diff --git a/common/arg.cpp b/common/arg.cpp
index c289ff713da0..0fc94e553215 100644
--- a/common/arg.cpp
+++ b/common/arg.cpp
@@ -3296,6 +3296,20 @@ common_params_context common_params_parser_init(common_params & params, llama_ex
             params.sampling.reasoning_budget_message = value;
         }
     ).set_examples({LLAMA_EXAMPLE_SERVER, LLAMA_EXAMPLE_COMPLETION, LLAMA_EXAMPLE_CLI}).set_env("LLAMA_ARG_THINK_BUDGET_MESSAGE"));
+    add_opt(common_arg(
+        {"--reasoning-preserve"},
+        {"--no-reasoning-preserve"},
+        "preserve reasoning trace in the full history, not just the last assistant message (default: template default)\n"
+        "compatible with certain templates having 'supports_preserve_reasoning' capability\n"
+        "example: https://docs.z.ai/guides/capabilities/thinking-mode#preserved-thinking",
+        [](common_params & params, bool value) {
+            if (value) {
+                params.default_template_kwargs["preserve_reasoning"] = "true";
+            } else {
+                params.default_template_kwargs["preserve_reasoning"] = "false";
+            }
+        }
+    ).set_examples({LLAMA_EXAMPLE_SERVER, LLAMA_EXAMPLE_COMPLETION, LLAMA_EXAMPLE_CLI}).set_env("LLAMA_ARG_REASONING_PRESERVE"));
     add_opt(common_arg(
         {"--chat-template"}, "JINJA_TEMPLATE",
         string_format(
diff --git a/common/chat.cpp b/common/chat.cpp
index 0cee80434ece..efba80e45914 100644
--- a/common/chat.cpp
+++ b/common/chat.cpp
@@ -912,6 +912,10 @@ static std::string common_chat_template_direct_apply_impl(
     if (inputs.add_generation_prompt) {
         inp["add_generation_prompt"] = true;
     }
+    if (inp.contains("preserve_reasoning") && inp["preserve_reasoning"].is_boolean()) {
+        bool enabled = inp["preserve_reasoning"].get<bool>();
+        jinja::caps_apply_preserve_reasoning(ctx, enabled);
+    }
 
     jinja::global_from_json(ctx, inp, inputs.mark_input);
 
diff --git a/common/jinja/caps.cpp b/common/jinja/caps.cpp
index ead864763e1d..ae378ebd4fd0 100644
--- a/common/jinja/caps.cpp
+++ b/common/jinja/caps.cpp
@@ -16,22 +16,34 @@ using json = nlohmann::ordered_json;
 namespace jinja {
 
 using caps_json_fn = std::function<json()>;
-using caps_analyze_fn = std::function<void(bool, value &, value &)>;
+using caps_ctx_fn = std::function<void(context &)>;
+using caps_analyze_fn = std::function<void(bool, value &, value &, const std::string &)>;
+
+void caps_apply_preserve_reasoning(jinja::context & ctx, bool enabled) {
+    ctx.set_val("preserve_thinking",         mk_val<value_bool>(enabled));
+    ctx.set_val("clear_thinking",            mk_val<value_bool>(!enabled));
+    ctx.set_val("truncate_history_thinking", mk_val<value_bool>(!enabled));
+}
 
 static void caps_try_execute(jinja::program & prog,
                              const caps_json_fn & messages_fn,
+                             const caps_ctx_fn & ctx_fn,
                              const caps_json_fn & tools_fn,
                              const caps_analyze_fn & analyze_fn) {
     context ctx;
     ctx.is_get_stats = true;
     jinja::global_from_json(ctx, json{
         {"messages", messages_fn()},
-        {"tools", tools_fn()},
+        {"tools", tools_fn ? tools_fn() : json::array()},
         {"bos_token", ""},
         {"eos_token", ""},
         {"add_generation_prompt", true}
     }, true);
 
+    if (ctx_fn) {
+        ctx_fn(ctx);
+    }
+
     auto messages = ctx.get_val("messages");
     auto tools = ctx.get_val("tools");
 
@@ -49,7 +61,7 @@ static void caps_try_execute(jinja::program & prog,
         // ignore exceptions during capability analysis
     }
 
-    analyze_fn(success, messages, tools);
+    analyze_fn(success, messages, tools, result);
 }
 
