diff --git a/readme.md b/readme.md
index 1a5f807..1d1cb92 100644
--- a/readme.md
+++ b/readme.md
@@ -293,13 +293,9 @@ classDiagram
         -llm: LLMEngine
         -parser: ResponseParser
         -validator: XMLValidator
-        -io_buffer: IOBuffer
-        -system_prompt: str
         -action_schema: str
 
         #_compile_context() str
-        #_process_llm_response(response str) Optional~Command~
-        #_update() void
     }
 
     class WorkingMemory {
@@ -395,13 +391,9 @@ classDiagram
         -llm: LLMEngine
         -parser: ResponseParser
         -validator: XMLValidator
-        -io_buffer: IOBuffer
-        -system_prompt: str
         -action_schema: str
 
         #_compile_context() str
-        #_process_llm_response(response str) Optional~Command~
-        #_update() void
     }
 
     class StandardAgent {
@@ -410,7 +402,8 @@ classDiagram
     }
 
     class WebAgent {
-        -current_state: WebAgentState
+        +context: str
+        +response: str
 
         +WebAgent(model_path str, system_prompt str, action_schema str)
         +get_current_state() WebAgentState
diff --git a/sia/base_agent.py b/sia/base_agent.py
index 2c5ba2f..264bfd5 100644
--- a/sia/base_agent.py
+++ b/sia/base_agent.py
@@ -1,15 +1,12 @@
 from abc import ABC, abstractmethod
-from typing import Iterator, Callable, Optional, List
+from typing import List
 import xml.etree.ElementTree as ET
 
-from .command import Command
 from .llm_engine import LlmEngine
 from .system_metrics import SystemMetrics
 from .working_memory import WorkingMemory
 from .xml_validator import XMLValidator
 from .response_parser import ResponseParser
-from .parse_error_entry import ParseErrorEntry
-from .io_buffer import IOBuffer
 
 class BaseAgent(ABC):
     """
@@ -17,42 +14,24 @@ class BaseAgent(ABC):
     
     Provides core functionality for maintaining working memory, system metrics,
     and coordinating components for LLM inference.
-    
-    Private Attributes:
-        _working_memory: Collection of current entries
-        _metrics: System resource monitoring
-        _llm: LLM inference engine
-        _parser: XML response parser
-        _validator: XML response validator
-        _io_buffer: Input/output operations buffer
-        _system_prompt: System prompt template
-        _action_schema: XML schema for action validation
     """
     
     def __init__(self, 
-                 model_path: str, 
-                 system_prompt: str, 
                  action_schema: str, 
-                 io_buffer: IOBuffer):
+                 working_memory: WorkingMemory,
+                 system_metrics: SystemMetrics,
+                 llm: LlmEngine,
+                 validator: XMLValidator,
+                 parser: ResponseParser):
         """
         Initialize agent with required components.
-        
-        Args:
-            model_path: Path to LLM model
-            system_prompt: System prompt template
-            action_schema: XML schema for actions
-            io_buffer: IO buffer implementation to use
         """
         # Initialize components
-        self._working_memory = WorkingMemory()
-        self._metrics = SystemMetrics()
-        self._llm = LlmEngine(model_path)
-        self._validator = XMLValidator(action_schema)
-        self._io_buffer = io_buffer
-        self._parser = ResponseParser(io_buffer)
-        
-        # Store prompts
-        self._system_prompt = system_prompt
+        self._working_memory = working_memory
+        self._metrics = system_metrics
+        self._llm = llm
+        self._validator = validator
+        self._parser = parser
         self._action_schema = action_schema
         
     def __del__(self):
@@ -68,22 +47,9 @@ class BaseAgent(ABC):
         Returns:
             str: Complete context as XML string
         """
-        # Get usage details to include in context
-        context_size = 0  # TODO: Implement context size tracking
-        
-        # Get current system metrics
-        metrics_context = self._metrics.generate_context(context_size)
-        
-        # Get working memory entries
         memory_context = self._working_memory.generate_context()
-        
-        # Create root element
-        root = ET.Element("state")
-        
-        # Add metrics and memory entries
-        root.append(metrics_context)
+        context_size = len(memory_context) / 100
+        context = self._metrics.generate_context(context_size)
         for entry in memory_context:
-            root.append(entry)
-            
-        # Convert to string with basic formatting
-        return ET.tostring(root, encoding="unicode")
\ No newline at end of file
+            context.append(entry)
+        return ET.tostring(context, encoding="unicode")
\ No newline at end of file
diff --git a/sia/command.py b/sia/command.py
index 883854c..c57b177 100644
--- a/sia/command.py
+++ b/sia/command.py
@@ -1,9 +1,8 @@
 from abc import ABC, abstractmethod
 from typing import TYPE_CHECKING
 
