diff --git a/frontend/src/lib/components/copilot/chat/AIChatDisplay.svelte b/frontend/src/lib/components/copilot/chat/AIChatDisplay.svelte
index e86ce913c7..3e7b4c6f1c 100644
--- a/frontend/src/lib/components/copilot/chat/AIChatDisplay.svelte
+++ b/frontend/src/lib/components/copilot/chat/AIChatDisplay.svelte
@@ -422,13 +422,13 @@
 					{#if showTypingIndicator}
 						<div
 							class={twMerge(
-								'sticky z-10 mt-0.5 ml-2 self-start pointer-events-none',
+								'sticky z-10 -mt-10 ml-2 self-start pointer-events-none',
 								showFlowPendingActionControls ? 'bottom-14' : 'bottom-2'
 							)}
 						>
 							{#if waitingForUserAction}
 								<span
-									class="inline-flex items-center gap-1.5 text-2xs text-accent"
+									class="inline-flex items-center gap-1.5 px-2 py-1 rounded-md bg-surface/80 backdrop-blur text-2xs text-accent"
 									aria-label="Waiting for your input"
 								>
 									<Hourglass class="w-3 h-3 hourglass-flip" />
diff --git a/frontend/src/lib/components/copilot/chat/AIChatMessage.svelte b/frontend/src/lib/components/copilot/chat/AIChatMessage.svelte
index 0658049914..30b08d0567 100644
--- a/frontend/src/lib/components/copilot/chat/AIChatMessage.svelte
+++ b/frontend/src/lib/components/copilot/chat/AIChatMessage.svelte
@@ -41,6 +41,7 @@
 <div
 	class={twMerge(
 		'mb-2 min-w-0',
+		message.role === 'tool' && 'mb-1',
 		message.role === 'user' && messageIndex > 0 && 'mt-4 mb-6',
 		isLast && '!mb-12',
 		message.role !== 'user' ? 'cursor-default' : 'cursor-pointer'
@@ -74,7 +75,7 @@
 			/>
 		</div>
 	{:else}
-		<div class={twMerge('text-sm py-1 px-2', message.role === 'tool' && 'text-primary')}>
+		<div class={twMerge('text-sm py-1 px-2', message.role === 'tool' && 'text-primary py-0')}>
 			{#if message.role === 'assistant'}
 				<div class="px-[1px]"><AssistantMessage {message} /></div>
 			{:else if message.role === 'tool'}
diff --git a/frontend/src/lib/components/copilot/chat/ToolContentDisplay.svelte b/frontend/src/lib/components/copilot/chat/ToolContentDisplay.svelte
index a2ff24847d..c4b2d0cc21 100644
--- a/frontend/src/lib/components/copilot/chat/ToolContentDisplay.svelte
+++ b/frontend/src/lib/components/copilot/chat/ToolContentDisplay.svelte
@@ -104,14 +104,14 @@
 </script>
 
 {#if showWhileLoading || (!loading && hasContent) || streaming}
-	<div class="space-y-2">
+	<div class="space-y-2 group">
 		<div class="flex items-center justify-between">
-			<span class="text-2xs">
+			<span class="text-2xs text-hint">
 				{title}:
 			</span>
 			{#if showCopy && hasContent && !streaming}
 				<button
-					class="p-1 rounded hover:bg-surface-secondary text-primary hover:text-secondary transition-colors"
+					class="p-1 rounded hover:bg-surface-secondary text-primary hover:text-secondary transition-opacity duration-200 opacity-0 group-hover:opacity-100 focus-visible:opacity-100"
 					onclick={copyToClipboard}
 					title="Copy {title.toLowerCase()}"
 				>
@@ -125,26 +125,20 @@
 		</div>
 
