diff --git a/backend/open_webui/env.py b/backend/open_webui/env.py
index d49a79b3b1..badadf0b40 100644
--- a/backend/open_webui/env.py
+++ b/backend/open_webui/env.py
@@ -374,6 +374,21 @@ ENABLE_REALTIME_CHAT_SAVE = (
 
 ENABLE_QUERIES_CACHE = os.environ.get("ENABLE_QUERIES_CACHE", "False").lower() == "true"
 
+ENABLE_WRAP_TOOL_RESULT = (
+    os.environ.get("ENABLE_WRAP_TOOL_RESULT", "True").lower() == "true"
+)
+
+TOOL_RESULT_INDENT_SIZE = os.environ.get("TOOL_RESULT_INDENT_SIZE", 2)
+
+if TOOL_RESULT_INDENT_SIZE == "":
+    TOOL_RESULT_INDENT_SIZE = 2
+else:
+    try:
+        TOOL_RESULT_INDENT_SIZE = int(TOOL_RESULT_INDENT_SIZE)
+    except Exception:
+        TOOL_RESULT_INDENT_SIZE = 2
+
+
 ####################################
 # REDIS
 ####################################
diff --git a/backend/open_webui/utils/middleware.py b/backend/open_webui/utils/middleware.py
index d397471dd9..d6f1e1a255 100644
--- a/backend/open_webui/utils/middleware.py
+++ b/backend/open_webui/utils/middleware.py
@@ -118,6 +118,8 @@ from open_webui.env import (
     BYPASS_MODEL_ACCESS_CONTROL,
     ENABLE_REALTIME_CHAT_SAVE,
     ENABLE_QUERIES_CACHE,
+    ENABLE_WRAP_TOOL_RESULT,
+    TOOL_RESULT_INDENT_SIZE,
 )
 from open_webui.constants import TASKS
 
@@ -275,15 +277,23 @@ def process_tool_result(
                     )
                     tool_result.remove(item)
 
-    if isinstance(tool_result, list):
+    if isinstance(tool_result, list) and ENABLE_WRAP_TOOL_RESULT:
         tool_result = {"results": tool_result}
 
     if isinstance(tool_result, dict) or isinstance(tool_result, list):
-        tool_result = json.dumps(tool_result, indent=2, ensure_ascii=False)
+        tool_result = dump_tool_result_to_json(tool_result, ensure_ascii=False)
 
     return tool_result, tool_result_files, tool_result_embeds
 
 
+def dump_tool_result_to_json(model, ensure_ascii=True):
+    indent_size = None if TOOL_RESULT_INDENT_SIZE == 0 else TOOL_RESULT_INDENT_SIZE
+    separators = None if indent_size and indent_size > 0 else (",", ":")
+    return json.dumps(
+        model, indent=indent_size, separators=separators, ensure_ascii=ensure_ascii
+    )
+
+
 async def chat_completion_tools_handler(
     request: Request, body: dict, extra_params: dict, user: UserModel, models, tools
 ) -> tuple[dict, dict]:
@@ -2070,9 +2080,9 @@ async def process_chat_response(
 
                                 if tool_result is not None:
                                     tool_result_embeds = result.get("embeds", "")
-                                    tool_calls_display_content = f'{tool_calls_display_content}<details type="tool_calls" done="true" id="{tool_call_id}" name="{tool_name}" arguments="{html.escape(json.dumps(tool_arguments))}" result="{html.escape(json.dumps(tool_result, ensure_ascii=False))}" files="{html.escape(json.dumps(tool_result_files)) if tool_result_files else ""}" embeds="{html.escape(json.dumps(tool_result_embeds))}">\n<summary>Tool Executed</summary>\n</details>\n'
+                                    tool_calls_display_content = f'{tool_calls_display_content}<details type="tool_calls" done="true" id="{tool_call_id}" name="{tool_name}" arguments="{html.escape(dump_tool_result_to_json(tool_arguments))}" result="{html.escape(dump_tool_result_to_json(tool_result, ensure_ascii=True))}" files="{html.escape(dump_tool_result_to_json(tool_result_files)) if tool_result_files else ""}" embeds="{html.escape(dump_tool_result_to_json(tool_result_embeds))}">\n<summary>Tool Executed</summary>\n</details>\n'
                                 else:
-                                    tool_calls_display_content = f'{tool_calls_display_content}<details type="tool_calls" done="false" id="{tool_call_id}" name="{tool_name}" arguments="{html.escape(json.dumps(tool_arguments))}">\n<summary>Executing...</summary>\n</details>\n'
+                                    tool_calls_display_content = f'{tool_calls_display_content}<details type="tool_calls" done="false" id="{tool_call_id}" name="{tool_name}" arguments="{html.escape(dump_tool_result_to_json(tool_arguments))}">\n<summary>Executing...</summary>\n</details>\n'
 
