diff --git a/app/api/chat/route.ts b/app/api/chat/route.ts
index 6a68603..078cdd3 100644
--- a/app/api/chat/route.ts
+++ b/app/api/chat/route.ts
@@ -1,11 +1,75 @@
 import { NextRequest } from 'next/server';
 import { Message } from 'ollama';
 import ollama from '@/lib/ollama';
-import { allTools, executeTool } from '@/lib/tools';
+import { allTools, executeTool, getRegisteredTools } from '@/lib/tools';
 
 // Maximum number of tool call iterations to prevent infinite loops
 const MAX_TOOL_ITERATIONS = 10;
 
+/**
+ * Parse text-based tool calls from model output
+ * Supports formats like:
+ * - tool_name[ARGS]{"arg": "value"}
+ * - <tool_call>{"name": "tool_name", "arguments": {...}}</tool_call>
+ * - {"tool": "tool_name", "arguments": {...}}
+ */
+function parseTextToolCalls(
+  content: string
+): Array<{ name: string; arguments: Record<string, unknown> }> {
+  const toolCalls: Array<{ name: string; arguments: Record<string, unknown> }> = [];
+  const registeredTools = getRegisteredTools();
+
+  // Pattern 1: tool_name[ARGS]{...}
+  const argsPattern = /(\w+)\[ARGS\](\{[\s\S]*?\})/g;
+  let match;
+  while ((match = argsPattern.exec(content)) !== null) {
+    const toolName = match[1];
+    try {
+      const args = JSON.parse(match[2]);
+      if (registeredTools.includes(toolName)) {
+        toolCalls.push({ name: toolName, arguments: args });
+      }
+    } catch {
+      // Invalid JSON, skip
+    }
+  }
+
+  // Pattern 2: <tool_call>{"name": "...", "arguments": {...}}</tool_call>
+  const toolCallTagPattern = /<tool_call>([\s\S]*?)<\/tool_call>/g;
+  while ((match = toolCallTagPattern.exec(content)) !== null) {
+    try {
+      const parsed = JSON.parse(match[1]);
+      if (parsed.name && registeredTools.includes(parsed.name)) {
+        toolCalls.push({
+          name: parsed.name,
+          arguments: parsed.arguments || {},
+        });
+      }
+    } catch {
+      // Invalid JSON, skip
+    }
+  }
+
+  // Pattern 3: Standalone JSON with tool field
+  const jsonToolPattern = /\{[\s\S]*?"(?:tool|function)"[\s\S]*?\}/g;
+  while ((match = jsonToolPattern.exec(content)) !== null) {
+    try {
+      const parsed = JSON.parse(match[0]);
+      const toolName = parsed.tool || parsed.function || parsed.name;
+      if (toolName && registeredTools.includes(toolName)) {
+        toolCalls.push({
+          name: toolName,
+          arguments: parsed.arguments || parsed.params || parsed.parameters || {},
+        });
+      }
+    } catch {
+      // Invalid JSON, skip
+    }
+  }
+
+  return toolCalls;
+}
+
 export async function POST(request: NextRequest) {
   try {
     const { model, messages, enableTools = true } = await request.json();
@@ -50,7 +114,7 @@ export async function POST(request: NextRequest) {
                 controller.enqueue(encoder.encode(text));
               }
 
-              // Check for tool calls in the final chunk
+              // Check for native tool calls in the final chunk
               if (chunk.message?.tool_calls) {
                 toolCalls = chunk.message.tool_calls.map((tc) => ({
                   name: tc.function.name,
@@ -59,38 +123,36 @@ export async function POST(request: NextRequest) {
               }
             }
 
+            // If no native tool calls, try to parse text-based tool calls
+            if (toolCalls.length === 0 && enableTools) {
+              toolCalls = parseTextToolCalls(fullContent);
+            }
+
             // If no tool calls, we're done
             if (toolCalls.length === 0) {
               break;
             }
 
             // Process tool calls
-            // Send a marker so frontend knows tool calls are happening
-            controller.enqueue(encoder.encode('\n\n---TOOL_CALLS---\n'));
+            controller.enqueue(encoder.encode('\n\n'));
 
-            // Add the assistant's response with tool calls to messages
+            // Add the assistant's response to messages
             workingMessages.push({
               role: 'assistant',
               content: fullContent,
-              tool_calls: toolCalls.map((tc) => ({
-                function: {
-                  name: tc.name,
-                  arguments: tc.arguments,
-                },
-              })),
             });
 
             // Execute each tool and collect results
             for (const toolCall of toolCalls) {
-              controller.enqueue(encoder.encode(`\n**Using tool: ${toolCall.name}**\n`));
+              controller.enqueue(encoder.encode(`**Using tool: ${toolCall.name}**\n`));
 
               const result = await executeTool(toolCall.name, toolCall.arguments);
 
               // Send tool result to stream
               if (result.success) {
-                controller.enqueue(encoder.encode(`\`\`\`\n${result.result}\n\`\`\`\n`));
+                controller.enqueue(encoder.encode(`\`\`\`\n${result.result}\n\`\`\`\n\n`));
               } else {
-                controller.enqueue(encoder.encode(`Error: ${result.error}\n`));
+                controller.enqueue(encoder.encode(`Error: ${result.error}\n\n`));
               }
 
               // Add tool result to messages for next iteration
@@ -100,7 +162,7 @@ export async function POST(request: NextRequest) {
               });
             }
 
-            controller.enqueue(encoder.encode('\n---END_TOOL_CALLS---\n\n'));
+            // Continue to let the model respond with the tool results
           }
 
           controller.close();