diff --git a/studio/backend/core/inference/llama_cpp.py b/studio/backend/core/inference/llama_cpp.py
index c9ab7eb83b..582e42165d 100644
--- a/studio/backend/core/inference/llama_cpp.py
+++ b/studio/backend/core/inference/llama_cpp.py
@@ -52,10 +52,12 @@ from core.inference.tool_call_parser import (
     _strip_gemma_wrapperless_calls,
     _strip_glm_calls,
     _strip_mistral_closed_calls,
+    _strip_trailing_orphan_close_run,
     TOOL_XML_SIGNALS as _SHARED_TOOL_XML_SIGNALS,
     RAG_MAX_SEARCHES_PER_TURN,
     RAG_SEARCH_CAP_NUDGE,
     parse_tool_calls_from_text as _shared_parse_tool_calls_from_text,
+    sanitize_control_chars as _sanitize_control_chars,
     strip_leading_bare_json_call,
     strip_llama3_leading_sentinels,
     strip_tool_markup as _shared_strip_tool_markup,
@@ -9428,6 +9430,9 @@ class LlamaCppBackend:
             )
 
         def _strip_tool_markup_streaming(text: str, *, force: bool = False) -> str:
+            # Scrub U+FFFD / control chars first, so a mangled opener cannot leave its close
+            # unmatched and byte-fallback garbage never leaks; mirrors strip_tool_markup.
+            text = _sanitize_control_chars(text)
             if not (auto_heal_tool_calls or force):
                 return text
 
@@ -9448,6 +9453,9 @@ class LlamaCppBackend:
                 for pat in pats:
                     seg = pat.sub("", seg)
                 if is_last:
+                    # Trailing orphan closes (drained/U+FFFD-mangled opener); orphan-strip before
+                    # rehearsal-tail to match strip_tool_markup(final=True).
+                    seg = _strip_trailing_orphan_close_run(seg)
                     seg = apply_tool_strip_patterns(
                         seg, [_REHEARSAL_TAIL_STRIP_RE], enabled_tool_names = _enabled_names_gate
                     )
diff --git a/studio/backend/core/inference/safetensors_agentic.py b/studio/backend/core/inference/safetensors_agentic.py
index 40731de57b..a0ad99db46 100644
--- a/studio/backend/core/inference/safetensors_agentic.py
+++ b/studio/backend/core/inference/safetensors_agentic.py
@@ -33,6 +33,7 @@ from core.inference.tool_call_parser import (
     _strip_glm_calls,
     _strip_mistral_closed_calls,
     _strip_mistral_reasoning,
+    _strip_trailing_orphan_close_run,
     BUDGET_EXHAUSTED_NUDGE,
     MAX_ACT_REPROMPTS,
     RAG_MAX_SEARCHES_PER_TURN,
@@ -41,6 +42,7 @@ from core.inference.tool_call_parser import (
     is_short_intent_without_action,
     parse_tool_calls_from_text,
     reprompt_to_act_message,
+    sanitize_control_chars,
     strip_leading_bare_json_call,
     strip_llama3_leading_sentinels,
     strip_tool_markup,
@@ -255,6 +257,9 @@ def strip_tool_markup_streaming(
     not be deleted, else the cumulative text shrinks then regrows). ``enabled_tool_names``
     keeps an inactive-name ``foo[ARGS]{..}`` / ``call:NAME{..}`` example visible (it is prose,
     not a call), matching the parse / detection active-tool gate."""
+    # Scrub U+FFFD / control chars first, so a mangled opener cannot leave its close unmatched
+    # and byte-fallback garbage never leaks into streamed display; mirrors strip_tool_markup.
+    text = sanitize_control_chars(text)
     if not (auto_heal_tool_calls or tool_protocol_active):
         return text
 
@@ -278,6 +283,9 @@ def strip_tool_markup_streaming(
         for pat in pats:
             seg = pat.sub("", seg)
         if is_last:
+            # Trailing orphan closes (drained/U+FFFD-mangled opener); orphan-strip before
+            # rehearsal-tail to match strip_tool_markup(final=True).
+            seg = _strip_trailing_orphan_close_run(seg)
             seg = apply_tool_strip_patterns(
                 seg, [_REHEARSAL_TAIL_STRIP_RE], enabled_tool_names = enabled_tool_names
             )
diff --git a/studio/backend/core/inference/tool_call_parser.py b/studio/backend/core/inference/tool_call_parser.py
index 9b6b0a7773..c2e7117b79 100644
--- a/studio/backend/core/inference/tool_call_parser.py
+++ b/studio/backend/core/inference/tool_call_parser.py
@@ -33,6 +33,19 @@ from typing import Any, Optional
 from core import tool_healing as _tool_healing
 
