diff --git a/openhands/core/config/agent_config.py b/openhands/core/config/agent_config.py
index 2420c89387..393ddc6bd7 100644
--- a/openhands/core/config/agent_config.py
+++ b/openhands/core/config/agent_config.py
@@ -1,6 +1,6 @@
 from __future__ import annotations
 
-from pydantic import BaseModel, Field, ValidationError
+from pydantic import BaseModel, ConfigDict, Field, ValidationError
 
 from openhands.core.config.condenser_config import CondenserConfig, NoOpCondenserConfig
 from openhands.core.config.extended_config import ExtendedConfig
@@ -47,7 +47,7 @@ class AgentConfig(BaseModel):
     extended: ExtendedConfig = Field(default_factory=lambda: ExtendedConfig({}))
     """Extended configuration for the agent."""
 
-    model_config = {'extra': 'forbid'}
+    model_config = ConfigDict(extra='forbid')
 
     @classmethod
     def from_toml_section(cls, data: dict) -> dict[str, AgentConfig]:
diff --git a/openhands/core/config/condenser_config.py b/openhands/core/config/condenser_config.py
index 9c9a056d80..804198143d 100644
--- a/openhands/core/config/condenser_config.py
+++ b/openhands/core/config/condenser_config.py
@@ -2,7 +2,7 @@ from __future__ import annotations
 
 from typing import Literal, cast
 
-from pydantic import BaseModel, Field, ValidationError
+from pydantic import BaseModel, ConfigDict, Field, ValidationError
 
 from openhands.core import logger
 from openhands.core.config.llm_config import LLMConfig
@@ -13,7 +13,7 @@ class NoOpCondenserConfig(BaseModel):
 
     type: Literal['noop'] = Field('noop')
 
-    model_config = {'extra': 'forbid'}
+    model_config = ConfigDict(extra='forbid')
 
 
 class ObservationMaskingCondenserConfig(BaseModel):
@@ -26,7 +26,7 @@ class ObservationMaskingCondenserConfig(BaseModel):
         ge=1,
     )
 
-    model_config = {'extra': 'forbid'}
+    model_config = ConfigDict(extra='forbid')
 
 
 class BrowserOutputCondenserConfig(BaseModel):
@@ -55,7 +55,7 @@ class RecentEventsCondenserConfig(BaseModel):
         default=100, description='Maximum number of events to keep.', ge=1
     )
 
-    model_config = {'extra': 'forbid'}
+    model_config = ConfigDict(extra='forbid')
 
 
 class LLMSummarizingCondenserConfig(BaseModel):
@@ -82,7 +82,7 @@ class LLMSummarizingCondenserConfig(BaseModel):
         description='Maximum length of the event representations to be passed to the LLM.',
     )
 
-    model_config = {'extra': 'forbid'}
+    model_config = ConfigDict(extra='forbid')
 
 
 class AmortizedForgettingCondenserConfig(BaseModel):
@@ -102,7 +102,7 @@ class AmortizedForgettingCondenserConfig(BaseModel):
         ge=0,
     )
 
-    model_config = {'extra': 'forbid'}
+    model_config = ConfigDict(extra='forbid')
 
 
 class LLMAttentionCondenserConfig(BaseModel):
@@ -125,7 +125,7 @@ class LLMAttentionCondenserConfig(BaseModel):
         ge=0,
     )
 
-    model_config = {'extra': 'forbid'}
+    model_config = ConfigDict(extra='forbid')
 
 
 class StructuredSummaryCondenserConfig(BaseModel):
@@ -152,7 +152,7 @@ class StructuredSummaryCondenserConfig(BaseModel):
         description='Maximum length of the event representations to be passed to the LLM.',
     )
 
-    model_config = {'extra': 'forbid'}
+    model_config = ConfigDict(extra='forbid')
 
 
 class CondenserPipelineConfig(BaseModel):
@@ -167,7 +167,7 @@ class CondenserPipelineConfig(BaseModel):
         description='List of condenser configurations to be used in the pipeline.',
     )
 
-    model_config = {'extra': 'forbid'}
+    model_config = ConfigDict(extra='forbid')
 
 
 # Type alias for convenience
diff --git a/openhands/core/config/kubernetes_config.py b/openhands/core/config/kubernetes_config.py
index 1ba554825c..69528744bc 100644
--- a/openhands/core/config/kubernetes_config.py
+++ b/openhands/core/config/kubernetes_config.py
@@ -1,4 +1,4 @@
-from pydantic import BaseModel, Field, ValidationError
+from pydantic import BaseModel, ConfigDict, Field, ValidationError
 
 
 class KubernetesConfig(BaseModel):
@@ -62,7 +62,7 @@ class KubernetesConfig(BaseModel):
         description='Run the runtime sandbox container in privileged mode for use with docker-in-docker',
     )
 
