diff --git a/tests/tool_parsers/test_glm4_moe_tool_parser.py b/tests/tool_parsers/test_glm4_moe_tool_parser.py
index d9d88b844..b5b597798 100644
--- a/tests/tool_parsers/test_glm4_moe_tool_parser.py
+++ b/tests/tool_parsers/test_glm4_moe_tool_parser.py
@@ -6,6 +6,7 @@ import json
 
 import pytest
 
+from vllm.entrypoints.openai.chat_completion.protocol import ChatCompletionRequest
 from vllm.entrypoints.openai.engine.protocol import FunctionCall, ToolCall
 from vllm.tokenizers import get_tokenizer
 from vllm.tool_parsers.glm4_moe_tool_parser import (
@@ -447,3 +448,338 @@ def test_extract_tool_calls_incomplete_tool_call(glm4_moe_tool_parser):
     assert not extracted_tool_calls.tools_called
     assert extracted_tool_calls.tool_calls == []
     assert extracted_tool_calls.content == model_output
+
+
+def _reset_streaming_state(parser):
+    """Helper to reset parser streaming state."""
+    parser._buffer = ""
+    parser._in_tool_call = False
+    parser.current_tool_name_sent = False
+    parser._current_tool_name = None
+    parser._pending_key = None
+    parser._streaming_string_value = False
+    parser.prev_tool_call_arr = []
+    parser.current_tool_id = -1
+    parser.streamed_args_for_tool = []
+    parser._tool_call_ids = []
+    parser._args_started = []
+    parser._args_closed = []
+    parser._seen_keys = []
+
+
+def test_streaming_incremental_string_value(glm4_moe_tool_parser):
+    """Test incremental streaming of string argument values."""
+    _reset_streaming_state(glm4_moe_tool_parser)
+
+    # Simulate streaming a tool call character by character
+    chunks = [
+        "<tool_call>",
+        "get_weather\n",
+        "<arg_key>city</arg_key>",
+        "<arg_value>",
+        "Bei",
+        "jing",
+        "</arg_value>",
+        "</tool_call>",
+    ]
+
+    collected_fragments = []
+    for chunk in chunks:
+        result = glm4_moe_tool_parser.extract_tool_calls_streaming(
+            previous_text="",
+            current_text="",
+            delta_text=chunk,
+            previous_token_ids=[],
+            current_token_ids=[],
+            delta_token_ids=[],
+            request=None,
+        )
+        if result is not None and hasattr(result, "tool_calls") and result.tool_calls:
+            for tc in result.tool_calls:
+                if hasattr(tc, "function") and tc.function:
+                    func = tc.function
+                    if isinstance(func, dict):
+                        if func.get("arguments"):
+                            collected_fragments.append(func["arguments"])
+                        if func.get("name"):
+                            collected_fragments.append(f"name:{func['name']}")
+                    else:
+                        if func.arguments:
+                            collected_fragments.append(func.arguments)
+                        if func.name:
+                            collected_fragments.append(f"name:{func.name}")
+
+    # Verify we got incremental streaming of the argument value
+    assert len(collected_fragments) > 0
+    # The fragments should include the tool name and argument pieces
+    combined = "".join(collected_fragments)
+    assert "get_weather" in combined or "name:get_weather" in combined
+
+
+def test_streaming_empty_tool_call(glm4_moe_tool_parser):
+    """Test that empty tool calls don't cause infinite loops."""
+    _reset_streaming_state(glm4_moe_tool_parser)
+
+    # Empty tool call should be handled gracefully
+    result = glm4_moe_tool_parser.extract_tool_calls_streaming(
+        previous_text="",
+        current_text="",
+        delta_text="<tool_call></tool_call>",
+        previous_token_ids=[],
+        current_token_ids=[],
+        delta_token_ids=[],
+        request=None,
+    )
+
+    # Should not hang and should return something (None or content)
+    # The key is that this completes without hanging
+    assert result is None or hasattr(result, "content") or hasattr(result, "tool_calls")
+    # State should be properly reset
+    assert glm4_moe_tool_parser.current_tool_id == -1
+
+
+def test_streaming_prev_tool_call_arr_finalization(glm4_moe_tool_parser):
+    """Test that prev_tool_call_arr contains parsed dict after tool call."""
