diff --git a/src/pages/tenant/PromptExecute.tsx b/src/pages/tenant/PromptExecute.tsx
index 45c3a10..b769145 100644
--- a/src/pages/tenant/PromptExecute.tsx
+++ b/src/pages/tenant/PromptExecute.tsx
@@ -1,4 +1,4 @@
-import { useEffect, useMemo, useState, type ReactElement } from "react";
+import { useEffect, useMemo, useState, useRef, type ReactElement } from "react";
 import { useNavigate, useParams } from "react-router-dom";
 import { Layout } from "@/components/layout/Layout";
 import {
@@ -49,6 +49,15 @@ const PromptExecute = (): ReactElement => {
   const [result, setResult] = useState<AICompletion | null>(null);
   const [error, setError] = useState<string | null>(null);
 
+  // State & Refs for smooth typing effect
+  const [displayedContent, setDisplayedContent] = useState("");
+  const typingTimerRef = useRef<any>(null);
+  const targetContentRef = useRef("");
+  const displayedContentRef = useRef("");
+  const finalResultRef = useRef<AICompletion | null>(null);
+  const isStreamDoneRef = useRef(false);
+  const scrollContainerRef = useRef<HTMLDivElement | null>(null);
+
   const loadData = async (): Promise<void> => {
     if (!id) return;
     setIsLoading(true);
@@ -108,6 +117,62 @@ const PromptExecute = (): ReactElement => {
     setVariables((prev) => ({ ...prev, [name]: value }));
   };
 
+  // Clean up typing timers on unmount
+  useEffect(() => {
+    return () => {
+      if (typingTimerRef.current) {
+        clearInterval(typingTimerRef.current);
+      }
+    };
+  }, []);
+
+  // Auto scroll as text is typed in real-time
+  useEffect(() => {
+    if (scrollContainerRef.current) {
+      scrollContainerRef.current.scrollTop = scrollContainerRef.current.scrollHeight;
+    }
+  }, [displayedContent]);
+
+  const startTypingEffect = () => {
+    if (typingTimerRef.current) return;
+
+    const tick = () => {
+      const currentLen = displayedContentRef.current.length;
+      const target = targetContentRef.current;
+      const targetLen = target.length;
+
+      if (currentLen >= targetLen) {
+        if (isStreamDoneRef.current) {
+          // Stream completed and we have caught up typing all text!
+          if (finalResultRef.current) {
+            setResult(finalResultRef.current);
+          }
+          setIsExecuting(false);
+          showToast.success("Prompt template executed successfully!");
+
+          if (typingTimerRef.current) {
+            clearInterval(typingTimerRef.current);
+            typingTimerRef.current = null;
+          }
+        }
+        return;
+      }
+
+      // Smart speed: adjust speed based on how far back we are
+      const lag = targetLen - currentLen;
+      let charsToType = 1;
+      if (lag > 100) charsToType = 5;
+      else if (lag > 50) charsToType = 3;
+      else if (lag > 20) charsToType = 2;
+
+      const nextText = target.slice(0, currentLen + charsToType);
+      displayedContentRef.current = nextText;
+      setDisplayedContent(nextText);
+    };
+
+    typingTimerRef.current = setInterval(tick, 15);
+  };
+
   const handleExecute = async (): Promise<void> => {
     if (!prompt || !id) return;
 
@@ -121,29 +186,59 @@ const PromptExecute = (): ReactElement => {
       return;
     }
 
+    // Reset typing loop variables & refs
+    if (typingTimerRef.current) {
+      clearInterval(typingTimerRef.current);
+      typingTimerRef.current = null;
+    }
+    setDisplayedContent("");
+    displayedContentRef.current = "";
+    targetContentRef.current = "";
+    finalResultRef.current = null;
+    isStreamDoneRef.current = false;
+
     setIsExecuting(true);
-    setResult(null);
+    setResult({
+      id: "streaming",
+      provider: provider || prompt.defaultParameters?.provider || "AI",
+      model: model || prompt.defaultParameters?.model || "Model",
+      content: "",
+      created_at: new Date().toISOString(),
+    });
     setError(null);
 
-    try {
-      const payload = {
-        variables: variables,
-        provider: provider || undefined,
-        model: model || undefined,
-        temperature: temperature,
-        max_tokens: maxTokens,
-      };
+    const payload = {
+      variables: variables,
+      provider: provider || undefined,
+      model: model || undefined,
+      temperature: temperature,
+      max_tokens: maxTokens,
+    };
 
-      const response = await aiService.executePrompt(id, payload);
-      setResult(response);
-      showToast.success("Prompt template executed successfully!");
-    } catch (err: any) {
-      const errMsg = err?.response?.data?.error?.message || err.message || "Failed to execute prompt";
-      setError(errMsg);
-      showToast.error(errMsg);
-    } finally {
-      setIsExecuting(false);
-    }
+    await aiService.executePromptStream(
+      id,
+      payload,
+      (chunk) => {
+        targetContentRef.current += chunk;
+        startTypingEffect();
+      },
+      (finalData) => {
+        finalResultRef.current = finalData;
+        isStreamDoneRef.current = true;
+        // Trigger catching up immediately
+        startTypingEffect();
+      },
+      (errMessage) => {
+        if (typingTimerRef.current) {
+          clearInterval(typingTimerRef.current);
+          typingTimerRef.current = null;
+        }
+        setError(errMessage);
+        setResult(null);
+        setIsExecuting(false);
+        showToast.error(errMessage);
+      }
+    );
   };
 
