diff --git a/apps/sim/app/workspace/[workspaceId]/home/components/message-content/components/chat-content/chat-content.tsx b/apps/sim/app/workspace/[workspaceId]/home/components/message-content/components/chat-content/chat-content.tsx
index f1fdb49e952..a5dc59d2132 100644
--- a/apps/sim/app/workspace/[workspaceId]/home/components/message-content/components/chat-content/chat-content.tsx
+++ b/apps/sim/app/workspace/[workspaceId]/home/components/message-content/components/chat-content/chat-content.tsx
@@ -189,6 +189,14 @@ function SourceReference({ index, children }: SourceReferenceProps) {
   )
 }
 
+/**
+ * Placeholder URLs Streamdown's streaming parser substitutes for a link or image
+ * whose URL is still arriving. Neither resolves, so a pending link renders as
+ * its text and a pending image is withheld until the URL completes.
+ */
+const INCOMPLETE_LINK_HREF = 'streamdown:incomplete-link'
+const INCOMPLETE_IMAGE_SRC = 'streamdown:incomplete-image'
+
 const WORKSPACE_LINK_PREFIX = '#sim-workspace-ref-'
 const WorkspaceRefsContext = createContext<{
   resources: WorkspaceResourceTagData[]
@@ -375,6 +383,7 @@ const MARKDOWN_COMPONENTS = {
     href?: string
     'data-footnote-ref'?: boolean
   }) {
+    if (href === INCOMPLETE_LINK_HREF) return <>{children}</>
     if (href?.startsWith(SOURCE_LINK_PREFIX)) {
       return (
         <SourceReference index={Number(href.slice(SOURCE_LINK_PREFIX.length))}>
@@ -488,7 +497,7 @@ const MARKDOWN_COMPONENTS = {
     return <del className='text-[var(--text-tertiary)] line-through'>{children}</del>
   },
   img({ src, alt }: ComponentPropsWithoutRef<'img'>) {
-    if (typeof src !== 'string' || !src) return null
+    if (typeof src !== 'string' || !src || src === INCOMPLETE_IMAGE_SRC) return null
     return (
       <Lightbox src={src} alt={alt ?? ''}>
         <button
@@ -606,14 +615,12 @@ function ChatContentInner({
    * trades identical pixels, unlike flipping at `isRevealing`'s edge, which cut
    * running fades short (the old completion flash).
    *
-   * The swap must REMOUNT Streamdown (via `key`), not just flip its props:
-   * Streamdown's default element components are memoized on className + source
-   * position (`E`/`qe` in streamdown 2.5), so a re-parse of unchanged content
-   * without the animate plugin bails at every unoverridden element (`p`,
-   * `strong`, `tr`, headings, …) and leaves the stale per-char span DOM in
-   * place. The settled instance keeps the streaming parser (`parserTree`
-   * below) so the remount only sheds the spans, never re-interprets the
-   * markdown.
+   * The swap REMOUNTS Streamdown (via `key`) rather than flipping its props,
+   * so the settled tree is built from scratch without the animate plugin and
+   * no memoized element (`p`, `strong`, `tr`, headings, …) can carry the
+   * per-word span DOM over. The settled instance keeps the streaming parser
+   * (`parserTree` below) so the remount only sheds the spans, never
+   * re-interprets the markdown.
    *
    * The drain is deliberately one-way: a stream that resumes afterwards
    * (reconnect/continuation) reveals paced but unfaded, because re-arming
diff --git a/apps/sim/package.json b/apps/sim/package.json
index 42cc8cf119e..e6fb7e16297 100644
--- a/apps/sim/package.json
+++ b/apps/sim/package.json
@@ -281,7 +281,7 @@
     "sim": "workspace:*",
     "socket.io-client": "4.8.4",
     "ssh2": "^1.17.0",
-    "streamdown": "2.5.0",
+    "streamdown": "2.7.1",
     "stripe": "18.5.0",
     "tldts": "7.4.19",
     "twilio": "6.2.0",
diff --git a/bun.lock b/bun.lock
index ec60d0537a9..ab0c09221a8 100644
--- a/bun.lock
+++ b/bun.lock
@@ -435,7 +435,7 @@
         "sim": "workspace:*",
         "socket.io-client": "4.8.4",
         "ssh2": "^1.17.0",
-        "streamdown": "2.5.0",
+        "streamdown": "2.7.1",
         "stripe": "18.5.0",
         "tldts": "7.4.19",
         "twilio": "6.2.0",
@@ -876,7 +876,7 @@
         "react-dom": "19.2.4",
         "remark-breaks": "^4.0.0",
         "remark-gfm": "^4.0.1",
-        "streamdown": "2.5.0",
+        "streamdown": "2.7.1",
         "typescript": "^7.0.2",
         "vitest": "^5.1.0",
       },
@@ -4187,7 +4187,7 @@
 
     "remark-stringify": ["remark-stringify@11.0.0", "", { "dependencies": { "@types/mdast": "^4.0.0", "mdast-util-to-markdown": "^2.0.0", "unified": "^11.0.0" } }, "sha512-1OSmLd3awB/t8qdoEOMazZkNsfVTeY4fTsgzcQFdXNq8ToTN4ZGwrMnlda4K6smTFKD+GRV6O48i6Z4iKgPPpw=="],
 
-    "remend": ["remend@1.3.0", "", {}, "sha512-iIhggPkhW3hFImKtB10w0dz4EZbs28mV/dmbcYVonWEJ6UGHHpP+bFZnTh6GNWJONg5m+U56JrL+8IxZRdgWjw=="],
+    "remend": ["remend@1.4.0", "", {}, "sha512-mHiYhhwphs1IgIZmkToKLwJn0U99IjPXuutkA2acrNcG0vlEq2G4TGnd2eT0saIHwh2KjaCpvleHcsd5SAz96A=="],
 
