diff --git a/src/a365/hosting/index.ts b/src/a365/hosting/index.ts
index 8ce1653..966301f 100644
--- a/src/a365/hosting/index.ts
+++ b/src/a365/hosting/index.ts
@@ -10,6 +10,7 @@ export {
   getChannelBaggagePairs,
   getConversationIdAndItemLinkPairs,
   resolveEmbodiedAgentIds,
+  resolveSubChannel,
 } from "./turnContextUtils.js";
 export { BaggageMiddleware } from "./baggageMiddleware.js";
 export {
diff --git a/src/a365/hosting/scopeUtils.ts b/src/a365/hosting/scopeUtils.ts
index f73bf2e..8200247 100644
--- a/src/a365/hosting/scopeUtils.ts
+++ b/src/a365/hosting/scopeUtils.ts
@@ -9,7 +9,7 @@
 
 import type { SpanKind, TimeInput } from "@opentelemetry/api";
 import type { TurnContextLike } from "./types.js";
-import { resolveEmbodiedAgentIds } from "./turnContextUtils.js";
+import { resolveEmbodiedAgentIds, resolveSubChannel } from "./turnContextUtils.js";
 import { InvokeAgentScope, InferenceScope, ExecuteToolScope } from "../scopes/index.js";
 import type {
   AgentDetails,
@@ -96,7 +96,7 @@ export class ScopeUtils {
   } {
     return {
       name: turnContext?.activity?.channelId,
-      description: turnContext?.activity?.channelIdSubChannel as string | undefined,
+      description: resolveSubChannel(turnContext?.activity),
     };
   }
 
diff --git a/src/a365/hosting/turnContextUtils.ts b/src/a365/hosting/turnContextUtils.ts
index dacbb59..b4f847e 100644
--- a/src/a365/hosting/turnContextUtils.ts
+++ b/src/a365/hosting/turnContextUtils.ts
@@ -8,7 +8,7 @@
  */
 
 import { OpenTelemetryConstants } from "../constants.js";
-import type { TurnContextLike } from "./types.js";
+import type { ActivityLike, TurnContextLike } from "./types.js";
 
 function normalizePairs(pairs: Array<[string, string | undefined]>): Array<[string, string]> {
   return pairs
@@ -87,6 +87,33 @@ export function getTenantIdPair(turnContext: TurnContextLike): Array<[string, st
   return tenantId ? [[OpenTelemetryConstants.TENANT_ID_KEY, tenantId]] : [];
 }
 
+/**
+ * Resolves the subchannel from an activity, falling back to channelData.productContext
+ * when channelIdSubChannel is not set directly.
+ */
+export function resolveSubChannel(activity: ActivityLike | undefined): string | undefined {
+  const rawSubChannel = activity?.channelIdSubChannel;
+  let subChannel =
+    typeof rawSubChannel === "string" && rawSubChannel.trim() !== "" ? rawSubChannel : undefined;
+  if (!subChannel) {
+    try {
+      const rawChannelData = activity?.channelData;
+      let channelData: Record<string, unknown> | undefined;
+      if (typeof rawChannelData === "string") {
+        channelData = JSON.parse(rawChannelData) as Record<string, unknown>;
+      } else if (rawChannelData && typeof rawChannelData === "object") {
+        channelData = rawChannelData as Record<string, unknown>;
+      }
+      if (channelData && typeof channelData.productContext === "string") {
+        subChannel = channelData.productContext as string;
+      }
+    } catch {
+      // Ignore parse errors – subChannel stays undefined
+    }
+  }
+  return subChannel;
+}
+
 /**
  * Extracts channel baggage pairs from the TurnContext.
  */
@@ -94,12 +121,12 @@ export function getChannelBaggagePairs(turnContext: TurnContextLike): Array<[str
   if (!turnContext) {
     return [];
   }
+
+  const subChannel = resolveSubChannel(turnContext.activity);
+
   const pairs: Array<[string, string | undefined]> = [
     [OpenTelemetryConstants.CHANNEL_NAME_KEY, turnContext.activity?.channelId],
-    [
-      OpenTelemetryConstants.CHANNEL_LINK_KEY,
-      turnContext.activity?.channelIdSubChannel as string | undefined,
-    ],
+    [OpenTelemetryConstants.CHANNEL_LINK_KEY, subChannel],
   ];
   return normalizePairs(pairs);
 }
diff --git a/src/a365/hosting/types.ts b/src/a365/hosting/types.ts
index ea2ec49..eb4b93f 100644
--- a/src/a365/hosting/types.ts
+++ b/src/a365/hosting/types.ts
@@ -18,6 +18,7 @@ export interface ActivityLike {
   text?: string;
   channelId?: string;
   channelIdSubChannel?: string | unknown;
+  channelData?: unknown;
   serviceUrl?: string;
   from?: {
     id?: string;
diff --git a/src/a365/index.ts b/src/a365/index.ts
index 2650d0a..9bfa560 100644
--- a/src/a365/index.ts
+++ b/src/a365/index.ts
@@ -94,6 +94,7 @@ export {
   getChannelBaggagePairs,
   getConversationIdAndItemLinkPairs,
   resolveEmbodiedAgentIds,
+  resolveSubChannel,
   BaggageMiddleware,
   OutputLoggingMiddleware,
   A365_PARENT_SPAN_KEY,
diff --git a/test/internal/unit/a365/hosting/scopeUtils.test.ts b/test/internal/unit/a365/hosting/scopeUtils.test.ts
index ab1952f..2be9c4a 100644
--- a/test/internal/unit/a365/hosting/scopeUtils.test.ts
+++ b/test/internal/unit/a365/hosting/scopeUtils.test.ts
@@ -215,6 +215,33 @@ describe("ScopeUtils", () => {
         description: undefined,
       });
     });
+
+    it("should fall back to productContext when channelIdSubChannel is not set", () => {
+      const ctx = makeCtx({
+        activity: {
+          channelId: "teams",
+          channelData: { productContext: "from-product-context" },
+        },
+      });
+      expect(ScopeUtils.deriveChannelObject(ctx)).toEqual({
+        name: "teams",
+        description: "from-product-context",
+      });
+    });
+
+    it("should prefer channelIdSubChannel over productContext", () => {
+      const ctx = makeCtx({
+        activity: {
+          channelId: "teams",
+          channelIdSubChannel: "direct-subchannel",
+          channelData: { productContext: "from-product-context" },
+        },
+      });
+      expect(ScopeUtils.deriveChannelObject(ctx)).toEqual({
+        name: "teams",
+        description: "direct-subchannel",
+      });
+    });
   });
 