   if (isLoading) {
@@ -256,22 +351,34 @@ const PromptExecute = (): ReactElement => {
                       <Cpu className="w-3.5 h-3.5 mr-1.5 inline" />
                       {result.provider} • {result.model}
                     </StatusBadge>
-                    <StatusBadge variant="success">
-                      <Clock className="w-3.5 h-3.5 mr-1.5 inline" />
-                      {result.latency_ms} ms
-                    </StatusBadge>
-                    <StatusBadge variant="success">
-                      <DollarSign className="w-3.5 h-3.5 mr-1.5 inline" />
-                      USD {Number(result.cost ?? 0).toFixed(6)}
-                    </StatusBadge>
-                    <StatusBadge variant="process">
-                      <Activity className="w-3.5 h-3.5 mr-1.5 inline" />
-                      {result.usage?.total_tokens ?? 0} tokens
-                    </StatusBadge>
+                    {result.id === "streaming" ? (
+                      <span className="inline-flex items-center px-2.5 py-0.5 rounded-full text-xs font-semibold bg-[#E6FFFB] text-[#08979C] border border-[#B5F5EC] animate-pulse">
+                        <span className="w-2 h-2 rounded-full bg-[#13C2C2] mr-1.5 animate-ping inline-block" />
+                        Streaming response...
+                      </span>
+                    ) : (
+                      <>
+                        <StatusBadge variant="success">
+                          <Clock className="w-3.5 h-3.5 mr-1.5 inline" />
+                          {result.latency_ms} ms
+                        </StatusBadge>
+                        <StatusBadge variant="success">
+                          <DollarSign className="w-3.5 h-3.5 mr-1.5 inline" />
+                          USD {Number(result.cost ?? 0).toFixed(6)}
+                        </StatusBadge>
+                        <StatusBadge variant="process">
+                          <Activity className="w-3.5 h-3.5 mr-1.5 inline" />
+                          {result.usage?.total_tokens ?? 0} tokens
+                        </StatusBadge>
+                      </>
+                    )}
                   </div>
 
-                  <div className="bg-[#f8fafc] border border-gray-200 rounded-lg p-5 max-h-[480px] overflow-y-auto leading-relaxed shadow-inner font-sans text-gray-800">
-                    <MarkdownViewer content={result.content || ""} />
+                  <div 
+                    ref={scrollContainerRef}
+                    className="bg-[#f8fafc] border border-gray-200 rounded-lg p-5 max-h-[480px] overflow-y-auto leading-relaxed shadow-inner font-sans text-gray-800"
+                  >
+                    <MarkdownViewer content={result.id === "streaming" ? displayedContent : (result.content || "")} />
                   </div>
                 </div>
               )}
diff --git a/src/services/ai-service.ts b/src/services/ai-service.ts
index 56b8c86..5cc8169 100644
--- a/src/services/ai-service.ts
+++ b/src/services/ai-service.ts
@@ -251,6 +251,79 @@ class AIService {
     return unwrap<AICompletion>(response);
   }
 
+  async executePromptStream(
+    id: string,
+    payload: { variables?: Record<string, unknown>; provider?: string; model?: string; temperature?: number; max_tokens?: number },
+    onChunk: (chunk: string) => void,
+    onDone: (result: AICompletion) => void,
+    onError: (error: string) => void
+  ): Promise<void> {
+    try {
+      const store = (window as any).__REDUX_STORE__;
+      const token = store ? store.getState()?.auth?.accessToken : null;
+
+      const headers: Record<string, string> = {
+        'Content-Type': 'application/json',
+      };
+      if (token) {
+        headers['Authorization'] = `Bearer ${token}`;
+      }
+
+      const baseURL = apiClient.defaults.baseURL || import.meta.env.VITE_API_BASE_URL || 'http://localhost:3000/api/v1';
+      const response = await fetch(`${baseURL}/ai/prompts/${id}/execute`, {
+        method: 'POST',
+        headers,
+        body: JSON.stringify({ ...payload, stream: true }),
+      });
+
+      if (!response.ok) {
+        const errorData = await response.json().catch(() => ({}));
+        throw new Error(errorData?.error?.message || `Execution failed with status ${response.status}`);
+      }
+
+      if (!response.body) {
+        throw new Error("Response body is empty");
+      }
+
+      const reader = response.body.getReader();
+      const decoder = new TextDecoder();
+      let buffer = "";
+
+      while (true) {
+        const { value, done } = await reader.read();
+        if (done) break;
+
+        buffer += decoder.decode(value, { stream: true });
+        const lines = buffer.split("\n");
+        buffer = lines.pop() || ""; // Keep the last incomplete line in buffer
+
+        for (const line of lines) {
+          const cleanLine = line.trim();
+          if (!cleanLine.startsWith("data:")) continue;
+
+          const jsonStr = cleanLine.replace(/^data:\s*/, "");
+          try {
+            const data = JSON.parse(jsonStr);
+            if (data.error) {
+              throw new Error(data.error);
+            }
+            if (data.content) {
+              onChunk(data.content);
+            }
+            if (data.done) {
+              onDone(data.metadata);
+            }
+          } catch (e: any) {
+            console.error("Error parsing stream chunk:", e);
+            if (e.message) throw e;
+          }
+        }
+      }
+    } catch (err: any) {
+      onError(err.message || "Failed to execute prompt stream");
+    }
+  }
+
   async testPrompt(
     id: string,
     payload: { variables?: Record<string, unknown>; provider?: string; model?: string; temperature?: number; max_tokens?: number },