diff --git a/docs/custom-providers.md b/docs/custom-providers.md
index 90c4dc07c3..1f872b9d1b 100644
--- a/docs/custom-providers.md
+++ b/docs/custom-providers.md
@@ -714,7 +714,7 @@ Each entry in the `models` array:
 
 ### Claude settings.json model discovery
 
-The built-in `claude` provider appends concrete model IDs from `~/.claude/settings.json` to its first-party Claude model list. Paseo reads the top-level `model` field and these `env` keys: `ANTHROPIC_MODEL`, `ANTHROPIC_SMALL_FAST_MODEL`, `ANTHROPIC_DEFAULT_OPUS_MODEL`, `ANTHROPIC_DEFAULT_SONNET_MODEL`, and `ANTHROPIC_DEFAULT_HAIKU_MODEL`.
+The built-in `claude` provider appends concrete model IDs from `~/.claude/settings.json` to its first-party Claude model list. Paseo reads the top-level `model` field and these `env` keys: `ANTHROPIC_MODEL`, `ANTHROPIC_SMALL_FAST_MODEL`, `ANTHROPIC_DEFAULT_FABLE_MODEL`, `ANTHROPIC_DEFAULT_OPUS_MODEL`, `ANTHROPIC_DEFAULT_SONNET_MODEL`, and `ANTHROPIC_DEFAULT_HAIKU_MODEL`.
 
 This lets users who already configured Claude Code for Bedrock, OpenRouter, ollama, Z.AI, or another Anthropic-compatible gateway select the exact model ID in Paseo. Explicit model IDs are passed unchanged to Claude Code, even when the same string is a compatibility alias for a built-in model. When `agents.providers.claude.models` is set it **replaces** both the hardcoded first-party Claude list and any settings.json-discovered entries; use `agents.providers.claude.additionalModels` to keep the first-party list and append curated entries on top.
 
diff --git a/packages/server/src/server/agent/providers/claude/models.test.ts b/packages/server/src/server/agent/providers/claude/models.test.ts
index a497826f73..5a10980fbf 100644
--- a/packages/server/src/server/agent/providers/claude/models.test.ts
+++ b/packages/server/src/server/agent/providers/claude/models.test.ts
@@ -210,6 +210,7 @@ describe("ClaudeAgentClient.fetchCatalog", () => {
       env: {
         ANTHROPIC_MODEL: "openrouter/anthropic/claude-sonnet-4.5",
         ANTHROPIC_SMALL_FAST_MODEL: "ollama/qwen3-coder",
+        ANTHROPIC_DEFAULT_FABLE_MODEL: "claude-fable-5-1[1M]",
         ANTHROPIC_DEFAULT_OPUS_MODEL: "bedrock-opus-from-env",
         ANTHROPIC_DEFAULT_SONNET_MODEL: "glm-5.1",
         ANTHROPIC_DEFAULT_HAIKU_MODEL: "glm-5",
@@ -244,6 +245,12 @@ describe("ClaudeAgentClient.fetchCatalog", () => {
         label: "ollama/qwen3-coder",
         description: "From Claude settings.json env.ANTHROPIC_SMALL_FAST_MODEL",
       },
+      {
+        provider: "claude",
+        id: "claude-fable-5-1[1M]",
+        label: "claude-fable-5-1[1M]",
+        description: "From Claude settings.json env.ANTHROPIC_DEFAULT_FABLE_MODEL",
+      },
       {
         provider: "claude",
         id: "bedrock-opus-from-env",
@@ -263,6 +270,8 @@ describe("ClaudeAgentClient.fetchCatalog", () => {
         description: "From Claude settings.json env.ANTHROPIC_DEFAULT_HAIKU_MODEL",
       },
     ]);
+    expect(models.filter((model) => model.id === "claude-fable-5-1[1M]")).toHaveLength(1);
+    expect(models.some((model) => model.id === "claude-fable-5-1")).toBe(true);
   });
 
   it("falls back to hardcoded models when settings.json is missing", async () => {
diff --git a/packages/server/src/server/agent/providers/claude/models.ts b/packages/server/src/server/agent/providers/claude/models.ts
index c24e5ad36c..603f21c92c 100644
--- a/packages/server/src/server/agent/providers/claude/models.ts
+++ b/packages/server/src/server/agent/providers/claude/models.ts
@@ -14,6 +14,7 @@ import {
 const CLAUDE_SETTINGS_MODEL_ENV_KEYS = [
   "ANTHROPIC_MODEL",
   "ANTHROPIC_SMALL_FAST_MODEL",
+  "ANTHROPIC_DEFAULT_FABLE_MODEL",
   "ANTHROPIC_DEFAULT_OPUS_MODEL",
   "ANTHROPIC_DEFAULT_SONNET_MODEL",
   "ANTHROPIC_DEFAULT_HAIKU_MODEL",