diff --git a/CHANGELOG.md b/CHANGELOG.md
index 69337d08a..44b80bd04 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,6 +2,10 @@
 
 ## What's new in 4.0.31
 
+### Improvements
+
+- **RovoDev**: Collapsed completed tool call results in the thinking drawer for a more compact chat view. Users can still expand the drawer to see details.
+
 ### Bug Fixes
 
 - **RovoDev**: Hid stack traces, stderr, and log details from external users while preserving them for Atlassian users.
diff --git a/src/rovo-dev/ui/RovoDev.css b/src/rovo-dev/ui/RovoDev.css
index 29a3a078b..81d829553 100644
--- a/src/rovo-dev/ui/RovoDev.css
+++ b/src/rovo-dev/ui/RovoDev.css
@@ -302,6 +302,21 @@ body {
     word-break: break-all;
 }
 
+.tool-return-collapsed {
+    border: none;
+    padding: 2px 6px;
+    margin-bottom: 2px;
+    gap: 6px;
+}
+
+.tool-return-collapsed-text {
+    font-size: 12px;
+    color: var(--vscode-input-placeholderForeground);
+    white-space: nowrap;
+    overflow: hidden;
+    text-overflow: ellipsis;
+}
+
 .tool-return-bash-command {
     pre {
         margin: 0;
diff --git a/src/rovo-dev/ui/common/common.tsx b/src/rovo-dev/ui/common/common.tsx
index 8afd17014..46c710137 100644
--- a/src/rovo-dev/ui/common/common.tsx
+++ b/src/rovo-dev/ui/common/common.tsx
@@ -215,6 +215,7 @@ export const renderChatHistory = (
     retryAfterError: () => void,
     onError: (error: Error, errorMessage: string) => void,
     isAtlassianUser?: boolean,
+    collapsedToolReturns?: boolean,
 ) => {
     switch (msg.event_kind) {
         case 'tool-return':
@@ -223,7 +224,15 @@ export const renderChatHistory = (
                 if (message.todoData) {
                     return <ToDoList key={index} todos={message.todoData} />;
                 }
-                return <ToolReturnParsedItem key={index} msg={message} openFile={openFile} onLinkClick={onLinkClick} />;
+                return (
+                    <ToolReturnParsedItem
+                        key={index}
+                        msg={message}
+                        openFile={openFile}
+                        onLinkClick={onLinkClick}
+                        collapsed={collapsedToolReturns}
+                    />
+                );
             });
         case '_RovoDevDialog':
             let customButton: { text: string; onClick: () => void } | undefined = undefined;
diff --git a/src/rovo-dev/ui/messaging/MessageDrawer.tsx b/src/rovo-dev/ui/messaging/MessageDrawer.tsx
index 41a44461c..7e65ff286 100644
--- a/src/rovo-dev/ui/messaging/MessageDrawer.tsx
+++ b/src/rovo-dev/ui/messaging/MessageDrawer.tsx
@@ -80,6 +80,7 @@ export const MessageDrawer: React.FC<MessageDrawerProps> = ({
                         retryPromptAfterError,
                         onError,
                         isAtlassianUser,
+                        true, // collapse tool returns for compact display
                     ),
                 )}
             </div>
diff --git a/src/rovo-dev/ui/tools/ToolReturnItem.test.tsx b/src/rovo-dev/ui/tools/ToolReturnItem.test.tsx
index c0fef7d1a..b7fbdf546 100644
--- a/src/rovo-dev/ui/tools/ToolReturnItem.test.tsx
+++ b/src/rovo-dev/ui/tools/ToolReturnItem.test.tsx
@@ -124,4 +124,65 @@ describe('ToolReturnParsedItem', () => {
             render(<ToolReturnParsedItem msg={msg} openFile={mockOpenFile} onLinkClick={mockOnLinkClick} />);
         }).not.toThrow();
     });
+
+    test('renders collapsed view with content and title', () => {
+        const msg: ToolReturnParseResult = {
+            content: 'Replaced code',
