diff --git a/sgl-router/src/routers/grpc/router.rs b/sgl-router/src/routers/grpc/router.rs
index 529d40d16..a54f6ff83 100644
--- a/sgl-router/src/routers/grpc/router.rs
+++ b/sgl-router/src/routers/grpc/router.rs
@@ -27,7 +27,7 @@ use crate::tokenizer::traits::Tokenizer;
 use crate::tool_parser::ParserRegistry;
 use uuid::Uuid;
 
-use crate::tokenizer::chat_template::ChatTemplateContentFormat;
+use crate::tokenizer::chat_template::{ChatTemplateContentFormat, ChatTemplateParams};
 use serde_json::Value;
 
 // Data structures for processing
@@ -300,12 +300,87 @@ impl GrpcRouter {
         {
             // Get content format and transform messages accordingly
             let content_format = hf_tokenizer.chat_template_content_format();
-            let transformed_messages =
-                Self::transform_messages_for_content_format(&request.messages, content_format)?;
+            let mut transformed_messages =
+                Self::process_content_format(&request.messages, content_format)?;
 
-            hf_tokenizer
-                .apply_chat_template(&transformed_messages, true)
-                .map_err(|e| format!("Failed to apply chat template: {}", e))?
+            // Process tool call arguments in assistant messages
+            Self::process_tool_call_arguments(&mut transformed_messages)?;
+
+            // Convert tools to JSON values for template processing
+            let tools_json: Option<Vec<serde_json::Value>> = request
+                .tools
+                .as_ref()
+                .map(|tools| {
+                    tools
+                        .iter()
+                        .map(serde_json::to_value)
+                        .collect::<Result<Vec<_>, _>>()
+                })
+                .transpose()
+                .map_err(|e| format!("Failed to serialize tools: {}", e))?;
+
+            // Build template kwargs, merging reasoning_effort if present
+            let mut combined_template_kwargs = std::collections::HashMap::new();
+
+            // Add reasoning_effort if present (like Python does)
+            if let Some(reasoning_effort) = &request.reasoning_effort {
+                combined_template_kwargs.insert(
+                    "reasoning_effort".to_string(),
+                    serde_json::Value::String(reasoning_effort.clone()),
+                );
+            }
+
+            // Add any additional template kwargs from request
+            if let Some(template_kwargs) = &request.chat_template_kwargs {
+                for (key, value) in template_kwargs {
+                    combined_template_kwargs.insert(key.clone(), value.clone());
+                }
+            }
+
+            let final_template_kwargs = if combined_template_kwargs.is_empty() {
+                None
+            } else {
+                Some(&combined_template_kwargs)
+            };
+
+            let params = ChatTemplateParams {
+                add_generation_prompt: true,
+                continue_final_message: request.continue_final_message,
+                tools: tools_json.as_deref(),
+                template_kwargs: final_template_kwargs,
+                ..Default::default()
+            };
+
+            // Handle assistant prefix for continue_final_message
+            let assistant_prefix = if request.continue_final_message
+                && !transformed_messages.is_empty()
+                && transformed_messages
+                    .last()
+                    .and_then(|msg| msg.get("role"))
+                    .and_then(|v| v.as_str())
+                    == Some("assistant")
+            {
+                // Pop the last message to handle it separately
+                let last_msg = transformed_messages.pop().unwrap();
+                last_msg
+                    .get("content")
+                    .and_then(|v| v.as_str())
+                    .map(|s| s.to_string())
+            } else {
+                None
+            };
+
+            // Apply chat template with the (now possibly shorter) list of messages
+            let rendered = hf_tokenizer
+                .apply_chat_template(&transformed_messages, params)
+                .map_err(|e| format!("Failed to apply chat template: {}", e))?;
+
+            // Append assistant prefix if we have one
+            if let Some(prefix) = assistant_prefix {
+                format!("{}{}", rendered, prefix)
+            } else {
+                rendered
+            }
         } else {
             return Err(
                 "gRPC router requires HuggingFace tokenizer with chat template support".to_string(),
@@ -322,8 +397,8 @@ impl GrpcRouter {
         })
     }
 
-    /// Transform messages based on content format for ANY message type
-    fn transform_messages_for_content_format(
+    /// Process messages based on content format for ANY message type
+    fn process_content_format(
         messages: &[crate::protocols::spec::ChatMessage],
         content_format: crate::tokenizer::chat_template::ChatTemplateContentFormat,
     ) -> Result<Vec<serde_json::Value>, String> {
@@ -394,6 +469,49 @@ impl GrpcRouter {
         }
     }
 
