diff --git a/gptme/tools/python.py b/gptme/tools/python.py
index d44078f7..0a829f12 100644
--- a/gptme/tools/python.py
+++ b/gptme/tools/python.py
@@ -7,8 +7,11 @@
 import dataclasses
 import functools
 import importlib.util
+import io
 import re
+import sys
 from collections.abc import Callable, Generator
+from contextlib import contextmanager
 from logging import getLogger
 from typing import TYPE_CHECKING, TypeVar
 
@@ -23,7 +26,7 @@
 )
 
 if TYPE_CHECKING:
-    from IPython.terminal.embed import InteractiveShellEmbed  # fmt: skip
+    from IPython.core.interactiveshell import InteractiveShell  # fmt: skip
 
 logger = getLogger(__name__)
 
@@ -32,7 +35,7 @@
 #       https://github.com/ErikBjare/gptme/issues/29
 
 # IPython instance
-_ipython: "InteractiveShellEmbed | None" = None
+_ipython: "InteractiveShell | None" = None
 
 
 registered_functions: dict[str, Callable] = {}
@@ -51,15 +54,47 @@ def register_function(func: T) -> T:
 
 def _get_ipython():
     global _ipython
-    from IPython.terminal.embed import InteractiveShellEmbed  # fmt: skip
+    from IPython.core.interactiveshell import InteractiveShell  # fmt: skip
 
     if _ipython is None:
-        _ipython = InteractiveShellEmbed()
+        _ipython = InteractiveShell()
         _ipython.push(registered_functions)
 
     return _ipython
 
 
+class TeeIO(io.StringIO):
+    def __init__(self, original_stream):
+        super().__init__()
+        self.original_stream = original_stream
+        self.in_result_block = False
+
+    def write(self, s):
+        # hack to get rid of ipython result-prompt ("Out[0]: ...") and everything after it
+        if s.startswith("Out["):
+            self.in_result_block = True
+        if self.in_result_block:
+            if s.startswith("\n"):
+                self.in_result_block = False
+            else:
+                s = ""
+        self.original_stream.write(s)
+        self.original_stream.flush()  # Ensure immediate display
+        return super().write(s)
+
+
+@contextmanager
+def capture_and_display():
+    stdout_capture = TeeIO(sys.stdout)
+    stderr_capture = TeeIO(sys.stderr)
+    old_stdout, old_stderr = sys.stdout, sys.stderr
+    sys.stdout, sys.stderr = stdout_capture, stderr_capture
+    try:
+        yield stdout_capture, stderr_capture
+    finally:
+        sys.stdout, sys.stderr = old_stdout, old_stderr
+
+
 def execute_python(
     code: str | None,
     args: list[str] | None,
@@ -67,6 +102,7 @@ def execute_python(
     confirm: ConfirmFunc = lambda _: True,
 ) -> Generator[Message, None, None]:
     """Executes a python codeblock and returns the output."""
+    from IPython.core.interactiveshell import ExecutionResult  # fmt: skip
 
     if code is not None and args is not None:
         code = code.strip()
@@ -84,12 +120,15 @@ def execute_python(
     # Create an IPython instance if it doesn't exist yet
     _ipython = _get_ipython()
 
-    # Capture the standard output and error streams
-    from IPython.utils.capture import capture_output  # fmt: skip
+    # Capture and display output in real-time
+    with capture_and_display() as (stdout_capture, stderr_capture):
+        # Execute the code (output will be displayed in real-time)
+        result: ExecutionResult = _ipython.run_cell(
+            code, silent=False, store_history=False
+        )
 
-    with capture_output() as captured:
-        # Execute the code
-        result = _ipython.run_cell(code, silent=False, store_history=False)
+    captured_stdout = stdout_capture.getvalue()
+    captured_stderr = stderr_capture.getvalue()
 
     output = ""
     # TODO: should we include captured stdout with messages like these?
@@ -102,16 +141,16 @@ def execute_python(
         output += f"Result:\n```\n{result.result}\n```\n\n"
 
     # only show stdout if there is no result
-    elif captured.stdout:
-        output += f"```stdout\n{captured.stdout.rstrip()}\n```\n\n"
-    if captured.stderr:
-        output += f"```stderr\n{captured.stderr.rstrip()}\n```\n\n"
+    elif captured_stdout:
+        output += f"```stdout\n{captured_stdout.rstrip()}\n```\n\n"
+    if captured_stderr:
+        output += f"```stderr\n{captured_stderr.rstrip()}\n```\n\n"
     if result.error_in_exec:
         tb = result.error_in_exec.__traceback__
-        while tb.tb_next:  # type: ignore
-            tb = tb.tb_next  # type: ignore
-        # type: ignore
-        output += f"Exception during execution on line {tb.tb_lineno}:\n  {result.error_in_exec.__class__.__name__}: {result.error_in_exec}"
+        while tb and tb.tb_next:
+            tb = tb.tb_next
+        if tb:
+            output += f"Exception during execution on line {tb.tb_lineno}:\n  {result.error_in_exec.__class__.__name__}: {result.error_in_exec}"
 
     # strip ANSI escape sequences
     # TODO: better to signal to the terminal that we don't want colors?