diff --git a/server/src/__tests__/normalize-agent-mention-token.test.ts b/server/src/__tests__/normalize-agent-mention-token.test.ts
new file mode 100644
index 00000000..b8a33d1d
--- /dev/null
+++ b/server/src/__tests__/normalize-agent-mention-token.test.ts
@@ -0,0 +1,41 @@
+import { describe, expect, it } from "vitest";
+import { normalizeAgentMentionToken } from "../services/issues.ts";
+
+describe("normalizeAgentMentionToken", () => {
+  it("decodes hex numeric entities such as space ( )", () => {
+    expect(normalizeAgentMentionToken("Baba ")).toBe("Baba");
+  });
+
+  it("decodes decimal numeric entities", () => {
+    expect(normalizeAgentMentionToken("Baba ")).toBe("Baba");
+  });
+
+  it("decodes common named whitespace entities", () => {
+    expect(normalizeAgentMentionToken("Baba ")).toBe("Baba");
+  });
+
+  // Mid-token entity (review asked for this shape); we decode &→&, not strip to "Baba" (that broke M&M).
+  it("decodes a named entity in the middle of the token", () => {
+    expect(normalizeAgentMentionToken("Ba&ba")).toBe("Ba&ba");
+  });
+
+  it("decodes & so agent names with ampersands still match", () => {
+    expect(normalizeAgentMentionToken("M&M")).toBe("M&M");
+  });
+
+  it("decodes additional named entities used in rich text (e.g. ©)", () => {
+    expect(normalizeAgentMentionToken("Agent©Name")).toBe("Agent©Name");
+  });
+
+  it("leaves unknown semicolon-terminated named references unchanged", () => {
+    expect(normalizeAgentMentionToken("Baba&notarealentity;")).toBe("Baba&notarealentity;");
+  });
+
+  it("returns plain names unchanged", () => {
+    expect(normalizeAgentMentionToken("Baba")).toBe("Baba");
+  });
+
+  it("trims after decoding entities", () => {
+    expect(normalizeAgentMentionToken("Baba  ")).toBe("Baba");
+  });
+});
diff --git a/server/src/services/issues.ts b/server/src/services/issues.ts
index 5ae7c0c3..a728cfe0 100644
--- a/server/src/services/issues.ts
+++ b/server/src/services/issues.ts
@@ -233,6 +233,41 @@ function unreadForUserCondition(companyId: string, userId: string) {
   `;
 }
 
+/** Named entities commonly emitted in saved issue bodies; unknown `&name;` sequences are left unchanged. */
+const WELL_KNOWN_NAMED_HTML_ENTITIES: Readonly<Record<string, string>> = {
+  amp: "&",
+  apos: "'",
+  copy: "\u00A9",
+  gt: ">",
+  lt: "<",
+  nbsp: "\u00A0",
+  quot: '"',
+  ensp: "\u2002",
+  emsp: "\u2003",
+  thinsp: "\u2009",
+};
+
+function decodeNumericHtmlEntity(digits: string, radix: 16 | 10): string | null {
+  const n = Number.parseInt(digits, radix);
+  if (Number.isNaN(n) || n < 0 || n > 0x10ffff) return null;
+  try {
+    return String.fromCodePoint(n);
+  } catch {
+    return null;
+  }
+}
+
+/** Decodes HTML character references in a raw @mention capture so UI-encoded bodies match agent names. */
+export function normalizeAgentMentionToken(raw: string): string {
+  let s = raw.replace(/&#x([0-9a-fA-F]+);/gi, (full, hex: string) => decodeNumericHtmlEntity(hex, 16) ?? full);
+  s = s.replace(/&#([0-9]+);/g, (full, dec: string) => decodeNumericHtmlEntity(dec, 10) ?? full);
+  s = s.replace(/&([a-z][a-z0-9]*);/gi, (full, name: string) => {
+    const decoded = WELL_KNOWN_NAMED_HTML_ENTITIES[name.toLowerCase()];
+    return decoded !== undefined ? decoded : full;
+  });
+  return s.trim();
+}
+
 export function deriveIssueUserContext(
   issue: IssueUserContextInput,
   userId: string,
@@ -1517,11 +1552,13 @@ export function issueService(db: Db) {
       const re = /\B@([^\s@,!?.]+)/g;
       const tokens = new Set<string>();
       let m: RegExpExecArray | null;
-      while ((m = re.exec(body)) !== null) tokens.add(m[1].toLowerCase());
+      while ((m = re.exec(body)) !== null) {
+        const normalized = normalizeAgentMentionToken(m[1]);
+        if (normalized) tokens.add(normalized.toLowerCase());
+      }
 
       const explicitAgentMentionIds = extractAgentMentionIds(body);
       if (tokens.size === 0 && explicitAgentMentionIds.length === 0) return [];
-
       const rows = await db.select({ id: agents.id, name: agents.name })
         .from(agents).where(eq(agents.companyId, companyId));
       const resolved = new Set<string>(explicitAgentMentionIds);