diff --git a/package-lock.json b/package-lock.json
index d1cc66c..faec99f 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -12,6 +12,7 @@
         "ajv": "^8.12.0",
         "ajv-formats": "^2.1.1",
         "any-cloud-storage": "^1.0.3",
+        "handlebars": "^4.7.8",
         "js-yaml": "^4.1.0",
         "jsdom": "^24.0.0",
         "rimraf": "^5.0.5",
@@ -7289,6 +7290,26 @@
         "node": ">=14.0.0"
       }
     },
+    "node_modules/handlebars": {
+      "version": "4.7.8",
+      "resolved": "https://registry.npmjs.org/handlebars/-/handlebars-4.7.8.tgz",
+      "integrity": "sha512-vafaFqs8MZkRrSX7sFVUdo3ap/eNiLnb4IakshzvP56X5Nr1iGKAIqdX6tMlm6HcNRIkr6AxO5jFEoJzzpT8aQ==",
+      "dependencies": {
+        "minimist": "^1.2.5",
+        "neo-async": "^2.6.2",
+        "source-map": "^0.6.1",
+        "wordwrap": "^1.0.0"
+      },
+      "bin": {
+        "handlebars": "bin/handlebars"
+      },
+      "engines": {
+        "node": ">=0.4.7"
+      },
+      "optionalDependencies": {
+        "uglify-js": "^3.1.4"
+      }
+    },
     "node_modules/has-flag": {
       "version": "4.0.0",
       "resolved": "https://registry.npmjs.org/has-flag/-/has-flag-4.0.0.tgz",
@@ -8958,7 +8979,6 @@
       "version": "1.2.8",
       "resolved": "https://registry.npmjs.org/minimist/-/minimist-1.2.8.tgz",
       "integrity": "sha512-2yyAR8qBkN3YuheJanUpWC5U3bb5osDywNB8RzDVlDwDHbocAJveqqj1u8+SVD7jkWT4yvsHCpWqqWqAxb0zCA==",
-      "optional": true,
       "funding": {
         "url": "https://github.com/sponsors/ljharb"
       }
@@ -9033,6 +9053,11 @@
         "node": ">= 0.6"
       }
     },
+    "node_modules/neo-async": {
+      "version": "2.6.2",
+      "resolved": "https://registry.npmjs.org/neo-async/-/neo-async-2.6.2.tgz",
+      "integrity": "sha512-Yd3UES5mWCSqR+qNT93S3UoYUkqAZ9lLg8a7g9rimsWmYGK8cVToA4/sF3RrshdyV3sAGMXVUmpMYOw+dLpOuw=="
+    },
     "node_modules/node-domexception": {
       "version": "1.0.0",
       "resolved": "https://registry.npmjs.org/node-domexception/-/node-domexception-1.0.0.tgz",
@@ -10282,7 +10307,6 @@
       "version": "0.6.1",
       "resolved": "https://registry.npmjs.org/source-map/-/source-map-0.6.1.tgz",
       "integrity": "sha512-UjgapumWlbMhkBgzT7Ykc5YXUT46F0iKu8SGXq0bcwP5dz/h0Plj6enJqjz1Zbq2l5WaqYnrVbwWOWMyF3F47g==",
-      "dev": true,
       "engines": {
         "node": ">=0.10.0"
       }
@@ -10887,6 +10911,18 @@
         "node": ">=14.17"
       }
     },
+    "node_modules/uglify-js": {
+      "version": "3.17.4",
+      "resolved": "https://registry.npmjs.org/uglify-js/-/uglify-js-3.17.4.tgz",
+      "integrity": "sha512-T9q82TJI9e/C1TAxYvfb16xO120tMVFZrGA3f9/P4424DNu6ypK103y0GPFVa17yotwSyZW5iYXgjYHkGrJW/g==",
+      "optional": true,
+      "bin": {
+        "uglifyjs": "bin/uglifyjs"
+      },
+      "engines": {
+        "node": ">=0.8.0"
+      }
+    },
     "node_modules/undici": {
       "version": "5.26.5",
       "resolved": "https://registry.npmjs.org/undici/-/undici-5.26.5.tgz",
@@ -11183,6 +11219,11 @@
         "url": "https://github.com/sponsors/ljharb"
       }
     },
+    "node_modules/wordwrap": {
+      "version": "1.0.0",
+      "resolved": "https://registry.npmjs.org/wordwrap/-/wordwrap-1.0.0.tgz",
+      "integrity": "sha512-gvVzJFlPycKc5dZN4yPkP8w7Dc37BtP1yczEneOb4uq34pXZcvrtRTmWV8W+Ume+XCxKgbjM+nevkyFPMybd4Q=="
+    },
     "node_modules/wrap-ansi": {
       "version": "7.0.0",
       "resolved": "https://registry.npmjs.org/wrap-ansi/-/wrap-ansi-7.0.0.tgz",
diff --git a/package.json b/package.json
index 04d0def..c3a07e3 100644
--- a/package.json
+++ b/package.json
@@ -51,6 +51,7 @@
     "ajv": "^8.12.0",
     "ajv-formats": "^2.1.1",
     "any-cloud-storage": "^1.0.3",
+    "handlebars": "^4.7.8",
     "js-yaml": "^4.1.0",
     "jsdom": "^24.0.0",
     "rimraf": "^5.0.5",
diff --git a/src/tools/impl/read_file.ts b/src/tools/impl/read_file.ts
index 5c173a8..0102fb1 100644
--- a/src/tools/impl/read_file.ts
+++ b/src/tools/impl/read_file.ts
@@ -17,7 +17,7 @@ const read_file = async (context: ToolContext, filename: string, encoding?: Buff
 
