diff --git a/core/http/endpoints/openai/chat.go b/core/http/endpoints/openai/chat.go
index cf2f05663..04bd28b36 100644
--- a/core/http/endpoints/openai/chat.go
+++ b/core/http/endpoints/openai/chat.go
@@ -174,8 +174,78 @@ func ChatEndpoint(cl *config.ModelConfigLoader, ml *model.ModelLoader, evaluator
 
 		result := ""
 		lastEmittedCount := 0
+
+		// Track accumulated content for incremental reasoning and content extraction (mirrors process())
+		accumulatedContent := ""
+		lastEmittedReasoning := ""
+		lastEmittedCleanedContent := ""
+		sentInitialRole := false
+
 		_, tokenUsage, chatDeltas, err := ComputeChoices(req, prompt, config, cl, startupOptions, loader, func(s string, c *[]schema.Choice) {}, func(s string, usage backend.TokenUsage) bool {
 			result += s
+			accumulatedContent += s
+
+			// Incremental reasoning extraction — emit reasoning deltas in their own SSE chunks
+			// before any tool-call chunks (OpenAI spec: reasoning and tool_calls never share a delta)
+			currentReasoning, cleanedContent := reason.ExtractReasoningWithConfig(accumulatedContent, thinkingStartToken, config.ReasoningConfig)
+
+			var reasoningDelta *string
+			if currentReasoning != lastEmittedReasoning {
+				if len(currentReasoning) > len(lastEmittedReasoning) && strings.HasPrefix(currentReasoning, lastEmittedReasoning) {
+					newReasoning := currentReasoning[len(lastEmittedReasoning):]
+					reasoningDelta = &newReasoning
+					lastEmittedReasoning = currentReasoning
+				} else if currentReasoning != "" {
+					reasoningDelta = &currentReasoning
+					lastEmittedReasoning = currentReasoning
+				}
+			}
+
+			if reasoningDelta != nil && *reasoningDelta != "" {
+				responses <- schema.OpenAIResponse{
+					ID:      id,
+					Created: created,
+					Model:   req.Model,
+					Choices: []schema.Choice{{
+						Delta: &schema.Message{Reasoning: reasoningDelta},
+						Index: 0,
+					}},
+					Object: "chat.completion.chunk",
+				}
+			}
+
+			// Stream content deltas (cleaned of reasoning tags) while no tool calls
+			// have been detected. Once the incremental parser finds tool calls,
+			// content stops — per OpenAI spec, content and tool_calls don't mix.
+			if lastEmittedCount == 0 && cleanedContent != "" {
+				var deltaContent string
+				if len(cleanedContent) > len(lastEmittedCleanedContent) && strings.HasPrefix(cleanedContent, lastEmittedCleanedContent) {
+					deltaContent = cleanedContent[len(lastEmittedCleanedContent):]
+					lastEmittedCleanedContent = cleanedContent
+				} else if cleanedContent != lastEmittedCleanedContent {
+					deltaContent = cleanedContent
+					lastEmittedCleanedContent = cleanedContent
+				}
+				if deltaContent != "" {
+					if !sentInitialRole {
+						responses <- schema.OpenAIResponse{
+							ID: id, Created: created, Model: req.Model,
+							Choices: []schema.Choice{{Delta: &schema.Message{Role: "assistant"}, Index: 0}},
+							Object:  "chat.completion.chunk",
+						}
+						sentInitialRole = true
+					}
+					responses <- schema.OpenAIResponse{
+						ID: id, Created: created, Model: req.Model,
+						Choices: []schema.Choice{{
+							Delta: &schema.Message{Content: &deltaContent},
+							Index: 0,
+						}},
+						Object: "chat.completion.chunk",
+					}
+				}
+			}
+
 			// Try incremental XML parsing for streaming support using iterative parser
 			// This allows emitting partial tool calls as they're being generated
 			cleanedResult := functions.CleanupLLMResult(result, config.FunctionsConfig)
@@ -306,20 +376,6 @@ func ChatEndpoint(cl *config.ModelConfigLoader, ml *model.ModelLoader, evaluator
 