-if TYPE_CHECKING:
-    from .working_memory import WorkingMemory
-    from .command_result import CommandResult
+from .working_memory import WorkingMemory
+from .command_result import CommandResult
 
 class Command(ABC):
     """
@@ -12,7 +11,7 @@ class Command(ABC):
     """
     
     @abstractmethod
-    def execute(self, memory: 'WorkingMemory') -> 'CommandResult':
+    def execute(self, memory: WorkingMemory) -> CommandResult:
         """
         Execute the command on the given working memory.
         
diff --git a/sia/web_agent.py b/sia/web_agent.py
new file mode 100644
index 0000000..c2ac35d
--- /dev/null
+++ b/sia/web_agent.py
@@ -0,0 +1,143 @@
+from enum import Enum, auto
+from typing import Callable, List, Optional
+
+from .base_agent import BaseAgent
+from .command import Command
+from .command_result import CommandResult
+from .llm_engine import LlmEngine
+from .response_parser import ResponseParser
+from .system_metrics import SystemMetrics
+from .working_memory import WorkingMemory
+from .xml_validator import XMLValidator
+
+class WebAgentState(Enum):
+    """
+    States for the web agent state machine.
+    
+    States:
+        UPDATE: Updating system metrics and working memory entries
+        CONTEXT_APPROVAL: Waiting for human approval of context
+        INFERENCE: Processing context through LLM
+        RESPONSE_APPROVAL: Waiting for human approval of LLM response
+    """
+    UPDATE = auto()
+    CONTEXT_APPROVAL = auto()
+    INFERENCE = auto()
+    RESPONSE_APPROVAL = auto()
+
+class WebAgent(BaseAgent):
+    """
+    Agent implementation for interactive web interface.
+    
+    Uses a state machine to allow human intervention between steps.
+    Broadcasts state changes to registered handlers.
+    """
+    
+    def __init__(self,
+                system_prompt: str,
+                action_schema: str, 
+                working_memory: WorkingMemory,
+                system_metrics: SystemMetrics,
+                llm: LlmEngine,
+                validator: XMLValidator,
+                parser: ResponseParser):
+        """
+        Initialize web agent with required components.
+        """
+        super().__init__(action_schema, working_memory, system_metrics, llm, validator, parser)
+        self.context = ""  
+        self.response = ""
+        self._system_prompt = system_prompt
+        self._current_state = WebAgentState.UPDATE
+        self._validation_error: Optional[str] = None
+        self._state_change_handlers: List[Callable[[WebAgentState], None]] = []
+        self._response_change_handlers: List[Callable[[str], None]] = []
+        self._command_result: Optional[CommandResult] = None
+
+        
+    @property
+    def current_state(self) -> WebAgentState:
+        """Get the current state of the agent."""
+        return self._current_state
+    
+    @property
+    def command_result(self) -> Optional[CommandResult]:
+        """Get the result of the last command execution."""
+        return self._command_result
+        
+    def add_state_change_handler(self, handler: Callable[[WebAgentState], None]) -> None:
+        """
+        Add a callback for state changes.
+        
+        Args:
+            handler: Function to call with new state
+        """
+        if handler not in self._state_change_handlers:
+            self._state_change_handlers.append(handler)
+    
+    def add_response_change_handler(self, handler: Callable[[str], None]) -> None:
+        """
+        Add a callback for response changes.
+
+        Args:
+            handler: Function to call with new response
+        """
+        if handler not in self._response_change_handlers:
+            self._response_change_handlers.append(handler)
+            
+    def _notify_state_change(self) -> None:
+        """Notify all handlers of state change."""
+        for handler in self._state_change_handlers:
+            handler(self._current_state)
+    
+    def _notify_response_change(self) -> None:
+        """Notify all handlers of response change."""
+        for handler in self._response_change_handlers:
+            handler(self._response)
+    
+    def _set_response(self, response: str) -> None:
+        """
+        Set the current response and notify handlers.
+
+        Args:
+            response: New response
+        """
+        self._response = response
+        self._validation_error = self._validator.validate(self._response)
+        self._notify_response_change()
+        
+    def approve_context(self) -> None:
+        if self._current_state != WebAgentState.CONTEXT_APPROVAL:
+            raise Exception("Not in CONTEXT_APPROVAL state")
+
+        self._set_response("")
+        self._current_state = WebAgentState.INFERENCE
+        self._notify_state_change()
+
+        response_token_iter = self._llm.infer(self._system_prompt, self.context)
+
+        for token in response_token_iter:
+            self._set_response(self._response + token)
+
+        self._current_state = WebAgentState.RESPONSE_APPROVAL
+        self._notify_state_change()
+            
+    def approve_response(self) -> None:
+        if self._current_state != WebAgentState.RESPONSE_APPROVAL:
+            raise Exception("Not in RESPONSE_APPROVAL state")
+
+        self._current_state = WebAgentState.UPDATE
+        self._notify_state_change()
+
+        parse_result = self._parser.parse(self._response)
+        if isinstance(parse_result, Command):
+            result = parse_result.execute(self._working_memory)
+            self._command_result = result
+        else:
+            self._working_memory.add_entry(parse_result)
+        
+        self._working_memory.update()
+        self._context = self._compile_context()
+
+        self._current_state = WebAgentState.CONTEXT_APPROVAL
+        self._notify_state_change()
\ No newline at end of file
diff --git a/test/base_agent_test.py b/test/base_agent_test.py
index 2ff4731..12cd5e3 100644
--- a/test/base_agent_test.py
+++ b/test/base_agent_test.py
@@ -2,6 +2,7 @@ import unittest
 from datetime import datetime
 from unittest.mock import Mock, MagicMock, patch
 import xml.etree.ElementTree as ET
+import logging
 
