diff --git a/backend/core/agentpress/response_processor.py b/backend/core/agentpress/response_processor.py
index c42d4891..aa960578 100644
--- a/backend/core/agentpress/response_processor.py
+++ b/backend/core/agentpress/response_processor.py
@@ -488,9 +488,9 @@ class ResponseProcessor:
                                 tool_index += 1
 
                 if finish_reason == "xml_tool_limit_reached":
-                    logger.info("XML tool call limit reached, continuing stream to capture usage data")
-                    self.trace.event(name="xml_tool_call_limit_reached_continuing_stream", level="DEFAULT", status_message=(f"XML tool call limit reached, continuing stream to capture usage data"))
-                    # Don't break - continue processing stream to capture final usage chunk
+                    logger.info("Stopping stream processing after loop due to XML tool call limit")
+                    self.trace.event(name="stopping_stream_processing_after_loop_due_to_xml_tool_call_limit", level="DEFAULT", status_message=(f"Stopping stream processing after loop due to XML tool call limit"))
+                    break
 
             logger.info(f"Stream complete. Total chunks: {chunk_count}")