@@ -1758,10 +1758,10 @@ async def _try_execute_function_call_groups(
         function_call for function_call in function_calls if _is_actionable_function_call(function_call)
     ]
 
-    # Classify the entire batch first: any required user interaction pauses the batch before execution.
+    # Classify the complete batch before choosing a control-flow path. A pause must
+    # not depend on where its call appears in the model's batch.
     requires_approval = False
     has_declaration_only_call = False
-    # A user-input pause takes precedence over unknown-call termination in mixed batches.
     for function_call in actionable_calls:
         function_name = function_call.name
         logger.debug(
@@ -1773,12 +1773,8 @@ async def _try_execute_function_call_groups(
         if function_name in approval_tool_names:
             logger.debug("Approval needed for function: %s", function_name)
             requires_approval = True
-            break
-        if function_name in declaration_only_tool_names or function_name in additional_tool_names:
+        elif function_name in declaration_only_tool_names or function_name in additional_tool_names:
             has_declaration_only_call = True
-            break
-        if config.get("terminate_on_unknown_calls", False) and function_name not in tool_map:
-            raise KeyError(f'Error: Requested function "{function_name}" not found.')
     if requires_approval:
         # Surface only the approvals the host must decide; session-backed safe siblings wait for that resume.
         # approval can only be needed for Function Call Content, not Approval Responses.
@@ -1828,6 +1824,14 @@ async def _try_execute_function_call_groups(
                 declaration_only_calls.append(function_call)
         return [[function_call] for function_call in declaration_only_calls], False
 
+    if config.get("terminate_on_unknown_calls", False):
+        unknown_call = next(
+            (function_call for function_call in actionable_calls if function_call.name not in tool_map),
+            None,
+        )
+        if unknown_call is not None:
+            raise KeyError(f'Error: Requested function "{unknown_call.name}" not found.')
+
     # Only a fully executable batch reaches this point; run calls concurrently but retain per-call result groups.
     # Create each task inside a copied context so the active agent span is
     # preserved for every parallel tool invocation.
 
@@ -2292,6 +2292,80 @@ def known_func(arg1: str) -> str:
     assert exec_counter == 0
 
 
+@pytest.mark.parametrize("declaration_first", [True, False], ids=["declaration-first", "approval-first"])
+async def test_mixed_batch_always_require_approval_takes_precedence_over_declaration_only(
+    declaration_first: bool,
+) -> None:
+    """An approval pause must not depend on the position of a declaration-only sibling."""
+    from agent_framework import FunctionTool
+    from agent_framework._tools import _try_execute_function_call_groups
+
+    @tool(name="guarded", approval_mode="always_require")
+    def guarded() -> str:
+        return "should not run"
+
+    declaration_only = FunctionTool(name="external", description="Handled by the host", func=None)
+    guarded_call = Content.from_function_call(call_id="guarded-call", name="guarded", arguments={})
+    declaration_call = Content.from_function_call(call_id="external-call", name="external", arguments={})
+    calls = [declaration_call, guarded_call] if declaration_first else [guarded_call, declaration_call]
+
+    result_groups, should_terminate = await _try_execute_function_call_groups(
+        custom_args={}, function_calls=calls, tools=[guarded, declaration_only], config={}
+    )
+
+    assert not should_terminate
+    approval_requests = [
+        content for group in result_groups for content in group if content.type == "function_approval_request"
+    ]
+    assert any(request.function_call.name == "guarded" for request in approval_requests)
+
+
+async def test_mixed_batch_always_require_approval_takes_precedence_over_unknown_termination() -> None:
+    """An unknown call cannot mask an approval pause when unknown-call termination is enabled."""
+    from agent_framework._tools import _try_execute_function_call_groups
+
+    @tool(name="guarded", approval_mode="always_require")
+    def guarded() -> str:
+        return "should not run"
+
+    result_groups, should_terminate = await _try_execute_function_call_groups(
+        custom_args={},
+        function_calls=[
+            Content.from_function_call(call_id="unknown-call", name="unknown", arguments={}),
+            Content.from_function_call(call_id="guarded-call", name="guarded", arguments={}),
+        ],
+        tools=[guarded],
+        config={"terminate_on_unknown_calls": True},
+    )
+
+    assert not should_terminate
+    approval_requests = [
+        content for group in result_groups for content in group if content.type == "function_approval_request"
+    ]
+    assert any(request.function_call.name == "guarded" for request in approval_requests)
+
+
+async def test_mixed_batch_declaration_only_takes_precedence_over_unknown_termination() -> None:
+    """A declaration-only pause also takes precedence over an unknown-call termination."""
+    from agent_framework import FunctionTool
+    from agent_framework._tools import _try_execute_function_call_groups
+
+    declaration_only = FunctionTool(name="external", description="Handled by the host", func=None)
+    result_groups, should_terminate = await _try_execute_function_call_groups(
+        custom_args={},
+        function_calls=[
+            Content.from_function_call(call_id="unknown-call", name="unknown", arguments={}),
+            Content.from_function_call(call_id="external-call", name="external", arguments={}),
+        ],
+        tools=[declaration_only],
+        config={"terminate_on_unknown_calls": True},
+    )
+
+    assert not should_terminate
+    paused_calls = [content for group in result_groups for content in group]
+    assert all(content.type == "function_call" and content.user_input_request for content in paused_calls)
+
+
 async def test_function_invocation_config_additional_tools(chat_client_base: SupportsChatGetResponse):
     """Test that additional_tools are available but treated as declaration_only."""
     exec_counter_visible = 0