diff --git a/src/services/llm/providers/ollama_service.ts b/src/services/llm/providers/ollama_service.ts
index da3c42845..71bd8bdd8 100644
--- a/src/services/llm/providers/ollama_service.ts
+++ b/src/services/llm/providers/ollama_service.ts
@@ -1,4 +1,3 @@
-import options from '../../options.js';
 import { BaseAIService } from '../base_ai_service.js';
 import type { Message, ChatCompletionOptions, ChatResponse, StreamChunk } from '../ai_interface.js';
 import { OllamaMessageFormatter } from '../formatters/ollama_formatter.js';
@@ -8,6 +7,8 @@ import toolRegistry from '../tools/tool_registry.js';
 import type { OllamaOptions } from './provider_options.js';
 import { getOllamaOptions } from './providers.js';
 import { Ollama, type ChatRequest, type ChatResponse as OllamaChatResponse } from 'ollama';
+import options from '../../options.js';
+import { StreamProcessor, createStreamHandler } from './stream_handler.js';
 
 // Add an interface for tool execution feedback status
 interface ToolExecutionStatus {
@@ -268,127 +269,86 @@ export class OllamaService extends BaseAIService {
         // Log detailed information about the streaming setup
         log.info(`Ollama streaming details: model=${providerOptions.model}, streamCallback=${opts.streamCallback ? 'provided' : 'not provided'}`);
 
-        // Create a stream handler function that processes the SDK's stream
-        const streamHandler = async (callback: (chunk: StreamChunk) => Promise<void> | void): Promise<string> => {
-            let completeText = '';
-            let responseToolCalls: any[] = [];
-            let chunkCount = 0;
+        // Create a stream handler using our reusable StreamProcessor
+        const streamHandler = createStreamHandler(
+            {
+                providerName: this.getName(),
+                modelName: providerOptions.model,
+                streamCallback: opts.streamCallback
+            },
+            async (callback) => {
+                let completeText = '';
+                let responseToolCalls: any[] = [];
+                let chunkCount = 0;
 
-            try {
-                // Create streaming request
-                const streamingRequest = {
-                    ...requestOptions,
-                    stream: true as const // Use const assertion to fix the type
-                };
-
-                log.info(`Creating Ollama streaming request with options: model=${streamingRequest.model}, stream=${streamingRequest.stream}, tools=${streamingRequest.tools ? streamingRequest.tools.length : 0}`);
-
-                // Get the async iterator
-                log.info(`Calling Ollama chat API with streaming enabled`);
-                let streamIterator;
                 try {
-                    log.info(`About to call client.chat with streaming request to ${options.getOption('ollamaBaseUrl')}`);
-                    log.info(`Stream request: model=${streamingRequest.model}, messages count=${streamingRequest.messages?.length || 0}`);
+                    // Create streaming request
+                    const streamingRequest = {
+                        ...requestOptions,
+                        stream: true as const
+                    };
 
-                    // Check if we can connect to Ollama by getting available models
+                    log.info(`Creating Ollama streaming request with options: model=${streamingRequest.model}, stream=${streamingRequest.stream}, tools=${streamingRequest.tools ? streamingRequest.tools.length : 0}`);
+
+                    // Perform health check
                     try {
                         log.info(`Performing Ollama health check...`);
                         const healthCheck = await client.list();
                         log.info(`Ollama health check successful. Available models: ${healthCheck.models.map(m => m.name).join(', ')}`);
                     } catch (healthError) {
                         log.error(`Ollama health check failed: ${healthError instanceof Error ? healthError.message : String(healthError)}`);
-                        log.error(`This indicates a connection issue to the Ollama server at ${options.getOption('ollamaBaseUrl')}`);
                         throw new Error(`Unable to connect to Ollama server: ${healthError instanceof Error ? healthError.message : String(healthError)}`);
                     }
 
-                    // Make the streaming request
-                    log.info(`Proceeding with Ollama streaming request after successful health check`);
-                    streamIterator = await client.chat(streamingRequest);
-
-                    log.info(`Successfully obtained Ollama stream iterator`);
+                    // Get the stream iterator
+                    log.info(`Getting stream iterator from Ollama`);
+                    const streamIterator = await client.chat(streamingRequest);
 
                     if (!streamIterator || typeof streamIterator[Symbol.asyncIterator] !== 'function') {
-                        log.error(`Invalid stream iterator returned: ${JSON.stringify(streamIterator)}`);
-                        throw new Error('Stream iterator is not valid');
+                        throw new Error('Invalid stream iterator returned');
                     }
-                } catch (error) {
-                    log.error(`Error getting stream iterator: ${error instanceof Error ? error.message : String(error)}`);
-                    log.error(`Error stack: ${error instanceof Error ? error.stack : 'No stack trace'}`);
-                    throw error;
-                }
 
-                // Process each chunk
-                try {
-                    log.info(`About to start processing stream chunks`);
+                    // Process each chunk using our stream processor
                     for await (const chunk of streamIterator) {
                         chunkCount++;
 
-                        // Log first chunk and then periodic updates
-                        if (chunkCount === 1 || chunkCount % 10 === 0) {
-                            log.info(`Processing Ollama stream chunk #${chunkCount}, done=${!!chunk.done}, has content=${!!chunk.message?.content}`);
+                        // Process the chunk and update our accumulated text
+                        const result = await StreamProcessor.processChunk(
+                            chunk,
+                            completeText,
+                            chunkCount,
+                            { providerName: this.getName(), modelName: providerOptions.model }
+                        );
+
+                        completeText = result.completeText;
+
+                        // Extract any tool calls
+                        const toolCalls = StreamProcessor.extractToolCalls(chunk);
+                        if (toolCalls.length > 0) {
+                            responseToolCalls = toolCalls;
                         }
 
-                        // Accumulate text
-                        if (chunk.message?.content) {
-                            const newContent = chunk.message.content;
-                            completeText += newContent;
-
-                            if (chunkCount === 1) {
-                                log.info(`First content chunk received: "${newContent.substring(0, 50)}${newContent.length > 50 ? '...' : ''}"`);
-                            }
-                        }
-
-                        // Check for tool calls
-                        if (chunk.message?.tool_calls && chunk.message.tool_calls.length > 0) {
-                            responseToolCalls = [...chunk.message.tool_calls];
-                            log.info(`Received tool calls in stream: ${chunk.message.tool_calls.length} tools`);
-                        }
-
-                        // Send the chunk to the caller
+                        // Send to callback
                         await callback({
                             text: chunk.message?.content || '',
-                            done: false, // Never mark as done during chunk processing
-                            raw: chunk // Include the raw chunk for advanced processing
+                            done: false,  // Add done property to satisfy StreamChunk
+                            raw: chunk
                         });
 
-                        // If this is the done chunk, log it
-                        if (chunk.done) {
-                            log.info(`Reached final chunk (done=true) after ${chunkCount} chunks, total content length: ${completeText.length}`);
+                        // Log completion
+                        if (chunk.done && !result.logged) {
+                            log.info(`Reached final chunk after ${chunkCount} chunks, content length: ${completeText.length} chars`);
                         }
                     }
 
-                    log.info(`Completed streaming from Ollama: processed ${chunkCount} chunks, total content: ${completeText.length} chars`);
-
-                    // Signal completion with a separate final callback after all processing is done
-                    await callback({
-                        text: '',
-                        done: true
-                    });
-                } catch (streamProcessError) {
-                    log.error(`Error processing Ollama stream: ${streamProcessError instanceof Error ? streamProcessError.message : String(streamProcessError)}`);
-                    log.error(`Stream process error stack: ${streamProcessError instanceof Error ? streamProcessError.stack : 'No stack trace'}`);
-
-                    // Try to signal completion with error
-                    try {
-                        await callback({
-                            text: '',
-                            done: true,
-                            raw: { error: streamProcessError instanceof Error ? streamProcessError.message : String(streamProcessError) }
-                        });
-                    } catch (finalError) {
-                        log.error(`Error sending final error chunk: ${finalError}`);
-                    }
-
-                    throw streamProcessError;
+                    return completeText;
+                } catch (error) {
+                    log.error(`Error in Ollama streaming: ${error}`);
+                    log.error(`Error details: ${error instanceof Error ? error.stack : 'No stack trace available'}`);
+                    throw error;
                 }
-
-                return completeText;
-            } catch (error) {
-                log.error(`Error in Ollama streaming: ${error}`);
-                log.error(`Error details: ${error instanceof Error ? error.stack : 'No stack trace available'}`);
-                throw error;
             }
-        };
+        );
 
