diff --git a/packages/types/src/codebase-index.ts b/packages/types/src/codebase-index.ts
index e86c17627ff..3d85d36bf73 100644
--- a/packages/types/src/codebase-index.ts
+++ b/packages/types/src/codebase-index.ts
@@ -36,6 +36,7 @@ export const codebaseIndexProviderSchema = z.object({
 	codebaseIndexOpenAiCompatibleBaseUrl: z.string().optional(),
 	codebaseIndexOpenAiCompatibleApiKey: z.string().optional(),
 	codebaseIndexOpenAiCompatibleModelDimension: z.number().optional(),
+	codebaseIndexOpenAiCompatibleApiVersion: z.string().optional(),
 })
 
 export type CodebaseIndexProvider = z.infer<typeof codebaseIndexProviderSchema>
diff --git a/src/services/code-index/config-manager.ts b/src/services/code-index/config-manager.ts
index 678cec36a12..59d66e0655f 100644
--- a/src/services/code-index/config-manager.ts
+++ b/src/services/code-index/config-manager.ts
@@ -15,7 +15,7 @@ export class CodeIndexConfigManager {
 	private modelId?: string
 	private openAiOptions?: ApiHandlerOptions
 	private ollamaOptions?: ApiHandlerOptions
-	private openAiCompatibleOptions?: { baseUrl: string; apiKey: string; modelDimension?: number }
+	private openAiCompatibleOptions?: { baseUrl: string; apiKey: string; modelDimension?: number; apiVersion?: string }
 	private qdrantUrl?: string = "http://localhost:6333"
 	private qdrantApiKey?: string
 	private searchMinScore?: number
@@ -55,6 +55,8 @@ export class CodeIndexConfigManager {
 		const openAiCompatibleModelDimension = this.contextProxy?.getGlobalState(
 			"codebaseIndexOpenAiCompatibleModelDimension",
 		) as number | undefined
+		const openAiCompatibleApiVersion =
+			this.contextProxy?.getGlobalState("codebaseIndexOpenAiCompatibleApiVersion") ?? ""
 
 		// Update instance variables with configuration
 		this.isEnabled = codebaseIndexEnabled || false
@@ -84,6 +86,7 @@ export class CodeIndexConfigManager {
 						baseUrl: openAiCompatibleBaseUrl,
 						apiKey: openAiCompatibleApiKey,
 						modelDimension: openAiCompatibleModelDimension,
+						apiVersion: openAiCompatibleApiVersion || undefined,
 					}
 				: undefined
 	}
@@ -100,7 +103,7 @@ export class CodeIndexConfigManager {
 			modelId?: string
 			openAiOptions?: ApiHandlerOptions
 			ollamaOptions?: ApiHandlerOptions
-			openAiCompatibleOptions?: { baseUrl: string; apiKey: string }
+			openAiCompatibleOptions?: { baseUrl: string; apiKey: string; apiVersion?: string }
 			qdrantUrl?: string
 			qdrantApiKey?: string
 			searchMinScore?: number
@@ -118,6 +121,7 @@ export class CodeIndexConfigManager {
 			openAiCompatibleBaseUrl: this.openAiCompatibleOptions?.baseUrl ?? "",
 			openAiCompatibleApiKey: this.openAiCompatibleOptions?.apiKey ?? "",
 			openAiCompatibleModelDimension: this.openAiCompatibleOptions?.modelDimension,
+			openAiCompatibleApiVersion: this.openAiCompatibleOptions?.apiVersion ?? "",
 			qdrantUrl: this.qdrantUrl ?? "",
 			qdrantApiKey: this.qdrantApiKey ?? "",
 		}
@@ -185,6 +189,7 @@ export class CodeIndexConfigManager {
 		const prevOpenAiCompatibleBaseUrl = prev?.openAiCompatibleBaseUrl ?? ""
 		const prevOpenAiCompatibleApiKey = prev?.openAiCompatibleApiKey ?? ""
 		const prevOpenAiCompatibleModelDimension = prev?.openAiCompatibleModelDimension
+		const prevOpenAiCompatibleApiVersion = prev?.openAiCompatibleApiVersion ?? ""
 		const prevQdrantUrl = prev?.qdrantUrl ?? ""
 		const prevQdrantApiKey = prev?.qdrantApiKey ?? ""
 
@@ -233,10 +238,12 @@ export class CodeIndexConfigManager {
 				const currentOpenAiCompatibleBaseUrl = this.openAiCompatibleOptions?.baseUrl ?? ""
 				const currentOpenAiCompatibleApiKey = this.openAiCompatibleOptions?.apiKey ?? ""
 				const currentOpenAiCompatibleModelDimension = this.openAiCompatibleOptions?.modelDimension
+				const currentOpenAiCompatibleApiVersion = this.openAiCompatibleOptions?.apiVersion ?? ""
 				if (
 					prevOpenAiCompatibleBaseUrl !== currentOpenAiCompatibleBaseUrl ||
 					prevOpenAiCompatibleApiKey !== currentOpenAiCompatibleApiKey ||
-					prevOpenAiCompatibleModelDimension !== currentOpenAiCompatibleModelDimension
+					prevOpenAiCompatibleModelDimension !== currentOpenAiCompatibleModelDimension ||
+					prevOpenAiCompatibleApiVersion !== currentOpenAiCompatibleApiVersion
 				) {
 					return true
 				}
diff --git a/src/services/code-index/embedders/__tests__/openai-compatible.spec.ts b/src/services/code-index/embedders/__tests__/openai-compatible.spec.ts
index 271d68cc205..e7c22a1d7b7 100644
--- a/src/services/code-index/embedders/__tests__/openai-compatible.spec.ts
+++ b/src/services/code-index/embedders/__tests__/openai-compatible.spec.ts
@@ -92,6 +92,39 @@ describe("OpenAICompatibleEmbedder", () => {
 				"Base URL is required for OpenAI Compatible embedder",
 			)
 		})
+
+		it("should append api-version query parameter when provided", () => {
+			const apiVersion = "2023-05-15"
+			embedder = new OpenAICompatibleEmbedder(testBaseUrl, testApiKey, testModelId, apiVersion)
+
+			expect(MockedOpenAI).toHaveBeenCalledWith({
+				baseURL: `${testBaseUrl}?api-version=${apiVersion}`,
+				apiKey: testApiKey,
+			})
+			expect(embedder).toBeDefined()
+		})
+
+		it("should handle api-version with existing query parameters", () => {
+			const baseUrlWithParams = "https://api.example.com/v1?existing=param"
+			const apiVersion = "2023-05-15"
+			embedder = new OpenAICompatibleEmbedder(baseUrlWithParams, testApiKey, testModelId, apiVersion)
+
+			expect(MockedOpenAI).toHaveBeenCalledWith({
+				baseURL: `${baseUrlWithParams}&api-version=${apiVersion}`,
+				apiKey: testApiKey,
+			})
+			expect(embedder).toBeDefined()
+		})
+
+		it("should not modify baseURL when api-version is not provided", () => {
+			embedder = new OpenAICompatibleEmbedder(testBaseUrl, testApiKey, testModelId)
+
+			expect(MockedOpenAI).toHaveBeenCalledWith({
+				baseURL: testBaseUrl,
+				apiKey: testApiKey,
+			})
+			expect(embedder).toBeDefined()
+		})
 	})
 
 	describe("embedderInfo", () => {
diff --git a/src/services/code-index/embedders/openai-compatible.ts b/src/services/code-index/embedders/openai-compatible.ts
index 0983cc297f7..500a248c439 100644
--- a/src/services/code-index/embedders/openai-compatible.ts
+++ b/src/services/code-index/embedders/openai-compatible.ts
@@ -35,8 +35,9 @@ export class OpenAICompatibleEmbedder implements IEmbedder {
 	 * @param baseUrl The base URL for the OpenAI-compatible API endpoint
 	 * @param apiKey The API key for authentication
 	 * @param modelId Optional model identifier (defaults to "text-embedding-3-small")
+	 * @param apiVersion Optional API version for Azure OpenAI compatibility
 	 */
-	constructor(baseUrl: string, apiKey: string, modelId?: string) {
+	constructor(baseUrl: string, apiKey: string, modelId?: string, apiVersion?: string) {
 		if (!baseUrl) {
 			throw new Error("Base URL is required for OpenAI Compatible embedder")
 		}
@@ -44,8 +45,15 @@ export class OpenAICompatibleEmbedder implements IEmbedder {
 			throw new Error("API key is required for OpenAI Compatible embedder")
 		}
 
+		// For Azure OpenAI, we need to append the api-version query parameter to the baseURL
+		let finalBaseUrl = baseUrl
+		if (apiVersion) {
+			const separator = baseUrl.includes("?") ? "&" : "?"
+			finalBaseUrl = `${baseUrl}${separator}api-version=${apiVersion}`
+		}
+
 		this.embeddingsClient = new OpenAI({
-			baseURL: baseUrl,
+			baseURL: finalBaseUrl,
 			apiKey: apiKey,
 		})
 		this.defaultModelId = modelId || getDefaultModelId("openai-compatible")
diff --git a/src/services/code-index/interfaces/config.ts b/src/services/code-index/interfaces/config.ts
index 0843120fd9f..4c4e766c52b 100644
--- a/src/services/code-index/interfaces/config.ts
+++ b/src/services/code-index/interfaces/config.ts
@@ -11,7 +11,7 @@ export interface CodeIndexConfig {
 	modelId?: string
 	openAiOptions?: ApiHandlerOptions
 	ollamaOptions?: ApiHandlerOptions
-	openAiCompatibleOptions?: { baseUrl: string; apiKey: string; modelDimension?: number }
+	openAiCompatibleOptions?: { baseUrl: string; apiKey: string; modelDimension?: number; apiVersion?: string }
 	qdrantUrl?: string
 	qdrantApiKey?: string
 	searchMinScore?: number
@@ -30,6 +30,7 @@ export type PreviousConfigSnapshot = {
 	openAiCompatibleBaseUrl?: string
 	openAiCompatibleApiKey?: string
 	openAiCompatibleModelDimension?: number
+	openAiCompatibleApiVersion?: string
 	qdrantUrl?: string
 	qdrantApiKey?: string
 }
diff --git a/src/services/code-index/service-factory.ts b/src/services/code-index/service-factory.ts
index afd083b2047..a98d16810a9 100644
--- a/src/services/code-index/service-factory.ts
+++ b/src/services/code-index/service-factory.ts
@@ -52,6 +52,7 @@ export class CodeIndexServiceFactory {
 				config.openAiCompatibleOptions.baseUrl,
 				config.openAiCompatibleOptions.apiKey,
 				config.modelId,
+				config.openAiCompatibleOptions.apiVersion,
 			)
 		}
 
diff --git a/webview-ui/src/components/settings/CodeIndexSettings.tsx b/webview-ui/src/components/settings/CodeIndexSettings.tsx
index 13c9524d9f9..129af873fbe 100644
--- a/webview-ui/src/components/settings/CodeIndexSettings.tsx
+++ b/webview-ui/src/components/settings/CodeIndexSettings.tsx
@@ -144,6 +144,7 @@ export const CodeIndexSettings: React.FC<CodeIndexSettingsProps> = ({
 					.int("Dimension must be an integer")
 					.positive("Dimension must be a positive number")
 					.optional(),
+				codebaseIndexOpenAiCompatibleApiVersion: z.string().optional(),
 			}),
 		}
 
@@ -161,6 +162,7 @@ export const CodeIndexSettings: React.FC<CodeIndexSettingsProps> = ({
 				codebaseIndexOpenAiCompatibleBaseUrl: apiConfig.codebaseIndexOpenAiCompatibleBaseUrl,
 				codebaseIndexOpenAiCompatibleApiKey: apiConfig.codebaseIndexOpenAiCompatibleApiKey,
 				codebaseIndexOpenAiCompatibleModelDimension: apiConfig.codebaseIndexOpenAiCompatibleModelDimension,
+				codebaseIndexOpenAiCompatibleApiVersion: apiConfig.codebaseIndexOpenAiCompatibleApiVersion,
 			})
 			return true
 		} catch {
@@ -320,6 +322,24 @@ export const CodeIndexSettings: React.FC<CodeIndexSettingsProps> = ({
 									}
 									style={{ width: "100%" }}></VSCodeTextField>
 							</div>
+							<div className="flex items-center gap-4 font-bold">
+								<div>{t("settings:codeIndex.openaiCompatibleApiVersionLabel")}</div>
+							</div>
+							<div>
+								<VSCodeTextField
+									value={apiConfiguration.codebaseIndexOpenAiCompatibleApiVersion || ""}
+									onInput={(e: any) =>
+										setApiConfigurationField(
+											"codebaseIndexOpenAiCompatibleApiVersion",
+											e.target.value,
+										)
+									}
+									placeholder="2023-05-15"
+									style={{ width: "100%" }}></VSCodeTextField>
+								<p className="text-vscode-descriptionForeground text-sm mt-1">
+									{t("settings:codeIndex.openaiCompatibleApiVersionDescription")}
+								</p>
+							</div>
 						</div>
 					)}
 
diff --git a/webview-ui/src/i18n/locales/en/settings.json b/webview-ui/src/i18n/locales/en/settings.json
index 9083d4a204c..4da638d872b 100644
--- a/webview-ui/src/i18n/locales/en/settings.json
+++ b/webview-ui/src/i18n/locales/en/settings.json
@@ -48,6 +48,8 @@
 		"openaiKeyLabel": "OpenAI Key:",
 		"openaiCompatibleBaseUrlLabel": "Base URL:",
 		"openaiCompatibleApiKeyLabel": "API Key:",
+		"openaiCompatibleApiVersionLabel": "API Version:",
+		"openaiCompatibleApiVersionDescription": "Required for Azure OpenAI. Common values: 2023-05-15, 2024-02-01, 2024-06-01. Leave empty for other OpenAI-compatible providers.",
 		"openaiCompatibleModelDimensionLabel": "Embedding Dimension:",
 		"openaiCompatibleModelDimensionPlaceholder": "e.g., 1536",
 		"openaiCompatibleModelDimensionDescription": "The embedding dimension (output size) for your model. Check your provider's documentation for this value. Common values: 384, 768, 1536, 3072.",