diff --git a/src/lib/components/Terminal.svelte b/src/lib/components/Terminal.svelte
index 1d1f665..19135b6 100644
--- a/src/lib/components/Terminal.svelte
+++ b/src/lib/components/Terminal.svelte
@@ -7,6 +7,7 @@
   import Markdown from "./Markdown.svelte";
   import HighlightedText from "./HighlightedText.svelte";
   import ThinkingBlock from "./ThinkingBlock.svelte";
+  import ToolCallBlock from "./ToolCallBlock.svelte";
   import { searchState, searchQuery } from "$lib/stores/search";
   import { clipboardStore } from "$lib/stores/clipboard";
   import { shouldHidePaths, maskPaths, showThinkingBlocks } from "$lib/stores/config";
@@ -208,22 +209,6 @@
     if (!currentConversationId) return;
     await invoke("send_prompt", { conversationId: currentConversationId, message: "/compact" });
   }
-
-  // Collapsible tool lines
-  const TOOL_COLLAPSE_THRESHOLD = 60;
-  let expandedToolLines: Record<string, boolean> = {};
-
-  function isToolContentLong(content: string): boolean {
-    return content.length > TOOL_COLLAPSE_THRESHOLD;
-  }
-
-  function truncateToolContent(content: string): string {
-    return content.slice(0, TOOL_COLLAPSE_THRESHOLD) + "…";
-  }
-
-  function toggleToolLine(id: string) {
-    expandedToolLines = { ...expandedToolLines, [id]: !expandedToolLines[id] };
-  }
 </script>
 
 <div
@@ -258,6 +243,18 @@
           {#if showThinking}
             <ThinkingBlock content={line.content} timestamp={line.timestamp} />
           {/if}
+        {:else if line.type === "tool"}
+          <div
+            style={line.parentToolUseId
+              ? "margin-left: 16px; padding-left: 8px; border-left: 2px solid var(--accent-primary);"
+              : ""}
+          >
+            <ToolCallBlock
+              toolName={line.toolName ?? null}
+              content={maskPaths(line.content, hidePaths)}
+              timestamp={line.timestamp}
+            />
+          </div>
         {:else}
           <div
             class="terminal-line mb-2 {getLineClass(line.type)} relative group"
@@ -296,9 +293,6 @@
             {#if getLinePrefix(line.type)}
               <span class="terminal-prefix mr-2">{getLinePrefix(line.type)}</span>
             {/if}
-            {#if line.toolName}
-              <span class="terminal-tool-name mr-2">[{line.toolName}]</span>
-            {/if}
             {#if line.type === "compact-prompt"}
               <button class="compact-action-btn" onclick={handleCompact}>
                 ⚡ Compact Conversation
@@ -330,22 +324,6 @@
                   <span class="copy-text">{copiedMessageId === line.id ? "Copied!" : "Copy"}</span>
                 </button>
               </div>
-            {:else if line.type === "tool" && isToolContentLong(maskPaths(line.content, hidePaths))}
-              <span class="tool-collapsible">
-                <HighlightedText
-                  content={expandedToolLines[line.id]
-                    ? maskPaths(line.content, hidePaths)
-                    : truncateToolContent(maskPaths(line.content, hidePaths))}
-                  searchQuery={currentSearchQuery}
-                />
-                <button
-                  class="tool-toggle-btn"
-                  onclick={() => toggleToolLine(line.id)}
-                  title={expandedToolLines[line.id] ? "Collapse" : "Expand to see full content"}
-                >
-                  {expandedToolLines[line.id] ? "▲" : "▼"}
-                </button>
-              </span>
             {:else}
               <HighlightedText
                 content={maskPaths(line.content, hidePaths)}
@@ -501,28 +479,4 @@
   .terminal-line {
     position: relative;
   }
-
-  .tool-collapsible {
-    display: inline-flex;
-    align-items: baseline;
-    gap: 0.4em;
-  }
