diff --git a/application/agents/base.py b/application/agents/base.py
index 15735c8c..596caa5a 100644
--- a/application/agents/base.py
+++ b/application/agents/base.py
@@ -1,7 +1,8 @@
+import json
 import logging
 import uuid
 from abc import ABC, abstractmethod
-from typing import Dict, Generator, List, Optional
+from typing import Any, Dict, Generator, List, Optional
 
 from application.agents.tool_executor import ToolExecutor
 from application.core.json_schema_utils import (
@@ -9,6 +10,7 @@ from application.core.json_schema_utils import (
     normalize_json_schema_payload,
 )
 from application.core.settings import settings
+from application.llm.handlers.base import ToolCall
 from application.llm.handlers.handler_creator import LLMHandlerCreator
 from application.llm.llm_creator import LLMCreator
 from application.logging import build_stack_data, log_activity, LogContext
@@ -113,6 +115,153 @@ class BaseAgent(ABC):
     ) -> Generator[Dict, None, None]:
         pass
 
+    def gen_continuation(
+        self,
+        messages: List[Dict],
+        tools_dict: Dict,
+        pending_tool_calls: List[Dict],
+        tool_actions: List[Dict],
+    ) -> Generator[Dict, None, None]:
+        """Resume generation after tool actions are resolved.
+
+        Processes the client-provided *tool_actions* (approvals, denials,
+        or client-side results), appends the resulting messages, then
+        hands back to the LLM to continue the conversation.
+
+        Args:
+            messages: The saved messages array from the pause point.
+            tools_dict: The saved tools dictionary.
+            pending_tool_calls: The pending tool call descriptors from the pause.
+            tool_actions: Client-provided actions resolving the pending calls.
+        """
+        self._prepare_tools(tools_dict)
+
+        actions_by_id = {a["call_id"]: a for a in tool_actions}
+
+        # Build a single assistant message containing all tool calls so
+        # the message history matches the format LLM providers expect
+        # (one assistant message with N tool_calls, followed by N tool results).
+        tc_objects: List[Dict[str, Any]] = []
+        for pending in pending_tool_calls:
+            call_id = pending["call_id"]
+            args = pending["arguments"]
+            args_str = (
+                json.dumps(args) if isinstance(args, dict) else (args or "{}")
+            )
+            tc_obj: Dict[str, Any] = {
+                "id": call_id,
+                "type": "function",
+                "function": {
+                    "name": pending["name"],
+                    "arguments": args_str,
+                },
+            }
+            if pending.get("thought_signature"):
+                tc_obj["thought_signature"] = pending["thought_signature"]
+            tc_objects.append(tc_obj)
+
+        messages.append({
+            "role": "assistant",
+            "content": None,
+            "tool_calls": tc_objects,
+        })
+
+        # Now process each pending call and append tool result messages
+        for pending in pending_tool_calls:
+            call_id = pending["call_id"]
+            args = pending["arguments"]
+            action = actions_by_id.get(call_id)
+            if not action:
+                action = {
+                    "call_id": call_id,
+                    "decision": "denied",
+                    "comment": "No response provided",
+                }
+
+            if action.get("decision") == "approved":
+                # Execute the tool server-side
+                tc = ToolCall(
+                    id=call_id,
+                    name=pending["name"],
+                    arguments=(
+                        json.dumps(args) if isinstance(args, dict) else args
+                    ),
+                )
+                tool_gen = self._execute_tool_action(tools_dict, tc)
+                tool_response = None
+                while True:
+                    try:
+                        event = next(tool_gen)
+                        yield event
+                    except StopIteration as e:
+                        tool_response, _ = e.value
+                        break
+                messages.append(
+                    self.llm_handler.create_tool_message(tc, tool_response)
+                )
+
+            elif action.get("decision") == "denied":
+                comment = action.get("comment", "")
+                denial = (
+                    f"Tool execution denied by user. Reason: {comment}"
+                    if comment
+                    else "Tool execution denied by user."
+                )
+                tc = ToolCall(
+                    id=call_id, name=pending["name"], arguments=args
+                )
+                messages.append(
+                    self.llm_handler.create_tool_message(tc, denial)
+                )
+                yield {
+                    "type": "tool_call",
+                    "data": {
+                        "tool_name": pending.get("tool_name", "unknown"),
+                        "call_id": call_id,
+                        "action_name": pending.get("llm_name", pending["name"]),
+                        "arguments": args,
+                        "status": "denied",
+                    },
+                }
+
+            elif "result" in action:
+                result = action["result"]
+                result_str = (
+                    json.dumps(result)
+                    if not isinstance(result, str)
+                    else result
+                )
+                tc = ToolCall(
+                    id=call_id, name=pending["name"], arguments=args
+                )
+                messages.append(
+                    self.llm_handler.create_tool_message(tc, result_str)
+                )
+                yield {
+                    "type": "tool_call",
+                    "data": {
+                        "tool_name": pending.get("tool_name", "unknown"),
+                        "call_id": call_id,
+                        "action_name": pending.get("llm_name", pending["name"]),
+                        "arguments": args,
+                        "result": (
+                            result_str[:50] + "..."
+                            if len(result_str) > 50
+                            else result_str
+                        ),
+                        "status": "completed",
+                    },
+                }
+
+        # Resume the LLM loop with the updated messages
+        llm_response = self._llm_gen(messages)
+        yield from self._handle_response(
+            llm_response, tools_dict, messages, None
+        )
+
+        yield {"sources": self.retrieved_docs}
+        yield {"tool_calls": self._get_truncated_tool_calls()}
+
     # ---- Tool delegation (thin wrappers around ToolExecutor) ----
 
     @property
@@ -267,28 +416,35 @@ class BaseAgent(ABC):
             if "tool_calls" in i:
                 for tool_call in i["tool_calls"]:
                     call_id = tool_call.get("call_id") or str(uuid.uuid4())
-
-                    function_call_dict = {
-                        "function_call": {
-                            "name": tool_call.get("action_name"),
-                            "args": tool_call.get("arguments"),
-                            "call_id": call_id,
-                        }
-                    }
-                    function_response_dict = {
-                        "function_response": {
-                            "name": tool_call.get("action_name"),
-                            "response": {"result": tool_call.get("result")},
-                            "call_id": call_id,
-                        }
-                    }
-
-                    messages.append(
-                        {"role": "assistant", "content": [function_call_dict]}
+                    args = tool_call.get("arguments")
+                    args_str = (
+                        json.dumps(args)
+                        if isinstance(args, dict)
+                        else (args or "{}")
                     )
-                    messages.append(
-                        {"role": "tool", "content": [function_response_dict]}
+                    messages.append({
+                        "role": "assistant",
+                        "content": None,
+                        "tool_calls": [{
+                            "id": call_id,
+                            "type": "function",
+                            "function": {
+                                "name": tool_call.get("action_name", ""),
+                                "arguments": args_str,
+                            },
+                        }],
+                    })
+                    result = tool_call.get("result")
+                    result_str = (
+                        json.dumps(result)
+                        if not isinstance(result, str)
+                        else (result or "")
                     )
+                    messages.append({
+                        "role": "tool",
+                        "tool_call_id": call_id,
+                        "content": result_str,
+                    })
         messages.append({"role": "user", "content": query})
         return messages
 
diff --git a/application/agents/research_agent.py b/application/agents/research_agent.py
index 280fa2cd..9c7212b1 100644
--- a/application/agents/research_agent.py
+++ b/application/agents/research_agent.py
@@ -593,16 +593,22 @@ class ResearchAgent(BaseAgent):
                     )
                     result = result_str
 
-            function_call_content = {
-                "function_call": {
-                    "name": call.name,
-                    "args": call.arguments,
-                    "call_id": call_id,
-                }
-            }
-            messages.append(
-                {"role": "assistant", "content": [function_call_content]}
+            import json as _json
+
+            args_str = (
+                _json.dumps(call.arguments)
+                if isinstance(call.arguments, dict)
+                else call.arguments
             )
+            messages.append({
+                "role": "assistant",
+                "content": None,
+                "tool_calls": [{
+                    "id": call_id,
+                    "type": "function",
+                    "function": {"name": call.name, "arguments": args_str},
+                }],
+            })
             tool_message = self.llm_handler.create_tool_message(call, result)
             messages.append(tool_message)
 
diff --git a/application/agents/tool_executor.py b/application/agents/tool_executor.py
index 69739076..11095b10 100644
--- a/application/agents/tool_executor.py
+++ b/application/agents/tool_executor.py
@@ -1,6 +1,7 @@
 import logging
 import uuid
-from typing import Dict, List, Optional
+from collections import Counter
+from typing import Dict, List, Optional, Tuple
 
 from bson.objectid import ObjectId
 
@@ -31,12 +32,23 @@ class ToolExecutor:
         self.tool_calls: List[Dict] = []
         self._loaded_tools: Dict[str, object] = {}
         self.conversation_id: Optional[str] = None
+        self.client_tools: Optional[List[Dict]] = None
+        self._name_to_tool: Dict[str, Tuple[str, str]] = {}
+        self._tool_to_name: Dict[Tuple[str, str], str] = {}
 
     def get_tools(self) -> Dict[str, Dict]:
-        """Load tool configs from DB based on user context."""
+        """Load tool configs from DB based on user context.
+
+        If *client_tools* have been set on this executor, they are
+        automatically merged into the returned dict.
+        """
         if self.user_api_key:
-            return self._get_tools_by_api_key(self.user_api_key)
-        return self._get_user_tools(self.user or "local")
+            tools = self._get_tools_by_api_key(self.user_api_key)
+        else:
+            tools = self._get_user_tools(self.user or "local")
+        if self.client_tools:
+            self.merge_client_tools(tools, self.client_tools)
+        return tools
 
     def _get_tools_by_api_key(self, api_key: str) -> Dict[str, Dict]:
         mongo = MongoDB.get_client()
@@ -65,29 +77,123 @@ class ToolExecutor:
         user_tools = list(user_tools)
         return {str(i): tool for i, tool in enumerate(user_tools)}
 
-    def prepare_tools_for_llm(self, tools_dict: Dict) -> List[Dict]:
-        """Convert tool configs to LLM function schemas."""
-        return [
-            {
-                "type": "function",
-                "function": {
-                    "name": f"{action['name']}_{tool_id}",
-                    "description": action["description"],
-                    "parameters": self._build_tool_parameters(action),
-                },
+    def merge_client_tools(
+        self, tools_dict: Dict, client_tools: List[Dict]
+    ) -> Dict:
+        """Merge client-provided tool definitions into tools_dict.
+
+        Client tools use the standard function-calling format::
+
+            [{"type": "function", "function": {"name": "get_weather",
+              "description": "...", "parameters": {...}}}]
+
+        They are stored in *tools_dict* with ``client_side: True`` so that
+        :meth:`check_pause` returns a pause signal instead of trying to
+        execute them server-side.
+
+        Args:
+            tools_dict: The mutable server tools dict (will be modified in place).
+            client_tools: List of tool definitions in function-calling format.
+
+        Returns:
+            The updated *tools_dict* (same reference, for convenience).
+        """
+        for i, ct in enumerate(client_tools):
+            func = ct.get("function", ct)  # tolerate bare {"name":..} too
+            name = func.get("name", f"clienttool{i}")
+            tool_id = f"ct{i}"
+
+            tools_dict[tool_id] = {
+                "name": name,
+                "client_side": True,
+                "actions": [
+                    {
+                        "name": name,
+                        "description": func.get("description", ""),
+                        "active": True,
+                        "parameters": func.get("parameters", {}),
+                    }
+                ],
             }
-            for tool_id, tool in tools_dict.items()
-            if (
-                (tool["name"] == "api_tool" and "actions" in tool.get("config", {}))
-                or (tool["name"] != "api_tool" and "actions" in tool)
-            )
-            for action in (
+        return tools_dict
+
+    def prepare_tools_for_llm(self, tools_dict: Dict) -> List[Dict]:
+        """Convert tool configs to LLM function schemas.
+
+        Action names are kept clean for the LLM:
+        - Unique action names appear as-is (e.g. ``get_weather``).
+        - Duplicate action names get numbered suffixes (e.g. ``search_1``,
+          ``search_2``).
+
+        A reverse mapping is stored in ``_name_to_tool`` so that tool calls
+        can be routed back to the correct ``(tool_id, action_name)`` without
+        brittle string splitting.
+        """
+        # Pass 1: collect entries and count action name occurrences
+        entries: List[Tuple[str, str, Dict, bool]] = []  # (tool_id, action_name, action, is_client)
+        name_counts: Counter = Counter()
+
+        for tool_id, tool in tools_dict.items():
+            is_api = tool["name"] == "api_tool"
+            is_client = tool.get("client_side", False)
+
+            if is_api and "actions" not in tool.get("config", {}):
+                continue
+            if not is_api and "actions" not in tool:
+                continue
+
+            actions = (
                 tool["config"]["actions"].values()
-                if tool["name"] == "api_tool"
+                if is_api
                 else tool["actions"]
             )
-            if action.get("active", True)
-        ]
+
+            for action in actions:
+                if not action.get("active", True):
+                    continue
+                entries.append((tool_id, action["name"], action, is_client))
+                name_counts[action["name"]] += 1
+
+        # Pass 2: assign LLM-visible names and build mappings
+        self._name_to_tool = {}
+        self._tool_to_name = {}
+        collision_counters: Dict[str, int] = {}
+        all_llm_names: set = set()
+
+        result = []
+        for tool_id, action_name, action, is_client in entries:
+            if name_counts[action_name] == 1:
+                llm_name = action_name
+            else:
+                counter = collision_counters.get(action_name, 1)
+                candidate = f"{action_name}_{counter}"
+                # Skip if candidate collides with a unique action name
+                while candidate in all_llm_names or (
+                    candidate in name_counts and name_counts[candidate] == 1
+                ):
+                    counter += 1
+                    candidate = f"{action_name}_{counter}"
+                collision_counters[action_name] = counter + 1
+                llm_name = candidate
+
+            all_llm_names.add(llm_name)
+            self._name_to_tool[llm_name] = (tool_id, action_name)
+            self._tool_to_name[(tool_id, action_name)] = llm_name
+
+            if is_client:
+                params = action.get("parameters", {})
+            else:
+                params = self._build_tool_parameters(action)
+
+            result.append({
+                "type": "function",
+                "function": {
+                    "name": llm_name,
+                    "description": action.get("description", ""),
+                    "parameters": params,
+                },
+            })
+        return result
 
     def _build_tool_parameters(self, action: Dict) -> Dict:
         params = {"type": "object", "properties": {}, "required": []}
@@ -104,23 +210,81 @@ class ToolExecutor:
                             params["required"].append(k)
         return params
 
+    def check_pause(
+        self, tools_dict: Dict, call, llm_class_name: str
+    ) -> Optional[Dict]:
+        """Check if a tool call requires pausing for approval or client execution.
+
+        Returns a dict describing the pending action if pause is needed, None otherwise.
+        """
+        parser = ToolActionParser(llm_class_name, name_mapping=self._name_to_tool)
+        tool_id, action_name, call_args = parser.parse_args(call)
+        call_id = getattr(call, "id", None) or str(uuid.uuid4())
+        llm_name = getattr(call, "name", "")
+
+        if tool_id is None or action_name is None or tool_id not in tools_dict:
+            return None  # Will be handled as error by execute()
+
+        tool_data = tools_dict[tool_id]
+
+        # Client-side tools
+        if tool_data.get("client_side"):
+            return {
+                "call_id": call_id,
+                "name": llm_name,
+                "tool_name": tool_data.get("name", "unknown"),
+                "tool_id": tool_id,
+                "action_name": action_name,
+                "llm_name": llm_name,
+                "arguments": call_args if isinstance(call_args, dict) else {},
+                "pause_type": "requires_client_execution",
+                "thought_signature": getattr(call, "thought_signature", None),
+            }
+
+        # Approval required
+        if tool_data["name"] == "api_tool":
+            action_data = tool_data.get("config", {}).get("actions", {}).get(
+                action_name, {}
+            )
+        else:
+            action_data = next(
+                (a for a in tool_data.get("actions", []) if a["name"] == action_name),
+                {},
+            )
+
+        if action_data.get("require_approval"):
+            return {
+                "call_id": call_id,
+                "name": llm_name,
+                "tool_name": tool_data.get("name", "unknown"),
+                "tool_id": tool_id,
+                "action_name": action_name,
+                "llm_name": llm_name,
+                "arguments": call_args if isinstance(call_args, dict) else {},
+                "pause_type": "awaiting_approval",
+                "thought_signature": getattr(call, "thought_signature", None),
+            }
+
+        return None
+
     def execute(self, tools_dict: Dict, call, llm_class_name: str):
         """Execute a tool call. Yields status events, returns (result, call_id)."""
-        parser = ToolActionParser(llm_class_name)
+        parser = ToolActionParser(llm_class_name, name_mapping=self._name_to_tool)
         tool_id, action_name, call_args = parser.parse_args(call)
+        llm_name = getattr(call, "name", "unknown")
 
         call_id = getattr(call, "id", None) or str(uuid.uuid4())
 
         if tool_id is None or action_name is None:
-            error_message = f"Error: Failed to parse LLM tool call. Tool name: {getattr(call, 'name', 'unknown')}"
+            error_message = f"Error: Failed to parse LLM tool call. Tool name: {llm_name}"
             logger.error(error_message)
 
             tool_call_data = {
                 "tool_name": "unknown",
                 "call_id": call_id,
-                "action_name": getattr(call, "name", "unknown"),
+                "action_name": llm_name,
                 "arguments": call_args or {},
-                "result": f"Failed to parse tool call. Invalid tool name format: {getattr(call, 'name', 'unknown')}",
+                "result": f"Failed to parse tool call. Invalid tool name format: {llm_name}",
             }
             yield {"type": "tool_call", "data": {**tool_call_data, "status": "error"}}
             self.tool_calls.append(tool_call_data)
@@ -133,7 +297,7 @@ class ToolExecutor:
             tool_call_data = {
                 "tool_name": "unknown",
                 "call_id": call_id,
-                "action_name": f"{action_name}_{tool_id}",
+                "action_name": llm_name,
                 "arguments": call_args,
                 "result": f"Tool with ID {tool_id} not found. Available tools: {list(tools_dict.keys())}",
             }
@@ -144,7 +308,7 @@ class ToolExecutor:
         tool_call_data = {
             "tool_name": tools_dict[tool_id]["name"],
             "call_id": call_id,
-            "action_name": f"{action_name}_{tool_id}",
+            "action_name": llm_name,
             "arguments": call_args,
         }
         yield {"type": "tool_call", "data": {**tool_call_data, "status": "pending"}}
diff --git a/application/agents/tools/base.py b/application/agents/tools/base.py
index fd7b4a85..dfe8c85d 100644
--- a/application/agents/tools/base.py
+++ b/application/agents/tools/base.py
@@ -2,6 +2,8 @@ from abc import ABC, abstractmethod
 
 
 class Tool(ABC):
+    internal: bool = False
+
     @abstractmethod
     def execute_action(self, action_name: str, **kwargs):
         pass
diff --git a/application/agents/tools/internal_search.py b/application/agents/tools/internal_search.py
index 2cd7915b..78001bf5 100644
--- a/application/agents/tools/internal_search.py
+++ b/application/agents/tools/internal_search.py
@@ -20,6 +20,8 @@ class InternalSearchTool(Tool):
     - list_files action: browse the file/folder structure
     """
 
+    internal = True
+
     def __init__(self, config: Dict):
         self.config = config
         self.retrieved_docs: List[Dict] = []
diff --git a/application/agents/tools/think.py b/application/agents/tools/think.py
index 7c1fc2b6..24af553e 100644
--- a/application/agents/tools/think.py
+++ b/application/agents/tools/think.py
@@ -36,6 +36,8 @@ class ThinkTool(Tool):
     The reasoning content is captured in tool_call data for transparency.
     """
 
+    internal = True
+
     def __init__(self, config=None):
         pass
 
diff --git a/application/agents/tools/tool_action_parser.py b/application/agents/tools/tool_action_parser.py
index aff7d2e2..2c31ad45 100644
--- a/application/agents/tools/tool_action_parser.py
+++ b/application/agents/tools/tool_action_parser.py
@@ -5,8 +5,9 @@ logger = logging.getLogger(__name__)
 
 
 class ToolActionParser:
-    def __init__(self, llm_type):
+    def __init__(self, llm_type, name_mapping=None):
         self.llm_type = llm_type
+        self.name_mapping = name_mapping
         self.parsers = {
             "OpenAILLM": self._parse_openai_llm,
             "GoogleLLM": self._parse_google_llm,
@@ -16,22 +17,33 @@ class ToolActionParser:
         parser = self.parsers.get(self.llm_type, self._parse_openai_llm)
         return parser(call)
 
+    def _resolve_via_mapping(self, call_name):
+        """Look up (tool_id, action_name) from the name mapping if available."""
+        if self.name_mapping and call_name in self.name_mapping:
+            return self.name_mapping[call_name]
+        return None
+
     def _parse_openai_llm(self, call):
         try:
             call_args = json.loads(call.arguments)
+
+            resolved = self._resolve_via_mapping(call.name)
+            if resolved:
+                return resolved[0], resolved[1], call_args
+
+            # Fallback: legacy split on "_" for backward compatibility
             tool_parts = call.name.split("_")
 
-            # If the tool name doesn't contain an underscore, it's likely a hallucinated tool
             if len(tool_parts) < 2:
                 logger.warning(
-                    f"Invalid tool name format: {call.name}. Expected format: action_name_tool_id"
+                    f"Invalid tool name format: {call.name}. "
+                    "Could not resolve via mapping or legacy parsing."
                 )
                 return None, None, None
 
             tool_id = tool_parts[-1]
             action_name = "_".join(tool_parts[:-1])
 
-            # Validate that tool_id looks like a numerical ID
             if not tool_id.isdigit():
                 logger.warning(
                     f"Tool ID '{tool_id}' is not numerical. This might be a hallucinated tool call."
@@ -45,19 +57,24 @@ class ToolActionParser:
     def _parse_google_llm(self, call):
         try:
             call_args = call.arguments
+
+            resolved = self._resolve_via_mapping(call.name)
+            if resolved:
+                return resolved[0], resolved[1], call_args
+
+            # Fallback: legacy split on "_" for backward compatibility
             tool_parts = call.name.split("_")
 
-            # If the tool name doesn't contain an underscore, it's likely a hallucinated tool
             if len(tool_parts) < 2:
                 logger.warning(
-                    f"Invalid tool name format: {call.name}. Expected format: action_name_tool_id"
+                    f"Invalid tool name format: {call.name}. "
+                    "Could not resolve via mapping or legacy parsing."
                 )
                 return None, None, None
 
             tool_id = tool_parts[-1]
             action_name = "_".join(tool_parts[:-1])
 
-            # Validate that tool_id looks like a numerical ID
             if not tool_id.isdigit():
                 logger.warning(
                     f"Tool ID '{tool_id}' is not numerical. This might be a hallucinated tool call."
diff --git a/application/agents/tools/tool_manager.py b/application/agents/tools/tool_manager.py
index 08ef30a4..41970eac 100644
--- a/application/agents/tools/tool_manager.py
+++ b/application/agents/tools/tool_manager.py
@@ -19,7 +19,7 @@ class ToolManager:
                 continue
             module = importlib.import_module(f"application.agents.tools.{name}")
             for member_name, obj in inspect.getmembers(module, inspect.isclass):
-                if issubclass(obj, Tool) and obj is not Tool:
+                if issubclass(obj, Tool) and obj is not Tool and not obj.internal:
                     tool_config = self.config.get(name, {})
                     self.tools[name] = obj(tool_config)
 
diff --git a/application/api/answer/routes/answer.py b/application/api/answer/routes/answer.py
index f3111605..5fa7199f 100644
--- a/application/api/answer/routes/answer.py
+++ b/application/api/answer/routes/answer.py
@@ -74,57 +74,72 @@ class AnswerResource(Resource, BaseAnswerResource):
         decoded_token = getattr(request, "decoded_token", None)
         processor = StreamProcessor(data, decoded_token)
         try:
-            agent = processor.build_agent(data.get("question", ""))
-            if not processor.decoded_token:
-                return make_response({"error": "Unauthorized"}, 401)
+            # ---- Continuation mode ----
+            if data.get("tool_actions"):
+                (
+                    agent,
+                    messages,
+                    tools_dict,
+                    pending_tool_calls,
+                    tool_actions,
+                ) = processor.resume_from_tool_actions(
+                    data["tool_actions"], data["conversation_id"]
+                )
+                stream = self.complete_stream(
+                    question="",
+                    agent=agent,
+                    conversation_id=processor.conversation_id,
+                    user_api_key=processor.agent_config.get("user_api_key"),
+                    decoded_token=processor.decoded_token,
+                    agent_id=processor.agent_id,
+                    model_id=processor.model_id,
+                    _continuation={
+                        "messages": messages,
+                        "tools_dict": tools_dict,
+                        "pending_tool_calls": pending_tool_calls,
+                        "tool_actions": tool_actions,
+                    },
+                )
+            else:
+                # ---- Normal mode ----
+                agent = processor.build_agent(data.get("question", ""))
+                if not processor.decoded_token:
+                    return make_response({"error": "Unauthorized"}, 401)
 
-            if error := self.check_usage(processor.agent_config):
-                return error
+                if error := self.check_usage(processor.agent_config):
+                    return error
+
+                stream = self.complete_stream(
+                    question=data["question"],
+                    agent=agent,
+                    conversation_id=processor.conversation_id,
+                    user_api_key=processor.agent_config.get("user_api_key"),
+                    decoded_token=processor.decoded_token,
+                    isNoneDoc=data.get("isNoneDoc"),
+                    index=None,
+                    should_save_conversation=data.get("save_conversation", True),
+                    agent_id=processor.agent_id,
+                    is_shared_usage=processor.is_shared_usage,
+                    shared_token=processor.shared_token,
+                    model_id=processor.model_id,
+                )
 
-            stream = self.complete_stream(
-                question=data["question"],
-                agent=agent,
-                conversation_id=processor.conversation_id,
-                user_api_key=processor.agent_config.get("user_api_key"),
-                decoded_token=processor.decoded_token,
-                isNoneDoc=data.get("isNoneDoc"),
-                index=None,
-                should_save_conversation=data.get("save_conversation", True),
-                agent_id=processor.agent_id,
-                is_shared_usage=processor.is_shared_usage,
-                shared_token=processor.shared_token,
-                model_id=processor.model_id,
-            )
             stream_result = self.process_response_stream(stream)
 
-            if len(stream_result) == 7:
-                (
-                    conversation_id,
-                    response,
-                    sources,
-                    tool_calls,
-                    thought,
-                    error,
-                    structured_info,
-                ) = stream_result
-            else:
-                conversation_id, response, sources, tool_calls, thought, error = (
-                    stream_result
-                )
-                structured_info = None
+            if stream_result["error"]:
+                return make_response({"error": stream_result["error"]}, 400)
 
-            if error:
-                return make_response({"error": error}, 400)
             result = {
-                "conversation_id": conversation_id,
-                "answer": response,
-                "sources": sources,
-                "tool_calls": tool_calls,
-                "thought": thought,
+                "conversation_id": stream_result["conversation_id"],
+                "answer": stream_result["answer"],
+                "sources": stream_result["sources"],
+                "tool_calls": stream_result["tool_calls"],
+                "thought": stream_result["thought"],
             }
 
-            if structured_info:
-                result.update(structured_info)
+            extra_info = stream_result.get("extra")
+            if extra_info:
+                result.update(extra_info)
         except Exception as e:
             logger.error(
                 f"/api/answer - error: {str(e)} - traceback: {traceback.format_exc()}",
diff --git a/application/api/answer/routes/base.py b/application/api/answer/routes/base.py
index 29d3d66c..4a152b2a 100644
--- a/application/api/answer/routes/base.py
+++ b/application/api/answer/routes/base.py
@@ -6,6 +6,7 @@ from typing import Any, Dict, Generator, List, Optional
 from flask import jsonify, make_response, Response
 from flask_restx import Namespace
 
+from application.api.answer.services.continuation_service import ContinuationService
 from application.api.answer.services.conversation_service import ConversationService
 from application.core.model_utils import (
     get_api_key_for_provider,
@@ -39,7 +40,16 @@ class BaseAnswerResource:
     def validate_request(
         self, data: Dict[str, Any], require_conversation_id: bool = False
     ) -> Optional[Response]:
-        """Common request validation"""
+        """Common request validation.
+
+        Continuation requests (``tool_actions`` present) require
+        ``conversation_id`` but not ``question``.
+        """
+        if data.get("tool_actions"):
+            # Continuation mode — question is not required
+            if missing := check_required_fields(data, ["conversation_id"]):
+                return missing
+            return None
         required_fields = ["question"]
         if require_conversation_id:
             required_fields.append("conversation_id")
@@ -177,6 +187,7 @@ class BaseAnswerResource:
         is_shared_usage: bool = False,
         shared_token: Optional[str] = None,
         model_id: Optional[str] = None,
+        _continuation: Optional[Dict] = None,
     ) -> Generator[str, None, None]:
         """
         Generator function that streams the complete conversation response.
@@ -207,8 +218,19 @@ class BaseAnswerResource:
             schema_info = None
             structured_chunks = []
             query_metadata = {}
+            paused = False
 
-            for line in agent.gen(query=question):
+            if _continuation:
+                gen_iter = agent.gen_continuation(
+                    messages=_continuation["messages"],
+                    tools_dict=_continuation["tools_dict"],
+                    pending_tool_calls=_continuation["pending_tool_calls"],
+                    tool_actions=_continuation["tool_actions"],
+                )
+            else:
+                gen_iter = agent.gen(query=question)
+
+            for line in gen_iter:
                 if "metadata" in line:
                     query_metadata.update(line["metadata"])
                 elif "answer" in line:
@@ -244,15 +266,21 @@ class BaseAnswerResource:
                     data = json.dumps({"type": "thought", "thought": line["thought"]})
                     yield f"data: {data}\n\n"
                 elif "type" in line:
-                    if line.get("type") == "error":
+                    if line.get("type") == "tool_calls_pending":
+                        # Save continuation state and end the stream
+                        paused = True
+                        data = json.dumps(line)
+                        yield f"data: {data}\n\n"
+                    elif line.get("type") == "error":
                         sanitized_error = {
                             "type": "error",
                             "error": sanitize_api_error(line.get("error", "An error occurred"))
                         }
                         data = json.dumps(sanitized_error)
+                        yield f"data: {data}\n\n"
                     else:
                         data = json.dumps(line)
-                    yield f"data: {data}\n\n"
+                        yield f"data: {data}\n\n"
             if is_structured and structured_chunks:
                 structured_data = {
                     "type": "structured_answer",
@@ -262,6 +290,93 @@ class BaseAnswerResource:
                 }
                 data = json.dumps(structured_data)
                 yield f"data: {data}\n\n"
+
+            # ---- Paused: save continuation state and end stream early ----
+            if paused:
+                continuation = getattr(agent, "_pending_continuation", None)
+                if continuation:
+                    # Ensure we have a conversation_id — create a partial
+                    # conversation if this is the first turn.
+                    if not conversation_id and should_save_conversation:
+                        try:
+                            provider = (
+                                get_provider_from_model_id(model_id)
+                                if model_id
+                                else settings.LLM_PROVIDER
+                            )
+                            sys_api_key = get_api_key_for_provider(
+                                provider or settings.LLM_PROVIDER
+                            )
+                            llm = LLMCreator.create_llm(
+                                provider or settings.LLM_PROVIDER,
+                                api_key=sys_api_key,
+                                user_api_key=user_api_key,
+                                decoded_token=decoded_token,
+                                model_id=model_id,
+                                agent_id=agent_id,
+                            )
+                            conversation_id = (
+                                self.conversation_service.save_conversation(
+                                    None,
+                                    question,
+                                    response_full,
+                                    thought,
+                                    source_log_docs,
+                                    tool_calls,
+                                    llm,
+                                    model_id or self.default_model_id,
+                                    decoded_token,
+                                    api_key=user_api_key,
+                                    agent_id=agent_id,
+                                    is_shared_usage=is_shared_usage,
+                                    shared_token=shared_token,
+                                )
+                            )
+                        except Exception as e:
+                            logger.error(
+                                f"Failed to create conversation for continuation: {e}",
+                                exc_info=True,
+                            )
+
+                    if conversation_id:
+                        try:
+                            cont_service = ContinuationService()
+                            cont_service.save_state(
+                                conversation_id=str(conversation_id),
+                                user=decoded_token.get("sub", "local"),
+                                messages=continuation["messages"],
+                                pending_tool_calls=continuation["pending_tool_calls"],
+                                tools_dict=continuation["tools_dict"],
+                                tool_schemas=getattr(agent, "tools", []),
+                                agent_config={
+                                    "model_id": model_id or self.default_model_id,
+                                    "llm_name": getattr(agent, "llm_name", settings.LLM_PROVIDER),
+                                    "api_key": getattr(agent, "api_key", None),
+                                    "user_api_key": user_api_key,
+                                    "agent_id": agent_id,
+                                    "agent_type": agent.__class__.__name__,
+                                    "prompt": getattr(agent, "prompt", ""),
+                                    "json_schema": getattr(agent, "json_schema", None),
+                                    "retriever_config": getattr(agent, "retriever_config", None),
+                                },
+                                client_tools=getattr(
+                                    agent.tool_executor, "client_tools", None
+                                ),
+                            )
+                        except Exception as e:
+                            logger.error(
+                                f"Failed to save continuation state: {str(e)}",
+                                exc_info=True,
+                            )
+
+                id_data = {"type": "id", "id": str(conversation_id)}
+                data = json.dumps(id_data)
+                yield f"data: {data}\n\n"
+
+                data = json.dumps({"type": "end"})
+                yield f"data: {data}\n\n"
+                return
+
             if isNoneDoc:
                 for doc in source_log_docs:
                     doc["source"] = "None"
@@ -425,8 +540,13 @@ class BaseAnswerResource:
             yield f"data: {data}\n\n"
             return
 
-    def process_response_stream(self, stream):
-        """Process the stream response for non-streaming endpoint"""
+    def process_response_stream(self, stream) -> Dict[str, Any]:
+        """Process the stream response for non-streaming endpoint.
+
+        Returns:
+            Dict with keys: conversation_id, answer, sources, tool_calls,
+            thought, error, and optional extra.
+        """
         conversation_id = ""
         response_full = ""
         source_log_docs = []
@@ -435,6 +555,7 @@ class BaseAnswerResource:
         stream_ended = False
         is_structured = False
         schema_info = None
+        pending_tool_calls = None
 
         for line in stream:
             try:
@@ -453,11 +574,22 @@ class BaseAnswerResource:
                     source_log_docs = event["source"]
                 elif event["type"] == "tool_calls":
                     tool_calls = event["tool_calls"]
+                elif event["type"] == "tool_calls_pending":
+                    pending_tool_calls = event.get("data", {}).get(
+                        "pending_tool_calls", []
+                    )
                 elif event["type"] == "thought":
                     thought = event["thought"]
                 elif event["type"] == "error":
                     logger.error(f"Error from stream: {event['error']}")
-                    return None, None, None, None, event["error"], None
+                    return {
+                        "conversation_id": None,
+                        "answer": None,
+                        "sources": None,
+                        "tool_calls": None,
+                        "thought": None,
+                        "error": event["error"],
+                    }
                 elif event["type"] == "end":
                     stream_ended = True
             except (json.JSONDecodeError, KeyError) as e:
@@ -465,18 +597,30 @@ class BaseAnswerResource:
                 continue
         if not stream_ended:
             logger.error("Stream ended unexpectedly without an 'end' event.")
-            return None, None, None, None, "Stream ended unexpectedly", None
-        result = (
-            conversation_id,
-            response_full,
-            source_log_docs,
-            tool_calls,
-            thought,
-            None,
-        )
+            return {
+                "conversation_id": None,
+                "answer": None,
+                "sources": None,
+                "tool_calls": None,
+                "thought": None,
+                "error": "Stream ended unexpectedly",
+            }
+
+        result: Dict[str, Any] = {
+            "conversation_id": conversation_id,
+            "answer": response_full,
+            "sources": source_log_docs,
+            "tool_calls": tool_calls,
+            "thought": thought,
+            "error": None,
+        }
+
+        if pending_tool_calls is not None:
+            result["extra"] = {"pending_tool_calls": pending_tool_calls}
 
         if is_structured:
-            result = result + ({"structured": True, "schema": schema_info},)
+            result["extra"] = {"structured": True, "schema": schema_info}
+
         return result
 
     def error_stream_generate(self, err_response):
diff --git a/application/api/answer/routes/stream.py b/application/api/answer/routes/stream.py
index c2cc0ec6..2a6b9a11 100644
--- a/application/api/answer/routes/stream.py
+++ b/application/api/answer/routes/stream.py
@@ -79,7 +79,39 @@ class StreamResource(Resource, BaseAnswerResource):
             return error
         decoded_token = getattr(request, "decoded_token", None)
         processor = StreamProcessor(data, decoded_token)
+
         try:
+            # ---- Continuation mode ----
+            if data.get("tool_actions"):
+                (
+                    agent,
+                    messages,
+                    tools_dict,
+                    pending_tool_calls,
+                    tool_actions,
+                ) = processor.resume_from_tool_actions(
+                    data["tool_actions"], data["conversation_id"]
+                )
+                return Response(
+                    self.complete_stream(
+                        question="",
+                        agent=agent,
+                        conversation_id=processor.conversation_id,
+                        user_api_key=processor.agent_config.get("user_api_key"),
+                        decoded_token=processor.decoded_token,
+                        agent_id=processor.agent_id,
+                        model_id=processor.model_id,
+                        _continuation={
+                            "messages": messages,
+                            "tools_dict": tools_dict,
+                            "pending_tool_calls": pending_tool_calls,
+                            "tool_actions": tool_actions,
+                        },
+                    ),
+                    mimetype="text/event-stream",
+                )
+
+            # ---- Normal mode ----
             agent = processor.build_agent(data["question"])
             if not processor.decoded_token:
                 return Response(
diff --git a/application/api/answer/services/compression/message_builder.py b/application/api/answer/services/compression/message_builder.py
index 93772fe5..0c54e4e4 100644
--- a/application/api/answer/services/compression/message_builder.py
+++ b/application/api/answer/services/compression/message_builder.py
@@ -1,5 +1,6 @@
 """Message reconstruction utilities for compression."""
 
