diff --git a/src/backend/base/langflow/components/logic/loop.py b/src/backend/base/langflow/components/logic/loop.py
index f49aab2b8..781eb0e73 100644
--- a/src/backend/base/langflow/components/logic/loop.py
+++ b/src/backend/base/langflow/components/logic/loop.py
@@ -54,7 +54,7 @@ class LoopComponent(Component):
         """Evaluate whether to stop item or done output."""
         current_index = self.ctx.get(f"{self._id}_index", 0)
         data_length = len(self.ctx.get(f"{self._id}_data", []))
-        return current_index > max(data_length - 1, 0)
+        return current_index > data_length
 
     def item_output(self) -> Data:
         """Output the next item in the list or stop if done."""
diff --git a/src/backend/base/langflow/helpers/data.py b/src/backend/base/langflow/helpers/data.py
index 07a3b65cc..bbd4346e2 100644
--- a/src/backend/base/langflow/helpers/data.py
+++ b/src/backend/base/langflow/helpers/data.py
@@ -1,3 +1,5 @@
+from collections import defaultdict
+
 from langchain_core.documents import Document
 
 from langflow.schema import Data
@@ -17,18 +19,42 @@ def docs_to_data(documents: list[Document]) -> list[Data]:
 
 
 def data_to_text_list(template: str, data: Data | list[Data]) -> tuple[list[str], list[Data]]:
-    r"""Formats `text` within Data objects based on a given template.
+    """Format text from Data objects using a template string.
 
-    Converts a Data object or a list of Data objects into a tuple containing a list of formatted strings
-    and a list of Data objects based on a given template.
+    This function processes Data objects and formats their content using a template string.
+    It handles various data structures and ensures consistent text formatting across different
+    input types.
+
+    Key Features:
+    - Supports single Data object or list of Data objects
+    - Handles nested dictionaries and extracts text from various locations
+    - Uses safe string formatting with fallback for missing keys
+    - Preserves original Data objects in output
 
     Args:
-        template (str): The format string template to be used for formatting the data.
-        data (Data | list[Data]): A single Data object or a list of Data objects to be formatted.
+        template: Format string with placeholders (e.g., "Hello {text}")
+                 Placeholders are replaced with values from Data objects
+        data: Either a single Data object or a list of Data objects to format
+              Each object can contain text, dictionaries, or nested data
 
     Returns:
-        tuple[list[str], list[Data]]: A tuple containing a list of formatted strings based on the
-                                      provided template and data, and a list of Data objects.
+        A tuple containing:
+        - List[str]: Formatted strings based on the template
+        - List[Data]: Original Data objects in the same order
+
+    Raises:
+        ValueError: If template is None
+        TypeError: If template is not a string
+
+    Examples:
+        >>> result = data_to_text_list("Hello {text}", Data(text="world"))
+        >>> assert result == (["Hello world"], [Data(text="world")])
+
+        >>> result = data_to_text_list(
+        ...     "{name} is {age}",
+        ...     Data(data={"name": "Alice", "age": 25})
+        ... )
+        >>> assert result == (["Alice is 25"], [Data(data={"name": "Alice", "age": 25})])
     """
     if data is None:
         return [], []
@@ -41,22 +67,37 @@ def data_to_text_list(template: str, data: Data | list[Data]) -> tuple[list[str]
         msg = f"Template must be a string, but got {type(template)}"
         raise TypeError(msg)
 
-    if isinstance(data, (Data)):
-        data = [data]
-    # