diff --git a/internal/toolcall/toolcalls_parse.go b/internal/toolcall/toolcalls_parse.go
index f15c130..772b297 100644
--- a/internal/toolcall/toolcalls_parse.go
+++ b/internal/toolcall/toolcalls_parse.go
@@ -216,6 +216,7 @@ func updateCDATAStateForStrip(inCDATA bool, cdataFenceMarker, line string) (bool
 	pos := 0
 	state := inCDATA
 	fenceMarker := cdataFenceMarker
+	lineForFence := line
 	if !state {
 		start := strings.Index(lower[pos:], "<![cdata[")
 		if start < 0 {
@@ -223,12 +224,13 @@ func updateCDATAStateForStrip(inCDATA bool, cdataFenceMarker, line string) (bool
 		}
 		pos += start + len("<![cdata[")
 		state = true
+		lineForFence = line[pos:]
 	}
 	if !state {
 		return false, ""
 	}
 
-	trimmed := strings.TrimLeft(line, " \t")
+	trimmed := strings.TrimLeft(lineForFence, " \t")
 	if fenceMarker == "" {
 		if marker, ok := parseFenceOpen(trimmed); ok {
 			fenceMarker = marker
diff --git a/internal/toolcall/toolcalls_test.go b/internal/toolcall/toolcalls_test.go
index 0158fbb..1e03774 100644
--- a/internal/toolcall/toolcalls_test.go
+++ b/internal/toolcall/toolcalls_test.go
@@ -171,6 +171,28 @@ func TestParseToolCallsKeepsHereDocCDATAWithFencedDSMLAndLiteralCDATAEnd(t *test
 	}
 }
 
+func TestParseToolCallsKeepsCompactCDATAWithImmediateFencedDSML(t *testing.T) {
+	content := strings.Join([]string{
+		"```xml",
+		`<|DSML|tool_calls>`,
+		`  <|DSML|invoke name="Bash">`,
+		`    <|DSML|parameter name="command"><![CDATA[echo compact]]></|DSML|parameter>`,
+		`  </|DSML|invoke>`,
+		`</|DSML|tool_calls>`,
+		"```",
+		"tail",
+	}, "\n")
+	text := `<tool_calls><invoke name="Write"><parameter name="content"><![CDATA[` + content + `]]></parameter></invoke></tool_calls>`
+
+	calls := ParseToolCalls(text, []string{"Write"})
+	if len(calls) != 1 {
+		t.Fatalf("expected one compact CDATA call, got %#v", calls)
+	}
+	if calls[0].Input["content"] != content {
+		t.Fatalf("expected compact CDATA content to survive, got %#v", calls[0].Input["content"])
+	}
+}
+
 func TestParseToolCallsPreservesSimpleCDATAInlineMarkupAsText(t *testing.T) {
 	text := `<tool_calls><invoke name="Write"><parameter name="description"><![CDATA[<b>urgent</b>]]></parameter></invoke></tool_calls>`
 	calls := ParseToolCalls(text, []string{"Write"})
diff --git a/internal/toolstream/tool_sieve_xml_test.go b/internal/toolstream/tool_sieve_xml_test.go
index ab1aa38..ce2ee77 100644
--- a/internal/toolstream/tool_sieve_xml_test.go
+++ b/internal/toolstream/tool_sieve_xml_test.go
@@ -331,6 +331,51 @@ func TestProcessToolSieveKeepsExtremeHereDocCDATAUntilOuterClose(t *testing.T) {
 	}
 }
 
+func TestProcessToolSieveKeepsCompactCDATAWithImmediateFencedDSML(t *testing.T) {
+	var state State
+	content := strings.Join([]string{
+		"```xml",
+		`<|DSML|tool_calls>`,
+		`  <|DSML|invoke name="Bash">`,
+		`    <|DSML|parameter name="command"><![CDATA[echo compact]]></|DSML|parameter>`,
+		`  </|DSML|invoke>`,
+		`</|DSML|tool_calls>`,
+		"```",
+		"tail",
+	}, "\n")
+	chunks := []string{
+		`<tool_calls><invoke name="Write"><parameter name="content"><![CDATA[` + content[:len("```xml\n")],
+		content[len("```xml\n"):],
+		`]]></parameter></invoke></tool_calls>`,
+	}
+
+	var events []Event
+	for _, c := range chunks {
+		events = append(events, ProcessChunk(&state, c, []string{"Write"})...)
+	}
+	events = append(events, Flush(&state, []string{"Write"})...)
+
+	var textContent strings.Builder
+	var gotContent string
+	toolCalls := 0
+	for _, evt := range events {
+		textContent.WriteString(evt.Content)
+		if len(evt.ToolCalls) > 0 {
+			toolCalls += len(evt.ToolCalls)
+			gotContent, _ = evt.ToolCalls[0].Input["content"].(string)
+		}
+	}
+	if toolCalls != 1 {
+		t.Fatalf("expected one compact CDATA tool call, got %d events=%#v", toolCalls, events)
+	}
+	if textContent.Len() != 0 {
+		t.Fatalf("expected no leaked text, got %q", textContent.String())
+	}
+	if gotContent != content {
+		t.Fatalf("expected compact CDATA content to survive, got len=%d want=%d", len(gotContent), len(content))
+	}
+}
+
 func TestProcessToolSieveFallsBackWhenCDATANeverCloses(t *testing.T) {
 	var state State
 	chunks := []string{