diff --git a/apps/web/src/components/ui/streaming/AppMarkdownStreaming/AppMarkdownStreaming.stories.tsx b/apps/web/src/components/ui/streaming/AppMarkdownStreaming/AppMarkdownStreaming.stories.tsx
index 43fe4a1b4..54debd808 100644
--- a/apps/web/src/components/ui/streaming/AppMarkdownStreaming/AppMarkdownStreaming.stories.tsx
+++ b/apps/web/src/components/ui/streaming/AppMarkdownStreaming/AppMarkdownStreaming.stories.tsx
@@ -496,3 +496,249 @@ export const ParagraphToListTransition: Story = {
     );
   }
 };
+
+// Test case for broken up inline code streaming
+const brokenInlineCodeTokens = [
+  {
+    token: 'This paragraph contains several inline code examples. Here is a complete ',
+    delayMs: 300
+  },
+  {
+    token: '`complete_code_block`',
+    delayMs: 200
+  },
+  {
+    token: ' HOLD ',
+    delayMs: 1000
+  },
+  {
+    token: " that arrives in one token. Now let's test broken inline code: ",
+    delayMs: 300
+  },
+  {
+    token: '`br',
+    delayMs: 400
+  },
+  {
+    token: 'oken',
+    delayMs: 2000
+  },
+  {
+    token: '_code',
+    delayMs: 250
+  },
+  {
+    token: '_block',
+    delayMs: 260
+  },
+  {
+    token: '`',
+    delayMs: 650
+  },
+  {
+    token: " where the backticks and content are split. Here's another example with ",
+    delayMs: 300
+  },
+  {
+    token: '`',
+    delayMs: 500
+  },
+  {
+    token: 'useState',
+    delayMs: 200
+  },
+  {
+    token: '`',
+    delayMs: 400
+  },
+  {
+    token: ' and ',
+    delayMs: 150
+  },
+  {
+    token: '`',
+    delayMs: 300
+  },
+  {
+    token: 'useEffect',
+    delayMs: 200
+  },
+  {
+    token: '`',
+    delayMs: 300
+  },
+  {
+    token: ' hooks. Sometimes the content itself is split like ',
+    delayMs: 300
+  },
+  {
+    token: '`',
+    delayMs: 200
+  },
+  {
+    token: 'customer',
+    delayMs: 150
+  },
+  {
+    token: '_all',
+    delayMs: 150
+  },
+  {
+    token: '_time',
+    delayMs: 150
+  },
+  {
+    token: '_clv',
+    delayMs: 150
+  },
+  {
+    token: '`',
+    delayMs: 200
+  },
+  {
+    token: ' and we need to wait for all parts to complete the inline code block.\n\n',
+    delayMs: 400
+  },
+  {
+    token: 'Another paragraph with more examples: ',
+    delayMs: 200
+  },
+  {
+    token: '`',
+    delayMs: 300
+  },
+  {
+    token: 'const',
+    delayMs: 150
+  },
+  {
+    token: ' result',
+    delayMs: 150
+  },
+  {
+    token: ' =',
+    delayMs: 100
+  },
+  {
+    token: ' await',
+    delayMs: 150
+  },
+  {
+    token: ' fetch',
+    delayMs: 150
+  },
+  {
+    token: '()',
+    delayMs: 100
+  },
+  {
+    token: '`',
+    delayMs: 300
+  },
+  {
+    token: ' shows how complex code can be streamed. Mixed with normal ',
+    delayMs: 300
+  },
+  {
+    token: '`simple`',
+    delayMs: 150
+  },
+  {
+    token: ' inline code that arrives complete.\n\n',
+    delayMs: 200
+  },
+  {
+    token: 'Final test case: ',
+    delayMs: 200
+  },
+  {
+    token: '`',
+    delayMs: 400
+  },
+  {
+    token: 'database',