+    _reset_streaming_state(glm4_moe_tool_parser)
+
+    # Stream a complete tool call
+    chunks = [
+        "<tool_call>get_weather\n",
+        "<arg_key>city</arg_key>",
+        "<arg_value>Beijing</arg_value>",
+        "</tool_call>",
+    ]
+
+    for chunk in chunks:
+        glm4_moe_tool_parser.extract_tool_calls_streaming(
+            previous_text="",
+            current_text="",
+            delta_text=chunk,
+            previous_token_ids=[],
+            current_token_ids=[],
+            delta_token_ids=[],
+            request=None,
+        )
+
+    # After the tool call completes, prev_tool_call_arr should have parsed dict
+    assert len(glm4_moe_tool_parser.prev_tool_call_arr) == 1
+    tool_entry = glm4_moe_tool_parser.prev_tool_call_arr[0]
+    assert tool_entry.get("name") == "get_weather"
+    # arguments should be a dict, not a string
+    args = tool_entry.get("arguments")
+    assert isinstance(args, dict), f"Expected dict, got {type(args)}"
+    assert args.get("city") == "Beijing"
+
+
+def test_streaming_multiple_tool_calls_sequential(glm4_moe_tool_parser):
+    """Test streaming multiple sequential tool calls."""
+    _reset_streaming_state(glm4_moe_tool_parser)
+
+    # Stream two tool calls
+    chunks = [
+        "<tool_call>get_weather\n",
+        "<arg_key>city</arg_key>",
+        "<arg_value>Beijing</arg_value>",
+        "</tool_call>",
+        "<tool_call>get_weather\n",
+        "<arg_key>city</arg_key>",
+        "<arg_value>Shanghai</arg_value>",
+        "</tool_call>",
+    ]
+
+    for chunk in chunks:
+        glm4_moe_tool_parser.extract_tool_calls_streaming(
+            previous_text="",
+            current_text="",
+            delta_text=chunk,
+            previous_token_ids=[],
+            current_token_ids=[],
+            delta_token_ids=[],
+            request=None,
+        )
+
+    # Should have two tool calls in prev_tool_call_arr
+    assert len(glm4_moe_tool_parser.prev_tool_call_arr) == 2
+    assert glm4_moe_tool_parser.prev_tool_call_arr[0]["arguments"]["city"] == "Beijing"
+    assert glm4_moe_tool_parser.prev_tool_call_arr[1]["arguments"]["city"] == "Shanghai"
+
+
+def test_streaming_json_escape_in_string(glm4_moe_tool_parser):
+    """Test that special characters in string values are properly escaped."""
+    _reset_streaming_state(glm4_moe_tool_parser)
+
+    # String with characters that need JSON escaping
+    chunks = [
+        "<tool_call>send_message\n",
+        "<arg_key>message</arg_key>",
+        '<arg_value>Hello "world"\nNew line</arg_value>',
+        "</tool_call>",
+    ]
+
+    for chunk in chunks:
+        glm4_moe_tool_parser.extract_tool_calls_streaming(
+            previous_text="",
+            current_text="",
+            delta_text=chunk,
+            previous_token_ids=[],
+            current_token_ids=[],
+            delta_token_ids=[],
+            request=None,
+        )
+
+    # The streamed_args_for_tool should contain valid JSON
+    assert len(glm4_moe_tool_parser.streamed_args_for_tool) == 1
+    args_json = glm4_moe_tool_parser.streamed_args_for_tool[0]
+    # Should be parseable as JSON
+    parsed = json.loads(args_json)
+    assert "message" in parsed
+    # The value should preserve the special characters
+    assert '"' in parsed["message"] or "world" in parsed["message"]
+
+
+def test_streaming_long_content_incremental(glm4_moe_tool_parser):
+    """Test incremental streaming of long content (Issue #32829).
+
+    This is the core fix: for long string values like code (4000+ chars),
+    the parser should stream incrementally rather than buffering until
+    complete. This test verifies we get many fragments, not just 1-3.
