diff --git a/CHANGELOG.md b/CHANGELOG.md
index 0d75e209d..c51c070da 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -14,6 +14,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ### Added
 - Added a new `extras` field to `ToolRef` to enable additional parameters in the tool signature (eg, `display_width_px`, `display_height_px` for the `:computer` tool).
+- Added a new kwarg `unused_as_kwargs` to `execute_tool` to enable passing unused args as kwargs (see `?execute_tool` for more information). Helps with using kwarg-based functions.
 
 ### Updated
 - Updated the compat bounds for `StreamCallbacks` to enable both v0.4 and v0.5 (Fixes Julia 1.9 compatibility).
diff --git a/src/extraction.jl b/src/extraction.jl
index 8f155bc83..a3d144de1 100644
--- a/src/extraction.jl
+++ b/src/extraction.jl
@@ -721,13 +721,13 @@ end
 ### Processing utilities
 
 """
-    parse_tool(datatype::Type, blob::AbstractString)
+    parse_tool(datatype::Type, blob::AbstractString; kwargs...)
 
 Parse the JSON blob into the specified datatype in try-catch mode.
 
 If parsing fails, it tries to return the untyped JSON blob in a dictionary.
 """
-function parse_tool(datatype::Type, blob::AbstractString)
+function parse_tool(datatype::Type, blob::AbstractString; kwargs...)
     try
         return if blob == "{}"
             ## If empty, return empty datatype
@@ -743,16 +743,19 @@ function parse_tool(datatype::Type, blob::AbstractString)
 end
 
 ## Utility for Anthropic - it returns a parsed dict and we need text for deserialization into an object
-function parse_tool(datatype::Type, blob::AbstractDict)
-    isempty(blob) ? datatype() : parse_tool(datatype, JSON3.write(blob))
+function parse_tool(datatype::Type, blob::AbstractDict; kwargs...)
+    isempty(blob) ? datatype() : parse_tool(datatype, JSON3.write(blob); kwargs...)
 end
-function parse_tool(tool::AbstractTool, input::Union{AbstractString, AbstractDict})
-    return parse_tool(tool.callable, input)
+function parse_tool(
+        tool::AbstractTool, input::Union{AbstractString, AbstractDict}; kwargs...)
+    return parse_tool(tool.callable, input; kwargs...)
 end
 
 """
     execute_tool(f::Function, args::AbstractDict{Symbol, <:Any},
-        context::AbstractDict{Symbol, <:Any} = Dict{Symbol, Any}())
+        context::AbstractDict{Symbol, <:Any} = Dict{Symbol, Any}();
+        throw_on_error::Bool = true, unused_as_kwargs::Bool = false,
+        kwargs...)
 
 Executes a function with the provided arguments. 
 
@@ -767,6 +770,9 @@ Dictionary is un-ordered, so we need to sort the arguments first and then pass t
 - `f::Function`: The function to execute.
 - `args::AbstractDict{Symbol, <:Any}`: The arguments to pass to the function.
 - `context::AbstractDict{Symbol, <:Any}`: Optional context to pass to the function, it will prioritized to get the argument values from.
+- `throw_on_error::Bool`: Whether to throw an error if the tool execution fails. Defaults to `true`.
+- `unused_as_kwargs::Bool`: Whether to pass unused arguments as keyword arguments. Defaults to `false`. Function must support keyword arguments!
+- `kwargs...`: Additional keyword arguments to pass to the function.
 
