diff --git a/dataherald/sql_generator/__init__.py b/dataherald/sql_generator/__init__.py
index 03597f70..16fc94d4 100644
--- a/dataherald/sql_generator/__init__.py
+++ b/dataherald/sql_generator/__init__.py
@@ -188,7 +188,9 @@ def stream_agent_steps(  # noqa: C901
                             )
                     elif "steps" in chunk:
                         for step in chunk["steps"]:
-                            queue.put(f"\n**Observation:**\n {step.observation}\n")
+                            queue.put(
+                                f"\n**Observation:**\n {self.format_sql_query_intermediate_steps(step.observation)}\n"
+                            )
                     elif "output" in chunk:
                         queue.put(
                             f'\n**Final Answer:**\n {self.format_sql_query_intermediate_steps(chunk["output"])}'