+    """
+    _reset_streaming_state(glm4_moe_tool_parser)
+
+    # Bubble sort example from Issue #32829 - realistic long content
+    bubble_sort_code = '''#!/usr/bin/env python3
+# -*- coding: utf-8 -*-
+"""
+Bubble Sort Implementation
+"""
+
+def bubble_sort(arr):
+    n = len(arr)
+    for i in range(n):
+        swapped = False
+        for j in range(0, n - i - 1):
+            if arr[j] > arr[j + 1]:
+                arr[j], arr[j + 1] = arr[j + 1], arr[j]
+                swapped = True
+        if not swapped:
+            break
+    return arr
+
+if __name__ == "__main__":
+    test_arr = [64, 34, 25, 12, 22, 11, 90]
+    print(f"Original: {test_arr}")
+    sorted_arr = bubble_sort(test_arr.copy())
+    print(f"Sorted: {sorted_arr}")'''
+
+    # Create a request with tool schema to enable string type detection
+    # This is required for incremental streaming of string values
+    request = ChatCompletionRequest(
+        model=MODEL,
+        messages=[],
+        tools=[
+            {
+                "type": "function",
+                "function": {
+                    "name": "write_to_file",
+                    "parameters": {
+                        "type": "object",
+                        "properties": {
+                            "file_path": {"type": "string"},
+                            "content": {"type": "string"},
+                        },
+                    },
+                },
+            }
+        ],
+    )
+
+    # Simulate token-based streaming (special tags as single tokens)
+    chunks = [
+        "<tool_call>",
+        "write_to_file\n",
+        "<arg_key>file_path</arg_key>",
+        "<arg_value>/tmp/bubble_sort.py</arg_value>",
+        "<arg_key>content</arg_key>",
+        "<arg_value>",
+    ]
+    # Add content line by line (realistic token streaming)
+    for line in bubble_sort_code.split("\n"):
+        chunks.append(line + "\n")
+    chunks.append("</arg_value>")
+    chunks.append("</tool_call>")
+
+    # Count argument fragments
+    fragment_count = 0
+    for chunk in chunks:
+        result = glm4_moe_tool_parser.extract_tool_calls_streaming(
+            previous_text="",
+            current_text="",
+            delta_text=chunk,
+            previous_token_ids=[],
+            current_token_ids=[],
+            delta_token_ids=[],
+            request=request,
+        )
+        if result is not None and hasattr(result, "tool_calls") and result.tool_calls:
+            for tc in result.tool_calls:
+                if hasattr(tc, "function") and tc.function:
+                    func = tc.function
+                    args = (
+                        func.get("arguments")
+                        if isinstance(func, dict)
+                        else getattr(func, "arguments", None)
+                    )
+                    if args:
+                        fragment_count += 1
+
+    # For true incremental streaming, we expect many fragments (10+)
+    # Old buffered implementation would give only 1-3 fragments
+    assert fragment_count >= 10, (
+        f"Expected >=10 fragments for incremental streaming, got {fragment_count}"
+    )
+
+    # Verify final result is valid JSON
+    assert len(glm4_moe_tool_parser.streamed_args_for_tool) == 1
+    args_json = glm4_moe_tool_parser.streamed_args_for_tool[0]
+    parsed = json.loads(args_json)
+    assert parsed["file_path"] == "/tmp/bubble_sort.py"
+    assert "def bubble_sort" in parsed["content"]
+
+
+def test_extract_tool_calls_numeric_deserialization(glm4_moe_tool_parser):
+    """Test that numeric arguments are deserialized as numbers, not strings."""
+    model_output = """<tool_call>calculate
+<arg_key>operation</arg_key>
+<arg_value>add</arg_value>
+<arg_key>a</arg_key>
+<arg_value>42</arg_value>
+<arg_key>b</arg_key>
+<arg_value>3.14</arg_value>
+<arg_key>enabled</arg_key>
+<arg_value>true</arg_value>
+</tool_call>"""
+
+    extracted_tool_calls = glm4_moe_tool_parser.extract_tool_calls(
+        model_output, request=None
+    )  # type: ignore[arg-type]
+
+    assert extracted_tool_calls.tools_called
+    assert len(extracted_tool_calls.tool_calls) == 1
+
+    args = json.loads(extracted_tool_calls.tool_calls[0].function.arguments)
+
+    # String should remain string
+    assert args["operation"] == "add"
+    assert isinstance(args["operation"], str)
+
+    # Integer should be deserialized as int
+    assert args["a"] == 42
+    assert isinstance(args["a"], int)
+
+    # Float should be deserialized as float
+    assert args["b"] == 3.14
+    assert isinstance(args["b"], float)
+
+    # Boolean should be deserialized as bool
+    assert args["enabled"] is True
+    assert isinstance(args["enabled"], bool)
diff --git a/vllm/tool_parsers/glm4_moe_tool_parser.py b/vllm/tool_parsers/glm4_moe_tool_parser.py
index 11eb79244..a07cdbff9 100644
--- a/vllm/tool_parsers/glm4_moe_tool_parser.py
+++ b/vllm/tool_parsers/glm4_moe_tool_parser.py
@@ -1,5 +1,15 @@
 # SPDX-License-Identifier: Apache-2.0
 # SPDX-FileCopyrightText: Copyright contributors to the vLLM project
+"""
+GLM-4 Tool Call Parser with incremental string streaming support.
+
+This parser fixes the streaming issue reported in Issue #32829 where long string
+parameters (e.g., file content with 4000+ characters of code) are buffered until
+complete, causing multi-second delays before the user sees any content.
+
+The fix streams string values incrementally as they arrive, providing a true
+streaming experience for long content.
+"""
 
 import ast
 import json
@@ -8,6 +18,7 @@ from typing import Any
 
 import regex as re
 
+from vllm.entrypoints.chat_utils import make_tool_call_id
 from vllm.entrypoints.openai.chat_completion.protocol import (
     ChatCompletionRequest,
     ChatCompletionToolsParam,
@@ -30,14 +41,27 @@ logger = init_logger(__name__)
 
 
 class Glm4MoeModelToolParser(ToolParser):
+    """Tool parser for GLM-4 models with incremental string streaming.
+
+    This parser emits tool-call deltas incrementally as arguments arrive.
+    For string-type parameters, content is streamed character-by-character
+    rather than waiting for the complete </arg_value> tag.
+    """
+
     def __init__(self, tokenizer: TokenizerLike):
         super().__init__(tokenizer)
-        self.current_tool_name_sent = False
-        self.prev_tool_call_arr: list[dict] = []
-        self.current_tool_id = -1
+        # Stateful streaming fields
+        self.current_tool_name_sent: bool = False
+        self.prev_tool_call_arr: list[dict[str, Any]] = []
+        self.current_tool_id: int = -1
         self.streamed_args_for_tool: list[str] = []
-        self.tool_call_start_token = "<tool_call>"
-        self.tool_call_end_token = "</tool_call>"
+
+        self.tool_call_start_token: str = "<tool_call>"
+        self.tool_call_end_token: str = "</tool_call>"
+        self.arg_key_start: str = "<arg_key>"
+        self.arg_key_end: str = "</arg_key>"
+        self.arg_val_start: str = "<arg_value>"
+        self.arg_val_end: str = "</arg_value>"
 
         self.tool_calls_start_token = self.tool_call_start_token
 
@@ -48,6 +72,7 @@ class Glm4MoeModelToolParser(ToolParser):
         self.func_arg_regex = re.compile(
             r"<arg_key>(.*?)</arg_key>\s*<arg_value>(.*?)</arg_value>", re.DOTALL
         )
+
         if not self.model_tokenizer:
             raise ValueError(
                 "The model tokenizer must be passed to the ToolParser "
@@ -56,13 +81,78 @@ class Glm4MoeModelToolParser(ToolParser):
 
         self.tool_call_start_token_id = self.vocab.get(self.tool_call_start_token)
         self.tool_call_end_token_id = self.vocab.get(self.tool_call_end_token)
-        self._buffer = ""
+        self._buffer: str = ""
+
+        # Streaming state for incremental tool-call streaming
+        self._in_tool_call: bool = False
+        self._current_tool_name: str | None = None
+        self._pending_key: str | None = None
+        self._streaming_string_value: bool = False
+        self._tool_call_ids: list[str] = []
+        self._args_started: list[bool] = []
+        self._args_closed: list[bool] = []
+        self._seen_keys: list[set[str]] = []
+
+    @staticmethod
+    def _deserialize(value: str) -> Any:
+        try:
+            return json.loads(value)
+        except json.JSONDecodeError:
+            pass
+
+        try:
+            return ast.literal_eval(value)
+        except (ValueError, SyntaxError):
+            pass
+
+        return value
+
+    @staticmethod
+    def _json_escape_string_content(s: str) -> str:
+        """JSON-escape string content for incremental streaming.
