diff --git a/pr_agent/algo/utils.py b/pr_agent/algo/utils.py
index 3e8576753f..201d5e4a91 100644
--- a/pr_agent/algo/utils.py
+++ b/pr_agent/algo/utils.py
@@ -1256,7 +1256,10 @@ def validate_and_await_rate_limit(github_token):
 
 def github_action_output(output_data: dict, key_name: str):
     try:
-        if not get_settings().get('github_action_config.enable_output', False):
+        enable_output = get_settings().get('github_action_config.enable_output', False)
+        if isinstance(enable_output, str):
+            enable_output = enable_output.lower().strip() not in ("false", "0", "no", "")
+        if not enable_output:
             return
 
         key_data = output_data.get(key_name, {})
diff --git a/pr_agent/servers/github_action_runner.py b/pr_agent/servers/github_action_runner.py
index 687f4506c1..6331c2ef61 100644
--- a/pr_agent/servers/github_action_runner.py
+++ b/pr_agent/servers/github_action_runner.py
@@ -61,6 +61,8 @@ async def run_action():
     get_settings().set("GITHUB.USER_TOKEN", GITHUB_TOKEN)
     get_settings().set("GITHUB.DEPLOYMENT_TYPE", "user")
     enable_output = get_setting_or_env("GITHUB_ACTION_CONFIG.ENABLE_OUTPUT", True)
+    if isinstance(enable_output, str):
+        enable_output = enable_output.lower().strip() not in ("false", "0", "no", "")
     get_settings().set("GITHUB_ACTION_CONFIG.ENABLE_OUTPUT", enable_output)
 
     # Load the event payload
diff --git a/tests/unittest/test_github_action_output.py b/tests/unittest/test_github_action_output.py
index 57a62c6ea2..ddd0eac906 100644
--- a/tests/unittest/test_github_action_output.py
+++ b/tests/unittest/test_github_action_output.py
@@ -42,6 +42,35 @@ def test_github_action_output_notset(self, monkeypatch, tmp_path):
 
         assert not os.path.exists(str(tmp_path / 'output'))
 
+    def test_github_action_output_disabled_string_false(self, monkeypatch, tmp_path):
+        """String 'false' from env vars should be treated as falsy, not truthy."""
+        get_settings().set('GITHUB_ACTION_CONFIG.ENABLE_OUTPUT', "false")
+        monkeypatch.setenv('GITHUB_OUTPUT', str(tmp_path / 'output'))
+        output_data = {'key1': {'value1': 1, 'value2': 2}}
+        key_name = 'key1'
+
+        github_action_output(output_data, key_name)
+
+        assert not os.path.exists(str(tmp_path / 'output'))
+
+    def test_github_action_output_enabled_string_true(self, monkeypatch, tmp_path):
+        """String 'true' from env vars should be treated as truthy."""
+        get_settings().set('GITHUB_ACTION_CONFIG.ENABLE_OUTPUT', "true")
+        monkeypatch.setenv('GITHUB_OUTPUT', str(tmp_path / 'output'))
+        output_data = {'key1': {'value1': 1, 'value2': 2}}
+        key_name = 'key1'
+
+        github_action_output(output_data, key_name)
+
+        with open(str(tmp_path / 'output'), 'r') as f:
+            env_value = f.read()
+
+        actual_key = env_value.split('=')[0]
+        actual_data = json.loads(env_value.split('=')[1])
+
+        assert actual_key == key_name
+        assert actual_data == output_data[key_name]
+
     def test_github_action_output_error_case(self, monkeypatch, tmp_path):
         monkeypatch.setenv('GITHUB_OUTPUT', str(tmp_path / 'output'))
         output_data = None # invalid data