diff --git a/agentscope-extensions/agentscope-extensions-autocontext-memory/src/main/java/io/agentscope/core/memory/autocontext/AutoContextHook.java b/agentscope-extensions/agentscope-extensions-autocontext-memory/src/main/java/io/agentscope/core/memory/autocontext/AutoContextHook.java
index d948449881..50d39a166a 100644
--- a/agentscope-extensions/agentscope-extensions-autocontext-memory/src/main/java/io/agentscope/core/memory/autocontext/AutoContextHook.java
+++ b/agentscope-extensions/agentscope-extensions-autocontext-memory/src/main/java/io/agentscope/core/memory/autocontext/AutoContextHook.java
@@ -209,8 +209,14 @@ private Mono<PreCallEvent> handlePreCall(PreCallEvent event) {
      * <p>This ensures compression happens at a deterministic point (before reasoning)
      * and the LLM receives the compressed context.
      *
+     * <p>If compression fails with a non-interruption exception (e.g. model timeout, rate limit),
+     * the error is logged at WARN level and the original event is returned unchanged, allowing
+     * the agent to continue with uncompressed messages (graceful degradation). If the exception
+     * wraps an {@link InterruptedException} anywhere in its cause chain, {@code Mono.error} is
+     * returned to propagate the interruption signal correctly through the reactive pipeline.
+     *
      * @param event the PreReasoningEvent
-     * @return Mono containing the potentially modified event
+     * @return Mono containing the potentially modified event, or {@code Mono.error} if interrupted
      */
     private Mono<PreReasoningEvent> handlePreReasoning(PreReasoningEvent event) {
         Agent agent = event.getAgent();
@@ -231,6 +237,17 @@ private Mono<PreReasoningEvent> handlePreReasoning(PreReasoningEvent event) {
                             event.setInputMessages(buildInputMessages(event, autoContextMemory));
                             return event;
                         })
+                .onErrorResume(
+                        e -> {
+                            if (isInterruptedException(e)) {
+                                return Mono.error(e);
+                            }
+                            log.warn(
+                                    "Failed to compress context in handlePreReasoning, continuing"
+                                            + " with original messages",
+                                    e);
+                            return Mono.just(event);
+                        })
                 .subscribeOn(Schedulers.boundedElastic());
     }
 
@@ -284,4 +301,15 @@ private List<Msg> buildInputMessages(
         newInputMessages.addAll(autoContextMemory.getMessages());
         return newInputMessages;
     }
+
+    private static boolean isInterruptedException(Throwable t) {
+        Throwable current = t;
+        while (current != null) {
+            if (current instanceof InterruptedException) {
+                return true;
+            }
+            current = current.getCause();
+        }
+        return false;
+    }
 }
diff --git a/agentscope-extensions/agentscope-extensions-autocontext-memory/src/test/java/io/agentscope/core/memory/autocontext/AutoContextHookTest.java b/agentscope-extensions/agentscope-extensions-autocontext-memory/src/test/java/io/agentscope/core/memory/autocontext/AutoContextHookTest.java
index 1080a5b541..c1e5c63839 100644
--- a/agentscope-extensions/agentscope-extensions-autocontext-memory/src/test/java/io/agentscope/core/memory/autocontext/AutoContextHookTest.java
+++ b/agentscope-extensions/agentscope-extensions-autocontext-memory/src/test/java/io/agentscope/core/memory/autocontext/AutoContextHookTest.java
@@ -18,6 +18,7 @@
 import static org.junit.jupiter.api.Assertions.assertEquals;
 import static org.junit.jupiter.api.Assertions.assertFalse;
 import static org.junit.jupiter.api.Assertions.assertNotNull;
+import static org.junit.jupiter.api.Assertions.assertThrows;
 import static org.junit.jupiter.api.Assertions.assertTrue;
 import static org.mockito.Mockito.mock;
 
@@ -629,6 +630,102 @@ void testPreReasoningEventPreservesSystemPromptOnNonBlockingScheduler() {
         assertTrue(updatedSystemPrompt.contains("context_reload"));
     }
 
