diff --git a/src/crewai/events/utils/console_formatter.py b/src/crewai/events/utils/console_formatter.py
index 6278e92a2..159a6c845 100644
--- a/src/crewai/events/utils/console_formatter.py
+++ b/src/crewai/events/utils/console_formatter.py
@@ -1,25 +1,25 @@
-from typing import Any, Dict, Optional
+from typing import Any
 
 from rich.console import Console
+from rich.live import Live
 from rich.panel import Panel
+from rich.syntax import Syntax
 from rich.text import Text
 from rich.tree import Tree
-from rich.live import Live
-from rich.syntax import Syntax
 
 
 class ConsoleFormatter:
-    current_crew_tree: Optional[Tree] = None
-    current_task_branch: Optional[Tree] = None
-    current_agent_branch: Optional[Tree] = None
-    current_tool_branch: Optional[Tree] = None
-    current_flow_tree: Optional[Tree] = None
-    current_method_branch: Optional[Tree] = None
-    current_lite_agent_branch: Optional[Tree] = None
-    tool_usage_counts: Dict[str, int] = {}
-    current_reasoning_branch: Optional[Tree] = None  # Track reasoning status
+    current_crew_tree: Tree | None = None
+    current_task_branch: Tree | None = None
+    current_agent_branch: Tree | None = None
+    current_tool_branch: Tree | None = None
+    current_flow_tree: Tree | None = None
+    current_method_branch: Tree | None = None
+    current_lite_agent_branch: Tree | None = None
+    tool_usage_counts: dict[str, int] = {}
+    current_reasoning_branch: Tree | None = None  # Track reasoning status
     _live_paused: bool = False
-    current_llm_tool_tree: Optional[Tree] = None
+    current_llm_tool_tree: Tree | None = None
 
     def __init__(self, verbose: bool = False):
         self.console = Console(width=None)
@@ -29,7 +29,7 @@ class ConsoleFormatter:
         # instance so the previous render is replaced instead of writing a new one.
         # Once any non-Tree renderable is printed we stop the Live session so the
         # final Tree persists on the terminal.
-        self._live: Optional[Live] = None
+        self._live: Live | None = None
 
     def create_panel(self, content: Text, title: str, style: str = "blue") -> Panel:
         """Create a standardized panel with consistent styling."""
@@ -45,7 +45,7 @@ class ConsoleFormatter:
         title: str,
         name: str,
         status_style: str = "blue",
-        tool_args: Dict[str, Any] | str = "",
+        tool_args: dict[str, Any] | str = "",
         **fields,
     ) -> Text:
         """Create standardized status content with consistent formatting."""
@@ -70,7 +70,7 @@ class ConsoleFormatter:
         prefix: str,
         name: str,
         style: str = "blue",
-        status: Optional[str] = None,
+        status: str | None = None,
     ) -> None:
         """Update tree label with consistent formatting."""
         label = Text()
@@ -156,7 +156,7 @@ class ConsoleFormatter:
 
     def update_crew_tree(
         self,
-        tree: Optional[Tree],
+        tree: Tree | None,
         crew_name: str,
         source_id: str,
         status: str = "completed",
@@ -196,7 +196,7 @@ class ConsoleFormatter:
 
         self.print_panel(content, title, style)
 
-    def create_crew_tree(self, crew_name: str, source_id: str) -> Optional[Tree]:
+    def create_crew_tree(self, crew_name: str, source_id: str) -> Tree | None:
         """Create and initialize a new crew tree with initial status."""
         if not self.verbose:
             return None
@@ -220,8 +220,8 @@ class ConsoleFormatter:
         return tree
 
     def create_task_branch(
-        self, crew_tree: Optional[Tree], task_id: str, task_name: Optional[str] = None
-    ) -> Optional[Tree]:
+        self, crew_tree: Tree | None, task_id: str, task_name: str | None = None
+    ) -> Tree | None:
         """Create and initialize a task branch."""
         if not self.verbose:
             return None
@@ -255,11 +255,11 @@ class ConsoleFormatter:
 
     def update_task_status(
         self,
-        crew_tree: Optional[Tree],
+        crew_tree: Tree | None,
         task_id: str,
         agent_role: str,
         status: str = "completed",
-        task_name: Optional[str] = None,
+        task_name: str | None = None,
     ) -> None:
         """Update task status in the tree."""
         if not self.verbose or crew_tree is None:
@@ -306,8 +306,8 @@ class ConsoleFormatter:
         self.print_panel(content, panel_title, style)
 
     def create_agent_branch(
-        self, task_branch: Optional[Tree], agent_role: str, crew_tree: Optional[Tree]
-    ) -> Optional[Tree]:
+        self, task_branch: Tree | None, agent_role: str, crew_tree: Tree | None
+    ) -> Tree | None:
         """Create and initialize an agent branch."""
         if not self.verbose or not task_branch or not crew_tree:
             return None
@@ -325,9 +325,9 @@ class ConsoleFormatter:
 
     def update_agent_status(
         self,
-        agent_branch: Optional[Tree],
+        agent_branch: Tree | None,
         agent_role: str,
-        crew_tree: Optional[Tree],
+        crew_tree: Tree | None,
         status: str = "completed",
     ) -> None:
         """Update agent status in the tree."""
@@ -336,7 +336,7 @@ class ConsoleFormatter:
         # altering the tree. Keeping it a no-op avoids duplicate status lines.
         return
 
-    def create_flow_tree(self, flow_name: str, flow_id: str) -> Optional[Tree]:
+    def create_flow_tree(self, flow_name: str, flow_id: str) -> Tree | None:
         """Create and initialize a flow tree."""
         content = self.create_status_content(
             "Starting Flow Execution", flow_name, "blue", ID=flow_id
@@ -356,7 +356,7 @@ class ConsoleFormatter:
 
         return flow_tree
 
-    def start_flow(self, flow_name: str, flow_id: str) -> Optional[Tree]:
+    def start_flow(self, flow_name: str, flow_id: str) -> Tree | None:
         """Initialize a flow execution tree."""
         flow_tree = Tree("")
         flow_label = Text()
@@ -376,7 +376,7 @@ class ConsoleFormatter:
 
     def update_flow_status(
         self,
-        flow_tree: Optional[Tree],
+        flow_tree: Tree | None,
         flow_name: str,
         flow_id: str,
         status: str = "completed",
@@ -423,11 +423,11 @@ class ConsoleFormatter:
 
     def update_method_status(
         self,
-        method_branch: Optional[Tree],
-        flow_tree: Optional[Tree],
+        method_branch: Tree | None,
+        flow_tree: Tree | None,
         method_name: str,
         status: str = "running",
-    ) -> Optional[Tree]:
+    ) -> Tree | None:
         """Update method status in the flow tree."""
         if not flow_tree:
             return None
@@ -480,7 +480,7 @@ class ConsoleFormatter:
     def handle_llm_tool_usage_started(
         self,
         tool_name: str,
-        tool_args: Dict[str, Any] | str,
+        tool_args: dict[str, Any] | str,
     ):
         # Create status content for the tool usage
         content = self.create_status_content(
@@ -520,11 +520,11 @@ class ConsoleFormatter:
 
     def handle_tool_usage_started(
         self,
-        agent_branch: Optional[Tree],
+        agent_branch: Tree | None,
         tool_name: str,
-        crew_tree: Optional[Tree],
-        tool_args: Dict[str, Any] | str = "",
-    ) -> Optional[Tree]:
+        crew_tree: Tree | None,
+        tool_args: dict[str, Any] | str = "",
+    ) -> Tree | None:
         """Handle tool usage started event."""
         if not self.verbose:
             return None
@@ -569,9 +569,9 @@ class ConsoleFormatter:
 
     def handle_tool_usage_finished(
         self,
-        tool_branch: Optional[Tree],
+        tool_branch: Tree | None,
         tool_name: str,
-        crew_tree: Optional[Tree],
+        crew_tree: Tree | None,
     ) -> None:
         """Handle tool usage finished event."""
         if not self.verbose or tool_branch is None:
@@ -600,10 +600,10 @@ class ConsoleFormatter:
 
     def handle_tool_usage_error(
         self,
-        tool_branch: Optional[Tree],
+        tool_branch: Tree | None,
         tool_name: str,
         error: str,
-        crew_tree: Optional[Tree],
+        crew_tree: Tree | None,
     ) -> None:
         """Handle tool usage error event."""
         if not self.verbose:
@@ -631,9 +631,9 @@ class ConsoleFormatter:
 
     def handle_llm_call_started(
         self,
-        agent_branch: Optional[Tree],
-        crew_tree: Optional[Tree],
-    ) -> Optional[Tree]:
+        agent_branch: Tree | None,
+        crew_tree: Tree | None,
+    ) -> Tree | None:
         """Handle LLM call started event."""
         if not self.verbose:
             return None
@@ -672,9 +672,9 @@ class ConsoleFormatter:
 
     def handle_llm_call_completed(
         self,
-        tool_branch: Optional[Tree],
-        agent_branch: Optional[Tree],
-        crew_tree: Optional[Tree],
+        tool_branch: Tree | None,
+        agent_branch: Tree | None,
+        crew_tree: Tree | None,
     ) -> None:
         """Handle LLM call completed event."""
         if not self.verbose:
@@ -736,7 +736,7 @@ class ConsoleFormatter:
                 self.print()
 
     def handle_llm_call_failed(
-        self, tool_branch: Optional[Tree], error: str, crew_tree: Optional[Tree]
+        self, tool_branch: Tree | None, error: str, crew_tree: Tree | None
     ) -> None:
         """Handle LLM call failed event."""
         if not self.verbose:
@@ -789,7 +789,7 @@ class ConsoleFormatter:
 
     def handle_crew_test_started(
         self, crew_name: str, source_id: str, n_iterations: int
-    ) -> Optional[Tree]:
+    ) -> Tree | None:
         """Handle crew test started event."""
         if not self.verbose:
             return None
@@ -823,7 +823,7 @@ class ConsoleFormatter:
         return test_tree
 
     def handle_crew_test_completed(
-        self, flow_tree: Optional[Tree], crew_name: str
+        self, flow_tree: Tree | None, crew_name: str
     ) -> None:
         """Handle crew test completed event."""
         if not self.verbose:
@@ -913,7 +913,7 @@ class ConsoleFormatter:
         self.print_panel(failure_content, "Test Failure", "red")
         self.print()
 
-    def create_lite_agent_branch(self, lite_agent_role: str) -> Optional[Tree]:
+    def create_lite_agent_branch(self, lite_agent_role: str) -> Tree | None:
         """Create and initialize a lite agent branch."""
         if not self.verbose:
             return None
@@ -935,10 +935,10 @@ class ConsoleFormatter:
 
     def update_lite_agent_status(
         self,
-        lite_agent_branch: Optional[Tree],
+        lite_agent_branch: Tree | None,
         lite_agent_role: str,
         status: str = "completed",
-        **fields: Dict[str, Any],
+        **fields: dict[str, Any],
     ) -> None:
         """Update lite agent status in the tree."""
         if not self.verbose or lite_agent_branch is None:
@@ -981,7 +981,7 @@ class ConsoleFormatter:
         lite_agent_role: str,
         status: str = "started",
         error: Any = None,
-        **fields: Dict[str, Any],
+        **fields: dict[str, Any],
     ) -> None:
         """Handle lite agent execution events with consistent formatting."""
         if not self.verbose:
@@ -1006,9 +1006,9 @@ class ConsoleFormatter:
 
     def handle_knowledge_retrieval_started(
         self,
-        agent_branch: Optional[Tree],
-        crew_tree: Optional[Tree],
-    ) -> Optional[Tree]:
+        agent_branch: Tree | None,
+        crew_tree: Tree | None,
+    ) -> Tree | None:
         """Handle knowledge retrieval started event."""
         if not self.verbose:
             return None
@@ -1034,13 +1034,13 @@ class ConsoleFormatter:
 
     def handle_knowledge_retrieval_completed(
         self,
-        agent_branch: Optional[Tree],
-        crew_tree: Optional[Tree],
+        agent_branch: Tree | None,
+        crew_tree: Tree | None,
         retrieved_knowledge: Any,
     ) -> None:
         """Handle knowledge retrieval completed event."""
         if not self.verbose:
-            return None
+            return
 
         branch_to_use = self.current_lite_agent_branch or agent_branch
         tree_to_use = branch_to_use or crew_tree
@@ -1062,7 +1062,7 @@ class ConsoleFormatter:
                 )
                 self.print(knowledge_panel)
                 self.print()
-            return None
+            return
 
         knowledge_branch_found = False
         for child in branch_to_use.children:
@@ -1111,18 +1111,18 @@ class ConsoleFormatter:
 
     def handle_knowledge_query_started(
         self,
-        agent_branch: Optional[Tree],
+        agent_branch: Tree | None,
         task_prompt: str,
-        crew_tree: Optional[Tree],
+        crew_tree: Tree | None,
     ) -> None:
         """Handle knowledge query generated event."""
         if not self.verbose:
-            return None
+            return
 
         branch_to_use = self.current_lite_agent_branch or agent_branch
         tree_to_use = branch_to_use or crew_tree
         if branch_to_use is None or tree_to_use is None:
-            return None
+            return
 
         query_branch = branch_to_use.add("")
         self.update_tree_label(
@@ -1134,9 +1134,9 @@ class ConsoleFormatter:
 
     def handle_knowledge_query_failed(
         self,
-        agent_branch: Optional[Tree],
+        agent_branch: Tree | None,
         error: str,
-        crew_tree: Optional[Tree],
+        crew_tree: Tree | None,
     ) -> None:
         """Handle knowledge query failed event."""
         if not self.verbose:
@@ -1159,18 +1159,18 @@ class ConsoleFormatter:
 
     def handle_knowledge_query_completed(
         self,
-        agent_branch: Optional[Tree],
-        crew_tree: Optional[Tree],
+        agent_branch: Tree | None,
+        crew_tree: Tree | None,
     ) -> None:
         """Handle knowledge query completed event."""
         if not self.verbose:
-            return None
+            return
 
         branch_to_use = self.current_lite_agent_branch or agent_branch
         tree_to_use = branch_to_use or crew_tree
 
         if branch_to_use is None or tree_to_use is None:
-            return None
+            return
 
         query_branch = branch_to_use.add("")
         self.update_tree_label(query_branch, "✅", "Knowledge Query Completed", "green")
@@ -1180,9 +1180,9 @@ class ConsoleFormatter:
 
     def handle_knowledge_search_query_failed(
         self,
-        agent_branch: Optional[Tree],
+        agent_branch: Tree | None,
         error: str,
-        crew_tree: Optional[Tree],
+        crew_tree: Tree | None,
     ) -> None:
         """Handle knowledge search query failed event."""
         if not self.verbose:
@@ -1207,10 +1207,10 @@ class ConsoleFormatter:
 
     def handle_reasoning_started(
         self,
-        agent_branch: Optional[Tree],
+        agent_branch: Tree | None,
         attempt: int,
-        crew_tree: Optional[Tree],
-    ) -> Optional[Tree]:
+        crew_tree: Tree | None,
+    ) -> Tree | None:
         """Handle agent reasoning started (or refinement) event."""
         if not self.verbose:
             return None
@@ -1249,7 +1249,7 @@ class ConsoleFormatter:
         self,
         plan: str,
         ready: bool,
-        crew_tree: Optional[Tree],
+        crew_tree: Tree | None,
     ) -> None:
         """Handle agent reasoning completed event."""
         if not self.verbose:
@@ -1292,7 +1292,7 @@ class ConsoleFormatter:
     def handle_reasoning_failed(
         self,
         error: str,
-        crew_tree: Optional[Tree],
+        crew_tree: Tree | None,
     ) -> None:
         """Handle agent reasoning failure event."""
         if not self.verbose:
@@ -1329,7 +1329,7 @@ class ConsoleFormatter:
     def handle_agent_logs_started(
         self,
         agent_role: str,
-        task_description: Optional[str] = None,
+        task_description: str | None = None,
         verbose: bool = False,
     ) -> None:
         """Handle agent logs started event."""
@@ -1367,10 +1367,11 @@ class ConsoleFormatter:
         if not verbose:
             return
 
-        from crewai.agents.parser import AgentAction, AgentFinish
         import json
         import re
 
+        from crewai.agents.parser import AgentAction, AgentFinish
+
         agent_role = agent_role.partition("\n")[0]
 
         if isinstance(formatted_answer, AgentAction):
@@ -1437,8 +1438,17 @@ class ConsoleFormatter:
 
             # Create tool output content with better formatting
             output_text = str(formatted_answer.result)
-            if len(output_text) > 2000:
-                output_text = output_text[:1997] + "..."
+            if len(output_text) > 5000:
+                if output_text.count("\n") > 10:  # Multi-line structured data
+                    lines = output_text.split("\n")
+                    truncated_lines = lines[:10]
+                    remaining_lines = len(lines) - 10
+                    output_text = (
+                        "\n".join(truncated_lines)
+                        + f"\n... and {remaining_lines} more rows"
+                    )
+                else:
+                    output_text = output_text[:4997] + "..."
 
             output_panel = Panel(
                 Text(output_text, style="bright_green"),
@@ -1473,9 +1483,9 @@ class ConsoleFormatter:
 
     def handle_memory_retrieval_started(
         self,
-        agent_branch: Optional[Tree],
-        crew_tree: Optional[Tree],
-    ) -> Optional[Tree]:
+        agent_branch: Tree | None,
+        crew_tree: Tree | None,
+    ) -> Tree | None:
         if not self.verbose:
             return None
 
@@ -1497,13 +1507,13 @@ class ConsoleFormatter:
 
     def handle_memory_retrieval_completed(
         self,
-        agent_branch: Optional[Tree],
-        crew_tree: Optional[Tree],
+        agent_branch: Tree | None,
+        crew_tree: Tree | None,
         memory_content: str,
         retrieval_time_ms: float,
     ) -> None:
         if not self.verbose:
-            return None
+            return
 
         branch_to_use = self.current_lite_agent_branch or agent_branch
         tree_to_use = branch_to_use or crew_tree
@@ -1528,7 +1538,7 @@ class ConsoleFormatter:
 
         if branch_to_use is None or tree_to_use is None:
             add_panel()
-            return None
+            return
 
         memory_branch_found = False
         for child in branch_to_use.children:
@@ -1565,13 +1575,13 @@ class ConsoleFormatter:
 
     def handle_memory_query_completed(
         self,
-        agent_branch: Optional[Tree],
+        agent_branch: Tree | None,
         source_type: str,
         query_time_ms: float,
-        crew_tree: Optional[Tree],
+        crew_tree: Tree | None,
     ) -> None:
         if not self.verbose:
-            return None
+            return
 
         branch_to_use = self.current_lite_agent_branch or agent_branch
         tree_to_use = branch_to_use or crew_tree
@@ -1580,7 +1590,7 @@ class ConsoleFormatter:
             branch_to_use = tree_to_use
 
         if branch_to_use is None:
-            return None
+            return
 
         memory_type = source_type.replace("_", " ").title()
 
@@ -1598,13 +1608,13 @@ class ConsoleFormatter:
 
     def handle_memory_query_failed(
         self,
-        agent_branch: Optional[Tree],
-        crew_tree: Optional[Tree],
+        agent_branch: Tree | None,
+        crew_tree: Tree | None,
         error: str,
         source_type: str,
     ) -> None:
         if not self.verbose:
-            return None
+            return
 
         branch_to_use = self.current_lite_agent_branch or agent_branch
         tree_to_use = branch_to_use or crew_tree
@@ -1613,7 +1623,7 @@ class ConsoleFormatter:
             branch_to_use = tree_to_use
 
         if branch_to_use is None:
-            return None
+            return
 
         memory_type = source_type.replace("_", " ").title()
 