     "require-directory": ["require-directory@2.1.1", "", {}, "sha512-fGxEI7+wsG9xrvdjsrlmL22OMTTiHRwAMroiEeMgq8gzoLC/PQr7RsRDSTLUg/bZAZtF+TVIkHc6/4RIKrui+Q=="],
 
@@ -4371,7 +4371,7 @@
 
     "stream-shift": ["stream-shift@1.0.3", "", {}, "sha512-76ORR0DO1o1hlKwTbi/DM3EXWGf3ZJYO8cXX5RJwnul2DEg2oyoZyjLNoQM8WsvZiFKCRfC1O0J7iCvie3RZmQ=="],
 
-    "streamdown": ["streamdown@2.5.0", "", { "dependencies": { "clsx": "^2.1.1", "hast-util-to-jsx-runtime": "^2.3.6", "html-url-attributes": "^3.0.1", "marked": "^17.0.1", "mermaid": "^11.12.2", "rehype-harden": "^1.1.8", "rehype-raw": "^7.0.0", "rehype-sanitize": "^6.0.0", "remark-gfm": "^4.0.1", "remark-parse": "^11.0.0", "remark-rehype": "^11.1.2", "remend": "1.3.0", "tailwind-merge": "^3.4.0", "unified": "^11.0.5", "unist-util-visit": "^5.0.0", "unist-util-visit-parents": "^6.0.0" }, "peerDependencies": { "react": "^18.0.0 || ^19.0.0", "react-dom": "^18.0.0 || ^19.0.0" } }, "sha512-/tTnURfIOxZK/pqJAxsfCvETG/XCJHoWnk3jq9xLcuz6CSpnjjuxSRBTTL4PKGhxiZQf0lqPxGhImdpwcZ2XwA=="],
+    "streamdown": ["streamdown@2.7.1", "", { "dependencies": { "clsx": "^2.1.1", "hast-util-to-jsx-runtime": "^2.3.6", "html-url-attributes": "^3.0.1", "marked": "^18.0.11", "rehype-harden": "^1.1.8", "rehype-raw": "^7.0.0", "rehype-sanitize": "^6.0.0", "remark-gfm": "^4.0.1", "remark-parse": "^11.0.0", "remark-rehype": "^11.1.2", "remend": "1.4.0", "tailwind-merge": "^3.6.0", "unified": "^11.0.5", "unist-util-visit": "^5.1.0", "unist-util-visit-parents": "^6.0.2" }, "peerDependencies": { "react": "^18.0.0 || ^19.0.0", "react-dom": "^18.0.0 || ^19.0.0" } }, "sha512-pIz4XOB+e7iyqSJABXC9PoyHifBZVQx/7U0Qo/vdOIERqGXfgEhJxkXENsuWMO8TGXkaQ5ewV9jnliK7q47T8w=="],
 
     "streamsearch": ["streamsearch@1.1.0", "", {}, "sha512-Mcc5wHehp9aXz1ax6bZUyY5afg9u2rv5cqQI3mRrYkGC8rW2hM02jWuwjtL++LS5qinSyhj2QfLyNsuc+VsExg=="],
 
@@ -5405,8 +5405,6 @@
 
     "stream-browserify/readable-stream": ["readable-stream@3.6.2", "", { "dependencies": { "inherits": "^2.0.3", "string_decoder": "^1.1.1", "util-deprecate": "^1.0.1" } }, "sha512-9u/sniCrY3D5WdsERHzHE4G2YCXqoG5FTHUiCC4SIbr6XcLZBY05ya9EKjYek9O5xOAwjGq+1JdGBAS7Q9ScoA=="],
 
-    "streamdown/unist-util-visit-parents": ["unist-util-visit-parents@6.0.2", "", { "dependencies": { "@types/unist": "^3.0.0", "unist-util-is": "^6.0.0" } }, "sha512-goh1s1TBrqSqukSc8wrjwWhL0hiJxgA8m4kFxGlQ+8FYQ3C/m11FcTs4YYem7V664AhHVvgoQLk890Ssdsr2IQ=="],
-
     "strip-ansi/ansi-regex": ["ansi-regex@6.2.2", "", {}, "sha512-Bq3SmSpyFHaWjPk8If9yc6svM8c56dB5BAtW4Qbw5jHTwwXXcTLoRMkpDJp6VL0XzlWaCHTXrkFURMYmD0sLqg=="],
 
     "style-to-js/style-to-object": ["style-to-object@1.0.14", "", { "dependencies": { "inline-style-parser": "0.2.7" } }, "sha512-LIN7rULI0jBscWQYaSswptyderlarFkjQ+t79nzty8tcIAceVomEVlLzH5VP4Cmsv6MtKhs7qaAiwlcp+Mgaxw=="],
diff --git a/packages/workflow-renderer/package.json b/packages/workflow-renderer/package.json
index fd0e6017770..b59b7c06dd3 100644
--- a/packages/workflow-renderer/package.json
+++ b/packages/workflow-renderer/package.json
@@ -75,7 +75,7 @@
     "react-dom": "19.2.4",
     "remark-breaks": "^4.0.0",
     "remark-gfm": "^4.0.1",
-    "streamdown": "2.5.0",
+    "streamdown": "2.7.1",
     "typescript": "^7.0.2",
     "vitest": "^5.1.0"
   }