diff --git a/ml-algorithms/src/main/java/org/opensearch/ml/engine/algorithms/agent/MLFlowAgentRunner.java b/ml-algorithms/src/main/java/org/opensearch/ml/engine/algorithms/agent/MLFlowAgentRunner.java
index 7e79c98d45..ab03859271 100644
--- a/ml-algorithms/src/main/java/org/opensearch/ml/engine/algorithms/agent/MLFlowAgentRunner.java
+++ b/ml-algorithms/src/main/java/org/opensearch/ml/engine/algorithms/agent/MLFlowAgentRunner.java
@@ -106,6 +106,9 @@ public void run(MLAgent mlAgent, Map<String, String> params, ActionListener<Obje
                         ? previousToolSpec.getName() + ".output"
                         : previousToolSpec.getType() + ".output";
 
+                    String outputResponse = parseResponse(output);
+                    params.put(outputKey, escapeJson(outputResponse));
+
                     if (previousToolSpec.isIncludeOutputInAgentResponse() || finalI == toolSpecs.size()) {
                         if (output instanceof ModelTensorOutput) {
                             flowAgentOutput.addAll(((ModelTensorOutput) output).getMlModelOutputs().get(0).getMlModelTensors());
@@ -117,11 +120,9 @@ public void run(MLAgent mlAgent, Map<String, String> params, ActionListener<Obje
                             ModelTensor stepOutput = ModelTensor.builder().name(key).result(result).build();
                             flowAgentOutput.add(stepOutput);
                         }
-                    }
 
-                    String outputResponse = parseResponse(output);
-                    params.put(outputKey, escapeJson(outputResponse));
-                    additionalInfo.put(outputKey, outputResponse);
+                        additionalInfo.put(outputKey, outputResponse);
+                    }
 
                     if (finalI == toolSpecs.size()) {
                         updateMemory(additionalInfo, memorySpec, memoryId, parentInteractionId);
diff --git a/ml-algorithms/src/test/java/org/opensearch/ml/engine/algorithms/agent/MLFlowAgentRunnerTest.java b/ml-algorithms/src/test/java/org/opensearch/ml/engine/algorithms/agent/MLFlowAgentRunnerTest.java
index fc2185e160..9aaf76c2f4 100644
--- a/ml-algorithms/src/test/java/org/opensearch/ml/engine/algorithms/agent/MLFlowAgentRunnerTest.java
+++ b/ml-algorithms/src/test/java/org/opensearch/ml/engine/algorithms/agent/MLFlowAgentRunnerTest.java
@@ -113,6 +113,9 @@ public class MLFlowAgentRunnerTest {
     @Captor
     private ArgumentCaptor<StepListener<Object>> nextStepListenerCaptor;
 
+    @Captor
+    private ArgumentCaptor<Map<String, Object>> memoryMapCaptor;
+
     @Before
     @SuppressWarnings("unchecked")
     public void setup() {
@@ -154,9 +157,18 @@ private Answer generateToolTensorResponse() {
     public void testRunWithIncludeOutputNotSet() {
         final Map<String, String> params = new HashMap<>();
         params.put(MLAgentExecutor.MEMORY_ID, "memoryId");
+        params.put(MLAgentExecutor.PARENT_INTERACTION_ID, "interaction_id");
         MLToolSpec firstToolSpec = MLToolSpec.builder().name(FIRST_TOOL).type(FIRST_TOOL).build();
         MLToolSpec secondToolSpec = MLToolSpec.builder().name(SECOND_TOOL).type(SECOND_TOOL).build();
         MLMemorySpec mlMemorySpec = MLMemorySpec.builder().type("memoryType").build();
+        ConversationIndexMemory memory = mock(ConversationIndexMemory.class);
+        Mockito.doAnswer(invocation -> {
+            ActionListener<Object> listener = invocation.getArgument(1);
+            listener.onResponse(memory);
+            return null;
+        }).when(mockMemoryFactory).create(Mockito.anyString(), Mockito.any());
+        Mockito.when(memory.getMemoryManager()).thenReturn(memoryManager);
+
         final MLAgent mlAgent = MLAgent
             .builder()
             .name("TestAgent")
@@ -170,6 +182,11 @@ public void testRunWithIncludeOutputNotSet() {
         // Respond with last tool output
         assertEquals(SECOND_TOOL, agentOutput.get(0).getName());
         assertEquals(SECOND_TOOL_RESPONSE, agentOutput.get(0).getResult());
+
+        verify(memoryManager).updateInteraction(anyString(), memoryMapCaptor.capture(), any(ActionListener.class));
+        Map<String, Object> additionalInfo = (Map<String, Object>) memoryMapCaptor.getValue().get("additional_info");
+        assertEquals(1, additionalInfo.size());
+        assertNotNull(additionalInfo.get(SECOND_TOOL + ".output"));
     }
 
     @Test()
@@ -188,9 +205,17 @@ public void testRunWithNoToolSpec() {
     public void testRunWithIncludeOutputSet() {
         final Map<String, String> params = new HashMap<>();
         params.put(MLAgentExecutor.MEMORY_ID, "memoryId");
+        params.put(MLAgentExecutor.PARENT_INTERACTION_ID, "interaction_id");
         MLToolSpec firstToolSpec = MLToolSpec.builder().name(FIRST_TOOL).type(FIRST_TOOL).includeOutputInAgentResponse(true).build();
         MLToolSpec secondToolSpec = MLToolSpec.builder().name(SECOND_TOOL).type(SECOND_TOOL).includeOutputInAgentResponse(true).build();
         MLMemorySpec mlMemorySpec = MLMemorySpec.builder().type("memoryType").build();
+        ConversationIndexMemory memory = mock(ConversationIndexMemory.class);
+        Mockito.doAnswer(invocation -> {
+            ActionListener<Object> listener = invocation.getArgument(1);
+            listener.onResponse(memory);
+            return null;
+        }).when(mockMemoryFactory).create(Mockito.anyString(), Mockito.any());
+        Mockito.when(memory.getMemoryManager()).thenReturn(memoryManager);
         final MLAgent mlAgent = MLAgent
             .builder()
             .name("TestAgent")
@@ -206,6 +231,10 @@ public void testRunWithIncludeOutputSet() {
         assertEquals(SECOND_TOOL, agentOutput.get(1).getName());
         assertEquals(FIRST_TOOL_RESPONSE, agentOutput.get(0).getResult());
         assertEquals(SECOND_TOOL_RESPONSE, agentOutput.get(1).getResult());
+
+        verify(memoryManager).updateInteraction(anyString(), memoryMapCaptor.capture(), any(ActionListener.class));
+        Map<String, Object> additionalInfo = (Map<String, Object>) memoryMapCaptor.getValue().get("additional_info");
+        assertEquals(2, additionalInfo.size());
     }
 
     @Test