diff --git a/agent/src/agent.rs b/agent/src/agent.rs
index a9fa354..8a6633c 100644
--- a/agent/src/agent.rs
+++ b/agent/src/agent.rs
@@ -400,13 +400,11 @@ impl Agent {
         self.zmq_handler.publish_command_output(&message).await
     }
 
-    /// Execute nixos-rebuild with simulated output streaming (for now)
+    /// Execute nixos-rebuild with real-time output streaming
     async fn execute_nixos_rebuild_with_streaming(&self, command_id: &str, working_dir: &str) -> Result<()> {
+        use tokio::io::{AsyncBufReadExt, BufReader};
         use tokio::process::Command;
 
-        // Send progress updates during rebuild
-        self.send_command_output(command_id, "SystemRebuild", "Building...").await?;
-        
         let mut child = Command::new("sudo")
             .arg("/run/current-system/sw/bin/nixos-rebuild")
             .arg("switch")
@@ -416,18 +414,53 @@ impl Agent {
             .arg("--flake")
             .arg(".")
             .current_dir(working_dir)
+            .stdout(std::process::Stdio::piped())
+            .stderr(std::process::Stdio::piped())
             .spawn()?;
 
-        // Send periodic updates while waiting
-        let mut interval = tokio::time::interval(tokio::time::Duration::from_secs(5));
-        let mut update_count = 0;
-        
+        // Get stdout and stderr handles
+        let stdout = child.stdout.take().expect("Failed to get stdout");
+        let stderr = child.stderr.take().expect("Failed to get stderr");
+
+        // Create readers for both streams
+        let stdout_reader = BufReader::new(stdout);
+        let stderr_reader = BufReader::new(stderr);
+
+        let mut stdout_lines = stdout_reader.lines();
+        let mut stderr_lines = stderr_reader.lines();
+
+        // Stream output lines in real-time
         loop {
             tokio::select! {
-                _ = interval.tick() => {
-                    update_count += 1;
-                    self.send_command_output(command_id, "SystemRebuild", &format!("Building... ({} seconds)", update_count * 5)).await?;
+                // Read from stdout
+                line = stdout_lines.next_line() => {
+                    match line {
+                        Ok(Some(line)) => {
+                            self.send_command_output(command_id, "SystemRebuild", &line).await?;
+                        }
+                        Ok(None) => {
+                            // stdout closed
+                        }
+                        Err(e) => {
+                            self.send_command_output(command_id, "SystemRebuild", &format!("stdout error: {}", e)).await?;
+                        }
+                    }
                 }
+                // Read from stderr
+                line = stderr_lines.next_line() => {
+                    match line {
+                        Ok(Some(line)) => {
+                            self.send_command_output(command_id, "SystemRebuild", &line).await?;
+                        }
+                        Ok(None) => {
+                            // stderr closed
+                        }
+                        Err(e) => {
+                            self.send_command_output(command_id, "SystemRebuild", &format!("stderr error: {}", e)).await?;
+                        }
+                    }
+                }
+                // Wait for process completion
                 result = child.wait() => {
                     let status = result?;
                     if status.success() {