diff --git a/package.json b/package.json
index 1c4133e..bc670cf 100644
--- a/package.json
+++ b/package.json
@@ -15,8 +15,8 @@
   "devDependencies": {
     "@git.zone/tsrun": "^2.0.1",
     "@git.zone/tstest": "^3.1.5",
-    "@push.rocks/smartagent": "^1.3.0",
-    "@push.rocks/smartai": "^0.12.0"
+    "@push.rocks/smartagent": "^1.5.1",
+    "@push.rocks/smartai": "^0.13.2"
   },
   "repository": {
     "type": "git",
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index 0c87b95..ce340e7 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -19,11 +19,11 @@ importers:
         specifier: ^3.1.5
         version: 3.1.6(socks@2.8.7)(typescript@5.9.3)
       '@push.rocks/smartagent':
-        specifier: ^1.3.0
-        version: 1.3.0(typescript@5.9.3)(ws@8.19.0)(zod@3.25.76)
+        specifier: ^1.5.1
+        version: 1.5.1(typescript@5.9.3)(ws@8.19.0)(zod@3.25.76)
       '@push.rocks/smartai':
-        specifier: ^0.12.0
-        version: 0.12.0(typescript@5.9.3)(ws@8.19.0)(zod@3.25.76)
+        specifier: ^0.13.2
+        version: 0.13.2(typescript@5.9.3)(ws@8.19.0)(zod@3.25.76)
 
 packages:
 
@@ -868,11 +868,11 @@ packages:
   '@push.rocks/qenv@6.1.3':
     resolution: {integrity: sha512-+z2hsAU/7CIgpYLFqvda8cn9rUBMHqLdQLjsFfRn5jPoD7dJ5rFlpkbhfM4Ws8mHMniwWaxGKo+q/YBhtzRBLg==}
 
-  '@push.rocks/smartagent@1.3.0':
-    resolution: {integrity: sha512-MuiJVJcl9Pdr03k1zVwgxTqprbIHKwqPqXdOmYFYn0xYnixOX1tBUYkGsu6xIntXq8t4WazBJiF9hCiMpDTiRA==}
+  '@push.rocks/smartagent@1.5.1':
+    resolution: {integrity: sha512-NQF5RRvSqmUAP9gbpwAzRaJ9pDSgyoc9vs9iewy0cXysZ1TavIHRXvNai6K1G8F8jLbLPf+M5zTh889x2jBf7w==}
 
-  '@push.rocks/smartai@0.12.0':
-    resolution: {integrity: sha512-T4HRaSSxO6TQGGXlQeswX2eYkB+gMu0FbKF9qCUri6FdRlYzmPDn19jgPrPJxyg5m3oj6TzflvfYwcBCFlWo/A==}
+  '@push.rocks/smartai@0.13.2':
+    resolution: {integrity: sha512-FqnHh31tU0Nkr/g25UMAjjE7gZVN8cuioRlSq1xo19rS9kyMiux+UzpylO2tgXF5S+lTsw5cGtfP0BUfrxlTGg==}
 
   '@push.rocks/smartarchive@5.2.1':
     resolution: {integrity: sha512-TNv5q6QuBRX7jrzffiyb6A8AALNAr0kyAcJswa0l3ahBP1Q6zszNo9xOVXmW2gKX2KShtO/Y+Cn0i46n8lbnaQ==}
@@ -5206,9 +5206,9 @@ snapshots:
       '@push.rocks/smartlog': 3.1.10
       '@push.rocks/smartpath': 6.0.0
 
-  '@push.rocks/smartagent@1.3.0(typescript@5.9.3)(ws@8.19.0)(zod@3.25.76)':
+  '@push.rocks/smartagent@1.5.1(typescript@5.9.3)(ws@8.19.0)(zod@3.25.76)':
     dependencies:
-      '@push.rocks/smartai': 0.12.0(typescript@5.9.3)(ws@8.19.0)(zod@3.25.76)
+      '@push.rocks/smartai': 0.13.2(typescript@5.9.3)(ws@8.19.0)(zod@3.25.76)
       '@push.rocks/smartbrowser': 2.0.8(typescript@5.9.3)
       '@push.rocks/smartdeno': 1.2.0
       '@push.rocks/smartfs': 1.3.1
@@ -5230,7 +5230,7 @@ snapshots:
       - ws
       - zod
 
-  '@push.rocks/smartai@0.12.0(typescript@5.9.3)(ws@8.19.0)(zod@3.25.76)':
+  '@push.rocks/smartai@0.13.2(typescript@5.9.3)(ws@8.19.0)(zod@3.25.76)':
     dependencies:
       '@anthropic-ai/sdk': 0.71.2(zod@3.25.76)
       '@mistralai/mistralai': 1.12.0
diff --git a/test/test.invoices.nanonets.ts b/test/test.invoices.nanonets.ts
index f0c8dae..54fbbc5 100644
--- a/test/test.invoices.nanonets.ts
+++ b/test/test.invoices.nanonets.ts
@@ -30,8 +30,10 @@ const smartAi = new SmartAi({
     baseUrl: OLLAMA_URL,
     model: EXTRACTION_MODEL,
     defaultOptions: {
-      num_ctx: 32768,   // Larger context for long invoices + thinking
-      temperature: 0,   // Deterministic for JSON extraction
+      num_ctx: 65536,    // 64K context for long invoices + reasoning chains
+      temperature: 0,    // Deterministic for JSON extraction
+      repeat_penalty: 1.3, // Penalty to prevent repetition loops
+      think: true,       // Enable thinking mode for GPT-OSS reasoning
     },
     defaultTimeout: 600000,  // 10 minute timeout for large documents
   },
@@ -636,7 +638,7 @@ tap.test('Stage 2: Setup Ollama + GPT-OSS 20B', async () => {
   console.log('  [SmartAgent] Starting SmartAi...');
   await smartAi.start();
 
-  console.log('  [SmartAgent] Creating DualAgentOrchestrator...');
+  console.log('  [SmartAgent] Creating DualAgentOrchestrator with native tool calling...');
   orchestrator = new DualAgentOrchestrator({
     smartAiInstance: smartAi,
     defaultProvider: 'ollama',
@@ -652,18 +654,11 @@ tap.test('Stage 2: Setup Ollama + GPT-OSS 20B', async () => {
 CRITICAL RULES:
 1. Output valid JSON with the exact format requested
 2. If you cannot find a value, use empty string "" or 0 for numbers
-3. IMPORTANT: Before completing, validate your JSON using the json.validate tool:
-
-<tool_call>
-  <tool>json</tool>
-  <action>validate</action>
-  <params>{"jsonString": "YOUR_JSON", "requiredFields": ["invoice_number", "invoice_date", "vendor_name", "currency", "net_amount", "vat_amount", "total_amount"]}</params>
-</tool_call>
-
-4. Only complete after validation passes
-
-When done, wrap your JSON in <task_complete></task_complete> tags.`,
+3. Before completing, validate your JSON using the json_validate tool
+4. Only complete after validation passes`,
     maxIterations: 5,
+    // Enable native tool calling for GPT-OSS (uses Harmony format instead of XML)
+    useNativeToolCalling: true,
     // Enable streaming for real-time progress visibility
     onToken: (token, source) => {
       if (source === 'driver') {