diff --git a/dotnet/samples/04-hosting/FoundryHostedAgents/responses/Hosted-Toolbox/Program.cs b/dotnet/samples/04-hosting/FoundryHostedAgents/responses/Hosted-Toolbox/Program.cs
index 959cc2d4f5..ec70fe3b51 100644
--- a/dotnet/samples/04-hosting/FoundryHostedAgents/responses/Hosted-Toolbox/Program.cs
+++ b/dotnet/samples/04-hosting/FoundryHostedAgents/responses/Hosted-Toolbox/Program.cs
@@ -12,7 +12,7 @@
 //                                       (injected automatically by Foundry platform at runtime)
 //
 // Optional:
-//   FOUNDRY_TOOLSET_NAME              - Name of the toolset to load (default: my-toolset)
+//   FOUNDRY_TOOLBOX_NAME              - Name of the toolset to load (default: my-toolset)
 //   FOUNDRY_AGENT_NAME                - Client name reported to MCP server
 //   FOUNDRY_AGENT_VERSION             - Client version reported to MCP server
 //   FOUNDRY_AGENT_TOOLSET_FEATURES    - Feature flags sent to Foundry proxy via header
@@ -30,7 +30,7 @@ Env.TraversePath().Load();
 string endpoint = Environment.GetEnvironmentVariable("AZURE_AI_PROJECT_ENDPOINT")
     ?? throw new InvalidOperationException("AZURE_AI_PROJECT_ENDPOINT is not set.");
 string deploymentName = Environment.GetEnvironmentVariable("AZURE_AI_MODEL_DEPLOYMENT_NAME") ?? "gpt-4o";
-string toolsetName = Environment.GetEnvironmentVariable("FOUNDRY_TOOLSET_NAME") ?? "my-toolset";
+string toolboxName = Environment.GetEnvironmentVariable("FOUNDRY_TOOLBOX_NAME") ?? "my-toolset";
 
 // Use a chained credential: try a temporary dev token first (for local Docker debugging),
 // then fall back to DefaultAzureCredential (for local dev via dotnet run / managed identity in production).
@@ -62,7 +62,7 @@ builder.Services.AddFoundryResponses(agent);
 // The toolset name must match a toolset registered in your Foundry project.
 // When FOUNDRY_AGENT_TOOLSET_ENDPOINT is absent (e.g., in local development without Foundry
 // infrastructure), startup succeeds without error and no toolbox tools are loaded.
-builder.Services.AddFoundryToolboxes(toolsetName);
+builder.Services.AddFoundryToolboxes(toolboxName);
 
 var app = builder.Build();
 app.MapFoundryResponses();
diff --git a/dotnet/src/Microsoft.Agents.AI.Foundry/Hosting/AgentFrameworkResponseHandler.cs b/dotnet/src/Microsoft.Agents.AI.Foundry/Hosting/AgentFrameworkResponseHandler.cs
index be7566d5bb..8dfd395e4c 100644
--- a/dotnet/src/Microsoft.Agents.AI.Foundry/Hosting/AgentFrameworkResponseHandler.cs
+++ b/dotnet/src/Microsoft.Agents.AI.Foundry/Hosting/AgentFrameworkResponseHandler.cs
@@ -170,7 +170,7 @@ public class AgentFrameworkResponseHandler : ResponseHandler
                 {
                     // Emit mcp_approval_request output item + incomplete for the consent URL.
                     foreach (var approvalEvent in stream.OutputItemMcpApprovalRequest(
-                        consentInfo.ToolsetName,
+                        consentInfo.ToolboxName,
                         consentInfo.ToolName,
                         consentInfo.ConsentUrl))
                     {
diff --git a/dotnet/src/Microsoft.Agents.AI.Foundry/Hosting/ConsentAwareMcpClientTool.cs b/dotnet/src/Microsoft.Agents.AI.Foundry/Hosting/ConsentAwareMcpClientAIFunction.cs
similarity index 88%
rename from dotnet/src/Microsoft.Agents.AI.Foundry/Hosting/ConsentAwareMcpClientTool.cs
rename to dotnet/src/Microsoft.Agents.AI.Foundry/Hosting/ConsentAwareMcpClientAIFunction.cs
index 467660756f..5f3ec0ed9b 100644
--- a/dotnet/src/Microsoft.Agents.AI.Foundry/Hosting/ConsentAwareMcpClientTool.cs
+++ b/dotnet/src/Microsoft.Agents.AI.Foundry/Hosting/ConsentAwareMcpClientAIFunction.cs
@@ -25,15 +25,15 @@ namespace Microsoft.Agents.AI.Foundry.Hosting;
 /// <c>mcp_approval_request</c> output item and marks the response as <c>incomplete</c>.
 /// </para>
 /// </remarks>
-internal sealed class ConsentAwareMcpClientTool : AIFunction
+internal sealed class ConsentAwareMcpClientAIFunction : AIFunction
 {
     private readonly McpClientTool _inner;
-    private readonly string _toolsetName;
+    private readonly string _toolboxName;
 
