diff --git a/src/crewai_tools/tools/rag/rag_tool.py b/src/crewai_tools/tools/rag/rag_tool.py
index f7e785bd7..e56170480 100644
--- a/src/crewai_tools/tools/rag/rag_tool.py
+++ b/src/crewai_tools/tools/rag/rag_tool.py
@@ -1,4 +1,8 @@
 import portalocker
+import os
+import tempfile
+from contextlib import contextmanager
+from copy import deepcopy
 
 from abc import ABC, abstractmethod
 from typing import Any
@@ -7,6 +11,111 @@ from pydantic import BaseModel, ConfigDict, Field, model_validator
 from crewai.tools import BaseTool
 
 
+def _fix_openai_config(config: dict[str, Any]) -> dict[str, Any]:
+    """Fix deprecated OpenAI configuration parameters in a config dictionary."""
+    if not config:
+        return config
+
+    # Create a deep copy to avoid modifying the original
+    fixed_config = deepcopy(config)
+
+    def _is_azure_config(cfg: dict[str, Any]) -> bool:
+        """Determine if this is an Azure OpenAI configuration."""
+        # Check for explicit Azure indicators
+        if cfg.get('provider') == 'azure_openai':
+            return True
+
+        # Check for Azure URLs in various fields
+        for field in ['openai_api_base', 'base_url', 'api_base']:
+            url = cfg.get(field, '')
+            if isinstance(url, str) and 'azure' in url.lower():
+                return True
+
+        # Check if deployment is present (common in Azure configs)
+        # But only if we also have other Azure indicators
+        if 'deployment' in cfg:
+            for field in ['openai_api_base', 'base_url', 'api_base']:
+                url = cfg.get(field, '')
+                if isinstance(url, str) and 'azure' in url.lower():
+                    return True
+
+        return False
+
+    def _fix_config_recursively(cfg: dict[str, Any]) -> dict[str, Any]:
+        """Recursively fix OpenAI config parameters."""
+        if not isinstance(cfg, dict):
+            return cfg
+
+        # Only fix if this is definitely an Azure configuration
+        if _is_azure_config(cfg):
+            # Fix deprecated Azure OpenAI parameters
+            if 'openai_api_base' in cfg and 'azure_endpoint' not in cfg:
+                cfg['azure_endpoint'] = cfg.pop('openai_api_base')
+
+            if 'base_url' in cfg and 'azure_endpoint' not in cfg:
+                # Only convert base_url to azure_endpoint for Azure URLs
+                base_url = cfg.get('base_url', '')
+                if 'openai.azure.com' in base_url:
+                    cfg['azure_endpoint'] = cfg.pop('base_url')
+
+            # Handle deployment -> azure_deployment conversion for Azure configs
+            if 'deployment' in cfg and 'azure_deployment' not in cfg:
+                cfg['azure_deployment'] = cfg.pop('deployment')
+
+        # For non-Azure configs, we might still need to handle some deprecated parameters
+        # but we should NOT convert them to Azure format
+        else:
+            # For regular OpenAI configs, just remove the deprecated openai_api_base if present
+            # since it's not valid for regular OpenAI (should use base_url instead)
+            if 'openai_api_base' in cfg and 'base_url' not in cfg:
+                # Only convert to base_url if it's NOT an Azure URL
+                api_base = cfg.get('openai_api_base', '')
+                if isinstance(api_base, str) and 'openai.azure.com' not in api_base:
+                    cfg['base_url'] = cfg.pop('openai_api_base')
+
+        # Recursively fix nested dictionaries
+        for key, value in cfg.items():
+            if isinstance(value, dict):
+                cfg[key] = _fix_config_recursively(value)
+
+        return cfg
+
+    return _fix_config_recursively(fixed_config)
+
+
+@contextmanager
+def _temporarily_unset_env_vars():
+    """Temporarily unset problematic environment variables that cause OpenAI validation issues."""
+    problematic_vars = [
+        'AZURE_API_BASE',
+        'OPENAI_API_BASE',
+        'OPENAI_BASE_URL'
+    ]
+
+    # Store original values
+    original_values = {}
+    for var in problematic_vars:
+        if var in os.environ:
+            original_values[var] = os.environ[var]
+            del os.environ[var]
+
+    try:
+        # Set the correct Azure environment variables if we had AZURE_API_BASE
+        if 'AZURE_API_BASE' in original_values:
+            os.environ['AZURE_OPENAI_ENDPOINT'] = original_values['AZURE_API_BASE']
+
+        yield
+    finally:
+        # Restore original values
+        for var, value in original_values.items():
+            os.environ[var] = value
+
+        # Clean up the temporary Azure endpoint we set
+        if 'AZURE_API_BASE' in original_values and 'AZURE_OPENAI_ENDPOINT' in os.environ:
+            if os.environ['AZURE_OPENAI_ENDPOINT'] == original_values['AZURE_API_BASE']:
+                del os.environ['AZURE_OPENAI_ENDPOINT']
+
+
 class Adapter(BaseModel, ABC):
     model_config = ConfigDict(arbitrary_types_allowed=True)
 
@@ -44,7 +153,11 @@ class RagTool(BaseTool):
             from crewai_tools.adapters.embedchain_adapter import EmbedchainAdapter
 
             with portalocker.Lock("crewai-rag-tool.lock", timeout=10):
-                app = App.from_config(config=self.config) if self.config else App()
+                # Fix both environment variables and config parameters
+                with _temporarily_unset_env_vars():
+                    # Fix deprecated OpenAI parameters in config
+                    fixed_config = _fix_openai_config(self.config)
+                    app = App.from_config(config=fixed_config) if fixed_config else App()
 
             self.adapter = EmbedchainAdapter(
                 embedchain_app=app, summarize=self.summarize