 
+# C0 (keep tab/newline/return/ESC), C1, and U+FFFD: never valid in chat/tool output. MTP/
+# speculative GGUF byte-fallback surfaces as U+FFFD (ggml-org/llama.cpp#25618). Same class as
+# tools._BINARY_CHAR_RE.
+_DISPLAY_CONTROL_CHAR_RE = re.compile("[\x00-\x08\x0b\x0c\x0e-\x1a\x1c-\x1f\x7f-\x9f�]")
+
+
+def sanitize_control_chars(text: str) -> str:
+    """Drop control chars and U+FFFD from ``text``, keeping ``\\t`` ``\\n`` ``\\r`` and ESC."""
+    if not text:
+        return text
+    return _DISPLAY_CONTROL_CHAR_RE.sub("", text)
+
+
 # Flip the streaming buffer STREAMING->DRAINING so partial markup never leaks.
 TOOL_XML_SIGNALS = (
     "<tool_call>",
@@ -118,8 +131,35 @@ _TOOL_ALL_PATS = _TOOL_CLOSED_PATS + [
         re.DOTALL,
     ),
     # Gemma wrapper-less ``call:NAME{...}`` is handled by ``_strip_gemma_wrapperless_calls`` (enabled-name gate).
+    # Trailing orphan-close runs are handled by _strip_trailing_orphan_close_run.
 ]
 
+_ORPHAN_CLOSE_TOKENS = ("</tool_call>", "</parameter>", "</function>", "</param>", "<tool_call|>")
+_ORPHAN_SENTINELS = ("</tool_call>", "<tool_call|>")
+
+
+def _strip_trailing_orphan_close_run(text: str) -> str:
+    """Strip a trailing whitespace-separated run of tool close tags, but only when it
+    carries a </tool_call> or <tool_call|> sentinel (a drained/U+FFFD-mangled opener leaves
+    the close to leak); a lone </function> or </parameter> is kept as likely code/XML.
+    Linear scan, so no regex backtracking."""
+    i = len(text)
+    while i > 0 and text[i - 1].isspace():
+        i -= 1
+    run_start = i
+    has_sentinel = False
+    while True:
+        matched = next((t for t in _ORPHAN_CLOSE_TOKENS if text.endswith(t, 0, i)), None)
+        if matched is None:
+            break
+        if matched in _ORPHAN_SENTINELS:
+            has_sentinel = True
+        i -= len(matched)
+        run_start = i
+        while i > 0 and text[i - 1].isspace():
+            i -= 1
+    return text[:run_start] if has_sentinel else text
+
 
 TOOL_ERROR_PREFIXES = (
     "Error",
@@ -282,6 +322,23 @@ _KIMI_ARG_BEGIN = "<|tool_call_argument_begin|>"
 _KIMI_CALL_END = "<|tool_call_end|>"
 _KIMI_ID_RE = re.compile(r"^(?:functions\.)?([\w\.\-]+)(?::(\d+))?$")
 
