diff --git a/src/safety/mod.rs b/src/safety/mod.rs
index 50167fc0..e9027792 100644
--- a/src/safety/mod.rs
+++ b/src/safety/mod.rs
@@ -164,7 +164,7 @@ impl SafetyLayer {
             "<tool_output name=\"{}\" sanitized=\"{}\">\n{}\n</tool_output>",
             escape_xml_attr(tool_name),
             sanitized,
-            escape_xml_content(content)
+            content
         )
     }
 
@@ -213,13 +213,6 @@ fn escape_xml_attr(s: &str) -> String {
         .replace('>', "&gt;")
 }
 
-/// Escape XML content.
-fn escape_xml_content(s: &str) -> String {
-    s.replace('&', "&amp;")
-        .replace('<', "&lt;")
-        .replace('>', "&gt;")
-}
-
 #[cfg(test)]
 mod tests {
     use super::*;
@@ -235,7 +228,7 @@ mod tests {
         let wrapped = safety.wrap_for_llm("test_tool", "Hello <world>", true);
         assert!(wrapped.contains("name=\"test_tool\""));
         assert!(wrapped.contains("sanitized=\"true\""));
-        assert!(wrapped.contains("Hello &lt;world&gt;"));
+        assert!(wrapped.contains("Hello <world>"));
     }
 
     #[test]
diff --git a/tests/support/trace_llm.rs b/tests/support/trace_llm.rs
index e09ee9d9..ba3e5744 100644
--- a/tests/support/trace_llm.rs
+++ b/tests/support/trace_llm.rs
@@ -429,7 +429,7 @@ impl TraceLlm {
     }
 
     /// Strip `<tool_output name="..." sanitized="...">...\n</tool_output>`
-    /// wrapper and unescape XML entities from safety-layer output.
+    /// wrapper from safety-layer output.
     fn unwrap_tool_output(content: &str) -> std::borrow::Cow<'_, str> {
         let trimmed = content.trim();
         if let Some(rest) = trimmed.strip_prefix("<tool_output")
@@ -438,14 +438,6 @@ impl TraceLlm {
             let inner = &rest[tag_end + 1..];
             if let Some(close) = inner.rfind("</tool_output>") {
                 let body = inner[..close].trim();
-                // Reverse XML escaping applied by safety layer.
-                if body.contains("&amp;") || body.contains("&lt;") || body.contains("&gt;") {
-                    return std::borrow::Cow::Owned(
-                        body.replace("&amp;", "&")
-                            .replace("&lt;", "<")
-                            .replace("&gt;", ">"),
-                    );
-                }
                 return std::borrow::Cow::Borrowed(body);
             }
         }