+import json
 import logging
 import uuid
 from typing import Dict, List, Optional
@@ -49,28 +50,35 @@ class MessageBuilder:
             if include_tool_calls and "tool_calls" in query:
                 for tool_call in query["tool_calls"]:
                     call_id = tool_call.get("call_id") or str(uuid.uuid4())
-
-                    function_call_dict = {
-                        "function_call": {
-                            "name": tool_call.get("action_name"),
-                            "args": tool_call.get("arguments"),
-                            "call_id": call_id,
-                        }
-                    }
-                    function_response_dict = {
-                        "function_response": {
-                            "name": tool_call.get("action_name"),
-                            "response": {"result": tool_call.get("result")},
-                            "call_id": call_id,
-                        }
-                    }
-
-                    messages.append(
-                        {"role": "assistant", "content": [function_call_dict]}
+                    args = tool_call.get("arguments")
+                    args_str = (
+                        json.dumps(args)
+                        if isinstance(args, dict)
+                        else (args or "{}")
                     )
-                    messages.append(
-                        {"role": "tool", "content": [function_response_dict]}
+                    messages.append({
+                        "role": "assistant",
+                        "content": None,
+                        "tool_calls": [{
+                            "id": call_id,
+                            "type": "function",
+                            "function": {
+                                "name": tool_call.get("action_name", ""),
+                                "arguments": args_str,
+                            },
+                        }],
+                    })
+                    result = tool_call.get("result")
+                    result_str = (
+                        json.dumps(result)
+                        if not isinstance(result, str)
+                        else (result or "")
                     )
+                    messages.append({
+                        "role": "tool",
+                        "tool_call_id": call_id,
+                        "content": result_str,
+                    })
 
         # If no recent queries (everything was compressed), add a continuation user message
         if len(recent_queries) == 0 and compressed_summary:
@@ -180,28 +188,35 @@ class MessageBuilder:
             if include_tool_calls and "tool_calls" in query:
                 for tool_call in query["tool_calls"]:
                     call_id = tool_call.get("call_id") or str(uuid.uuid4())
-
-                    function_call_dict = {
-                        "function_call": {
-                            "name": tool_call.get("action_name"),
-                            "args": tool_call.get("arguments"),
-                            "call_id": call_id,
-                        }
-                    }
-                    function_response_dict = {
-                        "function_response": {
-                            "name": tool_call.get("action_name"),
-                            "response": {"result": tool_call.get("result")},
-                            "call_id": call_id,
-                        }
-                    }
-
-                    rebuilt_messages.append(
-                        {"role": "assistant", "content": [function_call_dict]}
+                    args = tool_call.get("arguments")
+                    args_str = (
+                        json.dumps(args)
+                        if isinstance(args, dict)
+                        else (args or "{}")
                     )
-                    rebuilt_messages.append(
-                        {"role": "tool", "content": [function_response_dict]}
+                    rebuilt_messages.append({
+                        "role": "assistant",
+                        "content": None,
+                        "tool_calls": [{
+                            "id": call_id,
+                            "type": "function",
+                            "function": {
+                                "name": tool_call.get("action_name", ""),
+                                "arguments": args_str,
+                            },
+                        }],
+                    })
+                    result = tool_call.get("result")
+                    result_str = (
+                        json.dumps(result)
+                        if not isinstance(result, str)
+                        else (result or "")
                     )
+                    rebuilt_messages.append({
+                        "role": "tool",
+                        "tool_call_id": call_id,
+                        "content": result_str,
+                    })
 
         # If no recent queries (everything was compressed), add a continuation user message
         if len(recent_queries) == 0 and compressed_summary:
diff --git a/application/api/answer/services/continuation_service.py b/application/api/answer/services/continuation_service.py
new file mode 100644
index 00000000..d63c3966
--- /dev/null
+++ b/application/api/answer/services/continuation_service.py
@@ -0,0 +1,141 @@
+"""Service for saving and restoring tool-call continuation state.
+
+When a stream pauses (tool needs approval or client-side execution),
+the full execution state is persisted to MongoDB so the client can
+resume later by sending tool_actions.
+"""
+
+import datetime
+import logging
+from typing import Any, Dict, List, Optional
+
+from bson import ObjectId
+
+from application.core.mongo_db import MongoDB
+from application.core.settings import settings
+
+logger = logging.getLogger(__name__)
+
+# TTL for pending states — auto-cleaned after this period
+PENDING_STATE_TTL_SECONDS = 30 * 60  # 30 minutes
+
+
+def _make_serializable(obj: Any) -> Any:
+    """Recursively convert MongoDB ObjectIds and other non-JSON types."""
+    if isinstance(obj, ObjectId):
+        return str(obj)
+    if isinstance(obj, dict):
+        return {str(k): _make_serializable(v) for k, v in obj.items()}
+    if isinstance(obj, list):
+        return [_make_serializable(v) for v in obj]
+    if isinstance(obj, bytes):
+        return obj.decode("utf-8", errors="replace")
+    return obj
+
+
+class ContinuationService:
+    """Manages pending tool-call state in MongoDB."""
+
+    def __init__(self):
+        mongo = MongoDB.get_client()
+        db = mongo[settings.MONGO_DB_NAME]
+        self.collection = db["pending_tool_state"]
+        self._ensure_indexes()
+
+    def _ensure_indexes(self):
+        try:
+            self.collection.create_index(
+                "expires_at", expireAfterSeconds=0
+            )
+            self.collection.create_index(
+                [("conversation_id", 1), ("user", 1)], unique=True
+            )
+        except Exception:
+            # Indexes may already exist or mongomock doesn't support TTL
+            pass
+
+    def save_state(
+        self,
+        conversation_id: str,
+        user: str,
+        messages: List[Dict],
+        pending_tool_calls: List[Dict],
+        tools_dict: Dict,
+        tool_schemas: List[Dict],
+        agent_config: Dict,
+        client_tools: Optional[List[Dict]] = None,
+    ) -> str:
+        """Save execution state for later continuation.
+
+        Args:
+            conversation_id: The conversation this state belongs to.
+            user: Owner user ID.
+            messages: Full messages array at the pause point.
+            pending_tool_calls: Tool calls awaiting client action.
+            tools_dict: Serializable tools configuration dict.
+            tool_schemas: LLM-formatted tool schemas (agent.tools).
+            agent_config: Config needed to recreate the agent on resume.
+            client_tools: Client-provided tool schemas for client-side execution.
+
+        Returns:
+            The string ID of the saved state document.
+        """
+        now = datetime.datetime.now(datetime.timezone.utc)
+        expires_at = now + datetime.timedelta(seconds=PENDING_STATE_TTL_SECONDS)
+
+        doc = {
+            "conversation_id": conversation_id,
+            "user": user,
+            "messages": _make_serializable(messages),
+            "pending_tool_calls": _make_serializable(pending_tool_calls),
+            "tools_dict": _make_serializable(tools_dict),
+            "tool_schemas": _make_serializable(tool_schemas),
+            "agent_config": _make_serializable(agent_config),
+            "client_tools": _make_serializable(client_tools) if client_tools else None,
+            "created_at": now,
+            "expires_at": expires_at,
+        }
+
+        # Upsert — only one pending state per conversation per user
+        result = self.collection.replace_one(
+            {"conversation_id": conversation_id, "user": user},
+            doc,
+            upsert=True,
+        )
+        state_id = str(result.upserted_id) if result.upserted_id else conversation_id
+        logger.info(
+            f"Saved continuation state for conversation {conversation_id} "
+            f"with {len(pending_tool_calls)} pending tool call(s)"
+        )
+        return state_id
+
+    def load_state(
+        self, conversation_id: str, user: str
+    ) -> Optional[Dict[str, Any]]:
+        """Load pending continuation state.
+
+        Returns:
+            The state dict, or None if no pending state exists.
+        """
+        doc = self.collection.find_one(
+            {"conversation_id": conversation_id, "user": user}
+        )
+        if not doc:
+            return None
+        doc["_id"] = str(doc["_id"])
+        return doc
+
+    def delete_state(self, conversation_id: str, user: str) -> bool:
+        """Delete pending state after successful resumption.
+
+        Returns:
+            True if a document was deleted.
+        """
+        result = self.collection.delete_one(
+            {"conversation_id": conversation_id, "user": user}
+        )
+        if result.deleted_count:
+            logger.info(
+                f"Deleted continuation state for conversation {conversation_id}"
+            )
+        return result.deleted_count > 0
diff --git a/application/api/answer/services/stream_processor.py b/application/api/answer/services/stream_processor.py
index 28a2e8d4..fe2d7d8c 100644
--- a/application/api/answer/services/stream_processor.py
+++ b/application/api/answer/services/stream_processor.py
@@ -771,6 +771,121 @@ class StreamProcessor:
             logger.warning(f"Failed to fetch memory tool data: {str(e)}")
             return None
 
+    def resume_from_tool_actions(
+        self,
+        tool_actions: list,
+        conversation_id: str,
+    ):
+        """Resume a paused agent from saved continuation state.
+
+        Loads the pending state from MongoDB, recreates the agent with
+        the saved configuration, and returns an agent ready to call
+        ``gen_continuation()``.
+
+        Args:
+            tool_actions: Client-provided actions (approvals / results).
+            conversation_id: The conversation being resumed.
+
+        Returns:
+            Tuple of (agent, messages, tools_dict, pending_tool_calls, tool_actions).
+        """
+        from application.api.answer.services.continuation_service import (
+            ContinuationService,
+        )
+        from application.agents.agent_creator import AgentCreator
+        from application.agents.tool_executor import ToolExecutor
+        from application.llm.handlers.handler_creator import LLMHandlerCreator
+        from application.llm.llm_creator import LLMCreator
+
+        cont_service = ContinuationService()
+        state = cont_service.load_state(conversation_id, self.initial_user_id)
+        if not state:
+            raise ValueError("No pending tool state found for this conversation")
+
+        messages = state["messages"]
+        pending_tool_calls = state["pending_tool_calls"]
+        tools_dict = state["tools_dict"]
+        tool_schemas = state.get("tool_schemas", [])
+        agent_config = state["agent_config"]
+
+        model_id = agent_config.get("model_id")
+        llm_name = agent_config.get("llm_name", settings.LLM_PROVIDER)
+        api_key = agent_config.get("api_key")
+        user_api_key = agent_config.get("user_api_key")
+        agent_id = agent_config.get("agent_id")
+        prompt = agent_config.get("prompt", "")
+        json_schema = agent_config.get("json_schema")
+        retriever_config = agent_config.get("retriever_config")
+
+        # Recreate dependencies
+        system_api_key = api_key or get_api_key_for_provider(llm_name)
+        llm = LLMCreator.create_llm(
+            llm_name,
+            api_key=system_api_key,
+            user_api_key=user_api_key,
+            decoded_token=self.decoded_token,
+            model_id=model_id,
+            agent_id=agent_id,
+        )
+        llm_handler = LLMHandlerCreator.create_handler(llm_name or "default")
+        tool_executor = ToolExecutor(
+            user_api_key=user_api_key,
+            user=self.initial_user_id,
+            decoded_token=self.decoded_token,
+        )
+        tool_executor.conversation_id = conversation_id
+        # Restore client tools so they stay available for subsequent LLM calls
+        saved_client_tools = state.get("client_tools")
+        if saved_client_tools:
+            tool_executor.client_tools = saved_client_tools
+            # Re-merge into tools_dict (they may have been stripped during serialization)
+            tool_executor.merge_client_tools(tools_dict, saved_client_tools)
+
+        agent_type = agent_config.get("agent_type", "ClassicAgent")
+        # Map class names back to agent creator keys
+        type_map = {
+            "ClassicAgent": "classic",
+            "AgenticAgent": "agentic",
+            "ResearchAgent": "research",
+            "WorkflowAgent": "workflow",
+        }
+        agent_key = type_map.get(agent_type, "classic")
+
+        agent_kwargs = {
+            "endpoint": "stream",
+            "llm_name": llm_name,
+            "model_id": model_id,
+            "api_key": system_api_key,
+            "agent_id": agent_id,
+            "user_api_key": user_api_key,
+            "prompt": prompt,
+            "chat_history": [],
+            "decoded_token": self.decoded_token,
+            "json_schema": json_schema,
+            "llm": llm,
+            "llm_handler": llm_handler,
+            "tool_executor": tool_executor,
+        }
+
+        if agent_key in ("agentic", "research") and retriever_config:
+            agent_kwargs["retriever_config"] = retriever_config
+
+        agent = AgentCreator.create_agent(agent_key, **agent_kwargs)
+        agent.conversation_id = conversation_id
+        agent.initial_user_id = self.initial_user_id
+        agent.tools = tool_schemas
+
+        # Store config for the route layer
+        self.model_id = model_id
+        self.agent_id = agent_id
+        self.agent_config["user_api_key"] = user_api_key
+        self.conversation_id = conversation_id
+
+        # Delete state so it can't be replayed
+        cont_service.delete_state(conversation_id, self.initial_user_id)
+
+        return agent, messages, tools_dict, pending_tool_calls, tool_actions
+
     def create_agent(
         self,
         docs_together: Optional[str] = None,
@@ -841,6 +956,10 @@ class StreamProcessor:
             decoded_token=self.decoded_token,
         )
         tool_executor.conversation_id = self.conversation_id
+        # Pass client-side tools so they get merged in get_tools()
+        client_tools = self.data.get("client_tools")
+        if client_tools:
+            tool_executor.client_tools = client_tools
 
         # Base agent kwargs
         agent_kwargs = {
diff --git a/application/api/v1/__init__.py b/application/api/v1/__init__.py
new file mode 100644
index 00000000..69e535af
--- /dev/null
+++ b/application/api/v1/__init__.py
@@ -0,0 +1,3 @@
+from application.api.v1.routes import v1_bp
+
+__all__ = ["v1_bp"]
diff --git a/application/api/v1/routes.py b/application/api/v1/routes.py
new file mode 100644
index 00000000..d773d962
--- /dev/null
+++ b/application/api/v1/routes.py
@@ -0,0 +1,314 @@
+"""Standard chat completions API routes.
+
+Exposes ``/v1/chat/completions`` and ``/v1/models`` endpoints that
+follow the widely-adopted chat completions protocol so external tools
+(opencode, continue, etc.) can connect to DocsGPT agents.
+"""
+
+import json
+import logging
+import time
+import traceback
+from typing import Any, Dict, Generator, Optional
+
+from flask import Blueprint, jsonify, make_response, request, Response
+
+from application.api.answer.routes.base import BaseAnswerResource
+from application.api.answer.services.stream_processor import StreamProcessor
+from application.api.v1.translator import (
+    translate_request,
+    translate_response,
+    translate_stream_event,
+)
+from application.core.mongo_db import MongoDB
+from application.core.settings import settings
+
+logger = logging.getLogger(__name__)
+
+v1_bp = Blueprint("v1", __name__, url_prefix="/v1")
+
+
+def _extract_bearer_token() -> Optional[str]:
+    """Extract API key from Authorization: Bearer header."""
+    auth = request.headers.get("Authorization", "")
+    if auth.startswith("Bearer "):
+        return auth[7:].strip()
+    return None
+
+
+def _lookup_agent(api_key: str) -> Optional[Dict]:
+    """Look up the agent document for this API key."""
+    try:
+        mongo = MongoDB.get_client()
+        db = mongo[settings.MONGO_DB_NAME]
+        return db["agents"].find_one({"key": api_key})
+    except Exception:
+        logger.warning("Failed to look up agent for API key", exc_info=True)
+        return None
+
+
+def _get_model_name(agent: Optional[Dict], api_key: str) -> str:
+    """Return agent name for display as model name."""
+    if agent:
+        return agent.get("name", api_key)
+    return api_key
+
+
+class _V1AnswerHelper(BaseAnswerResource):
+    """Thin wrapper to access complete_stream / process_response_stream."""
+    pass
+
+
+@v1_bp.route("/chat/completions", methods=["POST"])
+def chat_completions():
+    """Handle POST /v1/chat/completions."""
+    api_key = _extract_bearer_token()
+    if not api_key:
+        return make_response(
+            jsonify({"error": {"message": "Missing Authorization header", "type": "auth_error"}}),
+            401,
+        )
+
+    data = request.get_json()
+    if not data or not data.get("messages"):
+        return make_response(
+            jsonify({"error": {"message": "messages field is required", "type": "invalid_request"}}),
+            400,
+        )
+
+    is_stream = data.get("stream", False)
+    agent_doc = _lookup_agent(api_key)
+    model_name = _get_model_name(agent_doc, api_key)
+
+    try:
+        internal_data = translate_request(data, api_key)
+    except Exception as e:
+        logger.error(f"/v1/chat/completions translate error: {e}", exc_info=True)
+        return make_response(
+            jsonify({"error": {"message": "Failed to process request", "type": "invalid_request"}}),
+            400,
+        )
+
+    # Link decoded_token to the agent's owner so continuation state,
+    # logs, and tool execution use the correct user identity.
+    agent_user = agent_doc.get("user") if agent_doc else None
+    decoded_token = {"sub": agent_user or "api_key_user"}
+
+    try:
+        processor = StreamProcessor(internal_data, decoded_token)
+
+        if internal_data.get("tool_actions"):
+            # Continuation mode
+            conversation_id = internal_data.get("conversation_id")
+            if not conversation_id:
+                return make_response(
+                    jsonify({"error": {"message": "conversation_id required for tool continuation", "type": "invalid_request"}}),
+                    400,
+                )
+            (
+                agent,
+                messages,
+                tools_dict,
+                pending_tool_calls,
+                tool_actions,
+            ) = processor.resume_from_tool_actions(
+                internal_data["tool_actions"], conversation_id
+            )
+            continuation = {
+                "messages": messages,
+                "tools_dict": tools_dict,
+                "pending_tool_calls": pending_tool_calls,
+                "tool_actions": tool_actions,
+            }
+            question = ""
+        else:
+            # Normal mode
+            question = internal_data.get("question", "")
+            agent = processor.build_agent(question)
+            continuation = None
+
+        if not processor.decoded_token:
+            return make_response(
+                jsonify({"error": {"message": "Unauthorized", "type": "auth_error"}}),
+                401,
+            )
+
+        helper = _V1AnswerHelper()
+        usage_error = helper.check_usage(processor.agent_config)
+        if usage_error:
+            return usage_error
+
+        if is_stream:
+            return Response(
+                _stream_response(
+                    helper, question, agent, processor, model_name, continuation
+                ),
+                mimetype="text/event-stream",
+                headers={
+                    "Cache-Control": "no-cache",
+                    "X-Accel-Buffering": "no",
+                },
+            )
+        else:
+            return _non_stream_response(
+                helper, question, agent, processor, model_name, continuation
+            )
+
+    except ValueError as e:
+        logger.error(
+            f"/v1/chat/completions error: {e} - {traceback.format_exc()}",
+            extra={"error": str(e)},
+        )
+        return make_response(
+            jsonify({"error": {"message": "Failed to process request", "type": "invalid_request"}}),
+            400,
+        )
+    except Exception as e:
+        logger.error(
+            f"/v1/chat/completions error: {e} - {traceback.format_exc()}",
+            extra={"error": str(e)},
+        )
+        return make_response(
+            jsonify({"error": {"message": "Internal server error", "type": "server_error"}}),
+            500,
+        )
+
+
+def _stream_response(
+    helper: _V1AnswerHelper,
+    question: str,
+    agent: Any,
+    processor: StreamProcessor,
+    model_name: str,
+    continuation: Optional[Dict],
+) -> Generator[str, None, None]:
+    """Generate translated SSE chunks for streaming response."""
+    completion_id = f"chatcmpl-{int(time.time())}"
+
+    internal_stream = helper.complete_stream(
+        question=question,
+        agent=agent,
+        conversation_id=processor.conversation_id,
+        user_api_key=processor.agent_config.get("user_api_key"),
+        decoded_token=processor.decoded_token,
+        agent_id=processor.agent_id,
+        model_id=processor.model_id,
+        _continuation=continuation,
+    )
+
+    for line in internal_stream:
+        if not line.strip():
+            continue
+        # Parse the internal SSE event
+        event_str = line.replace("data: ", "").strip()
+        try:
+            event_data = json.loads(event_str)
+        except (json.JSONDecodeError, TypeError):
+            continue
+
+        # Update completion_id when we get the conversation id
+        if event_data.get("type") == "id":
+            conv_id = event_data.get("id", "")
+            if conv_id:
+                completion_id = f"chatcmpl-{conv_id}"
+
+        # Translate to standard format
+        translated = translate_stream_event(event_data, completion_id, model_name)
+        for chunk in translated:
+            yield chunk
+
+
+def _non_stream_response(
+    helper: _V1AnswerHelper,
+    question: str,
+    agent: Any,
+    processor: StreamProcessor,
+    model_name: str,
+    continuation: Optional[Dict],
+) -> Response:
+    """Collect full response and return as single JSON."""
+    stream = helper.complete_stream(
+        question=question,
+        agent=agent,
+        conversation_id=processor.conversation_id,
+        user_api_key=processor.agent_config.get("user_api_key"),
+        decoded_token=processor.decoded_token,
+        agent_id=processor.agent_id,
+        model_id=processor.model_id,
+        _continuation=continuation,
+    )
+
+    result = helper.process_response_stream(stream)
+
+    if result["error"]:
+        return make_response(
+            jsonify({"error": {"message": result["error"], "type": "server_error"}}),
+            500,
+        )
+
+    extra = result.get("extra")
+    pending = extra.get("pending_tool_calls") if isinstance(extra, dict) else None
+
+    response = translate_response(
+        conversation_id=result["conversation_id"],
+        answer=result["answer"] or "",
+        sources=result["sources"],
+        tool_calls=result["tool_calls"],
+        thought=result["thought"] or "",
+        model_name=model_name,
+        pending_tool_calls=pending,
+    )
+    return make_response(jsonify(response), 200)
+
+
+@v1_bp.route("/models", methods=["GET"])
+def list_models():
+    """Handle GET /v1/models — return agents as models."""
+    api_key = _extract_bearer_token()
+    if not api_key:
+        return make_response(
+            jsonify({"error": {"message": "Missing Authorization header", "type": "auth_error"}}),
+            401,
+        )
+
+    try:
+        mongo = MongoDB.get_client()
+        db = mongo[settings.MONGO_DB_NAME]
+        agents_collection = db["agents"]
+
+        # Find the agent for this api_key
+        agent = agents_collection.find_one({"key": api_key})
+        if not agent:
+            return make_response(
+                jsonify({"error": {"message": "Invalid API key", "type": "auth_error"}}),
+                401,
+            )
+
+        user = agent.get("user")
+
+        # Return all agents belonging to this user
+        user_agents = list(agents_collection.find({"user": user}))
+
+        models = []
+        for ag in user_agents:
+            created = ag.get("createdAt")
+            created_ts = int(created.timestamp()) if created else int(time.time())
+            models.append({
+                "id": str(ag.get("key", "")),
+                "object": "model",
+                "created": created_ts,
+                "owned_by": "docsgpt",
+                "name": ag.get("name", ""),
+                "description": ag.get("description", ""),
+            })
+
+        return make_response(
+            jsonify({"object": "list", "data": models}),
+            200,
+        )
+    except Exception as e:
+        logger.error(f"/v1/models error: {e}", exc_info=True)
+        return make_response(
+            jsonify({"error": {"message": "Internal server error", "type": "server_error"}}),
+            500,
+        )
diff --git a/application/api/v1/translator.py b/application/api/v1/translator.py
new file mode 100644
index 00000000..3d3c64fe
--- /dev/null
+++ b/application/api/v1/translator.py
@@ -0,0 +1,415 @@
+"""Translate between standard chat completions format and DocsGPT internals.
+
+This module handles:
+- Request translation (chat completions -> DocsGPT internal format)
+- Response translation (DocsGPT response -> chat completions format)
+- Streaming event translation (DocsGPT SSE -> standard SSE chunks)
+"""
+
+import json
+import time
+from typing import Any, Dict, List, Optional
+
+def _get_client_tool_name(tc: Dict) -> str:
+    """Return the original tool name for client-facing responses.
+
+    For client-side tools the ``tool_name`` field carries the name the
+    client originally registered.  Fall back to ``action_name`` (which
+    is now the clean LLM-visible name) or ``name``.
+    """
+    return tc.get("tool_name", tc.get("action_name", tc.get("name", "")))
+
+
+# ---------------------------------------------------------------------------
+# Request translation
+# ---------------------------------------------------------------------------
+
+
+def is_continuation(messages: List[Dict]) -> bool:
+    """Check if messages represent a tool-call continuation.
+
+    A continuation is detected when the last message(s) have ``role: "tool"``
+    immediately after an assistant message with ``tool_calls``.
+    """
+    if not messages:
+        return False
+    # Walk backwards: if we see tool messages before hitting a non-tool, non-assistant message
+    # and there's an assistant message with tool_calls, it's a continuation.
+    i = len(messages) - 1
+    while i >= 0 and messages[i].get("role") == "tool":
+        i -= 1
+    if i < 0:
+        return False
+    return (
+        messages[i].get("role") == "assistant"
+        and bool(messages[i].get("tool_calls"))
+    )
+
+
+def extract_tool_results(messages: List[Dict]) -> List[Dict]:
+    """Extract tool results from trailing tool messages for continuation.
+
+    Returns a list of ``tool_actions`` dicts with ``call_id`` and ``result``.
+    """
+    results = []
+    for msg in reversed(messages):
+        if msg.get("role") != "tool":
+            break
+        call_id = msg.get("tool_call_id", "")
+        content = msg.get("content", "")
+        if isinstance(content, str):
+            try:
+                content = json.loads(content)
+            except (json.JSONDecodeError, TypeError):
+                pass
+        results.append({"call_id": call_id, "result": content})
+    results.reverse()
+    return results
+
+
+def extract_conversation_id(messages: List[Dict]) -> Optional[str]:
+    """Try to extract conversation_id from the assistant message before tool results.
+
+    The conversation_id may be stored in a custom field on the assistant message
+    from a previous response cycle.
+    """
+    for msg in reversed(messages):
+        if msg.get("role") == "assistant":
+            # Check docsgpt extension
+            return msg.get("docsgpt", {}).get("conversation_id")
+    return None
+
+
+def convert_history(messages: List[Dict]) -> List[Dict]:
+    """Convert chat completions messages array to DocsGPT history format.
+
+    DocsGPT history is a list of ``{prompt, response}`` dicts.
+    Excludes the last user message (that becomes the ``question``).
+    """
+    history = []
+    i = 0
+    while i < len(messages):
+        msg = messages[i]
+        if msg.get("role") == "system":
+            i += 1
+            continue
+        if msg.get("role") == "user":
+            # Look ahead for assistant response
+            if i + 1 < len(messages) and messages[i + 1].get("role") == "assistant":
+                content = messages[i + 1].get("content") or ""
+                history.append({
+                    "prompt": msg.get("content", ""),
+                    "response": content,
+                })
+                i += 2
+                continue
+            # Last user message without response — skip (it's the question)
+            i += 1
+            continue
+        i += 1
+    return history
+
+
+def translate_request(
+    data: Dict[str, Any], api_key: str
+) -> Dict[str, Any]:
+    """Translate a chat completions request to DocsGPT internal format.
+
+    Args:
+        data: The incoming request body.
+        api_key: Agent API key from the Authorization header.
+
+    Returns:
+        Dict suitable for passing to ``StreamProcessor``.
+    """
+    messages = data.get("messages", [])
+
+    # Check for continuation (tool results after assistant tool_calls)
+    if is_continuation(messages):
+        tool_actions = extract_tool_results(messages)
+        conversation_id = extract_conversation_id(messages)
+        if not conversation_id:
+            conversation_id = data.get("conversation_id")
+        result = {
+            "conversation_id": conversation_id,
+            "tool_actions": tool_actions,
+            "api_key": api_key,
+        }
+        # Carry tools forward for next iteration
+        if data.get("tools"):
+            result["client_tools"] = data["tools"]
+        return result
+
+    # Normal request — extract question from last user message
+    question = ""
+    for msg in reversed(messages):
+        if msg.get("role") == "user":
+            question = msg.get("content", "")
+            break
+
+    history = convert_history(messages)
+
+    result = {
+        "question": question,
+        "api_key": api_key,
+        "history": json.dumps(history),
+        "save_conversation": True,
+    }
+
+    # Client tools
+    if data.get("tools"):
+        result["client_tools"] = data["tools"]
+
+    # DocsGPT extensions
+    docsgpt = data.get("docsgpt", {})
+    if docsgpt.get("attachments"):
+        result["attachments"] = docsgpt["attachments"]
+
+    return result
+
+
+# ---------------------------------------------------------------------------
+# Response translation (non-streaming)
+# ---------------------------------------------------------------------------
+
+
+def translate_response(
+    conversation_id: str,
+    answer: str,
+    sources: Optional[List[Dict]],
+    tool_calls: Optional[List[Dict]],
+    thought: str,
+    model_name: str,
+    pending_tool_calls: Optional[List[Dict]] = None,
+) -> Dict[str, Any]:
+    """Translate DocsGPT response to chat completions format.
+
+    Args:
+        conversation_id: The DocsGPT conversation ID.
+        answer: The assistant's text response.
+        sources: RAG retrieval sources.
+        tool_calls: Completed tool call results.
+        thought: Reasoning/thinking tokens.
+        model_name: Model/agent identifier.
+        pending_tool_calls: Pending client-side tool calls (if paused).
+
+    Returns:
+        Dict in the standard chat completions response format.
+    """
+    created = int(time.time())
+    completion_id = f"chatcmpl-{conversation_id}" if conversation_id else f"chatcmpl-{created}"
+
+    # Build message
+    message: Dict[str, Any] = {"role": "assistant"}
+
+    if pending_tool_calls:
+        # Tool calls pending — return them for client execution
+        message["content"] = None
+        message["tool_calls"] = [
+            {
+                "id": tc.get("call_id", ""),
+                "type": "function",
+                "function": {
+                    "name": _get_client_tool_name(tc),
+                    "arguments": (
+                        json.dumps(tc["arguments"])
+                        if isinstance(tc.get("arguments"), dict)
+                        else tc.get("arguments", "{}")
+                    ),
+                },
+            }
+            for tc in pending_tool_calls
+        ]
+        finish_reason = "tool_calls"
+    else:
+        message["content"] = answer
+        if thought:
+            message["reasoning_content"] = thought
+        finish_reason = "stop"
+
+    result: Dict[str, Any] = {
+        "id": completion_id,
+        "object": "chat.completion",
+        "created": created,
+        "model": model_name,
+        "choices": [
+            {
+                "index": 0,
+                "message": message,
+                "finish_reason": finish_reason,
+            }
+        ],
+        "usage": {
+            "prompt_tokens": 0,
+            "completion_tokens": 0,
+            "total_tokens": 0,
+        },
+    }
+
+    # DocsGPT extensions
+    docsgpt: Dict[str, Any] = {}
+    if conversation_id:
+        docsgpt["conversation_id"] = conversation_id
+    if sources:
+        docsgpt["sources"] = sources
+    if tool_calls:
+        docsgpt["tool_calls"] = tool_calls
+    if docsgpt:
+        result["docsgpt"] = docsgpt
+
+    return result
+
+
+# ---------------------------------------------------------------------------
+# Streaming event translation
+# ---------------------------------------------------------------------------
+
+
+def _make_chunk(
+    completion_id: str,
+    model_name: str,
+    delta: Dict[str, Any],
+    finish_reason: Optional[str] = None,
+) -> str:
+    """Build a single SSE chunk in the standard streaming format."""
+    chunk = {
+        "id": completion_id,
+        "object": "chat.completion.chunk",
+        "created": int(time.time()),
+        "model": model_name,
+        "choices": [
+            {
+                "index": 0,
+                "delta": delta,
+                "finish_reason": finish_reason,
+            }
+        ],
+    }
+    return f"data: {json.dumps(chunk)}\n\n"
+
+
+def _make_docsgpt_chunk(data: Dict[str, Any]) -> str:
+    """Build a DocsGPT extension SSE chunk."""
+    return f"data: {json.dumps({'docsgpt': data})}\n\n"
+
+
+def translate_stream_event(
+    event_data: Dict[str, Any],
+    completion_id: str,
+    model_name: str,
+) -> List[str]:
+    """Translate a DocsGPT SSE event dict to standard streaming chunks.
+
+    May return 0, 1, or 2 chunks per input event. For example, a completed
+    tool call produces both a docsgpt extension chunk and nothing on the
+    standard side (since server-side tool calls aren't surfaced in standard
+    format).
+
+    Args:
+        event_data: Parsed DocsGPT event dict.
+        completion_id: The completion ID for this response.
+        model_name: Model/agent identifier.
+
+    Returns:
+        List of SSE-formatted strings to send to the client.
+    """
+    event_type = event_data.get("type")
+    chunks: List[str] = []
+
+    if event_type == "answer":
+        chunks.append(
+            _make_chunk(completion_id, model_name, {"content": event_data.get("answer", "")})
+        )
+
+    elif event_type == "thought":
+        chunks.append(
+            _make_chunk(
+                completion_id, model_name,
+                {"reasoning_content": event_data.get("thought", "")},
+            )
+        )
+
+    elif event_type == "source":
+        chunks.append(
+            _make_docsgpt_chunk({
+                "type": "source",
+                "sources": event_data.get("source", []),
+            })
+        )
+
+    elif event_type == "tool_call":
+        tc_data = event_data.get("data", {})
+        status = tc_data.get("status")
+
+        if status == "requires_client_execution":
+            # Standard: stream as tool_calls delta
+            args = tc_data.get("arguments", {})
+            args_str = json.dumps(args) if isinstance(args, dict) else str(args)
+            chunks.append(
+                _make_chunk(completion_id, model_name, {
+                    "tool_calls": [{
+                        "index": 0,
+                        "id": tc_data.get("call_id", ""),
+                        "type": "function",
+                        "function": {
+                            "name": _get_client_tool_name(tc_data),
+                            "arguments": args_str,
+                        },
+                    }],
+                })
+            )
+        elif status == "awaiting_approval":
+            # Extension: approval needed
+            chunks.append(_make_docsgpt_chunk({"type": "tool_call", "data": tc_data}))
+        elif status in ("completed", "pending", "error", "denied", "skipped"):
+            # Extension: tool call progress
+            chunks.append(_make_docsgpt_chunk({"type": "tool_call", "data": tc_data}))
+
+    elif event_type == "tool_calls_pending":
+        # Standard: finish_reason = tool_calls
+        chunks.append(
+            _make_chunk(completion_id, model_name, {}, finish_reason="tool_calls")
+        )
+        # Also emit as docsgpt extension
+        chunks.append(
+            _make_docsgpt_chunk({
+                "type": "tool_calls_pending",
+                "pending_tool_calls": event_data.get("data", {}).get("pending_tool_calls", []),
+            })
+        )
+
+    elif event_type == "end":
+        chunks.append(
+            _make_chunk(completion_id, model_name, {}, finish_reason="stop")
+        )
+        chunks.append("data: [DONE]\n\n")
+
+    elif event_type == "id":
+        chunks.append(
+            _make_docsgpt_chunk({
+                "type": "id",
+                "conversation_id": event_data.get("id", ""),
+            })
+        )
+
+    elif event_type == "error":
+        # Emit as standard error (non-standard but widely supported)
+        error_data = {
+            "error": {
+                "message": event_data.get("error", "An error occurred"),
+                "type": "server_error",
+            }
+        }
+        chunks.append(f"data: {json.dumps(error_data)}\n\n")
+
+    elif event_type == "structured_answer":
+        chunks.append(
+            _make_chunk(
+                completion_id, model_name,
+                {"content": event_data.get("answer", "")},
+            )
+        )
+
+    # Skip: tool_calls (redundant), research_plan, research_progress
+
+    return chunks
diff --git a/application/app.py b/application/app.py
index aed069e0..a2578fea 100644
--- a/application/app.py
+++ b/application/app.py
@@ -17,6 +17,7 @@ from application.api.answer import answer  # noqa: E402
 from application.api.internal.routes import internal  # noqa: E402
 from application.api.user.routes import user  # noqa: E402
 from application.api.connector.routes import connector  # noqa: E402
+from application.api.v1 import v1_bp  # noqa: E402
 from application.celery_init import celery  # noqa: E402
 from application.core.settings import settings  # noqa: E402
 from application.stt.upload_limits import (  # noqa: E402
@@ -36,6 +37,7 @@ app.register_blueprint(user)
 app.register_blueprint(answer)
 app.register_blueprint(internal)
 app.register_blueprint(connector)
+app.register_blueprint(v1_bp)
 app.config.update(
     UPLOAD_FOLDER="inputs",
     CELERY_BROKER_URL=settings.CELERY_BROKER_URL,
diff --git a/application/llm/google_ai.py b/application/llm/google_ai.py
index ca984ba7..538abe67 100644
--- a/application/llm/google_ai.py
+++ b/application/llm/google_ai.py
@@ -167,6 +167,8 @@ class GoogleLLM(BaseLLM):
                 return "\n".join(parts)
             return ""
 
