diff --git a/src/claude_agent_sdk/__init__.py b/src/claude_agent_sdk/__init__.py
index cde28be..8e710d5 100644
--- a/src/claude_agent_sdk/__init__.py
+++ b/src/claude_agent_sdk/__init__.py
@@ -39,6 +39,9 @@ from .types import (
     PreCompactHookInput,
     PreToolUseHookInput,
     ResultMessage,
+    SandboxIgnoreViolations,
+    SandboxNetworkConfig,
+    SandboxSettings,
     SdkPluginConfig,
     SettingSource,
     StopHookInput,
@@ -342,6 +345,10 @@ __all__ = [
     "SettingSource",
     # Plugin support
     "SdkPluginConfig",
+    # Sandbox support
+    "SandboxSettings",
+    "SandboxNetworkConfig",
+    "SandboxIgnoreViolations",
     # MCP Server Support
     "create_sdk_mcp_server",
     "tool",
diff --git a/src/claude_agent_sdk/_internal/transport/subprocess_cli.py b/src/claude_agent_sdk/_internal/transport/subprocess_cli.py
index 48e21de..73c1b29 100644
--- a/src/claude_agent_sdk/_internal/transport/subprocess_cli.py
+++ b/src/claude_agent_sdk/_internal/transport/subprocess_cli.py
@@ -114,6 +114,60 @@ class SubprocessCLITransport(Transport):
 
         return None
 
+    def _build_settings_value(self) -> str | None:
+        """Build settings value, merging sandbox settings if provided.
+
+        Returns the settings value as either:
+        - A JSON string (if sandbox is provided or settings is JSON)
+        - A file path (if only settings path is provided without sandbox)
+        - None if neither settings nor sandbox is provided
+        """
+        has_settings = self._options.settings is not None
+        has_sandbox = self._options.sandbox is not None
+
+        if not has_settings and not has_sandbox:
+            return None
+
+        # If only settings path and no sandbox, pass through as-is
+        if has_settings and not has_sandbox:
+            return self._options.settings
+
+        # If we have sandbox settings, we need to merge into a JSON object
+        settings_obj: dict[str, Any] = {}
+
+        if has_settings:
+            assert self._options.settings is not None
+            settings_str = self._options.settings.strip()
+            # Check if settings is a JSON string or a file path
+            if settings_str.startswith("{") and settings_str.endswith("}"):
+                # Parse JSON string
+                try:
+                    settings_obj = json.loads(settings_str)
+                except json.JSONDecodeError:
+                    # If parsing fails, treat as file path
+                    logger.warning(
+                        f"Failed to parse settings as JSON, treating as file path: {settings_str}"
+                    )
+                    # Read the file
+                    settings_path = Path(settings_str)
+                    if settings_path.exists():
+                        with settings_path.open(encoding="utf-8") as f:
+                            settings_obj = json.load(f)
+            else:
+                # It's a file path - read and parse
+                settings_path = Path(settings_str)
+                if settings_path.exists():
+                    with settings_path.open(encoding="utf-8") as f:
+                        settings_obj = json.load(f)
+                else:
+                    logger.warning(f"Settings file not found: {settings_path}")
+
+        # Merge sandbox settings
+        if has_sandbox:
+            settings_obj["sandbox"] = self._options.sandbox
+
+        return json.dumps(settings_obj)
+
     def _build_command(self) -> list[str]:
         """Build CLI command with arguments."""
         cmd = [self._cli_path, "--output-format", "stream-json", "--verbose"]
@@ -163,8 +217,10 @@ class SubprocessCLITransport(Transport):
         if self._options.resume:
             cmd.extend(["--resume", self._options.resume])
 
-        if self._options.settings:
-            cmd.extend(["--settings", self._options.settings])
+        # Handle settings and sandbox: merge sandbox into settings if both are provided
+        settings_value = self._build_settings_value()
+        if settings_value:
+            cmd.extend(["--settings", settings_value])
 
         if self._options.add_dirs:
             # Convert all paths to strings and add each directory
diff --git a/src/claude_agent_sdk/types.py b/src/claude_agent_sdk/types.py
index 4e1abba..f37fd3c 100644
--- a/src/claude_agent_sdk/types.py
+++ b/src/claude_agent_sdk/types.py
@@ -419,6 +419,83 @@ class SdkPluginConfig(TypedDict):
     path: str
 
 
+# Sandbox configuration types
+class SandboxNetworkConfig(TypedDict, total=False):
+    """Network configuration for sandbox.
+
+    Attributes:
+        allowUnixSockets: Unix socket paths accessible in sandbox (e.g., SSH agents).
+        allowAllUnixSockets: Allow all Unix sockets (less secure).
+        allowLocalBinding: Allow binding to localhost ports (macOS only).
+        httpProxyPort: HTTP proxy port if bringing your own proxy.
+        socksProxyPort: SOCKS5 proxy port if bringing your own proxy.
+    """
+
+    allowUnixSockets: list[str]
+    allowAllUnixSockets: bool
+    allowLocalBinding: bool
+    httpProxyPort: int
+    socksProxyPort: int
+
+
+class SandboxIgnoreViolations(TypedDict, total=False):
+    """Violations to ignore in sandbox.
+
+    Attributes:
+        file: File paths for which violations should be ignored.
+        network: Network hosts for which violations should be ignored.
+    """
+
+    file: list[str]
+    network: list[str]
+
+
+class SandboxSettings(TypedDict, total=False):
+    """Sandbox settings configuration.
+
+    This controls how Claude Code sandboxes bash commands for filesystem
+    and network isolation.
+
+    **Important:** Filesystem and network restrictions are configured via permission
+    rules, not via these sandbox settings:
+    - Filesystem read restrictions: Use Read deny rules
+    - Filesystem write restrictions: Use Edit allow/deny rules
+    - Network restrictions: Use WebFetch allow/deny rules
+
+    Attributes:
+        enabled: Enable bash sandboxing (macOS/Linux only). Default: False
+        autoAllowBashIfSandboxed: Auto-approve bash commands when sandboxed. Default: True
+        excludedCommands: Commands that should run outside the sandbox (e.g., ["git", "docker"])
+        allowUnsandboxedCommands: Allow commands to bypass sandbox via dangerouslyDisableSandbox.
+            When False, all commands must run sandboxed (or be in excludedCommands). Default: True
+        network: Network configuration for sandbox.
+        ignoreViolations: Violations to ignore.
+        enableWeakerNestedSandbox: Enable weaker sandbox for unprivileged Docker environments
+            (Linux only). Reduces security. Default: False
+
+    Example:
+        ```python
+        sandbox_settings: SandboxSettings = {
+            "enabled": True,
+            "autoAllowBashIfSandboxed": True,
+            "excludedCommands": ["docker"],
+            "network": {
+                "allowUnixSockets": ["/var/run/docker.sock"],
+                "allowLocalBinding": True
+            }
+        }
+        ```
+    """
+
+    enabled: bool
+    autoAllowBashIfSandboxed: bool
+    excludedCommands: list[str]
+    allowUnsandboxedCommands: bool
+    network: SandboxNetworkConfig
+    ignoreViolations: SandboxIgnoreViolations
+    enableWeakerNestedSandbox: bool
+
+
 # Content block types
 @dataclass
 class TextBlock:
@@ -569,6 +646,10 @@ class ClaudeAgentOptions:
     agents: dict[str, AgentDefinition] | None = None
     # Setting sources to load (user, project, local)
     setting_sources: list[SettingSource] | None = None
+    # Sandbox configuration for bash command isolation.
+    # Filesystem and network restrictions are derived from permission rules (Read/Edit/WebFetch),
+    # not from these sandbox settings.
+    sandbox: SandboxSettings | None = None
     # Plugin configurations for custom plugins
     plugins: list[SdkPluginConfig] = field(default_factory=list)
     # Max tokens for thinking blocks
diff --git a/tests/test_transport.py b/tests/test_transport.py
index a5a80d0..b834671 100644
--- a/tests/test_transport.py
+++ b/tests/test_transport.py
@@ -500,3 +500,150 @@ class TestSubprocessCLITransport:
                 assert user_passed == "claude"
 
