diff --git a/src/google/adk/flows/llm_flows/functions.py b/src/google/adk/flows/llm_flows/functions.py
index 6f34e8fe..4d045fac 100644
--- a/src/google/adk/flows/llm_flows/functions.py
+++ b/src/google/adk/flows/llm_flows/functions.py
@@ -660,14 +660,65 @@ async def _execute_single_function_call_live(
     streaming_lock: asyncio.Lock,
 ) -> Optional[Event]:
   """Execute a single function call for live mode with thread safety."""
-  tool, tool_context = _get_tool_and_context(
-      invocation_context, function_call, tools_dict
-  )
 
+  async def _run_on_tool_error_callbacks(
+      *,
+      tool: BaseTool,
+      tool_args: dict[str, Any],
+      tool_context: ToolContext,
+      error: Exception,
+  ) -> Optional[dict[str, Any]]:
+    """Runs the on_tool_error_callbacks for the given tool."""
+    error_response = (
+        await invocation_context.plugin_manager.run_on_tool_error_callback(
+            tool=tool,
+            tool_args=tool_args,
+            tool_context=tool_context,
+            error=error,
+        )
+    )
+    if error_response is not None:
+      return error_response
+
+    for callback in agent.canonical_on_tool_error_callbacks:
+      error_response = callback(
+          tool=tool,
+          args=tool_args,
+          tool_context=tool_context,
+          error=error,
+      )
+      if inspect.isawaitable(error_response):
+        error_response = await error_response
+      if error_response is not None:
+        return error_response
+
+    return None
+
+  # Do not use "args" as the variable name, because it is a reserved keyword
+  # in python debugger.
+  # Make a deep copy to avoid being modified.
   function_args = (
       copy.deepcopy(function_call.args) if function_call.args else {}
   )
 
+  tool_context = _create_tool_context(invocation_context, function_call)
+
+  try:
+    tool = _get_tool(function_call, tools_dict)
+  except ValueError as tool_error:
+    tool = BaseTool(name=function_call.name, description='Tool not found')
+    error_response = await _run_on_tool_error_callbacks(
+        tool=tool,
+        tool_args=function_args,
+        tool_context=tool_context,
+        error=tool_error,
+    )
+    if error_response is not None:
+      return __build_response_event(
+          tool, error_response, tool_context, invocation_context
+      )
+    raise tool_error
+
   async def _run_with_trace():
     nonlocal function_args
 
diff --git a/tests/unittests/flows/llm_flows/test_live_tool_callbacks.py b/tests/unittests/flows/llm_flows/test_live_tool_callbacks.py
index caab8f3f..016e9b49 100644
--- a/tests/unittests/flows/llm_flows/test_live_tool_callbacks.py
+++ b/tests/unittests/flows/llm_flows/test_live_tool_callbacks.py
@@ -386,3 +386,80 @@ async def test_live_callback_compatibility_with_async():
   async_response = async_result.content.parts[0].function_response.response
   live_response = live_result.content.parts[0].function_response.response
   assert async_response == live_response == {"bypassed": "by_before_callback"}
+
+
+@pytest.mark.asyncio
+async def test_live_on_tool_error_callback_tool_not_found_noop():
+  """Test that on_tool_error_callback is a no-op when the tool is not found."""
+
+  def noop_on_tool_error_callback(tool, args, tool_context, error):
+    return None
+
+  def simple_fn(**kwargs) -> Dict[str, Any]:
+    return {"initial": "response"}
+
+  tool = FunctionTool(simple_fn)
+  model = testing_utils.MockModel.create(responses=[])
+  agent = Agent(
+      name="agent",
+      model=model,
+      tools=[tool],
+      on_tool_error_callback=noop_on_tool_error_callback,
+  )
+  invocation_context = await testing_utils.create_invocation_context(
+      agent=agent, user_content=""
+  )
+  function_call = types.FunctionCall(name="nonexistent_function", args={})
+  content = types.Content(parts=[types.Part(function_call=function_call)])
+  event = Event(
+      invocation_id=invocation_context.invocation_id,
+      author=agent.name,
+      content=content,
+  )
+  tools_dict = {tool.name: tool}
+
+  with pytest.raises(ValueError):
+    await handle_function_calls_live(invocation_context, event, tools_dict)
+
+
+@pytest.mark.asyncio
+async def test_live_on_tool_error_callback_tool_not_found_modify_tool_response():
+  """Test that on_tool_error_callback modifies tool response when tool is not found."""
+
+  def mock_on_tool_error_callback(tool, args, tool_context, error):
+    return {"result": "on_tool_error_callback_response"}
+
+  def simple_fn(**kwargs) -> Dict[str, Any]:
+    return {"initial": "response"}
+
+  tool = FunctionTool(simple_fn)
+  model = testing_utils.MockModel.create(responses=[])
+  agent = Agent(
+      name="agent",
+      model=model,
+      tools=[tool],
+      on_tool_error_callback=mock_on_tool_error_callback,
+  )
+  invocation_context = await testing_utils.create_invocation_context(
+      agent=agent, user_content=""
+  )
+  function_call = types.FunctionCall(name="nonexistent_function", args={})
+  content = types.Content(parts=[types.Part(function_call=function_call)])
+  event = Event(
+      invocation_id=invocation_context.invocation_id,
+      author=agent.name,
+      content=content,
+  )
+  tools_dict = {tool.name: tool}
+
+  result_event = await handle_function_calls_live(
+      invocation_context,
+      event,
+      tools_dict,
+  )
+
+  assert result_event is not None
+  part = result_event.content.parts[0]
+  assert part.function_response.response == {
+      "result": "on_tool_error_callback_response"
+  }