diff --git a/cmd/picoclaw/internal/agent/helpers.go b/cmd/picoclaw/internal/agent/helpers.go
index 746e9755e..8d4422b9f 100644
--- a/cmd/picoclaw/internal/agent/helpers.go
+++ b/cmd/picoclaw/internal/agent/helpers.go
@@ -42,10 +42,9 @@ func agentCmd(message, sessionKey, model string, debug bool) error {
 		return fmt.Errorf("error creating provider: %w", err)
 	}
 
-	// Use the resolved model ID from provider creation
-	if modelID != "" {
-		cfg.Agents.Defaults.ModelName = modelID
-	}
+	// Don't overwrite ModelName with modelID - modelID is just the protocol-stripped
+	// model identifier, but ModelName should remain as the model_list entry name
+	// for proper fallback resolution.
 
 	msgBus := bus.NewMessageBus()
 	agentLoop := agent.NewAgentLoop(cfg, msgBus, provider)
diff --git a/cmd/picoclaw/internal/gateway/helpers.go b/cmd/picoclaw/internal/gateway/helpers.go
index a06625dc9..be191d13c 100644
--- a/cmd/picoclaw/internal/gateway/helpers.go
+++ b/cmd/picoclaw/internal/gateway/helpers.go
@@ -43,10 +43,9 @@ func gatewayCmd(debug bool) error {
 		return fmt.Errorf("error creating provider: %w", err)
 	}
 
-	// Use the resolved model ID from provider creation
-	if modelID != "" {
-		cfg.Agents.Defaults.ModelName = modelID
-	}
+	// Don't overwrite ModelName with modelID - modelID is just the protocol-stripped
+	// model identifier, but ModelName should remain as the model_list entry name
+	// for proper fallback resolution.
 
 	msgBus := bus.NewMessageBus()
 	agentLoop := agent.NewAgentLoop(cfg, msgBus, provider)