diff --git a/python/PACKAGE_STATUS.md b/python/PACKAGE_STATUS.md
index ec996de657..b2cd91e35c 100644
--- a/python/PACKAGE_STATUS.md
+++ b/python/PACKAGE_STATUS.md
@@ -30,6 +30,7 @@ Status is grouped into these buckets:
 | `agent-framework-declarative` | `python/packages/declarative` | `beta` |
 | `agent-framework-devui` | `python/packages/devui` | `beta` |
 | `agent-framework-durabletask` | `python/packages/durabletask` | `beta` |
+| `agent-framework-fake` | `python/packages/core` | `alpha` |
 | `agent-framework-foundry` | `python/packages/foundry` | `released` |
 | `agent-framework-foundry-local` | `python/packages/foundry_local` | `beta` |
 | `agent-framework-gemini` | `python/packages/gemini` | `alpha` |
diff --git a/python/packages/core/agent_framework/fake/__init__.py b/python/packages/core/agent_framework/fake/__init__.py
new file mode 100644
index 0000000000..bd9ae6d944
--- /dev/null
+++ b/python/packages/core/agent_framework/fake/__init__.py
@@ -0,0 +1,8 @@
+# Copyright (c) Microsoft. All rights reserved.
+
+from ._chat_client import FakeChatClient, FakeChatOptions
+
+__all__ = [
+    "FakeChatClient",
+    "FakeChatOptions",
+]
diff --git a/python/packages/core/agent_framework/fake/_chat_client.py b/python/packages/core/agent_framework/fake/_chat_client.py
new file mode 100644
index 0000000000..711c5d3029
--- /dev/null
+++ b/python/packages/core/agent_framework/fake/_chat_client.py
@@ -0,0 +1,167 @@
+# Copyright (c) Microsoft. All rights reserved.
+
+from __future__ import annotations
+
+import copy
+import sys
+from collections.abc import AsyncIterable, Awaitable, Mapping, Sequence
+from typing import Any, ClassVar, Generic
+
+from .._clients import BaseChatClient
+from .._middleware import ChatAndFunctionMiddlewareTypes, ChatMiddlewareLayer
+from .._tools import FunctionInvocationConfiguration, FunctionInvocationLayer
+from .._types import (
+    ChatOptions,
+    ChatResponse,
+    ChatResponseUpdate,
+    Message,
+    ResponseStream,
+)
+from ..exceptions import ChatClientInvalidRequestException
+from ..observability import ChatTelemetryLayer
+from pydantic import BaseModel
+
+if sys.version_info >= (3, 13):
+    from typing import TypeVar  # type: ignore # pragma: no cover
+else:
+    from typing_extensions import TypeVar  # type: ignore # pragma: no cover
+
+if sys.version_info >= (3, 12):
+    from typing import override  # type: ignore # pragma: no cover
+else:
+    from typing_extensions import override  # type: ignore # pragma: no cover
+
+
+__all__ = ["FakeChatClient", "FakeChatOptions"]
+
+ResponseModelT = TypeVar("ResponseModelT", bound=BaseModel | None, default=None)
+
+FakeResponseItem = str | Message | ChatResponse
+
+
+class FakeChatOptions(ChatOptions[ResponseModelT], Generic[ResponseModelT], total=False):
+    """Fake-model options used by FakeChatClient.
+
+    Keys:
+        model: Optional model name override for this request.
+        response: Optional one-off response that overrides queued responses.
+        cycle: Optional per-request override for cycling behavior.
+    """
+
+    response: FakeResponseItem
+    cycle: bool
+
+
+class FakeChatClient(
+    FunctionInvocationLayer[FakeChatOptions],
+    ChatMiddlewareLayer[FakeChatOptions],
+    ChatTelemetryLayer[FakeChatOptions],
+    BaseChatClient[FakeChatOptions],
+):
+    """Deterministic fake chat client useful for tests and local demos."""
+
+    OTEL_PROVIDER_NAME: ClassVar[str] = "fake"
+
+    def __init__(
+        self,
+        *,
+        responses: Sequence[FakeResponseItem],
+        model: str = "fake-model",
+        cycle: bool = False,
+        additional_properties: dict[str, Any] | None = None,
+        middleware: Sequence[ChatAndFunctionMiddlewareTypes] | None = None,
+        function_invocation_configuration: FunctionInvocationConfiguration | None = None,
+    ) -> None:
+        """Initialize a fake chat client.