 		switch {
 		case noActionToRun:
-			initialMessage := schema.OpenAIResponse{
-				ID:      id,
-				Created: created,
-				Model:   req.Model, // we have to return what the user sent here, due to OpenAI spec.
-				Choices: []schema.Choice{{Delta: &schema.Message{Role: "assistant"}, Index: 0, FinishReason: nil}},
-				Object:  "chat.completion.chunk",
-			}
-			responses <- initialMessage
-
-			result, err := handleQuestion(config, functionResults, result, prompt)
-			if err != nil {
-				xlog.Error("error handling question", "error", err)
-				return err
-			}
 			usage := schema.OpenAIUsage{
 				PromptTokens:     tokenUsage.Prompt,
 				CompletionTokens: tokenUsage.Completion,
@@ -330,25 +386,43 @@ func ChatEndpoint(cl *config.ModelConfigLoader, ml *model.ModelLoader, evaluator
 				usage.TimingPromptProcessing = tokenUsage.TimingPromptProcessing
 			}
 
-			var deltaReasoning *string
-			if reasoning != "" {
-				deltaReasoning = &reasoning
-			}
-			delta := &schema.Message{Content: &result}
-			if deltaReasoning != nil {
-				delta.Reasoning = deltaReasoning
-			}
+			if sentInitialRole {
+				// Content was already streamed during the callback — just emit usage.
+				delta := &schema.Message{}
+				if reasoning != "" && lastEmittedReasoning == "" {
+					delta.Reasoning = &reasoning
+				}
+				responses <- schema.OpenAIResponse{
+					ID: id, Created: created, Model: req.Model,
+					Choices: []schema.Choice{{Delta: delta, Index: 0}},
+					Object:  "chat.completion.chunk",
+					Usage:   usage,
+				}
+			} else {
+				// Content was NOT streamed — send everything at once (fallback).
+				responses <- schema.OpenAIResponse{
+					ID: id, Created: created, Model: req.Model,
+					Choices: []schema.Choice{{Delta: &schema.Message{Role: "assistant"}, Index: 0}},
+					Object:  "chat.completion.chunk",
+				}
 
-			resp := schema.OpenAIResponse{
-				ID:      id,
-				Created: created,
-				Model:   req.Model, // we have to return what the user sent here, due to OpenAI spec.
-				Choices: []schema.Choice{{Delta: delta, Index: 0, FinishReason: nil}},
-				Object:  "chat.completion.chunk",
-				Usage:   usage,
-			}
+				result, err := handleQuestion(config, functionResults, result, prompt)
+				if err != nil {
+					xlog.Error("error handling question", "error", err)
+					return err
+				}
 
-			responses <- resp
+				delta := &schema.Message{Content: &result}
+				if reasoning != "" {
+					delta.Reasoning = &reasoning
+				}
+				responses <- schema.OpenAIResponse{
+					ID: id, Created: created, Model: req.Model,
+					Choices: []schema.Choice{{Delta: delta, Index: 0}},
+					Object:  "chat.completion.chunk",
+					Usage:   usage,
+				}
+			}
 
 		default:
 			for i, ss := range functionResults {
diff --git a/core/http/endpoints/openresponses/responses.go b/core/http/endpoints/openresponses/responses.go
index dd51e1a36..9b0ae2a23 100644
--- a/core/http/endpoints/openresponses/responses.go
+++ b/core/http/endpoints/openresponses/responses.go
@@ -1737,6 +1737,16 @@ func handleOpenResponsesStream(c echo.Context, responseID string, createdAt int6
 