         // Handle direct streamCallback if provided
         if (opts.streamCallback) {
@@ -452,67 +412,45 @@ export class OllamaService extends BaseAIService {
                         chunkCount++;
                         finalChunk = chunk;
 
-                        // Log first chunk and periodic updates
-                        if (chunkCount === 1 || chunkCount % 10 === 0) {
-                        log.info(`Processing Ollama direct stream chunk #${chunkCount}, done=${!!chunk.done}, has content=${!!chunk.message?.content}`);
-                    }
+                        // Process chunk with StreamProcessor
+                        const result = await StreamProcessor.processChunk(
+                            chunk,
+                            completeText,
+                            chunkCount,
+                            { providerName: this.getName(), modelName: providerOptions.model }
+                        );
 
-                    // Accumulate text
-                    if (chunk.message?.content) {
-                        const newContent = chunk.message.content;
-                        completeText += newContent;
+                        completeText = result.completeText;
 
-                        if (chunkCount === 1) {
-                            log.info(`First direct content chunk: "${newContent.substring(0, 50)}${newContent.length > 50 ? '...' : ''}"`);
+                        // Extract tool calls
+                        const toolCalls = StreamProcessor.extractToolCalls(chunk);
+                        if (toolCalls.length > 0) {
+                            responseToolCalls = toolCalls;
                         }
-                    }
 
-                    // Check for tool calls
-                    if (chunk.message?.tool_calls && chunk.message.tool_calls.length > 0) {
-                        responseToolCalls = [...chunk.message.tool_calls];
-                        log.info(`Received tool calls in direct stream: ${chunk.message.tool_calls.length} tools`);
-                    }
-
-                    // Call the callback with the current chunk content
-                    if (opts.streamCallback) {
-                        try {
-                            // Only mark as done on the final chunk if we have actual content
-                            // This ensures consistent behavior with and without tool calls
-                            // We'll send a separate final callback after the loop completes
-                            const shouldMarkAsDone = false; // Never mark as done during chunk processing
-
-                            await opts.streamCallback(
+                        // Call the callback with the current chunk content
+                        if (opts.streamCallback) {
+                            await StreamProcessor.sendChunkToCallback(
+                                opts.streamCallback,
                                 chunk.message?.content || '',
-                                shouldMarkAsDone,
-                                chunk
+                                false, // Never mark as done during processing
+                                chunk,
+                                chunkCount
                             );
+                        }
 
-                            if (chunkCount === 1) {
-                                log.info(`Successfully called streamCallback with first chunk`);
-                            }
-                        } catch (callbackError) {
-                            log.error(`Error in streamCallback: ${callbackError}`);
+                        // If this is the done chunk, log it
+                        if (chunk.done && !result.logged) {
+                            log.info(`Reached final direct chunk (done=true) after ${chunkCount} chunks, total content length: ${completeText.length}`);
                         }
                     }
 
-                    // If this is the done chunk, log it
-                    if (chunk.done) {
-                        log.info(`Reached final direct chunk (done=true) after ${chunkCount} chunks, total content length: ${completeText.length}`);
+                    // Send one final callback with done=true after all chunks have been processed
+                    if (opts.streamCallback) {
+                        await StreamProcessor.sendFinalCallback(opts.streamCallback, completeText);
                     }
-                }
 
