diff --git a/tests/integration/test_agent_streaming_integration.py b/tests/integration/test_agent_streaming_integration.py
index 2b619098..0971d30c 100644
--- a/tests/integration/test_agent_streaming_integration.py
+++ b/tests/integration/test_agent_streaming_integration.py
@@ -111,7 +111,7 @@ Args: {
         # Arrange
         thought_chunks = []
 
-        async def think(chunk):
+        async def think(chunk, is_final=False):
             thought_chunks.append(chunk)
 
         # Act
@@ -138,7 +138,7 @@ Args: {
         # Arrange
         observation_chunks = []
 
-        async def observe(chunk):
+        async def observe(chunk, is_final=False):
             observation_chunks.append(chunk)
 
         # Act
@@ -178,10 +178,10 @@ Args: {
         thought_chunks = []
         observation_chunks = []
 
-        async def think(chunk):
+        async def think(chunk, is_final=False):
             thought_chunks.append(chunk)
 
-        async def observe(chunk):
+        async def observe(chunk, is_final=False):
             observation_chunks.append(chunk)
 
         streaming_result = await agent_manager.react(
@@ -358,3 +358,38 @@ Final Answer: AI is the simulation of human intelligence in machines."""
         call_args = mock_prompt_client.agent_react.call_args
         assert call_args.kwargs['streaming'] is True
         assert call_args.kwargs['chunk_callback'] is not None
+
+    @pytest.mark.asyncio
+    async def test_agent_streaming_end_of_message_flags(self, agent_manager, mock_flow_context):
+        """Test that end_of_message flags are correctly set for thought chunks"""
+        # Arrange
+        thought_calls = []
+
+        async def think(chunk, is_final=False):
+            thought_calls.append({
+                'chunk': chunk,
+                'is_final': is_final
+            })
+
+        # Act
+        await agent_manager.react(
+            question="What is machine learning?",
+            history=[],
+            think=think,
+            observe=AsyncMock(),
+            context=mock_flow_context,
+            streaming=True
+        )
+
+        # Assert
+        assert len(thought_calls) > 0, "Expected thought chunks to be sent"
+
+        # All chunks except the last should have is_final=False
+        for i, call in enumerate(thought_calls[:-1]):
+            assert call['is_final'] is False, \
+                f"Thought chunk {i} should have is_final=False, got {call['is_final']}"
+
+        # Last chunk should have is_final=True
+        last_call = thought_calls[-1]
+        assert last_call['is_final'] is True, \
+            f"Last thought chunk should have is_final=True, got {last_call['is_final']}"
diff --git a/trustgraph-flow/trustgraph/agent/react/agent_manager.py b/trustgraph-flow/trustgraph/agent/react/agent_manager.py
index 9311a57b..bf1edbfa 100644
--- a/trustgraph-flow/trustgraph/agent/react/agent_manager.py
+++ b/trustgraph-flow/trustgraph/agent/react/agent_manager.py
@@ -256,7 +256,11 @@ class AgentManager:
                 # Send any new thought chunks
                 for i in range(prev_thought_count, len(thought_chunks)):
                     logger.info(f"DEBUG: Sending thought chunk {i}")
-                    await think(thought_chunks[i])
+                    # Mark last chunk as final if parser has moved out of THOUGHT state
+                    is_last = (i == len(thought_chunks) - 1)
+                    is_thought_complete = parser.state.value != "thought"
+                    is_final = is_last and is_thought_complete
+                    await think(thought_chunks[i], is_final=is_final)
 
                 # Send any new answer chunks
                 for i in range(prev_answer_count, len(answer_chunks)):
@@ -376,7 +380,7 @@ class AgentManager:
 
             logger.info(f"resp: {resp}")
 
-            await observe(resp)
+            await observe(resp, is_final=True)
 
             act.observation = resp
 
diff --git a/trustgraph-flow/trustgraph/agent/react/service.py b/trustgraph-flow/trustgraph/agent/react/service.py
index 2fb5b9c9..a4238e36 100755
--- a/trustgraph-flow/trustgraph/agent/react/service.py
+++ b/trustgraph-flow/trustgraph/agent/react/service.py
@@ -214,16 +214,16 @@ class Processor(AgentService):
 
             logger.debug(f"History: {history}")
 
-            async def think(x):
+            async def think(x, is_final=False):
 
-                logger.debug(f"Think: {x}")
+                logger.debug(f"Think: {x} (is_final={is_final})")
 
                 if streaming:
                     # Streaming format
                     r = AgentResponse(
                         chunk_type="thought",
                         content=x,
-                        end_of_message=True,
+                        end_of_message=is_final,
                         end_of_dialog=False,
                         # Legacy fields for backward compatibility
                         answer=None,
@@ -242,16 +242,16 @@ class Processor(AgentService):
 
                 await respond(r)
 
-            async def observe(x):
+            async def observe(x, is_final=False):
 
-                logger.debug(f"Observe: {x}")
+                logger.debug(f"Observe: {x} (is_final={is_final})")
 
                 if streaming:
                     # Streaming format
                     r = AgentResponse(
                         chunk_type="observation",
                         content=x,
-                        end_of_message=True,
+                        end_of_message=is_final,
                         end_of_dialog=False,
                         # Legacy fields for backward compatibility
                         answer=None,
@@ -352,14 +352,14 @@ class Processor(AgentService):
 
                 if streaming:
                     # Streaming format - send end-of-dialog marker
-                    # Answer chunks were already sent via think() callback during parsing
+                    # Answer chunks were already sent via answer() callback during parsing
                     r = AgentResponse(
                         chunk_type="answer",
                         content="",  # Empty content, just marking end of dialog
                         end_of_message=True,
                         end_of_dialog=True,
-                        # Legacy fields for backward compatibility
-                        answer=act.final,
+                        # Legacy fields set to None - answer already sent via streaming chunks
+                        answer=None,
                         error=None,
                         thought=None,
                     )