diff --git a/llms/mlx_lm/examples/tool_use.py b/llms/mlx_lm/examples/tool_use.py
new file mode 100644
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+++ b/llms/mlx_lm/examples/tool_use.py
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+# Copyright © 2025 Apple Inc.
+
+import json
+
+from mlx_lm import generate, load
+from mlx_lm.models.cache import make_prompt_cache
+
+# Specify the checkpoint
+checkpoint = "mlx-community/Qwen2.5-32B-Instruct-4bit"
+
+# Load the corresponding model and tokenizer
+model, tokenizer = load(path_or_hf_repo=checkpoint)
+
+
+# An example tool, make sure to include a docstring and type hints
+def multiply(a: float, b: float):
+    """
+    A function that multiplies two numbers
+
+    Args:
+        a: The first number to multiply
+        b: The second number to multiply
+    """
+    return a * b
+
+
+tools = {"multiply": multiply}
+
+# Specify the prompt and conversation history
+prompt = "Multiply 12234585 and 48838483920."
+messages = [{"role": "user", "content": prompt}]
+
+prompt = tokenizer.apply_chat_template(
+    messages, add_generation_prompt=True, tools=list(tools.values())
+)
+
+prompt_cache = make_prompt_cache(model)
+
+# Generate the initial tool call:
+response = generate(
+    model=model,
+    tokenizer=tokenizer,
+    prompt=prompt,
+    max_tokens=2048,
+    verbose=True,
+    prompt_cache=prompt_cache,
+)
+
+# Parse the tool call:
+# (Note, the tool call format is model specific)
+tool_open = "<tool_call>"
+tool_close = "</tool_call>"
+start_tool = response.find(tool_open) + len(tool_open)
+end_tool = response.find(tool_close)
+tool_call = json.loads(response[start_tool:end_tool].strip())
+tool_result = tools[tool_call["name"]](**tool_call["arguments"])
+
+# Put the tool result in the prompt
+messages = [{"role": "tool", "name": tool_call["name"], "content": tool_result}]
+prompt = tokenizer.apply_chat_template(
+    messages,
+    add_generation_prompt=True,
+)
+
+# Generate the final response:
+response = generate(
+    model=model,
+    tokenizer=tokenizer,
+    prompt=prompt,
+    max_tokens=2048,
+    verbose=True,
+    prompt_cache=prompt_cache,
+)