@@ -1630,16 +1640,16 @@ class ConsoleFormatter:
                     break
 
     def handle_memory_save_started(
-        self, agent_branch: Optional[Tree], crew_tree: Optional[Tree]
+        self, agent_branch: Tree | None, crew_tree: Tree | None
     ) -> None:
         if not self.verbose:
-            return None
+            return
 
         branch_to_use = agent_branch or self.current_lite_agent_branch
         tree_to_use = branch_to_use or crew_tree
 
         if tree_to_use is None:
-            return None
+            return
 
         for child in tree_to_use.children:
             if "Memory Update" in str(child.label):
@@ -1655,19 +1665,19 @@ class ConsoleFormatter:
 
     def handle_memory_save_completed(
         self,
-        agent_branch: Optional[Tree],
-        crew_tree: Optional[Tree],
+        agent_branch: Tree | None,
+        crew_tree: Tree | None,
         save_time_ms: float,
         source_type: str,
     ) -> None:
         if not self.verbose:
-            return None
+            return
 
         branch_to_use = agent_branch or self.current_lite_agent_branch
         tree_to_use = branch_to_use or crew_tree
 
         if tree_to_use is None:
-            return None
+            return
 
         memory_type = source_type.replace("_", " ").title()
         content = f"✅ {memory_type} Memory Saved ({save_time_ms:.2f}ms)"
@@ -1685,19 +1695,19 @@ class ConsoleFormatter:
 
     def handle_memory_save_failed(
         self,
-        agent_branch: Optional[Tree],
+        agent_branch: Tree | None,
         error: str,
         source_type: str,
-        crew_tree: Optional[Tree],
+        crew_tree: Tree | None,
     ) -> None:
         if not self.verbose:
-            return None
+            return
 
         branch_to_use = agent_branch or self.current_lite_agent_branch
         tree_to_use = branch_to_use or crew_tree
 
         if branch_to_use is None or tree_to_use is None:
-            return None
+            return
 
         memory_type = source_type.replace("_", " ").title()
         content = f"❌ {memory_type} Memory Save Failed"
@@ -1738,7 +1748,7 @@ class ConsoleFormatter:
     def handle_guardrail_completed(
         self,
         success: bool,
-        error: Optional[str],
+        error: str | None,
         retry_count: int,
     ) -> None:
         """Display guardrail evaluation result.
diff --git a/src/crewai/tools/tool_usage.py b/src/crewai/tools/tool_usage.py
index 5b64ae76a..0823985b0 100644
--- a/src/crewai/tools/tool_usage.py
+++ b/src/crewai/tools/tool_usage.py
@@ -5,12 +5,20 @@ import time
 from difflib import SequenceMatcher
 from json import JSONDecodeError
 from textwrap import dedent
-from typing import TYPE_CHECKING, Any, Dict, List, Optional, Union
+from typing import TYPE_CHECKING, Any, Union
 
 import json5
 from json_repair import repair_json
 
 from crewai.agents.tools_handler import ToolsHandler
+from crewai.events.event_bus import crewai_event_bus
+from crewai.events.types.tool_usage_events import (
+    ToolSelectionErrorEvent,
+    ToolUsageErrorEvent,
+    ToolUsageFinishedEvent,
+    ToolUsageStartedEvent,
+    ToolValidateInputErrorEvent,
+)
 from crewai.task import Task
 from crewai.telemetry import Telemetry
 from crewai.tools.structured_tool import CrewStructuredTool
@@ -20,14 +28,6 @@ from crewai.utilities.agent_utils import (
     get_tool_names,
     render_text_description_and_args,
 )
-from crewai.events.event_bus import crewai_event_bus
-from crewai.events.types.tool_usage_events import (
-    ToolSelectionErrorEvent,
-    ToolUsageErrorEvent,
-    ToolUsageFinishedEvent,
-    ToolUsageStartedEvent,
-    ToolValidateInputErrorEvent,
-)
 
 if TYPE_CHECKING:
     from crewai.agents.agent_builder.base_agent import BaseAgent
@@ -68,13 +68,13 @@ class ToolUsage:
 
     def __init__(
         self,
-        tools_handler: Optional[ToolsHandler],
-        tools: List[CrewStructuredTool],
-        task: Optional[Task],
+        tools_handler: ToolsHandler | None,
+        tools: list[CrewStructuredTool],
+        task: Task | None,
         function_calling_llm: Any,
-        agent: Optional[Union["BaseAgent", "LiteAgent"]] = None,
+        agent: Union["BaseAgent", "LiteAgent"] | None = None,
         action: Any = None,
-        fingerprint_context: Optional[Dict[str, str]] = None,
+        fingerprint_context: dict[str, str] | None = None,
     ) -> None:
         self._i18n: I18N = agent.i18n if agent else I18N()
         self._printer: Printer = Printer()
@@ -105,7 +105,7 @@ class ToolUsage:
         return self._tool_calling(tool_string)
 
     def use(
-        self, calling: Union[ToolCalling, InstructorToolCalling], tool_string: str
+        self, calling: ToolCalling | InstructorToolCalling, tool_string: str
     ) -> str:
         if isinstance(calling, ToolUsageErrorException):
             error = calling.message
@@ -147,7 +147,7 @@ class ToolUsage:
         self,
         tool_string: str,
         tool: CrewStructuredTool,
-        calling: Union[ToolCalling, InstructorToolCalling],
+        calling: ToolCalling | InstructorToolCalling,
     ) -> str:
         if self._check_tool_repeated_usage(calling=calling):  # type: ignore # _check_tool_repeated_usage of "ToolUsage" does not return a value (it only ever returns None)
             try:
@@ -331,6 +331,15 @@ class ToolUsage:
             self.task.used_tools += 1
         if self._should_remember_format():
             result = self._remember_format(result=result)
+
+        if isinstance(result, (list, dict)):
+            import json
+
+            try:
+                return json.dumps(result, indent=2, ensure_ascii=False)
+            except (TypeError, ValueError):
+                return str(result)
+
         return str(result)
 
     def _should_remember_format(self) -> bool:
@@ -346,7 +355,7 @@ class ToolUsage:
         return result
 
     def _check_tool_repeated_usage(
-        self, calling: Union[ToolCalling, InstructorToolCalling]
+        self, calling: ToolCalling | InstructorToolCalling
     ) -> bool:
         if not self.tools_handler:
             return False
@@ -393,7 +402,7 @@ class ToolUsage:
                 return tool
         if self.task:
             self.task.increment_tools_errors()
-        tool_selection_data: Dict[str, Any] = {
+        tool_selection_data: dict[str, Any] = {
             "agent_key": getattr(self.agent, "key", None) if self.agent else None,
             "agent_role": getattr(self.agent, "role", None) if self.agent else None,
             "tool_name": tool_name,
@@ -410,16 +419,15 @@ class ToolUsage:
                 ),
             )
             raise Exception(error)
-        else:
-            error = f"I forgot the Action name, these are the only available Actions: {self.tools_description}"
-            crewai_event_bus.emit(
-                self,
-                ToolSelectionErrorEvent(
-                    **tool_selection_data,
-                    error=error,
-                ),
-            )
-            raise Exception(error)
+        error = f"I forgot the Action name, these are the only available Actions: {self.tools_description}"
+        crewai_event_bus.emit(
+            self,
+            ToolSelectionErrorEvent(
+                **tool_selection_data,
+                error=error,
+            ),
+        )
+        raise Exception(error)
 
     def _render(self) -> str:
         """Render the tool name and description in plain text."""
@@ -430,7 +438,7 @@ class ToolUsage:
 
     def _function_calling(
         self, tool_string: str
-    ) -> Union[ToolCalling, InstructorToolCalling]:
+    ) -> ToolCalling | InstructorToolCalling:
         model = (
             InstructorToolCalling
             if self.function_calling_llm.supports_function_calling()
@@ -459,7 +467,7 @@ class ToolUsage:
 
     def _original_tool_calling(
         self, tool_string: str, raise_error: bool = False
-    ) -> Union[ToolCalling, InstructorToolCalling, ToolUsageErrorException]:
+    ) -> ToolCalling | InstructorToolCalling | ToolUsageErrorException:
         tool_name = self.action.tool
         tool = self._select_tool(tool_name)
         try:
@@ -468,18 +476,16 @@ class ToolUsage:
         except Exception:
             if raise_error:
                 raise
-            else:
-                return ToolUsageErrorException(
-                    f"{self._i18n.errors('tool_arguments_error')}"
-                )
+            return ToolUsageErrorException(
+                f"{self._i18n.errors('tool_arguments_error')}"
+            )
 
         if not isinstance(arguments, dict):
             if raise_error:
                 raise
-            else:
-                return ToolUsageErrorException(
-                    f"{self._i18n.errors('tool_arguments_error')}"
-                )
+            return ToolUsageErrorException(
+                f"{self._i18n.errors('tool_arguments_error')}"
+            )
 
         return ToolCalling(
             tool_name=tool.name,
@@ -488,15 +494,14 @@ class ToolUsage:
 
     def _tool_calling(
         self, tool_string: str
-    ) -> Union[ToolCalling, InstructorToolCalling, ToolUsageErrorException]:
+    ) -> ToolCalling | InstructorToolCalling | ToolUsageErrorException:
         try:
             try:
                 return self._original_tool_calling(tool_string, raise_error=True)
             except Exception:
                 if self.function_calling_llm:
                     return self._function_calling(tool_string)
-                else:
-                    return self._original_tool_calling(tool_string)
+                return self._original_tool_calling(tool_string)
         except Exception as e:
             self._run_attempts += 1
             if self._run_attempts > self._max_parsing_attempts:
@@ -510,7 +515,7 @@ class ToolUsage:
                 )
             return self._tool_calling(tool_string)
 