 // for debugging only
@@ -109,11 +121,9 @@ caps caps_get(jinja::program & prog) {
                 }
             });
         },
-        [&]() {
-            // tools
-            return json{nullptr};
-        },
-        [&](bool success, value & messages, value &) {
+        nullptr, // ctx_fn
+        nullptr, // tools_fn
+        [&](bool success, value & messages, value &, const std::string &) {
             auto & content = messages->at(0)->at("content");
             caps_print_stats(content, "messages[0].content");
             if (has_op(content, "selectattr") || has_op(content, "array_access")) {
@@ -145,11 +155,9 @@ caps caps_get(jinja::program & prog) {
                 },
             });
         },
-        [&]() {
-            // tools
-            return json::array();
-        },
-        [&](bool, value & messages, value &) {
+        nullptr, // ctx_fn
+        nullptr, // tools_fn
+        [&](bool, value & messages, value &, const std::string &) {
             auto & content = messages->at(0)->at("content");
             caps_print_stats(content, "messages[0].content");
             if (!content->stats.used) {
@@ -201,6 +209,7 @@ caps caps_get(jinja::program & prog) {
                 },
             });
         },
+        nullptr, // ctx_fn
         [&]() {
             // tools
             return json::array({
@@ -224,7 +233,7 @@ caps caps_get(jinja::program & prog) {
                 },
             });
         },
-        [&](bool success, value & messages, value & tools) {
+        [&](bool success, value & messages, value & tools, const std::string &) {
             if (!success) {
                 return; // Nothing can be inferred
             }
@@ -293,6 +302,7 @@ caps caps_get(jinja::program & prog) {
                     },
                 });
             },
+            nullptr, // ctx_fn
             [&]() {
                 // tools
                 return json::array({
@@ -316,7 +326,7 @@ caps caps_get(jinja::program & prog) {
                     },
                 });
             },
-            [&](bool success, value & messages, value & tools) {
+            [&](bool success, value & messages, value & tools, const std::string &) {
                 if (!success) {
                     result.supports_tool_calls = false;
                     result.supports_tools = false;
@@ -394,6 +404,7 @@ caps caps_get(jinja::program & prog) {
                 },
             });
         },
+        nullptr, // ctx_fn
         [&]() {
             // tools
             return json::array({
@@ -417,7 +428,7 @@ caps caps_get(jinja::program & prog) {
                 },
             });
         },
-        [&](bool success, value & messages, value & /*tools*/) {
+        [&](bool success, value & messages, value &, const std::string &) {
             if (!success) {
                 result.supports_parallel_tool_calls = false;
                 return;
@@ -438,11 +449,22 @@ caps caps_get(jinja::program & prog) {
     JJ_DEBUG("%s\n", ">>> Running capability check: preserve reasoning");
 
     // case: preserve reasoning content in chat history
+    const std::string reasoning_placeholder = "<REASONING_CONTENT_PLACEHOLDER>";
     caps_try_execute(
         prog,
         [&]() {
             // messages
             return json::array({
+                {
+                    {"role", "user"},
+                    {"content", "User message"}
+                },
+                {
+                    {"role", "assistant"},
+                    {"content", "Assistant message"},
+                    // check of reasoning_content deeper in the history, not just the last assistant message
+                    {"reasoning_content", reasoning_placeholder}
+                },
                 {
                     {"role", "user"},
                     {"content", "User message"}
@@ -458,14 +480,13 @@ caps caps_get(jinja::program & prog) {
                 },
             });
         },
-        [&]() {
-            // tools
-            return json::array();
+        [&](context & ctx) {
+            caps_apply_preserve_reasoning(ctx, true);
         },
-        [&](bool, value & messages, value &) {
-            auto & content = messages->at(1)->at("reasoning_content");
-            caps_print_stats(content, "messages[1].reasoning_content");
-            if (content->stats.used) {
+        nullptr, // tools_fn
+        [&](bool, value &, value &, const std::string & output) {
+            // note: we cannot use stats here because the reasoning_content may be used for "if" condition test, but not actually outputted in the final result
+            if (output.find(reasoning_placeholder) != std::string::npos) {
                 result.supports_preserve_reasoning = true;
             }
         }
diff --git a/common/jinja/caps.h b/common/jinja/caps.h
index 93a7fe09260e..a290cd7da627 100644
--- a/common/jinja/caps.h
+++ b/common/jinja/caps.h
@@ -12,7 +12,9 @@ struct caps {
     bool supports_tool_calls = true;
     bool supports_system_role = true;
     bool supports_parallel_tool_calls = true;
-    bool supports_preserve_reasoning = false; // support assistant message with reasoning_content
+
+    // supports preserve reasoning trace in the full history, not just the last assistant message
+    bool supports_preserve_reasoning = false;
 
     // one of the 2 content capabilities must be true
     bool supports_string_content = true;
@@ -29,4 +31,6 @@ struct caps {
 
 caps caps_get(jinja::program & prog);
 
+void caps_apply_preserve_reasoning(jinja::context & ctx, bool enabled);
+
 } // namespace jinja
diff --git a/tools/server/server-context.cpp b/tools/server/server-context.cpp
index bb1c236cbf77..ed8b036b6495 100644
--- a/tools/server/server-context.cpp
+++ b/tools/server/server-context.cpp
@@ -1538,6 +1538,19 @@ struct server_context_impl {
                 /* media_path            */ params_base.media_path,
                 /* force_pure_content    */ params_base.force_pure_content_parser
             };
+
+            {
+                auto caps = common_chat_templates_get_caps(chat_params.tmpls.get());
+                auto it = params_base.default_template_kwargs.find("preserve_reasoning");
+                bool supported = caps.at("supports_preserve_reasoning");
+                bool enabled = it != params_base.default_template_kwargs.end();
+                if (supported && !enabled) {
+                    SRV_INF("%s", "chat template supports preserving reasoning, consider enabling it via --reasoning-preserve\n");
+                }
+                if (!supported && enabled) {
+                    SRV_WRN("%s", "chat template does NOT support preserving reasoning, --reasoning-preserve has no effect\n");
+                }
+            }
         }
 
         return true;