diff --git a/client/src/components/app.riot b/client/src/components/app.riot
index a2d344b..8d94548 100644
--- a/client/src/components/app.riot
+++ b/client/src/components/app.riot
@@ -26,6 +26,7 @@
             ai-typing={state.aiTyping}
             ai-tool-status={state.aiToolStatus}
             typing-users={state.typingUsers}
+            streaming-message={state.streamingMessage}
             cb-send={sendMessage}
             cb-invite={() => update({ showInviteModal: true })}
             cb-delete-room={() => update({ showDeleteModal: true })}
@@ -142,6 +143,7 @@
   <script>
     import { api, saveAuth, getUser, clearAuth, isAuthenticated } from '../services/api.js'
     import { ws } from '../services/websocket.js'
+    import { StreamBuffer } from '../services/stream-buffer.js'
 
     export default {
       state: {
@@ -157,6 +159,7 @@
         showClearModal: false,
         aiTyping: false,
         aiToolStatus: null,
+        streamingMessage: null,
         typingUsers: [],
       },
 
@@ -178,15 +181,76 @@
 
         ws.on('new_message', (msg) => {
           if (msg.message.room_id === this.state.activeRoomId) {
+            // If we were streaming this message, cancel the buffer and remove placeholder
+            const isStreamReplacement = this.state.streamingMessage?.id === msg.message.id
+            if (isStreamReplacement && this.streamBuffer) {
+              this.streamBuffer.cancel()
+              this.streamBuffer = null
+              this._streamMsgId = null
+              this._streamContent = ''
+            }
             this.update({
               messages: [...this.state.messages, msg.message],
               aiTyping: false,
               aiToolStatus: null,
+              streamingMessage: isStreamReplacement ? null : this.state.streamingMessage,
             })
             this.scrollToBottom()
           }
         })
 
+        ws.on('ai_stream_chunk', (msg) => {
+          if (msg.room_id === this.state.activeRoomId) {
+            if (!this.streamBuffer || this._streamMsgId !== msg.message_id) {
+              // First chunk for a new message — create buffer + streaming message
+              if (this.streamBuffer) this.streamBuffer.cancel()
+              this._streamMsgId = msg.message_id
+              this._streamContent = ''
+
+              this.streamBuffer = new StreamBuffer(
+                // onText: drip chars into the displayed message
+                (text) => {
+                  this._streamContent += text
+                  this.update({
+                    streamingMessage: {
+                      id: this._streamMsgId,
+                      room_id: msg.room_id,
+                      sender_id: 'ai-assistant',
+                      sender_name: 'AI Assistant',
+                      content: this._streamContent,
+                      mentions: [],
+                      is_ai: true,
+                      streaming: true,
+                    },
+                  })
+                  this.scrollToBottom()
+                },
+                // onDone: buffer fully drained after stream ended
+                () => {
+                  if (this.state.streamingMessage?.id === this._streamMsgId) {
+                    this.update({
+                      streamingMessage: { ...this.state.streamingMessage, streaming: false },
+                    })
+                  }
+                }
+              )
+
+              this.update({ aiTyping: false })
+            }
+            // Push every chunk into the buffer (it drains smoothly via rAF)
+            this.streamBuffer.push(msg.delta)
+          }
+        })
+
+        ws.on('ai_stream_end', (msg) => {
+          if (msg.room_id === this.state.activeRoomId) {
+            // Tell buffer to flush remaining text, then signal done
+            if (this.streamBuffer && this._streamMsgId === msg.message_id) {
+              this.streamBuffer.finish()
+            }
+          }
+        })
+
         ws.on('ai_typing', (msg) => {
           if (msg.room_id === this.state.activeRoomId) {
             this.update({ aiTyping: true })
@@ -259,6 +323,13 @@
 
       async selectRoom(roomId) {
         try {
+          // Cancel any active stream buffer when switching rooms
+          if (this.streamBuffer) {
+            this.streamBuffer.cancel()
+            this.streamBuffer = null
+            this._streamMsgId = null
+            this._streamContent = ''
+          }
           const [room, messages] = await Promise.all([
             api.getRoom(roomId),
             api.getMessages(roomId),
@@ -269,6 +340,7 @@
             messages,
             aiTyping: false,
             aiToolStatus: null,
+            streamingMessage: null,
             typingUsers: [],
           })
           ws.joinRoom(roomId)
diff --git a/client/src/components/chat-room.riot b/client/src/components/chat-room.riot
index 3e7665f..0f78277 100644
--- a/client/src/components/chat-room.riot
+++ b/client/src/components/chat-room.riot
@@ -40,7 +40,17 @@
         />
       </div>
 
