diff --git a/src/components/chat/AgentMessage.tsx b/src/components/chat/AgentMessage.tsx
index 84b8266..676d214 100644
--- a/src/components/chat/AgentMessage.tsx
+++ b/src/components/chat/AgentMessage.tsx
@@ -5,6 +5,7 @@ import ReactMarkdown from 'react-markdown';
 import remarkGfm from 'remark-gfm';
 import { ChatMessage } from '@/types';
 import { Copy, Check } from 'lucide-react';
+import ExecutionTrace from './ExecutionTrace';
 
 interface AgentMessageProps {
   message: ChatMessage;
@@ -241,6 +242,12 @@ export default function AgentMessage({ message, onCopy }: AgentMessageProps) {
           {renderContent()}
         </ReactMarkdown>
       </div>
+      
+      {/* Execution Trace */}
+      {message.metadata?.executionTrace && (
+        <ExecutionTrace trace={message.metadata.executionTrace} />
+      )}
+      
       <button
         onClick={handleCopy}
         className="absolute top-0 right-0 opacity-0 group-hover:opacity-100 transition-opacity p-1 text-gray-400 hover:text-white"
diff --git a/src/components/chat/ExecutionTrace.tsx b/src/components/chat/ExecutionTrace.tsx
new file mode 100644
index 0000000..dc1cfe6
--- /dev/null
+++ b/src/components/chat/ExecutionTrace.tsx
@@ -0,0 +1,184 @@
+'use client';
+
+import React, { useState } from 'react';
+import type { ExecutionTrace, ExecutionStep } from '@/types';
+import { ChevronDown, ChevronRight, Brain, Zap, Wrench, CheckCircle, XCircle, Clock, Cpu } from 'lucide-react';
+
+interface ExecutionTraceProps {
+  trace: ExecutionTrace;
+}
+
+export default function ExecutionTrace({ trace }: ExecutionTraceProps) {
+  const [expandedSteps, setExpandedSteps] = useState<Set<string>>(new Set());
+  const [isExpanded, setIsExpanded] = useState(false);
+
+  const toggleStep = (stepId: string) => {
+    const newExpanded = new Set(expandedSteps);
+    if (newExpanded.has(stepId)) {
+      newExpanded.delete(stepId);
+    } else {
+      newExpanded.add(stepId);
+    }
+    setExpandedSteps(newExpanded);
+  };
+
+  const getStepIcon = (type: ExecutionStep['type']) => {
+    switch (type) {
+      case 'thought':
+        return <Brain className="h-4 w-4 text-purple-400" />;
+      case 'action':
+        return <Zap className="h-4 w-4 text-blue-400" />;
+      case 'tool_call':
+        return <Wrench className="h-4 w-4 text-orange-400" />;
+      case 'result':
+        return <CheckCircle className="h-4 w-4 text-green-400" />;
+      case 'error':
+        return <XCircle className="h-4 w-4 text-red-400" />;
+      default:
+        return <Cpu className="h-4 w-4 text-gray-400" />;
+    }
+  };
+
+  const getStepColor = (type: ExecutionStep['type']) => {
+    switch (type) {
+      case 'thought':
+        return 'border-purple-500/30 bg-purple-500/10';
+      case 'action':
+        return 'border-blue-500/30 bg-blue-500/10';
+      case 'tool_call':
+        return 'border-orange-500/30 bg-orange-500/10';
+      case 'result':
+        return 'border-green-500/30 bg-green-500/10';
+      case 'error':
+        return 'border-red-500/30 bg-red-500/10';
+      default:
+        return 'border-gray-500/30 bg-gray-500/10';
+    }
+  };
+
+  const formatDuration = (ms: number) => {
+    if (ms < 1000) return `${ms}ms`;
+    return `${(ms / 1000).toFixed(2)}s`;
+  };
+
+  const renderStep = (step: ExecutionStep, depth: number = 0) => {
+    const isStepExpanded = expandedSteps.has(step.id);
+    const hasSubsteps = step.substeps && step.substeps.length > 0;
+
+    return (
+      <div key={step.id} className={`${depth > 0 ? 'ml-6' : ''}`}>
+        <div 
+          className={`border rounded-lg p-3 mb-2 cursor-pointer transition-all hover:shadow-md ${getStepColor(step.type)}`}
+          onClick={() => hasSubsteps && toggleStep(step.id)}
+        >
+          <div className="flex items-start gap-3">
+            <div className="flex items-center gap-2 flex-1">