+
+        Keyword Args:
+            responses: Ordered fake responses returned on successive calls.
+            model: Default model name used in generated responses.
+            cycle: Whether responses should wrap to the beginning when exhausted.
+                   When False, an error is always raised once the list is exhausted.
+            additional_properties: Additional properties stored on the client instance.
+            middleware: Optional middleware to apply to the client.
+            function_invocation_configuration: Optional function invocation configuration override.
+        """
+        super().__init__(
+            additional_properties=additional_properties,
+            middleware=middleware,
+            function_invocation_configuration=function_invocation_configuration,
+        )
+        self.model = model
+        self._responses = list(responses)
+        self._response_index = 0
+        self._cycle = cycle
+
+    @override
+    def _inner_get_response(
+        self,
+        *,
+        messages: Sequence[Message],
+        options: Mapping[str, Any],
+        stream: bool = False,
+        **kwargs: Any,
+    ) -> Awaitable[ChatResponse] | ResponseStream[ChatResponseUpdate, ChatResponse]:
+        del kwargs
+
+        response = self._select_response(messages=messages, options=options)
+        if stream:
+            return self._to_stream(response)
+
+        async def _get_response() -> ChatResponse:
+            return response
+
+        return _get_response()
+
+    def _to_stream(self, response: ChatResponse) -> ResponseStream[ChatResponseUpdate, ChatResponse]:
+        async def _stream() -> AsyncIterable[ChatResponseUpdate]:
+            assistant_messages = [message for message in response.messages if message.role == "assistant"]
+            if not assistant_messages:
+                return
+
+            for index, message in enumerate(assistant_messages):
+                yield ChatResponseUpdate(
+                    contents=message.contents,
+                    role="assistant",
+                    model=response.model,
+                    created_at=response.created_at,
+                    finish_reason=response.finish_reason if index == len(assistant_messages) - 1 else None,
+                )
+
+        def _finalize(_updates: Sequence[ChatResponseUpdate]) -> ChatResponse:
+            return response
+
+        return ResponseStream(_stream(), finalizer=_finalize)
+
+    def _select_response(self, *, messages: Sequence[Message], options: Mapping[str, Any]) -> ChatResponse:
+
+        if not messages:
+            raise ChatClientInvalidRequestException("Messages are required for chat completions")
+
+        if (single_response := options.get("response")) is not None:
+            return self._materialize_response(single_response, options)
+
+        if self._response_index >= len(self._responses):
+            should_cycle = bool(options.get("cycle", self._cycle))
+            if should_cycle:
+                self._response_index = 0
+            else:
+                raise ChatClientInvalidRequestException(
+                    "FakeChatClient response list is exhausted. Provide more responses or enable cycle=True."
+                )
+
+        item = self._responses[self._response_index]
+        self._response_index += 1
+        return self._materialize_response(item, options)
+
+    def _materialize_response(self, value: FakeResponseItem, options: Mapping[str, Any]) -> ChatResponse:
+        model = str(options.get("model") or self.model)
+
+        if isinstance(value, ChatResponse):
+            # Shallow-copy to avoid mutating the original queued item (e.g. under cycle=True).
+            cloned = copy.copy(value)
+            cloned.model = model
+            return cloned
+        if isinstance(value, Message):
+            return ChatResponse(messages=[value], model=model)
+        return ChatResponse(messages=[Message(role="assistant", contents=[value])], model=model)
diff --git a/python/packages/core/tests/core/test_fake_chat_client.py b/python/packages/core/tests/core/test_fake_chat_client.py
new file mode 100644
index 0000000000..96e94ba254
--- /dev/null
+++ b/python/packages/core/tests/core/test_fake_chat_client.py
@@ -0,0 +1,137 @@
+# Copyright (c) Microsoft. All rights reserved.
+
+import pytest
+from agent_framework import (
+    ChatResponse,
+    Message,
+    chat_middleware,
+)
+from agent_framework.exceptions import ChatClientInvalidRequestException
+from agent_framework.fake import FakeChatClient
+
+
+def test_init() -> None:
+    fake_chat_client = FakeChatClient(model="fake-model", responses=["Hello!", "This framework is amazing!"])
+    assert fake_chat_client.model == "fake-model"
+    assert fake_chat_client._responses == ["Hello!", "This framework is amazing!"]