   describe("populateInferenceScopeFromTurnContext", () => {
diff --git a/test/internal/unit/a365/hosting/turnContextUtils.test.ts b/test/internal/unit/a365/hosting/turnContextUtils.test.ts
index 2b2851a..7490d4c 100644
--- a/test/internal/unit/a365/hosting/turnContextUtils.test.ts
+++ b/test/internal/unit/a365/hosting/turnContextUtils.test.ts
@@ -12,9 +12,10 @@ import {
   getChannelBaggagePairs,
   getConversationIdAndItemLinkPairs,
   resolveEmbodiedAgentIds,
+  resolveSubChannel,
   OpenTelemetryConstants,
 } from "../../../../../src/a365/index.js";
-import type { TurnContextLike } from "../../../../../src/a365/index.js";
+import type { TurnContextLike, ActivityLike } from "../../../../../src/a365/index.js";
 
 let contextManager: AsyncLocalStorageContextManager;
 
@@ -259,6 +260,42 @@ describe("TurnContextUtils", () => {
       const pairs = getChannelBaggagePairs(null as unknown as TurnContextLike);
       expect(pairs).toEqual([]);
     });
+
+    it("should extract subChannel from productContext when channelIdSubChannel is not set", () => {
+      const ctx = makeMockTurnContext();
+      ctx.activity.channelIdSubChannel = undefined;
+      ctx.activity.channelData = { productContext: "from-product-context" };
+      const pairs = getChannelBaggagePairs(ctx);
+      const obj = Object.fromEntries(pairs);
+      expect(obj[OpenTelemetryConstants.CHANNEL_LINK_KEY]).toBe("from-product-context");
+    });
+
+    it("should prefer channelIdSubChannel over productContext", () => {
+      const ctx = makeMockTurnContext();
+      ctx.activity.channelIdSubChannel = "direct-subchannel";
+      ctx.activity.channelData = { productContext: "from-product-context" };
+      const pairs = getChannelBaggagePairs(ctx);
+      const obj = Object.fromEntries(pairs);
+      expect(obj[OpenTelemetryConstants.CHANNEL_LINK_KEY]).toBe("direct-subchannel");
+    });
+
+    it("should extract subChannel from JSON string channelData", () => {
+      const ctx = makeMockTurnContext();
+      ctx.activity.channelIdSubChannel = undefined;
+      ctx.activity.channelData = JSON.stringify({ productContext: "json-string-context" });
+      const pairs = getChannelBaggagePairs(ctx);
+      const obj = Object.fromEntries(pairs);
+      expect(obj[OpenTelemetryConstants.CHANNEL_LINK_KEY]).toBe("json-string-context");
+    });
+
+    it("should handle invalid JSON channelData gracefully", () => {
+      const ctx = makeMockTurnContext();
+      ctx.activity.channelIdSubChannel = undefined;
+      ctx.activity.channelData = "not-valid-json{{{";
+      const pairs = getChannelBaggagePairs(ctx);
+      const obj = Object.fromEntries(pairs);
+      expect(obj[OpenTelemetryConstants.CHANNEL_LINK_KEY]).toBeUndefined();
+    });
   });
 
   describe("getConversationIdAndItemLinkPairs", () => {
@@ -277,4 +314,44 @@ describe("TurnContextUtils", () => {
       expect(pairs).toEqual([]);
     });
   });
+
+  describe("resolveSubChannel", () => {
+    it("should return channelIdSubChannel when set", () => {
+      const activity: ActivityLike = { channelIdSubChannel: "general" };
+      expect(resolveSubChannel(activity)).toBe("general");
+    });
+
+    it("should fall back to productContext from object channelData", () => {
+      const activity: ActivityLike = {
+        channelData: { productContext: "from-product-context" },
+      };
+      expect(resolveSubChannel(activity)).toBe("from-product-context");
+    });
+
+    it("should fall back to productContext from JSON string channelData", () => {
+      const activity: ActivityLike = {
+        channelData: JSON.stringify({ productContext: "json-string-context" }),
+      };
+      expect(resolveSubChannel(activity)).toBe("json-string-context");
+    });
+
+    it("should return undefined for invalid JSON channelData", () => {
+      const activity: ActivityLike = {
+        channelData: "not-valid-json{{{",
+      };
+      expect(resolveSubChannel(activity)).toBeUndefined();
+    });
+
+    it("should prefer channelIdSubChannel over productContext", () => {
+      const activity: ActivityLike = {
+        channelIdSubChannel: "direct-subchannel",
+        channelData: { productContext: "from-product-context" },
+      };
+      expect(resolveSubChannel(activity)).toBe("direct-subchannel");
+    });
+
+    it("should return undefined when activity is undefined", () => {
+      expect(resolveSubChannel(undefined)).toBeUndefined();
+    });
+  });
 });