diff --git a/packages/@n8n/nodes-langchain/nodes/agents/Agent/agents/ToolsAgent/V3/helpers/runAgent.ts b/packages/@n8n/nodes-langchain/nodes/agents/Agent/agents/ToolsAgent/V3/helpers/runAgent.ts
index 6a6f9a46a9b..c58f8efcc4d 100644
--- a/packages/@n8n/nodes-langchain/nodes/agents/Agent/agents/ToolsAgent/V3/helpers/runAgent.ts
+++ b/packages/@n8n/nodes-langchain/nodes/agents/Agent/agents/ToolsAgent/V3/helpers/runAgent.ts
@@ -73,14 +73,7 @@ export async function runAgent(
 			},
 		);
 
-		const result = await processEventStream(
-			ctx,
-			eventStream,
-			itemIndex,
-			options.returnIntermediateSteps,
-			memory,
-			input,
-		);
+		const result = await processEventStream(ctx, eventStream, itemIndex);
 
 		// If result contains tool calls, build the request object like the normal flow
 		if (result.toolCalls && result.toolCalls.length > 0) {
@@ -91,6 +84,14 @@ export async function runAgent(
 				metadata: buildResponseMetadata(response, itemIndex),
 			};
 		}
+		// Save conversation to memory including any tool call context
+		if (memory && input && result?.output) {
+			await saveToMemory(input, result.output, memory, steps);
+		}
+
+		if (options.returnIntermediateSteps && steps.length > 0) {
+			result.intermediateSteps = steps;
+		}
 
 		return result;
 	} else {
@@ -105,21 +106,7 @@ export async function runAgent(
 		if ('returnValues' in modelResponse) {
 			// Save conversation to memory including any tool call context
 			if (memory && input && modelResponse.returnValues.output) {
-				// If there were tool calls in this conversation, include them in the context
-				let fullOutput = modelResponse.returnValues.output as string;
-
-				if (steps.length > 0) {
-					// Include tool call information in the conversation context
-					const toolContext = steps
-						.map(
-							(step) =>
-								`Tool: ${step.action.tool}, Input: ${JSON.stringify(step.action.toolInput)}, Result: ${step.observation}`,
-						)
-						.join('; ');
-					fullOutput = `[Used tools: ${toolContext}] ${fullOutput}`;
-				}
-
-				await saveToMemory(input, fullOutput, memory);
+				await saveToMemory(input, modelResponse.returnValues.output, memory, steps);
 			}
 			// Include intermediate steps if requested
 			const result = { ...modelResponse.returnValues };
diff --git a/packages/@n8n/nodes-langchain/utils/agent-execution/index.ts b/packages/@n8n/nodes-langchain/utils/agent-execution/index.ts
index 266766a2c41..396e6ce387b 100644
--- a/packages/@n8n/nodes-langchain/utils/agent-execution/index.ts
+++ b/packages/@n8n/nodes-langchain/utils/agent-execution/index.ts
@@ -11,7 +11,7 @@
 export { createEngineRequests } from './createEngineRequests';
 export { buildSteps } from './buildSteps';
 export { processEventStream } from './processEventStream';
-export { loadMemory, saveToMemory, saveToolResultsToMemory } from './memoryManagement';
+export { loadMemory, saveToMemory, buildToolContext } from './memoryManagement';
 export type {
 	ToolCallRequest,
 	ToolCallData,
diff --git a/packages/@n8n/nodes-langchain/utils/agent-execution/memoryManagement.ts b/packages/@n8n/nodes-langchain/utils/agent-execution/memoryManagement.ts
index b1fff19ef05..cca8eb01b80 100644
--- a/packages/@n8n/nodes-langchain/utils/agent-execution/memoryManagement.ts
+++ b/packages/@n8n/nodes-langchain/utils/agent-execution/memoryManagement.ts
@@ -5,6 +5,31 @@ import type { BaseChatMemory } from 'langchain/memory';
 
 import type { ToolCallData } from './types';
 
