diff --git a/src/google/adk/agents/loop_agent.py b/src/google/adk/agents/loop_agent.py
index 72157a8303..e582278648 100644
--- a/src/google/adk/agents/loop_agent.py
+++ b/src/google/adk/agents/loop_agent.py
@@ -53,10 +53,15 @@ async def _run_async_impl(
     times_looped = 0
     while not self.max_iterations or times_looped < self.max_iterations:
       for sub_agent in self.sub_agents:
+        should_exit = False
         async for event in sub_agent.run_async(ctx):
           yield event
           if event.actions.escalate:
-            return
+            should_exit = True
+
+        if should_exit:
+          return
+
       times_looped += 1
     return
 
diff --git a/src/google/adk/tools/exit_loop_tool.py b/src/google/adk/tools/exit_loop_tool.py
index 181dc7e90a..200b66e5dc 100644
--- a/src/google/adk/tools/exit_loop_tool.py
+++ b/src/google/adk/tools/exit_loop_tool.py
@@ -21,3 +21,4 @@ def exit_loop(tool_context: ToolContext):
   Call this function only when you are instructed to do so.
   """
   tool_context.actions.escalate = True
+  tool_context.actions.skip_summarization = True
diff --git a/tests/unittests/agents/test_loop_agent.py b/tests/unittests/agents/test_loop_agent.py
index 33ff10fb71..30e1caa59c 100644
--- a/tests/unittests/agents/test_loop_agent.py
+++ b/tests/unittests/agents/test_loop_agent.py
@@ -68,6 +68,13 @@ async def _run_async_impl(
         ),
         actions=EventActions(escalate=True),
     )
+    yield Event(
+        author=self.name,
+        invocation_id=ctx.invocation_id,
+        content=types.Content(
+            parts=[types.Part(text=f'I have done my job after escalation!!')]
+        ),
+    )
 
 
 async def _create_parent_invocation_context(
@@ -115,9 +122,12 @@ async def test_run_async_with_escalate_action(request: pytest.FixtureRequest):
   escalating_agent = _TestingAgentWithEscalateAction(
       name=f'{request.function.__name__}_test_escalating_agent'
   )
+  ignored_agent = _TestingAgent(
+      name=f'{request.function.__name__}_test_ignored_agent'
+  )
   loop_agent = LoopAgent(
       name=f'{request.function.__name__}_test_loop_agent',
-      sub_agents=[non_escalating_agent, escalating_agent],
+      sub_agents=[non_escalating_agent, escalating_agent, ignored_agent],
   )
   parent_ctx = await _create_parent_invocation_context(
       request.function.__name__, loop_agent
@@ -125,7 +135,7 @@ async def test_run_async_with_escalate_action(request: pytest.FixtureRequest):
   events = [e async for e in loop_agent.run_async(parent_ctx)]
 
   # Only two events are generated because the sub escalating_agent escalates.
-  assert len(events) == 2
+  assert len(events) == 3
   assert events[0].author == non_escalating_agent.name
   assert events[1].author == escalating_agent.name
   assert events[0].content.parts[0].text == (
@@ -134,3 +144,6 @@ async def test_run_async_with_escalate_action(request: pytest.FixtureRequest):
   assert events[1].content.parts[0].text == (
       f'Hello, async {escalating_agent.name}!'
   )
+  assert (
+      events[2].content.parts[0].text == 'I have done my job after escalation!!'
+  )
diff --git a/tests/unittests/flows/llm_flows/test_agent_transfer.py b/tests/unittests/flows/llm_flows/test_agent_transfer.py
index fe26c42a36..f660903d4a 100644
--- a/tests/unittests/flows/llm_flows/test_agent_transfer.py
+++ b/tests/unittests/flows/llm_flows/test_agent_transfer.py
@@ -303,11 +303,9 @@ def test_auto_to_loop():
               name='exit_loop', response={'result': None}
           ),
       ),
-      # root_agent summarizes.
-      ('root_agent', 'response4'),
   ]
 
   # root_agent should still be the current agent because sub_agent_1 is loop.
   assert testing_utils.simplify_events(runner.run('test2')) == [
-      ('root_agent', 'response5'),
+      ('root_agent', 'response4'),
   ]