-    def _validate_tool_input(self, tool_input: Optional[str]) -> Dict[str, Any]:
+    def _validate_tool_input(self, tool_input: str | None) -> dict[str, Any]:
         if tool_input is None:
             return {}
 
@@ -534,7 +539,7 @@ class ToolUsage:
                 return arguments
         except (ValueError, SyntaxError):
             repaired_input = repair_json(tool_input)
-            pass  # Continue to the next parsing attempt
+            # Continue to the next parsing attempt
 
         # Attempt 3: Parse as JSON5
         try:
@@ -586,7 +591,7 @@ class ToolUsage:
     def on_tool_error(
         self,
         tool: Any,
-        tool_calling: Union[ToolCalling, InstructorToolCalling],
+        tool_calling: ToolCalling | InstructorToolCalling,
         e: Exception,
     ) -> None:
         event_data = self._prepare_event_data(tool, tool_calling)
@@ -595,7 +600,7 @@ class ToolUsage:
     def on_tool_use_finished(
         self,
         tool: Any,
-        tool_calling: Union[ToolCalling, InstructorToolCalling],
+        tool_calling: ToolCalling | InstructorToolCalling,
         from_cache: bool,
         started_at: float,
         result: Any,
@@ -616,7 +621,7 @@ class ToolUsage:
         crewai_event_bus.emit(self, ToolUsageFinishedEvent(**event_data))
 
