diff --git a/packages/http-client-csharp/generator/Microsoft.TypeSpec.Generator.ClientModel/src/Providers/ClientOptionsProvider.cs b/packages/http-client-csharp/generator/Microsoft.TypeSpec.Generator.ClientModel/src/Providers/ClientOptionsProvider.cs
index e0a0bf9edf8..d8f29f20071 100644
--- a/packages/http-client-csharp/generator/Microsoft.TypeSpec.Generator.ClientModel/src/Providers/ClientOptionsProvider.cs
+++ b/packages/http-client-csharp/generator/Microsoft.TypeSpec.Generator.ClientModel/src/Providers/ClientOptionsProvider.cs
@@ -85,10 +85,13 @@ public static ClientOptionsProvider CreateClientOptionsProvider(InputClient inpu
         }
 
         /// <summary>
-        /// Determines if a client has only standard parameters (ApiVersion and Endpoint).
+        /// Determines if a client can share the singleton options instance.
+        /// Multi-service clients always need their own options type for service-specific API version properties.
+        /// Only optional parameters with default values that become properties on the options class
+        /// should trigger a separate client-specific options type.
         /// </summary>
         /// <param name="inputClient">The input client to check.</param>
-        /// <returns>True if the client has only standard parameters, false otherwise.</returns>
+        /// <returns>True if the client can share the singleton options instance, false otherwise.</returns>
         private static bool UseSingletonInstance(InputClient inputClient)
         {
             var rootClients = ScmCodeModelGenerator.Instance.InputLibrary.InputNamespace.RootClients;
@@ -98,6 +101,12 @@ private static bool UseSingletonInstance(InputClient inputClient)
                 return false;
             }
 
+            // Multi-service clients need their own options type for service-specific API version properties
+            if (inputClient.IsMultiServiceClient)
+            {
+                return false;
+            }
+
             foreach (var parameter in inputClient.Parameters)
             {
                 // Check if parameter is NOT an ApiVersion or Endpoint parameter
@@ -111,11 +120,15 @@ private static bool UseSingletonInstance(InputClient inputClient)
                             return false; // Found a non-standard endpoint parameter
                         }
                     }
-                    else
+                    else if (parameter.DefaultValue != null)
                     {
-                        // Found a non-ApiVersion, non-Endpoint parameter
+                        // Found a non-ApiVersion, non-Endpoint optional parameter that will become
+                        // a property on the options class — requires a separate client-specific options type.
                         return false;
                     }
+                    // Required parameters (DefaultValue == null) are inlined as constructor parameters
+                    // on the client and do not become properties on the options class,
+                    // so they should not trigger a separate client-specific options type.
                 }
             }
             return true;
diff --git a/packages/http-client-csharp/generator/Microsoft.TypeSpec.Generator.ClientModel/test/Providers/ClientOptionsProviderTests.cs b/packages/http-client-csharp/generator/Microsoft.TypeSpec.Generator.ClientModel/test/Providers/ClientOptionsProviderTests.cs
index 93664c6310b..7372b6e8f23 100644
--- a/packages/http-client-csharp/generator/Microsoft.TypeSpec.Generator.ClientModel/test/Providers/ClientOptionsProviderTests.cs
+++ b/packages/http-client-csharp/generator/Microsoft.TypeSpec.Generator.ClientModel/test/Providers/ClientOptionsProviderTests.cs
@@ -466,6 +466,42 @@ public void MultipleClientsWithCustomParametersCreateSeparateOptions()
             Assert.AreEqual("SampleClientOptions", options2!.Name);
         }
 
+        [Test]
+        public void MultipleClientsWithRequiredCustomParametersShareSingletonOptions()
+        {
+            // Required parameters (no DefaultValue) should NOT trigger a separate client-specific options type.
+            // They are inlined as constructor parameters on the client, not as properties on ClientOptions.
+            var requiredParam = InputFactory.MethodParameter(
+                "knowledgeBaseName",
+                InputPrimitiveType.String,
+                isRequired: true,
+                scope: InputParameterScope.Client);
+
+            var client1 = InputFactory.Client("KnowledgeBaseRetrievalClient", clientNamespace: "TestNamespace", parameters: [requiredParam]);
+            var client2 = InputFactory.Client("SearchClient", clientNamespace: "TestNamespace");
+
+            MockHelpers.LoadMockGenerator(clients: () => [client1, client2]);
+
+            var clientProvider1 = ScmCodeModelGenerator.Instance.TypeFactory.CreateClient(client1);
+            var clientProvider2 = ScmCodeModelGenerator.Instance.TypeFactory.CreateClient(client2);
+
+            Assert.IsNotNull(clientProvider1);
+            Assert.IsNotNull(clientProvider2);
+
+            var options1 = clientProvider1!.ClientOptions;
+            var options2 = clientProvider2!.ClientOptions;
+
+            Assert.IsNotNull(options1);
+            Assert.IsNotNull(options2);
+
+            // Both clients should share the same singleton ClientOptions instance
+            // because the required parameter does not become a property on the options class
+            Assert.AreSame(options1, options2);
+
+            // The name should be based on the InputNamespace (singleton naming)
+            Assert.AreEqual("SampleClientOptions", options1!.Name);
+        }
+
         [Test]
         public void NamespaceLastSegmentIsUsedForSingletonName()
         {
diff --git a/packages/http-client-csharp/generator/Microsoft.TypeSpec.Generator.ClientModel/test/Providers/ClientProviders/ClientProviderTests.cs b/packages/http-client-csharp/generator/Microsoft.TypeSpec.Generator.ClientModel/test/Providers/ClientProviders/ClientProviderTests.cs
index c18cf79e9ff..4af2c5add7f 100644
--- a/packages/http-client-csharp/generator/Microsoft.TypeSpec.Generator.ClientModel/test/Providers/ClientProviders/ClientProviderTests.cs
+++ b/packages/http-client-csharp/generator/Microsoft.TypeSpec.Generator.ClientModel/test/Providers/ClientProviders/ClientProviderTests.cs
@@ -6,6 +6,7 @@
 using System.ClientModel.Primitives;
 using System.Collections.Generic;
 using System.Linq;
+using System.Reflection;
 using System.Runtime.CompilerServices;
 using System.Text.RegularExpressions;
 using System.Threading.Tasks;
@@ -69,6 +70,10 @@ public bool ValidateIsLastNamespaceSegmentTheSame(string left, string right)
         [SetUp]
         public void SetUp()
         {
+            // Reset the singleton instance before each test to prevent state leaking
+            var singletonField = typeof(ClientOptionsProvider).GetField("_singletonInstance", BindingFlags.Static | BindingFlags.NonPublic);
+            singletonField?.SetValue(null, null);
+
             var categories = TestContext.CurrentContext.Test?.Properties["Category"];
             _containsSubClients = categories?.Contains(SubClientsCategory) ?? false;
             _hasKeyAuth = categories?.Contains(KeyAuthCategory) ?? false;