                             if not raw:
                                 content = f"{content}{tool_calls_display_content}"
@@ -2088,7 +2098,7 @@ async def process_chat_response(
                                     "arguments", ""
                                 )
 
-                                tool_calls_display_content = f'{tool_calls_display_content}\n<details type="tool_calls" done="false" id="{tool_call_id}" name="{tool_name}" arguments="{html.escape(json.dumps(tool_arguments))}">\n<summary>Executing...</summary>\n</details>\n'
+                                tool_calls_display_content = f'{tool_calls_display_content}\n<details type="tool_calls" done="false" id="{tool_call_id}" name="{tool_name}" arguments="{html.escape(dump_tool_result_to_json(tool_arguments))}">\n<summary>Executing...</summary>\n</details>\n'
 
                             if not raw:
                                 content = f"{content}{tool_calls_display_content}"
diff --git a/src/lib/components/chat/Chat.svelte b/src/lib/components/chat/Chat.svelte
index c2ebe59bea..c82e645586 100644
--- a/src/lib/components/chat/Chat.svelte
+++ b/src/lib/components/chat/Chat.svelte
@@ -51,7 +51,7 @@
 		getMessageContentParts,
 		createMessagesList,
 		getPromptVariables,
-		processDetails,
+		processDetailsAndExtractToolCalls,
 		removeAllDetails,
 		getCodeBlockContents
 	} from '$lib/utils';
@@ -1873,45 +1873,79 @@
 			params?.stream_response ??
 			true;
 
-		let messages = [
-			params?.system || $settings.system
-				? {
-						role: 'system',
-						content: `${params?.system ?? $settings?.system ?? ''}`
-					}
-				: undefined,
-			..._messages.map((message) => ({
-				...message,
-				content: processDetails(message.content)
-			}))
-		].filter((message) => message);
+		let messages = [];
+		if (params?.system || $settings.system) {
+			messages.push({
+				role: 'system',
+				content: `${params?.system ?? $settings?.system ?? ''}`
+			});
+		}
 
-		messages = messages
-			.map((message, idx, arr) => ({
-				role: message.role,
-				...((message.files?.filter((file) => file.type === 'image').length > 0 ?? false) &&
-				message.role === 'user'
-					? {
-							content: [
-								{
-									type: 'text',
-									text: message?.merged?.content ?? message.content
-								},
-								...message.files
-									.filter((file) => file.type === 'image')
-									.map((file) => ({
-										type: 'image_url',
-										image_url: {
-											url: file.url
-										}
-									}))
-							]
-						}
-					: {
-							content: message?.merged?.content ?? message.content
-						})
-			}))
-			.filter((message) => message?.role === 'user' || message?.content?.trim());
+		for (const message of _messages) {
+			let content = message?.merged?.content ?? message?.content;
+			content = message?.role !== 'user' ? content?.trim() : content;
+			let processedMessages = processDetailsAndExtractToolCalls(content ?? '');
+
+			let nonToolMesssage = null;
+			let toolCallIndex = 0;
+
+			for (const processedMessage of processedMessages) {
+				if (typeof processedMessage == 'string') {
+					nonToolMesssage = {
+						role: message?.role,
+						content: processedMessage
+					};
+
+					if (
+						message?.role === 'user' &&
+						(message.files?.filter((file) => file.type === 'image').length > 0 ?? false)
+					) {
+						nonToolMesssage.content = [
+							{
+								type: 'text',
+								text: nonToolMesssage.content
+							},
+							...message.files
+								.filter((file) => file.type === 'image')
+								.map((file) => ({
+									type: 'image_url',
+									image_url: {
+										url: file.url
+									}
+								}))
+						];
+					}
+
+					messages.push(nonToolMesssage);
+					continue;
+				}
+
+				if (!nonToolMesssage) {
+					nonToolMesssage = {
+						role: message?.role,
+						content: ''
+					};
+					messages.push(nonToolMesssage);
+				}
+
+				nonToolMesssage.tool_calls ??= [];
+				nonToolMesssage.tool_calls.push({
+					index: toolCallIndex++,
+					id: processedMessage.id,
+					type: 'function',
+					function: {
+						name: processedMessage.name,
+						arguments: processedMessage.arguments
+					}
+				});
+
+				messages.push({
+					role: 'tool',
+					tool_call_id: processedMessage.id,
+					content: processedMessage.result
+				});
+			}
+		}
 