     def _prepare_event_data(
-        self, tool: Any, tool_calling: Union[ToolCalling, InstructorToolCalling]
+        self, tool: Any, tool_calling: ToolCalling | InstructorToolCalling
     ) -> dict:
         event_data = {
             "run_attempts": self._run_attempts,
diff --git a/tests/test_mcp_tool_output.py b/tests/test_mcp_tool_output.py
new file mode 100644
index 000000000..245fbec3d
--- /dev/null
+++ b/tests/test_mcp_tool_output.py
@@ -0,0 +1,235 @@
+import json
+from typing import Any, ClassVar
+from unittest.mock import Mock, patch
+
+from crewai.agent import Agent
+from crewai.agents.agent_builder.base_agent import BaseAgent
+from crewai.crew import Crew
+from crewai.project import CrewBase, agent, crew, task
+from crewai.task import Task
+from crewai.tools import tool
+
+
+@tool
+def mock_bigquery_single_row():
+    """Mock BigQuery tool that returns a single row"""
+    return {"id": 1, "name": "John", "age": 30}
+
+
+@tool
+def mock_bigquery_multiple_rows():
+    """Mock BigQuery tool that returns multiple rows"""
+    return [
+        {"id": 1, "name": "John", "age": 30},
+        {"id": 2, "name": "Jane", "age": 25},
+        {"id": 3, "name": "Bob", "age": 35},
+        {"id": 4, "name": "Alice", "age": 28},
+    ]
+
+
+@tool
+def mock_bigquery_large_dataset():
+    """Mock BigQuery tool that returns a large dataset"""
+    return [{"id": i, "name": f"User{i}", "value": f"data_{i}"} for i in range(100)]
+
+
+@tool
+def mock_bigquery_nested_data():
+    """Mock BigQuery tool that returns nested data structures"""
+    return [
+        {
+            "id": 1,
+            "user": {"name": "John", "email": "john@example.com"},
+            "orders": [
+                {"order_id": 101, "amount": 50.0},
+                {"order_id": 102, "amount": 75.0},
+            ],
+        },
+        {
+            "id": 2,
+            "user": {"name": "Jane", "email": "jane@example.com"},
+            "orders": [{"order_id": 103, "amount": 100.0}],
+        },
+    ]
+
+
+@CrewBase
+class MCPTestCrew:
+    agents_config = "config/agents.yaml"
+    tasks_config = "config/tasks.yaml"
+    mcp_server_params: ClassVar[dict[str, Any]] = {"host": "localhost", "port": 8000}
+    mcp_connect_timeout = 120
+
+    agents: list[BaseAgent]
+    tasks: list[Task]
+
+    @agent
+    def data_analyst(self):
+        return Agent(
+            role="Data Analyst",
+            goal="Analyze data from various sources",
+            backstory="Expert in data analysis and BigQuery",
+            tools=[mock_bigquery_single_row, mock_bigquery_multiple_rows],
+        )
+
+    @agent
+    def mcp_agent(self):
+        return Agent(
+            role="MCP Agent",
+            goal="Use MCP tools to fetch data",
+            backstory="Agent that uses MCP tools",
+            tools=self.get_mcp_tools(),
+        )
+
+    @task
+    def analyze_single_row(self):
+        return Task(
+            description="Use mock_bigquery_single_row tool to get data",
+            expected_output="Single row of data",
+            agent=self.data_analyst(),
+        )
+
+    @task
+    def analyze_multiple_rows(self):
+        return Task(
+            description="Use mock_bigquery_multiple_rows tool to get data",
+            expected_output="Multiple rows of data",
+            agent=self.data_analyst(),
+        )
+
+    @crew
+    def crew(self):
+        return Crew(agents=self.agents, tasks=self.tasks, verbose=True)
+
+
+def test_single_row_tool_output():
+    """Test that single row tool output works correctly"""
+    result = mock_bigquery_single_row.invoke({})
+    assert isinstance(result, dict)
+    assert result["id"] == 1
+    assert result["name"] == "John"
+    assert result["age"] == 30
+
+
+def test_multiple_rows_tool_output():
+    """Test that multiple rows tool output is preserved"""
+    result = mock_bigquery_multiple_rows.invoke({})
+    assert isinstance(result, list)
+    assert len(result) == 4
+    assert result[0]["id"] == 1
+    assert result[1]["id"] == 2
+    assert result[2]["id"] == 3
+    assert result[3]["id"] == 4
+
+
+def test_large_dataset_tool_output():
+    """Test that large datasets are handled correctly"""
+    result = mock_bigquery_large_dataset.invoke({})
+    assert isinstance(result, list)
+    assert len(result) == 100
+    assert result[0]["id"] == 0
+    assert result[99]["id"] == 99
+
+
+def test_nested_data_tool_output():
+    """Test that nested data structures are preserved"""
+    result = mock_bigquery_nested_data.invoke({})
+    assert isinstance(result, list)
+    assert len(result) == 2
+    assert result[0]["user"]["name"] == "John"
+    assert len(result[0]["orders"]) == 2
+    assert result[1]["user"]["name"] == "Jane"
+    assert len(result[1]["orders"]) == 1
+
+
+def test_tool_result_formatting():
+    """Test that tool results are properly formatted as strings"""
+    from crewai.tools.tool_usage import ToolUsage
+
+    tool_usage = ToolUsage()
+
+    single_result = mock_bigquery_single_row.invoke({})
+    formatted_single = tool_usage._format_result(single_result)
+    assert isinstance(formatted_single, str)
+    parsed_single = json.loads(formatted_single)
+    assert parsed_single["id"] == 1
+
+    multi_result = mock_bigquery_multiple_rows.invoke({})
+    formatted_multi = tool_usage._format_result(multi_result)
+    assert isinstance(formatted_multi, str)
+    parsed_multi = json.loads(formatted_multi)
+    assert len(parsed_multi) == 4
+    assert parsed_multi[0]["id"] == 1
+    assert parsed_multi[3]["id"] == 4
+
+
+def test_mcp_crew_with_mock_tools():
+    """Test MCP crew integration with mock tools"""
+    with patch("embedchain.client.Client.setup"):
+        from crewai_tools import MCPServerAdapter
+        from crewai_tools.adapters.mcp_adapter import ToolCollection
+
+    mock_adapter = Mock(spec=MCPServerAdapter)
+    mock_adapter.tools = ToolCollection([mock_bigquery_multiple_rows])
+
+    with patch("crewai_tools.MCPServerAdapter", return_value=mock_adapter):
+        crew = MCPTestCrew()
+        mcp_agent = crew.mcp_agent()
+        assert mock_bigquery_multiple_rows in mcp_agent.tools
+
+
+def test_tool_output_preserves_structure():
+    """Test that tool output preserves data structure through the processing pipeline"""
+    from crewai.tools.tool_usage import ToolUsage
+
+    tool_usage = ToolUsage()
+
+    bigquery_result = [
+        {"id": 1, "name": "John", "revenue": 1000.50},
+        {"id": 2, "name": "Jane", "revenue": 2500.75},
+        {"id": 3, "name": "Bob", "revenue": 1750.25},
+    ]
+
+    formatted_result = tool_usage._format_result(bigquery_result)
+
+    assert isinstance(formatted_result, str)
+
+    parsed_result = json.loads(formatted_result)
+    assert len(parsed_result) == 3
+    assert parsed_result[0]["id"] == 1
+    assert parsed_result[1]["name"] == "Jane"
+    assert parsed_result[2]["revenue"] == 1750.25
+
+
+def test_tool_output_backward_compatibility():
+    """Test that simple string/number outputs still work"""
+    from crewai.tools.tool_usage import ToolUsage
+
+    tool_usage = ToolUsage()
+
+    string_result = "Simple string result"
+    formatted_string = tool_usage._format_result(string_result)
+    assert formatted_string == "Simple string result"
+
+    number_result = 42
+    formatted_number = tool_usage._format_result(number_result)
+    assert formatted_number == "42"
+
+    bool_result = True
+    formatted_bool = tool_usage._format_result(bool_result)
+    assert formatted_bool == "True"
+
+
+def test_malformed_data_handling():
+    """Test that malformed data is handled gracefully"""
+    from crewai.tools.tool_usage import ToolUsage
+
+    tool_usage = ToolUsage()
+
+    class NonSerializable:
+        def __str__(self):
+            return "NonSerializable object"
+
+    non_serializable = NonSerializable()
+    formatted_result = tool_usage._format_result(non_serializable)
+    assert formatted_result == "NonSerializable object"