diff --git a/src/funcchain/chain/creation.py b/src/funcchain/chain/creation.py
index afdefb6..31dcc0a 100644
--- a/src/funcchain/chain/creation.py
+++ b/src/funcchain/chain/creation.py
@@ -1,29 +1,25 @@
 from types import UnionType
-from typing import TypeVar, Type
+from typing import Type, TypeVar
 
+from langchain_core.callbacks import Callbacks
+from langchain_core.chat_history import BaseChatMessageHistory
 from langchain_core.language_models import BaseChatModel
-from langchain_core.prompts import ChatPromptTemplate
 from langchain_core.messages import AIMessage, BaseMessage, HumanMessage
 from langchain_core.output_parsers import BaseOutputParser
-from langchain_core.chat_history import BaseChatMessageHistory
-from langchain_core.runnables import (
-    RunnableSerializable,
-    RunnableWithFallbacks,
-)
+from langchain_core.prompts import ChatPromptTemplate
+from langchain_core.runnables import RunnableSerializable
 from PIL import Image
 from pydantic import BaseModel
 
-from funcchain._llms import ChatLlamaCpp
-
 from ..parser import MultiToolParser, ParserBaseModel, PydanticFuncParser
 from ..settings import FuncchainSettings
 from ..streaming import stream_handler
 from ..utils import (
-    parser_for,
     count_tokens,
     is_function_model,
     is_vision_model,
     multi_pydantic_to_functions,
+    parser_for,
     pydantic_to_functions,
     pydantic_to_grammar,
     univeral_model_selector,
@@ -44,7 +40,7 @@ def create_union_chain(
     system: str,
     memory: BaseChatMessageHistory,
     context: list[BaseMessage],
-    llm: BaseChatModel | RunnableWithFallbacks,
+    llm: BaseChatModel,
     input_kwargs: dict[str, str],
 ) -> RunnableSerializable[dict[str, str], BaseModel]:
     """
@@ -64,16 +60,7 @@ def create_union_chain(
 
     functions = multi_pydantic_to_functions(output_types)
 
-    if isinstance(llm, RunnableWithFallbacks):
-        llm = llm.runnable.bind(**functions).with_fallbacks(
-            [
-                fallback.bind(**functions)
-                for fallback in llm.fallbacks
-                if hasattr(llm, "fallbacks")
-            ]
-        )
-    else:
-        llm = llm.bind(**functions)  # type: ignore
+    llm = llm.bind(**functions)  # type: ignore
 
     prompt = create_chat_prompt(
         system,
@@ -93,24 +80,15 @@ def create_union_chain(
 def create_pydanctic_chain(
     output_type: type[BaseModel],
     prompt: ChatPromptTemplate,
-    llm: BaseChatModel | RunnableWithFallbacks,
+    llm: BaseChatModel,
     input_kwargs: dict[str, str],
 ) -> RunnableSerializable[dict[str, str], BaseModel]:
     # TODO: check these format_instructions
     input_kwargs["format_instructions"] = f"Extract to {output_type.__name__}."
     functions = pydantic_to_functions(output_type)
 
-    llm = (
-        llm.runnable.bind(**functions).with_fallbacks(  # type: ignore
-            [
-                fallback.bind(**functions)
-                for fallback in llm.fallbacks
-                if hasattr(llm, "fallbacks")
-            ]
-        )
-        if isinstance(llm, RunnableWithFallbacks)
-        else llm.bind(**functions)
-    )
+    llm = llm.bind(**functions)  # type: ignore
+
     return prompt | llm | PydanticFuncParser(pydantic_schema=output_type)
 
 
@@ -127,13 +105,17 @@ def create_chain(
     Compile a langchain runnable chain from the funcchain syntax.
     """
     # large language model
-    llm = _gather_llm(settings)
+    _llm = _gather_llm(settings)
+    llm = _add_custom_callbacks(_llm, settings)
 
     parser = parser_for(output_type)
 
     # add format instructions for parser
-    if parser and not is_function_model(llm):
-        instruction = _add_format_instructions(
+    f_instructions = None
+    if parser and (settings.streaming or not is_function_model(llm)):
+        # streaming behavior is not supported for function models
+        # but for normal function models we do not need to add format instructions
+        instruction, f_instructions = _add_format_instructions(
             parser,
             instruction,
             input_kwargs,
@@ -151,29 +133,18 @@ def create_chain(
     images = _handle_images(llm, input_kwargs)
 
     # create prompts
-    instruction_prompt = create_instruction_prompt(instruction, images, input_kwargs)
+    instruction_prompt = create_instruction_prompt(
+        instruction,
+        images,
+        input_kwargs,
+        format_instructions=f_instructions,
+    )
     chat_prompt = create_chat_prompt(system, instruction_prompt, context, memory)
 