+/**
+ * Builds a formatted string representation of tool calls for memory storage.
+ * This creates a consistent format that can be used across both streaming and non-streaming modes.
+ *
+ * @param steps - Array of tool call data with actions and observations
+ * @returns Formatted string of tool calls separated by semicolons
+ *
+ * @example
+ * ```typescript
+ * const context = buildToolContext([{
+ *   action: { tool: 'calculator', toolInput: { expression: '2+2' }, ... },
+ *   observation: '4'
+ * }]);
+ * // Returns: "Tool: calculator, Input: {"expression":"2+2"}, Result: 4"
+ * ```
+ */
+export function buildToolContext(steps: ToolCallData[]): string {
+	return steps
+		.map(
+			(step) =>
+				`Tool: ${step.action.tool}, Input: ${JSON.stringify(step.action.toolInput)}, Result: ${step.observation}`,
+		)
+		.join('; ');
+}
+
 /**
  * Loads chat history from memory and optionally trims it to fit within token limits.
  *
@@ -64,50 +89,16 @@ export async function saveToMemory(
 	input: string,
 	output: string,
 	memory?: BaseChatMemory,
+	steps?: ToolCallData[],
 ): Promise<void> {
 	if (!output || !memory) {
 		return;
 	}
-
-	await memory.saveContext({ input }, { output });
-}
-
-/**
- * Saves tool call results to memory as formatted messages.
- *
- * This preserves the full conversation including tool interactions,
- * which is important for agents that need to see their tool usage history.
- *
- * @param memory - The memory instance to save to
- * @param input - The user input that triggered the tool calls
- * @param toolResults - Array of tool call results to save
- *
- * @example
- * ```typescript
- * await saveToolResultsToMemory(memory, 'Calculate 2+2', [{
- *   action: {
- *     tool: 'calculator',
- *     toolInput: { expression: '2+2' },
- *     log: 'Using calculator',
- *     toolCallId: 'call_123',
- *     type: 'tool_call'
- *   },
- *   observation: '4'
- * }]);
- * ```
- */
-export async function saveToolResultsToMemory(
-	input: string,
-	toolResults: ToolCallData[],
-	memory?: BaseChatMemory,
-): Promise<void> {
-	if (!memory || !toolResults.length) {
-		return;
+	let fullOutput = output;
+	if (steps && steps.length > 0) {
+		const toolContext = buildToolContext(steps);
+		fullOutput = `[Used tools: ${toolContext}] ${fullOutput}`;
 	}
 
-	// Save each tool call as a formatted message
-	for (const result of toolResults) {
-		const toolMessage = `Tool: ${result.action.tool}, Input: ${JSON.stringify(result.action.toolInput)}, Result: ${result.observation}`;
-		await memory.saveContext({ input }, { output: toolMessage });
-	}
+	await memory.saveContext({ input }, { output: fullOutput });
 }
diff --git a/packages/@n8n/nodes-langchain/utils/agent-execution/processEventStream.ts b/packages/@n8n/nodes-langchain/utils/agent-execution/processEventStream.ts
index 2aa038fdc67..2557d7fa059 100644
--- a/packages/@n8n/nodes-langchain/utils/agent-execution/processEventStream.ts
+++ b/packages/@n8n/nodes-langchain/utils/agent-execution/processEventStream.ts
@@ -1,10 +1,8 @@
 import type { StreamEvent } from '@langchain/core/dist/tracers/event_stream';
 import type { IterableReadableStream } from '@langchain/core/dist/utils/stream';
 import type { AIMessageChunk, MessageContentText } from '@langchain/core/messages';
-import type { BaseChatMemory } from 'langchain/memory';
 import type { IExecuteFunctions } from 'n8n-workflow';
 
-import { saveToMemory, saveToolResultsToMemory } from './memoryManagement';
 import type { AgentResult, ToolCallRequest } from './types';
 