+# Kimi and DeepSeek end-of-turn closers are back-to-back special tokens; a drained/U+FFFD-
+# mangled opener leaves them to leak as a trailing orphan. Never legit prose, so they join the
+# ``<tool_call|>``-style sentinel set. Extended here (not the tuple defs above) since these
+# consts are defined later.
+_ORPHAN_CLOSE_TOKENS = _ORPHAN_CLOSE_TOKENS + (
+    _KIMI_CALL_END,
+    _KIMI_SECTION_END,
+    _DEEPSEEK_CALL_END,
+    _DEEPSEEK_END,
+)
+_ORPHAN_SENTINELS = _ORPHAN_SENTINELS + (
+    _KIMI_CALL_END,
+    _KIMI_SECTION_END,
+    _DEEPSEEK_CALL_END,
+    _DEEPSEEK_END,
+)
+
 # Gemma 4: ``<|tool_call>call:NAME{...}<tool_call|>``, ``<|"|>`` wraps strings.
 _GEMMA_TC_RE = re.compile(r"<\|tool_call>\s*call\s*:\s*([\w\.\-]+)\s*\{")
 _GEMMA_STR_BEGIN = '<|"|>'
@@ -618,6 +675,8 @@ def strip_tool_markup(
     prose is kept (mirrors the parser gate): the bare reasoning-rehearsal ``name[ARGS]{...}``
     and the markerless Gemma ``call:NAME{...}`` strip. ``None`` strips every closed call.
     """
+    # Scrub U+FFFD / control chars first, so a mangled opener cannot leave its close unmatched.
+    text = sanitize_control_chars(text)
     if final:
         # Drop a leading Magistral ``[THINK]...[/THINK]`` at end-of-turn; its bracket
         # form is not the ``<think>`` the reasoning channel renders.
@@ -643,6 +702,8 @@ def strip_tool_markup(
         for pat in pats:
             seg = pat.sub("", seg)
         if seg_final:
+            # Trailing orphan closes whose opener was drained or U+FFFD-mangled upstream.
+            seg = _strip_trailing_orphan_close_run(seg)
             # Drop a trailing partial bare rehearsal (``name[ARGS]`` with a truncated or absent
             # body) the balanced scan cannot close; gated so prose ``foo[ARGS] ...`` survives.
             seg = _tool_healing.apply_tool_strip_patterns(
diff --git a/studio/backend/core/inference/tool_loop_controller.py b/studio/backend/core/inference/tool_loop_controller.py
index 61643b5795..44232497fd 100644
--- a/studio/backend/core/inference/tool_loop_controller.py
+++ b/studio/backend/core/inference/tool_loop_controller.py
@@ -17,7 +17,11 @@ from dataclasses import dataclass, field
 from typing import Any, Literal, Mapping, Sequence
 from urllib.parse import urlparse
 
-from core.inference.tool_call_parser import TOOL_ERROR_NUDGE, TOOL_ERROR_PREFIXES
+from core.inference.tool_call_parser import (
+    TOOL_ERROR_NUDGE,
+    TOOL_ERROR_PREFIXES,
+    sanitize_control_chars,
+)
 