+        import json as _json
+
         for message in messages:
             role = message.get("role")
             content = message.get("content")
@@ -180,9 +182,66 @@ class GoogleLLM(BaseLLM):
 
             if role == "assistant":
                 role = "model"
-            elif role == "tool":
-                role = "model"
+
             parts = []
+
+            # Standard format: assistant message with tool_calls array
+            msg_tool_calls = message.get("tool_calls")
+            if msg_tool_calls and role == "model":
+                for tc in msg_tool_calls:
+                    func = tc.get("function", {})
+                    args = func.get("arguments", "{}")
+                    if isinstance(args, str):
+                        try:
+                            args = _json.loads(args)
+                        except (_json.JSONDecodeError, TypeError):
+                            args = {}
+                    cleaned_args = self._remove_null_values(args)
+                    thought_sig = tc.get("thought_signature")
+                    if thought_sig:
+                        parts.append(
+                            types.Part(
+                                functionCall=types.FunctionCall(
+                                    name=func.get("name", ""),
+                                    args=cleaned_args,
+                                ),
+                                thoughtSignature=thought_sig,
+                            )
+                        )
+                    else:
+                        parts.append(
+                            types.Part.from_function_call(
+                                name=func.get("name", ""),
+                                args=cleaned_args,
+                            )
+                        )
+                if parts:
+                    cleaned_messages.append(types.Content(role=role, parts=parts))
+                continue
+
+            # Standard format: tool message with tool_call_id
+            tool_call_id = message.get("tool_call_id")
+            if role == "tool" and tool_call_id is not None:
+                result_content = content
+                if isinstance(result_content, str):
+                    try:
+                        result_content = _json.loads(result_content)
+                    except (_json.JSONDecodeError, TypeError):
+                        pass
+                # Google expects function_response name — extract from tool_call_id context
+                # We use a placeholder name since Google API doesn't require exact match
+                parts.append(
+                    types.Part.from_function_response(
+                        name="tool_result",
+                        response={"result": result_content},
+                    )
+                )
+                cleaned_messages.append(types.Content(role="model", parts=parts))
+                continue
+
+            if role == "tool":
+                role = "model"
+
             if role and content is not None:
                 if isinstance(content, str):
                     parts = [types.Part.from_text(text=content)]
@@ -191,15 +250,11 @@ class GoogleLLM(BaseLLM):
                         if "text" in item:
                             parts.append(types.Part.from_text(text=item["text"]))
                         elif "function_call" in item:
-                            # Remove null values from args to avoid API errors
-
+                            # Legacy format support
                             cleaned_args = self._remove_null_values(
                                 item["function_call"]["args"]
                             )
-                            # Create function call part with thought_signature if present
-                            # For Gemini 3 models, we need to include thought_signature
                             if "thought_signature" in item:
-                                # Use Part constructor with functionCall and thoughtSignature
                                 parts.append(
                                     types.Part(
                                         functionCall=types.FunctionCall(
@@ -210,7 +265,6 @@ class GoogleLLM(BaseLLM):
                                     )
                                 )
                             else:
-                                # Use helper method when no thought_signature
                                 parts.append(
                                     types.Part.from_function_call(
                                         name=item["function_call"]["name"],
diff --git a/application/llm/handlers/base.py b/application/llm/handlers/base.py
index 7537d9c5..a2edd233 100644
--- a/application/llm/handlers/base.py
+++ b/application/llm/handlers/base.py
@@ -1,3 +1,4 @@
+import json
 import logging
 import uuid
 from abc import ABC, abstractmethod
@@ -315,10 +316,34 @@ class LLMHandler(ABC):
                 current_prompt = self._extract_text_from_content(content)
 
             elif role in {"assistant", "model"}:
-                # If this assistant turn contains tool calls, collect them; otherwise commit a response.
+                # Standard format: tool_calls array on assistant message
+                msg_tool_calls = message.get("tool_calls")
+                if msg_tool_calls:
+                    for tc in msg_tool_calls:
+                        call_id = tc.get("id") or str(uuid.uuid4())
+                        func = tc.get("function", {})
+                        args = func.get("arguments")
+                        if isinstance(args, str):
+                            try:
+                                args = json.loads(args)
+                            except (json.JSONDecodeError, TypeError):
+                                pass
+                        current_tool_calls[call_id] = {
+                            "tool_name": "unknown_tool",
+                            "action_name": func.get("name"),
+                            "arguments": args,
+                            "result": None,
+                            "status": "called",
+                            "call_id": call_id,
+                        }
+                    continue
+
+                # Legacy format: function_call/function_response in content list
                 if isinstance(content, list):
+                    has_fc = False
                     for item in content:
                         if "function_call" in item:
+                            has_fc = True
                             fc = item["function_call"]
                             call_id = fc.get("call_id") or str(uuid.uuid4())
                             current_tool_calls[call_id] = {
@@ -329,37 +354,30 @@ class LLMHandler(ABC):
                                 "status": "called",
                                 "call_id": call_id,
                             }
-                        elif "function_response" in item:
-                            fr = item["function_response"]
-                            call_id = fr.get("call_id") or str(uuid.uuid4())
-                            current_tool_calls[call_id] = {
-                                "tool_name": "unknown_tool",
-                                "action_name": fr.get("name"),
-                                "arguments": None,
-                                "result": fr.get("response", {}).get("result"),
-                                "status": "completed",
-                                "call_id": call_id,
-                            }
-                    # No direct assistant text here; continue to next message
-                    continue
+                    if has_fc:
+                        continue
 
                 response_text = self._extract_text_from_content(content)
                 _commit_query(response_text)
 
             elif role == "tool":
-                # Attach tool outputs to the latest pending tool call if possible
+                # Standard format: tool_call_id on tool message
+                call_id = message.get("tool_call_id")
                 tool_text = self._extract_text_from_content(content)
-                # Attempt to parse function_response style
-                call_id = None
-                if isinstance(content, list):
-                    for item in content:
-                        if "function_response" in item and item["function_response"].get("call_id"):
-                            call_id = item["function_response"]["call_id"]
-                            break
+
                 if call_id and call_id in current_tool_calls:
                     current_tool_calls[call_id]["result"] = tool_text
                     current_tool_calls[call_id]["status"] = "completed"
-                elif queries:
+                # Legacy: function_response in content list
+                elif isinstance(content, list):
+                    for item in content:
+                        if "function_response" in item:
+                            legacy_id = item["function_response"].get("call_id")
+                            if legacy_id and legacy_id in current_tool_calls:
+                                current_tool_calls[legacy_id]["result"] = tool_text
+                                current_tool_calls[legacy_id]["status"] = "completed"
+                                break
+                elif call_id is None and queries:
                     queries[-1].setdefault("tool_calls", []).append(
                         {
                             "tool_name": "unknown_tool",
@@ -648,6 +666,13 @@ class LLMHandler(ABC):
         """
         Execute tool calls and update conversation history.
 
+        When a tool requires approval or client-side execution, it is
+        collected as a pending action instead of being executed.  The
+        generator returns ``(updated_messages, pending_actions)`` where
+        *pending_actions* is ``None`` when every tool was executed
+        normally, or a list of dicts describing actions the client must
+        resolve before the LLM loop can continue.
+
         Args:
             agent: The agent instance
             tool_calls: List of tool calls to execute
@@ -655,9 +680,11 @@ class LLMHandler(ABC):
             messages: Current conversation history
 
         Returns:
-            Updated messages list
+            Tuple of (updated_messages, pending_actions).
+            pending_actions is None if all tools executed, otherwise a list.
         """
         updated_messages = messages.copy()
+        pending_actions: List[Dict] = []
 
         for i, call in enumerate(tool_calls):
             # Check context limit before executing tool call
@@ -763,6 +790,29 @@ class LLMHandler(ABC):
                     # Set flag on agent
                     agent.context_limit_reached = True
                     break
+
+            # ---- Pause check: approval / client-side execution ----
+            llm_class = agent.llm.__class__.__name__
+            pause_info = agent.tool_executor.check_pause(
+                tools_dict, call, llm_class
+            )
+            if pause_info:
+                # Yield pause event so the client knows this tool is waiting
+                yield {
+                    "type": "tool_call",
+                    "data": {
+                        "tool_name": pause_info["tool_name"],
+                        "call_id": pause_info["call_id"],
+                        "action_name": pause_info.get("llm_name", pause_info["name"]),
+                        "arguments": pause_info["arguments"],
+                        "status": pause_info["pause_type"],
+                    },
+                }
+                pending_actions.append(pause_info)
+                # Do NOT add messages for pending tools here.
+                # They will be added on resume to keep call/result pairs together.
+                continue
+
             try:
                 self.tool_calls.append(call)
                 tool_executor_gen = agent._execute_tool_action(tools_dict, call)
@@ -772,25 +822,30 @@ class LLMHandler(ABC):
                     except StopIteration as e:
                         tool_response, call_id = e.value
                         break
-                    
-                function_call_content = {
-                    "function_call": {
-                        "name": call.name,
-                        "args": call.arguments,
-                        "call_id": call_id,
-                    }
-                }
-                # Include thought_signature for Google Gemini 3 models
-                # It should be at the same level as function_call, not inside it
-                if call.thought_signature:
-                    function_call_content["thought_signature"] = call.thought_signature
-                updated_messages.append(
-                    {
-                        "role": "assistant",
-                        "content": [function_call_content],
-                    }
-                )
 
+                # Standard internal format: assistant message with tool_calls array
+                args_str = (
+                    json.dumps(call.arguments)
+                    if isinstance(call.arguments, dict)
+                    else call.arguments
+                )
+                tool_call_obj = {
+                    "id": call_id,
+                    "type": "function",
+                    "function": {
+                        "name": call.name,
+                        "arguments": args_str,
+                    },
+                }
+                # Preserve thought_signature for Google Gemini 3 models
+                if call.thought_signature:
+                    tool_call_obj["thought_signature"] = call.thought_signature
+
+                updated_messages.append({
+                    "role": "assistant",
+                    "content": None,
+                    "tool_calls": [tool_call_obj],
+                })
 
                 updated_messages.append(self.create_tool_message(call, tool_response))
             except Exception as e:
@@ -802,16 +857,15 @@ class LLMHandler(ABC):
                 error_message = self.create_tool_message(error_call, error_response)
                 updated_messages.append(error_message)
 
-                call_parts = call.name.split("_")
-                if len(call_parts) >= 2:
-                    tool_id = call_parts[-1]  # Last part is tool ID (e.g., "1")
-                    action_name = "_".join(call_parts[:-1])
-                    tool_name = tools_dict.get(tool_id, {}).get("name", "unknown_tool")
-                    full_action_name = f"{action_name}_{tool_id}"
+                mapping = agent.tool_executor._name_to_tool
+                if call.name in mapping:
+                    resolved_tool_id, _ = mapping[call.name]
+                    tool_name = tools_dict.get(resolved_tool_id, {}).get(
+                        "name", "unknown_tool"
+                    )
                 else:
                     tool_name = "unknown_tool"
-                    action_name = call.name
-                    full_action_name = call.name
+                full_action_name = call.name
                 yield {
                     "type": "tool_call",
                     "data": {
@@ -823,7 +877,7 @@ class LLMHandler(ABC):
                         "status": "error",
                     },
                 }
-        return updated_messages
+        return updated_messages, pending_actions if pending_actions else None
 
     def handle_non_streaming(
         self, agent, response: Any, tools_dict: Dict, messages: List[Dict]
@@ -851,8 +905,22 @@ class LLMHandler(ABC):
                 try:
                     yield next(tool_handler_gen)
                 except StopIteration as e:
-                    messages = e.value
+                    messages, pending_actions = e.value
                     break
+
+            # If tools need approval or client execution, pause the loop
+            if pending_actions:
+                agent._pending_continuation = {
+                    "messages": messages,
+                    "pending_tool_calls": pending_actions,
+                    "tools_dict": tools_dict,
+                }
+                yield {
+                    "type": "tool_calls_pending",
+                    "data": {"pending_tool_calls": pending_actions},
+                }
+                return ""
+
             response = agent.llm.gen(
                 model=agent.model_id, messages=messages, tools=agent.tools
             )
@@ -913,10 +981,23 @@ class LLMHandler(ABC):
                     try:
                         yield next(tool_handler_gen)
                     except StopIteration as e:
-                        messages = e.value
+                        messages, pending_actions = e.value
                         break
                 tool_calls = {}
 
+                # If tools need approval or client execution, pause the loop
+                if pending_actions:
+                    agent._pending_continuation = {
+                        "messages": messages,
+                        "pending_tool_calls": pending_actions,
+                        "tools_dict": tools_dict,
+                    }
+                    yield {
+                        "type": "tool_calls_pending",
+                        "data": {"pending_tool_calls": pending_actions},
+                    }
+                    return
+
                 # Check if context limit was reached during tool execution
                 if hasattr(agent, 'context_limit_reached') and agent.context_limit_reached:
                     # Add system message warning about context limit
diff --git a/application/llm/handlers/google.py b/application/llm/handlers/google.py
index 0142922a..5c202153 100644
--- a/application/llm/handlers/google.py
+++ b/application/llm/handlers/google.py
@@ -67,18 +67,18 @@ class GoogleLLMHandler(LLMHandler):
             )
 
     def create_tool_message(self, tool_call: ToolCall, result: Any) -> Dict:
-        """Create Google-style tool message."""
+        """Create a tool result message in the standard internal format."""
+        import json as _json
 
+        content = (
+            _json.dumps(result)
+            if not isinstance(result, str)
+            else result
+        )
         return {
-            "role": "model",
-            "content": [
-                {
-                    "function_response": {
-                        "name": tool_call.name,
-                        "response": {"result": result},
-                    }
-                }
-            ],
+            "role": "tool",
+            "tool_call_id": tool_call.id,
+            "content": content,
         }
 
     def _iterate_stream(self, response: Any) -> Generator:
diff --git a/application/llm/handlers/openai.py b/application/llm/handlers/openai.py
index 99ddde4c..6c8431d7 100644
--- a/application/llm/handlers/openai.py
+++ b/application/llm/handlers/openai.py
@@ -37,18 +37,18 @@ class OpenAILLMHandler(LLMHandler):
         )
 
     def create_tool_message(self, tool_call: ToolCall, result: Any) -> Dict:
-        """Create OpenAI-style tool message."""
+        """Create a tool result message in the standard internal format."""
+        import json as _json
+
+        content = (
+            _json.dumps(result)
+            if not isinstance(result, str)
+            else result
+        )
         return {
             "role": "tool",
-            "content": [
-                {
-                    "function_response": {
-                        "name": tool_call.name,
-                        "response": {"result": result},
-                        "call_id": tool_call.id,
-                    }
-                }
-            ],
+            "tool_call_id": tool_call.id,
+            "content": content,
         }
 
     def _iterate_stream(self, response: Any) -> Generator:
diff --git a/application/llm/openai.py b/application/llm/openai.py
index 8bfc3cef..ee9438de 100644
--- a/application/llm/openai.py
+++ b/application/llm/openai.py
@@ -91,16 +91,52 @@ class OpenAILLM(BaseLLM):
 
             if role == "model":
                 role = "assistant"
+
+            # Standard format: assistant message with tool_calls (passthrough)
+            tool_calls = message.get("tool_calls")
+            if tool_calls and role == "assistant":
+                cleaned_tcs = []
+                for tc in tool_calls:
+                    func = tc.get("function", {})
+                    args = func.get("arguments", "{}")
+                    if isinstance(args, dict):
+                        args = json.dumps(self._remove_null_values(args))
+                    elif isinstance(args, str):
+                        try:
+                            parsed = json.loads(args)
+                            args = json.dumps(self._remove_null_values(parsed))
+                        except (json.JSONDecodeError, TypeError):
+                            pass
+                    cleaned_tcs.append({
+                        "id": tc.get("id", ""),
+                        "type": "function",
+                        "function": {"name": func.get("name", ""), "arguments": args},
+                    })
+                cleaned_messages.append({
+                    "role": "assistant",
+                    "content": None,
+                    "tool_calls": cleaned_tcs,
+                })
+                continue
+
+            # Standard format: tool message with tool_call_id (passthrough)
+            tool_call_id = message.get("tool_call_id")
+            if role == "tool" and tool_call_id is not None:
+                cleaned_messages.append({
+                    "role": "tool",
+                    "tool_call_id": tool_call_id,
+                    "content": content if isinstance(content, str) else json.dumps(content),
+                })
+                continue
+
             if role and content is not None:
                 if isinstance(content, str):
                     cleaned_messages.append({"role": role, "content": content})
                 elif isinstance(content, list):
-                    # Collect all content parts into a single message
                     content_parts = []
-
                     for item in content:
+                        # Legacy format support: function_call / function_response
                         if "function_call" in item:
-                            # Function calls need their own message
                             args = item["function_call"]["args"]
                             if isinstance(args, str):
                                 try:
@@ -116,28 +152,20 @@ class OpenAILLM(BaseLLM):
                                     "arguments": json.dumps(cleaned_args),
                                 },
                             }
-                            cleaned_messages.append(
-                                {
-                                    "role": "assistant",
-                                    "content": None,
-                                    "tool_calls": [tool_call],
-                                }
-                            )
+                            cleaned_messages.append({
+                                "role": "assistant",
+                                "content": None,
+                                "tool_calls": [tool_call],
+                            })
                         elif "function_response" in item:
-                            # Function responses need their own message
-                            cleaned_messages.append(
-                                {
-                                    "role": "tool",
-                                    "tool_call_id": item["function_response"][
-                                        "call_id"
-                                    ],
-                                    "content": json.dumps(
-                                        item["function_response"]["response"]["result"]
-                                    ),
-                                }
-                            )
+                            cleaned_messages.append({
+                                "role": "tool",
+                                "tool_call_id": item["function_response"]["call_id"],
+                                "content": json.dumps(
+                                    item["function_response"]["response"]["result"]
+                                ),
+                            })
                         elif isinstance(item, dict):
-                            # Collect content parts (text, images, files) into a single message
                             if "type" in item and item["type"] == "text" and "text" in item:
                                 content_parts.append(item)
                             elif "type" in item and item["type"] == "file" and "file" in item:
@@ -145,10 +173,7 @@ class OpenAILLM(BaseLLM):
                             elif "type" in item and item["type"] == "image_url" and "image_url" in item:
                                 content_parts.append(item)
                             elif "text" in item and "type" not in item:
-                                # Legacy format: {"text": "..."} without type
                                 content_parts.append({"type": "text", "text": item["text"]})
-
-                    # Add the collected content parts as a single message
                     if content_parts:
                         cleaned_messages.append({"role": role, "content": content_parts})
                 else:
diff --git a/frontend/src/api/endpoints.ts b/frontend/src/api/endpoints.ts
index 573b58a8..e0dc7742 100644
--- a/frontend/src/api/endpoints.ts
+++ b/frontend/src/api/endpoints.ts
@@ -77,6 +77,10 @@ const endpoints = {
     WORKFLOWS: '/api/workflows',
     WORKFLOW: (id: string) => `/api/workflows/${id}`,
   },
+  V1: {
+    CHAT_COMPLETIONS: '/v1/chat/completions',
+    MODELS: '/v1/models',
+  },
   CONVERSATION: {
     ANSWER: '/api/answer',
     ANSWER_STREAMING: '/stream',
diff --git a/frontend/src/api/services/conversationService.ts b/frontend/src/api/services/conversationService.ts
index 853a6863..a79370aa 100644
--- a/frontend/src/api/services/conversationService.ts
+++ b/frontend/src/api/services/conversationService.ts
@@ -54,6 +54,18 @@ const conversationService = {
     apiClient.get(endpoints.CONVERSATION.DELETE_ALL, token, {}),
   update: (data: any, token: string | null): Promise<any> =>
     apiClient.post(endpoints.CONVERSATION.UPDATE, data, token, {}),
+  chatCompletions: (
+    data: any,
+    agentApiKey: string,
+    signal: AbortSignal,
+  ): Promise<any> =>
+    apiClient.post(
+      endpoints.V1.CHAT_COMPLETIONS,
+      data,
+      null,
+      { Authorization: `Bearer ${agentApiKey}` },
+      signal,
+    ),
 };
 
 export default conversationService;
diff --git a/frontend/src/conversation/Conversation.tsx b/frontend/src/conversation/Conversation.tsx
index 66cb6830..179417be 100644
--- a/frontend/src/conversation/Conversation.tsx
+++ b/frontend/src/conversation/Conversation.tsx
@@ -22,6 +22,7 @@ import {
   resendQuery,
   selectQueries,
   selectStatus,
+  submitToolActions,
   updateQuery,
 } from './conversationSlice';
 import { selectCompletedAttachments } from '../upload/uploadSlice';
@@ -41,6 +42,17 @@ export default function Conversation() {
   const [lastQueryReturnedErr, setLastQueryReturnedErr] =
     useState<boolean>(false);
 
+  const handleToolAction = useCallback(
+    (callId: string, decision: 'approved' | 'denied', comment?: string) => {
+      dispatch(
+        submitToolActions({
+          toolActions: [{ call_id: callId, decision, comment }],
+        }),
+      );
+    },
+    [dispatch],
+  );
+
   const lastAutoOpenedArtifactId = useRef<string | null>(null);
   const didInitArtifactAutoOpen = useRef(false);
   const prevConversationId = useRef<string | null>(conversationId);
@@ -233,6 +245,7 @@ export default function Conversation() {
             status={status}
             showHeroOnEmpty={selectedAgent ? false : true}
             onOpenArtifact={handleOpenArtifact}
+            onToolAction={handleToolAction}
             isSplitView={isSplitArtifactOpen}
             headerContent={
               selectedAgent ? (
diff --git a/frontend/src/conversation/ConversationBubble.tsx b/frontend/src/conversation/ConversationBubble.tsx
index 4fd9f868..41f81a42 100644
--- a/frontend/src/conversation/ConversationBubble.tsx
+++ b/frontend/src/conversation/ConversationBubble.tsx
@@ -65,6 +65,11 @@ const ConversationBubble = forwardRef<
     ) => void;
     filesAttached?: { id: string; fileName: string }[];
     onOpenArtifact?: (artifact: { id: string; toolName: string }) => void;
+    onToolAction?: (
+      callId: string,
+      decision: 'approved' | 'denied',
+      comment?: string,
+    ) => void;
   }
 >(function ConversationBubble(
   {
@@ -83,6 +88,7 @@ const ConversationBubble = forwardRef<
     handleUpdatedQuestionSubmission,
     filesAttached,
     onOpenArtifact,
+    onToolAction,
   },
   ref,
 ) {
@@ -411,7 +417,7 @@ const ConversationBubble = forwardRef<
             )}
         {research && <ResearchProgress research={research} />}
         {toolCalls && toolCalls.length > 0 && (
-          <ToolCalls toolCalls={toolCalls} />
+          <ToolCalls toolCalls={toolCalls} onToolAction={onToolAction} />
         )}
         {!message && primaryArtifactCall?.artifact_id && onOpenArtifact && (
           <div className="my-2 ml-2 flex justify-start">
@@ -884,108 +890,263 @@ function AllSources(sources: AllSourcesProps) {
 }
 export default ConversationBubble;
 
-function ToolCalls({ toolCalls }: { toolCalls: ToolCallsType[] }) {
+function ToolCallApprovalBar({
+  toolCall,
+  onToolAction,
+}: {
+  toolCall: ToolCallsType;
+  onToolAction?: (
+    callId: string,
+    decision: 'approved' | 'denied',
+    comment?: string,
+  ) => void;
+}) {
+  const [expanded, setExpanded] = useState(false);
+  const [comment, setComment] = useState('');
+  const actionLabel = toolCall.action_name.substring(
+    0,
+    toolCall.action_name.lastIndexOf('_'),
+  );
+  const argPreview = JSON.stringify(toolCall.arguments);
+  const truncated =
+    argPreview.length > 60 ? argPreview.slice(0, 57) + '...' : argPreview;
+
+  return (
+    <div className="border-border bg-muted dark:bg-card mb-2 w-full overflow-hidden rounded-2xl border">
+      <div className="flex items-center gap-3 px-4 py-2.5">
+        <div className="flex min-w-0 flex-1 items-center gap-2">
+          <span className="text-sm font-semibold whitespace-nowrap">
+            {toolCall.tool_name}
+          </span>
+          <span className="text-muted-foreground text-xs">{actionLabel}</span>
+          <span
+            className="text-muted-foreground hidden min-w-0 truncate font-mono text-xs md:block"
+            title={argPreview}
+          >
+            {truncated}
+          </span>
+        </div>
+        <div className="flex items-center gap-2">
+          <button
+            className={`rounded-full px-4 py-1 text-xs font-medium transition-colors ${
+              comment
+                ? 'bg-muted text-muted-foreground cursor-default opacity-50'
+                : 'bg-primary hover:bg-primary/90 text-white'
+            }`}
+            onClick={() => {
+              if (!comment) onToolAction?.(toolCall.call_id, 'approved');
+            }}
+          >
+            Approve
+          </button>
+          <button
+            className={`rounded-full border px-4 py-1 text-xs font-medium transition-colors ${
+              comment
+                ? 'border-destructive bg-destructive/10 text-destructive font-semibold'
+                : 'hover:bg-accent text-muted-foreground'
+            }`}
+            onClick={() => {
+              if (expanded && comment) {
+                onToolAction?.(toolCall.call_id, 'denied', comment);
+              } else if (expanded) {
+                onToolAction?.(toolCall.call_id, 'denied');
+              } else {
+                setExpanded(true);
+              }
+            }}
+          >
+            Deny
+          </button>
+          <button
+            className="text-muted-foreground hover:text-foreground flex h-6 w-6 items-center justify-center rounded-full transition-colors"
+            onClick={() => setExpanded(!expanded)}
+            title="Details"
+          >
+            <img
+              src={ChevronDown}
+              alt="expand"
+              className={`h-3.5 w-3.5 transition-transform duration-200 dark:invert ${expanded ? 'rotate-180' : ''}`}
+            />
+          </button>
+        </div>
+      </div>
+      {expanded && (
+        <div className="border-border border-t px-4 py-3">
+          <p className="text-muted-foreground mb-1 text-xs font-medium">
+            Arguments
+          </p>
+          <pre className="bg-background dark:bg-background/50 mb-2 max-h-40 overflow-auto rounded-lg p-2 font-mono text-xs">
+            {JSON.stringify(toolCall.arguments, null, 2)}
+          </pre>
+          <input
+            type="text"
+            placeholder="Optional reason for denying..."
+            className="border-border bg-background w-full rounded-lg border px-3 py-1.5 text-sm"
+            value={comment}
+            onChange={(e) => setComment(e.target.value)}
+            onKeyDown={(e) => {
+              if (e.key === 'Enter' && comment) {
+                onToolAction?.(toolCall.call_id, 'denied', comment);
+              }
+            }}
+          />
+        </div>
+      )}
+    </div>
+  );
+}
+
+function ToolCalls({
+  toolCalls,
+  onToolAction,
+}: {
+  toolCalls: ToolCallsType[];
+  onToolAction?: (
+    callId: string,
+    decision: 'approved' | 'denied',
+    comment?: string,
+  ) => void;
+}) {
   const [isToolCallsOpen, setIsToolCallsOpen] = useState(false);
 