+              {hasSubsteps && (
+                <span className="text-gray-400">
+                  {isStepExpanded ? <ChevronDown className="h-4 w-4" /> : <ChevronRight className="h-4 w-4" />}
+                </span>
+              )}
+              {getStepIcon(step.type)}
+              <div className="flex-1">
+                <div className="flex items-center justify-between">
+                  <h4 className="font-semibold text-white text-sm">{step.name}</h4>
+                  <div className="flex items-center gap-2 text-xs text-gray-400">
+                    <Clock className="h-3 w-3" />
+                    <span>{formatDuration(step.duration)}</span>
+                  </div>
+                </div>
+                <p className="text-gray-300 text-sm mt-1">{step.description}</p>
+              </div>
+            </div>
+          </div>
+
+          {/* Step Details */}
+          {step.details && (
+            <div className="mt-3 p-2 bg-black/20 rounded text-xs">
+              <pre className="text-gray-300 whitespace-pre-wrap">
+                {typeof step.details === 'string' 
+                  ? step.details 
+                  : JSON.stringify(step.details, null, 2)
+                }
+              </pre>
+            </div>
+          )}
+        </div>
+
+        {/* Substeps */}
+        {hasSubsteps && isStepExpanded && (
+          <div className="mt-2">
+            {step.substeps!.map(substep => renderStep(substep, depth + 1))}
+          </div>
+        )}
+      </div>
+    );
+  };
+
+  if (!trace || !trace.steps || trace.steps.length === 0) {
+    return null;
+  }
+
+  return (
+    <div className="mt-4 border border-gray-700 rounded-lg overflow-hidden">
+      {/* Header */}
+      <div 
+        className="bg-gray-800/50 px-4 py-3 cursor-pointer hover:bg-gray-800/70 transition-colors"
+        onClick={() => setIsExpanded(!isExpanded)}
+      >
+        <div className="flex items-center justify-between">
+          <div className="flex items-center gap-2">
+            <Cpu className="h-4 w-4 text-blue-400" />
+            <span className="text-sm font-medium text-white">Execution Trace</span>
+            <span className="text-xs text-gray-400">({trace.steps.length} steps)</span>
+          </div>
+          <div className="flex items-center gap-3">
+            <div className="flex items-center gap-1 text-xs text-gray-400">
+              <Clock className="h-3 w-3" />
+              <span>{formatDuration(trace.totalTime)}</span>
+            </div>
+            <ChevronDown 
+              className={`h-4 w-4 text-gray-400 transition-transform ${isExpanded ? 'rotate-180' : ''}`} 
+            />
+          </div>
+        </div>
+      </div>
+
+      {/* Content */}
+      {isExpanded && (
+        <div className="p-4 bg-gray-900/30 max-h-96 overflow-y-auto">
+          {/* Summary */}
+          <div className="mb-4 p-3 bg-gray-800/50 rounded-lg">
+            <div className="grid grid-cols-2 gap-4 text-sm">
+              <div>
+                <span className="text-gray-400">Start Time:</span>
+                <span className="text-white ml-2">
+                  {new Date(trace.startTime).toLocaleTimeString()}
+                </span>
+              </div>
+              <div>
+                <span className="text-gray-400">End Time:</span>
+                <span className="text-white ml-2">
+                  {new Date(trace.endTime).toLocaleTimeString()}
+                </span>
+              </div>
+              <div>
+                <span className="text-gray-400">Total Duration:</span>
+                <span className="text-white ml-2">{formatDuration(trace.totalTime)}</span>
+              </div>
+              <div>
+                <span className="text-gray-400">Steps:</span>
+                <span className="text-white ml-2">{trace.steps.length}</span>
