvValue != null)
+        {
+            Environment.SetEnvironmentVariable("AZURE_SUBSCRIPTION_ID", _originalEnvValue);
+        }
+        else
+        {
+            Environment.SetEnvironmentVariable("AZURE_SUBSCRIPTION_ID", null);
+        }
+    }
+
+    [Fact]
+    public void IsSubscriptionId_ValidGuid_ReturnsTrue()
+    {
+        // Act
+        var result = _subscriptionService.IsSubscriptionId(TestSubscriptionId);
+
+        // Assert
+        Assert.True(result);
+    }
+
+    [Fact]
+    public void IsSubscriptionId_InvalidGuid_ReturnsFalse()
+    {
+        // Act
+        var result = _subscriptionService.IsSubscriptionId("not-a-guid");
+
+        // Assert
+        Assert.False(result);
+    }
+
+    [Fact]
+    public void IsSubscriptionId_SubscriptionName_ReturnsFalse()
+    {
+        // Act
+        var result = _subscriptionService.IsSubscriptionId(TestSubscriptionName);
+
+        // Assert
+        Assert.False(result);
+    }
+
+    [Fact]
+    public void EnvironmentVariableFallback_IsAvailable()
+    {
+        // Arrange
+        Environment.SetEnvironmentVariable("AZURE_SUBSCRIPTION_ID", EnvVarSubscriptionId);
+
+        // Act
+        var envSubscription = EnvironmentHelpers.GetAzureSubscriptionId();
+
+        // Assert
+        Assert.Equal(EnvVarSubscriptionId, envSubscription);
+    }
+
+    [Fact]
+    public void EnvironmentVariableFallback_WhenNotSet_ReturnsNull()
+    {
+        // Arrange
+        Environment.SetEnvironmentVariable("AZURE_SUBSCRIPTION_ID", null);
+
+        // Act
+        var envSubscription = EnvironmentHelpers.GetAzureSubscriptionId();
+
+        // Assert
+        Assert.Null(envSubscription);
+    }
+
+    [Theory]
+    [InlineData("12345678-1234-1234-1234-123456789012", true)]
+    [InlineData("00000000-0000-0000-0000-000000000000", true)]
+    [InlineData("subscription", false)]
+    [InlineData("default", false)]
+    [InlineData("My Subscription Name", false)]
+    [InlineData("test-subscription", false)]
+    public void IsSubscriptionId_VariousInputs_ReturnsExpected(string input, bool expected)
+    {
+        // Act
+        var result = _subscriptionService.IsSubscriptionId(input);
+
+        // Assert
+        Assert.Equal(expected, result);
+    }
+}
+