+    delayMs: 200
+  },
+  {
+    token: '.query',
+    delayMs: 150
+  },
+  {
+    token: '("SELECT',
+    delayMs: 150
+  },
+  {
+    token: ' * FROM',
+    delayMs: 150
+  },
+  {
+    token: ' customers',
+    delayMs: 150
+  },
+  {
+    token: ' WHERE',
+    delayMs: 150
+  },
+  {
+    token: ' active',
+    delayMs: 150
+  },
+  {
+    token: ' = true")',
+    delayMs: 200
+  },
+  {
+    token: '`',
+    delayMs: 300
+  },
+  {
+    token: ' demonstrates SQL code streaming.',
+    delayMs: 200
+  },
+  {
+    token: 'HOLD',
+    delayMs: 50000
+  }
+];
+
+export const InlineCodeStreaming: Story = {
+  render: () => {
+    const { isStreamFinished, output } = useStreamTokenArray(brokenInlineCodeTokens);
+
+    return (
+      <div className="flex flex-col space-y-4">
+        <div className="text-lg font-bold">Testing Broken Inline Code Streaming</div>
+        <div className="mb-4 text-sm text-gray-600">
+          Watch how inline code renders when backticks and content are split across multiple stream
+          tokens
+        </div>
+        <div className="flex w-full space-x-4">
+          <div className="w-1/2">
+            <h3 className="mb-2 font-semibold">Animated Output</h3>
+            <div className="rounded border border-gray-300 p-4">
+              <AppMarkdownStreaming
+                content={output}
+                isStreamFinished={isStreamFinished}
+                animation="fadeIn"
+                animationDuration={500}
+                animationTimingFunction="ease-in-out"
+              />
+            </div>
+          </div>
+          <div className="w-1/2">
+            <h3 className="mb-2 font-semibold">Raw Streaming Content</h3>
+            <div className="max-h-[400px] overflow-y-auto rounded border border-gray-300 p-4">
+              <pre className="font-mono text-sm whitespace-pre-wrap">{output}</pre>
+            </div>
+            <div className="mt-2 text-sm text-gray-600">
+              Stream Status: {isStreamFinished ? '✅ Complete' : '⏳ Streaming...'}
+            </div>
+            <div className="mt-1 text-xs text-gray-500">
+              Current length: {output.length} characters
+            </div>
+          </div>
+        </div>
+      </div>
+    );
+  }
+};
diff --git a/apps/web/src/components/ui/streaming/AppMarkdownStreaming/LLMAnimatedMarkdown.tsx b/apps/web/src/components/ui/streaming/AppMarkdownStreaming/LLMAnimatedMarkdown.tsx
index f79023718..4a995255f 100644
--- a/apps/web/src/components/ui/streaming/AppMarkdownStreaming/LLMAnimatedMarkdown.tsx
+++ b/apps/web/src/components/ui/streaming/AppMarkdownStreaming/LLMAnimatedMarkdown.tsx
@@ -1,32 +1,51 @@
 import type { BlockMatch } from '@llm-ui/react';
 import AnimatedMarkdown from '../../typography/AnimatedMarkdown/AnimatedMarkdown';
-import React from 'react';
+import React, { useMemo } from 'react';
 import { useAppMarkdownStreaming } from './AppMarkdownStreaming';
+import { findPartialInlineCode } from './inlineCodeHelpers';
 
