diff --git a/workspaces/ballerina/ballerina-extension/src/features/ai/agent/tools/diagnostics-utils.ts b/workspaces/ballerina/ballerina-extension/src/features/ai/agent/tools/diagnostics-utils.ts
index 283a599c05..6ccd63cb90 100644
--- a/workspaces/ballerina/ballerina-extension/src/features/ai/agent/tools/diagnostics-utils.ts
+++ b/workspaces/ballerina/ballerina-extension/src/features/ai/agent/tools/diagnostics-utils.ts
@@ -4,6 +4,8 @@ import { StateMachine } from '../../../../stateMachine';
 import * as path from 'path';
 import { Uri } from 'vscode';
 
+export const DIAGNOSTICS_TOOL_NAME = "getCompilationErrors";
+
 /**
  * Diagnostic entry enriched with resolving hints
  */
@@ -128,6 +130,24 @@ export async function checkCompilationErrors(
             };
         }
 
+        // HACK: When the generated code includes `import ballerinax/client.config;` (without the quoted
+        // identifier), the language server returns diagnostics with the module name stripped to
+        // `ballerinax/.config as config` — omitting "client". As a workaround, we detect this and
+        // instruct the agent to use the correct quoted form `import ballerinax/'client.config;`
+        // instead of attempting to resolve the dependency automatically.
+        const hasInvalidClientModuleImport = enrichedDiagnostics.some(
+            d => d.code === "BCE2003" && d.message.includes("ballerinax/.config as config")
+        );
+        if (hasInvalidClientModuleImport) {
+            console.log(`[DiagnosticsUtils] Detected invalid client module import 'ballerinax/client.config'.`);
+            return {
+                diagnostics: enrichedDiagnostics,
+                message: `Found a module resolution error: the import 'import ballerinax/client.config;' is invalid. ` +
+                    `Fix this by replacing the import statement with 'import ballerinax/'client.config;'. ` +
+                    `After applying the fix, call the ${DIAGNOSTICS_TOOL_NAME} tool again to verify there are no remaining errors.`
+            };
+        }
+
         console.log(`[DiagnosticsUtils] Enriched Diagnostics:`, enrichedDiagnostics);
         return {
             diagnostics: enrichedDiagnostics,
diff --git a/workspaces/ballerina/ballerina-extension/src/rpc-managers/ai-panel/repair-utils.ts b/workspaces/ballerina/ballerina-extension/src/rpc-managers/ai-panel/repair-utils.ts
index d9d3ffe027..7d66621943 100644
--- a/workspaces/ballerina/ballerina-extension/src/rpc-managers/ai-panel/repair-utils.ts
+++ b/workspaces/ballerina/ballerina-extension/src/rpc-managers/ai-panel/repair-utils.ts
@@ -91,7 +91,12 @@ export async function isModuleNotFoundDiagsExist(diagnosticsResult: Diagnostics[
 
     // Process each unique diagnostic only once
     let projectModified = false;
-    for (const [_, { uri }] of uniqueDiagnosticMap.entries()) {
+    for (const [message, { uri }] of uniqueDiagnosticMap.entries()) {
+        // Skip resolving dependencies for the invalid config import pattern
+        if (message.includes("ballerinax/.config as config")) {
+            continue;
+        }
+
         const dependenciesResponse = await langClient.resolveModuleDependencies({
             documentIdentifier: {
                 uri: uri