diff --git a/frontend/__tests__/utils/handle-event-for-ui.test.ts b/frontend/__tests__/utils/handle-event-for-ui.test.ts
index dde84629c2..51ac8df4a5 100644
--- a/frontend/__tests__/utils/handle-event-for-ui.test.ts
+++ b/frontend/__tests__/utils/handle-event-for-ui.test.ts
@@ -138,4 +138,72 @@ describe("handleEventForUI", () => {
       anotherActionEvent,
     ]);
   });
+
+  it("should NOT replace ThinkAction with ThinkObservation", () => {
+    const mockThinkAction: ActionEvent = {
+      id: "test-think-action-1",
+      timestamp: Date.now().toString(),
+      source: "agent",
+      thought: [{ type: "text", text: "I am thinking..." }],
+      thinking_blocks: [],
+      action: {
+        kind: "ThinkAction",
+        thought: "I am thinking...",
+      },
+      tool_name: "think",
+      tool_call_id: "call_think_1",
+      tool_call: {
+        id: "call_think_1",
+        type: "function",
+        function: {
+          name: "think",
+          arguments: "",
+        },
+      },
+      llm_response_id: "response_think",
+      security_risk: SecurityRisk.UNKNOWN,
+    };
+
+    const mockThinkObservation: ObservationEvent = {
+      id: "test-think-observation-1",
+      timestamp: Date.now().toString(),
+      source: "environment",
+      tool_name: "think",
+      tool_call_id: "call_think_1",
+      observation: {
+        kind: "ThinkObservation",
+        content: [{ type: "text", text: "Your thought has been logged." }],
+      },
+      action_id: "test-think-action-1",
+    };
+
+    const initialUiEvents = [mockMessageEvent, mockThinkAction];
+    const result = handleEventForUI(mockThinkObservation, initialUiEvents);
+
+    // ThinkObservation should NOT be added - ThinkAction should remain
+    expect(result).toEqual([mockMessageEvent, mockThinkAction]);
+    expect(result).not.toBe(initialUiEvents);
+  });
+
+  it("should NOT add ThinkObservation even when ThinkAction is not found", () => {
+    const mockThinkObservation: ObservationEvent = {
+      id: "test-think-observation-1",
+      timestamp: Date.now().toString(),
+      source: "environment",
+      tool_name: "think",
+      tool_call_id: "call_think_1",
+      observation: {
+        kind: "ThinkObservation",
+        content: [{ type: "text", text: "Your thought has been logged." }],
+      },
+      action_id: "test-think-action-not-found",
+    };
+
+    const initialUiEvents = [mockMessageEvent];
+    const result = handleEventForUI(mockThinkObservation, initialUiEvents);
+
+    // ThinkObservation should never be added to uiEvents
+    expect(result).toEqual([mockMessageEvent]);
+    expect(result).not.toBe(initialUiEvents);
+  });
 });
diff --git a/frontend/src/utils/handle-event-for-ui.ts b/frontend/src/utils/handle-event-for-ui.ts
index 1d291192cc..fe00605005 100644
--- a/frontend/src/utils/handle-event-for-ui.ts
+++ b/frontend/src/utils/handle-event-for-ui.ts
@@ -4,6 +4,7 @@ import { isObservationEvent } from "#/types/v1/type-guards";
 /**
  * Handles adding an event to the UI events array
  * Replaces actions with observations when they arrive (so UI shows observation instead of action)
+ * Exception: ThinkAction is NOT replaced because the thought content is in the action, not in the observation
  */
 export const handleEventForUI = (
   event: OpenHandsEvent,
@@ -12,12 +13,17 @@ export const handleEventForUI = (
   const newUiEvents = [...uiEvents];
 
   if (isObservationEvent(event)) {
+    // Don't add ThinkObservation at all - we keep the ThinkAction instead
+    // The thought content is in the action, not the observation
+    if (event.observation.kind === "ThinkObservation") {
+      return newUiEvents;
+    }
+
     // Find and replace the corresponding action from uiEvents
     const actionIndex = newUiEvents.findIndex(
       (uiEvent) => uiEvent.id === event.action_id,
     );
     if (actionIndex !== -1) {
-      // Replace the action with the observation
       newUiEvents[actionIndex] = event;
     } else {
       // Action not found in uiEvents, just add the observation