-    model_config = {'extra': 'forbid'}
+    model_config = ConfigDict(extra='forbid')
 
     @classmethod
     def from_toml_section(cls, data: dict) -> dict[str, 'KubernetesConfig']:
diff --git a/openhands/core/config/llm_config.py b/openhands/core/config/llm_config.py
index c39986746a..2706fc5fb8 100644
--- a/openhands/core/config/llm_config.py
+++ b/openhands/core/config/llm_config.py
@@ -3,7 +3,7 @@ from __future__ import annotations
 import os
 from typing import Any
 
-from pydantic import BaseModel, Field, SecretStr, ValidationError
+from pydantic import BaseModel, ConfigDict, Field, SecretStr, ValidationError
 
 from openhands.core.logger import LOG_DIR
 from openhands.core.logger import openhands_logger as logger
@@ -92,7 +92,7 @@ class LLMConfig(BaseModel):
         description='Safety settings for models that support them (like Mistral AI and Gemini)',
     )
 
-    model_config = {'extra': 'forbid'}
+    model_config = ConfigDict(extra='forbid')
 
     @classmethod
     def from_toml_section(cls, data: dict) -> dict[str, LLMConfig]:
diff --git a/openhands/core/config/mcp_config.py b/openhands/core/config/mcp_config.py
index dab456de00..6a20a63b20 100644
--- a/openhands/core/config/mcp_config.py
+++ b/openhands/core/config/mcp_config.py
@@ -2,7 +2,7 @@ import os
 from typing import TYPE_CHECKING
 from urllib.parse import urlparse
 
-from pydantic import BaseModel, Field, ValidationError, model_validator
+from pydantic import BaseModel, ConfigDict, Field, ValidationError, model_validator
 
 if TYPE_CHECKING:
     from openhands.core.config.openhands_config import OpenHandsConfig
@@ -72,7 +72,7 @@ class MCPConfig(BaseModel):
     stdio_servers: list[MCPStdioServerConfig] = Field(default_factory=list)
     shttp_servers: list[MCPSHTTPServerConfig] = Field(default_factory=list)
 
-    model_config = {'extra': 'forbid'}
+    model_config = ConfigDict(extra='forbid')
 
     @staticmethod
     def _normalize_servers(servers_data: list[dict | str]) -> list[dict]:
diff --git a/openhands/core/config/openhands_config.py b/openhands/core/config/openhands_config.py
index 69b94db2f1..d2908f0530 100644
--- a/openhands/core/config/openhands_config.py
+++ b/openhands/core/config/openhands_config.py
@@ -1,7 +1,7 @@
 import os
 from typing import Any, ClassVar
 
-from pydantic import BaseModel, Field, SecretStr
+from pydantic import BaseModel, ConfigDict, Field, SecretStr
 
 from openhands.core import logger
 from openhands.core.config.agent_config import AgentConfig
@@ -114,7 +114,7 @@ class OpenHandsConfig(BaseModel):
 
     defaults_dict: ClassVar[dict] = {}
 
-    model_config = {'extra': 'forbid'}
+    model_config = ConfigDict(extra='forbid')
 
     def get_llm_config(self, name: str = 'llm') -> LLMConfig:
         """'llm' is the name for default config (for backward compatibility prior to 0.8)."""
diff --git a/openhands/core/config/sandbox_config.py b/openhands/core/config/sandbox_config.py
index 887a020d8a..a57422325d 100644
--- a/openhands/core/config/sandbox_config.py
+++ b/openhands/core/config/sandbox_config.py
@@ -1,6 +1,6 @@
 import os
 
-from pydantic import BaseModel, Field, ValidationError, model_validator
+from pydantic import BaseModel, ConfigDict, Field, ValidationError, model_validator
 
 
 class SandboxConfig(BaseModel):
@@ -88,7 +88,7 @@ class SandboxConfig(BaseModel):
         description="Volume mounts in the format 'host_path:container_path[:mode]', e.g. '/my/host/dir:/workspace:rw'. Multiple mounts can be specified using commas, e.g. '/path1:/workspace/path1,/path2:/workspace/path2:ro'",
     )
 
-    model_config = {'extra': 'forbid'}
+    model_config = ConfigDict(extra='forbid')
 