-    internal ConsentAwareMcpClientTool(McpClientTool inner, string toolsetName)
+    internal ConsentAwareMcpClientAIFunction(McpClientTool inner, string toolboxName)
     {
         this._inner = inner;
-        this._toolsetName = toolsetName;
+        this._toolboxName = toolboxName;
     }
 
     public override string Name => this._inner.Name;
@@ -59,7 +59,7 @@ internal sealed class ConsentAwareMcpClientTool : AIFunction
             var state = McpConsentContext.Current.Value;
             if (state is not null)
             {
-                state.Pending = new McpConsentInfo(this._toolsetName, this._inner.Name, ex.Message);
+                state.Pending = new McpConsentInfo(this._toolboxName, this._inner.Name, ex.Message);
                 state.CancellationSource?.Cancel();
             }
 
diff --git a/dotnet/src/Microsoft.Agents.AI.Foundry/Hosting/FoundryToolboxOptions.cs b/dotnet/src/Microsoft.Agents.AI.Foundry/Hosting/FoundryToolboxOptions.cs
index dd06a7f3fb..68ae41762e 100644
--- a/dotnet/src/Microsoft.Agents.AI.Foundry/Hosting/FoundryToolboxOptions.cs
+++ b/dotnet/src/Microsoft.Agents.AI.Foundry/Hosting/FoundryToolboxOptions.cs
@@ -10,12 +10,12 @@ namespace Microsoft.Agents.AI.Foundry.Hosting;
 public sealed class FoundryToolboxOptions
 {
     /// <summary>
-    /// Gets the list of toolset names to connect to at startup.
-    /// Each name corresponds to a toolset registered in the Foundry project.
+    /// Gets the list of toolbox names to connect to at startup.
+    /// Each name corresponds to a toolbox registered in the Foundry project.
     /// The platform proxy URL is constructed as:
-    /// <c>{FOUNDRY_AGENT_TOOLSET_ENDPOINT}/{toolsetName}/mcp?api-version={ApiVersion}</c>
+    /// <c>{FOUNDRY_AGENT_TOOLSET_ENDPOINT}/{toolboxName}/mcp?api-version={ApiVersion}</c>
     /// </summary>
-    public IList<string> ToolsetNames { get; } = new List<string>();
+    public IList<string> ToolboxNames { get; } = [];
 
     /// <summary>
     /// Gets or sets the Toolsets API version to use when constructing proxy URLs.
diff --git a/dotnet/src/Microsoft.Agents.AI.Foundry/Hosting/FoundryToolboxService.cs b/dotnet/src/Microsoft.Agents.AI.Foundry/Hosting/FoundryToolboxService.cs
index 3b96bb8ef0..cd9c736e31 100644
--- a/dotnet/src/Microsoft.Agents.AI.Foundry/Hosting/FoundryToolboxService.cs
+++ b/dotnet/src/Microsoft.Agents.AI.Foundry/Hosting/FoundryToolboxService.cs
@@ -16,7 +16,7 @@ using ModelContextProtocol.Client;
 namespace Microsoft.Agents.AI.Foundry.Hosting;
 
 /// <summary>
-/// An <see cref="IHostedService"/> that eagerly connects to the Foundry Toolsets MCP proxy at
+/// An <see cref="IHostedService"/> that eagerly connects to the Foundry Toolboxes MCP proxy at
 /// container startup, discovers tools via <c>tools/list</c>, and caches them so they can be
 /// injected into every <see cref="ChatOptions"/> by
 /// <see cref="AgentFrameworkResponseHandler"/>.
@@ -28,7 +28,7 @@ namespace Microsoft.Agents.AI.Foundry.Hosting;
 /// </para>
 /// <para>
 /// Initialization is performed in <see cref="StartAsync"/> so the readiness probe is only satisfied
-/// after all configured toolsets are connected and their tools discovered (spec §3.1 SHOULD).
+/// after all configured toolboxes are connected and their tools discovered (spec §3.1 SHOULD).
 /// </para>
 /// </remarks>
 public sealed class FoundryToolboxService : IHostedService, IAsyncDisposable
@@ -41,8 +41,8 @@ public sealed class FoundryToolboxService : IHostedService, IAsyncDisposable
     private readonly List<HttpClient> _httpClients = [];
 
