diff --git a/vllm/entrypoints/openai/api_server.py b/vllm/entrypoints/openai/api_server.py
index e3285a9bf76d1..2f8b31c8a7ba7 100644
--- a/vllm/entrypoints/openai/api_server.py
+++ b/vllm/entrypoints/openai/api_server.py
@@ -21,6 +21,7 @@ from http import HTTPStatus
 from typing import Annotated, Any, Optional
 
 import prometheus_client
+import pydantic
 import regex as re
 import uvloop
 from fastapi import APIRouter, Depends, FastAPI, Form, HTTPException, Request
@@ -1203,6 +1204,142 @@ class XRequestIdMiddleware:
         return self.app(scope, receive, send_with_request_id)
 
 
+def _extract_content_from_chunk(chunk_data: dict) -> str:
+    """Extract content from a streaming response chunk."""
+    try:
+        from vllm.entrypoints.openai.protocol import (
+            ChatCompletionStreamResponse, CompletionStreamResponse)
+
+        # Try using Completion types for type-safe parsing
+        if chunk_data.get('object') == 'chat.completion.chunk':
+            chat_response = ChatCompletionStreamResponse.model_validate(
+                chunk_data)
+            if chat_response.choices and chat_response.choices[0].delta.content:
+                return chat_response.choices[0].delta.content
+        elif chunk_data.get('object') == 'text_completion':
+            completion_response = CompletionStreamResponse.model_validate(
+                chunk_data)
+            if completion_response.choices and completion_response.choices[
+                    0].text:
+                return completion_response.choices[0].text
+    except pydantic.ValidationError:
+        # Fallback to manual parsing
+        if 'choices' in chunk_data and chunk_data['choices']:
+            choice = chunk_data['choices'][0]
+            if 'delta' in choice and choice['delta'].get('content'):
+                return choice['delta']['content']
+            elif choice.get('text'):
+                return choice['text']
+    return ""
+
+
+class SSEDecoder:
+    """Robust Server-Sent Events decoder for streaming responses."""
+
+    def __init__(self):
+        self.buffer = ""
+        self.content_buffer = []
+
+    def decode_chunk(self, chunk: bytes) -> list[dict]:
+        """Decode a chunk of SSE data and return parsed events."""
+        import json
+
+        try:
+            chunk_str = chunk.decode('utf-8')
+        except UnicodeDecodeError:
+            # Skip malformed chunks
+            return []
+
+        self.buffer += chunk_str
+        events = []
+
+        # Process complete lines
+        while '\n' in self.buffer:
+            line, self.buffer = self.buffer.split('\n', 1)
+            line = line.rstrip('\r')  # Handle CRLF
+
+            if line.startswith('data: '):
+                data_str = line[6:].strip()
+                if data_str == '[DONE]':
+                    events.append({'type': 'done'})
+                elif data_str:
+                    try:
+                        event_data = json.loads(data_str)
+                        events.append({'type': 'data', 'data': event_data})
+                    except json.JSONDecodeError:
+                        # Skip malformed JSON
+                        continue
+
+        return events
+
+    def extract_content(self, event_data: dict) -> str:
+        """Extract content from event data."""
+        return _extract_content_from_chunk(event_data)
+
+    def add_content(self, content: str) -> None:
+        """Add content to the buffer."""
+        if content:
+            self.content_buffer.append(content)
+
+    def get_complete_content(self) -> str:
+        """Get the complete buffered content."""
+        return ''.join(self.content_buffer)
+
+
+def _log_streaming_response(response, response_body: list) -> None:
+    """Log streaming response with robust SSE parsing."""
+    from starlette.concurrency import iterate_in_threadpool
+
+    sse_decoder = SSEDecoder()
+    chunk_count = 0
+
+    def buffered_iterator():
+        nonlocal chunk_count
+
+        for chunk in response_body:
+            chunk_count += 1
+            yield chunk
+
+            # Parse SSE events from chunk
+            events = sse_decoder.decode_chunk(chunk)
+
+            for event in events:
+                if event['type'] == 'data':
+                    content = sse_decoder.extract_content(event['data'])
+                    sse_decoder.add_content(content)
+                elif event['type'] == 'done':
+                    # Log complete content when done
+                    full_content = sse_decoder.get_complete_content()
+                    if full_content:
+                        # Truncate if too long
+                        if len(full_content) > 2048:
+                            full_content = full_content[:2048] + ""
+                            "...[truncated]"
+                        logger.info(
+                            "response_body={streaming_complete: " \
+                            "content='%s', chunks=%d}",
+                            full_content, chunk_count)
+                    else:
+                        logger.info(
+                            "response_body={streaming_complete: " \
+                            "no_content, chunks=%d}",
+                            chunk_count)
+                    return
+
+    response.body_iterator = iterate_in_threadpool(buffered_iterator())
+    logger.info("response_body={streaming_started: chunks=%d}",
+                len(response_body))
+
+
+def _log_non_streaming_response(response_body: list) -> None:
+    """Log non-streaming response."""
+    try:
+        decoded_body = response_body[0].decode()
+        logger.info("response_body={%s}", decoded_body)
+    except UnicodeDecodeError:
+        logger.info("response_body={<binary_data>}")
+
+
 def build_app(args: Namespace) -> FastAPI:
     if args.disable_fastapi_docs:
         app = FastAPI(openapi_url=None,
@@ -1267,8 +1404,17 @@ def build_app(args: Namespace) -> FastAPI:
                 section async for section in response.body_iterator
             ]
             response.body_iterator = iterate_in_threadpool(iter(response_body))
-            logger.info("response_body={%s}",
-                        response_body[0].decode() if response_body else None)
+            # Check if this is a streaming response by looking at content-type
+            content_type = response.headers.get("content-type", "")
+            is_streaming = content_type == "text/event-stream; charset=utf-8"
+
+            # Log response body based on type
+            if not response_body:
+                logger.info("response_body={<empty>}")
+            elif is_streaming:
+                _log_streaming_response(response, response_body)
+            else:
+                _log_non_streaming_response(response_body)
             return response
 
     for middleware in args.middleware: