diff --git a/changelog/3666.changed.md b/changelog/3666.changed.md
new file mode 100644
index 000000000..0fbdbc59c
--- /dev/null
+++ b/changelog/3666.changed.md
@@ -0,0 +1 @@
+- Changed the `DeepgramSTTService` default setting for `smart_format` to `False`, as agents don't need smart formatting. Disabling this setting provides a small performance improvement, as well.
\ No newline at end of file
diff --git a/src/pipecat/services/deepgram/stt.py b/src/pipecat/services/deepgram/stt.py
index 20dfba724..0c326deb3 100644
--- a/src/pipecat/services/deepgram/stt.py
+++ b/src/pipecat/services/deepgram/stt.py
@@ -106,7 +106,7 @@ class DeepgramSTTService(STTService):
             model="nova-3-general",
             channels=1,
             interim_results=True,
-            smart_format=True,
+            smart_format=False,
             punctuate=True,
             profanity_filter=True,
             vad_events=False,