diff --git a/nemoguardrails/library/sensitive_data_detection/actions.py b/nemoguardrails/library/sensitive_data_detection/actions.py
index e25d5c15b0..b93daef0a8 100644
--- a/nemoguardrails/library/sensitive_data_detection/actions.py
+++ b/nemoguardrails/library/sensitive_data_detection/actions.py
@@ -100,7 +100,7 @@ async def detect_sensitive_data(
     """Checks whether the provided text contains any sensitive data.
 
     Args
-        source: The source for the text, i.e. "input", "output", "retrieval".
+        source: The source for the text, i.e. "input", "output", "retrieval", "tool_call", "tool_response".
         text: The text to check.
         config: The rails configuration object.
 
@@ -109,9 +109,12 @@ async def detect_sensitive_data(
     """
     # Based on the source of the data, we use the right options
     sdd_config = config.rails.config.sensitive_data_detection
-    if source not in ["input", "output", "retrieval"]:
-        raise ValueError("source must be one of 'input', 'output', or 'retrieval'")
-    options: SensitiveDataDetectionOptions = getattr(sdd_config, source)
+    if source not in ["input", "output", "retrieval", "tool_call", "tool_response"]:
+        raise ValueError("source must be one of 'input', 'output', 'retrieval', 'tool_call', or 'tool_response'")
+
+    # Map tool_call and tool_response to output options as they follow similar validation patterns
+    source_key = source if source in ["input", "output", "retrieval"] else "output"
+    options: SensitiveDataDetectionOptions = getattr(sdd_config, source_key)
     default_score_threshold = getattr(options, "score_threshold")
 
     # If we don't have any entities specified, we stop
@@ -138,7 +141,7 @@ async def mask_sensitive_data(source: str, text: str, config: RailsConfig):
     """Checks whether the provided text contains any sensitive data.
 
     Args
-        source: The source for the text, i.e. "input", "output", "retrieval".
+        source: The source for the text, i.e. "input", "output", "retrieval", "tool_call", "tool_response".
         text: The text to check.
         config: The rails configuration object.
 
@@ -147,8 +150,11 @@ async def mask_sensitive_data(source: str, text: str, config: RailsConfig):
     """
     # Based on the source of the data, we use the right options
     sdd_config = config.rails.config.sensitive_data_detection
-    assert source in ["input", "output", "retrieval"]
-    options: SensitiveDataDetectionOptions = getattr(sdd_config, source)
+    assert source in ["input", "output", "retrieval", "tool_call", "tool_response"]
+
+    # Map tool_call and tool_response to output options as they follow similar validation patterns
+    source_key = source if source in ["input", "output", "retrieval"] else "output"
+    options: SensitiveDataDetectionOptions = getattr(sdd_config, source_key)
 
     # If we don't have any entities specified, we stop
     if len(options.entities) == 0:
diff --git a/nemoguardrails/library/sensitive_data_detection/flows.co b/nemoguardrails/library/sensitive_data_detection/flows.co
index 213c0204b4..2871b510bf 100644
--- a/nemoguardrails/library/sensitive_data_detection/flows.co
+++ b/nemoguardrails/library/sensitive_data_detection/flows.co
@@ -49,3 +49,42 @@ flow mask sensitive data on retrieval
   """Mask any sensitive data found in the relevant chunks from the knowledge base."""
   global $relevant_chunks
   $relevant_chunks = await MaskSensitiveDataAction(source="retrieval", text=$relevant_chunks)
+
+
+# TOOL OUTPUT RAILS
+
+
+flow detect sensitive data on tool call
+  """Check if the tool calls contain any sensitive data in their parameters."""
+  $tool_calls_text = str($tool_calls)
+  $has_sensitive_data = await DetectSensitiveDataAction(source="tool_call", text=$tool_calls_text)
+
+  if $has_sensitive_data
+    bot inform answer unknown
+    abort
+
+
+flow mask sensitive data on tool call
+  """Mask any sensitive data found in the tool call parameters."""
+  global $tool_calls
+  $tool_calls_text = str($tool_calls)
+  $masked_text = await MaskSensitiveDataAction(source="tool_call", text=$tool_calls_text)
+  # Note: Masking tool calls requires careful handling to preserve structure
+
+
+# TOOL INPUT RAILS
+
+
+flow detect sensitive data on tool response
+  """Check if the tool response contains any sensitive data."""
+  $has_sensitive_data = await DetectSensitiveDataAction(source="tool_response", text=$tool_message)
+
+  if $has_sensitive_data
+    bot inform answer unknown
+    abort
+
+
+flow mask sensitive data on tool response
+  """Mask any sensitive data found in the tool response."""
+  global $tool_message
+  $tool_message = await MaskSensitiveDataAction(source="tool_response", text=$tool_message)
diff --git a/nemoguardrails/library/sensitive_data_detection/flows.v1.co b/nemoguardrails/library/sensitive_data_detection/flows.v1.co
index 8abb867439..1dae08cac5 100644
--- a/nemoguardrails/library/sensitive_data_detection/flows.v1.co
+++ b/nemoguardrails/library/sensitive_data_detection/flows.v1.co
@@ -31,7 +31,7 @@ define subflow mask sensitive data on output
   $bot_message = execute mask_sensitive_data(source="output", text=$bot_message)
 
 
-# RETRIVAL RAILS
+# RETRIEVAL RAILS
 
 
 define subflow detect sensitive data on retrieval
@@ -46,3 +46,40 @@ define subflow detect sensitive data on retrieval
 define subflow mask sensitive data on retrieval
   """Mask any sensitive data found in the relevant chunks from the knowledge base."""
   $relevant_chunks = execute mask_sensitive_data(source="retrieval", text=$relevant_chunks)
+
+
+# TOOL OUTPUT RAILS
+
+
+define subflow detect sensitive data on tool call
+  """Check if the tool calls contain any sensitive data in their parameters."""
+  $tool_calls_text = str($tool_calls)
+  $has_sensitive_data = execute detect_sensitive_data(source="tool_call", text=$tool_calls_text)
+
+  if $has_sensitive_data
+    bot inform answer unknown
+    stop
+
+
+define subflow mask sensitive data on tool call
+  """Mask any sensitive data found in the tool call parameters."""
+  $tool_calls_text = str($tool_calls)
+  $masked_text = execute mask_sensitive_data(source="tool_call", text=$tool_calls_text)
+  # Note: Masking tool calls requires careful handling to preserve structure
+
+
+# TOOL INPUT RAILS
+
+
+define subflow detect sensitive data on tool response
+  """Check if the tool response contains any sensitive data."""
+  $has_sensitive_data = execute detect_sensitive_data(source="tool_response", text=$tool_message)
+
+  if $has_sensitive_data
+    bot inform answer unknown
+    stop
+
+
+define subflow mask sensitive data on tool response
+  """Mask any sensitive data found in the tool response."""
+  $tool_message = execute mask_sensitive_data(source="tool_response", text=$tool_message)