diff --git a/langchain-core/src/runnables/base.ts b/langchain-core/src/runnables/base.ts
index d2ba10b6f6bd..09c8c7162ee9 100644
--- a/langchain-core/src/runnables/base.ts
+++ b/langchain-core/src/runnables/base.ts
@@ -2840,7 +2840,7 @@ export class RunnableWithFallbacks<RunInput, RunOutput> extends Runnable<
     options?: Partial<RunnableConfig>
   ): Promise<RunOutput> {
     const config = ensureConfig(options);
-    const callbackManager_ = await getCallbackManagerForConfig(options);
+    const callbackManager_ = await getCallbackManagerForConfig(config);
     const { runId, ...otherConfigFields } = config;
     const runManager = await callbackManager_?.handleChainStart(
       this.toJSON(),
@@ -2851,27 +2851,33 @@ export class RunnableWithFallbacks<RunInput, RunOutput> extends Runnable<
       undefined,
       otherConfigFields?.runName
     );
-    let firstError;
-    for (const runnable of this.runnables()) {
-      config?.signal?.throwIfAborted();
-      try {
-        const output = await runnable.invoke(
-          input,
-          patchConfig(otherConfigFields, { callbacks: runManager?.getChild() })
-        );
-        await runManager?.handleChainEnd(_coerceToDict(output, "output"));
-        return output;
-      } catch (e) {
+    const childConfig = patchConfig(otherConfigFields, {
+      callbacks: runManager?.getChild(),
+    });
+    const res = await AsyncLocalStorageProviderSingleton.runWithConfig(
+      childConfig,
+      async () => {
+        let firstError;
+        for (const runnable of this.runnables()) {
+          config?.signal?.throwIfAborted();
+          try {
+            const output = await runnable.invoke(input, childConfig);
+            await runManager?.handleChainEnd(_coerceToDict(output, "output"));
+            return output;
+          } catch (e) {
+            if (firstError === undefined) {
+              firstError = e;
+            }
+          }
+        }
         if (firstError === undefined) {
-          firstError = e;
+          throw new Error("No error stored at end of fallback.");
         }
+        await runManager?.handleChainError(firstError);
+        throw firstError;
       }
-    }
-    if (firstError === undefined) {
-      throw new Error("No error stored at end of fallback.");
-    }
-    await runManager?.handleChainError(firstError);
-    throw firstError;
+    );
+    return res;
   }
 
   async *_streamIterator(
@@ -2879,7 +2885,7 @@ export class RunnableWithFallbacks<RunInput, RunOutput> extends Runnable<
     options?: Partial<RunnableConfig> | undefined
   ): AsyncGenerator<RunOutput> {
     const config = ensureConfig(options);
-    const callbackManager_ = await getCallbackManagerForConfig(options);
+    const callbackManager_ = await getCallbackManagerForConfig(config);
     const { runId, ...otherConfigFields } = config;
     const runManager = await callbackManager_?.handleChainStart(
       this.toJSON(),
@@ -2898,7 +2904,8 @@ export class RunnableWithFallbacks<RunInput, RunOutput> extends Runnable<
         callbacks: runManager?.getChild(),
       });
       try {
-        stream = await runnable.stream(input, childConfig);
+        const originalStream = await runnable.stream(input, childConfig);
+        stream = consumeAsyncIterableInContext(childConfig, originalStream);
         break;
       } catch (e) {
         if (firstError === undefined) {
diff --git a/langchain-core/src/runnables/tests/runnable_with_fallbacks.test.ts b/langchain-core/src/runnables/tests/runnable_with_fallbacks.test.ts
index 652116fd70ee..7cb5c5fe04c5 100644
--- a/langchain-core/src/runnables/tests/runnable_with_fallbacks.test.ts
+++ b/langchain-core/src/runnables/tests/runnable_with_fallbacks.test.ts
@@ -1,7 +1,11 @@
 /* eslint-disable no-promise-executor-return */
 /* eslint-disable @typescript-eslint/no-explicit-any */
+/* eslint-disable no-process-env */
 import { test, expect } from "@jest/globals";
+import { AsyncLocalStorage } from "node:async_hooks";
 import { FakeLLM, FakeStreamingLLM } from "../../utils/testing/index.js";
+import { RunnableLambda } from "../base.js";
+import { AsyncLocalStorageProviderSingleton } from "../../singletons/index.js";
 
 test("RunnableWithFallbacks", async () => {
   const llm = new FakeLLM({
@@ -55,3 +59,36 @@ test("RunnableWithFallbacks stream", async () => {
   expect(chunks.length).toBeGreaterThan(1);
   expect(chunks.join("")).toEqual("What up");
 });
+
+test("RunnableWithFallbacks stream events with local storage and callbacks added via env vars", async () => {
+  process.env.LANGCHAIN_VERBOSE = "true";
+  AsyncLocalStorageProviderSingleton.initializeGlobalInstance(
+    new AsyncLocalStorage()
+  );
+  const llm = new FakeStreamingLLM({
+    thrownErrorString: "Bad error!",
+  });
+  const llmWithFallbacks = llm.withFallbacks({
+    fallbacks: [new FakeStreamingLLM({})],
+  });
+  const runnable = RunnableLambda.from(async (input: any) => {
+    const res = await llmWithFallbacks.invoke(input);
+    const stream = await llmWithFallbacks.stream(input);
+    for await (const _ of stream) {
+      void _;
+    }
+    return res;
+  });
+  const stream = await runnable.streamEvents("hi", {
+    version: "v2",
+  });
+  const chunks = [];
+  for await (const chunk of stream) {
+    if (chunk.event === "on_llm_stream") {
+      chunks.push(chunk);
+    }
+  }
+  expect(chunks.length).toBeGreaterThan(1);
+  console.log(JSON.stringify(chunks, null, 2));
+  expect(chunks.map((chunk) => chunk.data.chunk.text).join("")).toEqual("hihi");
+});