-                // Send one final callback with done=true after all chunks have been processed
-                // This ensures we get the complete response regardless of tool calls
-                if (opts.streamCallback) {
-                    try {
-                        log.info(`Sending final done=true callback after processing all chunks`);
-                        await opts.streamCallback('', true, { done: true });
-                    } catch (finalCallbackError) {
-                        log.error(`Error in final streamCallback: ${finalCallbackError}`);
-                    }
-                }
-
-                log.info(`Completed direct streaming from Ollama: processed ${chunkCount} chunks, final content: ${completeText.length} chars`);
+                    log.info(`Completed direct streaming from Ollama: processed ${chunkCount} chunks, final content: ${completeText.length} chars`);
                 } catch (iterationError) {
                     log.error(`Error iterating through Ollama stream chunks: ${iterationError instanceof Error ? iterationError.message : String(iterationError)}`);
                     log.error(`Iteration error stack: ${iterationError instanceof Error ? iterationError.stack : 'No stack trace'}`);
@@ -520,17 +458,17 @@ export class OllamaService extends BaseAIService {
                 }
 
                 // Create the final response after streaming is complete
-                return {
-                    text: completeText,
-                    model: providerOptions.model,
-                    provider: this.getName(),
-                    tool_calls: this.transformToolCalls(responseToolCalls),
-                    usage: {
+                return StreamProcessor.createFinalResponse(
+                    completeText,
+                    providerOptions.model,
+                    this.getName(),
+                    this.transformToolCalls(responseToolCalls),
+                    {
                         promptTokens: finalChunk?.prompt_eval_count || 0,
                         completionTokens: finalChunk?.eval_count || 0,
                         totalTokens: (finalChunk?.prompt_eval_count || 0) + (finalChunk?.eval_count || 0)
                     }
-                };
+                );
             } catch (error) {
                 log.error(`Error in Ollama streaming with callback: ${error}`);
                 log.error(`Error details: ${error instanceof Error ? error.stack : 'No stack trace available'}`);
@@ -543,7 +481,8 @@ export class OllamaService extends BaseAIService {
             text: '', // Initial text is empty, will be populated during streaming
             model: providerOptions.model,
             provider: this.getName(),
-            stream: streamHandler
+            stream: streamHandler as (callback: (chunk: StreamChunk) => Promise<void> | void) => Promise<string>
+
         };
     }
 