     /// <summary>
-    /// Gets the cached list of <see cref="AITool"/> instances discovered from all connected toolsets.
-    /// Always non-null after startup; returns an empty list when no toolset endpoint is configured.
+    /// Gets the cached list of <see cref="AITool"/> instances discovered from all connected toolboxes.
+    /// Always non-null after startup; returns an empty list when no toolbox endpoint is configured.
     /// </summary>
     public IReadOnlyList<AITool> Tools { get; private set; } = [];
 
@@ -75,9 +75,9 @@ public sealed class FoundryToolboxService : IHostedService, IAsyncDisposable
             return;
         }
 
-        if (this._options.ToolsetNames.Count == 0)
+        if (this._options.ToolboxNames.Count == 0)
         {
-            this._logger.LogInformation("No toolset names configured; toolbox support is disabled.");
+            this._logger.LogInformation("No toolbox names configured; toolbox support is disabled.");
             this.Tools = [];
             return;
         }
@@ -88,21 +88,21 @@ public sealed class FoundryToolboxService : IHostedService, IAsyncDisposable
 
         var allTools = new List<AITool>();
 
-        // Deduplicate toolset names to avoid duplicate MCP clients and ambiguous tool exposure
+        // Deduplicate toolbox names to avoid duplicate MCP clients and ambiguous tool exposure
         var seen = new HashSet<string>(StringComparer.OrdinalIgnoreCase);
 
-        foreach (var toolsetName in this._options.ToolsetNames)
+        foreach (var toolboxName in this._options.ToolboxNames)
         {
-            if (!seen.Add(toolsetName))
+            if (!seen.Add(toolboxName))
             {
                 continue;
             }
 
-            var proxyUrl = $"{endpoint.TrimEnd('/')}/{toolsetName}/mcp?api-version={this._options.ApiVersion}";
+            var proxyUrl = $"{endpoint.TrimEnd('/')}/{toolboxName}/mcp?api-version={this._options.ApiVersion}";
 
             if (this._logger.IsEnabled(LogLevel.Information))
             {
-                this._logger.LogInformation("Connecting to toolset '{ToolsetName}' at {ProxyUrl}.", toolsetName, proxyUrl);
+                this._logger.LogInformation("Connecting to toolbox '{ToolboxName}' at {ProxyUrl}.", toolboxName, proxyUrl);
             }
 
             try
@@ -118,7 +118,7 @@ public sealed class FoundryToolboxService : IHostedService, IAsyncDisposable
                 var transportOptions = new HttpClientTransportOptions
                 {
                     Endpoint = new Uri(proxyUrl),
-                    Name = toolsetName,
+                    Name = toolboxName,
                 };
 
                 var transport = new HttpClientTransport(transportOptions, httpClient);
@@ -144,22 +144,22 @@ public sealed class FoundryToolboxService : IHostedService, IAsyncDisposable
                 if (this._logger.IsEnabled(LogLevel.Information))
                 {
                     this._logger.LogInformation(
-                        "Toolset '{ToolsetName}': discovered {ToolCount} tool(s).",
-                        toolsetName,
+                        "Toolbox '{ToolboxName}': discovered {ToolCount} tool(s).",
+                        toolboxName,
                         tools.Count);
                 }
 
                 foreach (var tool in tools)
                 {
-                    allTools.Add(new ConsentAwareMcpClientTool(tool, toolsetName));
+                    allTools.Add(new ConsentAwareMcpClientAIFunction(tool, toolboxName));
                 }
             }
             catch (Exception ex) when (ex is not OperationCanceledException)
             {
                 this._logger.LogError(
                     ex,
-                    "Failed to connect to toolset '{ToolsetName}'. Tools from this toolset will not be available.",
-                    toolsetName);
+                    "Failed to connect to toolbox '{ToolboxName}'. Tools from this toolbox will not be available.",
+                    toolboxName);
             }
         }
 
diff --git a/dotnet/src/Microsoft.Agents.AI.Foundry/Hosting/McpConsentContext.cs b/dotnet/src/Microsoft.Agents.AI.Foundry/Hosting/McpConsentContext.cs
index 4509db95da..aba28a5314 100644
--- a/dotnet/src/Microsoft.Agents.AI.Foundry/Hosting/McpConsentContext.cs
+++ b/dotnet/src/Microsoft.Agents.AI.Foundry/Hosting/McpConsentContext.cs
@@ -8,13 +8,13 @@ namespace Microsoft.Agents.AI.Foundry.Hosting;
 /// <summary>
 /// Carries OAuth consent information for a single tool call that returned JSON-RPC error -32006.
 /// </summary>
-/// <param name="ToolsetName">The toolset name that owns the tool.</param>
+/// <param name="ToolboxName">The toolbox name that owns the tool.</param>
 /// <param name="ToolName">Fully-qualified tool name (e.g., <c>logicapps.send_email</c>).</param>
 /// <param name="ConsentUrl">The OAuth consent URL the user must visit.</param>
-internal sealed record McpConsentInfo(string ToolsetName, string ToolName, string ConsentUrl);
+internal sealed record McpConsentInfo(string ToolboxName, string ToolName, string ConsentUrl);
 