     # add formatted instruction to chat history
     memory.add_message(instruction_prompt.format(**input_kwargs))
 
-    if isinstance(llm, ChatLlamaCpp):
-        if isinstance(output_type, UnionType):
-            # TODO: implement Union Type grammar
-            raise NotImplementedError(
-                "Union types are not yet supported for LlamaCpp models."
-            )
-        if issubclass(output_type, BaseModel) and not issubclass(
-            output_type, ParserBaseModel
-        ):
-            from llama_cpp import LlamaGrammar
-
-            grammar = pydantic_to_grammar(output_type)
-            setattr(
-                llm,
-                "grammar",
-                LlamaGrammar.from_string(grammar, verbose=False),
-            )
+    _inject_grammar_for_local_models(llm, output_type)
 
     # function model patches
     if is_function_model(llm):
@@ -191,13 +162,16 @@ def create_chain(
         if issubclass(output_type, BaseModel) and not issubclass(
             output_type, ParserBaseModel
         ):
-            return create_pydanctic_chain(  # type: ignore
-                output_type,
-                chat_prompt,
-                llm,
-                input_kwargs,
-            )
-
+            if settings.streaming and hasattr(llm, "model_kwargs"):
+                llm.model_kwargs = {"response_format": {"type": "json_object"}}
+            else:
+                return create_pydanctic_chain(  # type: ignore
+                    output_type,
+                    chat_prompt,
+                    llm,
+                    input_kwargs,
+                )
+    assert parser is not None
     return chat_prompt | llm | parser
 
 
@@ -205,7 +179,7 @@ def _add_format_instructions(
     parser: BaseOutputParser,
     instruction: str,
     input_kwargs: dict[str, str],
-) -> str:
+) -> tuple[str, str | None]:
     """
     Add parsing format instructions
     to the instruction message and input_kwargs
@@ -215,9 +189,9 @@ def _add_format_instructions(
         if format_instructions := parser.get_format_instructions():
             instruction += "\n{format_instructions}"
             input_kwargs["format_instructions"] = format_instructions
-        return instruction
+        return instruction, format_instructions
     except NotImplementedError:
-        return instruction
+        return instruction, None
 
 
 def _crop_large_inputs(
@@ -239,7 +213,7 @@ def _crop_large_inputs(
 
 
 def _handle_images(
-    llm: BaseChatModel | RunnableWithFallbacks,
+    llm: BaseChatModel,
     input_kwargs: dict[str, str],
 ) -> list[Image.Image]:
     """
@@ -256,12 +230,33 @@ def _handle_images(
     return images
 
 
+def _inject_grammar_for_local_models(llm: BaseChatModel, output_type: type) -> None:
+    """
+    Inject GBNF grammar into local models.
+    """
+    try:
+        from funcchain._llms import ChatOllama
+    except:  # noqa
+        pass
+    else:
+        if isinstance(llm, ChatOllama):
+            if isinstance(output_type, UnionType):
+                raise NotImplementedError(
+                    "Union types are not yet supported for LlamaCpp models."
+                )  # TODO: implement
+
+            if issubclass(output_type, BaseModel) and not issubclass(
+                output_type, ParserBaseModel
+            ):
+                llm.grammar = pydantic_to_grammar(output_type)
+            if issubclass(output_type, ParserBaseModel):
+                llm.grammar = output_type.custom_grammar()
+
+
 def _gather_llm(
     settings: FuncchainSettings,
-) -> BaseChatModel | RunnableWithFallbacks:
-    if isinstance(settings.llm, RunnableWithFallbacks) or isinstance(
-        settings.llm, BaseChatModel
-    ):
+) -> BaseChatModel:
+    if isinstance(settings.llm, BaseChatModel):
         llm = settings.llm
     else:
         llm = univeral_model_selector(settings)
@@ -271,12 +266,28 @@ def _gather_llm(
             "No language model provided. Either set the llm environment variable or "
             "pass a model to the `chain` function."
         )
+    return llm
+
+
+def _add_custom_callbacks(
+    llm: BaseChatModel, settings: FuncchainSettings
+) -> BaseChatModel:
+    callbacks: Callbacks = []
+
     if handler := stream_handler.get():
+        callbacks = [handler]
+
+    if settings.console_stream:
+        from ..streaming import AsyncStreamHandler
+
+        callbacks = [
+            AsyncStreamHandler(print, {"end": "", "flush": True}),
+        ]
+
+    if callbacks:
         settings.streaming = True
-        if isinstance(llm, RunnableWithFallbacks) and isinstance(
-            llm.runnable, BaseChatModel
-        ):
-            llm.runnable.callbacks = [handler]
-        elif isinstance(llm, BaseChatModel):
-            llm.callbacks = [handler]
+        if hasattr(llm, "streaming"):
+            llm.streaming = True
+        llm.callbacks = callbacks
+
     return llm