+
+        This escapes the content that goes INSIDE a JSON string (between quotes),
+        not including the surrounding quotes themselves.
+        """
+        if not s:
+            return ""
+        return json.dumps(s, ensure_ascii=False)[1:-1]
+
+    @staticmethod
+    def _is_string_type(
+        tool_name: str,
+        arg_name: str,
+        tools: list[ChatCompletionToolsParam] | None,
+    ) -> bool:
+        if tools is None:
+            return False
+        for tool in tools:
+            if tool.function.name != tool_name:
+                continue
+            if tool.function.parameters is None:
+                return False
+            arg_type = (
+                tool.function.parameters.get("properties", {})
+                .get(arg_name, {})
+                .get("type", None)
+            )
+            return arg_type == "string"
+        logger.debug("No tool named '%s'.", tool_name)
+        return False
+
+    @staticmethod
+    def _tools_enabled(request: ChatCompletionRequest) -> bool:
+        """Return whether tool parsing should be applied for this request."""
+        try:
+            tools = getattr(request, "tools", None)
+            tool_choice = getattr(request, "tool_choice", None)
+            return bool(tools) and tool_choice != "none"
+        except Exception:
+            logger.exception("Failed to determine if tools are enabled.")
+            return False
 
     def adjust_request(self, request: ChatCompletionRequest) -> ChatCompletionRequest:
-        """
-        Adjust request parameters to ensure tool call tokens are not skipped
-        during tokenizer decoding.
-        """
+        """Adjust request parameters for tool call token handling."""
         request = super().adjust_request(request)
         if request.tools and request.tool_choice != "none":
             # Ensure tool call tokens (<tool_call>, </tool_call>) are not skipped
@@ -77,42 +167,10 @@ class Glm4MoeModelToolParser(ToolParser):
         model_output: str,
         request: ChatCompletionRequest,
     ) -> ExtractedToolCallInformation:
-        def _is_string_type(
-            tool_name: str,
-            arg_name: str,
-            tools: list[ChatCompletionToolsParam] | None,
-        ) -> bool:
-            if tools is None:
-                return False
-            for tool in tools:
-                if tool.function.name == tool_name:
-                    if tool.function.parameters is None:
-                        return False
-                    arg_type = (
-                        tool.function.parameters.get("properties", {})
-                        .get(arg_name, {})
-                        .get("type", None)
-                    )
-                    return arg_type == "string"
-            logger.debug("No tool named '%s'.", tool_name)
-            return False
-
-        def _deserialize(value: str) -> Any:
-            try:
-                return json.loads(value)
-            except Exception:
-                pass
-
-            try:
-                return ast.literal_eval(value)
-            except Exception:
-                pass
-            return value
-
         matched_tool_calls = self.func_call_regex.findall(model_output)
         logger.debug("model_output: %s", model_output)
         try:
-            tool_calls = []
+            tool_calls: list[ToolCall] = []
             for match in matched_tool_calls:
                 tc_detail = self.func_detail_regex.search(match)
                 if not tc_detail:
@@ -121,15 +179,15 @@ class Glm4MoeModelToolParser(ToolParser):
                         match,
                     )
                     continue
-                tc_name = tc_detail.group(1)
+                tc_name = tc_detail.group(1).strip()
                 tc_args = tc_detail.group(2)
                 pairs = self.func_arg_regex.findall(tc_args) if tc_args else []
-                arg_dct = {}
+                arg_dct: dict[str, Any] = {}
                 for key, value in pairs:
                     arg_key = key.strip()
                     arg_val = value.strip()
-                    if not _is_string_type(tc_name, arg_key, request.tools):
-                        arg_val = _deserialize(arg_val)
+                    if not self._is_string_type(tc_name, arg_key, request.tools):
+                        arg_val = self._deserialize(arg_val)
                     logger.debug("arg_key = %s, arg_val = %s", arg_key, arg_val)
                     arg_dct[arg_key] = arg_val
                 tool_calls.append(
@@ -166,58 +224,293 @@ class Glm4MoeModelToolParser(ToolParser):
         delta_token_ids: Sequence[int],
         request: ChatCompletionRequest,
     ) -> DeltaMessage | None:
+        if not self._tools_enabled(request):
+            return DeltaMessage(content=delta_text) if delta_text else None
+
         self._buffer += delta_text
-        cur_text = self._buffer
-        start_idx = cur_text.find(self.tool_call_start_token)
-        if start_idx == -1:
-            self._buffer = ""
-            if self.current_tool_id > 0:
-                cur_text = ""
-            return DeltaMessage(content=cur_text)
-        logger.debug("cur_text = %s", cur_text)
-        end_idx = cur_text.find(self.tool_call_end_token)
-        if end_idx != -1:
-            if self.current_tool_id == -1:
-                self.current_tool_id = 0
-                self.prev_tool_call_arr = []
-                self.streamed_args_for_tool = []
-            while len(self.prev_tool_call_arr) <= self.current_tool_id:
-                self.prev_tool_call_arr.append({})
-            while len(self.streamed_args_for_tool) <= self.current_tool_id:
-                self.streamed_args_for_tool.append("")
 
-            extracted_tool_calls = self.extract_tool_calls(
-                cur_text[: end_idx + len(self.tool_call_end_token)], request
-            )
+        while True:
+            if not self._in_tool_call:
+                start_idx = self._buffer.find(self.tool_call_start_token)
+                if start_idx == -1:
+                    # Check for partial start token at end of buffer
+                    for i in range(1, len(self.tool_call_start_token)):
+                        if self._buffer.endswith(self.tool_call_start_token[:i]):
+                            out = self._buffer[:-i]
+                            self._buffer = self._buffer[-i:]
+                            return DeltaMessage(content=out) if out else None
+                    out = self._buffer
+                    self._buffer = ""
+                    return DeltaMessage(content=out) if out else None
 
-            if len(extracted_tool_calls.tool_calls) == 0:
-                logger.warning("Failed to extract any tool calls.")
-                return None
-            tool_call = extracted_tool_calls.tool_calls[0]
-            self.prev_tool_call_arr[self.current_tool_id] = {
-                "name": tool_call.function.name,
-                "arguments": json.loads(tool_call.function.arguments),
-            }
-            self.streamed_args_for_tool[self.current_tool_id] = (
-                tool_call.function.arguments
-            )
-            delta = DeltaMessage(
-                content=extracted_tool_calls.content,
-                tool_calls=[
-                    DeltaToolCall(
-                        index=self.current_tool_id,
-                        id=tool_call.id,
-                        type=tool_call.type,
-                        function=DeltaFunctionCall(
-                            name=tool_call.function.name,
-                            arguments=tool_call.function.arguments,
-                        ),
+                if start_idx > 0:
+                    out = self._buffer[:start_idx]
+                    self._buffer = self._buffer[start_idx:]
+                    return DeltaMessage(content=out) if out else None
+
+                self._buffer = self._buffer[len(self.tool_call_start_token) :]
+                self._begin_tool_call()
+                continue
+
+            # Parse tool name first
+            if not self.current_tool_name_sent:
+                nl = self._buffer.find("\n")
+                ak = self._buffer.find(self.arg_key_start)
+                end = self._buffer.find(self.tool_call_end_token)
+                candidates = [i for i in [nl, ak, end] if i != -1]
+                if not candidates:
+                    return None
+                cut = min(candidates)
+                tool_name = self._buffer[:cut].strip()
+                if tool_name == "" and cut == end:
+                    # Handle empty tool call like `<tool_call></tool_call>`.
+                    # Consume the tokens and reset state to avoid infinite loop.
+                    self._buffer = self._buffer[end + len(self.tool_call_end_token) :]
+                    self._finish_tool_call()
+                    self._revert_last_tool_call_state()
+                    continue
+
+                if cut == nl:
+                    self._buffer = self._buffer[nl + 1 :]
+                else:
+                    self._buffer = self._buffer[cut:]
+
+                self._current_tool_name = tool_name
+                self.current_tool_name_sent = True
+                return self._emit_tool_name_delta(tool_name)
+
+            assert self._current_tool_name is not None
+
+            # Handle incremental string value streaming
+            if self._streaming_string_value:
+                val_end = self._buffer.find(self.arg_val_end)
+                if val_end != -1:
+                    raw_content = self._buffer[:val_end]
+                    self._buffer = self._buffer[val_end + len(self.arg_val_end) :]
+                    self._streaming_string_value = False
+                    self._pending_key = None
+
+                    escaped = self._json_escape_string_content(raw_content)
+                    frag = escaped + '"'
+                    self.streamed_args_for_tool[self.current_tool_id] += frag
+                    return self._emit_tool_args_delta(frag)
+                else:
+                    # Check for partial </arg_value> at end
+                    safe_len = len(self._buffer)
+                    for i in range(1, len(self.arg_val_end)):
+                        if self._buffer.endswith(self.arg_val_end[:i]):
+                            safe_len = len(self._buffer) - i
+                            break
+
+                    if safe_len > 0:
+                        to_emit = self._buffer[:safe_len]
+                        self._buffer = self._buffer[safe_len:]
+                        escaped = self._json_escape_string_content(to_emit)
+                        if escaped:
+                            self.streamed_args_for_tool[self.current_tool_id] += escaped
+                            return self._emit_tool_args_delta(escaped)
+                    return None
+
+            # If we have a pending key, parse its value
+            if self._pending_key is not None:
+                val_pos = self._buffer.find(self.arg_val_start)
+                if val_pos == -1:
+                    return None
+                if val_pos > 0:
+                    self._buffer = self._buffer[val_pos:]
+
+                key = (self._pending_key or "").strip()
+
+                is_string = self._is_string_type(
+                    self._current_tool_name, key, request.tools
+                )
+
+                if is_string:
+                    # String type: stream incrementally
+                    self._buffer = self._buffer[len(self.arg_val_start) :]
+
+                    if key in self._seen_keys[self.current_tool_id]:
+                        self._pending_key = None
+                        continue
+
+                    self._seen_keys[self.current_tool_id].add(key)
+                    key_json = json.dumps(key, ensure_ascii=False)
+
+                    if not self._args_started[self.current_tool_id]:
+                        frag = "{" + key_json + ':"'
+                        self._args_started[self.current_tool_id] = True
+                    else:
+                        frag = "," + key_json + ':"'
+
+                    self.streamed_args_for_tool[self.current_tool_id] += frag
+                    self._streaming_string_value = True
+                    return self._emit_tool_args_delta(frag)
+                else:
+                    # Non-string type: wait for complete value
+                    val_end = self._buffer.find(self.arg_val_end)
+                    if val_end == -1:
+                        return None
+
+                    raw_val = self._buffer[len(self.arg_val_start) : val_end].strip()
+                    self._buffer = self._buffer[val_end + len(self.arg_val_end) :]
+                    self._pending_key = None
+
+                    frag = self._append_arg_fragment(
+                        key=key,
+                        raw_val=raw_val,
                     )
-                ],
-            )
-            self.current_tool_id += 1
-            self._buffer = cur_text[end_idx + len(self.tool_call_end_token) :]
-            return delta
+                    if frag:
+                        return self._emit_tool_args_delta(frag)
+                    continue
 
-        self._buffer = cur_text[start_idx:]
-        return DeltaMessage(content=cur_text[:start_idx])
+            # Parse next arg or close
+            end_pos = self._buffer.find(self.tool_call_end_token)
+            key_pos = self._buffer.find(self.arg_key_start)
+            if end_pos != -1 and (key_pos == -1 or end_pos < key_pos):
+                self._buffer = self._buffer[end_pos + len(self.tool_call_end_token) :]
+                frag = self._close_args_if_needed()
+                # Finalize prev_tool_call_arr with complete parsed arguments
+                if self._current_tool_name:
+                    try:
+                        full_args_str = self.streamed_args_for_tool[
+                            self.current_tool_id
+                        ]
+                        args_dict = json.loads(full_args_str)