 from sia.web_io_buffer import WebIOBuffer
 from sia.working_memory import WorkingMemory
@@ -47,38 +48,48 @@ class BaseAgentTest(unittest.TestCase):
         self.mock_metrics = Mock(spec=SystemMetrics)
         self.mock_validator = Mock(spec=XMLValidator)
         self.io_buffer = WebIOBuffer()
+        self.working_memory = WorkingMemory()
         
-        # Mock metrics context
-        metrics_elem = ET.Element("context")
-        metrics_elem.set("time", "2024-10-31T12:00:00Z")
-        metrics_elem.set("cpu", "10")
-        metrics_elem.set("gpu", "20")
-        metrics_elem.set("memory_used", "1000")
-        metrics_elem.set("memory_total", "2000")
-        metrics_elem.set("disk_used", "5000")
-        metrics_elem.set("disk_total", "10000")
-        metrics_elem.set("context", "50")
-        metrics_elem.set("stdin", "0")
-        self.mock_metrics.generate_context.return_value = metrics_elem
+        # Create parser with IO buffer
+        self.parser = ResponseParser(self.io_buffer)
         
-        # Create test agent with mocked components
-        with patch('sia.base_agent.LlmEngine') as mock_llm_class, \
-             patch('sia.base_agent.SystemMetrics') as mock_metrics_class, \
-             patch('sia.base_agent.XMLValidator') as mock_validator_class:
+        # Mock metrics context generator
+        def generate_context(context_size):
+            metrics_elem = ET.Element("context")
+            metrics_elem.set("time", "2024-10-31T12:00:00Z")
+            metrics_elem.set("cpu", "10")
+            metrics_elem.set("gpu", "20")
+            metrics_elem.set("memory_used", "1000")
+            metrics_elem.set("memory_total", "2000")
+            metrics_elem.set("disk_used", "5000")
+            metrics_elem.set("disk_total", "10000")
+            metrics_elem.set("context", str(int(context_size * 100)))
+            metrics_elem.set("stdin", "0")
+            return metrics_elem
             
