diff --git a/src/fast_agent/agents/mcp_agent.py b/src/fast_agent/agents/mcp_agent.py
index 91b03ebb..14e20bf3 100644
--- a/src/fast_agent/agents/mcp_agent.py
+++ b/src/fast_agent/agents/mcp_agent.py
@@ -260,32 +260,6 @@ async def __call__(
     ) -> str:
         return await self.send(message)
 
-    # async def send(
-    #     self,
-    #     message: Union[
-    #         str,
-    #         PromptMessage,
-    #         PromptMessageExtended,
-    #         Sequence[Union[str, PromptMessage, PromptMessageExtended]],
-    #     ],
-    #     request_params: RequestParams | None = None,
-    # ) -> str:
-    #     """
-    #     Send a message to the agent and get a response.
-
-    #     Args:
-    #         message: Message content in various formats:
-    #             - String: Converted to a user PromptMessageExtended
-    #             - PromptMessage: Converted to PromptMessageExtended
-    #             - PromptMessageExtended: Used directly
-    #             - request_params: Optional request parameters
-
-    #     Returns:
-    #         The agent's response as a string
-    #     """
-    #     response = await self.generate(message, request_params)
-    #     return response.last_text() or ""
-
     def _matches_pattern(self, name: str, pattern: str, server_name: str) -> bool:
         """
         Check if a name matches a pattern for a specific server.
@@ -712,37 +686,6 @@ async def apply_prompt_template(self, prompt_result: GetPromptResult, prompt_nam
         with self._tracer.start_as_current_span(f"Agent: '{self._name}' apply_prompt_template"):
             return await self._llm.apply_prompt_template(prompt_result, prompt_name)
 
-    # async def structured(
-    #     self,
-    #     messages: Union[
-    #         str,
-    #         PromptMessage,
-    #         PromptMessageExtended,
-    #         Sequence[Union[str, PromptMessage, PromptMessageExtended]],
-    #     ],
-    #     model: Type[ModelT],
-    #     request_params: RequestParams | None = None,
-    # ) -> Tuple[ModelT | None, PromptMessageExtended]:
-    #     """
-    #     Apply the prompt and return the result as a Pydantic model.
-    #     Normalizes input messages and delegates to the attached LLM.
-
-    #     Args:
-    #         messages: Message(s) in various formats:
-    #             - String: Converted to a user PromptMessageExtended
-    #             - PromptMessage: Converted to PromptMessageExtended
-    #             - PromptMessageExtended: Used directly
-    #             - List of any combination of the above
-    #         model: The Pydantic model class to parse the result into
-    #         request_params: Optional parameters to configure the LLM request
-
-    #     Returns:
-    #         An instance of the specified model, or None if coercion fails
-    #     """
-
-    #     with self._tracer.start_as_current_span(f"Agent: '{self._name}' structured"):
-    #         return await super().structured(messages, model, request_params)
-
     async def apply_prompt_messages(
         self, prompts: List[PromptMessageExtended], request_params: RequestParams | None = None
     ) -> str:
diff --git a/src/fast_agent/agents/tool_agent.py b/src/fast_agent/agents/tool_agent.py
index 9fb7d815..93c40069 100644
--- a/src/fast_agent/agents/tool_agent.py
+++ b/src/fast_agent/agents/tool_agent.py
@@ -96,7 +96,11 @@ async def generate_impl(
 
             if LlmStopReason.TOOL_USE == result.stop_reason:
                 tool_message = await self.run_tools(result)
+
+                # the error channel will be populated if the LLM call failed
                 error_channel_messages = (tool_message.channels or {}).get(FAST_AGENT_ERROR_CHANNEL)
+                fatal_tool_error = False
+
                 if error_channel_messages:
                     tool_result_contents = [
                         content
@@ -107,8 +111,16 @@ async def generate_impl(
                         if result.content is None:
                             result.content = []
                         result.content.extend(tool_result_contents)
-                    result.stop_reason = LlmStopReason.ERROR
+                        result.stop_reason = LlmStopReason.ERROR
+                    else:
+                        fatal_tool_error = not bool(tool_message.tool_results)
+
+                    if fatal_tool_error:
+                        break
+                elif not tool_message.tool_results:
+                    # No tool results returned at all – treat as unrecoverable.
                     break
+
                 if self.config.use_history:
                     messages = [tool_message]
                 else:
diff --git a/tests/e2e/smoke/base/test_e2e_smoke.py b/tests/e2e/smoke/base/test_e2e_smoke.py
index 86c69a15..544662eb 100644
--- a/tests/e2e/smoke/base/test_e2e_smoke.py
+++ b/tests/e2e/smoke/base/test_e2e_smoke.py
@@ -180,6 +180,35 @@ class WeatherForecast(BaseModel):
     summary: str = Field(..., description="Brief summary of the overall forecast")
 
 
+@pytest.mark.integration
+@pytest.mark.asyncio
+@pytest.mark.e2e
+@pytest.mark.parametrize(
+    "model_name",
+    ["haiku", "kimi"],
+)
+async def test_error_handling_e2e(fast_agent, model_name):
+    """Call a faulty tool and make sure the loop does as we expect."""
+    fast = fast_agent
+
+    # Define the agent
+    @fast.agent(
+        "agent",
+        instruction="SYSTEM PROMPT",
+        model=model_name,
+        servers=["test_server"],
+    )
+    async def agent_function():
+        async with fast.run() as agent:
+            await agent.agent.generate("fail please")
+
+            assert 4 == len(agent.agent.message_history)
+            # this makes sure that the user message has the tool result with the error
+            assert next(iter(agent.agent.message_history[-2].tool_results.values())).isError is True
+
+    await agent_function()
+
+
 @pytest.mark.integration
 @pytest.mark.asyncio
 @pytest.mark.e2e
diff --git a/tests/e2e/smoke/base/test_server.py b/tests/e2e/smoke/base/test_server.py
index 42c9672e..c4e03541 100644
--- a/tests/e2e/smoke/base/test_server.py
+++ b/tests/e2e/smoke/base/test_server.py
@@ -32,6 +32,11 @@ def shirt_colour() -> str:
     return "blue polka dots"
 
 
+@app.tool(name="fail_please", description="call when asked to fail")
+def fail_please() -> str:
+    raise ValueError("Intentional failure")
+
+
 if __name__ == "__main__":
     # Run the server using stdio transport
     app.run(transport="stdio")