diff --git a/crates/agent/src/agent.rs b/crates/agent/src/agent.rs
index 8de0aaee0c05c07e0b3c86a1b7570a1a61dc5332..d468d529c5ac672600d5280a11a45f4f6ad1b2f9 100644
--- a/crates/agent/src/agent.rs
+++ b/crates/agent/src/agent.rs
@@ -14,6 +14,7 @@ mod tools;
 
 use context_server::ContextServerId;
 pub use db::*;
+use itertools::Itertools;
 pub use native_agent_server::NativeAgentServer;
 pub use pattern_extraction::*;
 pub use shell_command_parser::extract_commands;
@@ -1819,7 +1820,21 @@ impl SubagentHandle for NativeSubagentHandle {
                 SubagentPromptResult::Completed => thread.read_with(cx, |thread, _cx| {
                     thread
                         .last_message()
-                        .map(|m| m.to_markdown())
+                        .and_then(|message| {
+                            let content = message.as_agent_message()?
+                                .content
+                                .iter()
+                                .filter_map(|c| match c {
+                                    AgentMessageContent::Text(text) => Some(text.as_str()),
+                                    _ => None,
+                                })
+                                .join("\n\n");
+                            if content.is_empty() {
+                                None
+                            } else {
+                                Some(content)
+                            }
+                        })
                         .context("No response from subagent")
                 }),
                 SubagentPromptResult::Cancelled => Err(anyhow!("User canceled")),
diff --git a/crates/agent/src/tests/mod.rs b/crates/agent/src/tests/mod.rs
index 5262414631c7f1f329a7de941424e0a0dfa8b1b9..f62edb091463860f5fcf105f2383c352660166a6 100644
--- a/crates/agent/src/tests/mod.rs
+++ b/crates/agent/src/tests/mod.rs
@@ -4294,6 +4294,160 @@ async fn test_subagent_tool_call_end_to_end(cx: &mut TestAppContext) {
 
             subagent task response
 
+            ## Assistant
+
+            Response
+
+        "#},
+    );
+}
+
+#[gpui::test]
+async fn test_subagent_tool_output_does_not_include_thinking(cx: &mut TestAppContext) {
+    init_test(cx);
+    cx.update(|cx| {
+        LanguageModelRegistry::test(cx);
+    });
+    cx.update(|cx| {
+        cx.update_flags(true, vec!["subagents".to_string()]);
+    });
+
+    let fs = FakeFs::new(cx.executor());
+    fs.insert_tree(
+        "/",
+        json!({
+            "a": {
+                "b.md": "Lorem"
+            }
+        }),
+    )
+    .await;
+    let project = Project::test(fs.clone(), [path!("/a").as_ref()], cx).await;
+    let thread_store = cx.new(|cx| ThreadStore::new(cx));
+    let agent = NativeAgent::new(
+        project.clone(),
+        thread_store.clone(),
+        Templates::new(),
+        None,
+        fs.clone(),
+        &mut cx.to_async(),
+    )
+    .await
+    .unwrap();
+    let connection = Rc::new(NativeAgentConnection(agent.clone()));
+
+    let acp_thread = cx
+        .update(|cx| {
+            connection
+                .clone()
+                .new_session(project.clone(), Path::new(""), cx)
+        })
+        .await
+        .unwrap();
+    let session_id = acp_thread.read_with(cx, |thread, _| thread.session_id().clone());
+    let thread = agent.read_with(cx, |agent, _| {
+        agent.sessions.get(&session_id).unwrap().thread.clone()
+    });
+    let model = Arc::new(FakeLanguageModel::default());
+
+    // Ensure empty threads are not saved, even if they get mutated.
+    thread.update(cx, |thread, cx| {
+        thread.set_model(model.clone(), cx);
+    });
+    cx.run_until_parked();
+
+    let send = acp_thread.update(cx, |thread, cx| thread.send_raw("Prompt", cx));
+    cx.run_until_parked();
+    model.send_last_completion_stream_text_chunk("spawning subagent");
+    let subagent_tool_input = SpawnAgentToolInput {
+        label: "label".to_string(),
+        message: "subagent task prompt".to_string(),
+        session_id: None,
+    };
+    let subagent_tool_use = LanguageModelToolUse {
+        id: "subagent_1".into(),
+        name: SpawnAgentTool::NAME.into(),
+        raw_input: serde_json::to_string(&subagent_tool_input).unwrap(),
+        input: serde_json::to_value(&subagent_tool_input).unwrap(),
+        is_input_complete: true,
+        thought_signature: None,
+    };
+    model.send_last_completion_stream_event(LanguageModelCompletionEvent::ToolUse(
+        subagent_tool_use,
+    ));
+    model.end_last_completion_stream();
+
+    cx.run_until_parked();
+
+    let subagent_session_id = thread.read_with(cx, |thread, cx| {
+        thread
+            .running_subagent_ids(cx)
+            .get(0)
+            .expect("subagent thread should be running")
+            .clone()
+    });
+
+    let subagent_thread = agent.read_with(cx, |agent, _cx| {
+        agent
+            .sessions
+            .get(&subagent_session_id)
+            .expect("subagent session should exist")
+            .acp_thread
+            .clone()
+    });
+
+    model.send_last_completion_stream_text_chunk("subagent task response 1");
+    model.send_last_completion_stream_event(LanguageModelCompletionEvent::Thinking {
+        text: "thinking more about the subagent task".into(),
+        signature: None,
+    });
+    model.send_last_completion_stream_text_chunk("subagent task response 2");
+    model.end_last_completion_stream();
+
+    cx.run_until_parked();
+
+    assert_eq!(
+        subagent_thread.read_with(cx, |thread, cx| thread.to_markdown(cx)),
+        indoc! {"
+            ## User
+
+            subagent task prompt
+
+            ## Assistant
+
+            subagent task response 1
+
+            <thinking>
+            thinking more about the subagent task
+            </thinking>
+
+            subagent task response 2
+
+        "}
+    );
+
+    model.send_last_completion_stream_text_chunk("Response");
+    model.end_last_completion_stream();
+
+    send.await.unwrap();
+
+    assert_eq!(
+        acp_thread.read_with(cx, |thread, cx| thread.to_markdown(cx)),
+        indoc! {r#"
+            ## User
+
+            Prompt
+
+            ## Assistant
+
+            spawning subagent
+
+            **Tool Call: label**
+            Status: Completed
+
+            subagent task response 1
+
+            subagent task response 2
 
             ## Assistant