diff --git a/python/packages/orchestrations/agent_framework_orchestrations/_magentic.py b/python/packages/orchestrations/agent_framework_orchestrations/_magentic.py
index 6206022f043..2ef67a922cc 100644
--- a/python/packages/orchestrations/agent_framework_orchestrations/_magentic.py
+++ b/python/packages/orchestrations/agent_framework_orchestrations/_magentic.py
@@ -427,8 +427,20 @@ def _extract_json(text: str) -> dict[str, Any]:
             raise ValueError("No JSON object found.")
         depth = 0
         end = None
+        in_string = False
+        escaped = False
         for i, ch in enumerate(text[start:], start=start):
-            if ch == "{":
+            # Braces inside string values, such as code in an instruction, do not count.
+            if in_string:
+                if escaped:
+                    escaped = False
+                elif ch == "\\":
+                    escaped = True
+                elif ch == '"':
+                    in_string = False
+            elif ch == '"':
+                in_string = True
+            elif ch == "{":
                 depth += 1
             elif ch == "}":
                 depth -= 1
diff --git a/python/packages/orchestrations/tests/test_magentic.py b/python/packages/orchestrations/tests/test_magentic.py
index 38a3dcc718c..5890c834e0d 100644
--- a/python/packages/orchestrations/tests/test_magentic.py
+++ b/python/packages/orchestrations/tests/test_magentic.py
@@ -1456,4 +1456,18 @@ def test_extract_json_reads_first_fenced_object(text: str) -> None:
     assert _extract_json(text)["is_request_satisfied"] is True
 
 
+@pytest.mark.parametrize(
+    "text",
+    [
+        '{"is_request_satisfied": true, "answer": "The f-string is missing its closing } so add it."}',
+        'Ledger: {"is_request_satisfied": true, "answer": "Open the block with { and keep going"} done',
+        '{"is_request_satisfied": true, "answer": "Escaped quote \\" then a brace }"}',
+    ],
+)
+def test_extract_json_ignores_braces_inside_strings(text: str) -> None:
+    from agent_framework_orchestrations._magentic import _extract_json  # type: ignore
+
+    assert _extract_json(text)["is_request_satisfied"] is True
+
+
 # endregion