diff --git a/python/packages/main/agent_framework/openai/_chat_client.py b/python/packages/main/agent_framework/openai/_chat_client.py
index 754e17dbd9..bd41ac48d3 100644
--- a/python/packages/main/agent_framework/openai/_chat_client.py
+++ b/python/packages/main/agent_framework/openai/_chat_client.py
@@ -387,6 +387,7 @@ class OpenAIChatClient(OpenAIConfigMixin, OpenAIBaseChatClient):
         default_headers: Mapping[str, str] | None = None,
         async_client: AsyncOpenAI | None = None,
         instruction_role: str | None = None,
+        base_url: str | None = None,
         env_file_path: str | None = None,
         env_file_encoding: str | None = None,
     ) -> None:
@@ -404,6 +405,7 @@ class OpenAIChatClient(OpenAIConfigMixin, OpenAIBaseChatClient):
             async_client: An existing client to use. (Optional)
             instruction_role: The role to use for 'instruction' messages, for example,
                 "system" or "developer". If not provided, the default is "system".
+            base_url: The optional base URL to use. If provided will override the standard value for a OpenAI connector.
             env_file_path: Use the environment settings file as a fallback
                 to environment variables. (Optional)
             env_file_encoding: The encoding of the environment settings file. (Optional)
@@ -436,6 +438,7 @@ class OpenAIChatClient(OpenAIConfigMixin, OpenAIBaseChatClient):
             default_headers=default_headers,
             client=async_client,
             instruction_role=instruction_role,
+            base_url=base_url,
         )
 
     @classmethod
diff --git a/python/packages/main/agent_framework/openai/_shared.py b/python/packages/main/agent_framework/openai/_shared.py
index 1e7c29ec8d..5a7b5c5a75 100644
--- a/python/packages/main/agent_framework/openai/_shared.py
+++ b/python/packages/main/agent_framework/openai/_shared.py
@@ -138,6 +138,7 @@ class OpenAIConfigMixin(OpenAIBase):
         default_headers: Mapping[str, str] | None = None,
         client: AsyncOpenAI | None = None,
         instruction_role: str | None = None,
+        base_url: str | None = None,
         **kwargs: Any,
     ) -> None:
         """Initialize a client for OpenAI services.
@@ -146,17 +147,19 @@ class OpenAIConfigMixin(OpenAIBase):
         different types of AI model interactions, like chat or text completion.
 
         Args:
-            ai_model_id (str): OpenAI model identifier. Must be non-empty.
+            ai_model_id: OpenAI model identifier. Must be non-empty.
                 Default to a preset value.
-            api_key (str): OpenAI API key for authentication.
+            api_key: OpenAI API key for authentication.
                 Must be non-empty. (Optional)
-            org_id (str): OpenAI organization ID. This is optional
+            org_id: OpenAI organization ID. This is optional
                 unless the account belongs to multiple organizations.
-            default_headers (Mapping[str, str]): Default headers
+            default_headers: Default headers
                 for HTTP requests. (Optional)
-            client (AsyncOpenAI): An existing OpenAI client, optional.
-            instruction_role (str): The role to use for 'instruction'
+            client: An existing OpenAI client, optional.
+            instruction_role: The role to use for 'instruction'
                 messages, for example, summarization prompts could use `developer` or `system`. (Optional)
+            base_url: The optional base URL to use. If provided will override the standard value for a OpenAI connector.
+                Will not be used when supplying a custom client.
             kwargs: Additional keyword arguments.
 
         """
@@ -169,11 +172,12 @@ class OpenAIConfigMixin(OpenAIBase):
         if not client:
             if not api_key:
                 raise ServiceInitializationError("Please provide an api_key")
-            client = AsyncOpenAI(
-                api_key=api_key,
-                organization=org_id,
-                default_headers=merged_headers,
-            )
+            args: dict[str, Any] = {"api_key": api_key, "default_headers": merged_headers}
+            if org_id:
+                args["organization"] = org_id
+            if base_url:
+                args["base_url"] = base_url
+            client = AsyncOpenAI(**args)
         args = {
             "ai_model_id": ai_model_id,
             "client": client,
diff --git a/python/packages/main/tests/openai/test_openai_chat_client.py b/python/packages/main/tests/openai/test_openai_chat_client.py
index cd0baf5629..35e75095a1 100644
--- a/python/packages/main/tests/openai/test_openai_chat_client.py
+++ b/python/packages/main/tests/openai/test_openai_chat_client.py
@@ -74,6 +74,12 @@ def test_init_with_default_header(openai_unit_test_env: dict[str, str]) -> None:
         assert open_ai_chat_completion.client.default_headers[key] == value
 
 
+def test_init_base_url(openai_unit_test_env: dict[str, str]) -> None:
+    # Test successful initialization
+    open_ai_chat_completion = OpenAIChatClient(base_url="http://localhost:1234/v1")
+    assert str(open_ai_chat_completion.client.base_url) == "http://localhost:1234/v1/"
+
+
 @pytest.mark.parametrize("exclude_list", [["OPENAI_CHAT_MODEL_ID"]], indirect=True)
 def test_init_with_empty_model_id(openai_unit_test_env: dict[str, str]) -> None:
     with pytest.raises(ServiceInitializationError):
diff --git a/python/pyproject.toml b/python/pyproject.toml
index 503de388d4..55f7c6fdb5 100644
--- a/python/pyproject.toml
+++ b/python/pyproject.toml
@@ -125,7 +125,7 @@ notice-rgx = "^# Copyright \\(c\\) Microsoft\\. All rights reserved\\."
 min-file-size = 1
 
 [tool.pytest.ini_options]
-testpaths = 'tests'
+testpaths = '**/tests'
 addopts = "-ra -q -r fEX"
 asyncio_mode = "auto"
 asyncio_default_fixture_loop_scope = "function"
@@ -133,7 +133,7 @@ filterwarnings = []
 timeout = 120
 markers = [
     "azure: marks tests as Azure provider specific",
-    "foundry: marks tests as Foundry provider specific", 
+    "foundry: marks tests as Foundry provider specific",
     "openai: marks tests as OpenAI provider specific",
 ]