   context.onProgress({
     type: 'inlineContentReference',
-    title: `Agent called \`read_file('${filePath}')\``,
+    title: `Agent called \`read_file('${filePath}')\`\n\n`,
     inlineReference: filePath,
   });
 
diff --git a/src/tools/impl/write_file.ts b/src/tools/impl/write_file.ts
index 357c1b7..c3b1e7d 100644
--- a/src/tools/impl/write_file.ts
+++ b/src/tools/impl/write_file.ts
@@ -15,7 +15,11 @@ const write_file = async (context: ToolContext, filename: string, contents: stri
 
   await fileStorage.saveTextFile(filePath, contents);
 
-  context.onProgress({ type: 'inlineContentReference', title: filename, inlineReference: filePath });
+  context.onProgress({
+    type: 'inlineContentReference',
+    title: `write_file(${filename})\n\n`,
+    inlineReference: filePath,
+  });
 };
 
 ToolManager.registerTool(write_file, {
diff --git a/src/utils/promptUtils.ts b/src/utils/promptUtils.ts
index d031eaf..04ea6cc 100644
--- a/src/utils/promptUtils.ts
+++ b/src/utils/promptUtils.ts
@@ -1,6 +1,7 @@
 import fs from 'fs';
 import path from 'path';
 import { AgentContext, logger } from '..';
+import Handlebars, { compile } from 'handlebars';
 
 export const getPromptFromFile = async (filePath: string, context: AgentContext): Promise<string | undefined> => {
   const absolutePath = path.resolve(filePath);
@@ -13,12 +14,8 @@ export const getPromptFromFile = async (filePath: string, context: AgentContext)
   return replacePlaceholders(template, context);
 };
 
-function replacePlaceholders(template: string, context: AgentContext): string {
-  return template.replace(/{([^}]+)}/g, (_match, key: string) => {
-    key = key.trim();
-
-    const value = key === 'directory_tree' ? context.getDirectoryTree() : context.routing[key];
-
-    return value !== undefined ? String(value) : '';
-  });
+function replacePlaceholders(templateStr: string, context: AgentContext): string {
+  Handlebars.registerHelper('directory_tree', context.getDirectoryTree);
+  const template = compile(templateStr);
+  return template(context);
 }