-      <div if={props.aiTyping} class="typing-indicator ai-typing">
+      <!-- Streaming AI message (live content) -->
+      <div if={props.streamingMessage} key="streaming">
+        <message-bubble
+          message={props.streamingMessage}
+          is-own={false}
+          is-streaming={true}
+        />
+      </div>
+
+      <!-- AI typing indicator (only when NOT streaming content) -->
+      <div if={props.aiTyping && !props.streamingMessage} class="typing-indicator ai-typing">
         <div class="typing-avatar ai-avatar">AI</div>
         <template if={props.aiToolStatus}>
           <span class="tool-status-text">
diff --git a/client/src/components/message-bubble.riot b/client/src/components/message-bubble.riot
index 0ea16c2..3df89e1 100644
--- a/client/src/components/message-bubble.riot
+++ b/client/src/components/message-bubble.riot
@@ -25,7 +25,8 @@
           </div>
         </div>
       </div>
-      <div class="message-content markdown-content"></div>
+      <div if={props.isStreaming} class="message-content streaming-content">{props.message?.content}<span class="streaming-cursor">▌</span></div>
+      <div if={!props.isStreaming} class="message-content markdown-content"></div>
       <div if={props.message?.is_ai && props.message?.ai_meta} class="ai-stats-bar">
         <button class="ai-stat-btn" onclick={copyFullMessage} title="Copy response">
           <svg width="13" height="13" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2">
@@ -280,6 +281,22 @@
       color: var(--accent);
       font-weight: 500;
     }
+
+    .streaming-content {
+      white-space: pre-wrap;
+      word-wrap: break-word;
+    }
+
+    .streaming-cursor {
+      animation: cursor-blink 0.8s step-end infinite;
+      color: var(--accent);
+      font-weight: 300;
+    }
+
+    @keyframes cursor-blink {
+      0%, 100% { opacity: 1; }
+      50% { opacity: 0; }
+    }
   </style>
 
