diff --git a/docs/servers/auth/oauth-proxy.mdx b/docs/servers/auth/oauth-proxy.mdx
index 0c2ae6658..2979bffab 100644
--- a/docs/servers/auth/oauth-proxy.mdx
+++ b/docs/servers/auth/oauth-proxy.mdx
@@ -720,7 +720,7 @@ For each ID-JAG presented at the token endpoint, the proxy checks that:
 - the JOSE header `typ` is `oauth-id-jag+jwt`;
 - the `iss` claim is one of the configured `trusted_issuers`;
 - the signature verifies against the issuer's published keys;
-- the `aud` claim identifies this authorization server;
+- the `aud` claim identifies this authorization server — configure your identity provider to mint assertions whose `aud` is the `issuer` value published at `/.well-known/oauth-authorization-server`, which is your `issuer_url` when you set one and your `base_url` otherwise;
 - the signed `client_id` claim matches the client presenting the assertion — an assertion the IdP minted for one client cannot be redeemed by another;
 - the signed `resource` claim names this server — an assertion minted for a different MCP server behind the same IdP is rejected;
 - `exp` (and `iat`/`nbf`, when present) place the assertion within a short lifetime and its validity window; and
diff --git a/fastmcp_slim/fastmcp/server/auth/identity_assertion.py b/fastmcp_slim/fastmcp/server/auth/identity_assertion.py
index b86eceb34..07c3b0e58 100644
--- a/fastmcp_slim/fastmcp/server/auth/identity_assertion.py
+++ b/fastmcp_slim/fastmcp/server/auth/identity_assertion.py
@@ -99,10 +99,12 @@ class IdentityAssertion(BaseModel):
     audience: str | None = Field(
         default=None,
         description=(
-            "Expected `aud` value on the ID-JAG. When omitted, the audience is the "
-            "authorization server's own issuer URL (its base URL), which is where the "
-            "ID-JAG's `aud` must point per SEP-990. Override only when the IdP mints "
-            "assertions bound to a different audience identifier."
+            "Expected `aud` value on the ID-JAG. When omitted, the audience is this "
+            "server's issuer identifier — the `issuer` published in its authorization "
+            "server metadata, which is `issuer_url` when set and `base_url` otherwise "
+            "— and that is where the ID-JAG's `aud` must point per SEP-990. Override "
+            "only when the IdP mints assertions bound to a different audience "
+            "identifier."
         ),
     )
     required_scopes: list[str] | None = Field(
diff --git a/fastmcp_slim/fastmcp/server/auth/oauth_proxy/proxy.py b/fastmcp_slim/fastmcp/server/auth/oauth_proxy/proxy.py
index 98c4c17b1..539cce937 100644
--- a/fastmcp_slim/fastmcp/server/auth/oauth_proxy/proxy.py
+++ b/fastmcp_slim/fastmcp/server/auth/oauth_proxy/proxy.py
@@ -688,18 +688,17 @@ class OAuthProxy(OAuthProvider, ConsentMixin):
                 allowed_redirect_uri_patterns=self._allowed_client_redirect_uris,
             )
 
-        # Identity assertion (SEP-990 ID-JAG): the audience the ID-JAG must be
-        # bound to is this authorization server's own issuer URL (base_url).
-        # Deliberately left on base_url while the metadata issuer moves to
-        # issuer_url: changing it would reject assertions an IdP is already
-        # minting, and recovering needs IdP-side reconfiguration rather than a
-        # re-authorization. Tracked separately.
+        # Identity assertion (SEP-990 ID-JAG): per RFC 7523 §3 the `aud` must
+        # identify this authorization server, and an authorization server is
+        # identified by its issuer — the same value published as `issuer` in
+        # the authorization server metadata, which is `issuer_url` (defaulting
+        # to `base_url`).
         self._identity_assertion: IdentityAssertion | None = identity_assertion
         self._identity_assertion_validator: IdentityAssertionValidator | None = None
         if identity_assertion is not None:
             self._identity_assertion_validator = IdentityAssertionValidator(
                 config=identity_assertion,
-                audience=str(self.base_url),
+                audience=str(self.issuer_url),
             )
         # ID-JAG access tokens are self-contained (no upstream token or JTI
         # mapping to delete), so revocation tracks their jtis here until the
diff --git a/tests/server/auth/test_issuer_url_identity.py b/tests/server/auth/test_issuer_url_identity.py
index 22c6b6d93..8a27374f8 100644
--- a/tests/server/auth/test_issuer_url_identity.py
+++ b/tests/server/auth/test_issuer_url_identity.py
@@ -200,16 +200,16 @@ class TestOAuthProxyIssuerIdentity:
 
     @pytest.mark.parametrize(
         "issuer_url, expected",
-        [(ISSUER_URL, BASE_URL_ISSUER), (None, BASE_URL_ISSUER)],
+        [(ISSUER_URL, ISSUER), (None, BASE_URL_ISSUER)],
     )
-    def test_identity_assertion_audience_stays_on_base_url(
+    def test_identity_assertion_audience_is_issuer_identifier(
         self, issuer_url: str | None, expected: str
     ):
-        """The ID-JAG audience is intentionally not moved to issuer_url.
+        """SEP-990: an ID-JAG is bound to the server's advertised issuer.
 
-        Changing it would reject assertions an IdP is already minting, and the
-        operator could only recover by reconfiguring the IdP. Tracked as
-        separate work from the issuer identity fix.
+        RFC 7523 §3 requires the `aud` to identify the authorization server,
+        and an authorization server is identified by its issuer — the value
+        published as `issuer` in the authorization server metadata.
         """
         proxy = OAuthProxy(
             upstream_authorization_endpoint="https://upstream.example.com/authorize",