diff --git a/adalflow/tests/test_generator.py b/adalflow/tests/test_generator.py
index a15c302a..38d331ce 100644
--- a/adalflow/tests/test_generator.py
+++ b/adalflow/tests/test_generator.py
@@ -15,6 +15,7 @@
 from adalflow.core.model_client import ModelClient
 from adalflow.components.model_client.groq_client import GroqAPIClient
 from adalflow.tracing import GeneratorStateLogger
+from typing import Generator as GeneratorType
 
 
 class TestGenerator(IsolatedAsyncioTestCase):
@@ -192,5 +193,72 @@ def test_groq_client_call(self, mock_call):
         # self.assertEqual(output.data, "Generated text response")
 
 
+class TestGeneratorWithStream(unittest.TestCase):
+
+    def setUp(self):
+        """Set up the mocked environment for the stream test cases."""
+        self.sent_chunks = [
+            "Pa",
+            "ris",
+            " is",
+            " the",
+            " capital",
+            " of",
+            " France",
+        ]
+
+        with patch(
+            "adalflow.core.model_client.ModelClient", spec=ModelClient
+        ) as MockAPI:
+            mock_api_client = Mock(spec=ModelClient)
+            MockAPI.return_value = mock_api_client
+
+            mock_api_client.convert_inputs_to_api_kwargs.return_value = {
+                "model": "phi3:latest",
+                "stream": True,
+                "prompt": (
+                    "<START_OF_SYSTEM_PROMPT>\nYou are a helpful assistant.\n<END_OF_SYSTEM_PROMPT>\n"
+                    "<START_OF_USER_PROMPT>\nWhat is the capital of France?\n<END_OF_USER_PROMPT>"
+                ),
+            }
+
+            mock_api_client.parse_chat_completion.return_value = (
+                self._mock_stream_generator(self.sent_chunks)
+            )
+            self.mock_api_client = mock_api_client
+
+        self.generator = Generator(model_client=self.mock_api_client)
+
+    def test_generator_call_with_stream(self):
+        """Test the generator call with streaming enabled."""
+        prompt_kwargs = {"input_str": "What is the capital of France?"}
+        model_kwargs = {"model": "phi3:latest", "stream": True}
+
+        output = self.generator.call(
+            prompt_kwargs=prompt_kwargs, model_kwargs=model_kwargs
+        )
+
+        # Assert that output is of type GeneratorOutput
+        self.assertIsInstance(output, GeneratorOutput)
+        # Assert that output.data is a generator type
+        self.assertIsInstance(output.data, GeneratorType)
+
+        received_chunks = []
+        for chunk in output.data:
+            # Assert that each chunk is of type GeneratorOutput
+            self.assertIsInstance(chunk, GeneratorOutput)
+            received_chunks.append(chunk.raw_response)
+
+        # Assert that the received chunks match the sent chunks
+        self.assertEqual(received_chunks, self.sent_chunks)
+
+    def _mock_stream_generator(
+        self, completion: list[str]
+    ) -> GeneratorType[GeneratorOutput, None, None]:
+        """Simulates streamed API responses."""
+        for chunk in completion:
+            yield GeneratorOutput(data=None, raw_response=chunk)
+
+
 if __name__ == "__main__":
     unittest.main()