 /// <summary>
-/// Per-request mutable state shared between <see cref="ConsentAwareMcpClientTool"/> (child context)
+/// Per-request mutable state shared between <see cref="ConsentAwareMcpClientAIFunction"/> (child context)
 /// and <see cref="AgentFrameworkResponseHandler"/> (parent context) via <see cref="McpConsentContext.Current"/>.
 /// </summary>
 /// <remarks>
@@ -31,7 +31,7 @@ internal sealed class RequestConsentState
 }
 
 /// <summary>
-/// Thread-static (AsyncLocal) context that enables <see cref="ConsentAwareMcpClientTool"/>
+/// Thread-static (AsyncLocal) context that enables <see cref="ConsentAwareMcpClientAIFunction"/>
 /// to signal a consent error back to <see cref="AgentFrameworkResponseHandler"/> through the
 /// <see cref="FunctionInvokingChatClient"/> tool loop.
 /// </summary>
diff --git a/dotnet/src/Microsoft.Agents.AI.Foundry/Hosting/ServiceCollectionExtensions.cs b/dotnet/src/Microsoft.Agents.AI.Foundry/Hosting/ServiceCollectionExtensions.cs
index e95a1a847f..3a924d6899 100644
--- a/dotnet/src/Microsoft.Agents.AI.Foundry/Hosting/ServiceCollectionExtensions.cs
+++ b/dotnet/src/Microsoft.Agents.AI.Foundry/Hosting/ServiceCollectionExtensions.cs
@@ -100,14 +100,14 @@ public static class FoundryHostingExtensions
     }
 
     /// <summary>
-    /// Registers the Foundry Toolbox service, which eagerly connects to the Foundry Toolsets
+    /// Registers the Foundry Toolbox service, which eagerly connects to the Foundry Toolboxes
     /// MCP proxy at startup and provides MCP tools to <see cref="AgentFrameworkResponseHandler"/>.
     /// </summary>
     /// <remarks>
     /// <para>
-    /// Each string in <paramref name="toolsetNames"/> is a toolset name registered in the Foundry
-    /// project. The proxy URL per toolset is constructed as:
-    /// <c>{FOUNDRY_AGENT_TOOLSET_ENDPOINT}/{toolsetName}/mcp?api-version=2025-05-01-preview</c>
+    /// Each string in <paramref name="toolboxNames"/> is a toolbox name registered in the Foundry
+    /// project. The proxy URL per toolbox is constructed as:
+    /// <c>{FOUNDRY_AGENT_TOOLSET_ENDPOINT}/{toolboxName}/mcp?api-version=2025-05-01-preview</c>
     /// </para>
     /// <para>
     /// When <c>FOUNDRY_AGENT_TOOLSET_ENDPOINT</c> is absent, startup succeeds without error and
@@ -116,26 +116,26 @@ public static class FoundryHostingExtensions
     /// <para>
     /// Example:
     /// <code>
-    /// builder.Services.AddFoundryToolboxes("my-tools", "another-toolset");
+    /// builder.Services.AddFoundryToolboxes("my-toolbox", "another-toolbox");
     /// </code>
     /// </para>
     /// </remarks>
     /// <param name="services">The service collection.</param>
-    /// <param name="toolsetNames">Names of the Foundry toolsets to connect to.</param>
+    /// <param name="toolboxNames">Names of the Foundry toolboxes to connect to.</param>
     /// <returns>The service collection for chaining.</returns>
     public static IServiceCollection AddFoundryToolboxes(
         this IServiceCollection services,
-        params string[] toolsetNames)
+        params string[] toolboxNames)
     {
         ArgumentNullException.ThrowIfNull(services);
 
         services.Configure<FoundryToolboxOptions>(opt =>
         {
-            foreach (var name in toolsetNames)
+            foreach (var name in toolboxNames)
             {
                 if (!string.IsNullOrWhiteSpace(name))
                 {
-                    opt.ToolsetNames.Add(name);
+                    opt.ToolboxNames.Add(name);
                 }
             }
         });