diff --git a/docs/backend/structured_outputs.ipynb b/docs/backend/structured_outputs.ipynb
index 94e8902d6..3d1d0c15a 100644
--- a/docs/backend/structured_outputs.ipynb
+++ b/docs/backend/structured_outputs.ipynb
@@ -15,15 +15,15 @@
     "\n",
     "SGLang supports two grammar backends:\n",
     "\n",
-    "- [Outlines](https://github.com/dottxt-ai/outlines) (default): Supports JSON schema and regular expression constraints.\n",
-    "- [XGrammar](https://github.com/mlc-ai/xgrammar): Supports JSON schema, regular expression, and EBNF constraints.\n",
+    "- [Outlines](https://github.com/dottxt-ai/outlines): Supports JSON schema and regular expression constraints.\n",
+    "- [XGrammar](https://github.com/mlc-ai/xgrammar)(default): Supports JSON schema, regular expression, and EBNF constraints.\n",
     "- [Llguidance](https://github.com/guidance-ai/llguidance): Supports JSON schema, regular expression, and EBNF constraints.\n",
     "\n",
     "We suggest using XGrammar for its better performance and utility. XGrammar currently uses the [GGML BNF format](https://github.com/ggerganov/llama.cpp/blob/master/grammars/README.md). For more details, see [XGrammar technical overview](https://blog.mlc.ai/2024/11/22/achieving-efficient-flexible-portable-structured-generation-with-xgrammar).\n",
     "\n",
-    "To use Xgrammar, simply add `--grammar-backend xgrammar` when launching the server.\n",
+    "To use Outlines, simply add `--grammar-backend outlines` when launching the server.\n",
     "To use llguidance, add `--grammar-backend llguidance`  when launching the server.\n",
-    "If no backend is specified, Outlines will be used as the default.\n",
+    "If no backend is specified, XGrammar will be used as the default.\n",
     "\n",
     "For better output quality, **It's advisable to explicitly include instructions in the prompt to guide the model to generate the desired format.** For example, you can specify, 'Please generate the output in the following JSON format: ...'.\n"
    ]
@@ -56,7 +56,7 @@
     "\n",
     "\n",
     "server_process, port = launch_server_cmd(\n",
-    "    \"python -m sglang.launch_server --model-path meta-llama/Meta-Llama-3.1-8B-Instruct --host 0.0.0.0 --grammar-backend xgrammar\"\n",
+    "    \"python -m sglang.launch_server --model-path meta-llama/Meta-Llama-3.1-8B-Instruct --host 0.0.0.0\"\n",
     ")\n",
     "\n",
     "wait_for_server(f\"http://localhost:{port}\")\n",
@@ -229,6 +229,131 @@
     "print_highlight(response.choices[0].message.content)"
    ]
   },
+  {
+   "cell_type": "markdown",
+   "metadata": {},
+   "source": [
+    "### Structural Tag"
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": null,
+   "metadata": {},
+   "outputs": [],
+   "source": [
+    "tool_get_current_weather = {\n",
+    "    \"type\": \"function\",\n",
+    "    \"function\": {\n",
+    "        \"name\": \"get_current_weather\",\n",
+    "        \"description\": \"Get the current weather in a given location\",\n",
+    "        \"parameters\": {\n",
+    "            \"type\": \"object\",\n",
+    "            \"properties\": {\n",
+    "                \"city\": {\n",
+    "                    \"type\": \"string\",\n",
+    "                    \"description\": \"The city to find the weather for, e.g. 'San Francisco'\",\n",
+    "                },\n",
+    "                \"state\": {\n",
+    "                    \"type\": \"string\",\n",
+    "                    \"description\": \"the two-letter abbreviation for the state that the city is\"\n",
+    "                    \" in, e.g. 'CA' which would mean 'California'\",\n",
+    "                },\n",
+    "                \"unit\": {\n",
+    "                    \"type\": \"string\",\n",
+    "                    \"description\": \"The unit to fetch the temperature in\",\n",
+    "                    \"enum\": [\"celsius\", \"fahrenheit\"],\n",
+    "                },\n",
+    "            },\n",
+    "            \"required\": [\"city\", \"state\", \"unit\"],\n",
+    "        },\n",
+    "    },\n",
+    "}\n",
+    "\n",
+    "tool_get_current_date = {\n",
+    "    \"type\": \"function\",\n",
+    "    \"function\": {\n",
+    "        \"name\": \"get_current_date\",\n",
+    "        \"description\": \"Get the current date and time for a given timezone\",\n",
+    "        \"parameters\": {\n",
+    "            \"type\": \"object\",\n",
+    "            \"properties\": {\n",
+    "                \"timezone\": {\n",
+    "                    \"type\": \"string\",\n",
+    "                    \"description\": \"The timezone to fetch the current date and time for, e.g. 'America/New_York'\",\n",
+    "                }\n",
+    "            },\n",
+    "            \"required\": [\"timezone\"],\n",
+    "        },\n",
+    "    },\n",
+    "}\n",
+    "\n",
+    "schema_get_current_weather = tool_get_current_weather[\"function\"][\"parameters\"]\n",
+    "schema_get_current_date = tool_get_current_date[\"function\"][\"parameters\"]\n",
+    "\n",
+    "\n",
+    "def get_messages():\n",
+    "    return [\n",
+    "        {\n",
+    "            \"role\": \"system\",\n",
+    "            \"content\": f\"\"\"\n",
+    "# Tool Instructions\n",
+    "- Always execute python code in messages that you share.\n",
+    "- When looking for real time information use relevant functions if available else fallback to brave_search\n",
+    "You have access to the following functions:\n",
+    "Use the function 'get_current_weather' to: Get the current weather in a given location\n",
+    "{tool_get_current_weather[\"function\"]}\n",
+    "Use the function 'get_current_date' to: Get the current date and time for a given timezone\n",
+    "{tool_get_current_date[\"function\"]}\n",
+    "If a you choose to call a function ONLY reply in the following format:\n",
+    "<{{start_tag}}={{function_name}}>{{parameters}}{{end_tag}}\n",
+    "where\n",
+    "start_tag => `<function`\n",
+    "parameters => a JSON dict with the function argument name as key and function argument value as value.\n",
+    "end_tag => `</function>`\n",
+    "Here is an example,\n",
+    "<function=example_function_name>{{\"example_name\": \"example_value\"}}</function>\n",
+    "Reminder:\n",
+    "- Function calls MUST follow the specified format\n",
+    "- Required parameters MUST be specified\n",
+    "- Only call one function at a time\n",
+    "- Put the entire function call reply on one line\n",
+    "- Always add your sources when using search results to answer the user query\n",
+    "You are a helpful assistant.\"\"\",\n",
+    "        },\n",
+    "        {\n",
+    "            \"role\": \"user\",\n",
+    "            \"content\": \"You are in New York. Please get the current date and time, and the weather.\",\n",
+    "        },\n",
+    "    ]\n",
+    "\n",
+    "\n",
+    "messages = get_messages()\n",
+    "\n",
+    "response = client.chat.completions.create(\n",
+    "    model=\"meta-llama/Meta-Llama-3.1-8B-Instruct\",\n",
+    "    messages=messages,\n",
+    "    response_format={\n",
+    "        \"type\": \"structural_tag\",\n",
+    "        \"structures\": [\n",
+    "            {\n",
+    "                \"begin\": \"<function=get_current_weather>\",\n",
+    "                \"schema\": schema_get_current_weather,\n",
+    "                \"end\": \"</function>\",\n",
+    "            },\n",
+    "            {\n",
+    "                \"begin\": \"<function=get_current_date>\",\n",
+    "                \"schema\": schema_get_current_date,\n",
+    "                \"end\": \"</function>\",\n",
+    "            },\n",
+    "        ],\n",
+    "        \"triggers\": [\"<function=\"],\n",
+    "    },\n",
+    ")\n",
+    "\n",
+    "print_highlight(response.choices[0].message.content)"
+   ]
+  },
   {
    "cell_type": "markdown",
    "metadata": {},
@@ -341,8 +466,6 @@
    "metadata": {},
    "outputs": [],
    "source": [
-    "import requests\n",
-    "\n",
     "response = requests.post(\n",
     "    f\"http://localhost:{port}/generate\",\n",
     "    json={\n",
@@ -394,6 +517,57 @@
     "print_highlight(response.json())"
    ]
   },
+  {
+   "cell_type": "markdown",
+   "metadata": {},
+   "source": [
+    "### Structural Tag"
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": null,
+   "metadata": {},
+   "outputs": [],
+   "source": [
+    "from transformers import AutoTokenizer\n",
+    "\n",
+    "# generate an answer\n",
+    "tokenizer = AutoTokenizer.from_pretrained(\"meta-llama/Meta-Llama-3.1-8B-Instruct\")\n",
+    "\n",
+    "text = tokenizer.apply_chat_template(\n",
+    "    messages, tokenize=False, add_generation_prompt=True\n",
+    ")\n",
+    "payload = {\n",
+    "    \"text\": text,\n",
+    "    \"sampling_params\": {\n",
+    "        \"structural_tag\": json.dumps(\n",
+    "            {\n",
+    "                \"type\": \"structural_tag\",\n",
+    "                \"structures\": [\n",
+    "                    {\n",
+    "                        \"begin\": \"<function=get_current_weather>\",\n",
+    "                        \"schema\": schema_get_current_weather,\n",
+    "                        \"end\": \"</function>\",\n",
+    "                    },\n",
+    "                    {\n",
+    "                        \"begin\": \"<function=get_current_date>\",\n",
+    "                        \"schema\": schema_get_current_date,\n",
+    "                        \"end\": \"</function>\",\n",
+    "                    },\n",
+    "                ],\n",
+    "                \"triggers\": [\"<function=\"],\n",
+    "            }\n",
+    "        )\n",
+    "    },\n",
+    "}\n",
+    "\n",
+    "\n",
+    "# Send POST request to the API endpoint\n",
+    "response = requests.post(f\"http://localhost:{port}/generate\", json=payload)\n",
+    "print_highlight(response.json())"
+   ]
+  },
   {
    "cell_type": "code",
    "execution_count": null,
@@ -575,6 +749,56 @@
     "    print_highlight(f\"Prompt: {prompt}\\nGenerated text: {output['text']}\")"
    ]
   },
+  {
+   "cell_type": "markdown",
+   "metadata": {},
+   "source": [
+    "### Structural Tag"
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": null,
+   "metadata": {},
+   "outputs": [],
+   "source": [
+    "text = tokenizer.apply_chat_template(\n",
+    "    messages, tokenize=False, add_generation_prompt=True\n",
+    ")\n",
+    "prompts = [text]\n",
+    "\n",
+    "\n",
+    "sampling_params = {\n",
+    "    \"temperature\": 0.8,\n",
+    "    \"top_p\": 0.95,\n",
+    "    \"structural_tag\": json.dumps(\n",
+    "        {\n",
+    "            \"type\": \"structural_tag\",\n",
+    "            \"structures\": [\n",
+    "                {\n",
+    "                    \"begin\": \"<function=get_current_weather>\",\n",
+    "                    \"schema\": schema_get_current_weather,\n",
+    "                    \"end\": \"</function>\",\n",
+    "                },\n",
+    "                {\n",
+    "                    \"begin\": \"<function=get_current_date>\",\n",
+    "                    \"schema\": schema_get_current_date,\n",
+    "                    \"end\": \"</function>\",\n",
+    "                },\n",
+    "            ],\n",
+    "            \"triggers\": [\"<function=\"],\n",
+    "        }\n",
+    "    ),\n",
+    "}\n",
+    "\n",
+    "\n",
+    "# Send POST request to the API endpoint\n",
+    "outputs = llm.generate(prompts, sampling_params)\n",
+    "for prompt, output in zip(prompts, outputs):\n",
+    "    print_highlight(\"===============================\")\n",
+    "    print_highlight(f\"Prompt: {prompt}\\nGenerated text: {output['text']}\")"
+   ]
+  },
   {
    "cell_type": "code",
    "execution_count": null,
diff --git a/python/pyproject.toml b/python/pyproject.toml
index 5820e73ed..ad30b8211 100644
--- a/python/pyproject.toml
+++ b/python/pyproject.toml
@@ -38,7 +38,7 @@ runtime_common = [
     "transformers==4.48.3",
     "uvicorn",
     "uvloop",
-    "xgrammar==0.1.15",
+    "xgrammar==0.1.16",
 ]
 
 srt = [
diff --git a/python/sglang/srt/openai_api/protocol.py b/python/sglang/srt/openai_api/protocol.py
index 0b6148321..767a77abc 100644
--- a/python/sglang/srt/openai_api/protocol.py
+++ b/python/sglang/srt/openai_api/protocol.py
@@ -16,7 +16,7 @@
 import time
 from typing import Dict, List, Optional, Union
 
-from pydantic import BaseModel, Field
+from pydantic import BaseModel, Field, root_validator
 from typing_extensions import Literal
 
 
@@ -323,6 +323,15 @@ class ChatCompletionRequest(BaseModel):
         default="auto", examples=["none"]
     )  # noqa
 
+    @root_validator(pre=True)
+    def set_tool_choice_default(cls, values):
+        if values.get("tool_choice") is None:
+            if values.get("tools") is None:
+                values["tool_choice"] = "none"
+            else:
+                values["tool_choice"] = "auto"
+        return values
+
     # Extra parameters for SRT backend only and will be ignored by OpenAI models.
     top_k: int = -1
     min_p: float = 0.0
diff --git a/python/sglang/srt/server_args.py b/python/sglang/srt/server_args.py
index 2901ba57e..3d4951a77 100644
--- a/python/sglang/srt/server_args.py
+++ b/python/sglang/srt/server_args.py
@@ -125,7 +125,7 @@ class ServerArgs:
     # Kernel backend
     attention_backend: Optional[str] = None
     sampling_backend: Optional[str] = None
-    grammar_backend: Optional[str] = "outlines"
+    grammar_backend: Optional[str] = "xgrammar"
 
     # Speculative decoding
     speculative_algorithm: Optional[str] = None