+    @Test
+    @DisplayName("Should handle compression error gracefully and return original event")
+    void testPreReasoningEventHandlesCompressionError() {
+        FailingModel failingModel = new FailingModel(new RuntimeException("model timeout"));
+        AutoContextMemory failingMemory =
+                new AutoContextMemory(createCompressionConfig(), failingModel);
+        populateCompressibleConversation(failingMemory, 3);
+        failingMemory.addMessage(
+                Msg.builder()
+                        .role(MsgRole.USER)
+                        .name("user")
+                        .content(TextBlock.builder().text("Final user message").build())
+                        .build());
+
+        ReActAgent agent =
+                ReActAgent.builder()
+                        .name("TestAgent")
+                        .model(mockModel)
+                        .memory(failingMemory)
+                        .toolkit(toolkit)
+                        .build();
+
+        List<Msg> inputMessages = new ArrayList<>();
+        inputMessages.add(
+                Msg.builder()
+                        .role(MsgRole.SYSTEM)
+                        .name("system")
+                        .content(TextBlock.builder().text("You are a helpful assistant.").build())
+                        .build());
+        inputMessages.add(
+                Msg.builder()
+                        .role(MsgRole.USER)
+                        .name("user")
+                        .content(TextBlock.builder().text("Hello").build())
+                        .build());
+
+        PreReasoningEvent event = new PreReasoningEvent(agent, "test-model", null, inputMessages);
+
+        PreReasoningEvent result = hook.onEvent(event).block();
+
+        assertNotNull(result, "Should return event, not throw");
+        assertEquals(event, result, "Should return original event unchanged on error");
+    }
+
+    @Test
+    @DisplayName("Should propagate wrapped InterruptedException via Mono.error")
+    void testPreReasoningEventPreservesWrappedInterruptedException() {
+        FailingModel failingModel =
+                new FailingModel(
+                        new RuntimeException(new InterruptedException("thread interrupted")));
+        AutoContextMemory failingMemory =
+                new AutoContextMemory(createCompressionConfig(), failingModel);
+        populateCompressibleConversation(failingMemory, 3);
+        failingMemory.addMessage(
+                Msg.builder()
+                        .role(MsgRole.USER)
+                        .name("user")
+                        .content(TextBlock.builder().text("Final user message").build())
+                        .build());
+
+        ReActAgent agent =
+                ReActAgent.builder()
+                        .name("TestAgent")
+                        .model(mockModel)
+                        .memory(failingMemory)
+                        .toolkit(toolkit)
+                        .build();
+
+        List<Msg> inputMessages = new ArrayList<>();
+        inputMessages.add(
+                Msg.builder()
+                        .role(MsgRole.USER)
+                        .name("user")
+                        .content(TextBlock.builder().text("Hello").build())
+                        .build());
+
+        PreReasoningEvent event = new PreReasoningEvent(agent, "test-model", null, inputMessages);
+
+        RuntimeException thrown =
+                assertThrows(RuntimeException.class, () -> hook.onEvent(event).block());
+        assertTrue(
+                isInterruptedInCauseChain(thrown),
+                "Should propagate exception with InterruptedException in cause chain");
+    }
+
+    private static boolean isInterruptedInCauseChain(Throwable t) {
+        Throwable current = t;
+        while (current != null) {
+            if (current instanceof InterruptedException) {
+                return true;
+            }
+            current = current.getCause();
+        }
+        return false;
+    }
+
     private AutoContextConfig createCompressionConfig() {
         return AutoContextConfig.builder()
                 .msgThreshold(5)
@@ -720,4 +817,23 @@ void reset() {
             callCount = 0;
         }
     }
+
+    private static class FailingModel implements Model {
+        private final RuntimeException exception;
+
+        FailingModel(RuntimeException exception) {
+            this.exception = exception;
+        }
+
+        @Override
+        public Flux<ChatResponse> stream(
+                List<Msg> messages, List<ToolSchema> tools, GenerateOptions options) {
+            throw exception;
+        }
+
+        @Override
+        public String getModelName() {
+            return "failing-model";
+        }
+    }
 }