+            title: 'myFile.ts',
+            type: 'modify',
+            filePath: '/path/to/myFile.ts',
+        };
+
+        const { getByText, container } = render(
+            <ToolReturnParsedItem msg={msg} openFile={mockOpenFile} onLinkClick={mockOnLinkClick} collapsed={true} />,
+        );
+
+        expect(container.querySelector('.tool-return-collapsed')).toBeTruthy();
+        expect(getByText('Replaced code — myFile.ts')).toBeTruthy();
+    });
+
+    test('renders collapsed view with content only (no title)', () => {
+        const msg: ToolReturnParseResult = {
+            content: 'Searched files',
+            type: 'open',
+        };
+
+        const { getByText, container } = render(
+            <ToolReturnParsedItem msg={msg} openFile={mockOpenFile} onLinkClick={mockOnLinkClick} collapsed={true} />,
+        );
+
+        expect(container.querySelector('.tool-return-collapsed')).toBeTruthy();
+        expect(getByText('Searched files')).toBeTruthy();
+    });
+
+    test('collapsed view calls openFile when clicked with filePath', () => {
+        const filePath = '/path/to/file.ts';
+        const msg: ToolReturnParseResult = {
+            content: 'Opened file',
+            type: 'open',
+            filePath,
+        };
+
+        const { getByText } = render(
+            <ToolReturnParsedItem msg={msg} openFile={mockOpenFile} onLinkClick={mockOnLinkClick} collapsed={true} />,
+        );
+
+        fireEvent.click(getByText('Opened file'));
+        expect(mockOpenFile).toHaveBeenCalledWith(filePath);
+    });
+
+    test('renders expanded view by default (collapsed=false)', () => {
+        const msg: ToolReturnParseResult = {
+            content: 'Replaced code',
+            title: 'myFile.ts',
+            type: 'modify',
+            filePath: '/path/to/myFile.ts',
+        };
+
+        const { container } = render(
+            <ToolReturnParsedItem msg={msg} openFile={mockOpenFile} onLinkClick={mockOnLinkClick} />,
+        );
+
+        expect(container.querySelector('.tool-return-collapsed')).toBeNull();
+    });
 });
diff --git a/src/rovo-dev/ui/tools/ToolReturnItem.tsx b/src/rovo-dev/ui/tools/ToolReturnItem.tsx
index 8d509f389..2cf6e1305 100644
--- a/src/rovo-dev/ui/tools/ToolReturnItem.tsx
+++ b/src/rovo-dev/ui/tools/ToolReturnItem.tsx
@@ -13,7 +13,8 @@ export const ToolReturnParsedItem: React.FC<{
     msg: ToolReturnParseResult;
     openFile: OpenFileFunc;
     onLinkClick: (href: string) => void;
-}> = ({ msg, openFile, onLinkClick }) => {
+    collapsed?: boolean;
+}> = ({ msg, openFile, onLinkClick, collapsed = false }) => {
     const toolIcon = React.useMemo(() => (msg.type ? iconMap[msg.type] : undefined), [msg.type]);
 
     const filePathClass = msg.filePath && msg.type !== 'delete' ? 'tool-return-file-path' : '';
@@ -28,6 +29,21 @@ export const ToolReturnParsedItem: React.FC<{
         [msg.filePath, msg.type, openFile],
     );
 
+    if (collapsed) {
+        return (
+            <a
+                className={`tool-return-item-base tool-return-item tool-return-collapsed ${filePathClass}`}
+                onClick={handleOpenFile}
+            >
+                {toolIcon}
+                <span className="tool-return-collapsed-text">
+                    {msg.content ?? ''}
+                    {msg.title ? ` — ${msg.title}` : ''}
+                </span>
+            </a>
+        );
+    }
+
     return (
         <a className={`tool-return-item-base tool-return-item ${filePathClass}`} onClick={handleOpenFile}>
             {toolIcon}