 		for mcpStreamIter := 0; mcpStreamIter <= mcpStreamMaxIterations; mcpStreamIter++ {
 		if mcpStreamIter > 0 {
+			// Reset reasoning and tool-call state for re-inference so reasoning
+			// extraction runs again on subsequent iterations
+			inToolCallMode = false
+			accumulatedContent = ""
+			lastEmittedReasoning = ""
+			lastEmittedCleanedContent = ""
+			currentMessageID = ""
+			lastEmittedToolCallCount = 0
+			currentReasoningID = ""
+
 			predInput = evaluator.TemplateMessages(*openAIReq, openAIReq.Messages, cfg, funcs, shouldUseFn)
 			xlog.Debug("Open Responses stream MCP re-templating", "iteration", mcpStreamIter)
 			images = images[:0]
diff --git a/core/http/react-ui/src/pages/AgentChat.jsx b/core/http/react-ui/src/pages/AgentChat.jsx
index 757ae74b9..908e2d9af 100644
--- a/core/http/react-ui/src/pages/AgentChat.jsx
+++ b/core/http/react-ui/src/pages/AgentChat.jsx
@@ -104,6 +104,9 @@ export default function AgentChat() {
   const [editingName, setEditingName] = useState(null)
   const [editName, setEditName] = useState('')
   const [chatSearch, setChatSearch] = useState('')
+  const [streamContent, setStreamContent] = useState('')
+  const [streamReasoning, setStreamReasoning] = useState('')
+  const [streamToolCalls, setStreamToolCalls] = useState([])
   const messagesEndRef = useRef(null)
   const messagesRef = useRef(null)
   const textareaRef = useRef(null)
@@ -150,8 +153,41 @@ export default function AgentChat() {
         const data = JSON.parse(e.data)
         if (data.status === 'processing') {
           setProcessingChatId(activeIdRef.current)
+          setStreamContent('')
+          setStreamReasoning('')
+          setStreamToolCalls([])
         } else if (data.status === 'completed') {
           setProcessingChatId(null)
+          setStreamContent('')
+          setStreamReasoning('')
+          setStreamToolCalls([])
+        }
+      } catch (_err) {
+        // ignore
+      }
+    })
+
+    es.addEventListener('stream_event', (e) => {
+      try {
+        const data = JSON.parse(e.data)
+        if (data.type === 'reasoning') {
+          setStreamReasoning(prev => prev + (data.content || ''))
+        } else if (data.type === 'content') {
+          setStreamContent(prev => prev + (data.content || ''))
+        } else if (data.type === 'tool_call') {
+          const name = data.tool_name || ''
+          const args = data.tool_args || ''
+          setStreamToolCalls(prev => {
+            if (name) {
+              return [...prev, { name, args }]
+            }
+            if (prev.length === 0) return prev
+            const updated = [...prev]
+            updated[updated.length - 1] = { ...updated[updated.length - 1], args: updated[updated.length - 1].args + args }
+            return updated
+          })
+        } else if (data.type === 'done') {
+          // Content will be finalized by json_message event
         }
       } catch (_err) {
         // ignore
@@ -192,7 +228,7 @@ export default function AgentChat() {
   // Auto-scroll to bottom
   useEffect(() => {
     messagesEndRef.current?.scrollIntoView({ behavior: 'smooth' })
-  }, [messages])
+  }, [messages, streamContent, streamReasoning, streamToolCalls])
 
