diff --git a/tools/tools_utils.go b/tools/tools_utils.go
index 48531b78..b6f80729 100644
--- a/tools/tools_utils.go
+++ b/tools/tools_utils.go
@@ -166,31 +166,26 @@ func extractToolArgs(tmpl *gotmpl.Template) (name, arguments string, err error)
 		return "", "", err
 	}
 
-	var obj any
-	err = json.Unmarshal(b.Bytes(), &obj)
-	if err != nil {
+	// Extract JSON object between curly braces
+	// JSON arrays are also valid as they will not be repeated in the template
+	output := b.String()
+	start := strings.Index(output, "{")
+	end := strings.LastIndex(output, "}")
+	if start == -1 || end == -1 || start > end {
+		return "", "", errors.New("no valid JSON object found in template output")
+	}
+	jsonStr := output[start : end+1]
+
+	var obj map[string]any
+	if err := json.Unmarshal([]byte(jsonStr), &obj); err != nil {
 		return "", "", err
 	}
 
-	var objs []map[string]any
-	switch v := obj.(type) {
-	case map[string]any:
-		objs = []map[string]any{v}
-	case []map[string]any:
-		objs = v
-	case []any:
-		objs = collect(v)
-	}
-	if len(objs) == 0 {
-		return "", "", errors.New("no template objects found")
-	}
-
-	// find the keys that correspond to the name and arguments fields
-	for k, v := range objs[0] {
-		switch v.(type) {
-		case string:
+	// Find name and arguments fields
+	for k, v := range obj {
+		if str, ok := v.(string); ok && str == "@@name@@" {
 			name = k
-		case map[string]any:
+		} else if _, ok := v.(map[string]any); ok {
 			arguments = k
 		}
 	}
diff --git a/tools/tools_utils_test.go b/tools/tools_utils_test.go
index 769183b7..e346117a 100644
--- a/tools/tools_utils_test.go
+++ b/tools/tools_utils_test.go
@@ -271,74 +271,99 @@ func TestExtractToolArgs(t *testing.T) {
 	cases := []struct {
 		name     string
 		template string
-		want     string
-		ok       bool
+		wantName string
+		wantArgs string
+		wantErr  bool
 	}{
 		{
-			name:     "basic tool call with text after",
-			template: `{{if .ToolCalls}}tool response{{end}}`,
-			want:     "tool response",
-			ok:       true,
+			name: "basic tool call",
+			template: `{{ range .ToolCalls }}
+{"name": "{{ .Function.Name }}", "parameters": {{ .Function.Arguments }}}{{ end }}`,
+			wantName: "name",
+			wantArgs: "parameters",
+			wantErr:  false,
 		},
 		{
-			name:     "tool call with mixed content after",
-			template: `{{if .ToolCalls}}<tool_call>{{.Something}}{{end}}`,
-			want:     "<tool_call>",
-			ok:       true,
+			name: "tool call with whitespace",
+			template: `{{range .ToolCalls}}
+  {"name": "{{.Function.Name}}", "parameters": {{.Function.Arguments}}}
+{{end}}`,
+			wantName: "name",
+			wantArgs: "parameters",
+			wantErr:  false,
 		},
 		{
-			name:     "tool call with no text after",
-			template: `{{if .ToolCalls}}{{.Something}}{{end}}`,
-			want:     "",
-			ok:       true,
-		},
-		{
-			name:     "nested tool call",
-			template: `{{if .Something}}{{if .ToolCalls}}[TOOL_CALL]{{end}}{{end}}`,
-			want:     "[TOOL_CALL]",
-			ok:       true,
+			name: "tool call with extra content",
+			template: `Before {{range .ToolCalls}}
+{"name": "{{.Function.Name}}", "arguments": {{.Function.Arguments}}}{{end}} After`,
+			wantName: "name",
+			wantArgs: "arguments",
+			wantErr:  false,
 		},
 		{
 			name:     "no tool calls",
