diff --git a/pkg/chat/chat.go b/pkg/chat/chat.go
index 16df0a8a..efd70c90 100644
--- a/pkg/chat/chat.go
+++ b/pkg/chat/chat.go
@@ -2,58 +2,14 @@ package chat
 
 import (
 	"bufio"
-	"context"
 	"io"
 	"slices"
 	"strings"
 	"time"
 
 	core "dappco.re/go/core"
-	guimcp "forge.lthn.ai/core/gui/pkg/mcp"
 )
 
-type ToolExecutor interface {
-	Manifest() []guimcp.ToolDescriptor
-	ManifestText() string
-	CallTool(ctx context.Context, name string, arguments map[string]any) (string, error)
-}
-
-type ToolCallHandler struct {
-	executor ToolExecutor
-}
-
-func NewToolCallHandler(executor ToolExecutor) *ToolCallHandler {
-	return &ToolCallHandler{executor: executor}
-}
-
-func (h *ToolCallHandler) Execute(ctx context.Context, call ToolCall) ToolResult {
-	if h == nil || h.executor == nil {
-		return ToolResult{
-			ToolCallID: call.ID,
-			Content:    "tool execution unavailable",
-		}
-	}
-	content, err := h.executor.CallTool(ctx, call.Name, call.Arguments)
-	if err != nil {
-		return ToolResult{
-			ToolCallID: call.ID,
-			Content:    err.Error(),
-		}
-	}
-	return ToolResult{
-		ToolCallID: call.ID,
-		Content:    content,
-	}
-}
-
-func (h *ToolCallHandler) ExecuteAll(ctx context.Context, calls []ToolCall) []ToolResult {
-	results := make([]ToolResult, 0, len(calls))
-	for _, call := range calls {
-		results = append(results, h.Execute(ctx, call))
-	}
-	return results
-}
-
 type StreamCallbacks struct {
 	OnStart          func(streamID string)
 	OnToken          func(content string)
diff --git a/pkg/chat/service.go b/pkg/chat/service.go
index 3e801d77..baa3b3a7 100644
--- a/pkg/chat/service.go
+++ b/pkg/chat/service.go
@@ -64,7 +64,7 @@ type Service struct {
 	store              *store.Store
 	httpClient         *http.Client
 	toolExecutor       ToolExecutor
-	toolHandler        *ToolCallHandler
+	toolHandler        ToolCallHandler
 	pendingAttachments map[string][]ImageAttachment
 	thinkingStates     map[string]ThinkingState
 	mu                 sync.Mutex
@@ -227,6 +227,8 @@ func (s *Service) OnStartup(_ context.Context) core.Result {
 		subsystem.RegisterTools(server)
 		s.toolExecutor = subsystem
 	}
+	registerMCPToolActions(s.Core(), s.toolExecutor)
+	s.toolExecutor = newActionToolExecutor(s.Core(), s.toolExecutor)
 	s.toolHandler = NewToolCallHandler(s.toolExecutor)
 	s.Core().RegisterQuery(s.handleQuery)
 	s.registerActions()
@@ -1078,6 +1080,7 @@ func (s *Service) send(ctx context.Context, input sendInput) (string, error) {
 		if err != nil {
 			return "", err
 		}
+		assistantMessage = s.withInlineToolCall(conv.ID, assistantMessage)
 		lastAssistantMessageID = assistantMessage.ID
 		if hasRenderableContent(assistantMessage) {
 			conv.Messages = append(conv.Messages, assistantMessage)
@@ -1092,9 +1095,19 @@ func (s *Service) send(ctx context.Context, input sendInput) (string, error) {
 		if len(assistantMessage.ToolCalls) == 0 {
 			break
 		}
+		if s.toolHandler == nil {
+			break
+		}
 
-		results := s.toolHandler.ExecuteAll(ctx, assistantMessage.ToolCalls)
-		for _, result := range results {