diff --git a/src/services/llm/providers/stream_handler.ts b/src/services/llm/providers/stream_handler.ts
new file mode 100644
index 000000000..192e729e1
--- /dev/null
+++ b/src/services/llm/providers/stream_handler.ts
@@ -0,0 +1,189 @@
+/**
+ * Stream Handler - Reusable streaming implementation for LLM providers
+ *
+ * This module provides common streaming utilities that can be used by any LLM provider.
+ * It abstracts the complexities of handling streaming responses and tool executions.
+ */
+
+import type { StreamChunk as BaseStreamChunk, ChatCompletionOptions } from '../ai_interface.js';
+import log from '../../log.js';
+
+/**
+ * Extended StreamChunk interface that makes 'done' optional for internal use
+ */
+export interface StreamChunk extends Omit<BaseStreamChunk, 'done'> {
+    done?: boolean;
+}
+
+/**
+ * Stream processing options
+ */
+export interface StreamProcessingOptions {
+    streamCallback?: (text: string, done: boolean, chunk?: any) => Promise<void> | void;
+    providerName: string;
+    modelName: string;
+}
+
+/**
+ * Stream processor that handles common streaming operations
+ */
+export class StreamProcessor {
+    /**
+     * Process an individual chunk from a streaming response
+     */
+    static async processChunk(
+        chunk: any,
+        completeText: string,
+        chunkCount: number,
+        options: StreamProcessingOptions
+    ): Promise<{completeText: string, logged: boolean}> {
+        let textToAdd = '';
+        let logged = false;
+
+        // Log first chunk and periodic updates
+        if (chunkCount === 1 || chunkCount % 10 === 0) {
+            log.info(`Processing ${options.providerName} stream chunk #${chunkCount}, done=${!!chunk.done}, has content=${!!chunk.message?.content}`);
+            logged = true;
+        }
+
+        // Extract content if available
+        if (chunk.message?.content) {
+            textToAdd = chunk.message.content;
+            const newCompleteText = completeText + textToAdd;
+
+            if (chunkCount === 1) {
+                log.info(`First content chunk: "${textToAdd.substring(0, 50)}${textToAdd.length > 50 ? '...' : ''}"`);
+            }
+
+            return { completeText: newCompleteText, logged };
+        }
+
+        return { completeText, logged };
+    }
+
+    /**
+     * Send a streaming chunk to the callback
+     */
+    static async sendChunkToCallback(
+        callback: (text: string, done: boolean, chunk?: any) => Promise<void> | void,
+        content: string,
+        done: boolean,
+        chunk: any,
+        chunkNumber: number
+    ): Promise<void> {
+        try {
+            const result = callback(content || '', done, chunk);
+            // Handle both Promise and void return types
+            if (result instanceof Promise) {
+                await result;
+            }
+
+            if (chunkNumber === 1) {
+                log.info(`Successfully called streamCallback with first chunk`);
+            }
+        } catch (callbackError) {
+            log.error(`Error in streamCallback: ${callbackError}`);
+        }
+    }
+
+    /**
+     * Send final completion callback
+     */
+    static async sendFinalCallback(
+        callback: (text: string, done: boolean, chunk?: any) => Promise<void> | void,
+        completeText: string
+    ): Promise<void> {
+        try {
+            log.info(`Sending final done=true callback after processing all chunks`);
+            const result = callback('', true, { done: true });
+            // Handle both Promise and void return types
+            if (result instanceof Promise) {
+                await result;
+            }
+        } catch (finalCallbackError) {
+            log.error(`Error in final streamCallback: ${finalCallbackError}`);
+        }
+    }
+
+    /**
+     * Detect and extract tool calls from a response chunk
+     */
+    static extractToolCalls(chunk: any): any[] {
+        if (chunk.message?.tool_calls &&
+            Array.isArray(chunk.message.tool_calls) &&
+            chunk.message.tool_calls.length > 0) {
+
+            log.info(`Detected ${chunk.message.tool_calls.length} tool calls in stream chunk`);
+            return [...chunk.message.tool_calls];
+        }
+
+        return [];
+    }
+
+    /**
+     * Create a standard response object from streaming results
+     */
+    static createFinalResponse(
+        completeText: string,
+        modelName: string,
+        providerName: string,
+        toolCalls: any[],
+        usage: any = {}
+    ) {
+        return {
+            text: completeText,
+            model: modelName,
+            provider: providerName,
+            tool_calls: toolCalls,
+            usage
+        };
+    }
+}
+
+/**
+ * Create a streaming handler that follows a consistent pattern
+ */
+export function createStreamHandler(
+    options: StreamProcessingOptions,
+    streamImplementation: (callback: (chunk: StreamChunk) => Promise<void>) => Promise<string>
+) {
+    // Return a standard stream handler function that providers can use
+    return async (callback: (chunk: BaseStreamChunk) => Promise<void>): Promise<string> => {
+        let completeText = '';
+        let chunkCount = 0;
+
+        try {
+            // Call the provided implementation
+            return await streamImplementation(async (chunk: StreamChunk) => {
+                chunkCount++;
+
+                // Process the chunk
+                if (chunk.text) {
+                    completeText += chunk.text;
+                }
+
+                // Forward to callback - ensure done is always boolean for BaseStreamChunk
+                await callback({
+                    text: chunk.text || '',
+                    done: !!chunk.done, // Ensure done is boolean
+                    raw: chunk.raw || chunk // Include raw data
+                });
+            });
+        } catch (error) {
+            log.error(`Error in stream handler: ${error}`);
+            throw error;
+        } finally {
+            // Always ensure a final done=true chunk is sent
+            if (chunkCount > 0) {
+                try {
+                    await callback({
+                        text: '',
+                        done: true
+                    });
+                } catch (e) {
+                    log.error(`Error sending final chunk: ${e}`);
+                }
+            }
+        }
+    };
+}