diff --git a/tests/tools/test_registry.py b/tests/tools/test_registry.py
index 6cefab0fc7bd5..6573941fdafc8 100644
--- a/tests/tools/test_registry.py
+++ b/tests/tools/test_registry.py
@@ -237,6 +237,27 @@ class TestDispatchBoundsDirectErrorResults:
         assert reg.dispatch("nested", {}) == payload
 
 
+class TestDispatchExceptionLogging:
+    def test_raising_handler_logs_bounded_message(self, caplog):
+        import logging
+        body = "upstream said: " + "Q" * 200_000
+        reg = ToolRegistry()
+        reg.register(
+            name="boom",
+            toolset="core",
+            schema=_make_schema("boom"),
+            handler=lambda args, **kw: (_ for _ in ()).throw(RuntimeError(body)),
+        )
+        with caplog.at_level(logging.ERROR, logger="tools.registry"):
+            result = json.loads(reg.dispatch("boom", {}))
+        messages = [r.getMessage() for r in caplog.records]
+        assert messages, "dispatch should log the failure"
+        for message in messages:
+            assert len(message) < _MAX_LOGGED_ERROR_CHARS + 200
+            assert body not in message
+        assert len(result["error"]) < _MAX_TOOL_ERROR_CHARS + 200
+
+
 class TestToolsetAvailability:
     def test_no_check_fn_is_available(self):
         reg = ToolRegistry()
diff --git a/tools/registry.py b/tools/registry.py
index 333922d2d0fbb..fc5f98ec23bf8 100644
--- a/tools/registry.py
+++ b/tools/registry.py
@@ -818,7 +818,10 @@ class ToolRegistry:
                 result = entry.handler(args, **kwargs)
             return self._normalize_handler_result(name, result)
         except Exception as e:
-            logger.exception("Tool %s dispatch error: %s", name, e)
+            # exc_info already renders the exception, so keep the message copy bounded.
+            logger.exception(
+                "Tool %s dispatch error: %s", name, _bound_error_text(str(e))
+            )
             # Route through the sanitizer so framing tokens / CDATA / fences
             # in exception strings don't reach the model as structural noise.
             # See model_tools._sanitize_tool_error for rationale.