-            mock_llm_class.return_value = self.mock_llm
-            mock_metrics_class.return_value = self.mock_metrics
-            mock_validator_class.return_value = self.mock_validator
-            
-            self.agent = TestBaseAgent(
-                model_path="/test/model",
-                system_prompt="test prompt",
-                action_schema="test schema",
-                io_buffer=self.io_buffer
-            )
+        self.mock_metrics.generate_context.side_effect = generate_context
+        
+        # Create test agent with required components
+        self.agent = TestBaseAgent(
+            action_schema="test schema",
+            working_memory=self.working_memory,
+            system_metrics=self.mock_metrics,
+            llm=self.mock_llm,
+            validator=self.mock_validator,
+            parser=self.parser
+        )
         
         # Set timestamp for entries
         self.test_timestamp = datetime(2024, 10, 31, 12, 0, 0)
+        
+        # Capture logging output
+        self.log_records = []
+        logging.getLogger().handlers = []
+        logging.getLogger().addHandler(self.log_handler)
+        
+    def log_handler(self, record):
+        """Capture log records for testing."""
+        self.log_records.append(record)
     
     def tearDown(self):
         """Clean up resources."""
@@ -87,13 +98,11 @@ class BaseAgentTest(unittest.TestCase):
             
     def test_initialization(self):
         """Test agent initialization and component setup."""
-        self.assertIsInstance(self.agent._working_memory, WorkingMemory)
+        self.assertEqual(self.agent._working_memory, self.working_memory)
         self.assertEqual(self.agent._metrics, self.mock_metrics)
         self.assertEqual(self.agent._llm, self.mock_llm)
         self.assertEqual(self.agent._validator, self.mock_validator)
-        self.assertEqual(self.agent._io_buffer, self.io_buffer)
-        self.assertIsInstance(self.agent._parser, ResponseParser)
-        self.assertEqual(self.agent._system_prompt, "test prompt")
+        self.assertEqual(self.agent._parser, self.parser)
         self.assertEqual(self.agent._action_schema, "test schema")
         
     def test_cleanup(self):
@@ -107,16 +116,17 @@ class BaseAgentTest(unittest.TestCase):
         
         # Parse context and verify structure
         root = ET.fromstring(context)
-        self.assertEqual(root.tag, "state")
+        self.assertEqual(root.tag, "context")
         
-        # Check metrics element
-        context_elem = root.find("context")
-        self.assertIsNotNone(context_elem)
-        self.assertEqual(context_elem.get("cpu"), "10")
-        self.assertEqual(context_elem.get("gpu"), "20")
+        # Check metrics
+        self.assertEqual(root.get("cpu"), "10")
+        self.assertEqual(root.get("gpu"), "20")
+        
+        # Check context size is 0 (empty memory)
+        self.assertEqual(root.get("context"), "0")
         
         # Check no memory entries
-        self.assertEqual(len(root.findall("*")), 1)  # Only metrics element
+        self.assertEqual(len(list(root)), 0)
         
     def test_compile_context_with_entries(self):
         """Test context compilation with working memory entries."""
@@ -129,8 +139,8 @@ class BaseAgentTest(unittest.TestCase):
         # Parse and verify context
         root = ET.fromstring(context)
         
-        # Check metrics and entry are present
-        self.assertEqual(len(root.findall("*")), 2)  # Metrics + reasoning
+        # Check context size reflects one entry
+        self.assertEqual(root.get("context"), "1")
         
         # Verify entry content
         reasoning_elem = root.find("reasoning")
@@ -152,11 +162,12 @@ class BaseAgentTest(unittest.TestCase):
         context = self.agent._compile_context()
         root = ET.fromstring(context)
         
-        # Verify all entries present
-        self.assertEqual(len(root.findall("reasoning")), 3)
+        # Check context size reflects three entries
+        self.assertEqual(root.get("context"), "3")
         