+  const awaitingCalls = toolCalls.filter(
+    (tc) => tc.status === 'awaiting_approval',
+  );
+  const resolvedCalls = toolCalls.filter(
+    (tc) => tc.status !== 'awaiting_approval',
+  );
+
   return (
     <div className="mb-4 flex w-full flex-col flex-wrap items-start self-start lg:flex-nowrap">
-      <div className="my-2 flex flex-row items-center justify-center gap-3">
-        <Avatar
-          className="h-[26px] w-[30px] text-xl"
-          avatar={
-            <img
-              src={Sources}
-              alt={'ToolCalls'}
-              className="h-full w-full object-fill"
+      {/* Approval bars — always visible, compact inline */}
+      {awaitingCalls.length > 0 && (
+        <div className="fade-in mt-4 ml-3 w-[90vw] md:w-[70vw] lg:w-full">
+          {awaitingCalls.map((tc) => (
+            <ToolCallApprovalBar
+              key={`approval-${tc.call_id}`}
+              toolCall={tc}
+              onToolAction={onToolAction}
             />
-          }
-        />
-        <button
-          className="flex flex-row items-center gap-2"
-          onClick={() => setIsToolCallsOpen(!isToolCallsOpen)}
-        >
-          <p className="text-base font-semibold">Tool Calls</p>
-          <img
-            src={ChevronDown}
-            alt="ChevronDown"
-            className={`h-4 w-4 transform transition-transform duration-200 dark:invert ${isToolCallsOpen ? 'rotate-180' : ''}`}
-          />
-        </button>
-      </div>
-      {isToolCallsOpen && (
-        <div className="fade-in mr-5 ml-3 w-[90vw] md:w-[70vw] lg:w-full">
-          <div className="grid grid-cols-1 gap-2">
-            {toolCalls.map((toolCall, index) => (
-              <Accordion
-                key={`tool-call-${index}`}
-                title={`${toolCall.tool_name}  -  ${toolCall.action_name.substring(0, toolCall.action_name.lastIndexOf('_'))}`}
-                className="bg-muted dark:bg-answer-bubble w-full rounded-4xl"
-                titleClassName="px-6 py-2 text-sm font-semibold"
-              >
-                <div className="flex flex-col gap-1">
-                  <div className="border-border flex flex-col rounded-2xl border">
-                    <p className="dark:bg-background flex flex-row items-center justify-between rounded-t-2xl bg-black/10 px-2 py-1 text-sm font-semibold wrap-break-word">
-                      <span style={{ fontFamily: 'IBMPlexMono-Medium' }}>
-                        Arguments
-                      </span>{' '}
-                      <CopyButton
-                        textToCopy={JSON.stringify(toolCall.arguments, null, 2)}
-                      />
-                    </p>
-                    <p className="dark:bg-card rounded-b-2xl p-2 font-mono text-sm wrap-break-word">
-                      <span
-                        className="dark:text-muted-foreground leading-[23px] text-black"
-                        style={{ fontFamily: 'IBMPlexMono-Medium' }}
-                      >
-                        {JSON.stringify(toolCall.arguments, null, 2)}
-                      </span>
-                    </p>
-                  </div>
-                  <div className="border-border flex flex-col rounded-2xl border">
-                    <p className="dark:bg-background flex flex-row items-center justify-between rounded-t-2xl bg-black/10 px-2 py-1 text-sm font-semibold wrap-break-word">
-                      <span style={{ fontFamily: 'IBMPlexMono-Medium' }}>
-                        Response
-                      </span>{' '}
-                      <CopyButton
-                        textToCopy={
-                          toolCall.status === 'error'
-                            ? toolCall.error || 'Unknown error'
-                            : JSON.stringify(toolCall.result, null, 2)
-                        }
-                      />
-                    </p>
-                    {toolCall.status === 'pending' && (
-                      <span className="dark:bg-card flex w-full items-center justify-center rounded-b-2xl p-2">
-                        <Spinner size="small" />
-                      </span>
-                    )}
-                    {toolCall.status === 'completed' && (
-                      <p className="dark:bg-card rounded-b-2xl p-2 font-mono text-sm wrap-break-word">
-                        <span
-                          className="dark:text-muted-foreground leading-[23px] text-black"
-                          style={{ fontFamily: 'IBMPlexMono-Medium' }}
-                        >
-                          {JSON.stringify(toolCall.result, null, 2)}
-                        </span>
-                      </p>
-                    )}
-                    {toolCall.status === 'error' && (
-                      <p className="dark:bg-card rounded-b-2xl p-2 font-mono text-sm wrap-break-word">
-                        <span
-                          className="leading-[23px] text-red-500 dark:text-red-400"
-                          style={{ fontFamily: 'IBMPlexMono-Medium' }}
-                        >
-                          {toolCall.error}
-                        </span>
-                      </p>
-                    )}
-                  </div>
-                </div>
-              </Accordion>
-            ))}
-          </div>
+          ))}
         </div>
       )}
+
+      {/* Regular tool calls accordion */}
+      {resolvedCalls.length > 0 && (
+        <>
+          <div className="my-2 flex flex-row items-center justify-center gap-3">
+            <Avatar
+              className="h-[26px] w-[30px] text-xl"
+              avatar={
+                <img
+                  src={Sources}
+                  alt={'ToolCalls'}
+                  className="h-full w-full object-fill"
+                />
+              }
+            />
+            <button
+              className="flex flex-row items-center gap-2"
+              onClick={() => setIsToolCallsOpen(!isToolCallsOpen)}
+            >
+              <p className="text-base font-semibold">Tool Calls</p>
+              <img
+                src={ChevronDown}
+                alt="ChevronDown"
+                className={`h-4 w-4 transform transition-transform duration-200 dark:invert ${isToolCallsOpen ? 'rotate-180' : ''}`}
+              />
+            </button>
+          </div>
+          {isToolCallsOpen && (
+            <div className="fade-in mr-5 ml-3 w-[90vw] md:w-[70vw] lg:w-full">
+              <div className="grid grid-cols-1 gap-2">
+                {resolvedCalls.map((toolCall, index) => (
+                  <Accordion
+                    key={`tool-call-${index}`}
+                    title={`${toolCall.tool_name}  -  ${toolCall.action_name.substring(0, toolCall.action_name.lastIndexOf('_'))}`}
+                    className="bg-muted dark:bg-answer-bubble w-full rounded-4xl"
+                    titleClassName="px-6 py-2 text-sm font-semibold"
+                  >
+                    <div className="flex flex-col gap-1">
+                      <div className="border-border flex flex-col rounded-2xl border">
+                        <p className="dark:bg-background flex flex-row items-center justify-between rounded-t-2xl bg-black/10 px-2 py-1 text-sm font-semibold wrap-break-word">
+                          <span style={{ fontFamily: 'IBMPlexMono-Medium' }}>
+                            Arguments
+                          </span>{' '}
+                          <CopyButton
+                            textToCopy={JSON.stringify(
+                              toolCall.arguments,
+                              null,
+                              2,
+                            )}
+                          />
+                        </p>
+                        <p className="dark:bg-card rounded-b-2xl p-2 font-mono text-sm wrap-break-word">
+                          <span
+                            className="dark:text-muted-foreground leading-[23px] text-black"
+                            style={{ fontFamily: 'IBMPlexMono-Medium' }}
+                          >
+                            {JSON.stringify(toolCall.arguments, null, 2)}
+                          </span>
+                        </p>
+                      </div>
+                      <div className="border-border flex flex-col rounded-2xl border">
+                        <p className="dark:bg-background flex flex-row items-center justify-between rounded-t-2xl bg-black/10 px-2 py-1 text-sm font-semibold wrap-break-word">
+                          <span style={{ fontFamily: 'IBMPlexMono-Medium' }}>
+                            Response
+                          </span>{' '}
+                          <CopyButton
+                            textToCopy={
+                              toolCall.status === 'error'
+                                ? toolCall.error || 'Unknown error'
+                                : JSON.stringify(toolCall.result, null, 2)
+                            }
+                          />
+                        </p>
+                        {toolCall.status === 'pending' && (
+                          <span className="dark:bg-card flex w-full items-center justify-center rounded-b-2xl p-2">
+                            <Spinner size="small" />
+                          </span>
+                        )}
+                        {toolCall.status === 'completed' && (
+                          <p className="dark:bg-card rounded-b-2xl p-2 font-mono text-sm wrap-break-word">
+                            <span
+                              className="dark:text-muted-foreground leading-[23px] text-black"
+                              style={{ fontFamily: 'IBMPlexMono-Medium' }}
+                            >
+                              {JSON.stringify(toolCall.result, null, 2)}
+                            </span>
+                          </p>
+                        )}
+                        {toolCall.status === 'error' && (
+                          <p className="dark:bg-card rounded-b-2xl p-2 font-mono text-sm wrap-break-word">
+                            <span
+                              className="text-destructive leading-[23px]"
+                              style={{ fontFamily: 'IBMPlexMono-Medium' }}
+                            >
+                              {toolCall.error}
+                            </span>
+                          </p>
+                        )}
+                        {toolCall.status === 'denied' && (
+                          <p className="dark:bg-card rounded-b-2xl p-2 font-mono text-sm wrap-break-word">
+                            <span
+                              className="text-muted-foreground leading-[23px]"
+                              style={{ fontFamily: 'IBMPlexMono-Medium' }}
+                            >
+                              Denied by user
+                            </span>
+                          </p>
+                        )}
+                      </div>
+                    </div>
+                  </Accordion>
+                ))}
+              </div>
+            </div>
+          )}
+        </>
+      )}
     </div>
   );
 }
diff --git a/frontend/src/conversation/ConversationMessages.tsx b/frontend/src/conversation/ConversationMessages.tsx
index dbfdeba7..7747e7b8 100644
--- a/frontend/src/conversation/ConversationMessages.tsx
+++ b/frontend/src/conversation/ConversationMessages.tsx
@@ -38,6 +38,11 @@ type ConversationMessagesProps = {
   showHeroOnEmpty?: boolean;
   headerContent?: ReactNode;
   onOpenArtifact?: (artifact: { id: string; toolName: string }) => void;
+  onToolAction?: (
+    callId: string,
+    decision: 'approved' | 'denied',
+    comment?: string,
+  ) => void;
   isSplitView?: boolean;
 };
 
@@ -50,6 +55,7 @@ export default function ConversationMessages({
   showHeroOnEmpty = true,
   headerContent,
   onOpenArtifact,
+  onToolAction,
   isSplitView = false,
 }: ConversationMessagesProps) {
   const [isDarkTheme] = useDarkTheme();
@@ -154,6 +160,7 @@ export default function ConversationMessages({
           toolCalls={query.tool_calls}
           research={query.research}
           onOpenArtifact={onOpenArtifact}
+          onToolAction={onToolAction}
           feedback={query.feedback}
           isStreaming={isCurrentlyStreaming}
           handleFeedback={
diff --git a/frontend/src/conversation/conversationHandlers.ts b/frontend/src/conversation/conversationHandlers.ts
index e55952fe..759635b6 100644
--- a/frontend/src/conversation/conversationHandlers.ts
+++ b/frontend/src/conversation/conversationHandlers.ts
@@ -188,6 +188,264 @@ export function handleFetchAnswerSteaming(
   });
 }
 
+export function handleSubmitToolActions(
+  conversationId: string,
+  toolActions: {
+    call_id: string;
+    decision?: 'approved' | 'denied';
+    comment?: string;
+    result?: Record<string, any>;
+  }[],
+  token: string | null,
+  signal: AbortSignal,
+  onEvent: (event: MessageEvent) => void,
+): Promise<Answer> {
+  const payload = {
+    conversation_id: conversationId,
+    tool_actions: toolActions,
+  };
+
+  return new Promise<Answer>((resolve, reject) => {
+    conversationService
+      .answerStream(payload, token, signal)
+      .then((response) => {
+        if (!response.body) throw Error('No response body');
+
+        let buffer = '';
+        const reader = response.body.getReader();
+        const decoder = new TextDecoder('utf-8');
+
+        const processStream = ({
+          done,
+          value,
+        }: ReadableStreamReadResult<Uint8Array>) => {
+          if (done) return;
+
+          const chunk = decoder.decode(value);
+          buffer += chunk;
+
+          const events = buffer.split('\n\n');
+          buffer = events.pop() ?? '';
+
+          for (const event of events) {
+            if (event.trim().startsWith('data:')) {
+              const dataLine: string = event
+                .split('\n')
+                .map((line: string) => line.replace(/^data:\s?/, ''))
+                .join('');
+
+              const messageEvent = new MessageEvent('message', {
+                data: dataLine.trim(),
+              });
+
+              onEvent(messageEvent);
+            }
+          }
+
+          reader.read().then(processStream).catch(reject);
+        };
+
+        reader.read().then(processStream).catch(reject);
+      })
+      .catch((error) => {
+        console.error('Tool actions submission failed:', error);
+        reject(error);
+      });
+  });
+}
+
+/**
+ * Stream a chat completion via the /v1/chat/completions endpoint.
+ *
+ * Translates the standard streaming format (choices[0].delta) back into
+ * the internal DocsGPT event shape so the existing Redux reducers can
+ * consume the events without any changes.
+ */
+export function handleV1ChatCompletionStreaming(
+  question: string,
+  signal: AbortSignal,
+  agentApiKey: string,
+  history: { prompt: string; response: string }[],
+  onEvent: (event: MessageEvent) => void,
+  tools?: any[],
+  attachments?: string[],
+): Promise<Answer> {
+  // Build messages array from history + current question
+  const messages: any[] = [];
+  for (const h of history) {
+    messages.push({ role: 'user', content: h.prompt });
+    messages.push({ role: 'assistant', content: h.response });
+  }
+  messages.push({ role: 'user', content: question });
+
+  const payload: any = {
+    messages,
+    stream: true,
+  };
+  if (tools && tools.length > 0) {
+    payload.tools = tools;
+  }
+  if (attachments && attachments.length > 0) {
+    payload.docsgpt = { attachments };
+  }
+
+  return new Promise<Answer>((resolve, reject) => {
+    conversationService
+      .chatCompletions(payload, agentApiKey, signal)
+      .then((response) => {
+        if (!response.body) throw Error('No response body');
+
+        let buffer = '';
+        const reader = response.body.getReader();
+        const decoder = new TextDecoder('utf-8');
+
+        const processStream = ({
+          done,
+          value,
+        }: ReadableStreamReadResult<Uint8Array>) => {
+          if (done) return;
+
+          const chunk = decoder.decode(value);
+          buffer += chunk;
+
+          const events = buffer.split('\n\n');
+          buffer = events.pop() ?? '';
+
+          for (const event of events) {
+            if (!event.trim().startsWith('data:')) continue;
+
+            const dataLine = event
+              .split('\n')
+              .map((line: string) => line.replace(/^data:\s?/, ''))
+              .join('');
+
+            const trimmed = dataLine.trim();
+
+            // Handle [DONE] sentinel
+            if (trimmed === '[DONE]') {
+              onEvent(
+                new MessageEvent('message', {
+                  data: JSON.stringify({ type: 'end' }),
+                }),
+              );
+              continue;
+            }
+
+            try {
+              const parsed = JSON.parse(trimmed);
+              // Translate standard format to DocsGPT internal events
+              const translated = translateV1ChunkToInternalEvents(parsed);
+              for (const evt of translated) {
+                onEvent(
+                  new MessageEvent('message', {
+                    data: JSON.stringify(evt),
+                  }),
+                );
+              }
+            } catch {
+              // Skip unparseable chunks
+            }
+          }
+
+          reader.read().then(processStream).catch(reject);
+        };
+
+        reader.read().then(processStream).catch(reject);
+      })
+      .catch((error) => {
+        console.error('V1 chat completion stream failed:', error);
+        reject(error);
+      });
+  });
+}
+
+/**
+ * Translate a single v1 streaming chunk to internal DocsGPT event(s).
+ *
+ * Standard format: {"choices": [{"delta": {"content": "chunk"}, ...}]}
+ * Extension format: {"docsgpt": {"type": "source", ...}}
+ */
+function translateV1ChunkToInternalEvents(
+  chunk: any,
+): { type: string; [key: string]: any }[] {
+  const events: { type: string; [key: string]: any }[] = [];
+
+  // DocsGPT extension chunks
+  if (chunk.docsgpt) {
+    const ext = chunk.docsgpt;
+    if (ext.type === 'source') {
+      events.push({ type: 'source', source: ext.sources });
+    } else if (ext.type === 'tool_call') {
+      events.push({ type: 'tool_call', data: ext.data });
+    } else if (ext.type === 'tool_calls_pending') {
+      events.push({
+        type: 'tool_calls_pending',
+        data: { pending_tool_calls: ext.pending_tool_calls },
+      });
+    } else if (ext.type === 'id') {
+      events.push({ type: 'id', id: ext.conversation_id });
+    }
+    return events;
+  }
+
+  // Error chunks
+  if (chunk.error) {
+    events.push({ type: 'error', error: chunk.error.message || 'Error' });
+    return events;
+  }
+
+  // Standard choices chunks
+  const choice = chunk.choices?.[0];
+  if (!choice) return events;
+
+  const delta = choice.delta || {};
+  const finishReason = choice.finish_reason;
+
+  if (delta.content) {
+    events.push({ type: 'answer', answer: delta.content });
+  }
+
+  if (delta.reasoning_content) {
+    events.push({ type: 'thought', thought: delta.reasoning_content });
+  }
+
+  if (delta.tool_calls) {
+    for (const tc of delta.tool_calls) {
+      let parsedArgs: Record<string, any> = {};
+      if (tc.function?.arguments) {
+        try {
+          parsedArgs = JSON.parse(tc.function.arguments);
+        } catch {
+          // Arguments may arrive as fragments during streaming;
+          // keep the raw string so downstream can accumulate it.
+          parsedArgs = { _raw: tc.function.arguments };
+        }
+      }
+      events.push({
+        type: 'tool_call',
+        data: {
+          call_id: tc.id,
+          action_name: tc.function?.name || '',
+          tool_name: tc.function?.name || '',
+          arguments: parsedArgs,
+          status: 'requires_client_execution',
+        },
+      });
+    }
+  }
+
+  if (finishReason === 'stop') {
+    events.push({ type: 'end' });
+  } else if (finishReason === 'tool_calls') {
+    events.push({
+      type: 'tool_calls_pending',
+      data: { pending_tool_calls: [] },
+    });
+  }
+
+  return events;
+}
+
 export function handleSearch(
   question: string,
   token: string | null,
diff --git a/frontend/src/conversation/conversationModels.ts b/frontend/src/conversation/conversationModels.ts
index cfa4ec8e..61bbbb5d 100644
--- a/frontend/src/conversation/conversationModels.ts
+++ b/frontend/src/conversation/conversationModels.ts
@@ -1,7 +1,7 @@
 import { ToolCallsType } from './types';
 
 export type MESSAGE_TYPE = 'QUESTION' | 'ANSWER' | 'ERROR';
-export type Status = 'idle' | 'loading' | 'failed';
+export type Status = 'idle' | 'loading' | 'failed' | 'awaiting_tool_actions';
 export type FEEDBACK = 'LIKE' | 'DISLIKE' | null;
 
 export interface Message {
diff --git a/frontend/src/conversation/conversationSlice.ts b/frontend/src/conversation/conversationSlice.ts
index bc234de8..6181e1da 100644
--- a/frontend/src/conversation/conversationSlice.ts
+++ b/frontend/src/conversation/conversationSlice.ts
@@ -10,6 +10,8 @@ import {
 import {
   handleFetchAnswer,
   handleFetchAnswerSteaming,
+  handleSubmitToolActions,
+  handleV1ChatCompletionStreaming,
 } from './conversationHandlers';
 import {
   Answer,
@@ -27,6 +29,7 @@ const initialState: ConversationState = {
 };
 
 const API_STREAMING = import.meta.env.VITE_API_STREAMING === 'true';
+const USE_V1_API = import.meta.env.VITE_USE_V1_API === 'true';
 
 let abortController: AbortController | null = null;
 export function handleAbort() {
@@ -60,7 +63,102 @@ export const fetchAnswer = createAsyncThunk<
     state.preference.selectedModel?.id;
 
   if (state.preference) {
-    if (API_STREAMING) {
+    const agentKey = state.preference.selectedAgent?.key;
+    if (USE_V1_API && agentKey) {
+      // Build history from prior queries for v1 format
+      const v1History = state.conversation.queries
+        .filter((q) => q.response)
+        .map((q) => ({ prompt: q.prompt, response: q.response || '' }));
+
+      await handleV1ChatCompletionStreaming(
+        question,
+        signal,
+        agentKey,
+        v1History,
+        (event) => {
+          const data = JSON.parse(event.data);
+          const targetIndex = indx ?? state.conversation.queries.length - 1;
+
+          if (currentConversationId === state.conversation.conversationId) {
+            if (data.type === 'end') {
+              dispatch(conversationSlice.actions.setStatus('idle'));
+              getConversations(state.preference.token)
+                .then((fetchedConversations) => {
+                  dispatch(setConversations(fetchedConversations));
+                })
+                .catch((error) => {
+                  console.error('Failed to fetch conversations: ', error);
+                });
+              if (!isSourceUpdated) {
+                dispatch(
+                  updateStreamingSource({
+                    conversationId: currentConversationId,
+                    index: targetIndex,
+                    query: { sources: [] },
+                  }),
+                );
+              }
+            } else if (data.type === 'id') {
+              const currentState = getState() as RootState;
+              if (currentState.conversation.conversationId === null) {
+                dispatch(
+                  updateConversationId({
+                    query: { conversationId: data.id },
+                  }),
+                );
+              }
+            } else if (data.type === 'thought') {
+              dispatch(
+                updateThought({
+                  conversationId: currentConversationId,
+                  index: targetIndex,
+                  query: { thought: data.thought },
+                }),
+              );
+            } else if (data.type === 'source') {
+              isSourceUpdated = true;
+              dispatch(
+                updateStreamingSource({
+                  conversationId: currentConversationId,
+                  index: targetIndex,
+                  query: { sources: data.source ?? [] },
+                }),
+              );
+            } else if (data.type === 'tool_call') {
+              dispatch(
+                updateToolCall({
+                  index: targetIndex,
+                  tool_call: data.data as ToolCallsType,
+                }),
+              );
+            } else if (data.type === 'tool_calls_pending') {
+              dispatch(
+                conversationSlice.actions.setStatus('awaiting_tool_actions'),
+              );
+            } else if (data.type === 'error') {
+              dispatch(conversationSlice.actions.setStatus('failed'));
+              dispatch(
+                conversationSlice.actions.raiseError({
+                  conversationId: currentConversationId,
+                  index: targetIndex,
+                  message: data.error,
+                }),
+              );
+            } else {
+              dispatch(
+                updateStreamingQuery({
+                  conversationId: currentConversationId,
+                  index: targetIndex,
+                  query: { response: data.answer },
+                }),
+              );
+            }
+          }
+        },
+        undefined,
+        attachmentIds.length > 0 ? attachmentIds : undefined,
+      );
+    } else if (API_STREAMING) {
       await handleFetchAnswerSteaming(
         question,
         signal,
@@ -138,6 +236,10 @@ export const fetchAnswer = createAsyncThunk<
                   tool_call: data.data as ToolCallsType,
                 }),
               );
+            } else if (data.type === 'tool_calls_pending') {
+              dispatch(
+                conversationSlice.actions.setStatus('awaiting_tool_actions'),
+              );
             } else if (data.type === 'research_plan') {
               dispatch(
                 updateResearchPlan({
@@ -260,6 +362,94 @@ export const fetchAnswer = createAsyncThunk<
   };
 });
 
+export const submitToolActions = createAsyncThunk<
+  void,
+  {
+    toolActions: {
+      call_id: string;
+      decision?: 'approved' | 'denied';
+      comment?: string;
+      result?: Record<string, any>;
+    }[];
+  }
+>('submitToolActions', async ({ toolActions }, { dispatch, getState }) => {
+  if (abortController) abortController.abort();
+  abortController = new AbortController();
+  const { signal } = abortController;
+
+  const state = getState() as RootState;
+  const conversationId = state.conversation.conversationId;
+  if (!conversationId) return;
+
+  dispatch(conversationSlice.actions.setStatus('loading'));
+
+  await handleSubmitToolActions(
+    conversationId,
+    toolActions,
+    state.preference.token,
+    signal,
+    (event) => {
+      const data = JSON.parse(event.data);
+      const targetIndex = state.conversation.queries.length - 1;
+
+      if (data.type === 'end') {
+        dispatch(conversationSlice.actions.setStatus('idle'));
+        getConversations(state.preference.token)
+          .then((fetchedConversations) => {
+            dispatch(setConversations(fetchedConversations));
+          })
+          .catch((error) => {
+            console.error('Failed to fetch conversations: ', error);
+          });
+      } else if (data.type === 'id') {
+        // conversation ID already set
+      } else if (data.type === 'thought') {
+        dispatch(
+          updateThought({
+            conversationId,
+            index: targetIndex,
+            query: { thought: data.thought },
+          }),
+        );
+      } else if (data.type === 'source') {
+        dispatch(
+          updateStreamingSource({
+            conversationId,
+            index: targetIndex,
+            query: { sources: data.source ?? [] },
+          }),
+        );
+      } else if (data.type === 'tool_call') {
+        dispatch(
+          updateToolCall({
+            index: targetIndex,
+            tool_call: data.data as ToolCallsType,
+          }),
+        );
+      } else if (data.type === 'tool_calls_pending') {
+        dispatch(conversationSlice.actions.setStatus('awaiting_tool_actions'));
+      } else if (data.type === 'error') {
+        dispatch(conversationSlice.actions.setStatus('failed'));
+        dispatch(
+          conversationSlice.actions.raiseError({
+            conversationId,
+            index: targetIndex,
+            message: data.error,
+          }),
+        );
+      } else if (data.type === 'answer') {
+        dispatch(
+          updateStreamingQuery({
+            conversationId,
+            index: targetIndex,
+            query: { response: data.answer },
+          }),
+        );
+      }
+    },
+  );
+});
+
 export const conversationSlice = createSlice({
   name: 'conversation',
   initialState,
diff --git a/frontend/src/conversation/types/index.ts b/frontend/src/conversation/types/index.ts
index c416bde6..fb0c948f 100644
--- a/frontend/src/conversation/types/index.ts
+++ b/frontend/src/conversation/types/index.ts
@@ -5,6 +5,12 @@ export type ToolCallsType = {
   arguments: Record<string, any>;
   result?: Record<string, any>;
   error?: string;
-  status?: 'pending' | 'completed' | 'error';
+  status?:
+    | 'pending'
+    | 'completed'
+    | 'error'
+    | 'awaiting_approval'
+    | 'denied'
+    | 'requires_client_execution';
   artifact_id?: string;
 };
diff --git a/frontend/src/settings/ToolConfig.tsx b/frontend/src/settings/ToolConfig.tsx
index 8c8faff6..5ae2a208 100644
--- a/frontend/src/settings/ToolConfig.tsx
+++ b/frontend/src/settings/ToolConfig.tsx
@@ -487,9 +487,33 @@ export default function ToolConfig({
                           )}
                         </div>
                         <div
-                          className="flex items-center gap-2"
+                          className="flex items-center gap-3"
                           onClick={(e) => e.stopPropagation()}
                         >
+                          <div className="flex items-center gap-1">
+                            <span className="text-xs text-gray-500 dark:text-gray-400">
+                              {t('settings.tools.requireApproval', 'Approval')}
+                            </span>
+                            <ToggleSwitch
+                              checked={action.require_approval ?? false}
+                              onChange={(checked) => {
+                                setTool({
+                                  ...tool,
+                                  actions: tool.actions.map((act, index) => {
+                                    if (index === originalIndex) {
+                                      return {
+                                        ...act,
+                                        require_approval: checked,
+                                      };
+                                    }
+                                    return act;
+                                  }),
+                                });
+                              }}
+                              size="small"
+                              id={`approvalToggle-${originalIndex}`}
+                            />
+                          </div>
                           <ToggleSwitch
                             checked={action.active}
                             onChange={(checked) => {
@@ -926,6 +950,35 @@ function APIToolConfig({
                       className="h-4 w-4 opacity-40 transition-opacity hover:opacity-100"
                     />
                   </button>
+                  <div className="flex items-center gap-1">
+                    <span className="text-xs text-gray-500 dark:text-gray-400">
+                      {t('settings.tools.requireApproval', 'Approval')}
+                    </span>
+                    <ToggleSwitch
+                      checked={action.require_approval ?? false}
+                      onChange={() => {
+                        setApiTool((prevApiTool) => {
+                          const updatedActions = {
+                            ...prevApiTool.config.actions,
+                          };
+                          updatedActions[actionName] = {
+                            ...updatedActions[actionName],
+                            require_approval:
+                              !updatedActions[actionName].require_approval,
+                          };
+                          return {
+                            ...prevApiTool,
+                            config: {
+                              ...prevApiTool.config,
+                              actions: updatedActions,
+                            },
+                          };
+                        });
+                      }}
+                      size="small"
+                      id={`approvalToggle-${actionIndex}`}
+                    />
+                  </div>
                   <ToggleSwitch
                     checked={action.active}
                     onChange={() => handleActionToggle(actionName)}
diff --git a/frontend/src/settings/types/index.ts b/frontend/src/settings/types/index.ts
index ed1b9122..d692a960 100644
--- a/frontend/src/settings/types/index.ts
+++ b/frontend/src/settings/types/index.ts
@@ -69,6 +69,7 @@ export type UserToolType = {
       type: string;
     };
     active: boolean;
+    require_approval?: boolean;
   }[];
 };
 
@@ -81,6 +82,7 @@ export type APIActionType = {
   headers: ParameterGroupType;
   body: ParameterGroupType;
   active: boolean;
+  require_approval?: boolean;
   body_content_type?:
     | 'application/json'
     | 'application/x-www-form-urlencoded'
diff --git a/tests/agents/test_base_agent.py b/tests/agents/test_base_agent.py
index 05e831f0..f65c7b0d 100644
--- a/tests/agents/test_base_agent.py
+++ b/tests/agents/test_base_agent.py
@@ -341,7 +341,7 @@ class TestBaseAgentTools:
 
         assert len(agent.tools) == 1
         assert agent.tools[0]["type"] == "function"
-        assert agent.tools[0]["function"]["name"] == "get_data_1"
+        assert agent.tools[0]["function"]["name"] == "get_data"
 
     def test_prepare_tools_with_regular_tool(
         self, agent_base_params, mock_llm_creator, mock_llm_handler_creator
@@ -365,7 +365,7 @@ class TestBaseAgentTools:
         agent._prepare_tools(tools_dict)
 
         assert len(agent.tools) == 1
-        assert agent.tools[0]["function"]["name"] == "action1_1"
+        assert agent.tools[0]["function"]["name"] == "action1"
 
     def test_prepare_tools_filters_inactive_actions(
         self, agent_base_params, mock_llm_creator, mock_llm_handler_creator
@@ -395,7 +395,7 @@ class TestBaseAgentTools:
         agent._prepare_tools(tools_dict)
 
         assert len(agent.tools) == 1
-        assert agent.tools[0]["function"]["name"] == "active_action_1"
+        assert agent.tools[0]["function"]["name"] == "active_action"
 
 
 @pytest.mark.unit
diff --git a/tests/agents/test_tool_action_parser.py b/tests/agents/test_tool_action_parser.py
index 840d070c..61e9e962 100644
--- a/tests/agents/test_tool_action_parser.py
+++ b/tests/agents/test_tool_action_parser.py
@@ -202,3 +202,69 @@ class TestToolActionParser:
         assert action_name == "create_record"
         assert call_args["data"]["name"] == "John"
         assert call_args["data"]["age"] == 30
+
+
+@pytest.mark.unit
+class TestToolActionParserWithMapping:
+    """Tests for the mapping-based lookup path."""
+
+    def test_openai_mapping_resolves_clean_name(self):
+        mapping = {"get_weather": ("ct0", "get_weather")}
+        parser = ToolActionParser("OpenAILLM", name_mapping=mapping)
+
+        call = Mock()
+        call.name = "get_weather"
+        call.arguments = '{"city": "SF"}'
+
+        tool_id, action_name, call_args = parser.parse_args(call)
+        assert tool_id == "ct0"
+        assert action_name == "get_weather"
+        assert call_args == {"city": "SF"}
+
+    def test_openai_mapping_resolves_numbered_suffix(self):
+        mapping = {"search_1": ("t1", "search"), "search_2": ("t2", "search")}
+        parser = ToolActionParser("OpenAILLM", name_mapping=mapping)
+
+        call = Mock()
+        call.name = "search_1"
+        call.arguments = '{"q": "test"}'
+
+        tool_id, action_name, call_args = parser.parse_args(call)
+        assert tool_id == "t1"
+        assert action_name == "search"
+
+    def test_google_mapping_resolves(self):
+        mapping = {"get_weather": ("ct0", "get_weather")}
+        parser = ToolActionParser("GoogleLLM", name_mapping=mapping)
+
+        call = Mock()
+        call.name = "get_weather"
+        call.arguments = {"city": "SF"}
+
+        tool_id, action_name, call_args = parser.parse_args(call)
+        assert tool_id == "ct0"
+        assert action_name == "get_weather"
+
+    def test_fallback_to_split_when_not_in_mapping(self):
+        mapping = {"get_weather": ("ct0", "get_weather")}
+        parser = ToolActionParser("OpenAILLM", name_mapping=mapping)
+
+        call = Mock()
+        call.name = "unknown_action_99"
+        call.arguments = "{}"
+
+        tool_id, action_name, call_args = parser.parse_args(call)
+        # Falls back to legacy split
+        assert tool_id == "99"
+        assert action_name == "unknown_action"
+
+    def test_no_mapping_uses_legacy_split(self):
+        parser = ToolActionParser("OpenAILLM", name_mapping=None)
+
+        call = Mock()
+        call.name = "action_123"
+        call.arguments = '{"k": "v"}'
+
+        tool_id, action_name, call_args = parser.parse_args(call)
+        assert tool_id == "123"
+        assert action_name == "action"
diff --git a/tests/agents/test_tool_executor.py b/tests/agents/test_tool_executor.py
index 96be815c..02b6ce0f 100644
--- a/tests/agents/test_tool_executor.py
+++ b/tests/agents/test_tool_executor.py
@@ -80,7 +80,7 @@ class TestToolExecutorPrepare:
         result = executor.prepare_tools_for_llm(tools_dict)
         assert len(result) == 1
         assert result[0]["type"] == "function"
-        assert result[0]["function"]["name"] == "do_thing_t1"
+        assert result[0]["function"]["name"] == "do_thing"
         assert "query" in result[0]["function"]["parameters"]["properties"]
 
     def test_prepare_tools_skips_inactive_actions(self):
@@ -97,7 +97,96 @@ class TestToolExecutorPrepare:
 
         result = executor.prepare_tools_for_llm(tools_dict)
         assert len(result) == 1
-        assert result[0]["function"]["name"] == "active_one_t1"
+        assert result[0]["function"]["name"] == "active_one"
+
+    def test_prepare_tools_builds_name_mapping(self):
+        executor = ToolExecutor()
+        tools_dict = {
+            "t1": {
+                "name": "test_tool",
+                "actions": [
+                    {"name": "do_thing", "description": "D", "active": True, "parameters": {"properties": {}}},
+                ],
+            }
+        }
+        executor.prepare_tools_for_llm(tools_dict)
+        assert executor._name_to_tool["do_thing"] == ("t1", "do_thing")
+        assert executor._tool_to_name[("t1", "do_thing")] == "do_thing"
+
+    def test_prepare_tools_duplicate_names_get_numbered_suffixes(self):
+        executor = ToolExecutor()
+        tools_dict = {
+            "t1": {
+                "name": "tool_a",
+                "actions": [
+                    {"name": "search", "description": "D", "active": True, "parameters": {"properties": {}}},
+                ],
+            },
+            "t2": {
+                "name": "tool_b",
+                "actions": [
+                    {"name": "search", "description": "D", "active": True, "parameters": {"properties": {}}},
+                ],
+            },
+        }
+        result = executor.prepare_tools_for_llm(tools_dict)
+        names = [r["function"]["name"] for r in result]
+        assert "search_1" in names
+        assert "search_2" in names
+        assert executor._name_to_tool["search_1"][1] == "search"
+        assert executor._name_to_tool["search_2"][1] == "search"
+
+    def test_prepare_tools_unique_name_no_suffix(self):
+        executor = ToolExecutor()
+        tools_dict = {
+            "t1": {
+                "name": "tool_a",
+                "actions": [
+                    {"name": "get_weather", "description": "D", "active": True, "parameters": {"properties": {}}},
+                ],
+            },
+            "t2": {
+                "name": "tool_b",
+                "actions": [
+                    {"name": "send_email", "description": "D", "active": True, "parameters": {"properties": {}}},
+                ],
+            },
+        }
+        result = executor.prepare_tools_for_llm(tools_dict)
+        names = [r["function"]["name"] for r in result]
+        assert "get_weather" in names
+        assert "send_email" in names
+
+    def test_prepare_tools_suffix_skips_collision_with_unique_name(self):
+        """If action 'foo_1' exists as unique and 'foo' is duplicated, skip '_1'."""
+        executor = ToolExecutor()
+        tools_dict = {
+            "t1": {
+                "name": "tool_a",
+                "actions": [
+                    {"name": "foo", "description": "D", "active": True, "parameters": {"properties": {}}},
+                ],
+            },
+            "t2": {
+                "name": "tool_b",
+                "actions": [
+                    {"name": "foo", "description": "D", "active": True, "parameters": {"properties": {}}},
+                ],
+            },
+            "t3": {
+                "name": "tool_c",
+                "actions": [
+                    {"name": "foo_1", "description": "D", "active": True, "parameters": {"properties": {}}},
+                ],
+            },
+        }
+        result = executor.prepare_tools_for_llm(tools_dict)
+        names = [r["function"]["name"] for r in result]
+        # foo_1 is taken by the unique action, so duplicates skip to _2 and _3
+        assert "foo_1" in names  # The unique action
+        assert "foo_2" in names
+        assert "foo_3" in names
+        assert executor._name_to_tool["foo_1"] == ("t3", "foo_1")
 
     def test_build_tool_parameters_filters_non_llm_fields(self):
         executor = ToolExecutor()
@@ -128,6 +217,68 @@ class TestToolExecutorPrepare:
         assert "value" not in result["properties"]["query"]
 