+    assert not fake_chat_client._cycle
+
+
+def test_serialize() -> None:
+    settings = {
+        "responses": ["Hello!", "This framework is amazing!"],
+        "model": "fake-model-serialize",
+        "cycle": False,
+    }
+
+    fake_chat_client = FakeChatClient.from_dict(settings)
+    serialized = fake_chat_client.to_dict()
+
+    assert isinstance(serialized, dict)
+    # only public attributes are serialized
+    assert serialized["model"] == "fake-model-serialize"
+
+
+def test_chat_middleware() -> None:
+    @chat_middleware
+    async def sample_middleware(context, call_next):
+        await call_next()
+
+    fake_chat_client = FakeChatClient(responses=["Hello!"], middleware=[sample_middleware])
+    assert len(fake_chat_client.chat_middleware) == 1
+    assert fake_chat_client.chat_middleware[0] == sample_middleware
+
+
+async def test_empty_messages() -> None:
+    fake_chat_client = FakeChatClient(responses=["Test :)"])
+    with pytest.raises(ChatClientInvalidRequestException):
+        await fake_chat_client.get_response(messages=[])
+
+
+async def test_get_response() -> None:
+    fake_chat_client = FakeChatClient(
+        responses=[
+            "the most beautiful number is 1729",
+            "It is the smallest number that can be written as the "
+            "sum of cubes in two different ways: 1729 = 1** + 12**3 = 9**3 + 10**3",
+        ],
+        cycle=False,
+    )
+
+    result_first = await fake_chat_client.get_response(
+        messages=[Message(contents=["what is the most beautiful number?"], role="user")]
+    )
+    assert result_first.text == "the most beautiful number is 1729"
+    result_second = await fake_chat_client.get_response(messages=[Message(contents=["and why is it?"], role="user")])
+    assert (
+        result_second.text == "It is the smallest number that can be written as the "
+        "sum of cubes in two different ways: 1729 = 1** + 12**3 = 9**3 + 10**3"
+    )
+    with pytest.raises(
+        ChatClientInvalidRequestException,
+        match="FakeChatClient response list is exhausted. Provide more responses or enable cycle=True.",
+    ):
+        await fake_chat_client.get_response(messages=[Message(contents=["Do you have more?"], role="user")])
+
+
+async def test_get_response_cycle() -> None:
+    client = FakeChatClient(responses=["a", "b"], cycle=True)
+    messages = [Message(role="user", contents=["hi"])]
+
+    r1 = await client.get_response(messages=messages)
+    r2 = await client.get_response(messages=messages)
+    r3 = await client.get_response(messages=messages)
+    r4 = await client.get_response(messages=messages)
+
+    assert r1.text == "a"
+    assert r2.text == "b"
+    assert r3.text == "a"
+    assert r4.text == "b"
+
+
+async def test_get_response_stream() -> None:
+    client = FakeChatClient(responses=["streaming response"])
+    messages = [Message(role="user", contents=["hi"])]
+
+    stream = client.get_response(messages=messages, stream=True)
+    updates = [update async for update in stream]
+    final = await stream.get_final_response()
+
+    assert len(updates) == 1
+    assert updates[0].text == "streaming response"
+    assert final.text == "streaming response"
+
+
+async def test_chat_response_model_override_from_queue() -> None:
+    queued = ChatResponse(messages=[Message(role="assistant", contents=["hi"])], model="original-model")
+    client = FakeChatClient(responses=[queued], model="default-model")
+    messages = [Message(role="user", contents=["hello"])]
+
+    result = await client.get_response(messages=messages, options={"model": "override-model"})
+
+    assert result.model == "override-model"
+
+
+async def test_chat_response_model_override_from_options_response() -> None:
+    one_off = ChatResponse(messages=[Message(role="assistant", contents=["hi"])], model="original-model")
+    client = FakeChatClient(responses=[], model="default-model")
+    messages = [Message(role="user", contents=["hello"])]
+
+    result = await client.get_response(messages=messages, options={"response": one_off, "model": "override-model"})
+
+    assert result.model == "override-model"
+
+
+async def test_middleware_wraps_response() -> None:
+    @chat_middleware
+    async def wrapping_middleware(context, call_next):
+        await call_next()
+        context.result = ChatResponse(
+            messages=[Message(role="assistant", contents=[f"[wrapped] {context.result.text}"])],
+            model=context.result.model,
+        )
+
+    client = FakeChatClient(responses=["hello"], middleware=[wrapping_middleware])
+    result = await client.get_response(messages=[Message(role="user", contents=["hello"])])
+
+    assert result.text == "[wrapped] hello"