diff --git a/python/openai/sample-agent/agent.py b/python/openai/sample-agent/agent.py
index c510c3f6..97e189ea 100644
--- a/python/openai/sample-agent/agent.py
+++ b/python/openai/sample-agent/agent.py
@@ -232,11 +232,12 @@ async def setup_mcp_servers(self, auth: Authorization, auth_handler_name: str, c
                     context=context,
                 )
             else:
+                # For anonymous mode, don't pass auth/context to avoid token retrieval
                 self.agent = await self.tool_service.add_tool_servers_to_agent(
                     agent=self.agent,
-                    auth=auth,
-                    auth_handler_name=auth_handler_name,
-                    context=context,
+                    auth=None,
+                    auth_handler_name=None,
+                    context=None,
                     auth_token=self.auth_options.bearer_token,
                 )
 
@@ -268,8 +269,11 @@ async def process_user_message(
     ) -> str:
         """Process user message using the OpenAI Agents SDK"""
         try:
-            # Setup MCP servers
-            await self.setup_mcp_servers(auth, auth_handler_name, context)
+            # Setup MCP servers only if not already done or if auth is available
+            # In anonymous mode (USE_AGENTIC_AUTH=false), skip setup to avoid auth errors
+            use_agentic_auth = os.getenv("USE_AGENTIC_AUTH", "false").lower() == "true"
+            if use_agentic_auth and auth is not None:
+                await self.setup_mcp_servers(auth, auth_handler_name, context)
 
             # Run the agent with the user message
             result = await Runner.run(starting_agent=self.agent, input=message, context=context)
diff --git a/python/openai/sample-agent/agent_interface.py b/python/openai/sample-agent/agent_interface.py
index 8640b185..86152893 100644
--- a/python/openai/sample-agent/agent_interface.py
+++ b/python/openai/sample-agent/agent_interface.py
@@ -46,8 +46,8 @@ def check_agent_inheritance(agent_class) -> bool:
         True if the agent inherits from AgentInterface, False otherwise
     """
     if not issubclass(agent_class, AgentInterface):
-        print(f"❌ Agent {agent_class.__name__} does not inherit from AgentInterface")
+        print(f"ERROR: Agent {agent_class.__name__} does not inherit from AgentInterface")
         return False
 
-    print(f"✅ Agent {agent_class.__name__} properly inherits from AgentInterface")
+    print(f"SUCCESS: Agent {agent_class.__name__} properly inherits from AgentInterface")
     return True
diff --git a/python/openai/sample-agent/host_agent_server.py b/python/openai/sample-agent/host_agent_server.py
index d124d980..1d2d830d 100644
--- a/python/openai/sample-agent/host_agent_server.py
+++ b/python/openai/sample-agent/host_agent_server.py
@@ -68,7 +68,9 @@ def __init__(self, agent_class: type[AgentInterface], *agent_args, **agent_kwarg
         if not check_agent_inheritance(agent_class):
             raise TypeError(f"Agent class {agent_class.__name__} must inherit from AgentInterface")
 
-        self.auth_handler_name = "AGENTIC"
+        # Only use auth handler when agentic auth is enabled
+        use_agentic_auth = os.getenv("USE_AGENTIC_AUTH", "false").lower() == "true"
+        self.auth_handler_name = "AGENTIC" if use_agentic_auth else None
 
         self.agent_class = agent_class
         self.agent_args = agent_args
@@ -110,8 +112,9 @@ async def help_handler(context: TurnContext, _: TurnState):
         self.agent_app.conversation_update("membersAdded")(help_handler)
         self.agent_app.message("/help")(help_handler)
 
-        handler = [self.auth_handler_name]
-        @self.agent_app.activity("message", auth_handlers=handler)
+        # Only require auth handlers if agentic auth is enabled
+        handler_config = {"auth_handlers": [self.auth_handler_name]} if self.auth_handler_name else {}
+        @self.agent_app.activity("message", **handler_config)
         async def on_message(context: TurnContext, _: TurnState):
             """Handle all messages with the hosted agent"""
             try:
@@ -125,18 +128,20 @@ async def on_message(context: TurnContext, _: TurnState):
                         await context.send_activity(error_msg)
                         return
 
-                    exaau_token = await self.agent_app.auth.exchange_token(
-                        context,
-                        scopes=get_observability_authentication_scope(),
-                        auth_handler_id=self.auth_handler_name,
-                    )
-
-                    # Cache the agentic token for Agent 365 Observability exporter use
-                    cache_agentic_token(
-                        tenant_id,
-                        agent_id,
-                        exaau_token.token,
-                    )
+                    # Only exchange token if agentic auth is enabled
+                    if self.auth_handler_name:
+                        exaau_token = await self.agent_app.auth.exchange_token(
+                            context,
+                            scopes=get_observability_authentication_scope(),
+                            auth_handler_id=self.auth_handler_name,
+                        )
+
+                        # Cache the agentic token for Agent 365 Observability exporter use
+                        cache_agentic_token(
+                            tenant_id,
+                            agent_id,
+                            exaau_token.token,
+                        )
 
                     user_message = context.activity.text or ""
                     logger.info(f"📨 Processing message: '{user_message}'")
diff --git a/python/openai/sample-agent/start_with_generic_host.py b/python/openai/sample-agent/start_with_generic_host.py
index d54d2396..e49e84a2 100644
--- a/python/openai/sample-agent/start_with_generic_host.py
+++ b/python/openai/sample-agent/start_with_generic_host.py
@@ -27,7 +27,7 @@ def main():
         create_and_run_host(OpenAIAgentWithMCP)
 
     except Exception as e:
-        print(f"❌ Failed to start server: {e}")
+        print(f"ERROR: Failed to start server: {e}")
         import traceback
 
         traceback.print_exc()