 		const toolIds = [];
 		const toolServerIds = [];
diff --git a/src/lib/utils/index.ts b/src/lib/utils/index.ts
index 5b92da8b8e..feffbd546b 100644
--- a/src/lib/utils/index.ts
+++ b/src/lib/utils/index.ts
@@ -856,28 +856,77 @@ export const removeAllDetails = (content) => {
 	return content;
 };
 
-export const processDetails = (content) => {
+// This regex matches <details> tags with type="tool_calls" and captures their attributes
+const toolCallsDetailsRegex = /<details\s+type="tool_calls"([^>]*)>([\s\S]*?)<\/details>/gis;
+const detailsAttributesRegex = /(\w+)="([^"]*)"/g;
+
+export const processDetailsAndExtractToolCalls = (content) => {
 	content = removeDetails(content, ['reasoning', 'code_interpreter']);
 
-	// This regex matches <details> tags with type="tool_calls" and captures their attributes to convert them to a string
-	const detailsRegex = /<details\s+type="tool_calls"([^>]*)>([\s\S]*?)<\/details>/gis;
-	const matches = content.match(detailsRegex);
-	if (matches) {
+	// Split text and tool calls into messages array
+	let messages = [];
+	const matches = content.match(toolCallsDetailsRegex);
+	if (matches && matches.length > 0) {
+		let previousDetailsEndIndex = 0;
 		for (const match of matches) {
-			const attributesRegex = /(\w+)="([^"]*)"/g;
+			let detailsStartIndex = content.indexOf(match, previousDetailsEndIndex);
+			let assistantMessage = content.substr(
+				previousDetailsEndIndex,
+				detailsStartIndex - previousDetailsEndIndex
+			);
+			previousDetailsEndIndex = detailsStartIndex + match.length;
+
+			assistantMessage = assistantMessage.trim('\n');
+			if (assistantMessage.length > 0) {
+				messages.push(assistantMessage);
+			}
+
 			const attributes = {};
 			let attributeMatch;
-			while ((attributeMatch = attributesRegex.exec(match)) !== null) {
+			while ((attributeMatch = detailsAttributesRegex.exec(match)) !== null) {
 				attributes[attributeMatch[1]] = attributeMatch[2];
 			}
 
-			content = content.replace(match, `"${attributes.result}"`);
+			if (!attributes.id) {
+				continue;
+			}
+
+			let toolCall = {
+				id: attributes.id,
+				name: attributes.name,
+				arguments: unescapeHtml(attributes.arguments ?? ''),
+				result: unescapeHtml(attributes.result ?? '')
+			};
+
+			toolCall.arguments = parseDoubleEncodedString(toolCall.arguments);
+			toolCall.result = parseDoubleEncodedString(toolCall.result);
+
+			messages.push(toolCall);
 		}
+
+		let finalAssistantMessage = content.substr(previousDetailsEndIndex);
+		finalAssistantMessage = finalAssistantMessage.trim('\n');
+		if (finalAssistantMessage.length > 0) {
+			messages.push(finalAssistantMessage);
+		}
+	} else if (content.length > 0) {
+		messages.push(content);
 	}
 
-	return content;
+	return messages;
 };
 
+function parseDoubleEncodedString(value) {
+	try {
+		let parsedValue = JSON.parse(value);
+		if (typeof parsedValue == 'string') {
+			return parsedValue;
+		}
+	} catch {}
+
+	return value;
+}
+
 // This regular expression matches code blocks marked by triple backticks
 const codeBlockRegex = /```[\s\S]*?```/g;