 
 _CANONICAL_HEAL_ARG = {
@@ -403,6 +407,9 @@ class ToolLoopController:
     def record_result(self, decision: ToolCallDecision, result: Any) -> ToolCallCompletion:
         """Record a real tool execution and return model/frontend payload helpers."""
         result_text = result if isinstance(result, str) else str(result)
+        # Scrub garbage a fetch/subprocess can leave, so it neither shows on the tool card
+        # nor poisons the model's next prompt.
+        result_text = sanitize_control_chars(result_text)
         failed = is_tool_error(result_text)
         self._history.append(
             _ToolCallRecord(
diff --git a/studio/backend/tests/test_mtp_tool_markup_leak.py b/studio/backend/tests/test_mtp_tool_markup_leak.py
new file mode 100644
index 0000000000..281583ea5a
--- /dev/null
+++ b/studio/backend/tests/test_mtp_tool_markup_leak.py
@@ -0,0 +1,210 @@
+# SPDX-License-Identifier: AGPL-3.0-only
+# Copyright 2026-present the Unsloth AI Inc. team. All rights reserved. See /studio/LICENSE.AGPL-3.0
+
+"""Regression tests for the MTP GGUF tool-call garbage bug (issue #7084).
+
+On an MTP GGUF model, speculative decoding on a quantized target
+(ggml-org/llama.cpp#25618) emits byte-fallback garbage that llama-server forwards as
+U+FFFD plus an orphaned ``</tool_call>`` whose opener was drained/``�``-mangled;
+``strip_tool_markup`` had no arm for a bare orphan close, so the reporter saw
+``8��� </binary data> </tool_call>`` in chat.
+
+The scrub is centralized at the tool-call chokepoints, so these tests pin only those:
+
+  1. ``strip_tool_markup`` (finalized answer): scrubs U+FFFD / control chars and removes a
+     trailing orphan-close run, while keeping well-formed stripping and mid-prose literals.
+  2. ``strip_tool_markup_streaming`` (streaming display): the same scrub at the streaming
+     entry, so the live display agrees with the finalized answer.
+  3. ``sanitize_control_chars``: drops garbage but keeps ``\t \n \r`` / ESC.
+  4. ``ToolLoopController.record_result``: scrubs a tool result before the model/card.
+"""
+
+import pytest
+
+from core.inference.safetensors_agentic import strip_tool_markup_streaming
+from core.inference.tool_call_parser import sanitize_control_chars, strip_tool_markup
+from core.inference.tool_loop_controller import ToolCallDecision, ToolLoopController
+
+
+# -- sanitize_control_chars ------------------------------------------
+
+
+def test_sanitize_drops_replacement_and_control_chars():
+    assert sanitize_control_chars("8��� ok") == "8 ok"
+    assert sanitize_control_chars("a\x00b\x7fc\x9fd") == "abcd"
+
+
+def test_sanitize_keeps_tab_newline_cr_and_esc():
+    # ESC (\x1b) is preserved so terminal ANSI in a tool result survives.
+    assert sanitize_control_chars("a\tb\nc\r\n\x1b[0m") == "a\tb\nc\r\n\x1b[0m"
+
+
+def test_sanitize_noop_on_clean_text():
+    s = "Perfectly normal answer with a supplementary-plane char \U00020000 and kanji 美味しい."
+    assert sanitize_control_chars(s) == s
+
+
+# -- strip_tool_markup (finalized answer): the reporter's exact garbage --
+
+
+def test_reporter_garbage_is_cleaned():
+    # Exact string from issue #7084; before the fix both the U+FFFD and the orphan
+    # </tool_call> leaked.
+    out = strip_tool_markup("8��� </binary data> </tool_call>", final = True)
+    assert "�" not in out
+    assert "</tool_call>" not in out
+    # </binary data> is model-hallucinated prose, not a Studio token, so it is left as-is.
+    assert out == "8 </binary data>"
+
+
+@pytest.mark.parametrize(
+    "text,expected",
+    [
+        ("Here is the answer.</tool_call>", "Here is the answer."),
+        ("x<tool_call|>", "x"),
+        ("answer</function>\n</tool_call>", "answer"),  # nested leak run ending in </tool_call>
+        ("Here is the answer.</tool_call>\n", "Here is the answer."),  # trailing newline
+        ("8��� </tool_call>\n", "8"),  # reporter's garbage + trailing newline
+    ],
+)
+def test_trailing_orphan_closes_are_stripped_at_final(text, expected):
+    assert strip_tool_markup(text, final = True) == expected
+
+
+@pytest.mark.parametrize(
+    "text",
+    [
+        "Done.</function>",  # lone close, no </tool_call> sentinel
+        "value</parameter>",
+        "The XML closing tag is </function>",  # a code/XML answer ending on a literal
+        "In XML you write <parameter>x</parameter> inside a tag.",  # mid-prose literal
+    ],
+)
+def test_trailing_literal_close_without_tool_call_survives(text):
+    # A trailing </function> / </parameter> with no </tool_call> sentinel reads as a
+    # code/XML literal, not a leak, so it survives (a real leak carries </tool_call>).
+    assert strip_tool_markup(text, final = True) == text
+
+
+def test_wellformed_call_still_stripped():
+    text = (
+        "Prefix <tool_call>\n<function=web_search>\n<parameter=query>\nx\n"
+        "</parameter>\n</function>\n</tool_call> suffix"
+    )
+    out = strip_tool_markup(text, final = True)
+    assert "<tool_call>" not in out and "</tool_call>" not in out
+    assert out == "Prefix  suffix"
