A method and system for agent exchange-based materials handling. According to one embodiment, a method of agent exchange-based order fulfillment may include a number of agents moving along respective paths through an inventory storage area of a materials handling facility. While moving through the inventory storage area, a portion of the number of agents may respectively select one or more of a number of items stored within the inventory storage area, where each one of the selected items is specified in a corresponding customer order or materials request. The method may also include conveying the selected items to one or more corresponding processing areas of the materials handling facility in order to fulfill the corresponding customer orders. Further, at least some of the selected items may be exchanged one or more times among the agents in the course of being conveyed to corresponding processing areas.