   // Highlight code blocks
   useEffect(() => {
@@ -537,7 +573,50 @@ export default function AgentChat() {
           flushSystem('end')
           return elements
         })()}
-        {processing && (
+        {processing && (streamReasoning || streamContent || streamToolCalls.length > 0) && (
+          <div className="chat-message chat-message-assistant">
+            <div className="chat-message-avatar">
+              <i className="fas fa-robot" />
+            </div>
+            <div className="chat-message-bubble">
+              {streamReasoning && (
+                <details className="chat-activity-group" open={!streamContent} style={{ marginBottom: streamContent ? 'var(--spacing-sm)' : 0 }}>
+                  <summary className="chat-activity-toggle" style={{ cursor: 'pointer' }}>
+                    <span className={`chat-activity-summary${!streamContent ? ' chat-activity-shimmer' : ''}`}>
+                      {streamContent ? 'Thinking' : 'Thinking...'}
+                    </span>
+                  </summary>
+                  <div className="chat-activity-details">
+                    <div className="chat-activity-item chat-activity-thinking">
+                      <div className="chat-activity-item-content chat-activity-live"
+                        dangerouslySetInnerHTML={{ __html: renderMarkdown(streamReasoning) }} />
+                    </div>
+                  </div>
+                </details>
+              )}
+              {streamToolCalls.length > 0 && !streamContent && (
+                <div className="chat-activity-group" style={{ marginBottom: 'var(--spacing-sm)' }}>
+                  {streamToolCalls.map((tc, idx) => (
+                    <div key={idx} className="chat-activity-item chat-activity-tool-call" style={{ padding: 'var(--spacing-xs) var(--spacing-sm)' }}>
+                      <span className="chat-activity-item-label">
+                        <i className="fas fa-bolt" style={{ marginRight: 'var(--spacing-xs)' }} />
+                        {tc.name}
+                      </span>
+                      <span style={{ opacity: 0.5, fontSize: '0.85em', marginLeft: 'var(--spacing-xs)' }}>calling...</span>
+                    </div>
+                  ))}
+                </div>
+              )}
+              {streamContent && (
+                <div className="chat-message-content">
+                  <span dangerouslySetInnerHTML={{ __html: renderMarkdown(streamContent) }} />
+                  <span className="chat-streaming-cursor" />
+                </div>
+              )}
+            </div>
+          </div>
+        )}
+        {processing && !streamReasoning && !streamContent && streamToolCalls.length === 0 && (
           <div className="chat-message chat-message-assistant">
             <div className="chat-message-avatar" style={{ background: 'var(--color-bg-tertiary)', color: 'var(--color-text-muted)' }}>
               <i className="fas fa-cogs" />
diff --git a/core/http/react-ui/src/pages/AgentJobDetails.jsx b/core/http/react-ui/src/pages/AgentJobDetails.jsx
index b8fcedd39..8729c5243 100644
--- a/core/http/react-ui/src/pages/AgentJobDetails.jsx
+++ b/core/http/react-ui/src/pages/AgentJobDetails.jsx
@@ -8,6 +8,9 @@ const traceColors = {
   tool_call: { bg: 'rgba(139,92,246,0.1)', border: 'rgba(139,92,246,0.3)', icon: 'fa-wrench', color: 'var(--color-accent)' },
   tool_result: { bg: 'rgba(34,197,94,0.1)', border: 'rgba(34,197,94,0.3)', icon: 'fa-check', color: 'var(--color-success)' },
   status: { bg: 'rgba(245,158,11,0.1)', border: 'rgba(245,158,11,0.3)', icon: 'fa-info-circle', color: 'var(--color-warning)' },
+  stream_reasoning: { bg: 'rgba(99,102,241,0.06)', border: 'rgba(99,102,241,0.2)', icon: 'fa-lightbulb', color: 'var(--color-primary)' },
+  stream_content: { bg: 'rgba(59,130,246,0.08)', border: 'rgba(59,130,246,0.25)', icon: 'fa-pen-nib', color: 'var(--color-info, #3b82f6)' },
+  stream_tool_call: { bg: 'rgba(139,92,246,0.06)', border: 'rgba(139,92,246,0.2)', icon: 'fa-bolt', color: 'var(--color-accent)' },
 }
 
 function TraceCard({ trace, index }) {
diff --git a/core/services/agent_jobs.go b/core/services/agent_jobs.go
index 8cf9777e8..10fa92ca7 100644
--- a/core/services/agent_jobs.go
+++ b/core/services/agent_jobs.go
@@ -887,6 +887,35 @@ func (s *AgentJobService) executeJobInternal(job schema.Job, task schema.Task, c
 			job.Traces = append(job.Traces, trace)
 			s.jobs.Set(job.ID, job)
 		}),
+		cogito.WithStreamCallback(func(ev cogito.StreamEvent) {
+			switch ev.Type {
+			case cogito.StreamEventReasoning:
+				trace := schema.JobTrace{
+					Type:      "stream_reasoning",
+					Content:   ev.Content,
+					Timestamp: time.Now(),
+				}
+				job.Traces = append(job.Traces, trace)
+				s.jobs.Set(job.ID, job)
+			case cogito.StreamEventContent:
+				trace := schema.JobTrace{
+					Type:      "stream_content",
+					Content:   ev.Content,
+					Timestamp: time.Now(),
+				}
+				job.Traces = append(job.Traces, trace)
+				s.jobs.Set(job.ID, job)
+			case cogito.StreamEventToolCall:
+				trace := schema.JobTrace{
+					Type:     "stream_tool_call",
+					Content:  ev.ToolArgs,
+					ToolName: ev.ToolName,
+					Timestamp: time.Now(),
+				}
+				job.Traces = append(job.Traces, trace)
+				s.jobs.Set(job.ID, job)
+			}
+		}),
 	)
 