 
+@pytest.mark.unit
+class TestCheckPause:
+
+    def _make_call(self, name="action_toolid", call_id="c1", arguments="{}"):
+        call = Mock()
+        call.name = name
+        call.id = call_id
+        call.arguments = arguments
+        call.thought_signature = None
+        return call
+
+    def test_client_side_tool_returns_llm_name(self):
+        """check_pause returns the clean LLM-facing name and llm_name field."""
+        executor = ToolExecutor()
+
+        tools_dict = {
+            "ct0": {
+                "name": "write_file",
+                "client_side": True,
+                "actions": [
+                    {"name": "write_file", "description": "Write a file", "active": True, "parameters": {}},
+                ],
+            }
+        }
+
+        # Prepare tools so the mapping is built
+        executor.prepare_tools_for_llm(tools_dict)
+
+        call = self._make_call(name="write_file")
+        result = executor.check_pause(tools_dict, call, "OpenAILLM")
+
+        assert result is not None
+        assert result["name"] == "write_file"
+        assert result["llm_name"] == "write_file"
+        assert result["action_name"] == "write_file"
+        assert result["tool_id"] == "ct0"
+
+    def test_approval_required_returns_llm_name(self):
+        """check_pause for approval-required tools returns clean LLM name."""
+        executor = ToolExecutor()
+
+        tools_dict = {
+            "t1": {
+                "name": "dangerous_tool",
+                "actions": [
+                    {"name": "delete_all", "description": "Deletes everything", "active": True,
+                     "require_approval": True, "parameters": {}},
+                ],
+            }
+        }
+
+        executor.prepare_tools_for_llm(tools_dict)
+
+        call = self._make_call(name="delete_all")
+        result = executor.check_pause(tools_dict, call, "OpenAILLM")
+
+        assert result is not None
+        assert result["name"] == "delete_all"
+        assert result["llm_name"] == "delete_all"
+        assert result["action_name"] == "delete_all"
+
+
 @pytest.mark.unit
 class TestToolExecutorExecute:
 
@@ -143,7 +294,7 @@ class TestToolExecutorExecute:
 
         monkeypatch.setattr(
             "application.agents.tool_executor.ToolActionParser",
-            lambda _cls: Mock(parse_args=Mock(return_value=(None, None, {}))),
+            lambda _cls, **kw: Mock(parse_args=Mock(return_value=(None, None, {}))),
         )
 
         call = self._make_call(name="bad")
@@ -167,7 +318,7 @@ class TestToolExecutorExecute:
 
         monkeypatch.setattr(
             "application.agents.tool_executor.ToolActionParser",
-            lambda _cls: Mock(parse_args=Mock(return_value=("missing_id", "action", {}))),
+            lambda _cls, **kw: Mock(parse_args=Mock(return_value=("missing_id", "action", {}))),
         )
 
         call = self._make_call()
@@ -190,7 +341,7 @@ class TestToolExecutorExecute:
 
         monkeypatch.setattr(
             "application.agents.tool_executor.ToolActionParser",
-            lambda _cls: Mock(parse_args=Mock(return_value=("t1", "test_action", {"param1": "val"}))),
+            lambda _cls, **kw: Mock(parse_args=Mock(return_value=("t1", "test_action", {"param1": "val"}))),
         )
 
         tools_dict = {
@@ -244,7 +395,7 @@ class TestToolExecutorExecute:
 
         monkeypatch.setattr(
             "application.agents.tool_executor.ToolActionParser",
-            lambda _cls: Mock(parse_args=Mock(return_value=("t1", "test_action", {}))),
+            lambda _cls, **kw: Mock(parse_args=Mock(return_value=("t1", "test_action", {}))),
         )
 
         tools_dict = {
@@ -284,7 +435,7 @@ class TestToolExecutorExecute:
 
         monkeypatch.setattr(
             "application.agents.tool_executor.ToolActionParser",
-            lambda _cls: Mock(
+            lambda _cls, **kw: Mock(
                 parse_args=Mock(return_value=("t1", "get_users", {"body_param": "val"}))
             ),
         )
@@ -331,7 +482,7 @@ class TestToolExecutorExecute:
 
         monkeypatch.setattr(
             "application.agents.tool_executor.ToolActionParser",
-            lambda _cls: Mock(
+            lambda _cls, **kw: Mock(
                 parse_args=Mock(return_value=("t1", "act", {}))
             ),
         )
@@ -376,7 +527,7 @@ class TestToolExecutorExecute:
 
         monkeypatch.setattr(
             "application.agents.tool_executor.ToolActionParser",
-            lambda _cls: Mock(
+            lambda _cls, **kw: Mock(
                 parse_args=Mock(return_value=("t1", "act", {"q": "v"}))
             ),
         )
diff --git a/tests/api/answer/routes/test_answer.py b/tests/api/answer/routes/test_answer.py
index 53f2525d..4e4b7a8b 100644
--- a/tests/api/answer/routes/test_answer.py
+++ b/tests/api/answer/routes/test_answer.py
@@ -73,7 +73,7 @@ class TestAnswerResourcePost:
                 ),
             ), patch(
                 "application.api.answer.routes.answer.AnswerResource.process_response_stream",
-                return_value=(conv_id, "Hello", [], [], "", None),
+                return_value={"conversation_id": conv_id, "answer": "Hello", "sources": [], "tool_calls": [], "thought": "", "error": None},
             ):
                 resp = answer_client.post(
                     "/api/answer",
@@ -129,7 +129,7 @@ class TestAnswerResourcePost:
             return_value=iter([]),
         ), patch(
             "application.api.answer.routes.answer.AnswerResource.process_response_stream",
-            return_value=(None, None, None, None, None, "Stream error"),
+            return_value={"conversation_id": None, "answer": None, "sources": None, "tool_calls": None, "thought": None, "error": "Stream error"},
         ):
             resp = answer_client.post(
                 "/api/answer",
@@ -173,15 +173,7 @@ class TestAnswerResourcePost:
             return_value=iter([]),
         ), patch(
             "application.api.answer.routes.answer.AnswerResource.process_response_stream",
-            return_value=(
-                conv_id,
-                '{"key": "val"}',
-                [],
-                [],
-                "",
-                None,
-                {"structured": True, "schema": {"type": "object"}},
-            ),
+            return_value={"conversation_id": conv_id, "answer": '{"key": "val"}', "sources": [], "tool_calls": [], "thought": "", "error": None, "extra": {"structured": True, "schema": {"type": "object"}}},
         ):
             resp = answer_client.post(
                 "/api/answer",
@@ -208,14 +200,7 @@ class TestAnswerResourcePost:
             return_value=iter([]),
         ), patch(
             "application.api.answer.routes.answer.AnswerResource.process_response_stream",
-            return_value=(
-                conv_id,
-                "answer text",
-                [{"title": "src"}],
-                [{"tool": "t"}],
-                "thinking...",
-                None,
-            ),
+            return_value={"conversation_id": conv_id, "answer": "answer text", "sources": [{"title": "src"}], "tool_calls": [{"tool": "t"}], "thought": "thinking...", "error": None},
         ):
             resp = answer_client.post(
                 "/api/answer",
diff --git a/tests/api/answer/routes/test_base.py b/tests/api/answer/routes/test_base.py
index eee2ab31..95b7e423 100644
--- a/tests/api/answer/routes/test_base.py
+++ b/tests/api/answer/routes/test_base.py
@@ -481,10 +481,10 @@ class TestProcessResponseStream:
 
             result = resource.process_response_stream(iter(stream))
 
-            assert result[0] == conv_id
-            assert result[1] == "Hello world"
-            assert result[2] == [{"title": "doc1"}]
-            assert result[5] is None
+            assert result["conversation_id"] == conv_id
+            assert result["answer"] == "Hello world"
+            assert result["sources"] == [{"title": "doc1"}]
+            assert result["error"] is None
 
     def test_handles_stream_error(self, mock_mongo_db, flask_app):
         import json
@@ -500,10 +500,8 @@ class TestProcessResponseStream:
 
             result = resource.process_response_stream(iter(stream))
 
-            assert len(result) == 6
-            assert result[0] is None
-            assert result[4] == "Test error"
-            assert result[5] is None
+            assert result["conversation_id"] is None
+            assert result["error"] == "Test error"
 
     def test_handles_malformed_stream_data(self, mock_mongo_db, flask_app):
         from application.api.answer.routes.base import BaseAnswerResource
diff --git a/tests/api/answer/services/compression/test_message_builder.py b/tests/api/answer/services/compression/test_message_builder.py
index 9cb681d4..99a0e1c2 100644
--- a/tests/api/answer/services/compression/test_message_builder.py
+++ b/tests/api/answer/services/compression/test_message_builder.py
@@ -79,9 +79,10 @@ class TestBuildFromCompressedContext:
         # system + user + assistant + tool_call_assistant + tool_response = 5
         assert len(messages) == 5
         assert messages[3]["role"] == "assistant"
-        assert "function_call" in messages[3]["content"][0]
+        assert messages[3].get("tool_calls") is not None
+        assert messages[3]["tool_calls"][0]["function"]["name"] == "search"
         assert messages[4]["role"] == "tool"
-        assert "function_response" in messages[4]["content"][0]
+        assert messages[4].get("tool_call_id") == "call-1"
 
     def test_tool_calls_not_included_by_default(self):
         queries = [
@@ -127,8 +128,8 @@ class TestBuildFromCompressedContext:
             recent_queries=queries,
             include_tool_calls=True,
         )
-        tool_msg = messages[3]["content"][0]
-        call_id = tool_msg["function_call"]["call_id"]
+        assistant_msg = messages[3]
+        call_id = assistant_msg["tool_calls"][0]["id"]
         assert call_id is not None
         assert len(call_id) > 0
 
diff --git a/tests/api/answer/test_base_routes.py b/tests/api/answer/test_base_routes.py
index dc6a19a5..d47076ad 100644
--- a/tests/api/answer/test_base_routes.py
+++ b/tests/api/answer/test_base_routes.py
@@ -295,10 +295,8 @@ class TestProcessResponseStreamExtended:
                 f'data: {json.dumps({"type": "end"})}\n\n',
             ]
             result = resource.process_response_stream(iter(stream))
-            assert result[1] == "{}"
-            # Structured output adds extra tuple element
-            assert len(result) == 7
-            assert result[6]["structured"] is True
+            assert result["answer"] == "{}"
+            assert result.get("extra", {}).get("structured") is True
 
     def test_handles_tool_calls_event(self, mock_mongo_db, flask_app):
         from application.api.answer.routes.base import BaseAnswerResource
@@ -312,7 +310,7 @@ class TestProcessResponseStreamExtended:
                 f'data: {json.dumps({"type": "end"})}\n\n',
             ]
             result = resource.process_response_stream(iter(stream))
-            assert result[3] == [{"name": "t1"}]
+            assert result["tool_calls"] == [{"name": "t1"}]
 
     def test_incomplete_stream(self, mock_mongo_db, flask_app):
         from application.api.answer.routes.base import BaseAnswerResource
@@ -323,7 +321,7 @@ class TestProcessResponseStreamExtended:
                 f'data: {json.dumps({"type": "answer", "answer": "partial"})}\n\n',
             ]
             result = resource.process_response_stream(iter(stream))
-            assert result[4] == "Stream ended unexpectedly"
+            assert result["error"] == "Stream ended unexpectedly"
 
     def test_handles_thought_event(self, mock_mongo_db, flask_app):
         from application.api.answer.routes.base import BaseAnswerResource
@@ -335,7 +333,7 @@ class TestProcessResponseStreamExtended:
                 f'data: {json.dumps({"type": "end"})}\n\n',
             ]
             result = resource.process_response_stream(iter(stream))
-            assert result[4] == "thinking..."
+            assert result["thought"] == "thinking..."
 
 
 @pytest.mark.unit
diff --git a/tests/integration/run_all.py b/tests/integration/run_all.py
index 12397a84..b8137b27 100644
--- a/tests/integration/run_all.py
+++ b/tests/integration/run_all.py
@@ -50,6 +50,7 @@ from tests.integration.test_analytics import AnalyticsTests
 from tests.integration.test_connectors import ConnectorTests
 from tests.integration.test_mcp import MCPTests
 from tests.integration.test_misc import MiscTests
+from tests.integration.test_v1_api import V1ApiTests
 
 
 # Module registry
@@ -64,6 +65,7 @@ MODULES = {
     "connectors": ConnectorTests,
     "mcp": MCPTests,
     "misc": MiscTests,
+    "v1_api": V1ApiTests,
 }
 
 
diff --git a/tests/integration/test_chat.py b/tests/integration/test_chat.py
index 2651d169..b213e37b 100644
--- a/tests/integration/test_chat.py
+++ b/tests/integration/test_chat.py
@@ -1036,208 +1036,7 @@ This is test documentation for integration tests.
             return False
 
     # -------------------------------------------------------------------------
-    # Compression Tests
-    # -------------------------------------------------------------------------
-
-    def test_compression_heavy_tool_usage(self) -> bool:
-        """Test compression with heavy conversation usage."""
-        test_name = "Compression - Heavy Tool Usage"
-        self.print_header(f"Testing {test_name}")
-
-        if not self.require_auth(test_name):
-            return True
-
-        self.print_info("Making 10 consecutive requests to build conversation history...")
-
-        current_conv_id = None
-
-        for i in range(10):
-            question = f"Tell me about Python topic {i+1}: data structures, decorators, async, testing. Provide a comprehensive explanation."
-
-            payload = {
-                "question": question,
-                "history": "[]",
-                "isNoneDoc": True,
-            }
-
-            if current_conv_id:
-                payload["conversation_id"] = current_conv_id
-
-            try:
-                response = self.post("/api/answer", json=payload, timeout=90)
-
-                if response.status_code == 200:
-                    result = response.json()
-                    current_conv_id = result.get("conversation_id", current_conv_id)
-                    answer_preview = (result.get("answer") or "")[:80]
-                    self.print_success(f"Request {i+1}/10 completed")
-                    self.print_info(f"  Answer: {answer_preview}...")
-                else:
-                    self.print_error(f"Request {i+1}/10 failed: status {response.status_code}")
-                    self.record_result(test_name, False, f"Request {i+1} failed")
-                    return False
-
-                time.sleep(2)
-
-            except Exception as e:
-                self.print_error(f"Request {i+1}/10 failed: {str(e)}")
-                self.record_result(test_name, False, str(e))
-                return False
-
-        if current_conv_id:
-            self.print_success("Heavy usage test completed")
-            self.record_result(test_name, True, f"10 requests, conv_id: {current_conv_id}")
-            return True
-        else:
-            self.print_warning("No conversation_id received")
-            self.record_result(test_name, False, "No conversation_id")
-            return False
-
-    def test_compression_needle_in_haystack(self) -> bool:
-        """Test that compression preserves critical information.
-
-        Note: This is a long-running test that may timeout due to LLM response times.
-        Timeouts are handled gracefully as they indicate performance issues, not bugs.
-        """
-        test_name = "Compression - Needle in Haystack"
-        self.print_header(f"Testing {test_name}")
-
-        if not self.require_auth(test_name):
-            return True
-
-        conversation_id = None
-
-        # Step 1: Send general questions
-        self.print_info("Step 1: Sending general questions...")
-        for i, question in enumerate([
-            "Tell me about Python best practices in detail",
-            "Explain Python data structures comprehensively",
-        ]):
-            payload = {
-                "question": question,
-                "history": "[]",
-                "isNoneDoc": True,
-            }
-            if conversation_id:
-                payload["conversation_id"] = conversation_id
-
-            try:
-                response = self.post("/api/answer", json=payload, timeout=90)
-                if response.status_code == 200:
-                    result = response.json()
-                    conversation_id = result.get("conversation_id", conversation_id)
-                    self.print_success(f"General question {i+1}/2 completed")
-                else:
-                    self.print_error(f"Request failed: status {response.status_code}")
-                    self.record_result(test_name, False, "General questions failed")
-                    return False
-                time.sleep(2)
-            except Exception as e:
-                # Timeout errors are expected for long LLM responses
-                if "timed out" in str(e).lower() or "timeout" in str(e).lower():
-                    self.print_warning(f"Request timed out: {str(e)[:50]}")
-                    self.record_result(test_name, True, "Skipped (timeout)")
-                    return True
-                self.print_error(f"Request failed: {str(e)}")
-                self.record_result(test_name, False, str(e))
-                return False
-
-        # Step 2: Send critical information
-        self.print_info("Step 2: Sending CRITICAL information...")
-        critical_payload = {
-            "question": "Please remember: The production database password is stored in DB_PASSWORD_PROD environment variable. The backup runs at 3:00 AM UTC daily.",
-            "history": "[]",
-            "isNoneDoc": True,
-            "conversation_id": conversation_id,
-        }
-
-        try:
-            response = self.post("/api/answer", json=critical_payload, timeout=90)
-            if response.status_code == 200:
-                result = response.json()
-                conversation_id = result.get("conversation_id", conversation_id)
-                self.print_success("Critical information sent")
-            else:
-                self.record_result(test_name, False, "Critical info failed")
-                return False
-            time.sleep(2)
-        except Exception as e:
-            if "timed out" in str(e).lower() or "timeout" in str(e).lower():
-                self.print_warning(f"Request timed out: {str(e)[:50]}")
-                self.record_result(test_name, True, "Skipped (timeout)")
-                return True
-            self.record_result(test_name, False, str(e))
-            return False
-
-        # Step 3: Bury with more questions
-        self.print_info("Step 3: Sending more questions to bury critical info...")
-        for i, question in enumerate([
-            "Explain Python decorators in great detail",
-            "Tell me about Python async programming comprehensively",
-        ]):
-            payload = {
-                "question": question,
-                "history": "[]",
-                "isNoneDoc": True,
-                "conversation_id": conversation_id,
-            }
-
-            try:
-                response = self.post("/api/answer", json=payload, timeout=90)
-                if response.status_code == 200:
-                    result = response.json()
-                    conversation_id = result.get("conversation_id", conversation_id)
-                    self.print_success(f"Burying question {i+1}/2 completed")
-                else:
-                    self.record_result(test_name, False, "Burying questions failed")
-                    return False
-                time.sleep(2)
-            except Exception as e:
-                if "timed out" in str(e).lower() or "timeout" in str(e).lower():
-                    self.print_warning(f"Request timed out: {str(e)[:50]}")
-                    self.record_result(test_name, True, "Skipped (timeout)")
-                    return True
-                self.record_result(test_name, False, str(e))
-                return False
-
-        # Step 4: Test recall
-        self.print_info("Step 4: Testing if critical info was preserved...")
-        recall_payload = {
-            "question": "What was the database password environment variable I mentioned earlier?",
-            "history": "[]",
-            "isNoneDoc": True,
-            "conversation_id": conversation_id,
-        }
-
-        try:
-            response = self.post("/api/answer", json=recall_payload, timeout=90)
-            if response.status_code == 200:
-                result = response.json()
-                answer = (result.get("answer") or "").lower()
-
-                if "db_password_prod" in answer or "database password" in answer:
-                    self.print_success("Critical information preserved!")
-                    self.print_info(f"Answer: {answer[:150]}...")
-                    self.record_result(test_name, True, "Info preserved")
-                    return True
-                else:
-                    self.print_warning("Critical information may have been lost")
-                    self.print_info(f"Answer: {answer[:150]}...")
-                    self.record_result(test_name, False, "Info not preserved")
-                    return False
-            else:
-                self.record_result(test_name, False, "Recall failed")
-                return False
-        except Exception as e:
-            if "timed out" in str(e).lower() or "timeout" in str(e).lower():
-                self.print_warning(f"Request timed out: {str(e)[:50]}")
-                self.record_result(test_name, True, "Skipped (timeout)")
-                return True
-            self.record_result(test_name, False, str(e))
-            return False
-
-    # -------------------------------------------------------------------------
-    # Feedback Tests (NEW)
+    # Feedback Tests
     # -------------------------------------------------------------------------
 
     def test_feedback_positive(self) -> bool:
@@ -1435,15 +1234,6 @@ This is test documentation for integration tests.
         self.test_tts_basic()
         time.sleep(1)
 
-        # Compression tests (longer running)
-        if self.is_authenticated:
-            self.test_compression_heavy_tool_usage()
-            time.sleep(2)
-
-            self.test_compression_needle_in_haystack()
-        else:
-            self.print_info("Skipping compression tests (no authentication)")
-
         return self.print_summary()
 