     @classmethod
     def from_toml_section(cls, data: dict) -> dict[str, 'SandboxConfig']:
diff --git a/openhands/core/config/security_config.py b/openhands/core/config/security_config.py
index 20c975f786..774e8ad4d9 100644
--- a/openhands/core/config/security_config.py
+++ b/openhands/core/config/security_config.py
@@ -1,4 +1,4 @@
-from pydantic import BaseModel, Field, ValidationError
+from pydantic import BaseModel, ConfigDict, Field, ValidationError
 
 
 class SecurityConfig(BaseModel):
@@ -12,7 +12,7 @@ class SecurityConfig(BaseModel):
     confirmation_mode: bool = Field(default=False)
     security_analyzer: str | None = Field(default=None)
 
-    model_config = {'extra': 'forbid'}
+    model_config = ConfigDict(extra='forbid')
 
     @classmethod
     def from_toml_section(cls, data: dict) -> dict[str, 'SecurityConfig']:
diff --git a/openhands/integrations/provider.py b/openhands/integrations/provider.py
index 2e60f90476..e35c924391 100644
--- a/openhands/integrations/provider.py
+++ b/openhands/integrations/provider.py
@@ -5,6 +5,7 @@ from typing import Annotated, Any, Coroutine, Literal, overload
 
 from pydantic import (
     BaseModel,
+    ConfigDict,
     Field,
     SecretStr,
     WithJsonSchema,
@@ -34,10 +35,10 @@ class ProviderToken(BaseModel):
     user_id: str | None = Field(default=None)
     host: str | None = Field(default=None)
 
-    model_config = {
-        'frozen': True,  # Makes the entire model immutable
-        'validate_assignment': True,
-    }
+    model_config = ConfigDict(
+        frozen=True,  # Makes the entire model immutable
+        validate_assignment=True,
+    )
 
     @classmethod
     def from_value(cls, token_value: ProviderToken | dict[str, str]) -> ProviderToken:
@@ -62,10 +63,10 @@ class CustomSecret(BaseModel):
     secret: SecretStr = Field(default_factory=lambda: SecretStr(''))
     description: str = Field(default='')
 
-    model_config = {
-        'frozen': True,  # Makes the entire model immutable
-        'validate_assignment': True,
-    }
+    model_config = ConfigDict(
+        frozen=True,  # Makes the entire model immutable
+        validate_assignment=True,
+    )
 
     @classmethod
     def from_value(cls, secret_value: CustomSecret | dict[str, str]) -> CustomSecret:
diff --git a/openhands/mcp/client.py b/openhands/mcp/client.py
index 2256dba396..8b90fe98a1 100644
--- a/openhands/mcp/client.py
+++ b/openhands/mcp/client.py
@@ -4,7 +4,7 @@ from fastmcp import Client
 from fastmcp.client.transports import SSETransport, StreamableHttpTransport
 from mcp import McpError
 from mcp.types import CallToolResult
-from pydantic import BaseModel, Field
+from pydantic import BaseModel, ConfigDict, Field
 
 from openhands.core.config.mcp_config import MCPSHTTPServerConfig, MCPSSEServerConfig
 from openhands.core.logger import openhands_logger as logger
@@ -16,14 +16,13 @@ class MCPClient(BaseModel):
     A collection of tools that connects to an MCP server and manages available tools through the Model Context Protocol.
     """
 
+    model_config = ConfigDict(arbitrary_types_allowed=True)
+
     client: Optional[Client] = None
     description: str = 'MCP client tools for server interaction'
     tools: list[MCPClientTool] = Field(default_factory=list)
     tool_map: dict[str, MCPClientTool] = Field(default_factory=dict)
 
-    class Config:
-        arbitrary_types_allowed = True
-
     async def _initialize_and_list_tools(self) -> None:
         """Initialize session and populate tool map."""
         if not self.client:
diff --git a/openhands/mcp/tool.py b/openhands/mcp/tool.py
index 7d99f78809..7bbf332a58 100644
--- a/openhands/mcp/tool.py
+++ b/openhands/mcp/tool.py
@@ -1,4 +1,5 @@
 from mcp.types import Tool
+from pydantic import ConfigDict
 
 
 class MCPClientTool(Tool):
@@ -9,8 +10,7 @@ class MCPClientTool(Tool):
     by the MCPClient for each operation.
     """
 