         anyio.run(_test)
+
+    def test_build_command_with_sandbox_only(self):
+        """Test building CLI command with sandbox settings (no existing settings)."""
+        import json
+
+        from claude_agent_sdk import SandboxSettings
+
+        sandbox: SandboxSettings = {
+            "enabled": True,
+            "autoAllowBashIfSandboxed": True,
+            "network": {
+                "allowLocalBinding": True,
+                "allowUnixSockets": ["/var/run/docker.sock"],
+            },
+        }
+
+        transport = SubprocessCLITransport(
+            prompt="test",
+            options=make_options(sandbox=sandbox),
+        )
+
+        cmd = transport._build_command()
+
+        # Should have --settings with sandbox merged in
+        assert "--settings" in cmd
+        settings_idx = cmd.index("--settings")
+        settings_value = cmd[settings_idx + 1]
+
+        # Parse and verify
+        parsed = json.loads(settings_value)
+        assert "sandbox" in parsed
+        assert parsed["sandbox"]["enabled"] is True
+        assert parsed["sandbox"]["autoAllowBashIfSandboxed"] is True
+        assert parsed["sandbox"]["network"]["allowLocalBinding"] is True
+        assert parsed["sandbox"]["network"]["allowUnixSockets"] == [
+            "/var/run/docker.sock"
+        ]
+
+    def test_build_command_with_sandbox_and_settings_json(self):
+        """Test building CLI command with sandbox merged into existing settings JSON."""
+        import json
+
+        from claude_agent_sdk import SandboxSettings
+
+        # Existing settings as JSON string
+        existing_settings = (
+            '{"permissions": {"allow": ["Bash(ls:*)"]}, "verbose": true}'
+        )
+
+        sandbox: SandboxSettings = {
+            "enabled": True,
+            "excludedCommands": ["git", "docker"],
+        }
+
+        transport = SubprocessCLITransport(
+            prompt="test",
+            options=make_options(settings=existing_settings, sandbox=sandbox),
+        )
+
+        cmd = transport._build_command()
+
+        # Should have merged settings
+        assert "--settings" in cmd
+        settings_idx = cmd.index("--settings")
+        settings_value = cmd[settings_idx + 1]
+
+        parsed = json.loads(settings_value)
+
+        # Original settings should be preserved
+        assert parsed["permissions"] == {"allow": ["Bash(ls:*)"]}
+        assert parsed["verbose"] is True
+
+        # Sandbox should be merged in
+        assert "sandbox" in parsed
+        assert parsed["sandbox"]["enabled"] is True
+        assert parsed["sandbox"]["excludedCommands"] == ["git", "docker"]
+
+    def test_build_command_with_settings_file_and_no_sandbox(self):
+        """Test that settings file path is passed through when no sandbox."""
+        transport = SubprocessCLITransport(
+            prompt="test",
+            options=make_options(settings="/path/to/settings.json"),
+        )
+
+        cmd = transport._build_command()
+
+        # Should pass path directly, not parse it
+        assert "--settings" in cmd
+        settings_idx = cmd.index("--settings")
+        assert cmd[settings_idx + 1] == "/path/to/settings.json"
+
+    def test_build_command_sandbox_minimal(self):
+        """Test sandbox with minimal configuration."""
+        import json
+
+        from claude_agent_sdk import SandboxSettings
+
+        sandbox: SandboxSettings = {"enabled": True}
+
+        transport = SubprocessCLITransport(
+            prompt="test",
+            options=make_options(sandbox=sandbox),
+        )
+
+        cmd = transport._build_command()
+
+        assert "--settings" in cmd
+        settings_idx = cmd.index("--settings")
+        settings_value = cmd[settings_idx + 1]
+
+        parsed = json.loads(settings_value)
+        assert parsed == {"sandbox": {"enabled": True}}
+
+    def test_sandbox_network_config(self):
+        """Test sandbox with full network configuration."""
+        import json
+
+        from claude_agent_sdk import SandboxSettings
+
+        sandbox: SandboxSettings = {
+            "enabled": True,
+            "network": {
+                "allowUnixSockets": ["/tmp/ssh-agent.sock"],
+                "allowAllUnixSockets": False,
+                "allowLocalBinding": True,
+                "httpProxyPort": 8080,
+                "socksProxyPort": 8081,
+            },
+        }
+
+        transport = SubprocessCLITransport(
+            prompt="test",
+            options=make_options(sandbox=sandbox),
+        )
+
+        cmd = transport._build_command()
+        settings_idx = cmd.index("--settings")
+        settings_value = cmd[settings_idx + 1]
+
+        parsed = json.loads(settings_value)
+        network = parsed["sandbox"]["network"]
+
+        assert network["allowUnixSockets"] == ["/tmp/ssh-agent.sock"]
+        assert network["allowAllUnixSockets"] is False
+        assert network["allowLocalBinding"] is True
+        assert network["httpProxyPort"] == 8080
+        assert network["socksProxyPort"] == 8081