 type LLMAnimatedMarkdownProps = {
   blockMatch: BlockMatch;
 };
 
-export const LLMAnimatedMarkdown: React.FC<LLMAnimatedMarkdownProps> = ({ blockMatch }) => {
-  const markdown = blockMatch.output;
-  const {
-    animation,
-    stripFormatting,
-    isThrottleStreamingFinished,
-    animationDuration,
-    animationTimingFunction
-  } = useAppMarkdownStreaming();
+export const LLMAnimatedMarkdown: React.FC<LLMAnimatedMarkdownProps> = React.memo(
+  ({ blockMatch }) => {
+    const markdown = blockMatch.llmOutput;
+    const {
+      animation,
+      stripFormatting,
 
-  return (
-    <AnimatedMarkdown
-      content={markdown}
-      isStreamFinished={blockMatch.isComplete || isThrottleStreamingFinished}
-      animation={animation}
-      animationDuration={animationDuration}
-      animationTimingFunction={animationTimingFunction}
-      stripFormatting={stripFormatting}
-    />
-  );
-};
+      animationDuration,
+      isStreamFinished,
+      animationTimingFunction
+    } = useAppMarkdownStreaming();
+
+    const optimizedContent = useMemo(() => {
+      const partialMatch = findPartialInlineCode(markdown);
+
+      // If there's a partial inline code match, only show content up to the start of the partial match
+      // This naturally excludes the offending backtick without affecting complete inline code blocks
+      if (partialMatch) {
+        return markdown.slice(0, partialMatch.startIndex);
+      }
+
+      // No partial match, show all content as-is
+      return markdown;
+    }, [markdown]);
+
+    return (
+      <AnimatedMarkdown
+        content={optimizedContent}
+        isStreamFinished={isStreamFinished && blockMatch.isComplete}
+        animation={animation}
+        animationDuration={animationDuration}
+        animationTimingFunction={animationTimingFunction}
+        stripFormatting={stripFormatting}
+      />
+    );
+  }
+);
+
+LLMAnimatedMarkdown.displayName = 'LLMAnimatedMarkdown';
 
 export default LLMAnimatedMarkdown;
diff --git a/apps/web/src/components/ui/streaming/AppMarkdownStreaming/inlineCodeHelpers.test.ts b/apps/web/src/components/ui/streaming/AppMarkdownStreaming/inlineCodeHelpers.test.ts
new file mode 100644
index 000000000..8ad863c68
--- /dev/null
+++ b/apps/web/src/components/ui/streaming/AppMarkdownStreaming/inlineCodeHelpers.test.ts
@@ -0,0 +1,35 @@
+import { describe, it, expect } from 'vitest';
+import { findPartialInlineCode } from './inlineCodeHelpers';
+
+describe('findPartialInlineCode', () => {
+  it('should find partial inline code (unclosed backtick)', () => {
+    // Test case: Text with an unclosed backtick at the end
+    const text = 'This is some text with `unclosed code';
+    const result = findPartialInlineCode(text);
+
+    expect(result).not.toBeNull();
+    expect(result).toEqual({
+      startIndex: 23, // Position of the backtick
+      endIndex: 37, // End of the partial code
+      outputRaw: '`unclosed code'
+    });
+  });
+
+  it('should return null for complete inline code', () => {
+    // Test case: Text with properly closed inline code
+    const text = 'This is some text with `complete code` here';
+    const result = findPartialInlineCode(text);
+
+    // Should return null because the code block is complete (properly closed)
+    expect(result).toBeNull();
+  });
+
+  it('should return null when no inline code is present', () => {
+    // Test case: Text with no backticks at all
+    const text = 'This is just plain text without any code blocks';
+    const result = findPartialInlineCode(text);
+
+    // Should return null because there are no backticks
+    expect(result).toBeNull();
+  });
+});
diff --git a/apps/web/src/components/ui/streaming/AppMarkdownStreaming/inlineCodeHelpers.ts b/apps/web/src/components/ui/streaming/AppMarkdownStreaming/inlineCodeHelpers.ts
new file mode 100644
index 000000000..b981522b0
--- /dev/null
+++ b/apps/web/src/components/ui/streaming/AppMarkdownStreaming/inlineCodeHelpers.ts
@@ -0,0 +1,55 @@
+// Helper functions for inline code detection in streaming markdown
+
+import type { LLMOutputMatcher } from '@llm-ui/react';
+
+/**
+ * Finds complete inline code blocks (text between single backticks)
+ * @returns A function that finds complete inline code in the input
+ */
+export const findCompleteInlineCode = (): LLMOutputMatcher => {
+  return (input: string) => {
+    // Match inline code that is NOT part of a code block (```).
+    // Look for single backticks that are not preceded or followed by additional backticks
+    const regex = /(?<!`)`(?!``)[^`\n]+`(?!`)/;
+    const match = regex.exec(input);
+
+    if (match && match.index !== undefined) {
+      return {
+        startIndex: match.index,
+        endIndex: match.index + 1,
+        outputRaw: match[0]
+      };
+    }
+
+    return undefined;
+  };
+};
+
+/**
+ * Finds partial inline code blocks (unclosed inline code)
+ * @returns A function that finds partial inline code in the input
+ */
+export function findPartialInlineCode(
+  text: string
+): { startIndex: number; endIndex: number; outputRaw: string } | null {
+  // Find all single backticks (not part of code blocks)
+  const backticks: number[] = [];
+
+  for (let i = 0; i < text.length; i++) {
+    if (text[i] === '`' && text[i - 1] !== '`' && text[i + 1] !== '`') {
+      backticks.push(i);
+    }
+  }
+
+  // If odd number of backticks, the last one is unclosed
+  if (backticks.length % 2 === 1) {
+    const startIndex = backticks[backticks.length - 1];
+    return {
+      startIndex,
+      endIndex: text.length,
+      outputRaw: text.substring(startIndex)
+    };
+  }
+
+  return null;
+}
diff --git a/apps/web/src/components/ui/streaming/AppMarkdownStreaming/useMarkdownStreaming.ts b/apps/web/src/components/ui/streaming/AppMarkdownStreaming/useMarkdownStreaming.ts
index c3f526fac..d3b9e1eea 100644
--- a/apps/web/src/components/ui/streaming/AppMarkdownStreaming/useMarkdownStreaming.ts
+++ b/apps/web/src/components/ui/streaming/AppMarkdownStreaming/useMarkdownStreaming.ts
@@ -7,14 +7,29 @@ import { markdownLookBack } from '@llm-ui/markdown';
 const throttle = throttleBasic({
   // show output as soon as it arrives
   readAheadChars: 0,
-  // stay literally at the LLM’s pace
+  // stay literally at the LLM's pace
   targetBufferChars: 10,
   adjustPercentage: 0.4,
   frameLookBackMs: 10000,
-  // split that into 250 ms windows for smoothing
+  // split that into 250 ms windows for smoothing
   windowLookBackMs: 250
 });
 
+const blocks = [
+  // Handle code blocks (triple backticks)
+  {
+    component: CodeComponentStreaming,
+    findCompleteMatch: findCompleteCodeBlock(),
+    findPartialMatch: findPartialCodeBlock(),
+    lookBack: codeBlockLookBack()
+  }
+];
+
+const fallbackBlock = {
+  component: LLMAnimatedMarkdown,
+  lookBack: markdownLookBack()
+};
+
 export const useMarkdownStreaming = ({
   content,
   isStreamFinished
@@ -24,18 +39,8 @@ export const useMarkdownStreaming = ({
 }) => {
   return useLLMOutput({
     llmOutput: content,
-    fallbackBlock: {
-      component: LLMAnimatedMarkdown,
-      lookBack: markdownLookBack()
-    },
-    blocks: [
-      {
-        component: CodeComponentStreaming,
-        findCompleteMatch: findCompleteCodeBlock(),
-        findPartialMatch: findPartialCodeBlock(),
-        lookBack: codeBlockLookBack()
-      }
-    ],
+    fallbackBlock,
+    blocks,
     isStreamFinished,
     throttle
   });
diff --git a/apps/web/src/components/ui/typography/AnimatedMarkdown/AnimatedMarkdown.tsx b/apps/web/src/components/ui/typography/AnimatedMarkdown/AnimatedMarkdown.tsx
index e11ce56ad..e41ddfdd8 100644
--- a/apps/web/src/components/ui/typography/AnimatedMarkdown/AnimatedMarkdown.tsx
+++ b/apps/web/src/components/ui/typography/AnimatedMarkdown/AnimatedMarkdown.tsx
@@ -8,6 +8,7 @@ import { MarkdownAnimation } from './animation-helpers';
 import styles from './AnimatedMarkdown.module.css';
 import { cn } from '@/lib/classMerge';
 import './animations.css';
+import { useMount } from '../../../../hooks';
 