 			template: `{{if .Something}}no tools here{{end}}`,
-			want:     "",
-			ok:       false,
+			wantName: "",
+			wantArgs: "",
+			wantErr:  true,
 		},
 		{
 			name:     "empty template",
 			template: ``,
-			want:     "",
-			ok:       false,
+			wantName: "",
+			wantArgs: "",
+			wantErr:  true,
 		},
 		{
-			name:     "multiple tool calls sections",
-			template: `{{if .ToolCalls}}first{{end}}{{if .ToolCalls}}second{{end}}`,
-			want:     "first",
-			ok:       true,
+			name: "prefix within tool call",
+			template: `{{- if .ToolCalls }}
+{{ range .ToolCalls }}
+<tool_call>
+{"name": "{{ .Function.Name }}", "arguments": {{ .Function.Arguments }}}
+</tool_call>{{ end }}{{- end }}`,
+			wantName: "name",
+			wantArgs: "arguments",
+			wantErr:  false,
 		},
 		{
-			name:     "range over tool calls",
-			template: `{{if .ToolCalls}}{{range .ToolCalls}}tool{{end}}{{end}}`,
-			want:     "",
-			ok:       true,
+			name: "JSON array",
+			template: `{{ range .ToolCalls }}
+[{"name": "{{ .Function.Name }}", "arguments": {{ .Function.Arguments }}}]{{ end }}`,
+			wantName: "name",
+			wantArgs: "arguments",
+			wantErr:  false,
 		},
 		{
-			name:     "tool calls with pipe delimiters",
-			template: `{{if .ToolCalls}}<|tool|>{{end}}`,
-			want:     "<|tool|>",
-			ok:       true,
+			name: "invalid JSON",
+			template: `{{ range .ToolCalls }}
+{"name": "{{ .Function.Name }}", "arguments": {{ .Function.Arguments }}, invalid}{{ end }}`,
+			wantName: "",
+			wantArgs: "",
+			wantErr:  true,
 		},
 		{
-			name:     "tool calls with nested template",
-			template: `{{if .ToolCalls}}{{template "tool" .}}{{end}}`,
-			want:     "",
-			ok:       true,
+			name: "missing name field",
+			template: `{{ range .ToolCalls }}
+{"parameters": {{ .Function.Arguments }}}{{ end }}`,
+			wantName: "",
+			wantArgs: "",
+			wantErr:  true,
 		},
 		{
-			name:     "tool calls with whitespace variations",
-			template: `{{if .ToolCalls}}  tool  {{end}}`,
-			want:     "  tool  ",
-			ok:       true,
+			name: "missing arguments field",
+			template: `{{ range .ToolCalls }}
+{"name": "{{ .Function.Name }}"}{{ end }}`,
+			wantName: "",
+			wantArgs: "",
+			wantErr:  true,
+		},
+		{
+			name: "malformed JSON",
+			template: `{{ range .ToolCalls }}
+{"name": {{ .Function.Name }}, "arguments": {{ .Function.Arguments }}{{ end }}`,
+			wantName: "",
+			wantArgs: "",
+			wantErr:  true,
 		},
 	}
 
@@ -349,12 +374,20 @@ func TestExtractToolArgs(t *testing.T) {
 				t.Fatalf("failed to parse template: %v", err)
 			}
 
-			got, ok := extractToolCallsFormat(tmpl)
-			if got != tt.want {
-				t.Errorf("TextAfterToolCalls() got = %q, want %q", got, tt.want)
+			gotName, gotArgs, err := extractToolArgs(tmpl)
+			if (err != nil) != tt.wantErr {
+				t.Errorf("extractToolArgs() error = %v, wantErr %v", err, tt.wantErr)
+				return
 			}
-			if ok != tt.ok {
-				t.Errorf("TextAfterToolCalls() ok = %v, want %v", ok, tt.ok)
+			if err != nil {
+				return
+			}
+
+			if gotName != tt.wantName {
+				t.Errorf("extractToolArgs() gotName = %q, want %q", gotName, tt.wantName)
+			}
+			if gotArgs != tt.wantArgs {
+				t.Errorf("extractToolArgs() gotArgs = %q, want %q", gotArgs, tt.wantArgs)
 			}
 		})
 	}