diff --git a/ts/packages/dispatcher/dispatcher/src/translation/actionSchemaFileCache.ts b/ts/packages/dispatcher/dispatcher/src/translation/actionSchemaFileCache.ts
index 078f21d791..ce716de562 100644
--- a/ts/packages/dispatcher/dispatcher/src/translation/actionSchemaFileCache.ts
+++ b/ts/packages/dispatcher/dispatcher/src/translation/actionSchemaFileCache.ts
@@ -154,7 +154,7 @@ export class ActionSchemaFileCache {
         if (schemaContent.format === "ts" || schemaContent.format === "pas") {
             return {
                 source: schemaContent.content,
-                config: undefined,
+                config: schemaContent.config,
                 fullPath: undefined,
                 format: schemaContent.format,
             };
diff --git a/ts/packages/dispatcher/dispatcher/test/actionSchemaFileCache.spec.ts b/ts/packages/dispatcher/dispatcher/test/actionSchemaFileCache.spec.ts
new file mode 100644
index 0000000000..909f8f8d42
--- /dev/null
+++ b/ts/packages/dispatcher/dispatcher/test/actionSchemaFileCache.spec.ts
@@ -0,0 +1,137 @@
+// Copyright (c) Microsoft Corporation.
+// Licensed under the MIT License.
+
+import crypto from "node:crypto";
+import { ActionSchemaFileCache } from "../src/translation/actionSchemaFileCache.js";
+import { ActionConfig } from "../src/translation/actionConfig.js";
+import { SchemaContent } from "@typeagent/agent-sdk";
+
+describe("ActionSchemaFileCache", () => {
+    describe("getSchemaSource preserves config", () => {
+        it("should include config in hash when schema has a config", () => {
+            const schemaContentWithConfig: SchemaContent = {
+                format: "ts",
+                content: 'export type TestAction = { actionName: "test"; }',
+                config: '{"configKey": "configValue"}',
+            };
+
+            const schemaContentWithoutConfig: SchemaContent = {
+                format: "ts",
+                content: 'export type TestAction = { actionName: "test"; }',
+                config: undefined,
+            };
+
+            const makeActionConfig = (
+                schemaFile: SchemaContent,
+            ): ActionConfig =>
+                ({
+                    emojiChar: "🔧",
+                    cachedActivities: undefined,
+                    schemaDefaultEnabled: true,
+                    actionDefaultEnabled: true,
+                    transient: false,
+                    schemaName: "testSchema",
+                    schemaFilePath: undefined,
+                    originalSchemaFilePath: undefined,
+                    description: "test",
+                    schemaType: "TestAction",
+                    schemaFile,
+                    grammarFile: undefined,
+                }) as ActionConfig;
+
+            const cache = new ActionSchemaFileCache();
+
+            // Get schema file with config - this will parse and cache
+            // We expect this to throw because the schema content isn't a real
+            // parseable schema, but the important thing is to verify getSchemaSource
+            // passes the config through, which affects the hash.
+            // We can verify this by checking that two configs produce different hashes.
+
+            // Access the private getSchemaSource method via prototype trick
+            const getSchemaSource = (
+                ActionSchemaFileCache.prototype as any
+            ).getSchemaSource.bind(cache);
+
+            const resultWithConfig = getSchemaSource(
+                makeActionConfig(schemaContentWithConfig),
+            );
+            const resultWithoutConfig = getSchemaSource(
+                makeActionConfig(schemaContentWithoutConfig),
+            );
+
+            // The fix ensures config is passed through from schemaContent
+            expect(resultWithConfig.config).toBe(
+                '{"configKey": "configValue"}',
+            );
+            expect(resultWithoutConfig.config).toBeUndefined();
+
+            // Verify format and source are also correctly passed
+            expect(resultWithConfig.format).toBe("ts");
+            expect(resultWithConfig.source).toBe(
+                schemaContentWithConfig.content,
+            );
+        });
+
+        it("should not include config for pas format schemas", () => {
+            const pasSchemaContent: SchemaContent = {
+                format: "pas",
+                content: '{"entry": {}}',
+                config: undefined,
+            };
+
+            const makeActionConfig = (
+                schemaFile: SchemaContent,
+            ): ActionConfig =>
+                ({
+                    emojiChar: "🔧",
+                    cachedActivities: undefined,
+                    schemaDefaultEnabled: true,
+                    actionDefaultEnabled: true,
+                    transient: false,
+                    schemaName: "testSchema",
+                    schemaFilePath: undefined,
+                    originalSchemaFilePath: undefined,
+                    description: "test",
+                    schemaType: "TestAction",
+                    schemaFile: pasSchemaContent,
+                    grammarFile: undefined,
+                }) as ActionConfig;
+
+            const cache = new ActionSchemaFileCache();
+            const getSchemaSource = (
+                ActionSchemaFileCache.prototype as any
+            ).getSchemaSource.bind(cache);
+
+            const result = getSchemaSource(makeActionConfig(pasSchemaContent));
+            expect(result.config).toBeUndefined();
+            expect(result.format).toBe("pas");
+        });
+
+        it("should produce different hashes when config differs", () => {
+            // This test verifies the consequence of the bug fix:
+            // when config is correctly included, the hash changes
+            // when config content changes, ensuring proper cache invalidation.
+
+            function hashStrings(...str: string[]) {
+                const hash = crypto.createHash("sha256");
+                for (const s of str) {
+                    hash.update(s);
+                }
+                return hash.digest("base64");
+            }
+
+            const schemaType = JSON.stringify("TestAction");
+            const source = 'export type TestAction = { actionName: "test"; }';
+            const config = '{"configKey": "configValue"}';
+
+            // With the fix: config is included in the hash
+            const hashWithConfig = hashStrings(schemaType, source, config);
+            const hashWithoutConfig = hashStrings(schemaType, source);
+
+            // The hashes must differ - if config was dropped (the bug),
+            // both would be identical and config changes wouldn't
+            // invalidate the cache
+            expect(hashWithConfig).not.toBe(hashWithoutConfig);
+        });
+    });
+});