-    class Config:
-        arbitrary_types_allowed = True
+    model_config = ConfigDict(arbitrary_types_allowed=True)
 
     def to_param(self) -> dict:
         """Convert tool to function call format."""
diff --git a/openhands/server/routes/manage_conversations.py b/openhands/server/routes/manage_conversations.py
index d2999e304f..563487ceb3 100644
--- a/openhands/server/routes/manage_conversations.py
+++ b/openhands/server/routes/manage_conversations.py
@@ -7,7 +7,7 @@ from datetime import datetime, timezone
 from fastapi import APIRouter, Depends, status
 from fastapi.responses import JSONResponse
 from jinja2 import Environment, FileSystemLoader
-from pydantic import BaseModel, Field
+from pydantic import BaseModel, ConfigDict, Field
 
 from openhands.core.config.llm_config import LLMConfig
 from openhands.core.logger import openhands_logger as logger
@@ -88,7 +88,7 @@ class InitSessionRequest(BaseModel):
     if os.getenv('ALLOW_SET_CONVERSATION_ID', '0') == '1':
         conversation_id: str = Field(default_factory=lambda: uuid.uuid4().hex)
 
-    model_config = {'extra': 'forbid'}
+    model_config = ConfigDict(extra='forbid')
 
 
 class ConversationResponse(BaseModel):
diff --git a/openhands/server/session/conversation_init_data.py b/openhands/server/session/conversation_init_data.py
index ea3f1f4d6b..4f459d8857 100644
--- a/openhands/server/session/conversation_init_data.py
+++ b/openhands/server/session/conversation_init_data.py
@@ -1,4 +1,4 @@
-from pydantic import Field
+from pydantic import ConfigDict, Field
 
 from openhands.integrations.provider import CUSTOM_SECRETS_TYPE, PROVIDER_TOKEN_TYPE
 from openhands.integrations.service_types import ProviderType
@@ -18,6 +18,6 @@ class ConversationInitData(Settings):
     conversation_instructions: str | None = Field(default=None)
     git_provider: ProviderType | None = Field(default=None)
 
-    model_config = {
-        'arbitrary_types_allowed': True,
-    }
+    model_config = ConfigDict(
+        arbitrary_types_allowed=True,
+    )
diff --git a/openhands/server/settings.py b/openhands/server/settings.py
index b3f4dee784..7399d619c1 100644
--- a/openhands/server/settings.py
+++ b/openhands/server/settings.py
@@ -2,6 +2,7 @@ from __future__ import annotations
 
 from pydantic import (
     BaseModel,
+    ConfigDict,
     SecretStr,
 )
 
@@ -39,7 +40,7 @@ class GETSettingsModel(Settings):
     llm_api_key_set: bool
     search_api_key_set: bool = False
 
-    model_config = {'use_enum_values': True}
+    model_config = ConfigDict(use_enum_values=True)
 
 
 class CustomSecretWithoutValueModel(BaseModel):
diff --git a/openhands/storage/data_models/settings.py b/openhands/storage/data_models/settings.py
index 2230447180..a037ef643b 100644
--- a/openhands/storage/data_models/settings.py
+++ b/openhands/storage/data_models/settings.py
@@ -2,6 +2,7 @@ from __future__ import annotations
 
 from pydantic import (
     BaseModel,
+    ConfigDict,
     Field,
     SecretStr,
     SerializationInfo,
@@ -45,9 +46,9 @@ class Settings(BaseModel):
     email: str | None = None
     email_verified: bool | None = None
 
-    model_config = {
-        'validate_assignment': True,
-    }
+    model_config = ConfigDict(
+        validate_assignment=True,
+    )
 
     @field_serializer('llm_api_key', 'search_api_key')
     def api_key_serializer(self, api_key: SecretStr | None, info: SerializationInfo):
diff --git a/openhands/storage/data_models/user_secrets.py b/openhands/storage/data_models/user_secrets.py
index 76318d723f..43db861e21 100644
--- a/openhands/storage/data_models/user_secrets.py
+++ b/openhands/storage/data_models/user_secrets.py
@@ -3,6 +3,7 @@ from typing import Any
 
 from pydantic import (
     BaseModel,
+    ConfigDict,
     Field,
     SerializationInfo,
     field_serializer,
@@ -31,11 +32,11 @@ class UserSecrets(BaseModel):
         default_factory=lambda: MappingProxyType({})
     )
 
-    model_config = {
-        'frozen': True,
-        'validate_assignment': True,
-        'arbitrary_types_allowed': True,
-    }
+    model_config = ConfigDict(
+        frozen=True,
+        validate_assignment=True,
+        arbitrary_types_allowed=True,
+    )
 
     @field_serializer('provider_tokens')
     def provider_tokens_serializer(