diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
index b50957ef3..9ca462bff 100644
--- a/CONTRIBUTING.md
+++ b/CONTRIBUTING.md
@@ -31,11 +31,17 @@ This project uses [hatchling](https://hatch.pypa.io/latest/build/#hatchling) as
 
 ### Setting Up Your Development Environment
 
-1. Install development dependencies:
+1. Entering virtual environment using `hatch` (recommended), then launch your IDE in the new shell.
+   ```bash
+   hatch shell dev
+   ```
+
+   Alternatively, install development dependencies in a manually created virtual environment:
    ```bash
    pip install -e ".[dev]" && pip install -e ".[litellm]
    ```
 
+
 2. Set up pre-commit hooks:
    ```bash
    pre-commit install -t pre-commit -t commit-msg
diff --git a/pyproject.toml b/pyproject.toml
index 43130ac9f..b50f04311 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -114,6 +114,11 @@ extra-args = [
     "-vv",
 ]
 
+[tool.hatch.envs.dev]
+dev-mode = true
+features = ["dev", "docs", "anthropic", "litellm", "llamaapi", "ollama"]
+
+
 
 [[tool.hatch.envs.hatch-test.matrix]]
 python = ["3.13", "3.12", "3.11", "3.10"]
diff --git a/src/strands/handlers/tool_handler.py b/src/strands/handlers/tool_handler.py
index 0803eca52..bc4ec1ce9 100644
--- a/src/strands/handlers/tool_handler.py
+++ b/src/strands/handlers/tool_handler.py
@@ -46,6 +46,7 @@ def preprocess(
     def process(
         self,
         tool: Any,
+        *,
         model: Model,
         system_prompt: Optional[str],
         messages: List[Any],