 export interface AnimatedMarkdownProps {
   className?: string;
@@ -28,13 +29,8 @@ const AnimatedMarkdown: React.FC<AnimatedMarkdownProps> = ({
   animationTimingFunction = 'ease-in-out',
   isStreamFinished = true,
   stripFormatting = false,
-
   className
 }) => {
-  const optimizedContent = useMemo(() => {
-    return content;
-  }, [content]);
-
   const { components } = useMarkdownComponents({
     animation,
     animationDuration,
@@ -50,7 +46,7 @@ const AnimatedMarkdown: React.FC<AnimatedMarkdownProps> = ({
         // remarkPlugins are used to extend or modify the Markdown parsing behavior.
         // Here, remarkGfm enables GitHub Flavored Markdown features (like tables, strikethrough, task lists).
         remarkPlugins={remarkPlugins}>
-        {optimizedContent}
+        {content}
       </ReactMarkdown>
     </div>
   );
diff --git a/apps/web/src/components/ui/typography/AnimatedMarkdown/MarkdownComponent.tsx b/apps/web/src/components/ui/typography/AnimatedMarkdown/MarkdownComponent.tsx
index 9ce2bc7bf..ced49fe63 100644
--- a/apps/web/src/components/ui/typography/AnimatedMarkdown/MarkdownComponent.tsx
+++ b/apps/web/src/components/ui/typography/AnimatedMarkdown/MarkdownComponent.tsx
@@ -5,6 +5,7 @@ import { cva } from 'class-variance-authority';
 import { StreamingMessageCode } from '../../streaming/StreamingMessageCode';
 import { cn } from '@/lib/classMerge';
 import { useAnimationContext, AnimationProvider } from './AnimationContext';
+import { useMount } from '../../../../hooks';
 
 type MarkdownComponentProps = {
   children: React.ReactNode;
diff --git a/apps/web/src/components/ui/typography/AnimatedMarkdown/index.ts b/apps/web/src/components/ui/typography/AnimatedMarkdown/index.ts
index fa3fa1a0b..c0930f466 100644
--- a/apps/web/src/components/ui/typography/AnimatedMarkdown/index.ts
+++ b/apps/web/src/components/ui/typography/AnimatedMarkdown/index.ts
@@ -1,2 +1 @@
 export { default as AnimatedMarkdown } from './AnimatedMarkdown';
-export { default as LLMAnimatedMarkdown } from '../AppMarkdownStreaming/LLMAnimatedMarkdown';
diff --git a/apps/web/src/components/ui/typography/AnimatedMarkdown/useMarkdownComponents.tsx b/apps/web/src/components/ui/typography/AnimatedMarkdown/useMarkdownComponents.tsx
index 99a8a4852..c35aa07e9 100644
--- a/apps/web/src/components/ui/typography/AnimatedMarkdown/useMarkdownComponents.tsx
+++ b/apps/web/src/components/ui/typography/AnimatedMarkdown/useMarkdownComponents.tsx
@@ -23,6 +23,7 @@ import {
   BreakComponent,
   CodeComponent
 } from './MarkdownComponent';
+import { useMount, useWhyDidYouUpdate } from '../../../../hooks';
 
 interface UseMarkdownComponentsProps {
   stripFormatting?: boolean;
@@ -139,8 +140,6 @@ export const useMarkdownComponents = ({
         </TableRowComponent>
       ),
 
-      // Components WITHOUT animations
-      // Components WITH animations (updated)
       ul: ({ children, className, style }) => (
         <UnorderedListComponent {...commonProps} className={className} style={style}>
           {children}