diff --git a/packages/core/src/aisdk.ts b/packages/core/src/aisdk.ts
index 1579a8d9bae..5bb4be0bbf0 100644
--- a/packages/core/src/aisdk.ts
+++ b/packages/core/src/aisdk.ts
@@ -34,6 +34,7 @@ import {
 import { Auth, Endpoint, RequestExecutor, type AnyRoute } from "@opencode-ai/ai/route"
 import { ProviderShared } from "@opencode-ai/ai/protocols/shared"
 import { Cause, Context, Effect, Layer, Option, Schema, Scope, Stream } from "effect"
+import { makeParser } from "effect/unstable/encoding/Sse"
 import type { ID, Info } from "./model.js"
 import { Provider } from "./provider.js"
 import { State } from "./state.js"
@@ -65,15 +66,23 @@ function wrapSSE(res: Response, ms: number, ctl: AbortController) {
   if (!res.headers.get("content-type")?.includes("text/event-stream")) return res
 
   const reader = res.body.getReader()
+  const decoder = new TextDecoder()
+  let deadline: number | undefined
+  const parser = makeParser((event) => {
+    if (event._tag === "Event") deadline = Date.now() + ms
+  })
   const body = new ReadableStream<Uint8Array>({
     async pull(ctrl) {
+      const expires = deadline ?? Date.now() + ms
+      deadline = expires
       const part = await new Promise<Awaited<ReturnType<typeof reader.read>>>((resolve, reject) => {
+        const remaining = Math.max(0, expires - Date.now())
         const id = setTimeout(() => {
           const err = new Error("SSE read timed out")
           ctl.abort(err)
           void reader.cancel(err)
           reject(err)
-        }, ms)
+        }, remaining)
 
         reader.read().then(
           (part) => {
@@ -92,6 +101,7 @@ function wrapSSE(res: Response, ms: number, ctl: AbortController) {
         return
       }
 
+      parser.feed(decoder.decode(part.value, { stream: true }))
       ctrl.enqueue(part.value)
     },
     async cancel(reason) {
diff --git a/packages/core/test/aisdk.test.ts b/packages/core/test/aisdk.test.ts
index 5120c01826e..48cd214f294 100644
--- a/packages/core/test/aisdk.test.ts
+++ b/packages/core/test/aisdk.test.ts
@@ -1,6 +1,7 @@
 import { APICallError } from "@ai-sdk/provider"
 import type { LanguageModelV3, LanguageModelV3StreamPart } from "@ai-sdk/provider"
 import { createMistral } from "@ai-sdk/mistral"
+import { createOpenAICompatible } from "@ai-sdk/openai-compatible"
 import { AISDK } from "@opencode-ai/core/aisdk"
 import { SessionRunnerRetry } from "@opencode-ai/core/session/runner/retry"
 import { toSessionError } from "@opencode-ai/core/session/to-session-error"
@@ -412,6 +413,63 @@ it.effect("moves a tool image through the real Mistral provider as a user messag
   }),
 )
 
+it.effect("does not treat SSE comment heartbeats as model progress", () =>
+  Effect.gen(function* () {
+    const aisdk = yield* AISDK.Service
+    const encoder = new TextEncoder()
+    let heartbeat: ReturnType<typeof setInterval> | undefined
+    const customFetch = Object.assign(
+      async () =>
+        new Response(
+          new ReadableStream({
+            start(controller) {
+              controller.enqueue(
+                encoder.encode(
+                  'data: {"id":"response-1","object":"chat.completion.chunk","created":0,"model":"api-model","choices":[{"index":0,"delta":{"content":"partial"},"finish_reason":null}]}\n\n',
+                ),
+              )
+              heartbeat = setInterval(() => controller.enqueue(encoder.encode(": keepalive\n\n")), 5)
+            },
+            cancel() {
+              if (heartbeat) clearInterval(heartbeat)
+            },
+          }),
+          { headers: { "content-type": "text/event-stream" } },
+        ),
+      { preconnect: fetch.preconnect },
+    )
+    yield* aisdk.hook.sdk((event) => {
+      event.sdk = createOpenAICompatible({
+        ...event.options,
+        name: String(event.options.name),
+        baseURL: String(event.options.baseURL),
+      })
+    })
+    const resolved = yield* aisdk.model(
+      model("@ai-sdk/openai-compatible", {
+        apiKey: "test",
+        baseURL: "https://example.test/v1",
+        chunkTimeout: 25,
+        fetch: customFetch,
+      }),
+    )
+    const result = yield* LLMClient.generate(LLM.request({ model: resolved, prompt: "Hello" })).pipe(
+      Effect.provide(client),
+      Effect.result,
+      Effect.ensuring(
+        Effect.sync(() => {
+          if (heartbeat) clearInterval(heartbeat)
+        }),
+      ),
+    )
+
+    expect(result).toMatchObject({
+      _tag: "Failure",
+      failure: { reason: { message: expect.stringContaining("SSE read timed out") } },
+    })
+  }),
+)
+
 it.effect("emits malformed AI SDK tool input without executing it", () =>
   Effect.gen(function* () {
     const aisdk = yield* AISDK.Service