diff --git a/site/src/components/ai-elements/response.stories.tsx b/site/src/components/ai-elements/response.stories.tsx
index 5a2392567c..50ec73650e 100644
--- a/site/src/components/ai-elements/response.stories.tsx
+++ b/site/src/components/ai-elements/response.stories.tsx
@@ -103,3 +103,39 @@ export const JsxInProse: Story = {
 		expect(marker2).toBeInTheDocument();
 	},
 };
+
+// Verifies that streaming mode closes incomplete inline markdown via
+// remend so the user never sees raw syntax during the reveal animation.
+export const StreamingInlineMarkdown: Story = {
+	args: {
+		children: "This is **bold text that has not been close",
+		streaming: true,
+	},
+	play: async ({ canvasElement }) => {
+		const canvas = within(canvasElement);
+		// remend should close the unclosed ** so the text renders
+		// as <strong>, not as a raw "**" literal.
+		const el = await canvas.findByText(/bold text/);
+		expect(el).toBeInTheDocument();
+		// The raw double-asterisk should not appear as visible text.
+		const bodyText = canvasElement.textContent ?? "";
+		expect(bodyText).not.toContain("**");
+	},
+};
+
+// Verifies that an incomplete fenced code block in streaming mode
+// renders inside a code element rather than showing raw backticks.
+export const StreamingCodeFence: Story = {
+	args: {
+		children: "```ts\nconst x = 1",
+		streaming: true,
+	},
+	play: async ({ canvasElement }) => {
+		const canvas = within(canvasElement);
+		const codeContent = await canvas.findByText(/const x = 1/);
+		expect(codeContent).toBeInTheDocument();
+		// The raw triple-backtick should not appear as visible text.
+		const bodyText = canvasElement.textContent ?? "";
+		expect(bodyText).not.toContain("```");
+	},
+};
diff --git a/site/src/components/ai-elements/response.tsx b/site/src/components/ai-elements/response.tsx
index 2709cdccde..7a8fd2f22e 100644
--- a/site/src/components/ai-elements/response.tsx
+++ b/site/src/components/ai-elements/response.tsx
@@ -15,6 +15,10 @@ import { cn } from "utils/cn";
 interface ResponseProps extends Omit<ComponentPropsWithRef<"div">, "children"> {
 	children: string;
 	urlTransform?: UrlTransform;
+	/** Enable streaming-mode Streamdown with incomplete-markdown
+	 * preprocessing (remend) and useTransition-based render
+	 * scheduling. Pass true only for live-streaming output. */
+	streaming?: boolean;
 }
 
 // Omit rehype-raw so HTML-like syntax in LLM output is rendered as
@@ -231,6 +235,7 @@ export const Response = ({
 	children,
 	ref,
 	urlTransform,
+	streaming,
 	...props
 }: ResponseProps) => {
 	const theme = useTheme();
@@ -253,6 +258,8 @@ export const Response = ({
 				components={components}
 				urlTransform={urlTransform}
 				rehypePlugins={chatRehypePlugins}
+				mode={streaming ? "streaming" : "static"}
+				parseIncompleteMarkdown={streaming}
 			>
 				{children}
 			</Streamdown>
diff --git a/site/src/pages/AgentsPage/components/AgentDetail/ConversationTimeline.tsx b/site/src/pages/AgentsPage/components/AgentDetail/ConversationTimeline.tsx
index 114c016281..b560f5433b 100644
--- a/site/src/pages/AgentsPage/components/AgentDetail/ConversationTimeline.tsx
+++ b/site/src/pages/AgentsPage/components/AgentDetail/ConversationTimeline.tsx
@@ -69,6 +69,7 @@ const ReasoningDisclosure: FC<{
 				<Response
 					className="text-[11px] text-content-secondary"
 					urlTransform={urlTransform}
+					streaming={isStreaming}
 				>
 					{displayText}
 				</Response>
@@ -117,7 +118,11 @@ const SmoothedResponse: FC<{
 		bypassSmoothing: false,
 		streamKey,
 	});
-	return <Response urlTransform={urlTransform}>{visibleText}</Response>;
+	return (
+		<Response streaming urlTransform={urlTransform}>
+			{visibleText}
+		</Response>
+	);
 };
 
 const InlineTextAttachmentButton: FC<{