diff --git a/src/DurableTask.Core/FailureDetails.cs b/src/DurableTask.Core/FailureDetails.cs
index 4e2abaaaf..c4ad18895 100644
--- a/src/DurableTask.Core/FailureDetails.cs
+++ b/src/DurableTask.Core/FailureDetails.cs
@@ -197,18 +197,13 @@ public bool IsCausedBy<T>() where T : Exception
             {
                 // This last check works for exception types defined in any loaded assembly (e.g. NuGet packages, etc.).
                 // This is a fallback that should rarely be needed except in obscure cases.
-                List<Type> matchingExceptionTypes = AppDomain.CurrentDomain.GetAssemblies()
+                var matchingExceptionTypes = AppDomain.CurrentDomain.GetAssemblies()
                     .Select(a => a.GetType(this.ErrorType, throwOnError: false))
-                    .Where(t => t is not null)
-                    .ToList();
-                if (matchingExceptionTypes.Count == 1)
-                {
-                    exceptionType = matchingExceptionTypes[0];
-                }
-                else if (matchingExceptionTypes.Count > 1)
-                {
-                    throw new AmbiguousMatchException($"Multiple exception types with the name '{this.ErrorType}' were found.");
-                }
+                    .Where(t => t is not null);
+
+                // Previously, this logic would only return true if matchingExceptionTypes found only one assembly with a type matching ErrorType.
+                // Now, it will return true if any matching assembly has a type that is assignable to T.
+                return matchingExceptionTypes.Any(matchType => typeof(T).IsAssignableFrom(matchType));
             }
 
             return exceptionType != null && typeof(T).IsAssignableFrom(exceptionType);
diff --git a/test/DurableTask.Core.Tests/ExceptionHandlingIntegrationTests.cs b/test/DurableTask.Core.Tests/ExceptionHandlingIntegrationTests.cs
index 8480418eb..a82897ca1 100644
--- a/test/DurableTask.Core.Tests/ExceptionHandlingIntegrationTests.cs
+++ b/test/DurableTask.Core.Tests/ExceptionHandlingIntegrationTests.cs
@@ -16,6 +16,8 @@ namespace DurableTask.Core.Tests
     using System;
     using System.Collections.Generic;
     using System.Diagnostics;
+    using System.Reflection;
+    using System.Reflection.Emit;
     using System.Runtime.Serialization;
     using System.Threading.Tasks;
     using DurableTask.Core.Exceptions;
@@ -541,5 +543,37 @@ protected CustomException(SerializationInfo info, StreamingContext context)
             {
             }
         }
+
+        [TestMethod]
+        public void IsCausedBy_DoesNotThrow_WhenMultipleAssembliesDefineSameType()
+        {
+            // Create two dynamic assemblies, each containing an Exception-derived type with the
+            // same fully qualified name. This simulates the scenario where the same exception type
+            // is loaded from multiple assemblies (e.g. different NuGet package versions).
+            string typeName = "TestDynamic.DuplicateException";
+            CreateDynamicAssemblyWithExceptionType(typeName, "DynAssembly1");
+            CreateDynamicAssemblyWithExceptionType(typeName, "DynAssembly2");
+
+            // Create a FailureDetails whose ErrorType won't be resolved by Type.GetType(),
+            // typeof(T).Assembly, or the calling assembly, forcing the AppDomain fallback path.
+            var details = new FailureDetails(
+                typeName, "Test error", stackTrace: null, innerFailure: null, isNonRetriable: false);
+
+            // The old implementation would either throw AmbiguousMatchException or return false
+            // when multiple assemblies contained the same type. The fix uses Any() so this should
+            // succeed without throwing.
+            bool result = details.IsCausedBy<Exception>();
+
+            Assert.IsTrue(result);
+        }
+
+        static void CreateDynamicAssemblyWithExceptionType(string typeName, string assemblyName)
+        {
+            var asmName = new AssemblyName(assemblyName);
+            var asmBuilder = AssemblyBuilder.DefineDynamicAssembly(asmName, AssemblyBuilderAccess.Run);
+            var modBuilder = asmBuilder.DefineDynamicModule(assemblyName);
+            var typeBuilder = modBuilder.DefineType(typeName, TypeAttributes.Public, typeof(Exception));
+            typeBuilder.CreateType();
+        }
     }
 }