+		for _, call := range assistantMessage.ToolCalls {
+			resultContent, err := s.toolHandler.OnToolCall(ctx, call)
+			result := ToolResult{
+				ToolCallID: call.ID,
+				Content:    renderToolResultContent(resultContent),
+			}
+			if err != nil {
+				result.Content = err.Error()
+			}
 			toolMessage := ChatMessage{
 				ID:          "tool-" + strconv.FormatInt(s.now().UnixNano(), 36),
 				Role:        "tool",
@@ -1185,6 +1198,29 @@ func (s *Service) streamAssistant(ctx context.Context, conv Conversation, settin
 	return renderer.Message(messageID, conv.Model, s.now()), nil
 }
 
+func (s *Service) withInlineToolCall(conversationID string, message ChatMessage) ChatMessage {
+	if len(message.ToolCalls) > 0 {
+		return message
+	}
+
+	call, ok, err := parseInlineToolCall(message.Content)
+	if err != nil {
+		_ = s.Core().LogWarn(err, "chat.tool_call", "malformed inline tool_call ignored")
+		return message
+	}
+	if !ok {
+		return message
+	}
+	if call.ID == "" {
+		call.ID = "call-" + strconv.FormatInt(s.now().UnixNano(), 36)
+	}
+	message.Content = ""
+	message.ToolCalls = []ToolCall{call}
+	message.FinishReason = "tool_calls"
+	s.emit(ActionToolCallStarted{ConversationID: conversationID, MessageID: message.ID, Call: call})
+	return message
+}
+
 func (s *Service) buildCompletionRequest(conv Conversation, settings ChatSettings) openAIRequest {
 	request := openAIRequest{
 		Model:       s.resolveModel(conv.Model, settings.DefaultModel),
@@ -1197,13 +1233,18 @@ func (s *Service) buildCompletionRequest(conv Conversation, settings ChatSetting
 	}
 
 	systemPrompt := strings.TrimSpace(settings.SystemPrompt)
-	if s.toolExecutor != nil {
-		manifest := s.toolExecutor.ManifestText()
+	if s.toolHandler != nil {
+		manifest := s.toolHandler.BuildToolManifest()
 		if manifest != "" {
 			if systemPrompt != "" {
-				systemPrompt += "\n\n"
+				systemPrompt = manifest + "\n\n" + systemPrompt
+			} else {
+				systemPrompt = manifest
 			}
-			systemPrompt += manifest + "\nUse tools when helpful. When a tool is needed, emit a tool call with valid JSON arguments."
+		}
+	}
+	if s.toolExecutor != nil {
+		if len(s.toolExecutor.Manifest()) > 0 {
 			for _, tool := range s.toolExecutor.Manifest() {
 				request.Tools = append(request.Tools, openAIToolSpec{
 					Type: "function",
diff --git a/pkg/chat/tool_handler.go b/pkg/chat/tool_handler.go
new file mode 100644
index 00000000..912c6d95
--- /dev/null
+++ b/pkg/chat/tool_handler.go
@@ -0,0 +1,236 @@
+package chat
+
+import (
+	"context"
+	"sort"
+	"strings"
+
+	core "dappco.re/go/core"
+	guimcp "forge.lthn.ai/core/gui/pkg/mcp"
+)
+
+const mcpToolActionPrefix = "mcp.tool."
+
+// ToolExecutor is the chat-facing subset of the GUI MCP subsystem.
+type ToolExecutor interface {
+	Manifest() []guimcp.ToolDescriptor
+	ManifestText() string
+	CallTool(ctx context.Context, name string, arguments map[string]any) (string, error)
+}
+
+// ToolCallHandler intercepts model-emitted tool calls and renders the tool
+// manifest that is injected into the system prompt.
