diff --git a/components/chat-message-display.tsx b/components/chat-message-display.tsx
index 56e720c..2a9eb3a 100644
--- a/components/chat-message-display.tsx
+++ b/components/chat-message-display.tsx
@@ -1,7 +1,7 @@
 "use client";
 
 import type React from "react";
-import { useRef, useEffect, useState } from "react";
+import { useRef, useEffect, useState, useCallback } from "react";
 import Image from "next/image";
 import { ScrollArea } from "@/components/ui/scroll-area";
 import ExamplePanel from "./chat-example-panel";
@@ -26,36 +26,11 @@ export function ChatMessageDisplay({
     const { chartXML, loadDiagram: onDisplayChart } = useDiagram();
     const messagesEndRef = useRef<HTMLDivElement>(null);
     const previousXML = useRef<string>("");
+    const processedToolCalls = useRef<Set<string>>(new Set());
     const [expandedTools, setExpandedTools] = useState<Record<string, boolean>>(
         {}
     );
-    useEffect(() => {
-        if (messagesEndRef.current) {
-            messagesEndRef.current.scrollIntoView({ behavior: "smooth" });
-        }
-    }, [messages]);
-
-    // Auto-collapse args when diagrams are generated
-    useEffect(() => {
-        messages.forEach((message) => {
-            if (message.parts) {
-                message.parts.forEach((part) => {
-                    if (
-                        part.type === "tool-invocation" &&
-                        part.toolInvocation.state === "result"
-                    ) {
-                        const callId = part.toolInvocation.toolCallId;
-                        setExpandedTools((prev) => ({
-                            ...prev,
-                            [callId]: false,
-                        }));
-                    }
-                });
-            }
-        });
-    }, [messages]);
-
-    function handleDisplayChart(xml: string) {
+    const handleDisplayChart = useCallback((xml: string) => {
         const currentXml = xml || "";
         const convertedXml = convertToLegalXml(currentXml);
         if (convertedXml !== previousXML.current) {
@@ -63,13 +38,52 @@ export function ChatMessageDisplay({
             const replacedXML = replaceNodes(chartXML, convertedXml);
             onDisplayChart(replacedXML);
         }
-    }
+    }, [chartXML, onDisplayChart]);
+
+    useEffect(() => {
+        if (messagesEndRef.current) {
+            messagesEndRef.current.scrollIntoView({ behavior: "smooth" });
+        }
+    }, [messages]);
+
+    // Handle tool invocations and update diagram when needed
+    useEffect(() => {
+        messages.forEach((message) => {
+            if (message.parts) {
+                message.parts.forEach((part) => {
+                    if (part.type === "tool-invocation") {
+                        const { toolCallId, state, args, toolName } = part.toolInvocation;
+                        
+                        // Auto-collapse args when diagrams are generated
+                        if (state === "result") {
+                            setExpandedTools((prev) => ({
+                                ...prev,
+                                [toolCallId]: false,
+                            }));
+                        }
+                        
+                        // Handle diagram updates for display_diagram tool
+                        if (toolName === "display_diagram" && args?.xml) {
+                            // For partial calls, always update to show streaming
+                            if (state === "partial-call") {
+                                handleDisplayChart(args.xml);
+                            }
+                            // For completed calls, only update if not processed yet
+                            else if (state === "result" && !processedToolCalls.current.has(toolCallId)) {
+                                handleDisplayChart(args.xml);
+                                processedToolCalls.current.add(toolCallId);
+                            }
+                        }
+                    }
+                });
+            }
+        });
+    }, [messages, handleDisplayChart]);
 
     const renderToolInvocation = (toolInvocation: any) => {
         const callId = toolInvocation.toolCallId;
         const { toolName, args, state } = toolInvocation;
         const isExpanded = expandedTools[callId] ?? true;
-        handleDisplayChart(args?.xml);
 
         const toggleExpanded = () => {
             setExpandedTools((prev) => ({