+                        self.prev_tool_call_arr[self.current_tool_id] = {
+                            "name": self._current_tool_name,
+                            "arguments": args_dict,
+                        }
+                    except (json.JSONDecodeError, IndexError) as e:
+                        logger.warning(
+                            "Failed to finalize tool call state for tool %d: %s",
+                            self.current_tool_id,
+                            e,
+                        )
+                self._finish_tool_call()
+                return self._emit_tool_args_delta(frag) if frag else None
+
+            if key_pos == -1:
+                return None
+            if key_pos > 0:
+                self._buffer = self._buffer[key_pos:]
+            key_end = self._buffer.find(self.arg_key_end)
+            if key_end == -1:
+                return None
+            key = self._buffer[len(self.arg_key_start) : key_end]
+            self._buffer = self._buffer[key_end + len(self.arg_key_end) :]
+            self._pending_key = key
+            continue
+
+    def _ensure_tool_state(self) -> None:
+        while len(self._tool_call_ids) <= self.current_tool_id:
+            self._tool_call_ids.append(
+                make_tool_call_id(id_type="random", func_name=None, idx=None)
+            )
+        while len(self.streamed_args_for_tool) <= self.current_tool_id:
+            self.streamed_args_for_tool.append("")
+        while len(self.prev_tool_call_arr) <= self.current_tool_id:
+            self.prev_tool_call_arr.append({})
+        while len(self._args_started) <= self.current_tool_id:
+            self._args_started.append(False)
+        while len(self._args_closed) <= self.current_tool_id:
+            self._args_closed.append(False)
+        while len(self._seen_keys) <= self.current_tool_id:
+            self._seen_keys.append(set())
+
+    def _begin_tool_call(self) -> None:
+        if self.current_tool_id == -1:
+            self.current_tool_id = 0
+        else:
+            self.current_tool_id += 1
+        self._ensure_tool_state()
+        self.current_tool_name_sent = False
+        self._current_tool_name = None
+        self._pending_key = None
+        self._streaming_string_value = False
+        self._in_tool_call = True
+
+    def _finish_tool_call(self) -> None:
+        self._in_tool_call = False
+        self._current_tool_name = None
+        self._pending_key = None
+        self._streaming_string_value = False
+
+    def _revert_last_tool_call_state(self) -> None:
+        """Revert the state allocation for the last tool call."""
+        if self.current_tool_id < 0:
+            return
+        self._tool_call_ids.pop()
+        self.streamed_args_for_tool.pop()
+        self.prev_tool_call_arr.pop()
+        self._args_started.pop()
+        self._args_closed.pop()
+        self._seen_keys.pop()
+        self.current_tool_id -= 1
+
+    def _emit_tool_name_delta(self, tool_name: str) -> DeltaMessage:
+        return DeltaMessage(
+            tool_calls=[
+                DeltaToolCall(
+                    index=self.current_tool_id,
+                    id=self._tool_call_ids[self.current_tool_id],
+                    type="function",
+                    function=DeltaFunctionCall(
+                        name=tool_name,
+                        arguments="",
+                    ).model_dump(exclude_none=True),
+                )
+            ]
+        )
+
+    def _emit_tool_args_delta(self, fragment: str) -> DeltaMessage:
+        return DeltaMessage(
+            tool_calls=[
+                DeltaToolCall(
+                    index=self.current_tool_id,
+                    function=DeltaFunctionCall(arguments=fragment).model_dump(
+                        exclude_none=True
+                    ),
+                )
+            ]
+        )
+
+    def _append_arg_fragment(
+        self,
+        *,
+        key: str,
+        raw_val: str,
+    ) -> str | None:
+        key = key.strip()
+        if not key:
+            return None
+        if key in self._seen_keys[self.current_tool_id]:
+            return None
+
+        # This function is only called for non-string types (already checked
+        # by _is_string_type in the caller), so we always deserialize.
+        val_obj: Any = self._deserialize(raw_val)
+
+        key_json = json.dumps(key, ensure_ascii=False)
+        val_json = json.dumps(val_obj, ensure_ascii=False)
+
+        if not self._args_started[self.current_tool_id]:
+            fragment = "{" + key_json + ":" + val_json
+            self._args_started[self.current_tool_id] = True
+        else:
+            fragment = "," + key_json + ":" + val_json
+
+        self._seen_keys[self.current_tool_id].add(key)
+        self.streamed_args_for_tool[self.current_tool_id] += fragment
+        return fragment
+
+    def _close_args_if_needed(self) -> str | None:
+        if self._args_closed[self.current_tool_id]:
+            return None
+        self._args_closed[self.current_tool_id] = True
+        if not self._args_started[self.current_tool_id]:
+            fragment = "{}"
+            self.streamed_args_for_tool[self.current_tool_id] = fragment
+        else:
+            fragment = "}"
+            self.streamed_args_for_tool[self.current_tool_id] += fragment
+        return fragment