+type ToolCallHandler interface {
+	OnToolCall(ctx context.Context, call ToolCall) (result any, err error)
+	BuildToolManifest() string
+}
+
+type mcpToolCallHandler struct {
+	executor ToolExecutor
+}
+
+func NewToolCallHandler(executor ToolExecutor) ToolCallHandler {
+	if executor == nil {
+		return nil
+	}
+	return &mcpToolCallHandler{executor: executor}
+}
+
+func (h *mcpToolCallHandler) OnToolCall(ctx context.Context, call ToolCall) (any, error) {
+	if h == nil || h.executor == nil {
+		return nil, core.E("chat.tool_call", "tool execution unavailable", nil)
+	}
+	call.Name = strings.TrimSpace(call.Name)
+	if call.Name == "" {
+		return nil, core.E("chat.tool_call", "tool name is required", nil)
+	}
+	if call.Arguments == nil {
+		call.Arguments = map[string]any{}
+	}
+	return h.executor.CallTool(ctx, call.Name, call.Arguments)
+}
+
+func (h *mcpToolCallHandler) BuildToolManifest() string {
+	if h == nil || h.executor == nil {
+		return ""
+	}
+
+	tools := h.executor.Manifest()
+	if len(tools) == 0 {
+		return strings.TrimSpace(h.executor.ManifestText())
+	}
+	tools = append([]guimcp.ToolDescriptor(nil), tools...)
+	sort.Slice(tools, func(i, j int) bool {
+		return tools[i].Name < tools[j].Name
+	})
+
+	var builder strings.Builder
+	builder.WriteString("Available MCP tools:\n")
+	for _, tool := range tools {
+		builder.WriteString("- ")
+		builder.WriteString(tool.Name)
+		if strings.TrimSpace(tool.Description) != "" {
+			builder.WriteString(": ")
+			builder.WriteString(strings.TrimSpace(tool.Description))
+		}
+		schema := tool.InputSchema
+		if schema == nil {
+			schema = map[string]any{"type": "object"}
+		}
+		builder.WriteString("\n  input_schema: ")
+		builder.WriteString(jsonString(schema))
+		builder.WriteString("\n")
+	}
+	builder.WriteString("\nWhen a tool is needed, emit exactly one JSON object in this shape: ")
+	builder.WriteString(`{"tool_call":{"name":"tool_name","arguments":{}}}`)
+	builder.WriteString(".")
+	return strings.TrimSpace(builder.String())
+}
+
+type actionToolExecutor struct {
+	core     *core.Core
+	fallback ToolExecutor
+}
+
+func newActionToolExecutor(c *core.Core, fallback ToolExecutor) ToolExecutor {
+	if c == nil || fallback == nil {
+		return fallback
+	}
+	return &actionToolExecutor{core: c, fallback: fallback}
+}
+
+func registerMCPToolActions(c *core.Core, executor ToolExecutor) {
+	if c == nil || executor == nil {
+		return
+	}
+	for _, tool := range executor.Manifest() {
+		name := strings.TrimSpace(tool.Name)
+		if name == "" {
+			continue
+		}
+		actionName := mcpToolActionPrefix + name
+		if c.Action(actionName).Exists() {
+			continue
+		}
+		c.Action(actionName, func(ctx context.Context, opts core.Options) core.Result {
+			content, err := executor.CallTool(ctx, name, toolArgumentsFromOptions(opts))
+			return core.Result{}.New(content, err)
+		})
+	}
+}
+
+func (e *actionToolExecutor) Manifest() []guimcp.ToolDescriptor {
+	if e == nil || e.fallback == nil {
+		return nil
+	}
+	return e.fallback.Manifest()
+}
+
+func (e *actionToolExecutor) ManifestText() string {
+	if e == nil || e.fallback == nil {
+		return ""
+	}
+	return e.fallback.ManifestText()
+}
+