         # Verify entry order maintained
         reasoning_elems = root.findall("reasoning")
+        self.assertEqual(len(reasoning_elems), 3)
         for i, elem in enumerate(reasoning_elems):
             self.assertEqual(elem.get("id"), f"id-{i}")
             self.assertEqual(elem.text, f"<![CDATA[test {i}]]>")
\ No newline at end of file
diff --git a/test/web_agent_test.py b/test/web_agent_test.py
new file mode 100644
index 0000000..a64172b
--- /dev/null
+++ b/test/web_agent_test.py
@@ -0,0 +1,233 @@
+import unittest
+from datetime import datetime
+from unittest.mock import Mock, MagicMock, patch, call
+import xml.etree.ElementTree as ET
+from typing import Iterator
+
+from sia.web_io_buffer import WebIOBuffer
+from sia.working_memory import WorkingMemory
+from sia.system_metrics import SystemMetrics
+from sia.llm_engine import LlmEngine
+from sia.xml_validator import XMLValidator
+from sia.response_parser import ResponseParser
+from sia.web_agent import WebAgent, WebAgentState
+from sia.command import Command
+from sia.command_result import CommandResult
+from sia.reasoning_entry import ReasoningEntry
+from sia.parse_error_entry import ParseErrorEntry
+from sia.entry import Entry
+
+class MockCommand(Command):
+    """Mock command for testing execution flow."""
+    def __init__(self, result: CommandResult):
+        self.result = result
+        self.executed = False
+        
+    def execute(self, memory: WorkingMemory) -> CommandResult:
+        self.executed = True
+        return self.result
+
+class WebAgentTest(unittest.TestCase):
+    def setUp(self):
+        """Set up test cases with mocked components."""
+        # Create mocks
+        self.mock_llm = Mock(spec=LlmEngine)
+        self.mock_metrics = Mock(spec=SystemMetrics)
+        self.mock_validator = Mock(spec=XMLValidator)
+        self.io_buffer = WebIOBuffer()
+        self.working_memory = WorkingMemory()
+        
+        # Mock validator to pass by default
+        self.mock_validator.validate.return_value = None
+        
+        # Create parser with IO buffer
+        self.parser = ResponseParser(self.io_buffer)
+        
+        # Mock metrics context generator
+        def generate_context(context_size):
+            metrics_elem = ET.Element("context")
+            metrics_elem.set("time", "2024-10-31T12:00:00Z")
+            metrics_elem.set("cpu", "10")
+            metrics_elem.set("gpu", "20")
+            metrics_elem.set("memory_used", "1000")
+            metrics_elem.set("memory_total", "2000")
+            metrics_elem.set("disk_used", "5000")
+            metrics_elem.set("disk_total", "10000")
+            metrics_elem.set("context", str(int(context_size * 100)))
+            metrics_elem.set("stdin", "0")
+            return metrics_elem
+            
+        self.mock_metrics.generate_context.side_effect = generate_context
+        
+        # Create agent with all components
+        self.agent = WebAgent(
+            system_prompt="test prompt",
+            action_schema="test schema",
+            working_memory=self.working_memory,
+            system_metrics=self.mock_metrics,
+            llm=self.mock_llm,
+            validator=self.mock_validator,
+            parser=self.parser
+        )
+        
+        # Set timestamp for entries
+        self.test_timestamp = datetime(2024, 10, 31, 12, 0, 0)
+        
+        # Handler tracking
+        self.state_changes = []
+        self.response_changes = []
+        
+    def state_change_handler(self, state: WebAgentState):
+        """Track state changes for verification."""
+        self.state_changes.append(state)
+        
+    def response_change_handler(self, response: str):
+        """Track response changes for verification."""
+        self.response_changes.append(response)
+        
+    def test_initialization(self):
+        """Test initial state of web agent."""
+        self.assertEqual(self.agent.current_state, WebAgentState.UPDATE)
+        self.assertEqual(self.agent.context, "")
+        self.assertEqual(self.agent.response, "")
+        self.assertIsNone(self.agent._validation_error)
+        self.assertEqual(len(self.agent._state_change_handlers), 0)
+        self.assertEqual(len(self.agent._response_change_handlers), 0)
+        
+    def test_handler_registration(self):
+        """Test adding state and response change handlers."""
+        # Add handlers
+        self.agent.add_state_change_handler(self.state_change_handler)
+        self.agent.add_response_change_handler(self.response_change_handler)
+        
+        # Verify handlers added
+        self.assertEqual(len(self.agent._state_change_handlers), 1)
+        self.assertEqual(len(self.agent._response_change_handlers), 1)
+        
+        # Adding same handler twice should not duplicate
+        self.agent.add_state_change_handler(self.state_change_handler)
+        self.agent.add_response_change_handler(self.response_change_handler)
+        
