diff --git a/packages/core/src/common/openai-client.ts b/packages/core/src/common/openai-client.ts
index d3b56c08..670ec536 100644
--- a/packages/core/src/common/openai-client.ts
+++ b/packages/core/src/common/openai-client.ts
@@ -51,7 +51,7 @@ export function createOpenAIClient(projectRoot: string = process.cwd()): {
     };
   }
 
-  const cacheKey = `${settings.apiKey}::${settings.baseURL}`;
+  const cacheKey = `${settings.apiKey}::${settings.baseURL}::${settings.timeoutMs ?? ""}::${settings.maxRetries ?? ""}`;
   if (cachedOpenAI && cachedOpenAIKey === cacheKey) {
     return {
       client: cachedOpenAI,
@@ -72,6 +72,8 @@ export function createOpenAIClient(projectRoot: string = process.cwd()): {
   cachedOpenAI = new OpenAI({
     apiKey: settings.apiKey,
     baseURL: settings.baseURL || undefined,
+    timeout: settings.timeoutMs,
+    maxRetries: settings.maxRetries,
     // eslint-disable-next-line @typescript-eslint/no-explicit-any
     fetch: (url: any, init: any) => undiciFetch(url, { ...init, dispatcher: keepAliveAgent }),
   });
diff --git a/packages/core/src/settings.ts b/packages/core/src/settings.ts
index da0e2d94..ca3335dc 100644
--- a/packages/core/src/settings.ts
+++ b/packages/core/src/settings.ts
@@ -86,6 +86,8 @@ export type DeepcodingSettings = {
   autoCompactWindow?: number | string;
   model?: string;
   temperature?: number;
+  timeoutMs?: number;
+  maxRetries?: number;
   thinkingEnabled?: boolean;
   reasoningEffort?: ReasoningEffort;
   debugLogEnabled?: boolean;
@@ -106,6 +108,8 @@ export type ResolvedDeepcodingSettings = {
   contextWindow: number;
   autoCompactWindow: number;
   temperature?: number;
+  timeoutMs?: number;
+  maxRetries?: number;
   thinkingEnabled: boolean;
   reasoningEffort: ReasoningEffort;
   debugLogEnabled: boolean;
@@ -199,6 +203,52 @@ function trimString(value: unknown): string {
   return typeof value === "string" ? value.trim() : "";
 }
 
+function parsePositiveInt(value: unknown): number | undefined {
+  if (typeof value === "number" && Number.isSafeInteger(value) && value > 0) {
+    return value;
+  }
+  if (typeof value === "string" && value.trim()) {
+    const parsed = Number(value.trim());
+    if (Number.isSafeInteger(parsed) && parsed > 0) {
+      return parsed;
+    }
+  }
+  return undefined;
+}
+
+function parseNonNegativeInt(value: unknown): number | undefined {
+  if (typeof value === "number" && Number.isSafeInteger(value) && value >= 0) {
+    return value;
+  }
+  if (typeof value === "string" && value.trim()) {
+    const parsed = Number(value.trim());
+    if (Number.isSafeInteger(parsed) && parsed >= 0) {
+      return parsed;
+    }
+  }
+  return undefined;
+}
+
+function firstPositiveInt(...values: unknown[]): number | undefined {
+  for (const value of values) {
+    const parsed = parsePositiveInt(value);
+    if (parsed !== undefined) {
+      return parsed;
+    }
+  }
+  return undefined;
+}
+
+function firstNonNegativeInt(...values: unknown[]): number | undefined {
+  for (const value of values) {
+    const parsed = parseNonNegativeInt(value);
+    if (parsed !== undefined) {
+      return parsed;
+    }
+  }
+  return undefined;
+}
+
 const VALID_PERMISSION_SCOPES = new Set<PermissionScope>([
   "read-in-cwd",
   "read-out-cwd",
@@ -561,6 +611,9 @@ export function resolveSettingsSources(
     parseTemperature(userSettings?.temperature) ??
     parseTemperature(userEnv.TEMPERATURE);
 
+  const timeoutMs = firstPositiveInt(systemEnv.TIMEOUT_MS, projectSettings?.timeoutMs, userSettings?.timeoutMs);
+  const maxRetries = firstNonNegativeInt(systemEnv.MAX_RETRIES, projectSettings?.maxRetries, userSettings?.maxRetries);
+
   const debugLogEnabled =
     parseBoolean(systemEnv.DEBUG_LOG_ENABLED) ??
     parseBoolean(projectSettings?.debugLogEnabled) ??
@@ -593,6 +646,8 @@ export function resolveSettingsSources(
     contextWindow,
     autoCompactWindow,
     temperature,
+    timeoutMs,
+    maxRetries,
     thinkingEnabled,
     reasoningEffort,
     debugLogEnabled,
diff --git a/packages/core/src/tests/settings-and-notify.test.ts b/packages/core/src/tests/settings-and-notify.test.ts
index 93e8dc29..96e13eb0 100644
--- a/packages/core/src/tests/settings-and-notify.test.ts
+++ b/packages/core/src/tests/settings-and-notify.test.ts
@@ -11,6 +11,26 @@ import { applyModelConfigSelection, resolveSettings, resolveSettingsSources } fr
 
 const TEST_PROCESS_ENV = {};
 
+test("resolveSettings reads timeoutMs and maxRetries (#13)", () => {
+  const resolved = resolveSettings(
+    { timeoutMs: 120000, maxRetries: 3, env: { API_KEY: "sk-test" } },
+    { model: "default-model", baseURL: "https://default.example.com" },
+    TEST_PROCESS_ENV
+  );
+  assert.equal(resolved.timeoutMs, 120000);
+  assert.equal(resolved.maxRetries, 3);
+});
+
+test("resolveSettings prefers env TIMEOUT_MS and MAX_RETRIES over settings (#13)", () => {
+  const resolved = resolveSettings(
+    { timeoutMs: 120000, maxRetries: 3, env: { API_KEY: "sk-test" } },
+    { model: "default-model", baseURL: "https://default.example.com" },
+    { DEEPCODE_TIMEOUT_MS: "90000", DEEPCODE_MAX_RETRIES: "5" }
+  );
+  assert.equal(resolved.timeoutMs, 90000);
+  assert.equal(resolved.maxRetries, 5);
+});
+
 test("resolveSettings reads top-level thinkingEnabled, notify, and webSearchTool", () => {
   const resolved = resolveSettings(
     {