diff --git a/src/frontends/tui/components/App.tsx b/src/frontends/tui/components/App.tsx
index 199162f..8d0e8c7 100644
--- a/src/frontends/tui/components/App.tsx
+++ b/src/frontends/tui/components/App.tsx
@@ -1,4 +1,4 @@
-import React, { useState, useCallback, useRef } from 'react';
+import React, { useState, useCallback, useRef, useEffect } from 'react';
 import { Box, useApp, useInput } from 'ink';
 import { StatusBar } from './StatusBar.js';
 import { MessageList } from './MessageList.js';
@@ -8,6 +8,34 @@ import type { Message, ModelClient, TokenUsage } from '../../../models/types.js'
 import type { ModelRouter } from '../../../models/router.js';
 import type { ManagedSession } from '../../../session/index.js';
 import type { NativeAgent } from '../../../backends/native/agent.js';
+import type { ToolUseEvent } from '../../../backends/native/agent.js';
+
+/** Format a tool name like "gmail.list" -> "Gmail: List" */
+function formatToolName(name: string): string {
+  const parts = name.split('.');
+  return parts.map((p, i) => {
+    const capitalized = p.charAt(0).toUpperCase() + p.slice(1);
+    return i === 0 && parts.length > 1 ? capitalized + ':' : capitalized;
+  }).join(' ');
+}
+
+/** Format tool args as a compact, readable summary. */
+function formatToolArgs(args: unknown): string {
+  if (!args || typeof args !== 'object') return '';
+  const entries = Object.entries(args as Record<string, unknown>);
+  if (entries.length === 0) return '';
+  const parts = entries.map(([key, value]) => {
+    if (typeof value === 'string') {
+      const display = value.length > 50 ? value.slice(0, 47) + '...' : value;
+      return `${key}: "${display}"`;
+    }
+    if (typeof value === 'number' || typeof value === 'boolean') {
+      return `${key}: ${value}`;
+    }
+    return `${key}: ${JSON.stringify(value)}`;
+  });
+  return parts.join(', ');
+}
 
 export interface AppProps {
   session: ManagedSession;
@@ -37,6 +65,35 @@ export function App({
   const [tokenUsage, setTokenUsage] = useState<TokenUsage>({ inputTokens: 0, outputTokens: 0 });
   const [currentModel, setCurrentModel] = useState(model);
   const abortRef = useRef(false);
+  const toolLinesRef = useRef<string[]>([]);
+
+  // Set up an Ink-compatible onToolUse callback for the agent.
+  // This replaces the process.stdout.write callback (which corrupts Ink rendering)
+  // with one that updates React state to show tool activity in the streaming area.
+  useEffect(() => {
+    if (!agent) return;
+
+    const handleToolEvent = (event: ToolUseEvent) => {
+      if (event.type === 'start') {
+        const label = formatToolName(event.tool);
+        const argsStr = event.args ? ` (${formatToolArgs(event.args)})` : '';
+        toolLinesRef.current = [...toolLinesRef.current, `> ${label}${argsStr}`];
+        setStreamingContent(toolLinesRef.current.join('\n'));
+      } else if (event.type === 'end' && event.result) {
+        const icon = event.result.success ? 'done' : 'error';
+        const detail = event.result.success
+          ? `(${event.result.output.split('\n').length} lines)`
+          : (event.result.error ?? 'unknown error');
+        toolLinesRef.current = [...toolLinesRef.current, `  ${icon} ${detail}`];
+        setStreamingContent(toolLinesRef.current.join('\n'));
+      }
+    };
+
+    agent.setOnToolUse(handleToolEvent);
+    return () => {
+      agent.setOnToolUse(undefined);
+    };
+  }, [agent]);
 
   useInput((inputChar, key) => {
     if (key.escape) {
@@ -172,6 +229,7 @@ export function App({
     // Process response
     setIsStreaming(true);
     setStreamingContent('');
+    toolLinesRef.current = [];
     abortRef.current = false;
 
     try {