   <script>
@@ -295,7 +312,8 @@
       },
 
       renderContent() {
-        const el = this.$('.message-content')
+        if (this.props.isStreaming) return // Don't markdown-render while streaming
+        const el = this.$('.message-content.markdown-content')
         if (el && this.props.message?.content) {
           el.innerHTML = renderMarkdown(this.props.message.content)
           // Inject copy buttons into code blocks
diff --git a/client/src/services/stream-buffer.js b/client/src/services/stream-buffer.js
new file mode 100644
index 0000000..f2632e4
--- /dev/null
+++ b/client/src/services/stream-buffer.js
@@ -0,0 +1,92 @@
+/**
+ * StreamBuffer — smooth token-by-token rendering for LLM streams.
+ *
+ * Network delivers tokens in bursts (5-10 at once, then a pause).
+ * This buffer queues incoming text and drains it at a steady rate
+ * via requestAnimationFrame, creating the smooth "typing" effect
+ * seen in ChatGPT / Claude.ai.
+ */
+export class StreamBuffer {
+  /**
+   * @param {(text: string) => void} onText  — called each frame with chars to append
+   * @param {() => void} onDone              — called when buffer fully drained after finish()
+   */
+  constructor(onText, onDone) {
+    this.queue = ''
+    this.onText = onText
+    this.onDone = onDone
+    this.rafId = null
+    this.finished = false       // stream has ended, flush remaining
+    this.baseSpeed = 3          // chars per frame at 60fps (~180 chars/sec)
+  }
+
+  /** Push new text from a stream chunk into the buffer. */
+  push(text) {
+    this.queue += text
+    if (!this.rafId) {
+      this.startDrain()
+    }
+  }
+
+  /** Signal that the stream is complete — flush remaining text quickly. */
+  finish() {
+    this.finished = true
+    if (!this.rafId && this.queue.length > 0) {
+      this.startDrain()
+    }
+  }
+
+  /** Cancel the buffer (e.g. room switch). */
+  cancel() {
+    if (this.rafId) {
+      cancelAnimationFrame(this.rafId)
+      this.rafId = null
+    }
+    this.queue = ''
+    this.finished = false
+  }
+
+  /** @private */
+  startDrain() {
+    this.rafId = requestAnimationFrame(() => this.drain())
+  }
+
+  /** @private */
+  drain() {
+    if (this.queue.length === 0) {
+      this.rafId = null
+      if (this.finished) {
+        this.onDone()
+      }
+      return
+    }
+
+    // Adaptive speed:
+    //  - Base: ~3 chars/frame (smooth typing feel)
+    //  - If buffer > 50 chars: speed up to avoid falling behind
+    //  - If stream ended: flush fast (10+ chars/frame)
+    let chars = this.baseSpeed
+
+    if (this.queue.length > 200) {
+      // Very behind — catch up aggressively
+      chars = Math.ceil(this.queue.length / 10)
+    } else if (this.queue.length > 50) {
+      // Moderately behind — speed up proportionally
+      chars = Math.ceil(this.queue.length / 15)
+    }
+
+    if (this.finished) {
+      // Stream done, flush remaining smoothly but quickly
+      chars = Math.max(chars, Math.ceil(this.queue.length / 8))
+    }
+
+    // Don't break in the middle of a multi-byte character or word
+    // (slice is safe for most LLM output which is ASCII/simple unicode)
+    const chunk = this.queue.slice(0, chars)
+    this.queue = this.queue.slice(chars)
+
+    this.onText(chunk)
+
+    this.rafId = requestAnimationFrame(() => this.drain())
+  }
+}
diff --git a/server/src/handlers/ws.rs b/server/src/handlers/ws.rs
index 0d9a8e0..3fafe60 100644
--- a/server/src/handlers/ws.rs
+++ b/server/src/handlers/ws.rs
@@ -52,11 +52,23 @@ async fn handle_socket(socket: WebSocket, state: Arc<AppState>, user_id: String,
 
     // Task: forward broadcast events to this client
     let mut send_task = tokio::spawn(async move {
-        while let Ok(event) = broadcast_rx.recv().await {
-            let rooms = rooms_clone.lock().await;
-            if rooms.contains(&event.room_id) {
-                let msg = serde_json::to_string(&event.message).unwrap();
-                if ws_tx.send(Message::Text(msg.into())).await.is_err() {
+        loop {
+            match broadcast_rx.recv().await {
+                Ok(event) => {
+                    let rooms = rooms_clone.lock().await;
+                    if rooms.contains(&event.room_id) {
+                        let msg = serde_json::to_string(&event.message).unwrap();
+                        if ws_tx.send(Message::Text(msg.into())).await.is_err() {
+                            break;
+                        }
+                    }
+                }
+                Err(tokio::sync::broadcast::error::RecvError::Lagged(n)) => {
+                    tracing::warn!("WS subscriber lagged, skipped {} messages", n);
+                    // Continue receiving — don't drop the connection
+                    continue;
+                }
+                Err(tokio::sync::broadcast::error::RecvError::Closed) => {
                     break;
                 }
             }
@@ -224,7 +236,10 @@ async fn handle_send_message(
     // Build tools for AI
     let tools = openrouter::build_tools();
 
-    // Call OpenRouter with tool loop
+    // Pre-generate AI message ID so we can reference it in stream chunks
+    let ai_msg_id = Uuid::new_v4().to_string();
+
+    // Call OpenRouter with tool loop — uses streaming for all rounds
     let mut total_prompt_tokens: u32 = 0;
     let mut total_completion_tokens: u32 = 0;
     let mut total_response_ms: u64 = 0;
@@ -233,8 +248,8 @@ async fn handle_send_message(
     let mut had_error = false;
     let mut collected_tool_results: Vec<crate::models::ToolResult> = vec![];
 
-    for round in 0..MAX_TOOL_ROUNDS {
-        let result = openrouter::chat_completion(
+    'tool_loop: for round in 0..MAX_TOOL_ROUNDS {
+        let mut stream_rx = openrouter::chat_completion_stream(
             chat_history.clone(),
             &model_id,
             &state.openrouter_key,
@@ -242,82 +257,92 @@ async fn handle_send_message(
         )
         .await;
 
