diff --git a/openhands/controller/agent_controller.py b/openhands/controller/agent_controller.py
index 21065f5e92..8078855330 100644
--- a/openhands/controller/agent_controller.py
+++ b/openhands/controller/agent_controller.py
@@ -5,7 +5,7 @@ import traceback
 from typing import Callable, ClassVar, Type
 
 import litellm
-from litellm.exceptions import ContextWindowExceededError
+from litellm.exceptions import BadRequestError, ContextWindowExceededError
 
 from openhands.controller.agent import Agent
 from openhands.controller.state.state import State, TrafficControlState
@@ -509,15 +509,24 @@ class AgentController:
                 EventSource.AGENT,
             )
             return
-        except ContextWindowExceededError:
-            # When context window is exceeded, keep roughly half of agent interactions
-            self.state.history = self._apply_conversation_window(self.state.history)
+        except (ContextWindowExceededError, BadRequestError) as e:
+            # FIXME: this is a hack until a litellm fix is confirmed
+            # Check if this is a nested context window error
+            error_str = str(e).lower()
+            if (
+                'contextwindowexceedederror' in error_str
+                or 'prompt is too long' in error_str
+                or isinstance(e, ContextWindowExceededError)
+            ):
+                # When context window is exceeded, keep roughly half of agent interactions
+                self.state.history = self._apply_conversation_window(self.state.history)
 
-            # Save the ID of the first event in our truncated history for future reloading
-            if self.state.history:
-                self.state.start_id = self.state.history[0].id
-            # Don't add error event - let the agent retry with reduced context
-            return
+                # Save the ID of the first event in our truncated history for future reloading
+                if self.state.history:
+                    self.state.start_id = self.state.history[0].id
+                # Don't add error event - let the agent retry with reduced context
+                return
+            raise
 
         if action.runnable:
             if self.state.confirmation_mode and (