+func (e *actionToolExecutor) CallTool(ctx context.Context, name string, arguments map[string]any) (string, error) {
+	if e == nil || e.fallback == nil {
+		return "", core.E("chat.tool_call", "tool execution unavailable", nil)
+	}
+	if e.core != nil {
+		result := e.core.Action(mcpToolActionPrefix+strings.TrimSpace(name)).Run(ctx, core.NewOptions(core.Option{
+			Key:   "arguments",
+			Value: arguments,
+		}))
+		if !result.OK {
+			return "", resultError(result)
+		}
+		return renderToolResultContent(result.Value), nil
+	}
+	return e.fallback.CallTool(ctx, name, arguments)
+}
+
+type inlineToolCallEnvelope struct {
+	ToolCall *ToolCall `json:"tool_call"`
+}
+
+func parseInlineToolCall(content string) (ToolCall, bool, error) {
+	trimmed := strings.TrimSpace(content)
+	if trimmed == "" || !strings.Contains(trimmed, "tool_call") {
+		return ToolCall{}, false, nil
+	}
+
+	var envelope inlineToolCallEnvelope
+	if result := core.JSONUnmarshal([]byte(trimmed), &envelope); !result.OK {
+		return ToolCall{}, false, resultError(result)
+	}
+	if envelope.ToolCall == nil {
+		return ToolCall{}, false, nil
+	}
+	call := *envelope.ToolCall
+	call.Name = strings.TrimSpace(call.Name)
+	if call.Arguments == nil {
+		call.Arguments = map[string]any{}
+	}
+	return call, true, nil
+}
+
+func toolArgumentsFromOptions(opts core.Options) map[string]any {
+	if value := opts.Get("arguments"); value.OK {
+		if arguments, ok := value.Value.(map[string]any); ok {
+			return cloneArguments(arguments)
+		}
+		var arguments map[string]any
+		if result := core.JSONUnmarshal([]byte(jsonString(value.Value)), &arguments); result.OK {
+			return arguments
+		}
+	}
+
+	arguments := make(map[string]any, opts.Len())
+	for _, item := range opts.Items() {
+		arguments[item.Key] = item.Value
+	}
+	return arguments
+}
+
+func cloneArguments(arguments map[string]any) map[string]any {
+	if arguments == nil {
+		return map[string]any{}
+	}
+	clone := make(map[string]any, len(arguments))
+	for key, value := range arguments {
+		clone[key] = value
+	}
+	return clone
+}
+
+func renderToolResultContent(result any) string {
+	switch typed := result.(type) {
+	case nil:
+		return ""
+	case string:
+		return typed
+	case []byte:
+		return string(typed)
+	default:
+		return jsonString(typed)
+	}
+}
+
+func jsonString(value any) string {
+	result := core.JSONMarshal(value)
+	if !result.OK {
+		return "{}"
+	}
+	if data, ok := result.Value.([]byte); ok {
+		return string(data)
+	}
+	return "{}"
+}
+
+func resultError(result core.Result) error {
+	if err, ok := result.Value.(error); ok {
+		return err
+	}
+	return core.E("chat.tool_call", "unexpected result type", nil)
+}
diff --git a/pkg/chat/tool_handler_example_test.go b/pkg/chat/tool_handler_example_test.go
new file mode 100644
index 00000000..d9ca19b6
--- /dev/null
+++ b/pkg/chat/tool_handler_example_test.go
@@ -0,0 +1,47 @@
+package chat
+
+import (
+	"context"
+	"fmt"
+	"strings"
+
+	guimcp "forge.lthn.ai/core/gui/pkg/mcp"
+)
+
+type exampleToolExecutor struct{}
+
+func (exampleToolExecutor) Manifest() []guimcp.ToolDescriptor {
+	return []guimcp.ToolDescriptor{{
+		Name:        "layout_suggest",
+		Description: "Suggest a layout",