+              </div>
+            </div>
+          </div>
+
+          {/* Steps */}
+          <div className="space-y-2">
+            {trace.steps.map(step => renderStep(step))}
+          </div>
+        </div>
+      )}
+    </div>
+  );
+}
diff --git a/src/components/examples/ExecutionTraceDemo.tsx b/src/components/examples/ExecutionTraceDemo.tsx
new file mode 100644
index 0000000..54c5d15
--- /dev/null
+++ b/src/components/examples/ExecutionTraceDemo.tsx
@@ -0,0 +1,130 @@
+'use client';
+
+import React from 'react';
+import { ExecutionTrace } from '@/types';
+import ExecutionTraceComponent from '@/components/chat/ExecutionTrace';
+
+// Sample execution trace data for demonstration
+const sampleExecutionTrace: ExecutionTrace = {
+  steps: [
+    {
+      id: '1',
+      name: 'Understanding User Query',
+      type: 'thought',
+      timestamp: '2024-03-27T13:15:00.000Z',
+      duration: 150,
+      description: 'Analyzing the user query about vault strategies and identifying key requirements',
+      details: {
+        query: 'What are the best vault strategies for high yield?',
+        intent: 'User wants investment recommendations',
+        entities: ['vault strategies', 'high yield', 'investment']
+      }
+    },
+    {
+      id: '2',
+      name: 'Fetching Vault Data',
+      type: 'action',
+      timestamp: '2024-03-27T13:15:00.150Z',
+      duration: 300,
+      description: 'Retrieving current vault information and performance data',
+      substeps: [
+        {
+          id: '2.1',
+          name: 'Query Vault Registry',
+          type: 'tool_call',
+          timestamp: '2024-03-27T13:15:00.200Z',
+          duration: 120,
+          description: 'Calling vault registry API to get available vaults',
+          details: {
+            tool: 'vault_registry',
+            parameters: { include_performance: true },
+            result: { vaults_found: 15 }
+          }
+        },
+        {
+          id: '2.2',
+          name: 'Filter High-Performance Vaults',
+          type: 'action',
+          timestamp: '2024-03-27T13:15:00.320Z',
+          duration: 80,
+          description: 'Filtering vaults based on APY and risk metrics',
+          details: {
+            criteria: { min_apy: 8, max_risk: 'medium' },
+            filtered_count: 7
+          }
+        }
+      ]
+    },
+    {
+      id: '3',
+      name: 'Analysis and Ranking',
+      type: 'thought',
+      timestamp: '2024-03-27T13:15:00.450Z',
+      duration: 200,
+      description: 'Analyzing vault performance metrics and ranking by risk-adjusted returns',
+      details: {
+        metrics: ['apy', 'tvl', 'volatility', 'risk_score'],
+        ranking_method: 'sharpe_ratio_weighted'
+      }
+    },
+    {
+      id: '4',
+      name: 'Generate Recommendations',
+      type: 'result',
+      timestamp: '2024-03-27T13:15:01.150Z',
+      duration: 100,
+      description: 'Creating personalized recommendations based on user preferences',
+      details: {
+        recommendations: [
+          {
+            vault_name: 'Stable Yield Plus',
+            apy: 12.5,
+            risk_level: 'low',
+            confidence: 0.95
+          },
+          {
+            vault_name: 'Growth Strategy Alpha',
+            apy: 18.2,
+            risk_level: 'medium',
+            confidence: 0.88
+          }
+        ]
+      }
+    }
+  ],
+  totalTime: 750,
+  startTime: '2024-03-27T13:15:00.000Z',
+  endTime: '2024-03-27T13:15:01.150Z'
+};
+
+export function ExecutionTraceDemo() {
+  return (
+    <div className="p-6 max-w-4xl mx-auto">
+      <div className="mb-6">
+        <h2 className="text-2xl font-bold text-white mb-2">Execution Trace Demo</h2>
+        <p className="text-gray-400">
+          This demonstrates how execution traces will appear when the backend provides agent thought-processes.
