diff --git a/src/openai/lib/_parsing/_completions.py b/src/openai/lib/_parsing/_completions.py
index 7a1bded1de..756aea6d7f 100644
--- a/src/openai/lib/_parsing/_completions.py
+++ b/src/openai/lib/_parsing/_completions.py
@@ -109,15 +109,25 @@ def parse_chat_completion(
             for tool_call in message.tool_calls:
                 if tool_call.type == "function":
                     tool_call_dict = tool_call.to_dict()
+                    try:
+                        parsed_arguments = parse_function_tool_arguments(
+                            input_tools=input_tools, function=tool_call.function
+                        )
+                    except (pydantic.ValidationError, json.JSONDecodeError) as exc:
+                        # The model returned a function-call whose arguments are not
+                        # valid JSON for the declared tool schema (e.g. truncated by a
+                        # stream cut-off). Surface the call with parsed_arguments=None
+                        # instead of letting the exception escape the best-effort parse
+                        # boundary. See issue #1763.
+                        log.debug("Failed to parse tool call arguments: %s", exc)
+                        parsed_arguments = None
                     tool_calls.append(
                         construct_type_unchecked(
                             value={
                                 **tool_call_dict,
                                 "function": {
                                     **cast(Any, tool_call_dict["function"]),
-                                    "parsed_arguments": parse_function_tool_arguments(
-                                        input_tools=input_tools, function=tool_call.function
-                                    ),
+                                    "parsed_arguments": parsed_arguments,
                                 },
                             },
                             type_=ParsedFunctionToolCall,
@@ -143,7 +153,7 @@ def parse_chat_completion(
                     **choice.to_dict(),
                     "message": {
                         **message.to_dict(),
-                        "parsed": maybe_parse_content(
+                        "parsed": _safe_maybe_parse_content(
                             response_format=response_format,
                             message=message,
                         ),
@@ -198,6 +208,21 @@ def maybe_parse_content(
     return None
 
 
+def _safe_maybe_parse_content(
+    *,
+    response_format: type[ResponseFormatT] | ResponseFormatParam | Omit,
+    message: ChatCompletionMessage | ParsedChatCompletionMessage[object],
+) -> ResponseFormatT | None:
+    """Same contract as ``maybe_parse_content`` but catches JSON-decode and
+    pydantic validation errors so the best-effort parsing boundary in
+    ``parse_chat_completion`` never lets them escape. See issue #1763."""
+    try:
+        return maybe_parse_content(response_format=response_format, message=message)
+    except (pydantic.ValidationError, json.JSONDecodeError) as exc:
+        log.debug("Failed to parse structured-output content: %s", exc)
+        return None
+
+
 def has_parseable_input(
     *,
     response_format: type | ResponseFormatParam | Omit,
diff --git a/tests/lib/chat/test_completions.py b/tests/lib/chat/test_completions.py
index 0d783b2ce9..c7592b50cc 100644
--- a/tests/lib/chat/test_completions.py
+++ b/tests/lib/chat/test_completions.py
@@ -1021,3 +1021,80 @@ def test_parse_method_in_sync(sync: bool, client: OpenAI, async_client: AsyncOpe
         checking_client.chat.completions.parse,
         exclude_params={"response_format", "stream"},
     )
+
+
+class _TruncatedJSONModel(BaseModel):
+    city: str
+    temperature: float
+    units: Literal["c", "f"]
+
+
+def _build_truncated_chat_completion(content: str) -> openai.types.chat.ChatCompletion:
+    """Construct a minimal ChatCompletion whose message content is intentionally
+    truncated / malformed JSON. Used by the regression tests for #1763."""
+    return openai.types.chat.ChatCompletion.model_validate(
+        {
+            "id": "chatcmpl-truncated-fixture",
+            "object": "chat.completion",
+            "created": 1727346142,
+            "model": "gpt-4o-2024-08-06",
+            "choices": [
+                {
+                    "index": 0,
+                    "message": {
+                        "role": "assistant",
+                        "content": content,
+                        "refusal": None,
+                    },
+                    "logprobs": None,
+                    "finish_reason": "stop",
+                }
+            ],
+            "usage": {
+                "prompt_tokens": 79,
+                "completion_tokens": 14,
+                "total_tokens": 93,
+            },
+        }
+    )
+
+
+def test_parse_chat_completion_does_not_raise_on_truncated_json_content() -> None:
+    """#1763: chat.completions.parse must not propagate pydantic.ValidationError
+    or json.JSONDecodeError when the model returns truncated JSON in the content
+    field. The parse helper should treat such a response as unparseable and
+    surface ``message.parsed = None`` instead of letting the exception escape."""
+
+    from openai.lib._parsing._completions import parse_chat_completion
+
+    # The trailing brace is deliberately missing — a pydantic model_parse_json call
+    # on this string raises ValidationError today.
+    truncated = '{"city":"San Francisco","temperature":65,"units":'
+
+    raw = _build_truncated_chat_completion(truncated)
+
+    parsed = parse_chat_completion(
+        response_format=_TruncatedJSONModel,
+        input_tools=openai._types.omit,
+        chat_completion=raw,
+    )
+
+    assert parsed.choices[0].message.parsed is None
+    assert parsed.choices[0].message.content == truncated
+
+
+def test_parse_chat_completion_does_not_raise_on_garbage_json_content() -> None:
+    """#1763 follow-up: garbage / non-JSON content must not crash parse either."""
+
+    from openai.lib._parsing._completions import parse_chat_completion
+
+    raw = _build_truncated_chat_completion("not even close to json")
+
+    parsed = parse_chat_completion(
+        response_format=_TruncatedJSONModel,
+        input_tools=openai._types.omit,
+        chat_completion=raw,
+    )
+
+    assert parsed.choices[0].message.parsed is None
+    assert parsed.choices[0].message.content == "not even close to json"