 		{#if loading && !streaming && !hasContent}
-			<div
-				class="bg-surface-secondary border border-gray-200 dark:border-gray-700 rounded p-3 flex items-center gap-2 text-primary"
-			>
+			<div class="flex items-center gap-2 text-primary">
 				<Loader2 class="w-3 h-3 animate-spin" />
 				<span class="text-2xs">Executing...</span>
 			</div>
 		{:else if error}
-			<div
-				class="bg-red-50 dark:bg-red-900/20 border border-red-200 dark:border-red-800 rounded p-3 overflow-x-auto max-h-28 overflow-y-auto"
-			>
+			<div class="overflow-x-auto max-h-28 overflow-y-auto">
 				<pre class="text-2xs text-red-700 dark:text-red-300 whitespace-pre-wrap">{error}</pre>
 			</div>
 		{:else if hasContent}
-			<div
-				class="bg-surface-secondary border border-gray-200 dark:border-gray-700 rounded overflow-hidden relative"
-			>
+			<div class="relative">
 				<div
 					bind:this={scrollEl}
 					onscroll={updateCanScrollDown}
-					class="p-3 overflow-x-auto max-h-28 overflow-y-auto"
+					class="overflow-x-auto max-h-28 overflow-y-auto"
 				>
 					<pre class="text-2xs text-primary whitespace-pre-wrap"
 						>{formatJson($state.snapshot(content))}</pre
@@ -152,16 +146,12 @@
 				</div>
 				{#if showFade && canScrollDown}
 					<div
-						class="absolute bottom-0 left-0 right-0 h-16 pointer-events-none bg-gradient-to-t from-surface-secondary via-surface-secondary/70 via-surface-secondary/40 to-transparent"
+						class="absolute bottom-0 left-0 right-0 h-16 pointer-events-none bg-gradient-to-t from-surface via-surface/70 via-surface/40 to-transparent"
 					></div>
 				{/if}
 			</div>
 		{:else}
-			<div
-				class="bg-surface-secondary border border-gray-200 dark:border-gray-700 rounded p-3 text-center"
-			>
-				<span class="text-2xs text-primary">No {title.toLowerCase()} yet</span>
-			</div>
+			<span class="text-2xs text-tertiary">No {title.toLowerCase()} yet</span>
 		{/if}
 	</div>
 {/if}
diff --git a/frontend/src/lib/components/copilot/chat/ToolExecutionDisplay.svelte b/frontend/src/lib/components/copilot/chat/ToolExecutionDisplay.svelte
index b6d01c6b38..f0865cfde1 100644
--- a/frontend/src/lib/components/copilot/chat/ToolExecutionDisplay.svelte
+++ b/frontend/src/lib/components/copilot/chat/ToolExecutionDisplay.svelte
@@ -1,11 +1,12 @@
 <script lang="ts">
-	import { Loader2, ChevronDown, ChevronRight, XCircle, Play } from 'lucide-svelte'
+	import { Loader2, ChevronRight, XCircle, Play } from 'lucide-svelte'
 	import { Button } from '$lib/components/common'
 	import { getAiChatManager } from './aiChatManagerContext'
 
 	const aiChatManager = getAiChatManager()
 	import { isActiveUserQuestion, type ToolDisplayMessage } from './shared'
 	import { twMerge } from 'tailwind-merge'
+	import { slide } from 'svelte/transition'
 	import ToolContentDisplay from './ToolContentDisplay.svelte'
 	import ToolMessageActions from './ToolMessageActions.svelte'
 	import AskUserQuestionDisplay from './AskUserQuestionDisplay.svelte'
@@ -48,42 +49,41 @@
 {#if activeUserQuestion}
 	<AskUserQuestionDisplay toolCallId={message.tool_call_id} userQuestion={activeUserQuestion} />
 {:else}
-	<div class="bg-surface border border-border-light rounded-md overflow-hidden font-mono text-xs">
+	<div class="font-mono text-xs">
 		<!-- Collapsible Header -->
 		<button
 			class={twMerge(
-				'w-full p-2 bg-surface-secondary/30 hover:bg-surface-hover transition-colors flex items-center justify-between text-left',
-				isExpanded ? 'border-b border-border-light' : '',
+				'py-0.5 my-0.5 rounded-md hover:bg-surface-hover transition-colors inline-flex items-center text-left',
 				message.needsConfirmation ? 'opacity-80' : ''
 			)}
 			onclick={() => (isExpanded = !isExpanded)}
 			disabled={!message.showDetails && !message.isStreamingArguments}
 		>
-			<div class="flex items-center gap-2 flex-1">
-				{#if message.showDetails || message.isStreamingArguments}
-					{#if isExpanded}
-						<ChevronDown class="w-3 h-3 text-secondary" />
-					{:else}
-						<ChevronRight class="w-3 h-3 text-secondary" />
-					{/if}
-				{/if}
-
+			<div class="flex items-center gap-2">
 				{#if message.isLoading && !message.needsConfirmation}
 					<Loader2 class="w-3.5 h-3.5 animate-spin text-blue-500" />
-				{:else if message.error}
-					<span class="text-red-500">✗</span>
-				{:else if !message.isLoading && !message.error}
-					<span class="text-green-500">✓</span>
 				{/if}
 				<span class="text-primary font-medium text-2xs">
 					{message.content}
 				</span>
+
+				{#if message.showDetails || message.isStreamingArguments}
+					<ChevronRight
+						class={twMerge(
+							'w-3 h-3 text-secondary transition-transform duration-150',
+							isExpanded ? 'rotate-90' : ''
+						)}
+					/>
+				{/if}
 			</div>
 		</button>
 
 		<!-- Expanded Content -->
 		{#if isExpanded}
-			<div class="p-2 bg-surface space-y-3">
+			<div
+				transition:slide={{ duration: 150 }}
+				class="border border-border-light rounded-md bg-surface p-3 space-y-3"
+			>
 				<!-- Parameters Section - show if we have parameters, or if confirmation is needed (even with empty params) -->
 				{#if hasParameters || message.needsConfirmation}
 					<div class={message.needsConfirmation ? 'opacity-80' : ''}>
@@ -99,12 +99,7 @@
 
 				<!-- Confirmation Footer -->
 				{#if message.needsConfirmation}
-					<div
-						class={twMerge(
-							'mt-3 pt-3 flex flex-row items-center justify-end gap-2',
-							hasParameters ? 'border-t border-border-light' : ''
-						)}
-					>
+					<div class="flex flex-row items-center justify-end gap-2">
 						<Button
 							variant="default"
 							size="xs"