-        match result {
-            Ok(openrouter::ChatCompletionResult::Response(text, stats)) => {
-                // Final text response — done!
-                total_prompt_tokens += stats.prompt_tokens;
-                total_completion_tokens += stats.completion_tokens;
-                total_response_ms += stats.response_ms;
-                final_model = stats.model;
-                ai_response = text;
-                break;
-            }
-            Ok(openrouter::ChatCompletionResult::ToolCalls(assistant_msg, stats)) => {
-                total_prompt_tokens += stats.prompt_tokens;
-                total_completion_tokens += stats.completion_tokens;
-                total_response_ms += stats.response_ms;
-                final_model = stats.model.clone();
-
-                tracing::info!(
-                    "AI requesting tool calls (round {}): {:?}",
-                    round + 1,
-                    assistant_msg.tool_calls.as_ref().map(|tc| tc.iter().map(|t| &t.function.name).collect::<Vec<_>>())
-                );
-
-                // Add the assistant's tool-call message to history
-                let tool_calls = assistant_msg.tool_calls.clone().unwrap_or_default();
-                chat_history.push(assistant_msg);
-
-                // Execute each tool call and add results
-                for tool_call in &tool_calls {
-                    // Extract tool input for display purposes
-                    let tool_input = extract_tool_input(&tool_call.function.name, &tool_call.function.arguments);
-
-                    // Broadcast real-time tool usage event
+        while let Some(event) = stream_rx.recv().await {
+            match event {
+                openrouter::StreamEvent::Delta(text) => {
+                    // Broadcast each content chunk to clients
                     let _ = state.tx.send(BroadcastEvent {
                         room_id: room_id.to_string(),
-                        message: WsServerMessage::AiToolUsage {
+                        message: WsServerMessage::AiStreamChunk {
                             room_id: room_id.to_string(),
-                            tool_name: tool_call.function.name.clone(),
-                            status: "calling".to_string(),
+                            message_id: ai_msg_id.clone(),
+                            delta: text.clone(),
                         },
                     });
-
-                    let tool_result = execute_tool(
-                        &tool_call.function.name,
-                        &tool_call.function.arguments,
-                        &state.brave_api_key,
-                    )
-                    .await;
+                    ai_response.push_str(&text);
+                }
+                openrouter::StreamEvent::ToolCalls(assistant_msg, stats) => {
+                    total_prompt_tokens += stats.prompt_tokens;
+                    total_completion_tokens += stats.completion_tokens;
+                    total_response_ms += stats.response_ms;
+                    final_model = stats.model.clone();
 
                     tracing::info!(
-                        "Tool {} result: {} chars",
-                        tool_call.function.name,
-                        tool_result.len()
+                        "AI requesting tool calls (round {}): {:?}",
+                        round + 1,
+                        assistant_msg.tool_calls.as_ref().map(|tc| tc.iter().map(|t| &t.function.name).collect::<Vec<_>>())
                     );
 
-                    // Collect tool result for inclusion in final message
-                    collected_tool_results.push(crate::models::ToolResult {
-                        tool: tool_call.function.name.clone(),
-                        input: tool_input,
-                        result: tool_result.clone(),
-                    });
+                    // Add the assistant's tool-call message to history
+                    let tool_calls = assistant_msg.tool_calls.clone().unwrap_or_default();
+                    chat_history.push(assistant_msg);
 