+        </p>
+      </div>
+      
+      <div className="bg-gray-800 rounded-lg p-4 mb-6">
+        <h3 className="text-lg font-semibold text-white mb-2">Sample Agent Response:</h3>
+        <div className="text-gray-300">
+          Based on your query about high-yield vault strategies, I've analyzed the current market and identified two excellent options:
+          
+          <div className="mt-4 p-3 bg-gray-700 rounded">
+            <strong>🏦 Stable Yield Plus</strong> - 12.5% APY, Low Risk
+            <br />
+            <strong>📈 Growth Strategy Alpha</strong> - 18.2% APY, Medium Risk
+          </div>
+        </div>
+      </div>
+
+      <ExecutionTraceComponent trace={sampleExecutionTrace} />
+      
+      <div className="mt-6 text-sm text-gray-400">
+        <p><strong>Note:</strong> This is sample data. In production, execution traces will be automatically populated from the backend API response.</p>
+      </div>
+    </div>
+  );
+}
diff --git a/src/store/slices/chatSlice.ts b/src/store/slices/chatSlice.ts
index da8c923..58c111c 100644
--- a/src/store/slices/chatSlice.ts
+++ b/src/store/slices/chatSlice.ts
@@ -103,41 +103,23 @@ export const sendMessage = createAsyncThunk(
         timestamp: new Date().toISOString(),
       };
 
-      // Mock agent response
-      const mockResponse = {
-        result: {
-          success: true,
-          data: `Mock agent response to: "${query}". This is a simulated response since backend is disconnected.`,
-          error: null,
-          metadata: {
-            type: 'info',
-            action: 'mock',
-            amount: null,
-            asset: null,
-            requiresConfirmation: false,
-          }
-        }
-      };
+      // Call the API service to get actual response
+      const response = await apiService.queryAgent({ userId, query });
       
-      // Save agent response locally (no server call needed)
+      // Create agent message with execution trace if available
       const agentMessage: ChatMessage = {
         id: `msg_${Date.now()}_${Math.random().toString(36).substr(2, 9)}`,
         type: 'agent',
-        content: mockResponse.result.data,
+        content: response.result.data,
         timestamp: new Date().toISOString(),
         metadata: {
-          success: mockResponse.result.success,
-          error: mockResponse.result.error,
-          transactionHash: null,
-          type: mockResponse.result.metadata?.type,
-          action: mockResponse.result.metadata?.action,
-          amount: mockResponse.result.metadata?.amount,
-          asset: mockResponse.result.metadata?.asset,
-          requiresConfirmation: mockResponse.result.metadata?.requiresConfirmation,
+          success: response.result.success,
+          error: response.result.error,
+          executionTrace: response.result.executionTrace,
         }
       };
 
-      return { response: mockResponse, conversation, userMessage, agentMessage };
+      return { response, conversation, userMessage, agentMessage };
     } catch (error: any) {
       return rejectWithValue(error.response?.data?.message || 'Failed to send message');
     }
diff --git a/src/types/index.ts b/src/types/index.ts
index 97c1b20..ce17520 100644
--- a/src/types/index.ts
+++ b/src/types/index.ts
@@ -162,9 +162,29 @@ export interface AgentQueryResponse {
     success: boolean;
     data: string;
     error?: string;
+    executionTrace?: ExecutionTrace;
   };
 }
 
+// Execution Trace Types
+export interface ExecutionTrace {
+  steps: ExecutionStep[];
+  totalTime: number;
+  startTime: string;
+  endTime: string;
+}
+
+export interface ExecutionStep {
+  id: string;
+  name: string;
+  type: 'thought' | 'action' | 'tool_call' | 'result' | 'error';
+  timestamp: string;
+  duration: number;
+  description: string;
+  details?: any;
+  substeps?: ExecutionStep[];
+}
+
 // Chat and Message Types
 export interface ChatMessage {
   id: string;
@@ -182,6 +202,7 @@ export interface ChatMessage {
     action?: string;
     asset?: string;
     requiresConfirmation?: boolean;
+    executionTrace?: ExecutionTrace;
   };
 }