diff --git a/llama_stack/providers/inline/agents/meta_reference/agent_instance.py b/llama_stack/providers/inline/agents/meta_reference/agent_instance.py
index cfe839dad..528246cdf 100644
--- a/llama_stack/providers/inline/agents/meta_reference/agent_instance.py
+++ b/llama_stack/providers/inline/agents/meta_reference/agent_instance.py
@@ -402,7 +402,6 @@ class ChatAgent(ShieldRunnerMixin):
                 # if the session has a memory bank id, let the memory tool use it
                 if session_info.memory_bank_id:
                     query_args["memory_bank_id"] = session_info.memory_bank_id
-                serialized_args = tracing.serialize_value(query_args)
                 yield AgentTurnResponseStreamChunk(
                     event=AgentTurnResponseEvent(
                         payload=AgentTurnResponseStepProgressPayload(
@@ -412,8 +411,8 @@ class ChatAgent(ShieldRunnerMixin):
                                 parse_status=ToolCallParseStatus.success,
                                 content=ToolCall(
                                     call_id="",
-                                    tool_name="memory",
-                                    arguments=serialized_args,
+                                    tool_name=MEMORY_QUERY_TOOL,
+                                    arguments={},
                                 ),
                             ),
                         )
@@ -435,14 +434,14 @@ class ChatAgent(ShieldRunnerMixin):
                                 tool_calls=[
                                     ToolCall(
                                         call_id="",
-                                        tool_name="memory",
-                                        arguments=serialized_args,
+                                        tool_name=MEMORY_QUERY_TOOL,
+                                        arguments={},
                                     )
                                 ],
                                 tool_responses=[
                                     ToolResponse(
                                         call_id="",
-                                        tool_name="memory",
+                                        tool_name=MEMORY_QUERY_TOOL,
                                         content=result.content,
                                     )
                                 ],
@@ -456,7 +455,7 @@ class ChatAgent(ShieldRunnerMixin):
                 span.set_attribute("output", result.content)
                 span.set_attribute("error_code", result.error_code)
                 span.set_attribute("error_message", result.error_message)
-                span.set_attribute("tool_name", "memory")
+                span.set_attribute("tool_name", MEMORY_QUERY_TOOL)
                 if result.error_code == 0:
                     last_message = input_messages[-1]
                     last_message.context = result.content
diff --git a/llama_stack/providers/inline/tool_runtime/memory/memory.py b/llama_stack/providers/inline/tool_runtime/memory/memory.py
index f27cb9dd4..a6ce744a6 100644
--- a/llama_stack/providers/inline/tool_runtime/memory/memory.py
+++ b/llama_stack/providers/inline/tool_runtime/memory/memory.py
@@ -56,7 +56,7 @@ class MemoryToolRuntimeImpl(ToolsProtocolPrivate, ToolRuntime):
     ) -> List[ToolDef]:
         return [
             ToolDef(
-                name="memory",
+                name="query_memory",
                 description="Retrieve context from memory",
                 parameters=[
                     ToolParameter(
diff --git a/tests/client-sdk/agents/test_agents.py b/tests/client-sdk/agents/test_agents.py
index 09cedced3..a4ad2278f 100644
--- a/tests/client-sdk/agents/test_agents.py
+++ b/tests/client-sdk/agents/test_agents.py
@@ -101,7 +101,7 @@ def agent_config(llama_stack_client):
             "temperature": 1.0,
             "top_p": 0.9,
         },
-        tools=[],
+        toolgroups=[],
         tool_choice="auto",
         tool_prompt_format="json",
         input_shields=available_shields,
@@ -152,8 +152,8 @@ def test_agent_simple(llama_stack_client, agent_config):
 def test_builtin_tool_web_search(llama_stack_client, agent_config):
     agent_config = {
         **agent_config,
-        "tools": [
-            "builtin::web_search",
+        "toolgroups": [
+            "builtin::websearch",
         ],
     }
     agent = Agent(llama_stack_client, agent_config)
@@ -181,7 +181,7 @@ def test_builtin_tool_web_search(llama_stack_client, agent_config):
 def test_builtin_tool_code_execution(llama_stack_client, agent_config):
     agent_config = {
         **agent_config,
-        "tools": [
+        "toolgroups": [
             "builtin::code_interpreter",
         ],
     }
@@ -208,7 +208,7 @@ def test_code_execution(llama_stack_client):
     agent_config = AgentConfig(
         model="meta-llama/Llama-3.1-70B-Instruct",
         instructions="You are a helpful assistant",
-        tools=[
+        toolgroups=[
             "builtin::code_interpreter",
         ],
         tool_choice="required",
@@ -250,7 +250,7 @@ def test_custom_tool(llama_stack_client, agent_config):
     agent_config = {
         **agent_config,
         "model": "meta-llama/Llama-3.2-3B-Instruct",
-        "tools": ["builtin::web_search"],
+        "toolgroups": ["builtin::websearch"],
         "client_tools": [client_tool.get_tool_definition()],
         "tool_prompt_format": "python_list",
     }
@@ -293,9 +293,14 @@ def test_rag_agent(llama_stack_client, agent_config):
         for i, url in enumerate(urls)
     ]
 
-    agent_config["tools"].append("builtin::memory")
-    agent = Agent(llama_stack_client, agent_config)
     memory_bank_id = "test-memory-bank"
+    agent_config["toolgroups"].append(
+        dict(
+            name="builtin::memory",
+            args={"memory_bank_id": memory_bank_id},
+        )
+    )
+    agent = Agent(llama_stack_client, agent_config)
     llama_stack_client.memory_banks.register(
         memory_bank_id=memory_bank_id,
         params={
@@ -326,16 +331,8 @@ def test_rag_agent(llama_stack_client, agent_config):
                 }
             ],
             session_id=session_id,
-            tools=[
-                {
-                    "name": "memory",
-                    "args": {
-                        "memory_bank_id": memory_bank_id,
-                    },
-                }
-            ],
         )
 
         logs = [str(log) for log in EventLogger().log(response) if log is not None]
         logs_str = "".join(logs)
-        assert "Tool:memory" in logs_str
+        assert "Tool:query_memory" in logs_str