-                    // Add tool result to history
-                    chat_history.push(openrouter::ChatMessage {
-                        role: "tool".into(),
-                        content: Some(tool_result),
-                        tool_calls: None,
-                        tool_call_id: Some(tool_call.id.clone()),
-                    });
+                    // Execute each tool call and add results
+                    for tool_call in &tool_calls {
+                        let tool_input = extract_tool_input(&tool_call.function.name, &tool_call.function.arguments);
+
+                        // Broadcast real-time tool usage event
+                        let _ = state.tx.send(BroadcastEvent {
+                            room_id: room_id.to_string(),
+                            message: WsServerMessage::AiToolUsage {
+                                room_id: room_id.to_string(),
+                                tool_name: tool_call.function.name.clone(),
+                                status: "calling".to_string(),
+                            },
+                        });
+
+                        let tool_result = execute_tool(
+                            &tool_call.function.name,
+                            &tool_call.function.arguments,
+                            &state.brave_api_key,
+                        )
+                        .await;
+
+                        tracing::info!(
+                            "Tool {} result: {} chars",
+                            tool_call.function.name,
+                            tool_result.len()
+                        );
+
+                        collected_tool_results.push(crate::models::ToolResult {
+                            tool: tool_call.function.name.clone(),
+                            input: tool_input,
+                            result: tool_result.clone(),
+                        });
+
+                        chat_history.push(openrouter::ChatMessage {
+                            role: "tool".into(),
+                            content: Some(tool_result),
+                            tool_calls: None,
+                            tool_call_id: Some(tool_call.id.clone()),
+                        });
+                    }
+                    // Continue to next round (tool loop)
+                    continue 'tool_loop;
+                }
+                openrouter::StreamEvent::Done(stats) => {
+                    total_prompt_tokens += stats.prompt_tokens;
+                    total_completion_tokens += stats.completion_tokens;
+                    total_response_ms += stats.response_ms;
+                    final_model = stats.model;
+                    break 'tool_loop;
+                }
+                openrouter::StreamEvent::Error(e) => {
+                    tracing::error!("OpenRouter stream error (round {}): {}", round + 1, e);
+                    ai_response = format!("*Sorry, I encountered an error: {}*", e);
+                    had_error = true;
+                    break 'tool_loop;
                 }
-                // Loop continues — call OpenRouter again with tool results
-            }
-            Err(e) => {
-                tracing::error!("OpenRouter error (round {}): {}", round + 1, e);
-                ai_response = format!("*Sorry, I encountered an error: {}*", e);
-                had_error = true;
-                break;
             }
         }
     }
@@ -327,6 +352,15 @@ async fn handle_send_message(
         ai_response = "*I used several tools but couldn't formulate a final response. Please try again.*".to_string();
     }
 
+    // Signal stream end so client can finalize rendering
+    let _ = state.tx.send(BroadcastEvent {
+        room_id: room_id.to_string(),
+        message: WsServerMessage::AiStreamEnd {
+            room_id: room_id.to_string(),
+            message_id: ai_msg_id.clone(),
+        },
+    });
+
     let ai_meta = if !had_error {
         Some(crate::models::AiMeta {
             model: final_model,
@@ -345,7 +379,6 @@ async fn handle_send_message(
     };
 
     // Store AI response
-    let ai_msg_id = Uuid::new_v4().to_string();
     let ai_now = chrono::Utc::now().to_rfc3339();
 
     // Serialize ai_meta for database storage
@@ -364,7 +397,7 @@ async fn handle_send_message(
     .execute(&state.db)
     .await;
 
-    // Broadcast AI message
+    // Broadcast final AI message (includes full content + ai_meta)
     let ai_payload = MessagePayload {
         id: ai_msg_id,
         room_id: room_id.to_string(),
diff --git a/server/src/main.rs b/server/src/main.rs
index 9a96ca9..23d0c07 100644
--- a/server/src/main.rs
+++ b/server/src/main.rs
@@ -72,7 +72,7 @@ async fn main() {
 
     tracing::info!("Database initialized");
 
-    let (tx, _rx) = broadcast::channel::<models::BroadcastEvent>(256);
+    let (tx, _rx) = broadcast::channel::<models::BroadcastEvent>(4096);
 
     let state = Arc::new(AppState {
         db,
diff --git a/server/src/models/mod.rs b/server/src/models/mod.rs
index ae80d3b..120d873 100644
--- a/server/src/models/mod.rs
+++ b/server/src/models/mod.rs
@@ -164,6 +164,17 @@ pub enum WsServerMessage {
         tool_name: String,
         status: String,
     },
+    #[serde(rename = "ai_stream_chunk")]
+    AiStreamChunk {
+        room_id: String,
+        message_id: String,
+        delta: String,
+    },
+    #[serde(rename = "ai_stream_end")]
+    AiStreamEnd {
+        room_id: String,
+        message_id: String,
+    },
 }
 