 
diff --git a/tests/integration/test_v1_api.py b/tests/integration/test_v1_api.py
new file mode 100644
index 00000000..9774af2b
--- /dev/null
+++ b/tests/integration/test_v1_api.py
@@ -0,0 +1,681 @@
+#!/usr/bin/env python3
+"""
+Integration tests for the /v1/ chat completions API (Phase 4).
+
+Endpoints tested:
+- /v1/chat/completions (POST) - Standard chat completions (streaming & non-streaming)
+- /v1/models (GET) - List available agent models
+
+Usage:
+    python tests/integration/test_v1_api.py
+    python tests/integration/test_v1_api.py --base-url http://localhost:7091
+    python tests/integration/test_v1_api.py --token YOUR_JWT_TOKEN
+"""
+
+import json as json_module
+import sys
+import time
+from pathlib import Path
+from typing import Optional
+
+import requests
+
+# Add parent directory to path for standalone execution
+_THIS_DIR = Path(__file__).parent
+_TESTS_DIR = _THIS_DIR.parent
+_ROOT_DIR = _TESTS_DIR.parent
+if str(_ROOT_DIR) not in sys.path:
+    sys.path.insert(0, str(_ROOT_DIR))
+
+from tests.integration.base import DocsGPTTestBase, create_client_from_args
+
+
+class V1ApiTests(DocsGPTTestBase):
+    """Integration tests for /v1/ chat completions API."""
+
+    # -------------------------------------------------------------------------
+    # Test Data Helpers
+    # -------------------------------------------------------------------------
+
+    def get_or_create_agent_key(self) -> Optional[str]:
+        """Get or create a test agent and return its API key."""
+        if hasattr(self, "_agent_key") and self._agent_key:
+            return self._agent_key
+
+        # Try both authenticated and unauthenticated creation.
+        # Published agents need a source to get an API key.
+        payload = {
+            "name": f"V1 Test Agent {int(time.time())}",
+            "description": "Integration test agent for v1 API tests",
+            "prompt_id": "default",
+            "chunks": 2,
+            "retriever": "classic",
+            "agent_type": "classic",
+            "status": "published",
+            "source": "default",
+        }
+
+        try:
+            response = self.post("/api/create_agent", json=payload, timeout=10)
+            if response.status_code in [200, 201]:
+                result = response.json()
+                api_key = result.get("key")
+                self._agent_id = result.get("id")
+                if api_key:
+                    self._agent_key = api_key
+                    self.print_info(f"Created test agent with key: {api_key[:8]}...")
+                    return api_key
+                else:
+                    self.print_warning("Agent created but no API key returned")
+            else:
+                self.print_warning(f"Agent creation returned {response.status_code}: {response.text[:200]}")
+        except Exception as e:
+            self.print_error(f"Failed to create agent: {e}")
+
+        return None
+
+    def _v1_headers(self, api_key: str) -> dict:
+        """Build headers for v1 API requests."""
+        return {"Authorization": f"Bearer {api_key}", "Content-Type": "application/json"}
+
+    # -------------------------------------------------------------------------
+    # /v1/chat/completions — Auth Tests
+    # -------------------------------------------------------------------------
+
+    def test_no_auth_returns_401(self) -> bool:
+        """Test that /v1/chat/completions without auth returns 401."""
+        test_name = "v1 chat completions - no auth"
+        self.print_header(f"Testing {test_name}")
+
+        try:
+            response = requests.post(
+                f"{self.base_url}/v1/chat/completions",
+                json={"messages": [{"role": "user", "content": "Hi"}]},
+                headers={"Content-Type": "application/json"},
+                timeout=10,
+            )
+
+            if response.status_code == 401:
+                self.print_success("Correctly returned 401 for missing auth")
+                self.record_result(test_name, True, "401 as expected")
+                return True
+            else:
+                self.print_error(f"Expected 401, got {response.status_code}")
+                self.record_result(test_name, False, f"Status {response.status_code}")
+                return False
+        except Exception as e:
+            self.print_error(f"Request failed: {e}")
+            self.record_result(test_name, False, str(e))
+            return False
+
+    def test_invalid_key_returns_error(self) -> bool:
+        """Test that invalid API key returns error."""
+        test_name = "v1 chat completions - invalid key"
+        self.print_header(f"Testing {test_name}")
+
+        try:
+            response = requests.post(
+                f"{self.base_url}/v1/chat/completions",
+                json={"messages": [{"role": "user", "content": "Hi"}]},
+                headers=self._v1_headers("invalid-key-12345"),
+                timeout=30,
+            )
+
+            # Should return 400 or 500 (agent not found)
+            if response.status_code in [400, 401, 500]:
+                self.print_success(f"Correctly returned {response.status_code} for invalid key")
+                self.record_result(test_name, True, f"Error as expected ({response.status_code})")
+                return True
+            else:
+                self.print_error(f"Unexpected status: {response.status_code}")
+                self.record_result(test_name, False, f"Status {response.status_code}")
+                return False
+        except Exception as e:
+            self.print_error(f"Request failed: {e}")
+            self.record_result(test_name, False, str(e))
+            return False
+
+    def test_missing_messages_returns_400(self) -> bool:
+        """Test that missing messages field returns 400."""
+        test_name = "v1 chat completions - missing messages"
+        self.print_header(f"Testing {test_name}")
+
+        api_key = self.get_or_create_agent_key()
+        if not api_key:
+            if not self.require_auth(test_name):
+                return True
+            self.record_result(test_name, True, "Skipped (no agent)")
+            return True
+
+        try:
+            response = requests.post(
+                f"{self.base_url}/v1/chat/completions",
+                json={"stream": False},
+                headers=self._v1_headers(api_key),
+                timeout=10,
+            )
+
+            if response.status_code == 400:
+                self.print_success("Correctly returned 400 for missing messages")
+                self.record_result(test_name, True, "400 as expected")
+                return True
+            else:
+                self.print_error(f"Expected 400, got {response.status_code}")
+                self.record_result(test_name, False, f"Status {response.status_code}")
+                return False
+        except Exception as e:
+            self.print_error(f"Request failed: {e}")
+            self.record_result(test_name, False, str(e))
+            return False
+
+    # -------------------------------------------------------------------------
+    # /v1/chat/completions — Non-streaming
+    # -------------------------------------------------------------------------
+
+    def test_non_streaming_basic(self) -> bool:
+        """Test basic non-streaming chat completion."""
+        test_name = "v1 chat completions - non-streaming"
+        self.print_header(f"Testing {test_name}")
+
+        api_key = self.get_or_create_agent_key()
+        if not api_key:
+            if not self.require_auth(test_name):
+                return True
+            self.record_result(test_name, True, "Skipped (no agent)")
+            return True
+
+        try:
+            response = requests.post(
+                f"{self.base_url}/v1/chat/completions",
+                json={
+                    "messages": [{"role": "user", "content": "Say hello in one word."}],
+                    "stream": False,
+                },
+                headers=self._v1_headers(api_key),
+                timeout=60,
+            )
+
+            self.print_info(f"Status: {response.status_code}")
+
+            if response.status_code != 200:
+                self.print_error(f"Expected 200, got {response.status_code}")
+                self.print_error(f"Response: {response.text[:300]}")
+                self.record_result(test_name, False, f"Status {response.status_code}")
+                return False
+
+            data = response.json()
+
+            # Verify standard format
+            checks = [
+                ("id" in data, "has id"),
+                (data.get("object") == "chat.completion", "object is chat.completion"),
+                ("choices" in data, "has choices"),
+                (len(data["choices"]) > 0, "choices not empty"),
+                (data["choices"][0].get("message", {}).get("role") == "assistant", "role is assistant"),
+                (data["choices"][0].get("message", {}).get("content") is not None, "has content"),
+                (data["choices"][0].get("finish_reason") == "stop", "finish_reason is stop"),
+                ("usage" in data, "has usage"),
+            ]
+
+            all_passed = True
+            for check, label in checks:
+                if check:
+                    self.print_success(f"  {label}")
+                else:
+                    self.print_error(f"  {label}")
+                    all_passed = False
+
+            content = data["choices"][0]["message"]["content"]
+            self.print_info(f"Response: {content[:100]}")
+
+            # Check docsgpt extension
+            if "docsgpt" in data:
+                self.print_success("  has docsgpt extension")
+                if "conversation_id" in data["docsgpt"]:
+                    self.print_success(f"  conversation_id: {data['docsgpt']['conversation_id'][:8]}...")
+
+            self.record_result(test_name, all_passed, "All checks passed" if all_passed else "Some checks failed")
+            return all_passed
+
+        except Exception as e:
+            self.print_error(f"Error: {e}")
+            self.record_result(test_name, False, str(e))
+            return False
+
+    # -------------------------------------------------------------------------
+    # /v1/chat/completions — Streaming
+    # -------------------------------------------------------------------------
+
+    def test_streaming_basic(self) -> bool:
+        """Test basic streaming chat completion."""
+        test_name = "v1 chat completions - streaming"
+        self.print_header(f"Testing {test_name}")
+
+        api_key = self.get_or_create_agent_key()
+        if not api_key:
+            if not self.require_auth(test_name):
+                return True
+            self.record_result(test_name, True, "Skipped (no agent)")
+            return True
+
+        try:
+            response = requests.post(
+                f"{self.base_url}/v1/chat/completions",
+                json={
+                    "messages": [{"role": "user", "content": "Say hi briefly."}],
+                    "stream": True,
+                },
+                headers=self._v1_headers(api_key),
+                stream=True,
+                timeout=60,
+            )
+
+            self.print_info(f"Status: {response.status_code}")
+
+            if response.status_code != 200:
+                self.print_error(f"Expected 200, got {response.status_code}")
+                self.record_result(test_name, False, f"Status {response.status_code}")
+                return False
+
+            chunks = []
+            content_pieces = []
+            got_done = False
+            got_stop = False
+            got_id = False
+
+            for line in response.iter_lines():
+                if not line:
+                    continue
+                line_str = line.decode("utf-8")
+                if not line_str.startswith("data: "):
+                    continue
+
+                data_str = line_str[6:]
+                if data_str.strip() == "[DONE]":
+                    got_done = True
+                    break
+
+                try:
+                    chunk = json_module.loads(data_str)
+                    chunks.append(chunk)
+
+                    # Standard chunks
+                    if "choices" in chunk:
+                        delta = chunk["choices"][0].get("delta", {})
+                        if "content" in delta:
+                            content_pieces.append(delta["content"])
+                        if chunk["choices"][0].get("finish_reason") == "stop":
+                            got_stop = True
+
+                    # Extension chunks
+                    if "docsgpt" in chunk:
+                        ext = chunk["docsgpt"]
+                        if ext.get("type") == "id":
+                            got_id = True
+
+                except json_module.JSONDecodeError:
+                    pass
+
+            full_content = "".join(content_pieces)
+
+            checks = [
+                (len(chunks) > 0, f"received {len(chunks)} chunks"),
+                (len(content_pieces) > 0, f"got content: {full_content[:50]}..."),
+                (got_stop, "got finish_reason=stop"),
+                (got_done, "got [DONE] sentinel"),
+            ]
+
+            all_passed = True
+            for check, label in checks:
+                if check:
+                    self.print_success(f"  {label}")
+                else:
+                    self.print_error(f"  {label}")
+                    all_passed = False
+
+            if got_id:
+                self.print_success("  got conversation_id via docsgpt extension")
+
+            self.record_result(test_name, all_passed, "All checks passed" if all_passed else "Some checks failed")
+            return all_passed
+
+        except Exception as e:
+            self.print_error(f"Error: {e}")
+            self.record_result(test_name, False, str(e))
+            return False
+
+    # -------------------------------------------------------------------------
+    # /v1/chat/completions — Multi-turn conversation
+    # -------------------------------------------------------------------------
+
+    def test_multi_turn_conversation(self) -> bool:
+        """Test multi-turn conversation with history in messages."""
+        test_name = "v1 chat completions - multi-turn"
+        self.print_header(f"Testing {test_name}")
+
+        api_key = self.get_or_create_agent_key()
+        if not api_key:
+            if not self.require_auth(test_name):
+                return True
+            self.record_result(test_name, True, "Skipped (no agent)")
+            return True
+
+        try:
+            response = requests.post(
+                f"{self.base_url}/v1/chat/completions",
+                json={
+                    "messages": [
+                        {"role": "user", "content": "My name is TestBot."},
+                        {"role": "assistant", "content": "Hello TestBot!"},
+                        {"role": "user", "content": "What is my name?"},
+                    ],
+                    "stream": False,
+                },
+                headers=self._v1_headers(api_key),
+                timeout=60,
+            )
+
+            if response.status_code != 200:
+                self.print_error(f"Expected 200, got {response.status_code}")
+                self.record_result(test_name, False, f"Status {response.status_code}")
+                return False
+
+            data = response.json()
+            content = data["choices"][0]["message"]["content"]
+            self.print_info(f"Response: {content[:150]}")
+
+            # The response should reference "TestBot" from the history
+            has_content = bool(content)
+            self.print_success(f"  Got response with {len(content)} chars")
+            self.record_result(test_name, has_content, "Multi-turn works")
+            return has_content
+
+        except Exception as e:
+            self.print_error(f"Error: {e}")
+            self.record_result(test_name, False, str(e))
+            return False
+
+    # -------------------------------------------------------------------------
+    # /v1/models
+    # -------------------------------------------------------------------------
+
+    def test_list_models(self) -> bool:
+        """Test GET /v1/models endpoint."""
+        test_name = "v1 models - list"
+        self.print_header(f"Testing {test_name}")
+
+        api_key = self.get_or_create_agent_key()
+        if not api_key:
+            if not self.require_auth(test_name):
+                return True
+            self.record_result(test_name, True, "Skipped (no agent)")
+            return True
+
+        try:
+            response = requests.get(
+                f"{self.base_url}/v1/models",
+                headers=self._v1_headers(api_key),
+                timeout=10,
+            )
+
+            self.print_info(f"Status: {response.status_code}")
+
+            if response.status_code != 200:
+                self.print_error(f"Expected 200, got {response.status_code}")
+                self.record_result(test_name, False, f"Status {response.status_code}")
+                return False
+
+            data = response.json()
+
+            checks = [
+                (data.get("object") == "list", "object is list"),
+                ("data" in data, "has data array"),
+                (len(data.get("data", [])) > 0, f"has {len(data.get('data', []))} model(s)"),
+            ]
+
+            all_passed = True
+            for check, label in checks:
+                if check:
+                    self.print_success(f"  {label}")
+                else:
+                    self.print_error(f"  {label}")
+                    all_passed = False
+
+            if data.get("data"):
+                model = data["data"][0]
+                model_checks = [
+                    ("id" in model, "model has id"),
+                    (model.get("object") == "model", "model object is 'model'"),
+                    (model.get("owned_by") == "docsgpt", "owned_by is docsgpt"),
+                ]
+                for check, label in model_checks:
+                    if check:
+                        self.print_success(f"  {label}")
+                    else:
+                        self.print_error(f"  {label}")
+                        all_passed = False
+
+            self.record_result(test_name, all_passed, "All checks passed" if all_passed else "Some checks failed")
+            return all_passed
+
+        except Exception as e:
+            self.print_error(f"Error: {e}")
+            self.record_result(test_name, False, str(e))
+            return False
+
+    def test_models_no_auth(self) -> bool:
+        """Test that /v1/models without auth returns 401."""
+        test_name = "v1 models - no auth"
+        self.print_header(f"Testing {test_name}")
+
+        try:
+            response = requests.get(
+                f"{self.base_url}/v1/models",
+                timeout=10,
+            )
+
+            if response.status_code == 401:
+                self.print_success("Correctly returned 401")
+                self.record_result(test_name, True, "401 as expected")
+                return True
+            else:
+                self.print_error(f"Expected 401, got {response.status_code}")
+                self.record_result(test_name, False, f"Status {response.status_code}")
+                return False
+        except Exception as e:
+            self.print_error(f"Error: {e}")
+            self.record_result(test_name, False, str(e))
+            return False
+
+    # -------------------------------------------------------------------------
+    # Backward Compatibility — old endpoints still work
+    # -------------------------------------------------------------------------
+
+    def test_old_stream_endpoint_still_works(self) -> bool:
+        """Verify the old /stream endpoint still works after v1 changes."""
+        test_name = "Backward compat - /stream"
+        self.print_header(f"Testing {test_name}")
+
+        payload = {
+            "question": "Say hello briefly.",
+            "history": "[]",
+            "isNoneDoc": True,
+        }
+
+        try:
+            response = requests.post(
+                f"{self.base_url}/stream",
+                json=payload,
+                headers=self.headers,
+                stream=True,
+                timeout=60,
+            )
+
+            if response.status_code != 200:
+                self.print_error(f"Expected 200, got {response.status_code}")
+                self.record_result(test_name, False, f"Status {response.status_code}")
+                return False
+
+            events = []
+            got_end = False
+            got_answer = False
+
+            for line in response.iter_lines():
+                if line:
+                    line_str = line.decode("utf-8")
+                    if line_str.startswith("data: "):
+                        try:
+                            data = json_module.loads(line_str[6:])
+                            events.append(data)
+                            if data.get("type") == "answer":
+                                got_answer = True
+                            if data.get("type") == "end":
+                                got_end = True
+                                break
+                        except json_module.JSONDecodeError:
+                            pass
+
+            checks = [
+                (len(events) > 0, f"received {len(events)} events"),
+                (got_answer, "got answer event"),
+                (got_end, "got end event"),
+            ]
+
+            all_passed = True
+            for check, label in checks:
+                if check:
+                    self.print_success(f"  {label}")
+                else:
+                    self.print_error(f"  {label}")
+                    all_passed = False
+
+            self.record_result(test_name, all_passed, "Old endpoint works" if all_passed else "Regression")
+            return all_passed
+
+        except Exception as e:
+            self.print_error(f"Error: {e}")
+            self.record_result(test_name, False, str(e))
+            return False
+
+    def test_old_answer_endpoint_still_works(self) -> bool:
+        """Verify the old /api/answer endpoint still works."""
+        test_name = "Backward compat - /api/answer"
+        self.print_header(f"Testing {test_name}")
+
+        payload = {
+            "question": "Say hi.",
+            "history": "[]",
+            "isNoneDoc": True,
+        }
+
+        try:
+            response = requests.post(
+                f"{self.base_url}/api/answer",
+                json=payload,
+                headers=self.headers,
+                timeout=60,
+            )
+
+            if response.status_code != 200:
+                self.print_error(f"Expected 200, got {response.status_code}")
+                self.record_result(test_name, False, f"Status {response.status_code}")
+                return False
+
+            data = response.json()
+            checks = [
+                ("answer" in data, "has answer"),
+                ("conversation_id" in data, "has conversation_id"),
+            ]
+
+            all_passed = True
+            for check, label in checks:
+                if check:
+                    self.print_success(f"  {label}")
+                else:
+                    self.print_error(f"  {label}")
+                    all_passed = False
+
+            self.print_info(f"Answer: {data.get('answer', '')[:100]}")
+            self.record_result(test_name, all_passed, "Old endpoint works" if all_passed else "Regression")
+            return all_passed
+
+        except Exception as e:
+            self.print_error(f"Error: {e}")
+            self.record_result(test_name, False, str(e))
+            return False
+
+    # -------------------------------------------------------------------------
+    # Cleanup
+    # -------------------------------------------------------------------------
+
+    def cleanup(self):
+        """Clean up test resources."""
+        if hasattr(self, "_agent_id") and self._agent_id and self.is_authenticated:
+            try:
+                self.post(f"/api/delete_agent?id={self._agent_id}", json={})
+                self.print_info(f"Cleaned up test agent {self._agent_id[:8]}...")
+            except Exception:
+                pass
+
+    # -------------------------------------------------------------------------
+    # Run All
+    # -------------------------------------------------------------------------
+
+    def run_all(self) -> bool:
+        """Run all v1 API integration tests."""
+        self.print_header("V1 Chat Completions API Integration Tests")
+        self.print_info(f"Base URL: {self.base_url}")
+        self.print_info(f"Authentication: {'Yes' if self.is_authenticated else 'No'}")
+
+        try:
+            # Auth tests (no agent needed)
+            self.test_no_auth_returns_401()
+            time.sleep(0.5)
+
+            self.test_models_no_auth()
+            time.sleep(0.5)
+
+            self.test_invalid_key_returns_error()
+            time.sleep(0.5)
+
+            self.test_missing_messages_returns_400()
+            time.sleep(0.5)
+
+            # Non-streaming
+            self.test_non_streaming_basic()
+            time.sleep(1)
+
+            # Streaming
+            self.test_streaming_basic()
+            time.sleep(1)
+
+            # Multi-turn
+            self.test_multi_turn_conversation()
+            time.sleep(1)
+
+            # Models
+            self.test_list_models()
+            time.sleep(0.5)
+
+            # Backward compatibility
+            self.test_old_stream_endpoint_still_works()
+            time.sleep(1)
+
+            self.test_old_answer_endpoint_still_works()
+            time.sleep(1)
+
+        finally:
+            self.cleanup()
+
+        return self.print_summary()
+
+
+def main():
+    """Main entry point."""
+    client = create_client_from_args(V1ApiTests, "DocsGPT V1 API Integration Tests")
+    success = client.run_all()
+    sys.exit(0 if success else 1)
+
+
+if __name__ == "__main__":
+    main()
diff --git a/tests/integration/test_v1_tool_calls.py b/tests/integration/test_v1_tool_calls.py
new file mode 100644
index 00000000..af0f650a
--- /dev/null
+++ b/tests/integration/test_v1_tool_calls.py
@@ -0,0 +1,539 @@
+#!/usr/bin/env python3
+r"""
+Integration tests for the /v1/ chat completions API — client tool-call flow.
+
+Tests the full lifecycle:
+1. Send request with client tools → LLM triggers a tool call
+2. Verify response returns clean tool names (no internal _ct\d+ suffix)
+3. Send continuation with tool results + top-level conversation_id
+4. Verify the continuation completes successfully
+
+Usage:
+    python tests/integration/test_v1_tool_calls.py
+    python tests/integration/test_v1_tool_calls.py --base-url http://localhost:7091
+"""
+
+import json as json_module
+import re
+import sys
+import time
+from pathlib import Path
+from typing import Any, Dict, List, Optional, Tuple
+
+import requests
+
+_THIS_DIR = Path(__file__).parent
+_TESTS_DIR = _THIS_DIR.parent
+_ROOT_DIR = _TESTS_DIR.parent
+if str(_ROOT_DIR) not in sys.path:
+    sys.path.insert(0, str(_ROOT_DIR))
+
+from tests.integration.base import DocsGPTTestBase, create_client_from_args
+
+# Internal suffix pattern that should NOT appear in client responses
+_CT_SUFFIX_RE = re.compile(r"_ct\d+$")
+
+
+class V1ToolCallTests(DocsGPTTestBase):
+    """Integration tests for /v1/ client tool-call flows."""
+
+    # -------------------------------------------------------------------------
+    # Helpers
+    # -------------------------------------------------------------------------
+
+    def get_or_create_agent_key(self) -> Optional[str]:
+        """Get or create a test agent and return its API key."""
+        if hasattr(self, "_agent_key") and self._agent_key:
+            return self._agent_key
+
+        payload = {
+            "name": f"V1 ToolCall Test {int(time.time())}",
+            "description": "Integration test agent for tool-call flow",
+            "prompt_id": "default",
+            "chunks": 2,
+            "retriever": "classic",
+            "agent_type": "classic",
+            "status": "published",
+            "source": "default",
+        }
+
+        try:
+            response = self.post("/api/create_agent", json=payload, timeout=10)
+            if response.status_code in [200, 201]:
+                result = response.json()
+                api_key = result.get("key")
+                self._agent_id = result.get("id")
+                if api_key:
+                    self._agent_key = api_key
+                    self.print_info(f"Created test agent with key: {api_key[:8]}...")
+                    return api_key
+        except Exception as e:
+            self.print_error(f"Failed to create agent: {e}")
+
+        return None
+
+    def _v1_headers(self, api_key: str) -> dict:
+        return {"Authorization": f"Bearer {api_key}", "Content-Type": "application/json"}
+
+    # A simple client tool definition in OpenAI format
+    _CLIENT_TOOLS = [
+        {
+            "type": "function",
+            "function": {
+                "name": "create",
+                "description": "Create a new todo item",
+                "parameters": {
+                    "type": "object",
+                    "properties": {
+                        "title": {
+                            "type": "string",
+                            "description": "The title of the new todo item",
+                        }
+                    },
+                    "required": ["title"],
+                },
+            },
+        }
+    ]
+
+    def _send_streaming_request(
+        self,
+        api_key: str,
+        messages: List[Dict],
+        tools: Optional[List[Dict]] = None,
+        conversation_id: Optional[str] = None,
+    ) -> Tuple[List[Dict], str, Optional[Dict]]:
+        """Send a streaming request and collect all events.
+
+        Returns:
+            (all_chunks, full_content, tool_call_info)
+            tool_call_info is a dict with 'name', 'arguments', 'call_id'
+            if the response paused for a client tool call, else None.
+        """
+        body: Dict[str, Any] = {
+            "messages": messages,
+            "stream": True,
+        }
+        if tools:
+            body["tools"] = tools
+        if conversation_id:
+            body["conversation_id"] = conversation_id
+
+        response = requests.post(
+            f"{self.base_url}/v1/chat/completions",
+            json=body,
+            headers=self._v1_headers(api_key),
+            stream=True,
+            timeout=120,
+        )
+
+        if response.status_code != 200:
+            raise RuntimeError(
+                f"Expected 200, got {response.status_code}: {response.text[:300]}"
+            )
+
+        chunks: List[Dict] = []
+        content_pieces: List[str] = []
+        tool_call_info: Optional[Dict] = None
+        conversation_id_from_response: Optional[str] = None
+
+        for line in response.iter_lines():
+            if not line:
+                continue
+            line_str = line.decode("utf-8")
+            if not line_str.startswith("data: "):
+                continue
+
+            data_str = line_str[6:]
+            if data_str.strip() == "[DONE]":
+                break
+
+            try:
+                chunk = json_module.loads(data_str)
+                chunks.append(chunk)
+
+                # Standard chunks
+                if "choices" in chunk:
+                    delta = chunk["choices"][0].get("delta", {})
+                    if "content" in delta:
+                        content_pieces.append(delta["content"])
+
+                    # Tool call delta
+                    if "tool_calls" in delta:
+                        tc = delta["tool_calls"][0]
+                        tool_call_info = {
+                            "call_id": tc.get("id", ""),
+                            "name": tc["function"]["name"],
+                            "arguments": tc["function"].get("arguments", "{}"),
+                        }
+
+                # Extension chunks
+                if "docsgpt" in chunk:
+                    ext = chunk["docsgpt"]
+                    if ext.get("type") == "id":
+                        conversation_id_from_response = ext.get("conversation_id")
+
+            except json_module.JSONDecodeError:
+                pass
+
+        full_content = "".join(content_pieces)
+
+        # Attach conversation_id to tool_call_info for convenience
+        if tool_call_info and conversation_id_from_response:
+            tool_call_info["conversation_id"] = conversation_id_from_response
+
+        return chunks, full_content, tool_call_info
+
+    def _send_non_streaming_request(
+        self,
+        api_key: str,
+        messages: List[Dict],
+        tools: Optional[List[Dict]] = None,
+        conversation_id: Optional[str] = None,
+    ) -> Dict:
+        """Send a non-streaming request and return parsed JSON."""
+        body: Dict[str, Any] = {
+            "messages": messages,
+            "stream": False,
+        }
+        if tools:
+            body["tools"] = tools
+        if conversation_id:
+            body["conversation_id"] = conversation_id
+
+        response = requests.post(
+            f"{self.base_url}/v1/chat/completions",
+            json=body,
+            headers=self._v1_headers(api_key),
+            timeout=120,
+        )
+
+        if response.status_code != 200:
+            raise RuntimeError(
+                f"Expected 200, got {response.status_code}: {response.text[:300]}"
+            )
+
+        return response.json()
+
+    # -------------------------------------------------------------------------
+    # Tests
+    # -------------------------------------------------------------------------
+
+    def test_streaming_tool_call_clean_name(self) -> bool:
+        """Streaming: tool names returned to client must not have _ct suffixes."""
+        test_name = "v1 streaming tool call - clean name"
+        self.print_header(f"Testing {test_name}")
+
+        api_key = self.get_or_create_agent_key()
+        if not api_key:
+            if not self.require_auth(test_name):
+                return True
+            self.record_result(test_name, True, "Skipped (no agent)")
+            return True
+
+        try:
+            messages = [
+                {"role": "user", "content": "Use the create tool to add a todo item titled 'Test integration'. Call the tool now."},
+            ]
+            chunks, content, tool_call_info = self._send_streaming_request(
+                api_key, messages, tools=self._CLIENT_TOOLS
+            )
+
+            if not tool_call_info:
+                # LLM didn't trigger the tool — could happen, not a failure of our code
+                self.print_warning("LLM did not trigger a tool call (may need prompt tuning)")
+                self.print_info(f"Got text response instead: {content[:100]}")
+                self.record_result(test_name, True, "Skipped (LLM didn't call tool)")
+                return True
+
+            tool_name = tool_call_info["name"]
+            self.print_info(f"Tool call name: {tool_name}")
+
+            has_suffix = bool(_CT_SUFFIX_RE.search(tool_name))
+            if has_suffix:
+                self.print_error(f"Tool name has internal suffix: {tool_name}")
+                self.record_result(test_name, False, f"Suffix leak: {tool_name}")
+                return False
+
+            self.print_success(f"Tool name is clean: {tool_name}")
+            self.record_result(test_name, True, f"Clean name: {tool_name}")
+            return True
+
+        except Exception as e:
+            self.print_error(f"Error: {e}")
+            self.record_result(test_name, False, str(e))
+            return False
+
+    def test_non_streaming_tool_call_clean_name(self) -> bool:
+        """Non-streaming: tool names returned to client must not have _ct suffixes."""
+        test_name = "v1 non-streaming tool call - clean name"
+        self.print_header(f"Testing {test_name}")
+
+        api_key = self.get_or_create_agent_key()
+        if not api_key:
+            if not self.require_auth(test_name):
+                return True
+            self.record_result(test_name, True, "Skipped (no agent)")
+            return True
+
+        try:
+            messages = [
+                {"role": "user", "content": "Use the create tool to add a todo item titled 'Test non-stream'. Call the tool now."},
+            ]
+            data = self._send_non_streaming_request(
+                api_key, messages, tools=self._CLIENT_TOOLS
+            )
+
+            message = data["choices"][0]["message"]
+            tool_calls = message.get("tool_calls")
+
+            if not tool_calls:
+                content = message.get("content", "")
+                self.print_warning("LLM did not trigger a tool call")
+                self.print_info(f"Got text response: {content[:100]}")
+                self.record_result(test_name, True, "Skipped (LLM didn't call tool)")
+                return True
+
+            tool_name = tool_calls[0]["function"]["name"]
+            self.print_info(f"Tool call name: {tool_name}")
+
+            has_suffix = bool(_CT_SUFFIX_RE.search(tool_name))
+            if has_suffix:
+                self.print_error(f"Tool name has internal suffix: {tool_name}")
+                self.record_result(test_name, False, f"Suffix leak: {tool_name}")
+                return False
+
+            self.print_success(f"Tool name is clean: {tool_name}")
+            self.record_result(test_name, True, f"Clean name: {tool_name}")
+            return True
+
+        except Exception as e:
+            self.print_error(f"Error: {e}")
+            self.record_result(test_name, False, str(e))
+            return False
+
+    def test_streaming_tool_continuation_with_top_level_conversation_id(self) -> bool:
+        """Full tool-call round-trip: trigger → get conversation_id → continue with top-level id."""
+        test_name = "v1 streaming tool continuation - top-level conversation_id"
+        self.print_header(f"Testing {test_name}")
+
+        api_key = self.get_or_create_agent_key()
+        if not api_key:
+            if not self.require_auth(test_name):
+                return True
+            self.record_result(test_name, True, "Skipped (no agent)")
+            return True
+
+        try:
+            # Step 1: trigger a tool call
+            messages = [
+                {"role": "user", "content": "Use the create tool to add a todo item titled 'Round trip test'. Call the tool now."},
+            ]
+            chunks, content, tool_call_info = self._send_streaming_request(
+                api_key, messages, tools=self._CLIENT_TOOLS
+            )
+
+            if not tool_call_info:
+                self.print_warning("LLM did not trigger a tool call")
+                self.record_result(test_name, True, "Skipped (LLM didn't call tool)")
+                return True
+
+            conversation_id = tool_call_info.get("conversation_id")
+            if not conversation_id:
+                self.print_error("No conversation_id returned in stream")
+                self.record_result(test_name, False, "Missing conversation_id")
+                return False
+
+            self.print_info(f"Got conversation_id: {conversation_id[:12]}...")
+            self.print_info(f"Tool call: {tool_call_info['name']}({tool_call_info['arguments']})")
+
+            # Step 2: send continuation with tool result + top-level conversation_id
+            # (standard OpenAI format — no docsgpt field in assistant message)
+            continuation_messages = [
+                *messages,
+                {
+                    "role": "assistant",
+                    "content": None,
+                    "tool_calls": [
+                        {
+                            "id": tool_call_info["call_id"],
+                            "type": "function",
+                            "function": {
+                                "name": tool_call_info["name"],
+                                "arguments": tool_call_info["arguments"],
+                            },
+                        }
+                    ],
+                },
+                {
+                    "role": "tool",
+                    "tool_call_id": tool_call_info["call_id"],
+                    "content": json_module.dumps({"id": 99, "title": "Round trip test", "status": "created"}),
+                },
+            ]
+
+            chunks2, content2, tool_call_info2 = self._send_streaming_request(
+                api_key,
+                continuation_messages,
+                tools=self._CLIENT_TOOLS,
+                conversation_id=conversation_id,
+            )
+
+            checks = [
+                (len(chunks2) > 0, f"continuation returned {len(chunks2)} chunks"),
+                (bool(content2) or tool_call_info2 is not None, "got content or another tool call"),
+            ]
+
+            all_passed = True
+            for check, label in checks:
+                if check:
+                    self.print_success(f"  {label}")
+                else:
+                    self.print_error(f"  {label}")
+                    all_passed = False
+
+            if content2:
+                self.print_info(f"Continuation response: {content2[:150]}")
+
+            self.record_result(
+                test_name,
+                all_passed,
+                "Full round-trip works" if all_passed else "Continuation failed",
+            )
+            return all_passed
+
+        except Exception as e:
+            self.print_error(f"Error: {e}")
+            self.record_result(test_name, False, str(e))
+            return False
+
+    def test_non_streaming_tool_continuation_with_top_level_conversation_id(self) -> bool:
+        """Non-streaming full round-trip with top-level conversation_id."""
+        test_name = "v1 non-streaming tool continuation - top-level conversation_id"
+        self.print_header(f"Testing {test_name}")
+
+        api_key = self.get_or_create_agent_key()
+        if not api_key:
+            if not self.require_auth(test_name):
+                return True
+            self.record_result(test_name, True, "Skipped (no agent)")
+            return True
+
+        try:
+            # Step 1: trigger a tool call
+            messages = [
+                {"role": "user", "content": "Use the create tool to add a todo item titled 'Non-stream round trip'. Call the tool now."},
+            ]
+            data = self._send_non_streaming_request(
+                api_key, messages, tools=self._CLIENT_TOOLS
+            )
+
+            message = data["choices"][0]["message"]
+            tool_calls = message.get("tool_calls")
+
+            if not tool_calls:
+                self.print_warning("LLM did not trigger a tool call")
+                self.record_result(test_name, True, "Skipped (LLM didn't call tool)")
+                return True
+
+            conversation_id = data.get("docsgpt", {}).get("conversation_id")
+            if not conversation_id:
+                self.print_error("No conversation_id in response")
+                self.record_result(test_name, False, "Missing conversation_id")
+                return False
+
+            tc = tool_calls[0]
+            self.print_info(f"Got tool call: {tc['function']['name']}")
+            self.print_info(f"conversation_id: {conversation_id[:12]}...")
+
+            # Step 2: send continuation (standard format, top-level conversation_id)
+            continuation_messages = [
+                *messages,
+                {
+                    "role": "assistant",
+                    "content": None,
+                    "tool_calls": [tc],
+                },
+                {
+                    "role": "tool",
+                    "tool_call_id": tc["id"],
+                    "content": json_module.dumps({"id": 100, "title": "Non-stream round trip", "status": "created"}),
+                },
+            ]
+
+            data2 = self._send_non_streaming_request(
+                api_key,
+                continuation_messages,
+                tools=self._CLIENT_TOOLS,
+                conversation_id=conversation_id,
+            )
+
+            message2 = data2["choices"][0]["message"]
+            has_response = bool(message2.get("content")) or bool(message2.get("tool_calls"))
+
+            if has_response:
+                self.print_success("Continuation returned a response")
+                content2 = message2.get("content", "")
+                if content2:
+                    self.print_info(f"Response: {content2[:150]}")
+            else:
+                self.print_error("Continuation returned empty response")
+
+            self.record_result(
+                test_name,
+                has_response,
+                "Round-trip works" if has_response else "Empty continuation response",
+            )
+            return has_response
+
+        except Exception as e:
+            self.print_error(f"Error: {e}")
+            self.record_result(test_name, False, str(e))
+            return False
+
+    # -------------------------------------------------------------------------
+    # Cleanup & Run All
+    # -------------------------------------------------------------------------
+
+    def cleanup(self):
+        if hasattr(self, "_agent_id") and self._agent_id and self.is_authenticated:
+            try:
+                self.post(f"/api/delete_agent?id={self._agent_id}", json={})
+                self.print_info(f"Cleaned up test agent {self._agent_id[:8]}...")
+            except Exception:
+                pass
+
+    def run_all(self) -> bool:
+        self.print_header("V1 Tool-Call Flow Integration Tests")
+        self.print_info(f"Base URL: {self.base_url}")
+        self.print_info(f"Authentication: {'Yes' if self.is_authenticated else 'No'}")
+
+        try:
+            # Streaming tests
+            self.test_streaming_tool_call_clean_name()
+            time.sleep(1)
+
+            self.test_non_streaming_tool_call_clean_name()
+            time.sleep(1)
+
+            # Full round-trip tests
+            self.test_streaming_tool_continuation_with_top_level_conversation_id()
+            time.sleep(1)
+
+            self.test_non_streaming_tool_continuation_with_top_level_conversation_id()
+            time.sleep(1)
+
+        finally:
+            self.cleanup()
+
+        return self.print_summary()
+
+
+def main():
+    client = create_client_from_args(V1ToolCallTests, "DocsGPT V1 Tool-Call Integration Tests")
+    success = client.run_all()
+    sys.exit(0 if success else 1)
+
+
+if __name__ == "__main__":
+    main()
diff --git a/tests/llm/handlers/test_google.py b/tests/llm/handlers/test_google.py
index 900b2d5f..1a4558fc 100644
--- a/tests/llm/handlers/test_google.py
+++ b/tests/llm/handlers/test_google.py
@@ -196,9 +196,9 @@ class TestGoogleLLMHandler:
         assert result.finish_reason == "tool_calls"
 
     def test_create_tool_message(self):
-        """Test creating tool message."""
+        """Test creating tool message in standard format."""
         handler = GoogleLLMHandler()
-        
+
         tool_call = ToolCall(
             id="call_123",
             name="get_weather",
@@ -206,35 +206,26 @@ class TestGoogleLLMHandler:
             index=0
         )
         result = {"temperature": "25C", "condition": "cloudy"}
-        
+
         message = handler.create_tool_message(tool_call, result)
-        
-        expected = {
-            "role": "model",
-            "content": [
-                {
-                    "function_response": {
-                        "name": "get_weather",
-                        "response": {"result": result},
-                    }
-                }
-            ],
-        }
-        
-        assert message == expected
+
+        assert message["role"] == "tool"
+        assert message["tool_call_id"] == "call_123"
+        import json
+        assert json.loads(message["content"]) == result
 
     def test_create_tool_message_string_result(self):
         """Test creating tool message with string result."""
         handler = GoogleLLMHandler()
-        
+
         tool_call = ToolCall(id="call_456", name="get_time", arguments={})
         result = "2023-12-01 15:30:00 JST"
-        
+
         message = handler.create_tool_message(tool_call, result)
-        
-        assert message["role"] == "model"
-        assert message["content"][0]["function_response"]["response"]["result"] == result
-        assert message["content"][0]["function_response"]["name"] == "get_time"
+
+        assert message["role"] == "tool"
+        assert message["tool_call_id"] == "call_456"
+        assert message["content"] == result
 
     def test_iterate_stream(self):
         """Test stream iteration."""
diff --git a/tests/llm/handlers/test_llm_handlers.py b/tests/llm/handlers/test_llm_handlers.py
index 304d89fb..6baf04e8 100644
--- a/tests/llm/handlers/test_llm_handlers.py
+++ b/tests/llm/handlers/test_llm_handlers.py
@@ -621,6 +621,7 @@ class TestHandleToolCalls:
         agent._check_context_limit = Mock(return_value=False)
         agent.context_limit_reached = False
         agent.llm.__class__.__name__ = "MockLLM"
+        agent.tool_executor.check_pause = Mock(return_value=None)
 
         def fake_execute(tools_dict, call):
             yield {"type": "tool_call", "data": {"status": "pending"}}
@@ -641,7 +642,7 @@ class TestHandleToolCalls:
             while True:
                 events.append(next(gen))
         except StopIteration as e:
-            messages = e.value
+            messages, _pending = e.value
 
         assert any(e.get("type") == "tool_call" for e in events)
         assert len(messages) >= 2  # function_call + tool_message
@@ -675,6 +676,9 @@ class TestHandleToolCalls:
         agent = Mock()
         agent._check_context_limit = Mock(return_value=False)
         agent.context_limit_reached = False
+        agent.llm.__class__.__name__ = "MockLLM"
+        agent.tool_executor.check_pause = Mock(return_value=None)
+        agent.tool_executor._name_to_tool = {}
         agent._execute_tool_action = Mock(side_effect=RuntimeError("exec error"))
 
         call = ToolCall(id="c1", name="action_1", arguments="{}")
@@ -704,18 +708,17 @@ class TestHandleToolCalls:
             while True:
                 next(gen)
         except StopIteration as e:
-            messages = e.value
+            messages, _pending = e.value
 
+        # Standard format: thought_signature is on tool_calls items
         assistant_msgs = [
             m for m in messages
-            if m.get("role") == "assistant"
-            and isinstance(m.get("content"), list)
+            if m.get("role") == "assistant" and m.get("tool_calls")
         ]
         assert any(
-            "thought_signature" in item
+            tc.get("thought_signature") == "sig"
             for m in assistant_msgs
-            for item in m["content"]
-            if isinstance(item, dict)
+            for tc in m["tool_calls"]
         )
 
 
@@ -751,6 +754,7 @@ class TestHandleNonStreaming:
         agent._check_context_limit = Mock(return_value=False)
         agent.context_limit_reached = False
         agent.llm.__class__.__name__ = "MockLLM"
+        agent.tool_executor.check_pause = Mock(return_value=None)
 
         # First response requires tool call, second is final
         call_count = {"n": 0}
@@ -856,6 +860,7 @@ class TestHandleStreaming:
         agent._check_context_limit = Mock(return_value=False)
         agent.context_limit_reached = False
         agent.llm.__class__.__name__ = "MockLLM"
+        agent.tool_executor.check_pause = Mock(return_value=None)
 
         # First chunk has partial tool call, second completes it
         chunk1 = LLMResponse(
@@ -907,6 +912,7 @@ class TestHandleStreaming:
         agent.context_limit_reached = True
         agent._check_context_limit = Mock(return_value=True)
         agent.llm.__class__.__name__ = "MockLLM"
+        agent.tool_executor.check_pause = Mock(return_value=None)
 
         # Chunk finishes with tool_calls
         chunk = LLMResponse(
@@ -929,7 +935,7 @@ class TestHandleStreaming:
             def fake_handle_tool_calls(agent, calls, tools_dict, messages):
                 agent.context_limit_reached = True
                 yield {"type": "tool_call", "data": {"status": "skipped"}}
-                return messages
+                return messages, None
 
             handler.handle_tool_calls = fake_handle_tool_calls
 
@@ -1501,6 +1507,7 @@ class TestHandleToolCallsCompressionSuccess:
         agent._check_context_limit = Mock(side_effect=check_limit)
         agent.context_limit_reached = False
         agent.llm.__class__.__name__ = "MockLLM"
+        agent.tool_executor.check_pause = Mock(return_value=None)
 
         def fake_execute(tools_dict, call):
             yield {"type": "tool_call", "data": {"status": "pending"}}
@@ -1538,6 +1545,7 @@ class TestHandleToolCallsCompressionSuccess:
         agent = Mock()
         agent.context_limit_reached = False
         agent.llm.__class__.__name__ = "MockLLM"
+        agent.tool_executor.check_pause = Mock(return_value=None)
 
         exec_count = {"n": 0}
 
diff --git a/tests/llm/handlers/test_openai.py b/tests/llm/handlers/test_openai.py
index 64c89f6c..03494573 100644
--- a/tests/llm/handlers/test_openai.py
+++ b/tests/llm/handlers/test_openai.py
@@ -128,9 +128,9 @@ class TestOpenAILLMHandler:
         assert result.finish_reason == ""
 
     def test_create_tool_message(self):
-        """Test creating tool message."""
+        """Test creating tool message in standard format."""
         handler = OpenAILLMHandler()
-        
+
         tool_call = ToolCall(
             id="call_123",
             name="get_weather",
@@ -138,36 +138,26 @@ class TestOpenAILLMHandler:
             index=0
         )
         result = {"temperature": "72F", "condition": "sunny"}
-        
+
         message = handler.create_tool_message(tool_call, result)
-        
-        expected = {
-            "role": "tool",
-            "content": [
-                {
-                    "function_response": {
-                        "name": "get_weather",
-                        "response": {"result": result},
-                        "call_id": "call_123",
-                    }
-                }
-            ],
-        }
-        
-        assert message == expected
+
+        assert message["role"] == "tool"
+        assert message["tool_call_id"] == "call_123"
+        import json
+        assert json.loads(message["content"]) == result
 
     def test_create_tool_message_string_result(self):
         """Test creating tool message with string result."""
         handler = OpenAILLMHandler()
-        
+
         tool_call = ToolCall(id="call_456", name="get_time", arguments={})
         result = "2023-12-01 10:30:00"
-        
+
         message = handler.create_tool_message(tool_call, result)
-        
+
         assert message["role"] == "tool"
-        assert message["content"][0]["function_response"]["response"]["result"] == result
-        assert message["content"][0]["function_response"]["call_id"] == "call_456"
+        assert message["tool_call_id"] == "call_456"
+        assert message["content"] == result
 
     def test_iterate_stream(self):
         """Test stream iteration."""
diff --git a/tests/llm/test_base.py b/tests/llm/test_base.py
index c12bbdc7..e62d0186 100644
--- a/tests/llm/test_base.py
+++ b/tests/llm/test_base.py
@@ -478,11 +478,14 @@ class TestHandleToolCallsErrors:
         handler = ConcreteHandler()
         agent = MagicMock()
         agent._check_context_limit = MagicMock(return_value=False)
+        agent.llm.__class__.__name__ = "MockLLM"
+        agent.tool_executor.check_pause = MagicMock(return_value=None)
+        agent.tool_executor._name_to_tool = {"search": ("1", "search")}
         agent._execute_tool_action = MagicMock(
             side_effect=RuntimeError("tool failed")
         )
 
-        tool_call = ToolCall(id="tc1", name="search_1", arguments={"q": "test"})
+        tool_call = ToolCall(id="tc1", name="search", arguments={"q": "test"})
         tools_dict = {"1": {"name": "search_tool"}}
         messages = [{"role": "user", "content": "hi"}]
 
@@ -506,6 +509,9 @@ class TestHandleToolCallsErrors:
         handler = ConcreteHandler()
         agent = MagicMock()
         agent._check_context_limit = MagicMock(return_value=False)
+        agent.llm.__class__.__name__ = "MockLLM"
+        agent.tool_executor.check_pause = MagicMock(return_value=None)
+        agent.tool_executor._name_to_tool = {}
         agent._execute_tool_action = MagicMock(
             side_effect=RuntimeError("tool failed")
         )
@@ -1169,12 +1175,15 @@ class TestHandleToolCallsErrorsAdditional:
         handler = ConcreteHandler()
         agent = MagicMock()
         agent._check_context_limit = MagicMock(return_value=False)
+        agent.llm.__class__.__name__ = "MockLLM"
+        agent.tool_executor.check_pause = MagicMock(return_value=None)
+        agent.tool_executor._name_to_tool = {"do_thing": ("42", "do_thing")}
         agent._execute_tool_action = MagicMock(
             side_effect=RuntimeError("broken tool")
         )
 
         tool_call = ToolCall(
-            id="tc1", name="do_thing_42", arguments={"x": 1}
+            id="tc1", name="do_thing", arguments={"x": 1}
         )
         tools_dict = {"42": {"name": "my_tool"}}
         messages = [{"role": "user", "content": "go"}]
@@ -1188,7 +1197,7 @@ class TestHandleToolCallsErrorsAdditional:
             while True:
                 events.append(next(gen))
         except StopIteration as e:
-            final_messages = e.value
+            final_messages, _pending = e.value
 