+		InputSchema: map[string]any{"type": "object"},
+	}}
+}
+
+func (exampleToolExecutor) ManifestText() string {
+	return "Available MCP tools:\n- layout_suggest: Suggest a layout"
+}
+
+func (exampleToolExecutor) CallTool(_ context.Context, name string, _ map[string]any) (string, error) {
+	if name == "layout_suggest" {
+		return `{"mode":"left-right"}`, nil
+	}
+	return "", nil
+}
+
+func ExampleNewToolCallHandler() {
+	handler := NewToolCallHandler(exampleToolExecutor{})
+	result, err := handler.OnToolCall(context.Background(), ToolCall{
+		ID:        "call-1",
+		Name:      "layout_suggest",
+		Arguments: map[string]any{"window_count": 2},
+	})
+
+	fmt.Println(err == nil)
+	fmt.Println(result)
+	fmt.Println(strings.Contains(handler.BuildToolManifest(), "layout_suggest"))
+	// Output:
+	// true
+	// {"mode":"left-right"}
+	// true
+}
diff --git a/pkg/chat/tool_handler_test.go b/pkg/chat/tool_handler_test.go
new file mode 100644
index 00000000..df349c53
--- /dev/null
+++ b/pkg/chat/tool_handler_test.go
@@ -0,0 +1,184 @@
+package chat
+
+import (
+	"context"
+	"io"
+	"net/http"
+	"strings"
+	"sync"
+	"testing"
+
+	core "dappco.re/go/core"
+	guimcp "forge.lthn.ai/core/gui/pkg/mcp"
+	"github.com/stretchr/testify/assert"
+	"github.com/stretchr/testify/require"
+)
+
+type strictToolExecutor struct {
+	mu    sync.Mutex
+	calls []ToolCall
+}
+
+func (m *strictToolExecutor) Manifest() []guimcp.ToolDescriptor {
+	return []guimcp.ToolDescriptor{{
+		Name:        "layout_suggest",
+		Description: "Suggest a layout",
+		InputSchema: map[string]any{
+			"type": "object",
+			"properties": map[string]any{
+				"window_count": map[string]any{"type": "integer"},
+			},
+		},
+	}}
+}
+
+func (m *strictToolExecutor) ManifestText() string {
+	return "Available MCP tools:\n- layout_suggest: Suggest a layout"
+}
+
+func (m *strictToolExecutor) CallTool(_ context.Context, name string, arguments map[string]any) (string, error) {
+	m.mu.Lock()
+	defer m.mu.Unlock()
+	m.calls = append(m.calls, ToolCall{Name: name, Arguments: arguments})
+	if name != "layout_suggest" {
+		return "", core.E("test.tool", "unknown tool: "+name, nil)
+	}
+	return `{"mode":"left-right"}`, nil
+}
+
+func (m *strictToolExecutor) Calls() []ToolCall {
+	m.mu.Lock()
+	defer m.mu.Unlock()
+	return append([]ToolCall(nil), m.calls...)
+}
+
+type completionRecorder struct {
+	mu        sync.Mutex
+	requests  []openAIRequest
+	responses [][]string
+}
+
+func (r *completionRecorder) ServeHTTP(w http.ResponseWriter, request *http.Request) {
+	body, _ := io.ReadAll(request.Body)
+	var completion openAIRequest
+	if result := core.JSONUnmarshal(body, &completion); !result.OK {
+		http.Error(w, renderToolResultContent(result.Value), http.StatusBadRequest)
+		return
+	}
+
+	r.mu.Lock()
+	r.requests = append(r.requests, completion)
+	index := len(r.requests) - 1
+	r.mu.Unlock()
+
+	if index >= len(r.responses) {
+		http.Error(w, "unexpected completion request", http.StatusInternalServerError)
+		return
+	}
+	writeSSE(w, r.responses[index]...)
+}
+
+func (r *completionRecorder) Requests() []openAIRequest {
+	r.mu.Lock()
+	defer r.mu.Unlock()
+	return append([]openAIRequest(nil), r.requests...)