 	// Execute tools
diff --git a/go.mod b/go.mod
index ba23fea78..e3eddb077 100644
--- a/go.mod
+++ b/go.mod
@@ -31,7 +31,7 @@ require (
 	github.com/mholt/archiver/v3 v3.5.1
 	github.com/microcosm-cc/bluemonday v1.0.27
 	github.com/modelcontextprotocol/go-sdk v1.4.0
-	github.com/mudler/cogito v0.9.5-0.20260313170202-42271c7e1a6b
+	github.com/mudler/cogito v0.9.5-0.20260315222927-63abdec7189b
 	github.com/mudler/edgevpn v0.31.1
 	github.com/mudler/go-processmanager v0.1.0
 	github.com/mudler/memory v0.0.0-20251216220809-d1256471a6c2
@@ -128,7 +128,7 @@ require (
 	github.com/kevinburke/ssh_config v1.2.0 // indirect
 	github.com/labstack/gommon v0.4.2 // indirect
 	github.com/mschoch/smat v0.2.0 // indirect
-	github.com/mudler/LocalAGI v0.0.0-20260314222828-e38f13ab8cec
+	github.com/mudler/LocalAGI v0.0.0-20260315223407-da286065e126
 	github.com/mudler/localrecall v0.5.9-0.20260314221856-96d63875cc47 // indirect
 	github.com/mudler/skillserver v0.0.5-0.20260221145827-0639a82c8f49
 	github.com/olekukonko/tablewriter v0.0.5 // indirect
diff --git a/go.sum b/go.sum
index b477239d2..5902da1e0 100644
--- a/go.sum
+++ b/go.sum
@@ -654,10 +654,10 @@ github.com/mr-tron/base58 v1.2.0 h1:T/HDJBh4ZCPbU39/+c3rRvE0uKBQlU27+QI8LJ4t64o=
 github.com/mr-tron/base58 v1.2.0/go.mod h1:BinMc/sQntlIE1frQmRFPUoPA1Zkr8VRgBdjWI2mNwc=
 github.com/mschoch/smat v0.2.0 h1:8imxQsjDm8yFEAVBe7azKmKSgzSkZXDuKkSq9374khM=
 github.com/mschoch/smat v0.2.0/go.mod h1:kc9mz7DoBKqDyiRL7VZN8KvXQMWeTaVnttLRXOlotKw=
-github.com/mudler/LocalAGI v0.0.0-20260314222828-e38f13ab8cec h1:Y6JYhfJidFktfmQC00SwHtQVh0lr0O52qihgTKddSNU=
-github.com/mudler/LocalAGI v0.0.0-20260314222828-e38f13ab8cec/go.mod h1:yf+IlZzQCGgKPGFn5yclzA2Dxxhy75K3YDubkjCub04=
-github.com/mudler/cogito v0.9.5-0.20260313170202-42271c7e1a6b h1:Hs2Byjnukgkwm5Vw7z5aSZEjznPHaxjr2vLc5Uu1fHQ=
-github.com/mudler/cogito v0.9.5-0.20260313170202-42271c7e1a6b/go.mod h1:6sfja3lcu2nWRzEc0wwqGNu/eCG3EWgij+8s7xyUeQ4=
+github.com/mudler/LocalAGI v0.0.0-20260315223407-da286065e126 h1:7owcRhvwMP5BDDPsoK8TLnOBY4khcGJXutMY7pe9lhc=
+github.com/mudler/LocalAGI v0.0.0-20260315223407-da286065e126/go.mod h1:w8kG2r/TlADJ4SnYemPNirW1pdHsqM/RAdCPk9r5Ll0=
+github.com/mudler/cogito v0.9.5-0.20260315222927-63abdec7189b h1:A74T2Lauvg61KodYqsjTYDY05kPLcW+efVZjd23dghU=
+github.com/mudler/cogito v0.9.5-0.20260315222927-63abdec7189b/go.mod h1:6sfja3lcu2nWRzEc0wwqGNu/eCG3EWgij+8s7xyUeQ4=
 github.com/mudler/edgevpn v0.31.1 h1:7qegiDWd0kAg6ljhNHxqvp8hbo/6BbzSdbb7/2WZfiY=
 github.com/mudler/edgevpn v0.31.1/go.mod h1:ftV5B0nKFzm4R8vR80UYnCb2nf7lxCRgAALxUEEgCf8=
 github.com/mudler/go-piper v0.0.0-20241023091659-2494246fd9fc h1:RxwneJl1VgvikiX28EkpdAyL4yQVnJMrbquKospjHyA=