         # Verify the error message was appended
         error_msgs = [
@@ -1205,12 +1214,17 @@ class TestHandleToolCallsErrorsAdditional:
         ]
         assert len(error_events) == 1
         assert error_events[0]["data"]["tool_name"] == "my_tool"
-        assert error_events[0]["data"]["action_name"] == "do_thing_42"
+        assert error_events[0]["data"]["action_name"] == "do_thing"
 
     def test_tool_error_with_no_context_check(self):
         """Cover line 660: messages.copy() at start of handle_tool_calls."""
         handler = ConcreteHandler()
         agent = MagicMock(spec=[])  # No _check_context_limit attribute
+        agent.llm = MagicMock()
+        agent.llm.__class__.__name__ = "MockLLM"
+        agent.tool_executor = MagicMock()
+        agent.tool_executor.check_pause = MagicMock(return_value=None)
+        agent.tool_executor._name_to_tool = {}
         agent._execute_tool_action = MagicMock(
             side_effect=ValueError("bad args")
         )
diff --git a/tests/test_agent_token_tracking.py b/tests/test_agent_token_tracking.py
index e168567a..bdb21549 100644
--- a/tests/test_agent_token_tracking.py
+++ b/tests/test_agent_token_tracking.py
@@ -176,6 +176,9 @@ class TestLLMHandlerTokenTracking:
         # Create mock agent that hits limit on second tool
         mock_agent = Mock()
         mock_agent.context_limit_reached = False
+        mock_agent.llm.__class__.__name__ = "MockLLM"
+        mock_agent.tool_executor.check_pause = Mock(return_value=None)
+        mock_agent.tool_executor._name_to_tool = {}
 
         call_count = [0]
 
@@ -235,6 +238,9 @@ class TestLLMHandlerTokenTracking:
         mock_agent = Mock()
         mock_agent.context_limit_reached = False
         mock_agent._check_context_limit = Mock(return_value=False)
+        mock_agent.llm.__class__.__name__ = "MockLLM"
+        mock_agent.tool_executor.check_pause = Mock(return_value=None)
+        mock_agent.tool_executor._name_to_tool = {}
         mock_agent._execute_tool_action = Mock(
             return_value=iter([{"type": "tool_call", "data": {}}])
         )
@@ -300,7 +306,7 @@ class TestLLMHandlerTokenTracking:
 
         def tool_handler_gen(*args):
             yield {"type": "tool", "data": {}}
-            return []
+            return [], None
 
         # Mock handle_tool_calls to return messages and set flag
         with patch.object(
diff --git a/tests/test_client_tools.py b/tests/test_client_tools.py
new file mode 100644
index 00000000..6c4cd6d8
--- /dev/null
+++ b/tests/test_client_tools.py
@@ -0,0 +1,430 @@
+"""Tests for client-side tools (Phase 2).
+
+Covers merge_client_tools, prepare_tools_for_llm with client tools,
+check_pause for client-side tools, and the full flow through the handler.
+"""
+
+from unittest.mock import Mock
+
+import pytest
+
+from application.agents.tool_executor import ToolExecutor
+from application.llm.handlers.base import LLMHandler, LLMResponse, ToolCall
+
+
+# ---------------------------------------------------------------------------
+# ToolExecutor.merge_client_tools
+# ---------------------------------------------------------------------------
+
+
+@pytest.mark.unit
+class TestMergeClientTools:
+
+    def test_merge_single_tool(self):
+        executor = ToolExecutor()
+        tools_dict = {}
+        client_tools = [
+            {
+                "type": "function",
+                "function": {
+                    "name": "get_weather",
+                    "description": "Get current weather",
+                    "parameters": {
+                        "type": "object",
+                        "properties": {
+                            "city": {"type": "string", "description": "City name"}
+                        },
+                        "required": ["city"],
+                    },
+                },
+            }
+        ]
+
+        result = executor.merge_client_tools(tools_dict, client_tools)
+
+        assert "ct0" in result
+        tool = result["ct0"]
+        assert tool["name"] == "get_weather"
+        assert tool["client_side"] is True
+        assert len(tool["actions"]) == 1
+        assert tool["actions"][0]["name"] == "get_weather"
+        assert tool["actions"][0]["active"] is True
+        assert "city" in tool["actions"][0]["parameters"]["properties"]
+
+    def test_merge_multiple_tools(self):
+        executor = ToolExecutor()
+        tools_dict = {"0": {"name": "existing_tool", "actions": []}}
+        client_tools = [
+            {"type": "function", "function": {"name": "tool_a", "description": "A"}},
+            {"type": "function", "function": {"name": "tool_b", "description": "B"}},
+        ]
+
+        result = executor.merge_client_tools(tools_dict, client_tools)
+
+        # Original tool still present
+        assert "0" in result
+        # Client tools added
+        assert "ct0" in result
+        assert "ct1" in result
+        assert result["ct0"]["name"] == "tool_a"
+        assert result["ct1"]["name"] == "tool_b"
+
+    def test_merge_bare_format(self):
+        """Accept simplified format without the outer 'function' wrapper."""
+        executor = ToolExecutor()
+        tools_dict = {}
+        client_tools = [
+            {"name": "simple_tool", "description": "Simple", "parameters": {}},
+        ]
+
+        result = executor.merge_client_tools(tools_dict, client_tools)
+
+        assert "ct0" in result
+        assert result["ct0"]["name"] == "simple_tool"
+
+    def test_merge_preserves_existing_tools(self):
+        executor = ToolExecutor()
+        tools_dict = {
+            "abc123": {
+                "name": "brave",
+                "actions": [{"name": "search", "active": True}],
+            }
+        }
+        client_tools = [
+            {"type": "function", "function": {"name": "my_tool", "description": "D"}},
+        ]
+
+        executor.merge_client_tools(tools_dict, client_tools)
+
+        assert "abc123" in tools_dict
+        assert tools_dict["abc123"]["name"] == "brave"
+        assert "ct0" in tools_dict
+
+    def test_merge_empty_list(self):
+        executor = ToolExecutor()
+        tools_dict = {"0": {"name": "existing"}}
+
+        executor.merge_client_tools(tools_dict, [])
+
+        assert len(tools_dict) == 1
+
+
+# ---------------------------------------------------------------------------
+# prepare_tools_for_llm with client tools
+# ---------------------------------------------------------------------------
+
+
+@pytest.mark.unit
+class TestPrepareClientToolsForLlm:
+
+    def test_client_tools_included_in_llm_schema(self):
+        executor = ToolExecutor()
+        tools_dict = {}
+        client_tools = [
+            {
+                "type": "function",
+                "function": {
+                    "name": "get_weather",
+                    "description": "Get weather",
+                    "parameters": {
+                        "type": "object",
+                        "properties": {
+                            "city": {"type": "string"}
+                        },
+                        "required": ["city"],
+                    },
+                },
+            }
+        ]
+        executor.merge_client_tools(tools_dict, client_tools)
+
+        schemas = executor.prepare_tools_for_llm(tools_dict)
+
+        assert len(schemas) == 1
+        assert schemas[0]["type"] == "function"
+        assert schemas[0]["function"]["name"] == "get_weather"
+        assert schemas[0]["function"]["description"] == "Get weather"
+        # Parameters passed through directly (not filtered by _build_tool_parameters)
+        assert "city" in schemas[0]["function"]["parameters"]["properties"]
+        assert schemas[0]["function"]["parameters"]["required"] == ["city"]
+
+    def test_mixed_server_and_client_tools(self):
+        executor = ToolExecutor()
+        tools_dict = {
+            "t1": {
+                "name": "test_tool",
+                "actions": [
+                    {
+                        "name": "do_thing",
+                        "description": "Does a thing",
+                        "active": True,
+                        "parameters": {
+                            "properties": {
+                                "query": {
+                                    "type": "string",
+                                    "filled_by_llm": True,
+                                    "required": True,
+                                }
+                            }
+                        },
+                    }
+                ],
+            }
+        }
+        client_tools = [
+            {
+                "type": "function",
+                "function": {
+                    "name": "local_fn",
+                    "description": "Local function",
+                    "parameters": {"type": "object", "properties": {}},
+                },
+            }
+        ]
+        executor.merge_client_tools(tools_dict, client_tools)
+
+        schemas = executor.prepare_tools_for_llm(tools_dict)
+
+        assert len(schemas) == 2
+        names = {s["function"]["name"] for s in schemas}
+        assert "do_thing" in names
+        assert "local_fn" in names
+
+
+# ---------------------------------------------------------------------------
+# get_tools auto-merges client_tools
+# ---------------------------------------------------------------------------
+
+
+@pytest.mark.unit
+class TestGetToolsAutoMerge:
+
+    def test_get_tools_merges_client_tools(self, mock_mongo_db):
+        executor = ToolExecutor(user="alice")
+        executor.client_tools = [
+            {
+                "type": "function",
+                "function": {"name": "my_fn", "description": "test"},
+            }
+        ]
+
+        tools = executor.get_tools()
+
+        assert any(
+            t.get("client_side") is True for t in tools.values()
+        ), "Client tools should be merged into tools_dict"
+
+    def test_get_tools_no_client_tools(self, mock_mongo_db):
+        executor = ToolExecutor(user="alice")
+
+        tools = executor.get_tools()
+
+        assert not any(
+            t.get("client_side") for t in tools.values()
+        )
+
+
+# ---------------------------------------------------------------------------
+# check_pause for client-side tools
+# ---------------------------------------------------------------------------
+
+
+@pytest.mark.unit
+class TestCheckPauseClientTools:
+
+    def _make_call(self, name="action_0", call_id="c1"):
+        call = Mock()
+        call.name = name
+        call.id = call_id
+        call.arguments = "{}"
+        call.thought_signature = None
+        return call
+
+    def test_client_tool_triggers_pause(self):
+        executor = ToolExecutor()
+        tools_dict = {
+            "ct0": {
+                "name": "get_weather",
+                "client_side": True,
+                "actions": [
+                    {"name": "get_weather", "active": True, "parameters": {}},
+                ],
+            }
+        }
+        executor.prepare_tools_for_llm(tools_dict)
+        call = self._make_call(name="get_weather")
+        result = executor.check_pause(tools_dict, call, "OpenAILLM")
+
+        assert result is not None
+        assert result["pause_type"] == "requires_client_execution"
+        assert result["tool_name"] == "get_weather"
+        assert result["tool_id"] == "ct0"
+
+    def test_server_tool_no_pause(self):
+        executor = ToolExecutor()
+        tools_dict = {
+            "0": {
+                "name": "brave",
+                "actions": [
+                    {"name": "search", "active": True, "parameters": {}},
+                ],
+            }
+        }
+        executor.prepare_tools_for_llm(tools_dict)
+        call = self._make_call(name="search")
+        result = executor.check_pause(tools_dict, call, "OpenAILLM")
+
+        assert result is None
+
+
+# ---------------------------------------------------------------------------
+# Handler flow: client tool causes pause
+# ---------------------------------------------------------------------------
+
+
+class ConcreteHandler(LLMHandler):
+    """Minimal concrete handler for testing."""
+
+    def parse_response(self, response):
+        return LLMResponse(
+            content=str(response), tool_calls=[], finish_reason="stop",
+            raw_response=response,
+        )
+
+    def create_tool_message(self, tool_call, result):
+        return {"role": "tool", "content": str(result)}
+
+    def _iterate_stream(self, response):
+        for chunk in response:
+            yield chunk
+
+
+@pytest.mark.unit
+class TestHandlerClientToolPause:
+
+    def test_client_tool_pauses_stream(self):
+        """When LLM calls a client-side tool, handler yields tool_calls_pending."""
+        handler = ConcreteHandler()
+
+        agent = Mock()
+        agent.llm = Mock()
+        agent.model_id = "test"
+        agent.tools = []
+        agent._check_context_limit = Mock(return_value=False)
+        agent.context_limit_reached = False
+        agent.llm.__class__.__name__ = "MockLLM"
+
+        # check_pause returns pause info for client tool
+        agent.tool_executor.check_pause = Mock(return_value={
+            "call_id": "c1",
+            "name": "get_weather",
+            "tool_name": "get_weather",
+            "tool_id": "ct0",
+            "action_name": "get_weather",
+            "llm_name": "get_weather",
+            "arguments": {"city": "SF"},
+            "pause_type": "requires_client_execution",
+            "thought_signature": None,
+        })
+        agent.tool_executor._name_to_tool = {"get_weather": ("ct0", "get_weather")}
+
+        # Simulate streaming: one chunk with tool_calls finish_reason
+        chunk = LLMResponse(
+            content="",
+            tool_calls=[ToolCall(id="c1", name="get_weather", arguments='{"city": "SF"}', index=0)],
+            finish_reason="tool_calls",
+            raw_response={},
+        )
+        handler.parse_response = lambda c: c
+        handler._iterate_stream = lambda r: iter(r)
+
+        gen = handler.handle_streaming(
+            agent, [chunk], {"ct0": {"name": "get_weather", "client_side": True}}, []
+        )
+        events = list(gen)
+
+        # Should have a requires_client_execution event
+        client_events = [
+            e for e in events
+            if isinstance(e, dict)
+            and e.get("type") == "tool_call"
+            and e.get("data", {}).get("status") == "requires_client_execution"
+        ]
+        assert len(client_events) == 1
+
+        # Should have a tool_calls_pending event
+        pending_events = [
+            e for e in events
+            if isinstance(e, dict) and e.get("type") == "tool_calls_pending"
+        ]
+        assert len(pending_events) == 1
+
+    def test_mixed_server_and_client_tools_in_batch(self):
+        """Server tool executes, client tool pauses."""
+        handler = ConcreteHandler()
+
+        agent = Mock()
+        agent._check_context_limit = Mock(return_value=False)
+        agent.context_limit_reached = False
+        agent.llm.__class__.__name__ = "MockLLM"
+
+        call_count = {"n": 0}
+
+        def check_pause_fn(tools_dict, call, llm_class):
+            call_count["n"] += 1
+            if call_count["n"] == 2:  # Second tool is client-side
+                return {
+                    "call_id": "c2",
+                    "name": "get_weather",
+                    "tool_name": "get_weather",
+                    "tool_id": "ct0",
+                    "action_name": "get_weather",
+                    "llm_name": "get_weather",
+                    "arguments": {},
+                    "pause_type": "requires_client_execution",
+                    "thought_signature": None,
+                }
+            return None
+
+        agent.tool_executor.check_pause = Mock(side_effect=check_pause_fn)
+        agent.tool_executor._name_to_tool = {
+            "search": ("0", "search"),
+            "get_weather": ("ct0", "get_weather"),
+        }
+
+        def fake_execute(tools_dict, call):
+            yield {"type": "tool_call", "data": {"status": "pending"}}
+            return ("server result", call.id)
+
+        agent._execute_tool_action = Mock(side_effect=fake_execute)
+
+        calls = [
+            ToolCall(id="c1", name="search", arguments="{}"),
+            ToolCall(id="c2", name="get_weather", arguments="{}"),
+        ]
+
+        gen = handler.handle_tool_calls(
+            agent,
+            calls,
+            {
+                "0": {"name": "search"},
+                "ct0": {"name": "get_weather", "client_side": True},
+            },
+            [],
+        )
+
+        events = []
+        messages = None
+        pending = None
+        try:
+            while True:
+                events.append(next(gen))
+        except StopIteration as e:
+            messages, pending = e.value
+
+        # Server tool executed
+        assert agent._execute_tool_action.call_count == 1
+        # Client tool pending
+        assert pending is not None
+        assert len(pending) == 1
+        assert pending[0]["pause_type"] == "requires_client_execution"
diff --git a/tests/test_continuation.py b/tests/test_continuation.py
new file mode 100644
index 00000000..2858290c
--- /dev/null
+++ b/tests/test_continuation.py
@@ -0,0 +1,667 @@
+"""Tests for the continuation infrastructure (Phase 1).
+
+Covers ContinuationService, ToolExecutor.check_pause, handler pause
+signaling, BaseAgent.gen_continuation, and request validation.
+"""
+
+from unittest.mock import Mock
+
+import pytest
+
+from application.agents.tool_executor import ToolExecutor
+from application.llm.handlers.base import LLMHandler, LLMResponse, ToolCall
+
+
+# ---------------------------------------------------------------------------
+# ContinuationService
+# ---------------------------------------------------------------------------
+
+
+@pytest.mark.unit
+class TestContinuationService:
+
+    def test_save_and_load(self, mock_mongo_db):
+        from application.api.answer.services.continuation_service import (
+            ContinuationService,
+        )
+
+        svc = ContinuationService()
+        svc.save_state(
+            conversation_id="conv-1",
+            user="alice",
+            messages=[{"role": "user", "content": "hi"}],
+            pending_tool_calls=[{"call_id": "c1", "pause_type": "awaiting_approval"}],
+            tools_dict={"0": {"name": "test_tool"}},
+            tool_schemas=[{"type": "function", "function": {"name": "act_0"}}],
+            agent_config={"model_id": "gpt-4"},
+        )
+
+        state = svc.load_state("conv-1", "alice")
+        assert state is not None
+        assert state["conversation_id"] == "conv-1"
+        assert state["user"] == "alice"
+        assert len(state["messages"]) == 1
+        assert len(state["pending_tool_calls"]) == 1
+        assert state["agent_config"]["model_id"] == "gpt-4"
+
+    def test_load_returns_none_when_missing(self, mock_mongo_db):
+        from application.api.answer.services.continuation_service import (
+            ContinuationService,
+        )
+
+        svc = ContinuationService()
+        assert svc.load_state("nonexistent", "alice") is None
+
+    def test_delete_state(self, mock_mongo_db):
+        from application.api.answer.services.continuation_service import (
+            ContinuationService,
+        )
+
+        svc = ContinuationService()
+        svc.save_state(
+            conversation_id="conv-2",
+            user="bob",
+            messages=[],
+            pending_tool_calls=[],
+            tools_dict={},
+            tool_schemas=[],
+            agent_config={},
+        )
+        assert svc.delete_state("conv-2", "bob") is True
+        assert svc.load_state("conv-2", "bob") is None
+
+    def test_delete_nonexistent(self, mock_mongo_db):
+        from application.api.answer.services.continuation_service import (
+            ContinuationService,
+        )
+
+        svc = ContinuationService()
+        assert svc.delete_state("nope", "nope") is False
+
+    def test_upsert_replaces_existing(self, mock_mongo_db):
+        from application.api.answer.services.continuation_service import (
+            ContinuationService,
+        )
+
+        svc = ContinuationService()
+        svc.save_state(
+            conversation_id="conv-3",
+            user="carol",
+            messages=[{"role": "user", "content": "v1"}],
+            pending_tool_calls=[],
+            tools_dict={},
+            tool_schemas=[],
+            agent_config={},
+        )
+        svc.save_state(
+            conversation_id="conv-3",
+            user="carol",
+            messages=[{"role": "user", "content": "v2"}],
+            pending_tool_calls=[{"call_id": "c2"}],
+            tools_dict={},
+            tool_schemas=[],
+            agent_config={},
+        )
+        state = svc.load_state("conv-3", "carol")
+        assert state["messages"][0]["content"] == "v2"
+        assert len(state["pending_tool_calls"]) == 1
+
+
+# ---------------------------------------------------------------------------
+# ToolExecutor.check_pause
+# ---------------------------------------------------------------------------
+
+
+@pytest.mark.unit
+class TestCheckPause:
+
+    def _make_call(self, name="action_0", call_id="c1", arguments="{}"):
+        call = Mock()
+        call.name = name
+        call.id = call_id
+        call.arguments = arguments
+        call.thought_signature = None
+        return call
+
+    def test_returns_none_for_normal_tool(self):
+        executor = ToolExecutor()
+        tools_dict = {
+            "0": {
+                "name": "brave",
+                "actions": [
+                    {"name": "search", "active": True, "parameters": {}},
+                ],
+            }
+        }
+        call = self._make_call(name="search_0")
+        result = executor.check_pause(tools_dict, call, "OpenAILLM")
+        assert result is None
+
+    def test_returns_pause_for_client_side_tool(self):
+        executor = ToolExecutor()
+        tools_dict = {
+            "0": {
+                "name": "get_weather",
+                "client_side": True,
+                "actions": [
+                    {"name": "get_weather", "active": True, "parameters": {}},
+                ],
+            }
+        }
+        call = self._make_call(name="get_weather_0")
+        result = executor.check_pause(tools_dict, call, "OpenAILLM")
+        assert result is not None
+        assert result["pause_type"] == "requires_client_execution"
+        assert result["call_id"] == "c1"
+        assert result["tool_id"] == "0"
+
+    def test_returns_pause_for_approval_required(self):
+        executor = ToolExecutor()
+        tools_dict = {
+            "0": {
+                "name": "telegram",
+                "actions": [
+                    {
+                        "name": "send_msg",
+                        "active": True,
+                        "require_approval": True,
+                        "parameters": {},
+                    },
+                ],
+            }
+        }
+        call = self._make_call(name="send_msg_0")
+        result = executor.check_pause(tools_dict, call, "OpenAILLM")
+        assert result is not None
+        assert result["pause_type"] == "awaiting_approval"
+
+    def test_returns_none_when_parse_fails(self):
+        executor = ToolExecutor()
+        call = self._make_call(name="bad_name_no_id", arguments="not json")
+        # Bad arguments will cause parse error -> None
+        result = executor.check_pause({}, call, "OpenAILLM")
+        assert result is None
+
+    def test_returns_none_when_tool_not_in_dict(self):
+        executor = ToolExecutor()
+        call = self._make_call(name="action_99")
+        result = executor.check_pause({"0": {"name": "t"}}, call, "OpenAILLM")
+        assert result is None
+
+    def test_api_tool_approval(self):
+        executor = ToolExecutor()
+        tools_dict = {
+            "0": {
+                "name": "api_tool",
+                "config": {
+                    "actions": {
+                        "delete_user": {
+                            "name": "delete_user",
+                            "require_approval": True,
+                            "url": "http://example.com",
+                            "method": "DELETE",
+                            "active": True,
+                        }
+                    }
+                },
+            }
+        }
+        call = self._make_call(name="delete_user_0")
+        result = executor.check_pause(tools_dict, call, "OpenAILLM")
+        assert result is not None
+        assert result["pause_type"] == "awaiting_approval"
+
+
+# ---------------------------------------------------------------------------
+# Handler pause signaling (handle_tool_calls returns pending_actions)
+# ---------------------------------------------------------------------------
+
+
+class ConcreteHandler(LLMHandler):
+    """Minimal concrete handler for testing."""
+
+    def parse_response(self, response):
+        return LLMResponse(
+            content=str(response), tool_calls=[], finish_reason="stop",
+            raw_response=response,
+        )
+
+    def create_tool_message(self, tool_call, result):
+        return {
+            "role": "tool",
+            "content": [
+                {
+                    "function_response": {
+                        "name": tool_call.name,
+                        "response": {"result": result},
+                        "call_id": tool_call.id,
+                    }
+                }
+            ],
+        }
+
+    def _iterate_stream(self, response):
+        for chunk in response:
+            yield chunk
+
+
+@pytest.mark.unit
+class TestHandlerPauseSignaling:
+
+    def _make_agent(self):
+        agent = Mock()
+        agent._check_context_limit = Mock(return_value=False)
+        agent.context_limit_reached = False
+        agent.llm.__class__.__name__ = "MockLLM"
+        agent.tool_executor.check_pause = Mock(return_value=None)
+
+        def fake_execute(tools_dict, call):
+            yield {"type": "tool_call", "data": {"status": "pending"}}
+            return ("tool result", call.id)
+
+        agent._execute_tool_action = Mock(side_effect=fake_execute)
+        return agent
+
+    def test_no_pause_returns_none_pending(self):
+        handler = ConcreteHandler()
+        agent = self._make_agent()
+        call = ToolCall(id="c1", name="action_0", arguments="{}")
+
+        gen = handler.handle_tool_calls(agent, [call], {"0": {"name": "t"}}, [])
+        events = []
+        messages = None
+        pending = "NOT_SET"
+        try:
+            while True:
+                events.append(next(gen))
+        except StopIteration as e:
+            messages, pending = e.value
+
+        assert pending is None
+        assert messages is not None
+
+    def test_pause_returns_pending_actions(self):
+        handler = ConcreteHandler()
+        agent = self._make_agent()
+        agent.tool_executor.check_pause = Mock(return_value={
+            "call_id": "c1",
+            "name": "send_msg_0",
+            "tool_name": "telegram",
+            "tool_id": "0",
+            "action_name": "send_msg",
+            "arguments": {"text": "hello"},
+            "pause_type": "awaiting_approval",
+            "thought_signature": None,
+        })
+
+        call = ToolCall(id="c1", name="send_msg_0", arguments='{"text": "hello"}')
+        gen = handler.handle_tool_calls(
+            agent, [call], {"0": {"name": "telegram"}}, []
+        )
+
+        events = []
+        pending = None
+        try:
+            while True:
+                events.append(next(gen))
+        except StopIteration as e:
+            messages, pending = e.value
+
+        assert pending is not None
+        assert len(pending) == 1
+        assert pending[0]["pause_type"] == "awaiting_approval"
+
+        # Should have yielded a tool_call event with awaiting_approval status
+        pause_events = [
+            e for e in events
+            if e.get("type") == "tool_call"
+            and e.get("data", {}).get("status") == "awaiting_approval"
+        ]
+        assert len(pause_events) == 1
+
+    def test_mixed_execute_and_pause(self):
+        """One tool executes, another needs approval."""
+        handler = ConcreteHandler()
+        agent = self._make_agent()
+
+        call_count = {"n": 0}
+
+        def selective_pause(tools_dict, call, llm_class):
+            call_count["n"] += 1
+            if call_count["n"] == 2:
+                return {
+                    "call_id": "c2",
+                    "name": "danger_0",
+                    "tool_name": "danger",
+                    "tool_id": "0",
+                    "action_name": "danger",
+                    "arguments": {},
+                    "pause_type": "awaiting_approval",
+                    "thought_signature": None,
+                }
+            return None
+
+        agent.tool_executor.check_pause = Mock(side_effect=selective_pause)
+
+        calls = [
+            ToolCall(id="c1", name="safe_0", arguments="{}"),
+            ToolCall(id="c2", name="danger_0", arguments="{}"),
+        ]
+        gen = handler.handle_tool_calls(
+            agent, calls, {"0": {"name": "multi"}}, []
+        )
+
+        events = []
+        try:
+            while True:
+                events.append(next(gen))
+        except StopIteration as e:
+            messages, pending = e.value
+
+        # First tool was executed normally
+        assert agent._execute_tool_action.call_count == 1
+        # Second tool is pending
+        assert pending is not None
+        assert len(pending) == 1
+        assert pending[0]["call_id"] == "c2"
+
+
+# ---------------------------------------------------------------------------
+# handle_streaming yields tool_calls_pending
+# ---------------------------------------------------------------------------
+
+
+@pytest.mark.unit
+class TestStreamingPause:
+
+    def test_streaming_yields_tool_calls_pending(self):
+        handler = ConcreteHandler()
+        agent = Mock()
+        agent.llm = Mock()
+        agent.model_id = "test"
+        agent.tools = []
+        agent._check_context_limit = Mock(return_value=False)
+        agent.context_limit_reached = False
+        agent.llm.__class__.__name__ = "MockLLM"
+
+        pause_info = {
+            "call_id": "c1",
+            "name": "fn_0",
+            "tool_name": "test",
+            "tool_id": "0",
+            "action_name": "fn",
+            "arguments": {},
+            "pause_type": "awaiting_approval",
+            "thought_signature": None,
+        }
+        agent.tool_executor.check_pause = Mock(return_value=pause_info)
+
+        chunk = LLMResponse(
+            content="",
+            tool_calls=[ToolCall(id="c1", name="fn_0", arguments="{}", index=0)],
+            finish_reason="tool_calls",
+            raw_response={},
+        )
+        handler.parse_response = lambda c: c
+
+        def fake_iterate(response):
+            yield from response
+
+        handler._iterate_stream = fake_iterate
+
+        gen = handler.handle_streaming(agent, [chunk], {"0": {"name": "t"}}, [])
+        events = list(gen)
+
+        # Should contain a tool_calls_pending event
+        pending_events = [
+            e for e in events
+            if isinstance(e, dict) and e.get("type") == "tool_calls_pending"
+        ]
+        assert len(pending_events) == 1
+        assert len(pending_events[0]["data"]["pending_tool_calls"]) == 1
+
+        # Agent should have _pending_continuation set
+        assert hasattr(agent, "_pending_continuation")
+
+
+# ---------------------------------------------------------------------------
+# BaseAgent.gen_continuation
+# ---------------------------------------------------------------------------
+
+
+@pytest.mark.unit
+class TestGenContinuation:
+
+    def test_approved_tool_executes(self):
+        """When a tool action is approved, the tool is executed."""
+        from application.agents.classic_agent import ClassicAgent
+
+        mock_llm = Mock()
+        mock_llm._supports_tools = True
+        mock_llm.gen_stream = Mock(return_value=iter(["Final answer"]))
+        mock_llm._supports_structured_output = Mock(return_value=False)
+        mock_llm.__class__.__name__ = "MockLLM"
+
+        mock_handler = Mock()
+        mock_handler.process_message_flow = Mock(return_value=iter([]))
+        mock_handler.create_tool_message = Mock(
+            return_value={"role": "tool", "content": [{"function_response": {
+                "name": "act_0", "response": {"result": "done"}, "call_id": "c1"
+            }}]}
+        )
+
+        mock_executor = Mock()
+        mock_executor.tool_calls = []
+        mock_executor.prepare_tools_for_llm = Mock(return_value=[])
+        mock_executor.get_truncated_tool_calls = Mock(return_value=[])
+
+        def fake_execute(tools_dict, call, llm_class):
+            yield {"type": "tool_call", "data": {"status": "pending"}}
+            return ("result_data", "c1")
+
+        mock_executor.execute = Mock(side_effect=fake_execute)
+
+        agent = ClassicAgent(
+            endpoint="stream",
+            llm_name="openai",
+            model_id="gpt-4",
+            api_key="test",
+            llm=mock_llm,
+            llm_handler=mock_handler,
+            tool_executor=mock_executor,
+        )
+
+        messages = [{"role": "system", "content": "You are helpful."}]
+        tools_dict = {"0": {"name": "test_tool"}}
+        pending = [
+            {
+                "call_id": "c1",
+                "name": "act_0",
+                "tool_name": "test_tool",
+                "tool_id": "0",
+                "action_name": "act",
+                "arguments": {"q": "test"},
+                "pause_type": "awaiting_approval",
+                "thought_signature": None,
+            }
+        ]
+        tool_actions = [{"call_id": "c1", "decision": "approved"}]
+
+        list(agent.gen_continuation(messages, tools_dict, pending, tool_actions))
+
+        # Tool should have been executed
+        assert mock_executor.execute.called
+
+    def test_denied_tool_sends_denial(self):
+        """When a tool action is denied, a denial message is added."""
+        from application.agents.classic_agent import ClassicAgent
+
+        mock_llm = Mock()
+        mock_llm._supports_tools = True
+        mock_llm.gen_stream = Mock(return_value=iter(["Answer"]))
+        mock_llm._supports_structured_output = Mock(return_value=False)
+        mock_llm.__class__.__name__ = "MockLLM"
+
+        mock_handler = Mock()
+        mock_handler.process_message_flow = Mock(return_value=iter([]))
+        mock_handler.create_tool_message = Mock(
+            return_value={"role": "tool", "content": "denied"}
+        )
+
+        mock_executor = Mock()
+        mock_executor.tool_calls = []
+        mock_executor.prepare_tools_for_llm = Mock(return_value=[])
+        mock_executor.get_truncated_tool_calls = Mock(return_value=[])
+
+        agent = ClassicAgent(
+            endpoint="stream",
+            llm_name="openai",
+            model_id="gpt-4",
+            api_key="test",
+            llm=mock_llm,
+            llm_handler=mock_handler,
+            tool_executor=mock_executor,
+        )
+
+        messages = [{"role": "system", "content": "test"}]
+        pending = [
+            {
+                "call_id": "c1",
+                "name": "danger_0",
+                "tool_name": "danger",
+                "tool_id": "0",
+                "action_name": "danger",
+                "arguments": {},
+                "pause_type": "awaiting_approval",
+                "thought_signature": None,
+            }
+        ]
+        tool_actions = [
+            {"call_id": "c1", "decision": "denied", "comment": "too risky"}
+        ]
+
+        events = list(
+            agent.gen_continuation(messages, {"0": {"name": "danger"}}, pending, tool_actions)
+        )
+
+        # Should have a denied tool_call event
+        denied = [
+            e for e in events
+            if isinstance(e, dict)
+            and e.get("type") == "tool_call"
+            and e.get("data", {}).get("status") == "denied"
+        ]
+        assert len(denied) == 1
+
+        # create_tool_message should have been called with denial text
+        denial_arg = mock_handler.create_tool_message.call_args[0][1]
+        assert "denied" in denial_arg.lower()
+        assert "too risky" in denial_arg
+
+    def test_client_result_appended(self):
+        """Client-provided tool result is added to messages."""
+        from application.agents.classic_agent import ClassicAgent
+
+        mock_llm = Mock()
+        mock_llm._supports_tools = True
+        mock_llm.gen_stream = Mock(return_value=iter(["Done"]))
+        mock_llm._supports_structured_output = Mock(return_value=False)
+        mock_llm.__class__.__name__ = "MockLLM"
+
+        mock_handler = Mock()
+        mock_handler.process_message_flow = Mock(return_value=iter([]))
+        mock_handler.create_tool_message = Mock(
+            return_value={"role": "tool", "content": "client result"}
+        )
+
+        mock_executor = Mock()
+        mock_executor.tool_calls = []
+        mock_executor.prepare_tools_for_llm = Mock(return_value=[])
+        mock_executor.get_truncated_tool_calls = Mock(return_value=[])
+
+        agent = ClassicAgent(
+            endpoint="stream",
+            llm_name="openai",
+            model_id="gpt-4",
+            api_key="test",
+            llm=mock_llm,
+            llm_handler=mock_handler,
+            tool_executor=mock_executor,
+        )
+
+        messages = [{"role": "system", "content": "test"}]
+        pending = [
+            {
+                "call_id": "c1",
+                "name": "weather_0",
+                "tool_name": "weather",
+                "tool_id": "0",
+                "action_name": "weather",
+                "arguments": {"city": "SF"},
+                "pause_type": "requires_client_execution",
+                "thought_signature": None,
+            }
+        ]
+        tool_actions = [{"call_id": "c1", "result": {"temp": "72F"}}]
+
+        events = list(
+            agent.gen_continuation(messages, {"0": {"name": "weather"}}, pending, tool_actions)
+        )
+
+        # create_tool_message was called with the client result
+        result_arg = mock_handler.create_tool_message.call_args[0][1]
+        assert "72F" in result_arg
+
+        # Should have a completed tool_call event
+        completed = [
+            e for e in events
+            if isinstance(e, dict)
+            and e.get("type") == "tool_call"
+            and e.get("data", {}).get("status") == "completed"
+        ]
+        assert len(completed) == 1
+
+
+# ---------------------------------------------------------------------------
+# validate_request
+# ---------------------------------------------------------------------------
+
+
+@pytest.mark.unit
+class TestValidateRequest:
+
+    @pytest.fixture(autouse=True)
+    def _app_context(self):
+        from flask import Flask
+        app = Flask(__name__)
+        with app.app_context():
+            yield
+
+    def test_continuation_request_without_question(self, mock_mongo_db):
+        from application.api.answer.routes.base import BaseAnswerResource
+
+        base = BaseAnswerResource()
+        data = {
+            "conversation_id": "conv-1",
+            "tool_actions": [{"call_id": "c1", "decision": "approved"}],
+        }
+        result = base.validate_request(data)
+        assert result is None  # Valid
+
+    def test_continuation_request_missing_conversation_id(self, mock_mongo_db):
+        from application.api.answer.routes.base import BaseAnswerResource
+
+        base = BaseAnswerResource()
+        data = {
+            "tool_actions": [{"call_id": "c1", "decision": "approved"}],
+        }
+        result = base.validate_request(data)
+        assert result is not None  # Error — missing conversation_id
+
+    def test_normal_request_still_requires_question(self, mock_mongo_db):
+        from application.api.answer.routes.base import BaseAnswerResource
+
+        base = BaseAnswerResource()
+        data = {"conversation_id": "conv-1"}
+        result = base.validate_request(data)
+        assert result is not None  # Error — missing question
diff --git a/tests/test_remaining_coverage.py b/tests/test_remaining_coverage.py
index e27f86f2..62d430bb 100644
--- a/tests/test_remaining_coverage.py
+++ b/tests/test_remaining_coverage.py
@@ -1238,7 +1238,8 @@ class TestEmbeddingPipelineAddDocWithRetry:
         # NUL characters should be removed
         assert "\x00" not in doc.page_content
 