 #[derive(Debug, Clone, Serialize, Deserialize)]
diff --git a/server/src/services/openrouter.rs b/server/src/services/openrouter.rs
index 1dc6f2d..dc6bce4 100644
--- a/server/src/services/openrouter.rs
+++ b/server/src/services/openrouter.rs
@@ -1,3 +1,4 @@
+use futures::StreamExt;
 use serde::{Deserialize, Serialize};
 
 const OPENROUTER_API_URL: &str = "https://openrouter.ai/api/v1/chat/completions";
@@ -11,6 +12,8 @@ struct ChatRequest {
     max_tokens: Option<u32>,
     #[serde(skip_serializing_if = "Option::is_none")]
     tools: Option<Vec<Tool>>,
+    #[serde(skip_serializing_if = "Option::is_none")]
+    stream: Option<bool>,
 }
 
 #[derive(Debug, Serialize, Deserialize, Clone)]
@@ -55,29 +58,62 @@ pub struct ToolCallFunction {
 // ── Response types ──
 
 #[derive(Debug, Deserialize)]
-struct ChatResponse {
-    choices: Vec<Choice>,
+struct Usage {
+    prompt_tokens: Option<u32>,
+    completion_tokens: Option<u32>,
+    total_tokens: Option<u32>,
+}
+
+// ── Streaming response types ──
+
+#[derive(Debug, Deserialize)]
+struct StreamChunk {
+    choices: Option<Vec<StreamChoice>>,
     model: Option<String>,
     usage: Option<Usage>,
 }
 
 #[derive(Debug, Deserialize)]
-struct Choice {
-    message: ChoiceMessage,
+#[allow(dead_code)]
+struct StreamChoice {
+    delta: Option<StreamDelta>,
+    finish_reason: Option<String>,
 }
 
 #[derive(Debug, Deserialize)]
-struct ChoiceMessage {
+struct StreamDelta {
     content: Option<String>,
     #[serde(default)]
-    tool_calls: Option<Vec<ToolCall>>,
+    tool_calls: Option<Vec<StreamToolCall>>,
 }
 
 #[derive(Debug, Deserialize)]
-struct Usage {
-    prompt_tokens: Option<u32>,
-    completion_tokens: Option<u32>,
-    total_tokens: Option<u32>,
+#[allow(dead_code)]
+struct StreamToolCall {
+    index: Option<usize>,
+    id: Option<String>,
+    #[serde(default)]
+    r#type: Option<String>,
+    function: Option<StreamToolCallFunction>,
+}
+
+#[derive(Debug, Deserialize)]
+struct StreamToolCallFunction {
+    name: Option<String>,
+    arguments: Option<String>,
+}
+
+/// Events emitted during a streaming completion.
+#[derive(Debug)]
+pub enum StreamEvent {
+    /// A chunk of content text.
+    Delta(String),
+    /// AI wants to call tools (streaming accumulated the full tool_calls).
+    ToolCalls(ChatMessage, CompletionStats),
+    /// Stream finished with final stats.
+    Done(CompletionStats),
+    /// An error occurred.
+    Error(String),
 }
 
 /// Stats returned alongside an AI completion.
@@ -90,14 +126,6 @@ pub struct CompletionStats {
     pub response_ms: u64,
 }
 
-/// Result from a chat completion — either a final text response or tool calls.
-pub enum ChatCompletionResult {
-    /// AI responded with text content.
-    Response(String, CompletionStats),
-    /// AI wants to call tools. Contains the assistant message (with tool_calls) and stats.
-    ToolCalls(ChatMessage, CompletionStats),
-}
-
 /// Build the tool definitions for brave_search and web_fetch.
 pub fn build_tools() -> Vec<Tool> {
     vec![
@@ -142,85 +170,198 @@ pub fn build_tools() -> Vec<Tool> {
     ]
 }
 
-/// Send a chat completion request to OpenRouter.
-/// Returns either a text response or tool call requests.
-pub async fn chat_completion(
+/// Send a streaming chat completion request to OpenRouter.
+/// Sends events via the returned mpsc receiver:
+///   - `StreamEvent::Delta(text)` for each content chunk
+///   - `StreamEvent::ToolCalls(msg, stats)` if the AI wants to call tools
+///   - `StreamEvent::Done(stats)` when the stream finishes with a text response
+///   - `StreamEvent::Error(msg)` on error
+pub async fn chat_completion_stream(
     history: Vec<ChatMessage>,
     model_id: &str,
     api_key: &str,
     tools: Option<Vec<Tool>>,
-) -> Result<ChatCompletionResult, String> {
-    let client = reqwest::Client::new();
+) -> tokio::sync::mpsc::Receiver<StreamEvent> {
+    let (tx, rx) = tokio::sync::mpsc::channel::<StreamEvent>(256);
 
