diff --git a/e2e-chatbot-app-next/CLAUDE.md b/e2e-chatbot-app-next/CLAUDE.md
index 2fb63f8..d231ee7 100644
--- a/e2e-chatbot-app-next/CLAUDE.md
+++ b/e2e-chatbot-app-next/CLAUDE.md
@@ -306,6 +306,28 @@ req.session = {
 };
 ```
 
+### On-Behalf-Of (OBO) Authentication
+
+When deployed in **Databricks Apps**, the platform injects an `x-forwarded-access-token` header containing the user's OAuth token. This enables On-Behalf-Of authentication where API calls execute with the user's identity and permissions.
+
+**How it works:**
+1. Databricks Apps injects `x-forwarded-access-token` header with user's token
+2. Chat routes extract this token from request headers
+3. Token is passed to AI SDK via `streamText({ headers: {...} })`
+4. Provider fetch wrapper uses OBO token instead of service principal
+
+**Authentication priority** (highest to lowest):
+1. OBO token (`x-forwarded-access-token` header) - when in Databricks Apps
+2. PAT token (`DATABRICKS_TOKEN` env var)
+3. OAuth service principal (`DATABRICKS_CLIENT_ID` + `DATABRICKS_CLIENT_SECRET`)
+4. CLI auth (`databricks auth token`)
+
+**Benefits of OBO:**
+- API calls use user's Unity Catalog permissions
+- MLflow traces show actual user identity
+- Custom API_PROXY backends receive user context
+- Row-level security and column masks are enforced
+
 ### Auth Middleware Usage
 
 - `authMiddleware` - Extracts session (doesn't reject)
diff --git a/e2e-chatbot-app-next/packages/ai-sdk-providers/src/providers-server.ts b/e2e-chatbot-app-next/packages/ai-sdk-providers/src/providers-server.ts
index 3772391..79d0152 100644
--- a/e2e-chatbot-app-next/packages/ai-sdk-providers/src/providers-server.ts
+++ b/e2e-chatbot-app-next/packages/ai-sdk-providers/src/providers-server.ts
@@ -122,10 +122,17 @@ async function getOrCreateDatabricksProvider(): Promise<CachedProvider> {
     baseURL: `${hostname}/serving-endpoints`,
     formatUrl: ({ baseUrl, path }) => API_PROXY ?? `${baseUrl}${path}`,
     fetch: async (...[input, init]: Parameters<typeof fetch>) => {
-      // Always get fresh token for each request (will use cache if valid)
-      const currentToken = await getProviderToken();
       const headers = new Headers(init?.headers);
-      headers.set('Authorization', `Bearer ${currentToken}`);
+
+      // Check if OBO (On-Behalf-Of) token was passed via headers from route handler.
+      // When running in Databricks Apps, the x-forwarded-access-token header contains
+      // the user's token for OBO authentication. If Authorization is already set,
+      // it means OBO headers were passed - use them instead of service principal.
+      if (!headers.has('Authorization')) {
+        // No OBO token provided, use service principal/PAT/CLI fallback
+        const currentToken = await getProviderToken();
+        headers.set('Authorization', `Bearer ${currentToken}`);
+      }
 
       return databricksFetch(input, {
         ...init,
diff --git a/e2e-chatbot-app-next/server/src/routes/chat.ts b/e2e-chatbot-app-next/server/src/routes/chat.ts
index a6df7cd..91a6ca8 100644
--- a/e2e-chatbot-app-next/server/src/routes/chat.ts
+++ b/e2e-chatbot-app-next/server/src/routes/chat.ts
@@ -107,7 +107,14 @@ chatRouter.post('/', requireAuth, async (req: Request, res: Response) => {
 
     if (!chat) {
       if (isDatabaseAvailable()) {
-        const title = await generateTitleFromUserMessage({ message });
+        // Extract OBO token for title generation (same token used for streaming below)
+        const oboTokenForTitle = req.headers[
+          'x-forwarded-access-token'
+        ] as string | undefined;
+        const title = await generateTitleFromUserMessage({
+          message,
+          oboToken: oboTokenForTitle,
+        });
 
         await saveChat({
           id,
@@ -147,9 +154,25 @@ chatRouter.post('/', requireAuth, async (req: Request, res: Response) => {
     const streamId = generateUUID();
 
     const model = await myProvider.languageModel(selectedChatModel);
+
+    // Extract OBO (On-Behalf-Of) token if present.
+    // Databricks Apps injects x-forwarded-access-token header for user authorization.
+    // When present, use it for downstream API calls to execute with user's identity/permissions.
+    const oboToken = req.headers['x-forwarded-access-token'] as string | undefined;
+
+    // Build auth headers: send both Authorization and x-forwarded-access-token
+    // for maximum compatibility with Databricks APIs and custom API_PROXY backends.
+    const oboHeaders = oboToken
+      ? {
+          Authorization: `Bearer ${oboToken}`,
+          'x-forwarded-access-token': oboToken,
+        }
+      : undefined;
+
     const result = streamText({
       model,
       messages: convertToModelMessages(uiMessages),
+      headers: oboHeaders,
       onFinish: ({ usage }) => {
         finalUsage = usage;
       },
@@ -352,7 +375,8 @@ chatRouter.get(
 chatRouter.post('/title', requireAuth, async (req: Request, res: Response) => {
   try {
     const { message } = req.body;
-    const title = await generateTitleFromUserMessage({ message });
+    const oboToken = req.headers['x-forwarded-access-token'] as string | undefined;
+    const title = await generateTitleFromUserMessage({ message, oboToken });
     res.json({ title });
   } catch (error) {
     console.error('Error generating title:', error);
@@ -387,12 +411,24 @@ chatRouter.patch(
 // Helper function to generate title from user message
 async function generateTitleFromUserMessage({
   message,
+  oboToken,
 }: {
   message: ChatMessage;
+  oboToken?: string;
 }) {
   const model = await myProvider.languageModel('title-model');
+
+  // Build OBO headers if token is present (same pattern as streaming endpoint)
+  const oboHeaders = oboToken
+    ? {
+        Authorization: `Bearer ${oboToken}`,
+        'x-forwarded-access-token': oboToken,
+      }
+    : undefined;
+
   const { text: title } = await generateText({
     model,
+    headers: oboHeaders,
     system: `\n
     - you will generate a short title based on the first message a user begins a conversation with
     - ensure it is not more than 80 characters long