-    def test_add_text_to_store_with_retry_failure(self):
+    @patch("time.sleep", return_value=None)
+    def test_add_text_to_store_with_retry_failure(self, _mock_sleep):
         from application.parser.embedding_pipeline import add_text_to_store_with_retry
 
         mock_store = MagicMock()
diff --git a/tests/test_tool_approval.py b/tests/test_tool_approval.py
new file mode 100644
index 00000000..a9e95b0b
--- /dev/null
+++ b/tests/test_tool_approval.py
@@ -0,0 +1,481 @@
+"""Tests for tool approval (Phase 3).
+
+Covers require_approval flag, check_pause for approval, the handler
+pause/resume flow, and gen_continuation with approved/denied actions.
+"""
+
+from unittest.mock import Mock
+
+import pytest
+
+from application.agents.tool_executor import ToolExecutor
+from application.llm.handlers.base import LLMHandler, LLMResponse, ToolCall
+
+
+# ---------------------------------------------------------------------------
+# check_pause with require_approval
+# ---------------------------------------------------------------------------
+
+
+@pytest.mark.unit
+class TestCheckPauseApproval:
+
+    def _make_call(self, name="action_0", call_id="c1"):
+        call = Mock()
+        call.name = name
+        call.id = call_id
+        call.arguments = "{}"
+        call.thought_signature = None
+        return call
+
+    def test_approval_required_triggers_pause(self):
+        executor = ToolExecutor()
+        tools_dict = {
+            "0": {
+                "name": "telegram",
+                "actions": [
+                    {
+                        "name": "send_msg",
+                        "active": True,
+                        "require_approval": True,
+                        "parameters": {},
+                    },
+                ],
+            }
+        }
+        call = self._make_call(name="send_msg_0")
+        result = executor.check_pause(tools_dict, call, "OpenAILLM")
+
+        assert result is not None
+        assert result["pause_type"] == "awaiting_approval"
+        assert result["tool_name"] == "telegram"
+        assert result["action_name"] == "send_msg"
+        assert result["tool_id"] == "0"
+
+    def test_approval_not_required_no_pause(self):
+        executor = ToolExecutor()
+        tools_dict = {
+            "0": {
+                "name": "brave",
+                "actions": [
+                    {
+                        "name": "search",
+                        "active": True,
+                        "require_approval": False,
+                        "parameters": {},
+                    },
+                ],
+            }
+        }
+        call = self._make_call(name="search_0")
+        result = executor.check_pause(tools_dict, call, "OpenAILLM")
+        assert result is None
+
+    def test_approval_absent_defaults_to_false(self):
+        executor = ToolExecutor()
+        tools_dict = {
+            "0": {
+                "name": "brave",
+                "actions": [
+                    {
+                        "name": "search",
+                        "active": True,
+                        "parameters": {},
+                    },
+                ],
+            }
+        }
+        call = self._make_call(name="search_0")
+        result = executor.check_pause(tools_dict, call, "OpenAILLM")
+        assert result is None
+
+    def test_api_tool_approval(self):
+        executor = ToolExecutor()
+        tools_dict = {
+            "0": {
+                "name": "api_tool",
+                "config": {
+                    "actions": {
+                        "delete_user": {
+                            "name": "delete_user",
+                            "require_approval": True,
+                            "url": "http://example.com",
+                            "method": "DELETE",
+                            "active": True,
+                        }
+                    }
+                },
+            }
+        }
+        call = self._make_call(name="delete_user_0")
+        result = executor.check_pause(tools_dict, call, "OpenAILLM")
+        assert result is not None
+        assert result["pause_type"] == "awaiting_approval"
+
+    def test_api_tool_no_approval(self):
+        executor = ToolExecutor()
+        tools_dict = {
+            "0": {
+                "name": "api_tool",
+                "config": {
+                    "actions": {
+                        "list_users": {
+                            "name": "list_users",
+                            "url": "http://example.com",
+                            "method": "GET",
+                            "active": True,
+                        }
+                    }
+                },
+            }
+        }
+        call = self._make_call(name="list_users_0")
+        result = executor.check_pause(tools_dict, call, "OpenAILLM")
+        assert result is None
+
+
+# ---------------------------------------------------------------------------
+# Handler: approval tool causes pause signal
+# ---------------------------------------------------------------------------
+
+
+class ConcreteHandler(LLMHandler):
+    def parse_response(self, response):
+        return LLMResponse(
+            content=str(response), tool_calls=[], finish_reason="stop",
+            raw_response=response,
+        )
+
+    def create_tool_message(self, tool_call, result):
+        import json as _json
+        content = _json.dumps(result) if not isinstance(result, str) else result
+        return {"role": "tool", "tool_call_id": tool_call.id, "content": content}
+
+    def _iterate_stream(self, response):
+        for chunk in response:
+            yield chunk
+
+
+@pytest.mark.unit
+class TestHandlerApprovalPause:
+
+    def _make_agent(self, pause_return):
+        agent = Mock()
+        agent._check_context_limit = Mock(return_value=False)
+        agent.context_limit_reached = False
+        agent.llm.__class__.__name__ = "MockLLM"
+        agent.tool_executor.check_pause = Mock(return_value=pause_return)
+
+        def fake_execute(tools_dict, call):
+            yield {"type": "tool_call", "data": {"status": "pending"}}
+            return ("tool result", call.id)
+
+        agent._execute_tool_action = Mock(side_effect=fake_execute)
+        return agent
+
+    def test_approval_tool_pauses(self):
+        handler = ConcreteHandler()
+        pause_info = {
+            "call_id": "c1",
+            "name": "send_msg_0",
+            "tool_name": "telegram",
+            "tool_id": "0",
+            "action_name": "send_msg",
+            "arguments": {"text": "hello"},
+            "pause_type": "awaiting_approval",
+            "thought_signature": None,
+        }
+        agent = self._make_agent(pause_info)
+
+        call = ToolCall(id="c1", name="send_msg_0", arguments='{"text": "hello"}')
+        gen = handler.handle_tool_calls(
+            agent, [call], {"0": {"name": "telegram"}}, []
+        )
+
+        events = []
+        pending = None
+        try:
+            while True:
+                events.append(next(gen))
+        except StopIteration as e:
+            messages, pending = e.value
+
+        assert pending is not None
+        assert len(pending) == 1
+        assert pending[0]["pause_type"] == "awaiting_approval"
+
+        # Should NOT have executed the tool
+        assert agent._execute_tool_action.call_count == 0
+
+        # Should have yielded awaiting_approval status
+        approval_events = [
+            e for e in events
+            if e.get("type") == "tool_call"
+            and e.get("data", {}).get("status") == "awaiting_approval"
+        ]
+        assert len(approval_events) == 1
+
+    def test_mixed_normal_and_approval(self):
+        """First tool runs normally, second needs approval."""
+        handler = ConcreteHandler()
+
+        call_count = {"n": 0}
+
+        def selective_pause(tools_dict, call, llm_class):
+            call_count["n"] += 1
+            if call_count["n"] == 2:
+                return {
+                    "call_id": "c2",
+                    "name": "send_msg_0",
+                    "tool_name": "telegram",
+                    "tool_id": "0",
+                    "action_name": "send_msg",
+                    "arguments": {},
+                    "pause_type": "awaiting_approval",
+                    "thought_signature": None,
+                }
+            return None
+
+        agent = self._make_agent(None)
+        agent.tool_executor.check_pause = Mock(side_effect=selective_pause)
+
+        calls = [
+            ToolCall(id="c1", name="search_0", arguments="{}"),
+            ToolCall(id="c2", name="send_msg_0", arguments="{}"),
+        ]
+
+        gen = handler.handle_tool_calls(
+            agent, calls, {"0": {"name": "multi"}}, []
+        )
+
+        events = []
+        try:
+            while True:
+                events.append(next(gen))
+        except StopIteration as e:
+            messages, pending = e.value
+
+        # First tool executed
+        assert agent._execute_tool_action.call_count == 1
+        # Second tool is pending
+        assert pending is not None
+        assert len(pending) == 1
+        assert pending[0]["call_id"] == "c2"
+
+
+# ---------------------------------------------------------------------------
+# gen_continuation: approval and denial flows
+# ---------------------------------------------------------------------------
+
+
+@pytest.mark.unit
+class TestGenContinuationApproval:
+
+    def _make_agent(self):
+        from application.agents.classic_agent import ClassicAgent
+
+        mock_llm = Mock()
+        mock_llm._supports_tools = True
+        mock_llm.gen_stream = Mock(return_value=iter(["Answer"]))
+        mock_llm._supports_structured_output = Mock(return_value=False)
+        mock_llm.__class__.__name__ = "MockLLM"
+
+        mock_handler = Mock()
+        mock_handler.process_message_flow = Mock(return_value=iter([]))
+        mock_handler.create_tool_message = Mock(
+            return_value={"role": "tool", "tool_call_id": "c1", "content": "result"}
+        )
+
+        mock_executor = Mock()
+        mock_executor.tool_calls = []
+        mock_executor.prepare_tools_for_llm = Mock(return_value=[])
+        mock_executor.get_truncated_tool_calls = Mock(return_value=[])
+
+        def fake_execute(tools_dict, call, llm_class):
+            yield {"type": "tool_call", "data": {"status": "pending"}}
+            return ("executed_result", "c1")
+
+        mock_executor.execute = Mock(side_effect=fake_execute)
+
+        agent = ClassicAgent(
+            endpoint="stream",
+            llm_name="openai",
+            model_id="gpt-4",
+            api_key="test",
+            llm=mock_llm,
+            llm_handler=mock_handler,
+            tool_executor=mock_executor,
+        )
+        return agent, mock_executor, mock_handler
+
+    def test_approved_tool_executes(self):
+        agent, mock_executor, mock_handler = self._make_agent()
+
+        messages = [{"role": "system", "content": "test"}]
+        pending = [
+            {
+                "call_id": "c1",
+                "name": "send_msg_0",
+                "tool_name": "telegram",
+                "tool_id": "0",
+                "action_name": "send_msg",
+                "arguments": {"text": "hello"},
+                "pause_type": "awaiting_approval",
+                "thought_signature": None,
+            }
+        ]
+        tool_actions = [{"call_id": "c1", "decision": "approved"}]
+
+        list(agent.gen_continuation(
+            messages, {"0": {"name": "telegram"}}, pending, tool_actions
+        ))
+
+        # Tool should have been executed
+        assert mock_executor.execute.called
+
+    def test_denied_tool_sends_denial_to_llm(self):
+        agent, mock_executor, mock_handler = self._make_agent()
+
+        messages = [{"role": "system", "content": "test"}]
+        pending = [
+            {
+                "call_id": "c1",
+                "name": "send_msg_0",
+                "tool_name": "telegram",
+                "tool_id": "0",
+                "action_name": "send_msg",
+                "arguments": {},
+                "pause_type": "awaiting_approval",
+                "thought_signature": None,
+            }
+        ]
+        tool_actions = [
+            {"call_id": "c1", "decision": "denied", "comment": "not safe"},
+        ]
+
+        events = list(agent.gen_continuation(
+            messages, {"0": {"name": "telegram"}}, pending, tool_actions
+        ))
+
+        # Tool should NOT have been executed
+        assert not mock_executor.execute.called
+
+        # Should have a denied event
+        denied = [
+            e for e in events
+            if isinstance(e, dict)
+            and e.get("type") == "tool_call"
+            and e.get("data", {}).get("status") == "denied"
+        ]
+        assert len(denied) == 1
+
+        # create_tool_message should have been called with denial text
+        denial_text = mock_handler.create_tool_message.call_args[0][1]
+        assert "denied" in denial_text.lower()
+        assert "not safe" in denial_text
+
+    def test_denied_without_comment(self):
+        agent, mock_executor, mock_handler = self._make_agent()
+
+        messages = [{"role": "system", "content": "test"}]
+        pending = [
+            {
+                "call_id": "c1",
+                "name": "act_0",
+                "tool_name": "tool",
+                "tool_id": "0",
+                "action_name": "act",
+                "arguments": {},
+                "pause_type": "awaiting_approval",
+                "thought_signature": None,
+            }
+        ]
+        tool_actions = [{"call_id": "c1", "decision": "denied"}]
+
+        list(agent.gen_continuation(
+            messages, {"0": {"name": "tool"}}, pending, tool_actions
+        ))
+
+        denial_text = mock_handler.create_tool_message.call_args[0][1]
+        assert "denied" in denial_text.lower()
+
+    def test_mixed_approve_deny_batch(self):
+        """Two tools: one approved, one denied."""
+        agent, mock_executor, mock_handler = self._make_agent()
+
+        messages = [{"role": "system", "content": "test"}]
+        pending = [
+            {
+                "call_id": "c1",
+                "name": "safe_0",
+                "tool_name": "safe",
+                "tool_id": "0",
+                "action_name": "safe",
+                "arguments": {},
+                "pause_type": "awaiting_approval",
+                "thought_signature": None,
+            },
+            {
+                "call_id": "c2",
+                "name": "danger_0",
+                "tool_name": "danger",
+                "tool_id": "0",
+                "action_name": "danger",
+                "arguments": {},
+                "pause_type": "awaiting_approval",
+                "thought_signature": None,
+            },
+        ]
+        tool_actions = [
+            {"call_id": "c1", "decision": "approved"},
+            {"call_id": "c2", "decision": "denied", "comment": "too risky"},
+        ]
+
+        events = list(agent.gen_continuation(
+            messages, {"0": {"name": "multi"}}, pending, tool_actions
+        ))
+
+        # First tool executed, second denied
+        assert mock_executor.execute.call_count == 1
+
+        denied = [
+            e for e in events
+            if isinstance(e, dict)
+            and e.get("type") == "tool_call"
+            and e.get("data", {}).get("status") == "denied"
+        ]
+        assert len(denied) == 1
+
+    def test_missing_action_defaults_to_denial(self):
+        """If client doesn't respond for a pending tool, treat as denied."""
+        agent, mock_executor, mock_handler = self._make_agent()
+
+        messages = [{"role": "system", "content": "test"}]
+        pending = [
+            {
+                "call_id": "c1",
+                "name": "act_0",
+                "tool_name": "tool",
+                "tool_id": "0",
+                "action_name": "act",
+                "arguments": {},
+                "pause_type": "awaiting_approval",
+                "thought_signature": None,
+            }
+        ]
+        # Empty tool_actions — no response for c1
+        tool_actions = []
+
+        events = list(agent.gen_continuation(
+            messages, {"0": {"name": "tool"}}, pending, tool_actions
+        ))
+
+        # Should have been treated as denied
+        assert not mock_executor.execute.called
+        denied = [
+            e for e in events
+            if isinstance(e, dict)
+            and e.get("type") == "tool_call"
+            and e.get("data", {}).get("status") == "denied"
+        ]
+        assert len(denied) == 1
diff --git a/tests/test_v1_translator.py b/tests/test_v1_translator.py
new file mode 100644
index 00000000..92deb912
--- /dev/null
+++ b/tests/test_v1_translator.py
@@ -0,0 +1,577 @@
+"""Tests for the v1 API translator (Phase 4).
+
+Covers request translation, response translation, streaming event
+translation, continuation detection, and history conversion.
+"""
+
+import json
+
+import pytest
+
+from application.api.v1.translator import (
+    _get_client_tool_name,
+    convert_history,
+    extract_tool_results,
+    is_continuation,
+    translate_request,
+    translate_response,
+    translate_stream_event,
+)
+
+
+# ---------------------------------------------------------------------------
+# is_continuation
+# ---------------------------------------------------------------------------
+
+
+@pytest.mark.unit
+class TestIsContinuation:
+
+    def test_normal_messages_not_continuation(self):
+        messages = [
+            {"role": "user", "content": "Hello"},
+        ]
+        assert is_continuation(messages) is False
+
+    def test_tool_after_assistant_tool_calls_is_continuation(self):
+        messages = [
+            {"role": "user", "content": "What's the weather?"},
+            {
+                "role": "assistant",
+                "content": None,
+                "tool_calls": [{"id": "c1", "type": "function", "function": {"name": "get_weather", "arguments": "{}"}}],
+            },
+            {"role": "tool", "tool_call_id": "c1", "content": '{"temp": "72F"}'},
+        ]
+        assert is_continuation(messages) is True
+
+    def test_assistant_without_tool_calls_not_continuation(self):
+        messages = [
+            {"role": "user", "content": "Hello"},
+            {"role": "assistant", "content": "Hi"},
+            {"role": "tool", "tool_call_id": "c1", "content": "result"},
+        ]
+        # assistant has no tool_calls — not a valid continuation
+        assert is_continuation(messages) is False
+
+    def test_empty_messages(self):
+        assert is_continuation([]) is False
+
+    def test_multiple_tool_results(self):
+        messages = [
+            {"role": "user", "content": "Do stuff"},
+            {
+                "role": "assistant",
+                "tool_calls": [
+                    {"id": "c1", "type": "function", "function": {"name": "a", "arguments": "{}"}},
+                    {"id": "c2", "type": "function", "function": {"name": "b", "arguments": "{}"}},
+                ],
+            },
+            {"role": "tool", "tool_call_id": "c1", "content": "r1"},
+            {"role": "tool", "tool_call_id": "c2", "content": "r2"},
+        ]
+        assert is_continuation(messages) is True
+
+
+# ---------------------------------------------------------------------------
+# extract_tool_results
+# ---------------------------------------------------------------------------
+
+
+@pytest.mark.unit
+class TestExtractToolResults:
+
+    def test_extracts_results(self):
+        messages = [
+            {"role": "assistant", "tool_calls": [{"id": "c1"}]},
+            {"role": "tool", "tool_call_id": "c1", "content": '{"temp": "72F"}'},
+        ]
+        results = extract_tool_results(messages)
+        assert len(results) == 1
+        assert results[0]["call_id"] == "c1"
+        assert results[0]["result"] == {"temp": "72F"}
+
+    def test_string_content(self):
+        messages = [
+            {"role": "tool", "tool_call_id": "c1", "content": "plain text"},
+        ]
+        results = extract_tool_results(messages)
+        assert results[0]["result"] == "plain text"
+
+    def test_multiple_results(self):
+        messages = [
+            {"role": "assistant", "tool_calls": []},
+            {"role": "tool", "tool_call_id": "c1", "content": "r1"},
+            {"role": "tool", "tool_call_id": "c2", "content": "r2"},
+        ]
+        results = extract_tool_results(messages)
+        assert len(results) == 2
+        assert results[0]["call_id"] == "c1"
+        assert results[1]["call_id"] == "c2"
+
+
+# ---------------------------------------------------------------------------
+# convert_history
+# ---------------------------------------------------------------------------
+
+
+@pytest.mark.unit
+class TestConvertHistory:
+
+    def test_user_assistant_pairs(self):
+        messages = [
+            {"role": "system", "content": "You are helpful"},
+            {"role": "user", "content": "Hello"},
+            {"role": "assistant", "content": "Hi there"},
+            {"role": "user", "content": "How are you?"},
+            {"role": "assistant", "content": "I'm good"},
+            {"role": "user", "content": "What's 2+2?"},  # Last user = question
+        ]
+        history = convert_history(messages)
+        assert len(history) == 2
+        assert history[0]["prompt"] == "Hello"
+        assert history[0]["response"] == "Hi there"
+        assert history[1]["prompt"] == "How are you?"
+        assert history[1]["response"] == "I'm good"
+
+    def test_single_user_message(self):
+        messages = [{"role": "user", "content": "Hi"}]
+        history = convert_history(messages)
+        assert history == []
+
+    def test_system_messages_skipped(self):
+        messages = [
+            {"role": "system", "content": "System prompt"},
+            {"role": "user", "content": "Question"},
+        ]
+        history = convert_history(messages)
+        assert history == []
+
+
+# ---------------------------------------------------------------------------
+# translate_request
+# ---------------------------------------------------------------------------
+
+
+@pytest.mark.unit
+class TestTranslateRequest:
+
+    def test_normal_request(self):
+        data = {
+            "messages": [
+                {"role": "user", "content": "Hello"},
+                {"role": "assistant", "content": "Hi"},
+                {"role": "user", "content": "What's 2+2?"},
+            ],
+        }
+        result = translate_request(data, "test-key")
+        assert result["question"] == "What's 2+2?"
+        assert result["api_key"] == "test-key"
+        assert result["save_conversation"] is True
+        history = json.loads(result["history"])
+        assert len(history) == 1
+        assert history[0]["prompt"] == "Hello"
+
+    def test_continuation_request(self):
+        data = {
+            "messages": [
+                {"role": "user", "content": "Search for X"},
+                {
+                    "role": "assistant",
+                    "tool_calls": [{"id": "c1", "type": "function", "function": {"name": "search", "arguments": "{}"}}],
+                },
+                {"role": "tool", "tool_call_id": "c1", "content": '{"found": true}'},
+            ],
+        }
+        result = translate_request(data, "key")
+        assert "tool_actions" in result
+        assert len(result["tool_actions"]) == 1
+        assert result["tool_actions"][0]["call_id"] == "c1"
+
+    def test_continuation_with_top_level_conversation_id(self):
+        """Standard clients send conversation_id at request level, not in messages."""
+        data = {
+            "conversation_id": "conv-top-level",
+            "messages": [
+                {"role": "user", "content": "Do stuff"},
+                {
+                    "role": "assistant",
+                    "tool_calls": [{"id": "c1", "type": "function", "function": {"name": "act", "arguments": "{}"}}],
+                },
+                {"role": "tool", "tool_call_id": "c1", "content": "done"},
+            ],
+        }
+        result = translate_request(data, "key")
+        assert result["conversation_id"] == "conv-top-level"
+
+    def test_continuation_in_message_conversation_id_takes_precedence(self):
+        """When both in-message and top-level conversation_id exist, in-message wins."""
+        data = {
+            "conversation_id": "conv-top-level",
+            "messages": [
+                {"role": "user", "content": "Do stuff"},
+                {
+                    "role": "assistant",
+                    "tool_calls": [{"id": "c1", "type": "function", "function": {"name": "act", "arguments": "{}"}}],
+                    "docsgpt": {"conversation_id": "conv-in-message"},
+                },
+                {"role": "tool", "tool_call_id": "c1", "content": "done"},
+            ],
+        }
+        result = translate_request(data, "key")
+        assert result["conversation_id"] == "conv-in-message"
+
+    def test_client_tools_passed_through(self):
+        data = {
+            "messages": [{"role": "user", "content": "Hi"}],
+            "tools": [{"type": "function", "function": {"name": "my_tool"}}],
+        }
+        result = translate_request(data, "key")
+        assert result["client_tools"] == data["tools"]
+
+    def test_docsgpt_attachments(self):
+        data = {
+            "messages": [{"role": "user", "content": "Hi"}],
+            "docsgpt": {"attachments": ["att1", "att2"]},
+        }
+        result = translate_request(data, "key")
+        assert result["attachments"] == ["att1", "att2"]
+
+
+# ---------------------------------------------------------------------------
+# translate_response
+# ---------------------------------------------------------------------------
+
+
+@pytest.mark.unit
+class TestTranslateResponse:
+
+    def test_basic_response(self):
+        resp = translate_response(
+            conversation_id="conv-1",
+            answer="Hello!",
+            sources=[],
+            tool_calls=[],
+            thought="",
+            model_name="my-agent",
+        )
+        assert resp["id"] == "chatcmpl-conv-1"
+        assert resp["object"] == "chat.completion"
+        assert resp["model"] == "my-agent"
+        assert resp["choices"][0]["message"]["content"] == "Hello!"
+        assert resp["choices"][0]["finish_reason"] == "stop"
+        assert "reasoning_content" not in resp["choices"][0]["message"]
+
+    def test_response_with_thought(self):
+        resp = translate_response(
+            conversation_id="c1",
+            answer="Result",
+            sources=[],
+            tool_calls=[],
+            thought="Thinking about it...",
+            model_name="agent",
+        )
+        assert resp["choices"][0]["message"]["reasoning_content"] == "Thinking about it..."
+
+    def test_response_with_sources(self):
+        sources = [{"title": "doc.txt", "text": "content", "source": "/doc.txt"}]
+        resp = translate_response(
+            conversation_id="c1",
+            answer="Found it",
+            sources=sources,
+            tool_calls=[],
+            thought="",
+            model_name="agent",
+        )
+        assert resp["docsgpt"]["sources"] == sources
+
+    def test_response_with_tool_calls(self):
+        tool_calls = [{"tool_name": "notes", "call_id": "c1", "artifact_id": "a1"}]
+        resp = translate_response(
+            conversation_id="c1",
+            answer="Done",
+            sources=[],
+            tool_calls=tool_calls,
+            thought="",
+            model_name="agent",
+        )
+        assert resp["docsgpt"]["tool_calls"] == tool_calls
+
+    def test_pending_tool_calls_uses_tool_name(self):
+        """Client tool responses use the original tool_name, not the LLM-visible action_name."""
+        pending = [
+            {
+                "call_id": "c1",
+                "tool_name": "get_weather",
+                "action_name": "get_weather",
+                "arguments": {"city": "SF"},
+            }
+        ]
+        resp = translate_response(
+            conversation_id="c1",
+            answer="",
+            sources=[],
+            tool_calls=[],
+            thought="",
+            model_name="agent",
+            pending_tool_calls=pending,
+        )
+        tc = resp["choices"][0]["message"]["tool_calls"][0]
+        assert tc["function"]["name"] == "get_weather"
+
+    def test_pending_tool_calls_tool_name_takes_precedence(self):
+        """When tool_name differs from action_name, tool_name is used."""
+        pending = [
+            {
+                "call_id": "c1",
+                "tool_name": "search",
+                "action_name": "search_1",
+                "arguments": {"q": "test"},
+            }
+        ]
+        resp = translate_response(
+            conversation_id="c1",
+            answer="",
+            sources=[],
+            tool_calls=[],
+            thought="",
+            model_name="agent",
+            pending_tool_calls=pending,
+        )
+        tc = resp["choices"][0]["message"]["tool_calls"][0]
+        assert tc["function"]["name"] == "search"
+
+    def test_pending_tool_calls(self):
+        pending = [
+            {
+                "call_id": "c1",
+                "name": "get_weather",
+                "arguments": {"city": "SF"},
+            }
+        ]
+        resp = translate_response(
+            conversation_id="c1",
+            answer="",
+            sources=[],
+            tool_calls=[],
+            thought="",
+            model_name="agent",
+            pending_tool_calls=pending,
+        )
+        assert resp["choices"][0]["finish_reason"] == "tool_calls"
+        assert resp["choices"][0]["message"]["content"] is None
+        assert len(resp["choices"][0]["message"]["tool_calls"]) == 1
+        tc = resp["choices"][0]["message"]["tool_calls"][0]
+        assert tc["id"] == "c1"
+        assert tc["function"]["name"] == "get_weather"
+
+    def test_no_docsgpt_when_empty(self):
+        resp = translate_response(
+            conversation_id="",
+            answer="Hi",
+            sources=None,
+            tool_calls=None,
+            thought="",
+            model_name="agent",
+        )
+        assert "docsgpt" not in resp
+
+
+# ---------------------------------------------------------------------------
+# translate_stream_event
+# ---------------------------------------------------------------------------
+
+
+@pytest.mark.unit
+class TestTranslateStreamEvent:
+
+    def test_answer_event(self):
+        chunks = translate_stream_event(
+            {"type": "answer", "answer": "Hello"},
+            "chatcmpl-1", "agent",
+        )
+        assert len(chunks) == 1
+        parsed = json.loads(chunks[0].replace("data: ", "").strip())
+        assert parsed["choices"][0]["delta"]["content"] == "Hello"
+
+    def test_thought_event(self):
+        chunks = translate_stream_event(
+            {"type": "thought", "thought": "reasoning"},
+            "chatcmpl-1", "agent",
+        )
+        assert len(chunks) == 1
+        parsed = json.loads(chunks[0].replace("data: ", "").strip())
+        assert parsed["choices"][0]["delta"]["reasoning_content"] == "reasoning"
+
+    def test_source_event(self):
+        chunks = translate_stream_event(
+            {"type": "source", "source": [{"title": "t", "text": "x"}]},
+            "chatcmpl-1", "agent",
+        )
+        assert len(chunks) == 1
+        parsed = json.loads(chunks[0].replace("data: ", "").strip())
+        assert parsed["docsgpt"]["type"] == "source"
+        assert len(parsed["docsgpt"]["sources"]) == 1
+
+    def test_end_event(self):
+        chunks = translate_stream_event(
+            {"type": "end"},
+            "chatcmpl-1", "agent",
+        )
+        assert len(chunks) == 2
+        # First chunk: finish_reason stop
+        parsed = json.loads(chunks[0].replace("data: ", "").strip())
+        assert parsed["choices"][0]["finish_reason"] == "stop"
+        # Second chunk: [DONE]
+        assert chunks[1].strip() == "data: [DONE]"
+
+    def test_tool_call_client_execution(self):
+        chunks = translate_stream_event(
+            {
+                "type": "tool_call",
+                "data": {
+                    "call_id": "c1",
+                    "action_name": "get_weather",
+                    "arguments": {"city": "SF"},
+                    "status": "requires_client_execution",
+                },
+            },
+            "chatcmpl-1", "agent",
+        )
+        assert len(chunks) == 1
+        parsed = json.loads(chunks[0].replace("data: ", "").strip())
+        tc = parsed["choices"][0]["delta"]["tool_calls"][0]
+        assert tc["id"] == "c1"
+        assert tc["function"]["name"] == "get_weather"
+
+    def test_tool_call_client_execution_uses_tool_name(self):
+        """Streaming tool calls use tool_name (original name) for client responses."""
+        chunks = translate_stream_event(
+            {
+                "type": "tool_call",
+                "data": {
+                    "call_id": "c1",
+                    "tool_name": "create",
+                    "action_name": "create",
+                    "arguments": {"title": "test"},
+                    "status": "requires_client_execution",
+                },
+            },
+            "chatcmpl-1", "agent",
+        )
+        parsed = json.loads(chunks[0].replace("data: ", "").strip())
+        tc = parsed["choices"][0]["delta"]["tool_calls"][0]
+        assert tc["function"]["name"] == "create"
+
+    def test_tool_call_completed(self):
+        chunks = translate_stream_event(
+            {
+                "type": "tool_call",
+                "data": {
+                    "call_id": "c1",
+                    "status": "completed",
+                    "result": "done",
+                    "artifact_id": "a1",
+                },
+            },
+            "chatcmpl-1", "agent",
+        )
+        assert len(chunks) == 1
+        parsed = json.loads(chunks[0].replace("data: ", "").strip())
+        assert parsed["docsgpt"]["type"] == "tool_call"
+        assert parsed["docsgpt"]["data"]["artifact_id"] == "a1"
+
+    def test_tool_calls_pending(self):
+        chunks = translate_stream_event(
+            {
+                "type": "tool_calls_pending",
+                "data": {"pending_tool_calls": [{"call_id": "c1"}]},
+            },
+            "chatcmpl-1", "agent",
+        )
+        assert len(chunks) == 2
+        # Standard chunk with finish_reason tool_calls
+        parsed = json.loads(chunks[0].replace("data: ", "").strip())
+        assert parsed["choices"][0]["finish_reason"] == "tool_calls"
+        # Extension chunk
+        ext = json.loads(chunks[1].replace("data: ", "").strip())
+        assert ext["docsgpt"]["type"] == "tool_calls_pending"
+
+    def test_id_event(self):
+        chunks = translate_stream_event(
+            {"type": "id", "id": "conv-123"},
+            "chatcmpl-1", "agent",
+        )
+        assert len(chunks) == 1
+        parsed = json.loads(chunks[0].replace("data: ", "").strip())
+        assert parsed["docsgpt"]["conversation_id"] == "conv-123"
+
+    def test_error_event(self):
+        chunks = translate_stream_event(
+            {"type": "error", "error": "Something went wrong"},
+            "chatcmpl-1", "agent",
+        )
+        assert len(chunks) == 1
+        parsed = json.loads(chunks[0].replace("data: ", "").strip())
+        assert parsed["error"]["message"] == "Something went wrong"
+
+    def test_tool_calls_event_skipped(self):
+        """The aggregate tool_calls event is redundant and should be skipped."""
+        chunks = translate_stream_event(
+            {"type": "tool_calls", "tool_calls": [{"call_id": "c1"}]},
+            "chatcmpl-1", "agent",
+        )
+        assert len(chunks) == 0
+
+    def test_research_events_skipped(self):
+        assert translate_stream_event(
+            {"type": "research_plan", "data": {}}, "id", "m"
+        ) == []
+        assert translate_stream_event(
+            {"type": "research_progress", "data": {}}, "id", "m"
+        ) == []
+
+    def test_awaiting_approval_as_extension(self):
+        chunks = translate_stream_event(
+            {
+                "type": "tool_call",
+                "data": {"call_id": "c1", "status": "awaiting_approval"},
+            },
+            "chatcmpl-1", "agent",
+        )
+        assert len(chunks) == 1
+        parsed = json.loads(chunks[0].replace("data: ", "").strip())
+        assert parsed["docsgpt"]["type"] == "tool_call"
+
+    def test_standard_clients_can_ignore_docsgpt(self):
+        """Standard clients parse only 'choices' — docsgpt namespace is ignored."""
+        chunks = translate_stream_event(
+            {"type": "source", "source": [{"title": "t"}]},
+            "chatcmpl-1", "agent",
+        )
+        parsed = json.loads(chunks[0].replace("data: ", "").strip())
+        # No "choices" key — standard parsers skip this chunk entirely
+        assert "choices" not in parsed
+        # docsgpt key is present
+        assert "docsgpt" in parsed
+
+
+# ---------------------------------------------------------------------------
+# _get_client_tool_name
+# ---------------------------------------------------------------------------
+
+
+@pytest.mark.unit
+class TestGetClientToolName:
+
+    def test_uses_tool_name_when_present(self):
+        assert _get_client_tool_name({"tool_name": "create", "action_name": "create_1"}) == "create"
+
+    def test_falls_back_to_action_name(self):
+        assert _get_client_tool_name({"action_name": "get_weather"}) == "get_weather"
+
+    def test_falls_back_to_name(self):
+        assert _get_client_tool_name({"name": "search"}) == "search"
+
+    def test_returns_empty_when_no_fields(self):
+        assert _get_client_tool_name({}) == ""