+    /// Process tool call arguments in messages
+    /// Per Transformers docs, tool call arguments in assistant messages should be dicts
+    fn process_tool_call_arguments(messages: &mut [serde_json::Value]) -> Result<(), String> {
+        for msg in messages {
+            // Early return if not assistant message
+            let role = msg.get("role").and_then(|v| v.as_str());
+            if role != Some("assistant") {
+                continue;
+            }
+
+            // Early return if no tool_calls
+            let Some(tool_calls) = msg.get_mut("tool_calls").and_then(|tc| tc.as_array_mut())
+            else {
+                continue;
+            };
+
+            // Process each tool call's arguments
+            for call in tool_calls {
+                let Some(function) = call.get_mut("function") else {
+                    continue;
+                };
+                let Some(args) = function.get_mut("arguments") else {
+                    continue;
+                };
+                let Some(args_str) = args.as_str() else {
+                    continue;
+                };
+
+                // Parse JSON string to object (like Python json.loads)
+                match serde_json::from_str::<serde_json::Value>(args_str) {
+                    Ok(parsed) => *args = parsed,
+                    Err(e) => {
+                        return Err(format!(
+                            "Failed to parse tool call arguments as JSON: '{}'. Error: {}",
+                            args_str, e
+                        ))
+                    }
+                }
+            }
+        }
+        Ok(())
+    }
+
     /// Build gRPC SamplingParams from OpenAI request
     fn build_grpc_sampling_params(
         &self,
@@ -410,6 +528,19 @@ impl GrpcRouter {
             .or(request.max_tokens)
             .map(|v| v as i32);
 
+        // Handle skip_special_tokens: set to false if tools are present and tool_choice is not "none"
+        let skip_special_tokens = if request.tools.is_some() {
+            match &request.tool_choice {
+                Some(crate::protocols::spec::ToolChoice::Value(
+                    crate::protocols::spec::ToolChoiceValue::None,
+                )) => request.skip_special_tokens,
+                Some(_) => false, // tool_choice is not "none"
+                None => false, // TODO: this assumes tool_choice defaults to "auto" when tools present
+            }
+        } else {
+            request.skip_special_tokens
+        };
+
         #[allow(deprecated)]
         Ok(proto::SamplingParams {
             temperature: request.temperature.unwrap_or(1.0),
@@ -422,7 +553,7 @@ impl GrpcRouter {
             max_new_tokens,
             stop: stop_sequences,
             stop_token_ids: request.stop_token_ids.clone().unwrap_or_default(),
-            skip_special_tokens: request.skip_special_tokens,
+            skip_special_tokens,
             n: request.n.unwrap_or(1) as i32,
             structural_tag: structural_tag.unwrap_or_default(),
             constraint: self.build_constraint(request)?,
@@ -700,11 +831,9 @@ mod tests {
             name: None,
         }];
 
-        let result = GrpcRouter::transform_messages_for_content_format(
-            &messages,
-            ChatTemplateContentFormat::String,
-        )
-        .unwrap();
+        let result =
+            GrpcRouter::process_content_format(&messages, ChatTemplateContentFormat::String)
+                .unwrap();
 
         assert_eq!(result.len(), 1);
         let transformed_message = &result[0];
@@ -735,11 +864,9 @@ mod tests {
             name: None,
         }];
 
-        let result = GrpcRouter::transform_messages_for_content_format(
-            &messages,
-            ChatTemplateContentFormat::OpenAI,
-        )
-        .unwrap();
+        let result =
+            GrpcRouter::process_content_format(&messages, ChatTemplateContentFormat::OpenAI)
+                .unwrap();
 
         assert_eq!(result.len(), 1);
         let transformed_message = &result[0];
@@ -764,11 +891,9 @@ mod tests {
             name: None,
         }];
 
-        let result = GrpcRouter::transform_messages_for_content_format(
-            &messages,
-            ChatTemplateContentFormat::String,
-        )
-        .unwrap();
+        let result =
+            GrpcRouter::process_content_format(&messages, ChatTemplateContentFormat::String)
+                .unwrap();
 
         assert_eq!(result.len(), 1);
         let transformed_message = &result[0];
@@ -791,11 +916,9 @@ mod tests {
             reasoning_content: None,
         }];
 