 # Example
 ```julia
@@ -787,9 +793,11 @@ PT.execute_tool(tool_map, PT.tool_calls(msg)[1])
 """
 function execute_tool(f::Function, args::AbstractDict{Symbol, <:Any},
         context::AbstractDict{Symbol, <:Any} = Dict{Symbol, Any}();
-        throw_on_error::Bool = true)
+        throw_on_error::Bool = true, unused_as_kwargs::Bool = false,
+        kwargs...)
     args_sorted = []
-    for arg in get_arg_names(f)
+    arg_names = get_arg_names(f)
+    for arg in arg_names
         if arg == :context
             push!(args_sorted, context)
         elseif haskey(context, arg)
@@ -798,9 +806,13 @@ function execute_tool(f::Function, args::AbstractDict{Symbol, <:Any},
             push!(args_sorted, args[arg])
         end
     end
+    if unused_as_kwargs
+        unused_args = setdiff(keys(args), arg_names)
+        kwargs = merge(NamedTuple(kwargs), (; [arg => args[arg] for arg in unused_args]...))
+    end
 
     result = try
-        f(args_sorted...)
+        f(args_sorted...; kwargs...)
     catch e
         ToolExecutionError("Tool execution of `$(f)` failed", e)
     end
@@ -808,20 +820,20 @@ function execute_tool(f::Function, args::AbstractDict{Symbol, <:Any},
     return result
 end
 function execute_tool(tool::AbstractTool, args::AbstractDict{Symbol, <:Any},
-        context::AbstractDict{Symbol, <:Any} = Dict{Symbol, Any}())
-    return execute_tool(tool.callable, args, context)
+        context::AbstractDict{Symbol, <:Any} = Dict{Symbol, Any}(); kwargs...)
+    return execute_tool(tool.callable, args, context; kwargs...)
 end
 function execute_tool(tool::AbstractTool, msg::ToolMessage,
-        context::AbstractDict{Symbol, <:Any} = Dict{Symbol, Any}())
-    return execute_tool(tool.callable, msg.args, context)
+        context::AbstractDict{Symbol, <:Any} = Dict{Symbol, Any}(); kwargs...)
+    return execute_tool(tool.callable, msg.args, context; kwargs...)
 end
 function execute_tool(tool_map::AbstractDict{String, <:AbstractTool}, msg::ToolMessage,
-        context::AbstractDict{Symbol, <:Any} = Dict{Symbol, Any}())
+        context::AbstractDict{Symbol, <:Any} = Dict{Symbol, Any}(); kwargs...)
     if !haskey(tool_map, msg.name)
         throw(ToolNotFoundError("Tool `$(msg.name)` not found"))
     end
     tool = tool_map[msg.name]
-    return execute_tool(tool, msg, context)
+    return execute_tool(tool, msg, context; kwargs...)
 end
 
 """
diff --git a/test/extraction.jl b/test/extraction.jl
index 2c6590478..cffd8d441 100644
--- a/test/extraction.jl
+++ b/test/extraction.jl
@@ -21,6 +21,15 @@ function context_test_function2(x::Int, y::String, context::Dict)
     return "Context test: $x, $y, $(context)"
 end
 
+# Test function that accepts kwargs
+function kwarg_test_function(x::Int; y::Int = 0, z::Int = 0, kwargs...)
+    return x + y + z
+end
+# Test with function that has no kwargs
+function no_kwarg_function(x::Int)
+    return x
+end
+
 @testset "ToolErrors" begin
     e = ToolNotFoundError("Tool `xyz` not found")
     @test e isa AbstractToolError
@@ -860,4 +869,23 @@ end
     @test_throws ToolNotFoundError execute_tool(tool_map,
         ToolMessage(;
             tool_call_id = "1", name = "wrong_tool_name", raw = "", args = args))
+
+    # Test passing kwargs directly
+    args = Dict(:x => 1)
+    @test execute_tool(kwarg_test_function, args; y = 2, z = 3) == 6 # 1 + 2 + 3
+
+    # Test unused args passed as kwargs when unused_as_kwargs=true
+    args = Dict(:x => 1, :y => 2, :z => 3, :extra => 4)
+    @test execute_tool(kwarg_test_function, args; unused_as_kwargs = true) == 6 # 1 + 2 + 3
+
+    # Test that extra args are ignored when unused_as_kwargs=false
+    args = Dict(:x => 1, :y => 2, :z => 3, :extra => 4)
+    @test execute_tool(kwarg_test_function, args; unused_as_kwargs = false) == 1
+
+    # Test that args override kwargs when unused_as_kwargs=true
+    args = Dict(:x => 1, :y => 2, :z => 3)
+    @test execute_tool(kwarg_test_function, args; unused_as_kwargs = true, y = 5) == 6 # args
+
+    args = Dict(:x => 1, :extra => 2)
+    @test execute_tool(no_kwarg_function, args; unused_as_kwargs = false) == 1
 end