diff --git a/src/strands/event_loop/event_loop.py b/src/strands/event_loop/event_loop.py
index f5d00a201..1898b9bb7 100644
--- a/src/strands/event_loop/event_loop.py
+++ b/src/strands/event_loop/event_loop.py
@@ -152,6 +152,11 @@ async def event_loop_cycle(
             agent, cycle_span, cycle_trace, invocation_state, tracer, structured_output_context
         )
         async for model_event in model_events:
+            if isinstance(model_event, EventLoopStopEvent):
+                agent.event_loop_metrics.end_cycle(cycle_start_time, cycle_trace)
+                yield model_event
+                await model_events.aclose()  # clean-up async for-loop to avoid CancelledError
+                return
             if not isinstance(model_event, ModelStopReason):
                 yield model_event
 
@@ -368,6 +373,18 @@ async def _handle_model_execution(
                         stop_reason,
                     )
                     continue  # Retry the model call
+                elif after_model_call_event.terminate:
+                    logger.debug(
+                        "stop_reason=<%s>, termination_requested=<True> | hook requested agent termination",
+                        stop_reason,
+                    )
+                    invocation_state["request_state"]["stop_event_loop"] = True
+                    yield EventLoopStopEvent(
+                        stop_reason,
+                        message,
+                        agent.event_loop_metrics,
+                        invocation_state["request_state"],
+                    )
 
                 if stop_reason == "max_tokens":
                     message = recover_message_on_max_tokens_reached(message)
diff --git a/src/strands/hooks/events.py b/src/strands/hooks/events.py
index 1faa8a917..3f9ea323c 100644
--- a/src/strands/hooks/events.py
+++ b/src/strands/hooks/events.py
@@ -245,9 +245,13 @@ class ModelStopResponse:
     stop_response: ModelStopResponse | None = None
     exception: Exception | None = None
     retry: bool = False
+    terminate: bool = False
 
     def _can_write(self, name: str) -> bool:
-        return name == "retry"
+        return name in (
+            "retry",
+            "terminate",
+        )
 
     @property
     def should_reverse_callbacks(self) -> bool:
diff --git a/tests/strands/agent/test_agent_hooks.py b/tests/strands/agent/test_agent_hooks.py
index e8b7e5077..7db9a937a 100644
--- a/tests/strands/agent/test_agent_hooks.py
+++ b/tests/strands/agent/test_agent_hooks.py
@@ -686,3 +686,104 @@ async def capture_messages_hook(event: BeforeInvocationEvent):
 
     # structured_output_async uses deprecated path that doesn't pass messages
     assert received_messages is None
+
+
+@pytest.mark.asyncio
+async def test_hook_terminate_on_successful_call():
+    """Test that hooks can terminate even on successful model calls based on response content."""
+
+    mock_provider = MockedModelProvider(
+        [
+            {
+                "role": "assistant",
+                "content": [{"text": "First conversation successful"}],
+            },
+            {
+                "role": "assistant",
+                "content": [{"text": "Unnecessary follow-up conversation"}],
+            },
+        ]
+    )
+
+    # Hook that terminate if response is favorable
+    class SuccessfulTerminateHook:
+        def __init__(self, end_marker="success"):
+            self.end_marker = end_marker
+            self.call_count = 0
+
+        def register_hooks(self, registry):
+            registry.add_callback(strands.hooks.AfterModelCallEvent, self.handle_after_model_call)
+
+        async def handle_after_model_call(self, event):
+            self.call_count += 1
+
+            # Check successful responses for favorable markers
+            if event.stop_response:
+                message = event.stop_response.message
+                text_content = "".join(block.get("text", "") for block in message.get("content", []))
+
+                if self.end_marker in text_content:
+                    event.terminate = True
+
+    terminate_hook = SuccessfulTerminateHook(end_marker="success")
+    agent = Agent(model=mock_provider, hooks=[terminate_hook])
+
+    result = agent("Generate a response")
+
+    # Verify hook was called only once (For first favorable response)
+    assert terminate_hook.call_count == 1
+
+    # Verify final result is the favorable response
+    assert result.message["content"][0]["text"] == "First conversation successful"
+
+
+@pytest.mark.asyncio
+async def test_hook_terminate_gracefully_on_limits(agent_tool, tool_use):
+    """Test that hooks can terminate agent gracefully after maximum counts reached."""
+
+    mock_provider = MockedModelProvider(
+        [
+            {
+                "role": "assistant",
+                "content": [{"text": "First tool-use"}, {"toolUse": tool_use}],
+            },
+            {
+                "role": "assistant",
+                "content": [{"text": "Second tool-use"}, {"toolUse": tool_use}],
+            },
+            {
+                "role": "assistant",
+                "content": [{"text": "Third tool-use"}, {"toolUse": tool_use}],
+            },
+        ]
+    )
+
+    # Hook that counts number of calls
+    class GracefulTerminateHook:
+        def __init__(self, max_counts):
+            self.max_counts = max_counts
+            self.call_count = 0
+
+        def register_hooks(self, registry):
+            registry.add_callback(strands.hooks.AfterModelCallEvent, self.handle_after_model_call)
+
+        async def handle_after_model_call(self, event):
+            self.call_count += 1
+
+            if self.call_count > self.max_counts - 1:
+                event.terminate = True
+
+    terminate_hook = GracefulTerminateHook(max_counts=2)
+    agent = Agent(
+        model=mock_provider,
+        tools=[agent_tool],
+        hooks=[terminate_hook],
+    )
+
+    result = agent("Generate a response")
+
+    # Verify hook was called two times
+    assert terminate_hook.call_count == 2
+
+    # Verify final result is the second tool-use
+    assert result.message["content"][0]["text"] == "Second tool-use"