diff --git a/vertexai/agent_engines/templates/adk.py b/vertexai/agent_engines/templates/adk.py
index 43bc996bef..58c3025285 100644
--- a/vertexai/agent_engines/templates/adk.py
+++ b/vertexai/agent_engines/templates/adk.py
@@ -926,6 +926,7 @@ def set_up(self):
         from google.adk.memory.in_memory_memory_service import InMemoryMemoryService
 
         os.environ["GOOGLE_GENAI_USE_VERTEXAI"] = "1"
+        os.environ["GOOGLE_GENAI_USE_ENTERPRISE"] = "1"
         project = self._tmpl_attrs.get("project")
         if project:
             os.environ["GOOGLE_CLOUD_PROJECT"] = project