-
-  .tool-toggle-btn {
-    background: none;
-    border: none;
-    color: var(--text-tertiary, #6b7280);
-    cursor: pointer;
-    font-size: 0.7em;
-    padding: 0;
-    line-height: 1;
-    opacity: 0.7;
-    transition: opacity 0.15s ease;
-    font-family: inherit;
-  }
-
-  .tool-toggle-btn:hover {
-    opacity: 1;
-    color: var(--terminal-tool, #c084fc);
-  }
 </style>
diff --git a/src/lib/components/ToolCallBlock.svelte b/src/lib/components/ToolCallBlock.svelte
new file mode 100644
index 0000000..78c996b
--- /dev/null
+++ b/src/lib/components/ToolCallBlock.svelte
@@ -0,0 +1,141 @@
+<script lang="ts">
+  interface Props {
+    toolName: string | null;
+    content: string;
+    timestamp: Date;
+  }
+
+  let { toolName, content, timestamp }: Props = $props();
+  let isExpanded = $state(false);
+
+  function toggleExpanded() {
+    isExpanded = !isExpanded;
+  }
+
+  function formatTime(date: Date): string {
+    return date.toLocaleTimeString("en-US", {
+      hour: "2-digit",
+      minute: "2-digit",
+    });
+  }
+</script>
+
+<div class="tool-block">
+  <button class="tool-header" onclick={toggleExpanded} type="button">
+    <span class="tool-timestamp">{formatTime(timestamp)}</span>
+    <svg
+      class="tool-icon"
+      fill="none"
+      stroke="currentColor"
+      viewBox="0 0 24 24"
+      width="16"
+      height="16"
+    >
+      <path
+        stroke-linecap="round"
+        stroke-linejoin="round"
+        stroke-width="2"
+        d="M14.7 6.3a1 1 0 0 0 0 1.4l1.6 1.6a1 1 0 0 0 1.4 0l3.77-3.77a6 6 0 0 1-7.94 7.94l-6.91 6.91a2.12 2.12 0 0 1-3-3l6.91-6.91a6 6 0 0 1 7.94-7.94l-3.76 3.76z"
+      />
+    </svg>
+    {#if toolName}
+      <span class="tool-name">[{toolName}]</span>
+    {/if}
+    <span class="tool-label">{content}</span>
+    <svg
+      class="chevron"
+      class:expanded={isExpanded}
+      fill="none"
+      stroke="currentColor"
+      viewBox="0 0 24 24"
+      width="14"
+      height="14"
+    >
+      <path stroke-linecap="round" stroke-linejoin="round" stroke-width="2" d="M19 9l-7 7-7-7" />
+    </svg>
+  </button>
+
+  {#if isExpanded}
+    <div class="tool-content">
+      {content}
+    </div>
+  {/if}
+</div>
+
+<style>
+  .tool-block {
+    margin-bottom: 0.5rem;
+    border: 1px solid var(--border-color);
+    border-radius: 0.375rem;
+    background: var(--bg-secondary);
+    opacity: 0.85;
+  }
+
+  .tool-header {
+    display: flex;
+    align-items: center;
+    gap: 0.5rem;
+    width: 100%;
+    padding: 0.5rem 0.75rem;
+    border: none;
+    background: transparent;
+    cursor: pointer;
+    color: var(--terminal-tool, #c084fc);
+    font-size: 0.875rem;
+    transition: all 0.2s;
+  }
+
+  .tool-header:hover {
+    background: var(--bg-primary);
+    color: var(--text-primary);
+  }
+
+  .tool-timestamp {
+    font-family: monospace;
+    font-size: 0.75rem;
+    opacity: 0.7;
+    color: var(--text-secondary);
+    flex-shrink: 0;
+  }
+
+  .tool-icon {
+    flex-shrink: 0;
+  }
+
+  .tool-name {
+    font-family: monospace;
+    font-weight: 600;
+    flex-shrink: 0;
+    color: var(--terminal-tool-name, #ddd6fe);
+  }
+
+  .tool-label {
+    flex: 1;
+    text-align: left;
+    font-style: italic;
+    overflow: hidden;
+    text-overflow: ellipsis;
+    white-space: nowrap;
+  }
+
+  .chevron {
+    flex-shrink: 0;
+    transition: transform 0.2s;
+  }
+
+  .chevron.expanded {
+    transform: rotate(180deg);
+  }
+
+  .tool-content {
+    padding: 0.75rem;
+    border-top: 1px solid var(--border-color);
+    color: var(--terminal-tool, #c084fc);
+    font-family: monospace;
+    font-size: 0.875rem;
+    font-style: italic;
+    line-height: 1.5;
+    white-space: pre-wrap;
+    word-break: break-word;
+  }
+</style>