diff --git a/crates/agent/src/thread.rs b/crates/agent/src/thread.rs
index 311898f906b982e4bcacd331bc8b36085816498a..b6973ad51d265499d1db3548d2602ff33f4e8bd9 100644
--- a/crates/agent/src/thread.rs
+++ b/crates/agent/src/thread.rs
@@ -144,6 +144,10 @@ impl Message {
         }
     }
 
+    pub fn push_redacted_thinking(&mut self, data: String) {
+        self.segments.push(MessageSegment::RedactedThinking(data));
+    }
+
     pub fn push_text(&mut self, text: &str) {
         if let Some(MessageSegment::Text(segment)) = self.segments.last_mut() {
             segment.push_str(text);
@@ -182,7 +186,7 @@ pub enum MessageSegment {
         text: String,
         signature: Option<String>,
     },
-    RedactedThinking(Vec<u8>),
+    RedactedThinking(String),
 }
 
 impl MessageSegment {
@@ -1644,6 +1648,25 @@ impl Thread {
                                     };
                                 }
                             }
+                            LanguageModelCompletionEvent::RedactedThinking {
+                                data
+                            } => {
+                                thread.received_chunk();
+
+                                if let Some(last_message) = thread.messages.last_mut() {
+                                    if last_message.role == Role::Assistant
+                                        && !thread.tool_use.has_tool_results(last_message.id)
+                                    {
+                                        last_message.push_redacted_thinking(data);
+                                    } else {
+                                        request_assistant_message_id =
+                                            Some(thread.insert_assistant_message(
+                                                vec![MessageSegment::RedactedThinking(data)],
+                                                cx,
+                                            ));
+                                    };
+                                }
+                            }
                             LanguageModelCompletionEvent::ToolUse(tool_use) => {
                                 let last_assistant_message_id = request_assistant_message_id
                                     .unwrap_or_else(|| {
diff --git a/crates/agent/src/thread_store.rs b/crates/agent/src/thread_store.rs
index db87bdd3a59ae70cd7550bc3ce359bd6f78617d0..1d26b3bef4dcaf50344cc8101bea83d1d68bca82 100644
--- a/crates/agent/src/thread_store.rs
+++ b/crates/agent/src/thread_store.rs
@@ -730,7 +730,7 @@ pub enum SerializedMessageSegment {
         signature: Option<String>,
     },
     RedactedThinking {
-        data: Vec<u8>,
+        data: String,
     },
 }
 
diff --git a/crates/assistant_context_editor/src/context.rs b/crates/assistant_context_editor/src/context.rs
index 2a833eb130cef3e3ad901a17a6481bb7fbd1f794..2ca26321d19f7f66c7bcaf4f52a416c84b7acf34 100644
--- a/crates/assistant_context_editor/src/context.rs
+++ b/crates/assistant_context_editor/src/context.rs
@@ -2110,6 +2110,7 @@ impl AssistantContext {
                                             );
                                         }
                                     }
+                                    LanguageModelCompletionEvent::RedactedThinking { .. } => {},
                                     LanguageModelCompletionEvent::Text(mut chunk) => {
                                         if let Some(start) = thought_process_stack.pop() {
                                             let end = buffer.anchor_before(message_old_end_offset);
diff --git a/crates/eval/src/instance.rs b/crates/eval/src/instance.rs
index f28165e859be017b28e26e359d0df9e5b1f63391..5e286ad334d3d432d4caf0217eb2454343fb8d09 100644
--- a/crates/eval/src/instance.rs
+++ b/crates/eval/src/instance.rs
@@ -1024,6 +1024,7 @@ pub fn response_events_to_markdown(
             Ok(LanguageModelCompletionEvent::Thinking { text, .. }) => {
                 thinking_buffer.push_str(text);
             }
+            Ok(LanguageModelCompletionEvent::RedactedThinking { .. }) => {}
             Ok(LanguageModelCompletionEvent::Stop(reason)) => {
                 flush_buffers(&mut response, &mut text_buffer, &mut thinking_buffer);
                 response.push_str(&format!("**Stop**: {:?}\n\n", reason));
@@ -1120,6 +1121,7 @@ impl ThreadDialog {
 
