diff --git a/python/semantic_kernel/schema/kernel_json_schema_builder.py b/python/semantic_kernel/schema/kernel_json_schema_builder.py
index 5ec519b5b377..809f76fb82c5 100644
--- a/python/semantic_kernel/schema/kernel_json_schema_builder.py
+++ b/python/semantic_kernel/schema/kernel_json_schema_builder.py
@@ -86,6 +86,7 @@ def build_model_schema(
         hints = get_type_hints(model, globalns=model_module_globals, localns={})
 
         for field_name, field_type in hints.items():
+            field_type = cls._resolve_nested_forward_refs(field_type, model_module_globals)
             field_description = None
             if hasattr(model, "model_fields") and field_name in model.model_fields:
                 field_info = model.model_fields[field_name]
@@ -150,6 +151,59 @@ def get_json_schema(cls, parameter_type: type) -> dict[str, Any]:
         type_name = TYPE_MAPPING.get(parameter_type, "object")
         return {"type": type_name}
 
+    @classmethod
+    def _resolve_nested_forward_refs(cls, annotation: Any, globalns: dict[str, Any]) -> Any:
+        """Resolve string forward references nested inside a generic alias.
+
+        `get_type_hints` evaluates an annotation that *is* a string, but it does not descend into
+        a generic alias that already exists as an object. `list["Inner"]` goes through
+        `list.__class_getitem__`, which stores `"Inner"` verbatim instead of wrapping it in a
+        `ForwardRef`, so nothing resolves it and `build` formats the bare string rather than the
+        class it names.
+
+        Args:
+            annotation: The annotation to resolve, typically a generic alias.
+            globalns: The globals of the module the owning model was defined in.
+
+        Returns:
+            Any: The annotation with resolvable string arguments replaced by the types they name,
+                or the original annotation when nothing could be resolved.
+        """
+        args = get_args(annotation)
+        if not args:
+            return annotation
+
+        resolved_args = []
+        changed = False
+        for arg in args:
+            reference = arg if isinstance(arg, str) else getattr(arg, "__forward_arg__", None)
+            if reference is not None:
+                try:
+                    resolved = eval(reference, globalns, {})
+                except Exception:
+                    # Not resolvable from this module; leave the annotation alone so the existing
+                    # fallback applies instead of raising while a schema is being built.
+                    return annotation
+                changed = True
+            else:
+                resolved = cls._resolve_nested_forward_refs(arg, globalns)
+                changed = changed or resolved is not arg
+            resolved_args.append(resolved)
+
+        if not changed:
+            return annotation
+
+        copy_with = getattr(annotation, "copy_with", None)
+        if copy_with is not None:
+            return copy_with(tuple(resolved_args))
+        origin = get_origin(annotation)
+        if origin is None:
+            return annotation
+        try:
+            return origin[tuple(resolved_args)]
+        except TypeError:
+            return annotation
+
     @classmethod
     def handle_complex_type(
         cls, parameter_type: type, description: str | None = None, structured_output: bool = False
diff --git a/python/tests/unit/schema/test_schema_builder.py b/python/tests/unit/schema/test_schema_builder.py
index 5d24a599c96c..ed38e55ad5cb 100644
--- a/python/tests/unit/schema/test_schema_builder.py
+++ b/python/tests/unit/schema/test_schema_builder.py
@@ -455,3 +455,67 @@ def test_build_schema_with_nonpydantic_structured_output():
     }
 
     assert structured_output_schema == expected_schema
+
+
+class InnerForward(KernelBaseModel):
+    value: int
+    label: str
+
+
+class HolderForwardList(KernelBaseModel):
+    items: list["InnerForward"] = []
+
+
+class HolderDirectList(KernelBaseModel):
+    items: list[InnerForward] = []
+
+
+class HolderForwardDict(KernelBaseModel):
+    mapping: dict[str, "InnerForward"] = {}
+
+
+class HolderForwardOptional(KernelBaseModel):
+    maybe: Optional["InnerForward"] = None
+
+
+def test_build_list_with_string_forward_reference_matches_direct_reference():
+    """`list["Inner"]` and `list[Inner]` must produce the same schema."""
+    forward = KernelJsonSchemaBuilder.build(HolderForwardList)
+    direct = KernelJsonSchemaBuilder.build(HolderDirectList)
+
+    assert forward == direct
+    assert forward["properties"]["items"]["items"]["properties"] == {
+        "value": {"type": "integer"},
+        "label": {"type": "string"},
+    }
+
+
+def test_build_dict_with_string_forward_reference():
+    schema = KernelJsonSchemaBuilder.build(HolderForwardDict)
+
+    assert schema["properties"]["mapping"]["additionalProperties"]["properties"] == {
+        "value": {"type": "integer"},
+        "label": {"type": "string"},
+    }
+
+
+def test_build_optional_with_string_forward_reference_still_works():
+    """`Optional["Inner"]` already resolved via `get_type_hints`; make sure it still does."""
+    schema = KernelJsonSchemaBuilder.build(HolderForwardOptional)
+
+    assert schema["properties"]["maybe"]["properties"] == {
+        "value": {"type": "integer"},
+        "label": {"type": "string"},
+    }
+
+
+def test_unresolvable_forward_reference_falls_back_instead_of_raising():
+    """An annotation naming something that doesn't exist must not break schema building."""
+
+    class HolderUnknown(KernelBaseModel):
+        items: list["DoesNotExistAnywhere"] = []  # noqa: F821
+
+    schema = KernelJsonSchemaBuilder.build(HolderUnknown)
+
+    assert schema["properties"]["items"]["type"] == "array"
+    assert schema["properties"]["items"]["items"] == {"type": "object"}