-    let request_body = ChatRequest {
-        model: model_id.to_string(),
-        messages: history,
-        max_tokens: Some(2048),
-        tools,
-    };
+    let model_id = model_id.to_string();
+    let api_key = api_key.to_string();
 
-    let start = std::time::Instant::now();
+    tokio::spawn(async move {
+        let client = reqwest::Client::new();
 
-    let response = client
-        .post(OPENROUTER_API_URL)
-        .header("Authorization", format!("Bearer {}", api_key))
-        .header("Content-Type", "application/json")
-        .header("HTTP-Referer", "http://localhost:3001")
-        .header("X-Title", "GroupChat")
-        .json(&request_body)
-        .send()
-        .await
-        .map_err(|e| format!("OpenRouter request failed: {}", e))?;
+        let request_body = ChatRequest {
+            model: model_id.clone(),
+            messages: history,
+            max_tokens: Some(2048),
+            tools,
+            stream: Some(true),
+        };
 
-    let elapsed_ms = start.elapsed().as_millis() as u64;
+        let start = std::time::Instant::now();
 
-    if !response.status().is_success() {
-        let status = response.status();
-        let body = response.text().await.unwrap_or_default();
-        return Err(format!("OpenRouter error {}: {}", status, body));
-    }
+        let response = match client
+            .post(OPENROUTER_API_URL)
+            .header("Authorization", format!("Bearer {}", api_key))
+            .header("Content-Type", "application/json")
+            .header("HTTP-Referer", "http://localhost:3001")
+            .header("X-Title", "GroupChat")
+            .json(&request_body)
+            .send()
+            .await
+        {
+            Ok(r) => r,
+            Err(e) => {
+                let _ = tx.send(StreamEvent::Error(format!("Request failed: {}", e))).await;
+                return;
+            }
+        };
 
-    let chat_response: ChatResponse = response
-        .json()
-        .await
-        .map_err(|e| format!("Failed to parse OpenRouter response: {}", e))?;
+        if !response.status().is_success() {
+            let status = response.status();
+            let body = response.text().await.unwrap_or_default();
+            let _ = tx.send(StreamEvent::Error(format!("OpenRouter error {}: {}", status, body))).await;
+            return;
+        }
 
-    let choice = chat_response
-        .choices
-        .first()
-        .ok_or_else(|| "No response from OpenRouter".to_string())?;
+        // Read SSE stream
+        let mut byte_stream = response.bytes_stream();
+        let mut buffer = String::new();
+        let mut full_content = String::new();
+        let mut model_name = model_id.clone();
 
-    let usage = chat_response.usage.unwrap_or(Usage {
-        prompt_tokens: None,
-        completion_tokens: None,
-        total_tokens: None,
-    });
+        // Accumulators for streamed tool calls
+        let mut tool_call_accum: Vec<ToolCall> = Vec::new();
+        let mut has_tool_calls = false;
 
-    let stats = CompletionStats {
-        model: chat_response.model.unwrap_or_else(|| model_id.to_string()),
-        prompt_tokens: usage.prompt_tokens.unwrap_or(0),
-        completion_tokens: usage.completion_tokens.unwrap_or(0),
-        total_tokens: usage.total_tokens.unwrap_or(0),
-        response_ms: elapsed_ms,
-    };
+        // Usage from the final chunk (some providers include it)
+        let mut final_usage: Option<Usage> = None;
 