+        self.assertEqual(len(self.agent._state_change_handlers), 1)
+        self.assertEqual(len(self.agent._response_change_handlers), 1)
+        
+    def test_approve_context_state_error(self):
+        """Test approving context in wrong state raises error."""
+        with self.assertRaises(Exception) as context:
+            self.agent.approve_context()
+        self.assertIn("Not in CONTEXT_APPROVAL state", str(context.exception))
+        
+    def test_approve_response_state_error(self):
+        """Test approving response in wrong state raises error."""
+        with self.assertRaises(Exception) as context:
+            self.agent.approve_response()
+        self.assertIn("Not in RESPONSE_APPROVAL state", str(context.exception))
+        
+    def test_context_approval_flow(self):
+        """Test complete context approval flow with state transitions."""
+        # Register handlers
+        self.agent.add_state_change_handler(self.state_change_handler)
+        self.agent.add_response_change_handler(self.response_change_handler)
+        
+        # Setup LLM response
+        def mock_infer(prompt: str, context: str) -> Iterator[str]:
+            yield "<reasoning>test reasoning</reasoning>"
+        self.mock_llm.infer.side_effect = mock_infer
+        
+        # Set initial state
+        self.agent._current_state = WebAgentState.CONTEXT_APPROVAL
+        
+        # Approve context
+        self.agent.approve_context()
+        
+        # Verify state transitions
+        expected_states = [
+            WebAgentState.INFERENCE,
+            WebAgentState.RESPONSE_APPROVAL
+        ]
+        self.assertEqual(self.state_changes, expected_states)
+        
+        # Verify response updates
+        self.assertEqual(len(self.response_changes), 2)  # Empty + final response
+        self.assertEqual(self.response_changes[0], "")
+        self.assertEqual(self.response_changes[1], "<reasoning>test reasoning</reasoning>")
+        
+    def test_response_approval_flow_command(self):
+        """Test response approval flow with command execution."""
+        # Register handlers
+        self.agent.add_state_change_handler(self.state_change_handler)
+        
+        # Setup command result
+        command_result = CommandResult.success()
+        mock_command = MockCommand(command_result)
+        
+        # Mock parser to return command
+        self.parser.parse = Mock(return_value=mock_command)
+        
+        # Set initial state and response
+        self.agent._current_state = WebAgentState.RESPONSE_APPROVAL
+        self.agent._response = "<stop/>"
+        
+        # Approve response
+        self.agent.approve_response()
+        
+        # Verify command executed
+        self.assertTrue(mock_command.executed)
+        
+        # Verify state transitions
+        expected_states = [
+            WebAgentState.UPDATE,
+            WebAgentState.CONTEXT_APPROVAL
+        ]
+        self.assertEqual(self.state_changes, expected_states)
+        
+        # Verify command result stored
+        self.assertEqual(self.agent.command_result, command_result)
+        
+    def test_response_approval_flow_entry(self):
+        """Test response approval flow with entry creation."""
+        # Register handlers
+        self.agent.add_state_change_handler(self.state_change_handler)
+        
+        # Set initial state and response
+        self.agent._current_state = WebAgentState.RESPONSE_APPROVAL
+        self.agent._response = "<reasoning>test reasoning</reasoning>"
+        
+        # Approve response
+        self.agent.approve_response()
+        
+        # Verify entry added to working memory
+        self.assertEqual(self.working_memory.get_entries_count(), 1)
+        entry = self.working_memory.get_entries()[0]
+        self.assertIsInstance(entry, ReasoningEntry)
+        self.assertEqual(entry.content, "test reasoning")
+        
+        # Verify state transitions
+        expected_states = [
+            WebAgentState.UPDATE,
+            WebAgentState.CONTEXT_APPROVAL
+        ]
+        self.assertEqual(self.state_changes, expected_states)
+        
+    def test_response_validation(self):
+        """Test response validation during response setting."""
+        # Register handlers
+        self.agent.add_response_change_handler(self.response_change_handler)
+        
+        # Mock validator to fail
+        error_message = "Invalid XML"
+        self.mock_validator.validate.return_value = error_message
+        
+        # Set response
+        self.agent._set_response("<invalid>")
+        
+        # Verify validation error stored
+        self.assertEqual(self.agent._validation_error, error_message)
+        
+        # Verify response updated
+        self.assertEqual(self.response_changes, ["<invalid>"])
+        
+    def tearDown(self):
+        """Clean up resources."""
+        if hasattr(self, 'agent'):
+            del self.agent
\ No newline at end of file