-        let result = GrpcRouter::transform_messages_for_content_format(
-            &messages,
-            ChatTemplateContentFormat::String,
-        )
-        .unwrap();
+        let result =
+            GrpcRouter::process_content_format(&messages, ChatTemplateContentFormat::String)
+                .unwrap();
 
         assert_eq!(result.len(), 1);
         let transformed_message = &result[0];
@@ -832,11 +955,9 @@ mod tests {
             },
         ];
 
-        let result = GrpcRouter::transform_messages_for_content_format(
-            &messages,
-            ChatTemplateContentFormat::String,
-        )
-        .unwrap();
+        let result =
+            GrpcRouter::process_content_format(&messages, ChatTemplateContentFormat::String)
+                .unwrap();
 
         assert_eq!(result.len(), 2);
 
@@ -862,11 +983,9 @@ mod tests {
             name: None,
         }];
 
-        let result = GrpcRouter::transform_messages_for_content_format(
-            &messages,
-            ChatTemplateContentFormat::String,
-        )
-        .unwrap();
+        let result =
+            GrpcRouter::process_content_format(&messages, ChatTemplateContentFormat::String)
+                .unwrap();
 
         assert_eq!(result.len(), 1);
         let transformed_message = &result[0];
@@ -902,22 +1021,18 @@ mod tests {
         ];
 
         // Test String format
-        let result_string = GrpcRouter::transform_messages_for_content_format(
-            &messages,
-            ChatTemplateContentFormat::String,
-        )
-        .unwrap();
+        let result_string =
+            GrpcRouter::process_content_format(&messages, ChatTemplateContentFormat::String)
+                .unwrap();
 
         assert_eq!(result_string.len(), 2);
         assert_eq!(result_string[0]["content"].as_str().unwrap(), "Plain text");
         assert_eq!(result_string[1]["content"].as_str().unwrap(), "With image");
 
         // Test OpenAI format
-        let result_openai = GrpcRouter::transform_messages_for_content_format(
-            &messages,
-            ChatTemplateContentFormat::OpenAI,
-        )
-        .unwrap();
+        let result_openai =
+            GrpcRouter::process_content_format(&messages, ChatTemplateContentFormat::OpenAI)
+                .unwrap();
 
         assert_eq!(result_openai.len(), 2);
         assert_eq!(result_openai[0]["content"].as_str().unwrap(), "Plain text");
diff --git a/sgl-router/src/tokenizer/chat_template.rs b/sgl-router/src/tokenizer/chat_template.rs
index 798ede015..dec38cf59 100644
--- a/sgl-router/src/tokenizer/chat_template.rs
+++ b/sgl-router/src/tokenizer/chat_template.rs
@@ -6,6 +6,7 @@
 use anyhow::{anyhow, Result};
 use minijinja::{context, machinery, Environment, Value};
 use serde_json;
+use std::collections::HashMap;
 
 /// Chat template content format
 #[derive(Debug, Clone, Copy, PartialEq, Eq)]
@@ -288,21 +289,25 @@ fn is_numeric_constant(expr: &machinery::ast::Expr) -> bool {
     matches!(expr, machinery::ast::Expr::Const(const_expr) if const_expr.value.is_number())
 }
 
+/// Parameters for chat template application
+#[derive(Default)]
+pub struct ChatTemplateParams<'a> {
+    pub add_generation_prompt: bool,
+    pub continue_final_message: bool,
+    pub tools: Option<&'a [serde_json::Value]>,
+    pub documents: Option<&'a [serde_json::Value]>,
+    pub template_kwargs: Option<&'a HashMap<String, serde_json::Value>>,
+}
+
 /// Chat template processor using Jinja2 - simple wrapper like HuggingFace
 pub struct ChatTemplateProcessor {
     template: String,
-    bos_token: Option<String>,
-    eos_token: Option<String>,
 }
 
 impl ChatTemplateProcessor {
     /// Create a new chat template processor
-    pub fn new(template: String, bos_token: Option<String>, eos_token: Option<String>) -> Self {
-        ChatTemplateProcessor {
-            template,
-            bos_token,
-            eos_token,
-        }
+    pub fn new(template: String) -> Self {
+        ChatTemplateProcessor { template }
     }
 
     /// Apply the chat template to a list of messages
@@ -313,8 +318,12 @@ impl ChatTemplateProcessor {
     pub fn apply_chat_template(
         &self,
         messages: &[serde_json::Value],
-        add_generation_prompt: bool,
+        params: ChatTemplateParams,
     ) -> Result<String> {
+        // Validate incompatible options
+        if params.continue_final_message && params.add_generation_prompt {
+            return Err(anyhow!("continue_final_message and add_generation_prompt are not compatible. Use continue_final_message when you want the model to continue the final message, and add_generation_prompt when you want to add a header that will prompt it to start a new assistant message instead."));
+        }
         let mut env = Environment::new();
 
         // Register the template
@@ -326,17 +335,29 @@ impl ChatTemplateProcessor {
             .get_template("chat")
             .map_err(|e| anyhow!("Failed to get template: {}", e))?;
 
-        // Convert ChatMessage to minijinja::Value for rendering using serde like pydantic.model_dump()
+        // Convert messages to minijinja::Value (messages already processed by router)
         let minijinja_messages: Vec<Value> = messages.iter().map(Value::from_serialize).collect();
 
-        // Render the template directly with the provided values
+        let base_context = context! {
+            messages => &minijinja_messages,
+            add_generation_prompt => params.add_generation_prompt,
+            tools => params.tools,
+            documents => params.documents,
+        };
+
+        // Merge with template_kwargs if provided
+        let ctx = if let Some(kwargs) = params.template_kwargs {
+            context! {
+                ..base_context,
+                ..Value::from_serialize(kwargs)
+            }
+        } else {
+            base_context
+        };
+
+        // Render the template
         let rendered = tmpl
-            .render(context! {
-                messages => minijinja_messages,
-                add_generation_prompt => add_generation_prompt,
-                bos_token => self.bos_token.clone().unwrap_or_default(),
-                eos_token => self.eos_token.clone().unwrap_or_default()
-            })
+            .render(&ctx)
             .map_err(|e| anyhow!("Failed to render template: {}", e))?;
 
         Ok(rendered)
diff --git a/sgl-router/src/tokenizer/huggingface.rs b/sgl-router/src/tokenizer/huggingface.rs
index f4d926621..396ccdf60 100644
--- a/sgl-router/src/tokenizer/huggingface.rs
+++ b/sgl-router/src/tokenizer/huggingface.rs
@@ -4,7 +4,8 @@ use anyhow::{Error, Result};
 use tokenizers::tokenizer::Tokenizer as HfTokenizer;
 
 use super::chat_template::{
-    detect_chat_template_content_format, ChatTemplateContentFormat, ChatTemplateProcessor,
+    detect_chat_template_content_format, ChatTemplateContentFormat, ChatTemplateParams,
+    ChatTemplateProcessor,
 };
 use super::traits::{
     Decoder, Encoder, Encoding, SpecialTokens, TokenIdType, Tokenizer as TokenizerTrait,
@@ -165,16 +166,11 @@ impl HuggingFaceTokenizer {
     pub fn apply_chat_template(
         &self,
         messages: &[serde_json::Value],
-        add_generation_prompt: bool,
+        params: ChatTemplateParams,
     ) -> Result<String> {
         if let Some(ref template) = self.chat_template {
-            let processor = ChatTemplateProcessor::new(
-                template.clone(),
-                self.special_tokens.bos_token.clone(),
-                self.special_tokens.eos_token.clone(),
-            );
-
-            processor.apply_chat_template(messages, add_generation_prompt)
+            let processor = ChatTemplateProcessor::new(template.clone());
+            processor.apply_chat_template(messages, params)
         } else {
             Err(Error::msg(
                 "Cannot use chat template functions because tokenizer.chat_template is not set and no template \
diff --git a/sgl-router/tests/chat_template_format_detection.rs b/sgl-router/tests/chat_template_format_detection.rs
index cfca6ff8e..7a1ffa0fa 100644
--- a/sgl-router/tests/chat_template_format_detection.rs
+++ b/sgl-router/tests/chat_template_format_detection.rs
@@ -1,6 +1,7 @@
 use sglang_router_rs::protocols::spec;
 use sglang_router_rs::tokenizer::chat_template::{
-    detect_chat_template_content_format, ChatTemplateContentFormat, ChatTemplateProcessor,
+    detect_chat_template_content_format, ChatTemplateContentFormat, ChatTemplateParams,
+    ChatTemplateProcessor,
 };
 