                 // Skip these
                 Ok(LanguageModelCompletionEvent::UsageUpdate(_))
+                | Ok(LanguageModelCompletionEvent::RedactedThinking { .. })
                 | Ok(LanguageModelCompletionEvent::StatusUpdate { .. })
                 | Ok(LanguageModelCompletionEvent::StartMessage { .. })
                 | Ok(LanguageModelCompletionEvent::Stop(_)) => {}
diff --git a/crates/language_model/src/language_model.rs b/crates/language_model/src/language_model.rs
index 01f005d73c05f467a744fb34b88b243070d5e4b3..361494542f99d2384760bce362c65cf29eec04e1 100644
--- a/crates/language_model/src/language_model.rs
+++ b/crates/language_model/src/language_model.rs
@@ -66,6 +66,9 @@ pub enum LanguageModelCompletionEvent {
         text: String,
         signature: Option<String>,
     },
+    RedactedThinking {
+        data: String,
+    },
     ToolUse(LanguageModelToolUse),
     StartMessage {
         message_id: String,
@@ -314,6 +317,7 @@ pub trait LanguageModel: Send + Sync {
                                 Ok(LanguageModelCompletionEvent::StartMessage { .. }) => None,
                                 Ok(LanguageModelCompletionEvent::Text(text)) => Some(Ok(text)),
                                 Ok(LanguageModelCompletionEvent::Thinking { .. }) => None,
+                                Ok(LanguageModelCompletionEvent::RedactedThinking { .. }) => None,
                                 Ok(LanguageModelCompletionEvent::Stop(_)) => None,
                                 Ok(LanguageModelCompletionEvent::ToolUse(_)) => None,
                                 Ok(LanguageModelCompletionEvent::UsageUpdate(token_usage)) => {
diff --git a/crates/language_model/src/request.rs b/crates/language_model/src/request.rs
index 559d8e9111405cef4c1b039a7c8ffa945de1d950..451a62775e6331b139ef5c4da57e4d7d930af6f8 100644
--- a/crates/language_model/src/request.rs
+++ b/crates/language_model/src/request.rs
@@ -303,7 +303,7 @@ pub enum MessageContent {
         text: String,
         signature: Option<String>,
     },
-    RedactedThinking(Vec<u8>),
+    RedactedThinking(String),
     Image(LanguageModelImage),
     ToolUse(LanguageModelToolUse),
     ToolResult(LanguageModelToolResult),
diff --git a/crates/language_models/src/provider/anthropic.rs b/crates/language_models/src/provider/anthropic.rs
index c581f01f4ce1dd56af59a22e32bcbb2d991a1627..307b279438bc80aa4503a9a04b0378fe7b059818 100644
--- a/crates/language_models/src/provider/anthropic.rs
+++ b/crates/language_models/src/provider/anthropic.rs
@@ -561,9 +561,7 @@ pub fn into_anthropic(
                         }
                         MessageContent::RedactedThinking(data) => {
                             if !data.is_empty() {
-                                Some(anthropic::RequestContent::RedactedThinking {
-                                    data: String::from_utf8(data).ok()?,
-                                })
+                                Some(anthropic::RequestContent::RedactedThinking { data })
                             } else {
                                 None
                             }
@@ -737,10 +735,8 @@ impl AnthropicEventMapper {
                         signature: None,
                     })]
                 }
-                ResponseContent::RedactedThinking { .. } => {
-                    // Redacted thinking is encrypted and not accessible to the user, see:
-                    // https://docs.anthropic.com/en/docs/build-with-claude/extended-thinking#suggestions-for-handling-redacted-thinking-in-production
-                    Vec::new()
+                ResponseContent::RedactedThinking { data } => {
+                    vec![Ok(LanguageModelCompletionEvent::RedactedThinking { data })]
                 }
                 ResponseContent::ToolUse { id, name, .. } => {
                     self.tool_uses_by_index.insert(