 /**
@@ -17,27 +15,17 @@ import type { AgentResult, ToolCallRequest } from './types';
  * @param ctx - The execution context
  * @param eventStream - The stream of events from the agent
  * @param itemIndex - The current item index
- * @param returnIntermediateSteps - Whether to capture intermediate steps
- * @param memory - Optional memory for saving context
- * @param input - The original input prompt
  * @returns AgentResult containing output and optional tool calls/steps
  */
 export async function processEventStream(
 	ctx: IExecuteFunctions,
 	eventStream: IterableReadableStream<StreamEvent>,
 	itemIndex: number,
-	returnIntermediateSteps: boolean = false,
-	memory?: BaseChatMemory,
-	input?: string,
 ): Promise<AgentResult> {
 	const agentResult: AgentResult = {
 		output: '',
 	};
 
-	if (returnIntermediateSteps) {
-		agentResult.intermediateSteps = [];
-	}
-
 	const toolCalls: ToolCallRequest[] = [];
 
 	ctx.sendChunk('begin', itemIndex);
@@ -84,52 +72,6 @@ export async function processEventStream(
 								messageLog: [output],
 							});
 						}
-
-						// Also add to intermediate steps if needed
-						if (returnIntermediateSteps) {
-							for (const toolCall of output.tool_calls) {
-								agentResult.intermediateSteps?.push({
-									action: {
-										tool: toolCall.name,
-										toolInput: toolCall.args,
-										log:
-											output.content ||
-											`Calling ${toolCall.name} with input: ${JSON.stringify(toolCall.args)}`,
-										messageLog: [output], // Include the full LLM response
-										toolCallId: toolCall.id || 'unknown',
-										type: toolCall.type || 'tool_call',
-									},
-									observation: '',
-								});
-							}
-						}
-					}
-				}
-				break;
-			case 'on_tool_end':
-				// Capture tool execution results and match with action
-				if (returnIntermediateSteps && event.data && agentResult.intermediateSteps!.length > 0) {
-					const toolData = event.data as { output?: string };
-					// Find the matching intermediate step for this tool call
-					const matchingStep = agentResult.intermediateSteps?.find(
-						(step) => !step.observation && step.action.tool === event.name,
-					);
-					if (matchingStep) {
-						matchingStep.observation = toolData.output || '';
-
-						// Save tool result to memory
-						if (matchingStep.observation && input) {
-							await saveToolResultsToMemory(
-								input,
-								[
-									{
-										action: matchingStep.action,
-										observation: matchingStep.observation,
-									},
-								],
-								memory,
-							);
-						}
 					}
 				}
 				break;
@@ -139,11 +81,6 @@ export async function processEventStream(
 	}
 	ctx.sendChunk('end', itemIndex);
 
-	// Save conversation to memory if memory is connected
-	if (input && agentResult.output) {
-		await saveToMemory(input, agentResult.output, memory);
-	}
-
 	// Include collected tool calls in the result
 	if (toolCalls.length > 0) {
 		agentResult.toolCalls = toolCalls;
diff --git a/packages/@n8n/nodes-langchain/utils/agent-execution/test/memoryManagement.test.ts b/packages/@n8n/nodes-langchain/utils/agent-execution/test/memoryManagement.test.ts
index 1bd86dbbe72..4c26c881ccd 100644
--- a/packages/@n8n/nodes-langchain/utils/agent-execution/test/memoryManagement.test.ts
+++ b/packages/@n8n/nodes-langchain/utils/agent-execution/test/memoryManagement.test.ts
@@ -3,7 +3,7 @@ import { HumanMessage, AIMessage, SystemMessage, trimMessages } from '@langchain
 import { mock } from 'jest-mock-extended';
 import type { BaseChatMemory } from 'langchain/memory';
 
-import { loadMemory, saveToMemory, saveToolResultsToMemory } from '../memoryManagement';
+import { loadMemory, saveToMemory, buildToolContext } from '../memoryManagement';
 import type { ToolCallData } from '../types';
 
 jest.mock('@langchain/core/messages', () => ({
@@ -134,10 +134,9 @@ describe('memoryManagement', () => {
 		});
 	});
 