-    // Check if the AI wants to call tools
-    if let Some(tool_calls) = &choice.message.tool_calls {
-        if !tool_calls.is_empty() {
-            // Return the assistant message with tool calls so it can be added to history
+        while let Some(chunk_result) = byte_stream.next().await {
+            let bytes = match chunk_result {
+                Ok(b) => b,
+                Err(e) => {
+                    let _ = tx.send(StreamEvent::Error(format!("Stream error: {}", e))).await;
+                    return;
+                }
+            };
+
+            buffer.push_str(&String::from_utf8_lossy(&bytes));
+
+            // Process complete SSE lines
+            while let Some(line_end) = buffer.find('\n') {
+                let line = buffer[..line_end].trim().to_string();
+                buffer = buffer[line_end + 1..].to_string();
+
+                if line.is_empty() || line.starts_with(':') {
+                    continue;
+                }
+
+                if let Some(data) = line.strip_prefix("data: ") {
+                    let data = data.trim();
+
+                    if data == "[DONE]" {
+                        // Stream finished
+                        continue;
+                    }
+
+                    let chunk: StreamChunk = match serde_json::from_str(data) {
+                        Ok(c) => c,
+                        Err(_) => continue,
+                    };
+
+                    if let Some(m) = &chunk.model {
+                        model_name = m.clone();
+                    }
+
+                    if let Some(u) = chunk.usage {
+                        final_usage = Some(u);
+                    }
+
+                    if let Some(choices) = &chunk.choices {
+                        if let Some(choice) = choices.first() {
+                            if let Some(delta) = &choice.delta {
+                                // Handle content delta
+                                if let Some(content) = &delta.content {
+                                    if !content.is_empty() {
+                                        full_content.push_str(content);
+                                        let _ = tx.send(StreamEvent::Delta(content.clone())).await;
+                                    }
+                                }
+
+                                // Handle tool call deltas (accumulate incrementally)
+                                if let Some(tcs) = &delta.tool_calls {
+                                    has_tool_calls = true;
+                                    for tc in tcs {
+                                        let idx = tc.index.unwrap_or(0);
+
+                                        // Ensure we have enough slots
+                                        while tool_call_accum.len() <= idx {
+                                            tool_call_accum.push(ToolCall {
+                                                id: String::new(),
+                                                r#type: "function".to_string(),
+                                                function: ToolCallFunction {
+                                                    name: String::new(),
+                                                    arguments: String::new(),
+                                                },
+                                            });
+                                        }
+
+                                        if let Some(id) = &tc.id {
+                                            tool_call_accum[idx].id = id.clone();
+                                        }
+                                        if let Some(func) = &tc.function {
+                                            if let Some(name) = &func.name {
+                                                tool_call_accum[idx].function.name.push_str(name);
+                                            }
+                                            if let Some(args) = &func.arguments {
+                                                tool_call_accum[idx].function.arguments.push_str(args);
+                                            }
+                                        }
+                                    }
+                                }
+                            }
+                        }
+                    }
+                }
+            }
+        }
+
+        let elapsed_ms = start.elapsed().as_millis() as u64;
+
+        let (prompt_tokens, completion_tokens, total_tokens) = match &final_usage {
+            Some(u) => (
+                u.prompt_tokens.unwrap_or(0),
+                u.completion_tokens.unwrap_or(0),
+                u.total_tokens.unwrap_or(0),
+            ),
+            None => (0, 0, 0),
+        };
+
+        let stats = CompletionStats {
+            model: model_name,
+            prompt_tokens,
+            completion_tokens,
+            total_tokens,
+            response_ms: elapsed_ms,
+        };
+
+        if has_tool_calls && !tool_call_accum.is_empty() {
+            // AI requested tool calls
             let assistant_msg = ChatMessage {
                 role: "assistant".into(),
-                content: choice.message.content.clone(),
-                tool_calls: Some(tool_calls.clone()),
+                content: if full_content.is_empty() { None } else { Some(full_content) },
+                tool_calls: Some(tool_call_accum),
                 tool_call_id: None,
             };
-            return Ok(ChatCompletionResult::ToolCalls(assistant_msg, stats));
+            let _ = tx.send(StreamEvent::ToolCalls(assistant_msg, stats)).await;
+        } else {
+            // Normal text response completed
+            let _ = tx.send(StreamEvent::Done(stats)).await;
         }
-    }
+    });
 
-    // Regular text response
-    let content = choice.message.content.clone().unwrap_or_default();
-    Ok(ChatCompletionResult::Response(content, stats))
+    rx
 }
 
 /// Build the message history for OpenRouter from stored messages.