 #[test]
@@ -169,11 +170,7 @@ assistant:
 {%- endif %}
 "#;
 
-    let processor = ChatTemplateProcessor::new(
-        template.to_string(),
-        Some("<s>".to_string()),
-        Some("</s>".to_string()),
-    );
+    let processor = ChatTemplateProcessor::new(template.to_string());
 
     let messages = vec![
         spec::ChatMessage::System {
@@ -194,8 +191,12 @@ assistant:
         .map(|msg| serde_json::to_value(msg).unwrap())
         .collect();
 
+    let params = ChatTemplateParams {
+        add_generation_prompt: true,
+        ..Default::default()
+    };
     let result = processor
-        .apply_chat_template(&message_values, true)
+        .apply_chat_template(&message_values, params)
         .unwrap();
     assert!(result.contains("system: You are helpful"));
     assert!(result.contains("user: Hello"));
@@ -204,19 +205,15 @@ assistant:
 
 #[test]
 fn test_chat_template_with_tokens_unit_test() {
-    // Template that uses special tokens
+    // Template that uses template kwargs for tokens (more realistic)
     let template = r#"
-{{ bos_token }}
+{%- if start_token -%}{{ start_token }}{%- endif -%}
 {%- for message in messages -%}
-{{ message.role }}: {{ message.content }}{{ eos_token }}
+{{ message.role }}: {{ message.content }}{%- if end_token -%}{{ end_token }}{%- endif -%}
 {% endfor -%}
 "#;
 
-    let processor = ChatTemplateProcessor::new(
-        template.to_string(),
-        Some("<s>".to_string()),
-        Some("</s>".to_string()),
-    );
+    let processor = ChatTemplateProcessor::new(template.to_string());
 
     let messages = [spec::ChatMessage::User {
         role: "user".to_string(),
@@ -230,8 +227,24 @@ fn test_chat_template_with_tokens_unit_test() {
         .map(|msg| serde_json::to_value(msg).unwrap())
         .collect();
 
+    // Use template_kwargs to pass tokens
+    let mut template_kwargs = std::collections::HashMap::new();
+    template_kwargs.insert(
+        "start_token".to_string(),
+        serde_json::Value::String("<s>".to_string()),
+    );
+    template_kwargs.insert(
+        "end_token".to_string(),
+        serde_json::Value::String("</s>".to_string()),
+    );
+
+    let params = ChatTemplateParams {
+        template_kwargs: Some(&template_kwargs),
+        ..Default::default()
+    };
+
     let result = processor
-        .apply_chat_template(&message_values, false)
+        .apply_chat_template(&message_values, params)
         .unwrap();
     assert!(result.contains("<s>"));
     assert!(result.contains("</s>"));
diff --git a/sgl-router/tests/chat_template_integration.rs b/sgl-router/tests/chat_template_integration.rs
index 95cea27c0..4bdfe2008 100644
--- a/sgl-router/tests/chat_template_integration.rs
+++ b/sgl-router/tests/chat_template_integration.rs
@@ -1,6 +1,7 @@
 use sglang_router_rs::protocols::spec;
 use sglang_router_rs::tokenizer::chat_template::{
-    detect_chat_template_content_format, ChatTemplateContentFormat, ChatTemplateProcessor,
+    detect_chat_template_content_format, ChatTemplateContentFormat, ChatTemplateParams,
+    ChatTemplateProcessor,
 };
 
 #[test]
@@ -14,11 +15,7 @@ fn test_simple_chat_template() {
 {%- endif %}
 "#;
 
-    let processor = ChatTemplateProcessor::new(
-        template.to_string(),
-        Some("<s>".to_string()),
-        Some("</s>".to_string()),
-    );
+    let processor = ChatTemplateProcessor::new(template.to_string());
 
     let messages = [spec::ChatMessage::User {
         role: "user".to_string(),
@@ -32,8 +29,12 @@ fn test_simple_chat_template() {
         .map(|msg| serde_json::to_value(msg).unwrap())
         .collect();
 
+    let params = ChatTemplateParams {
+        add_generation_prompt: true,
+        ..Default::default()
+    };
     let result = processor
-        .apply_chat_template(&message_values, true)
+        .apply_chat_template(&message_values, params)
         .unwrap();
     assert!(result.contains("<|user|>Test<|end|>"));
     assert!(result.contains("<|assistant|>"));
@@ -41,19 +42,15 @@ fn test_simple_chat_template() {
 