+
+
+def test_streaming_pass_final_false_buffers_orphan_but_scrubs():
+    # final=False keeps in-progress markup buffered (orphan-run arm is end-of-turn only)
+    # but still scrubs U+FFFD.
+    assert strip_tool_markup("Here is the answer.</tool_call>", final = False) == (
+        "Here is the answer.</tool_call>"
+    )
+    assert "�" not in strip_tool_markup("hi � there", final = False)
+
+
+# -- strip_tool_markup_streaming (streaming display) chokepoint -------
+
+
+def test_streaming_strips_trailing_orphan_close():
+    # The MTP byte-fallback U+FFFD is scrubbed at the streaming entry, so the display strip
+    # sees a bare orphan close and removes it, matching strip_tool_markup(final=True).
+    assert strip_tool_markup_streaming("answer�</tool_call>") == "answer"
+    # A genuine complete call is still fully stripped (no under-strip regression).
+    assert strip_tool_markup_streaming('<tool_call>{"name":"x","arguments":{}}</tool_call>') == ""
+    # A lone </function> without a sentinel is kept (likely code/XML), not over-stripped.
+    assert strip_tool_markup_streaming("see </function> here") == "see </function> here"
+
+
+def test_streaming_entry_scrubs_control_chars_even_when_disabled():
+    # The entry scrub runs before the auto-heal gate, so byte-fallback garbage is dropped
+    # from streamed display even with stripping disabled.
+    out = strip_tool_markup_streaming(
+        "hi �\x00 there", auto_heal_tool_calls = False, tool_protocol_active = False
+    )
+    assert "�" not in out and "\x00" not in out
+
+
+def test_gguf_streaming_closure_wires_scrub_and_orphan_strip():
+    # The GGUF streaming stripper is a nested closure, so pin the fix by source: its entry must
+    # scrub control chars and its final-segment block must drop trailing orphan closes, matching
+    # the safetensors path and strip_tool_markup(final=True).
+    import inspect
+
+    from core.inference.llama_cpp import LlamaCppBackend
+
+    src = inspect.getsource(LlamaCppBackend.generate_chat_completion_with_tools)
+    assert "_sanitize_control_chars(text)" in src
+    assert "_strip_trailing_orphan_close_run(seg)" in src
+
+
+# -- record_result scrubs the tool result on both boundaries ---------
+
+
+def _decision(name = "web_search"):
+    return ToolCallDecision(
+        action = "execute",
+        tool_name = name,
+        arguments = {"query": "x"},
+        tool_call_id = "call_0",
+        key = f"{name}:{{}}",
+    )
+
+
+def test_record_result_scrubs_tool_result_for_model_and_display():
+    ctrl = ToolLoopController(tools = [{"function": {"name": "web_search"}}])
+    dirty = "Title: Page�� body\x00 text�"
+    completion = ctrl.record_result(_decision(), dirty)
+    # Fed back to the model:
+    assert "�" not in completion.model_message()["content"]
+    assert "\x00" not in completion.model_message()["content"]
+    # Shown in the tool card:
+    assert "�" not in completion.tool_end_payload()["result"]
+    assert completion.result == "Title: Page body text"
+
+
+def test_record_result_keeps_clean_result_intact():
+    ctrl = ToolLoopController(tools = [{"function": {"name": "web_search"}}])
+    clean = "Title: Florida ACA 2026\nSilver premium: $1,900/mo"
+    completion = ctrl.record_result(_decision(), clean)
+    assert completion.result == clean
+
+
+# -- Kimi + DeepSeek end-of-turn closers belong to the orphan-close set --
+#
+# ``_ORPHAN_CLOSE_TOKENS`` / ``_ORPHAN_SENTINELS`` also list the Kimi
+# ``<|tool_call_end|><|tool_calls_section_end|>`` and DeepSeek
+# ``<tool_call_end><tool_calls_end>`` closers: back-to-back special tokens, never legit
+# prose, so a run whose opener was drained/U+FFFD-mangled is scrubbed like ``</tool_call>``.
+
+
+def _kimi_deepseek_tokens():
+    from core.inference.tool_call_parser import (
+        _DEEPSEEK_CALL_END,
+        _DEEPSEEK_END,
+        _KIMI_CALL_END,
+        _KIMI_SECTION_END,
+    )
+    return _KIMI_CALL_END, _KIMI_SECTION_END, _DEEPSEEK_CALL_END, _DEEPSEEK_END
+
+
+def test_kimi_and_deepseek_trailing_closers_stripped_at_final():
+    kimi_end, kimi_section_end, ds_call_end, ds_end = _kimi_deepseek_tokens()
+    assert strip_tool_markup("answer " + kimi_end + kimi_section_end, final = True) == "answer"
+    assert strip_tool_markup("answer " + ds_call_end + ds_end, final = True) == "answer"
+
+
+def test_kimi_and_deepseek_closers_stripped_in_streaming():
+    kimi_end, kimi_section_end, ds_call_end, ds_end = _kimi_deepseek_tokens()
+    assert strip_tool_markup_streaming("answer" + kimi_end + kimi_section_end) == "answer"
+    assert strip_tool_markup_streaming("answer" + ds_call_end + ds_end) == "answer"
+
+
+def test_kimi_closer_in_mid_prose_survives():
+    # Only TRAILING orphans are stripped: a token embedded in prose (with real text after) is
+    # not a trailing run, so a plain answer is never over-stripped.
+    kimi_end, *_ = _kimi_deepseek_tokens()
+    text = "the token " + kimi_end + " appears mid sentence"
+    assert strip_tool_markup(text, final = True) == text