diff --git a/optillm/__init__.py b/optillm/__init__.py
index 506a00d..76134bd 100644
--- a/optillm/__init__.py
+++ b/optillm/__init__.py
@@ -1,5 +1,5 @@
 # Version information
-__version__ = "0.3.12"
+__version__ = "0.3.13"
 
 # Import from server module
 from .server import (
diff --git a/pyproject.toml b/pyproject.toml
index 813e2ff..b697021 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -4,7 +4,7 @@ build-backend = "setuptools.build_meta"
 
 [project]
 name = "optillm"
-version = "0.3.12"
+version = "0.3.13"
 description = "An optimizing inference proxy for LLMs."
 readme = "README.md"
 license = "Apache-2.0"
diff --git a/tests/test_conversation_logging_server.py b/tests/test_conversation_logging_server.py
index 0fdf983..ef22803 100644
--- a/tests/test_conversation_logging_server.py
+++ b/tests/test_conversation_logging_server.py
@@ -94,6 +94,8 @@ def _start_server_with_logging(cls):
         env["OPTILLM_API_KEY"] = "optillm"
         env["OPTILLM_LOG_CONVERSATIONS"] = "true"
         env["OPTILLM_CONVERSATION_LOG_DIR"] = str(cls.temp_log_dir)
+        # Enable MPS fallback to CPU for unsupported operations (fixes macOS compatibility)
+        env["PYTORCH_ENABLE_MPS_FALLBACK"] = "1"
 
         # Get the project root directory (parent of tests directory)
         project_root = os.path.dirname(os.path.dirname(os.path.abspath(__file__)))
diff --git a/tests/test_utils.py b/tests/test_utils.py
index be99e19..30039a9 100644
--- a/tests/test_utils.py
+++ b/tests/test_utils.py
@@ -42,6 +42,8 @@ def start_test_server(model: str = TEST_MODEL, port: int = 8000) -> subprocess.P
     # Set environment for local inference
     env = os.environ.copy()
     env["OPTILLM_API_KEY"] = "optillm"
+    # Enable MPS fallback to CPU for unsupported operations (fixes macOS compatibility)
+    env["PYTORCH_ENABLE_MPS_FALLBACK"] = "1"
 
     # Get the project root directory (parent of tests directory)
     project_root = os.path.dirname(os.path.dirname(os.path.abspath(__file__)))