 #[test]
 fn test_chat_template_with_tokens() {
-    // Template that uses special tokens
+    // Template that uses template kwargs for tokens
     let template = r#"
-{{ bos_token }}
+{%- if bos_token -%}{{ bos_token }}{%- endif -%}
 {%- for message in messages -%}
-{{ message.role }}: {{ message.content }}{{ eos_token }}
+{{ message.role }}: {{ message.content }}{%- if eos_token -%}{{ eos_token }}{%- endif -%}
 {% endfor -%}
 "#;
 
-    let processor = ChatTemplateProcessor::new(
-        template.to_string(),
-        Some("<s>".to_string()),
-        Some("</s>".to_string()),
-    );
+    let processor = ChatTemplateProcessor::new(template.to_string());
 
     let messages = [spec::ChatMessage::User {
         role: "user".to_string(),
@@ -67,8 +64,24 @@ fn test_chat_template_with_tokens() {
         .map(|msg| serde_json::to_value(msg).unwrap())
         .collect();
 
+    // Use template_kwargs to pass tokens
+    let mut template_kwargs = std::collections::HashMap::new();
+    template_kwargs.insert(
+        "bos_token".to_string(),
+        serde_json::Value::String("<s>".to_string()),
+    );
+    template_kwargs.insert(
+        "eos_token".to_string(),
+        serde_json::Value::String("</s>".to_string()),
+    );
+
+    let params = ChatTemplateParams {
+        template_kwargs: Some(&template_kwargs),
+        ..Default::default()
+    };
+
     let result = processor
-        .apply_chat_template(&message_values, false)
+        .apply_chat_template(&message_values, params)
         .unwrap();
     assert!(result.contains("<s>"));
     assert!(result.contains("</s>"));
@@ -85,7 +98,7 @@ fn test_llama_style_template() {
     {%- set system_message = '' -%}
 {%- endif -%}
 
-{{- bos_token }}
+{{- bos_token if bos_token else '<|begin_of_text|>' }}
 {%- if system_message %}
 {{- '<|start_header_id|>system<|end_header_id|>\n\n' + system_message + '<|eot_id|>' }}
 {%- endif %}
@@ -99,11 +112,7 @@ fn test_llama_style_template() {
 {%- endif %}
 "#;
 
-    let processor = ChatTemplateProcessor::new(
-        template.to_string(),
-        Some("<|begin_of_text|>".to_string()),
-        Some("<|end_of_text|>".to_string()),
-    );
+    let processor = ChatTemplateProcessor::new(template.to_string());
 
     let messages = vec![
         spec::ChatMessage::System {
@@ -124,7 +133,21 @@ fn test_llama_style_template() {
         .map(|msg| serde_json::to_value(msg).unwrap())
         .collect();
 
-    let result = processor.apply_chat_template(&json_messages, true).unwrap();
+    // Use template_kwargs to pass the token
+    let mut template_kwargs = std::collections::HashMap::new();
+    template_kwargs.insert(
+        "bos_token".to_string(),
+        serde_json::Value::String("<|begin_of_text|>".to_string()),
+    );
+
+    let params = ChatTemplateParams {
+        add_generation_prompt: true,
+        template_kwargs: Some(&template_kwargs),
+        ..Default::default()
+    };
+    let result = processor
+        .apply_chat_template(&json_messages, params)
+        .unwrap();
 
     // Check that the result contains expected markers
     assert!(result.contains("<|begin_of_text|>"));
@@ -147,7 +170,7 @@ fn test_chatml_template() {
 {%- endif %}
 "#;
 
-    let processor = ChatTemplateProcessor::new(template.to_string(), None, None);
+    let processor = ChatTemplateProcessor::new(template.to_string());
 
     let messages = vec![
         spec::ChatMessage::User {
@@ -176,7 +199,15 @@ fn test_chatml_template() {
         .map(|msg| serde_json::to_value(msg).unwrap())
         .collect();
 
-    let result = processor.apply_chat_template(&json_messages, true).unwrap();
+    let result = processor
+        .apply_chat_template(
+            &json_messages,
+            ChatTemplateParams {
+                add_generation_prompt: true,
+                ..Default::default()
+            },
+        )
+        .unwrap();
 