-	describe('saveToolResultsToMemory', () => {
-		it('should save tool results to memory', async () => {
-			const input = 'Calculate 2+2';
-			const toolResults: ToolCallData[] = [
+	describe('buildToolContext', () => {
+		it('should build tool context string from single step', () => {
+			const steps: ToolCallData[] = [
 				{
 					action: {
 						tool: 'calculator',
@@ -150,19 +149,13 @@ describe('memoryManagement', () => {
 				},
 			];
 
-			await saveToolResultsToMemory(input, toolResults, mockMemory);
+			const result = buildToolContext(steps);
 
-			expect(mockMemory.saveContext).toHaveBeenCalledWith(
-				{ input },
-				{
-					output: 'Tool: calculator, Input: {"expression":"2+2"}, Result: 4',
-				},
-			);
+			expect(result).toBe('Tool: calculator, Input: {"expression":"2+2"}, Result: 4');
 		});
 
-		it('should save multiple tool results', async () => {
-			const input = 'Get weather and time';
-			const toolResults: ToolCallData[] = [
+		it('should build tool context string from multiple steps', () => {
+			const steps: ToolCallData[] = [
 				{
 					action: {
 						tool: 'weather',
@@ -185,57 +178,21 @@ describe('memoryManagement', () => {
 				},
 			];
 
-			await saveToolResultsToMemory(input, toolResults, mockMemory);
+			const result = buildToolContext(steps);
 
-			expect(mockMemory.saveContext).toHaveBeenCalledTimes(2);
-			expect(mockMemory.saveContext).toHaveBeenNthCalledWith(
-				1,
-				{ input },
-				{
-					output: 'Tool: weather, Input: {"location":"New York"}, Result: Sunny, 72°F',
-				},
-			);
-			expect(mockMemory.saveContext).toHaveBeenNthCalledWith(
-				2,
-				{ input },
-				{
-					output: 'Tool: time, Input: {"timezone":"EST"}, Result: 14:30',
-				},
+			expect(result).toBe(
+				'Tool: weather, Input: {"location":"New York"}, Result: Sunny, 72°F; Tool: time, Input: {"timezone":"EST"}, Result: 14:30',
 			);
 		});
 
-		it('should not save when memory is not provided', async () => {
-			const input = 'Calculate 2+2';
-			const toolResults: ToolCallData[] = [
-				{
-					action: {
-						tool: 'calculator',
-						toolInput: { expression: '2+2' },
-						log: 'Using calculator',
-						toolCallId: 'call_123',
-						type: 'tool_call',
-					},
-					observation: '4',
-				},
-			];
+		it('should return empty string for empty steps array', () => {
+			const result = buildToolContext([]);
 
-			await saveToolResultsToMemory(input, toolResults, undefined);
-
-			expect(mockMemory.saveContext).not.toHaveBeenCalled();
+			expect(result).toBe('');
 		});
 
-		it('should not save when toolResults is empty', async () => {
-			const input = 'Calculate 2+2';
-			const toolResults: ToolCallData[] = [];
-
-			await saveToolResultsToMemory(input, toolResults, mockMemory);
-
-			expect(mockMemory.saveContext).not.toHaveBeenCalled();
-		});
-
-		it('should handle complex tool inputs', async () => {
-			const input = 'Search for information';
-			const toolResults: ToolCallData[] = [
+		it('should handle complex tool inputs', () => {
+			const steps: ToolCallData[] = [
 				{
 					action: {
 						tool: 'search',
@@ -252,14 +209,10 @@ describe('memoryManagement', () => {
 				},
 			];
 
-			await saveToolResultsToMemory(input, toolResults, mockMemory);
+			const result = buildToolContext(steps);
 
-			expect(mockMemory.saveContext).toHaveBeenCalledWith(
-				{ input },
-				{
-					output:
-						'Tool: search, Input: {"query":"typescript testing","filters":{"language":"en","date":"2024"},"limit":10}, Result: Found 10 results',
-				},
+			expect(result).toBe(
+				'Tool: search, Input: {"query":"typescript testing","filters":{"language":"en","date":"2024"},"limit":10}, Result: Found 10 results',
 			);
 		});
 	});