+}
+
+func TestToolCallHandler_Good_ServiceDispatchesInlineToolCall(t *testing.T) {
+	executor := &strictToolExecutor{}
+	recorder := &completionRecorder{responses: [][]string{
+		{
+			`{"id":"chatcmpl-1","choices":[{"delta":{"content":"{\"tool_call\":{\"name\":\"layout_suggest\",\"arguments\":{\"window_count\":2}}}"}}]}`,
+			`{"id":"chatcmpl-1","choices":[{"finish_reason":"stop"}]}`,
+			`[DONE]`,
+		},
+		{
+			`{"id":"chatcmpl-2","choices":[{"delta":{"content":"Layout applied"}}]}`,
+			`{"id":"chatcmpl-2","choices":[{"finish_reason":"stop"}]}`,
+			`[DONE]`,
+		},
+	}}
+	c := newChatCore(t, recorder.ServeHTTP, executor)
+
+	send := c.Action("gui.chat.send").Run(context.Background(), core.NewOptions(
+		core.Option{Key: "content", Value: "Arrange this workspace"},
+	))
+	require.True(t, send.OK)
+
+	calls := executor.Calls()
+	require.Len(t, calls, 1)
+	assert.Equal(t, "layout_suggest", calls[0].Name)
+	assert.Equal(t, float64(2), calls[0].Arguments["window_count"])
+
+	conv := latestConversation(t, c)
+	history := historyMessages(t, c, conv.ID, 0)
+	require.Len(t, history, 4)
+	assert.Equal(t, "assistant", history[1].Role)
+	require.Len(t, history[1].ToolCalls, 1)
+	assert.Equal(t, "tool", history[2].Role)
+	assert.Contains(t, history[2].Content, "left-right")
+	assert.Equal(t, "Layout applied", history[3].Content)
+
+	requests := recorder.Requests()
+	require.Len(t, requests, 2)
+	require.NotEmpty(t, requests[0].Messages)
+	systemPrompt, ok := requests[0].Messages[0].Content.(string)
+	require.True(t, ok)
+	assert.True(t, strings.HasPrefix(systemPrompt, "Available MCP tools:"))
+	assert.Contains(t, systemPrompt, "layout_suggest")
+	assert.Contains(t, systemPrompt, "You are a helpful assistant.")
+}
+
+func TestToolCallHandler_Bad_UnknownToolErrorAppearsInConversation(t *testing.T) {
+	executor := &strictToolExecutor{}
+	recorder := &completionRecorder{responses: [][]string{
+		{
+			`{"id":"chatcmpl-1","choices":[{"delta":{"content":"{\"tool_call\":{\"name\":\"missing_tool\",\"arguments\":{}}}"}}]}`,
+			`{"id":"chatcmpl-1","choices":[{"finish_reason":"stop"}]}`,
+			`[DONE]`,
+		},
+		{
+			`{"id":"chatcmpl-2","choices":[{"delta":{"content":"Could not run that tool"}}]}`,
+			`{"id":"chatcmpl-2","choices":[{"finish_reason":"stop"}]}`,
+			`[DONE]`,
+		},
+	}}
+	c := newChatCore(t, recorder.ServeHTTP, executor)
+
+	send := c.Action("gui.chat.send").Run(context.Background(), core.NewOptions(
+		core.Option{Key: "content", Value: "Use the missing tool"},
+	))
+	require.True(t, send.OK)
+
+	conv := latestConversation(t, c)
+	history := historyMessages(t, c, conv.ID, 0)
+	require.Len(t, history, 4)
+	assert.Equal(t, "tool", history[2].Role)
+	assert.Contains(t, history[2].Content, "missing_tool")
+	assert.Equal(t, "Could not run that tool", history[3].Content)
+}
+
+func TestToolCallHandler_Ugly_MalformedInlineToolCallDoesNotDispatch(t *testing.T) {
+	executor := &strictToolExecutor{}
+	recorder := &completionRecorder{responses: [][]string{{
+		`{"id":"chatcmpl-1","choices":[{"delta":{"content":"{\"tool_call\":{\"name\":\"layout_suggest\",\"arguments\":"}}]}`,
+		`{"id":"chatcmpl-1","choices":[{"finish_reason":"stop"}]}`,
+		`[DONE]`,
+	}}}
+	c := newChatCore(t, recorder.ServeHTTP, executor)
+
+	send := c.Action("gui.chat.send").Run(context.Background(), core.NewOptions(
+		core.Option{Key: "content", Value: "Try malformed JSON"},
+	))
+	require.True(t, send.OK)
+
+	assert.Empty(t, executor.Calls())
+	assert.Len(t, recorder.Requests(), 1)
+
+	conv := latestConversation(t, c)
+	history := historyMessages(t, c, conv.ID, 0)
+	require.Len(t, history, 2)
+	assert.Equal(t, "assistant", history[1].Role)
+	assert.Contains(t, history[1].Content, "tool_call")
+	assert.Empty(t, history[1].ToolCalls)
+}