     // Check ChatML format
     assert!(result.contains("<|im_start|>user\nHello<|im_end|>"));
@@ -196,7 +227,7 @@ assistant:
 {%- endif -%}
 "#;
 
-    let processor = ChatTemplateProcessor::new(template.to_string(), None, None);
+    let processor = ChatTemplateProcessor::new(template.to_string());
 
     let messages = [spec::ChatMessage::User {
         role: "user".to_string(),
@@ -212,12 +243,20 @@ assistant:
 
     // Test without generation prompt
     let result = processor
-        .apply_chat_template(&json_messages, false)
+        .apply_chat_template(&json_messages, ChatTemplateParams::default())
         .unwrap();
     assert_eq!(result.trim(), "user: Test");
 
     // Test with generation prompt
-    let result_with_prompt = processor.apply_chat_template(&json_messages, true).unwrap();
+    let result_with_prompt = processor
+        .apply_chat_template(
+            &json_messages,
+            ChatTemplateParams {
+                add_generation_prompt: true,
+                ..Default::default()
+            },
+        )
+        .unwrap();
     assert!(result_with_prompt.contains("assistant:"));
 }
 
@@ -225,10 +264,12 @@ assistant:
 fn test_empty_messages_template() {
     let template = r#"{% for msg in messages %}{{ msg.role }}: {{ msg.content }}\n{% endfor %}"#;
 
-    let processor = ChatTemplateProcessor::new(template.to_string(), None, None);
+    let processor = ChatTemplateProcessor::new(template.to_string());
 
     let messages: Vec<serde_json::Value> = vec![];
-    let result = processor.apply_chat_template(&messages, false).unwrap();
+    let result = processor
+        .apply_chat_template(&messages, ChatTemplateParams::default())
+        .unwrap();
     assert_eq!(result, "");
 }
 
@@ -279,7 +320,7 @@ fn test_template_with_multimodal_content() {
 {% endfor %}
 "#;
 
-    let processor = ChatTemplateProcessor::new(template.to_string(), None, None);
+    let processor = ChatTemplateProcessor::new(template.to_string());
 
     let messages = [spec::ChatMessage::User {
         role: "user".to_string(),
@@ -304,7 +345,7 @@ fn test_template_with_multimodal_content() {
         .collect();
 
     let result = processor
-        .apply_chat_template(&json_messages, false)
+        .apply_chat_template(&json_messages, ChatTemplateParams::default())
         .unwrap();
 
     // Should contain both text and image parts
diff --git a/sgl-router/tests/chat_template_loading.rs b/sgl-router/tests/chat_template_loading.rs
index 7a03337fc..ac60a6867 100644
--- a/sgl-router/tests/chat_template_loading.rs
+++ b/sgl-router/tests/chat_template_loading.rs
@@ -1,6 +1,7 @@
 #[cfg(test)]
 mod tests {
     use sglang_router_rs::protocols::spec;
+    use sglang_router_rs::tokenizer::chat_template::ChatTemplateParams;
     use sglang_router_rs::tokenizer::huggingface::HuggingFaceTokenizer;
     use std::fs;
     use tempfile::TempDir;
@@ -79,7 +80,14 @@ mod tests {
             .map(|msg| serde_json::to_value(msg).unwrap())
             .collect();
 
-        let result = tokenizer.apply_chat_template(&json_messages, true).unwrap();
+        use sglang_router_rs::tokenizer::chat_template::ChatTemplateParams;
+        let params = ChatTemplateParams {
+            add_generation_prompt: true,
+            ..Default::default()
+        };
+        let result = tokenizer
+            .apply_chat_template(&json_messages, params)
+            .unwrap();
 
         // Verify the custom template format
         assert!(result.contains("<|user|>Hello"));
@@ -150,7 +158,7 @@ mod tests {
             .collect();
 
         let result = tokenizer
-            .apply_chat_template(&json_messages, false)
+            .apply_chat_template(&json_messages, ChatTemplateParams::default())
             .unwrap();
 
         // Should use CUSTOM template, not built-in
@@ -219,7 +227,7 @@ mod tests {
             .collect();
 
         let result = tokenizer
-            .apply_chat_template(&json_messages, false)
+            .apply_chat_template(&json_messages, ChatTemplateParams::default())
             .unwrap();
 
         assert!(result.starts_with("NEW:"));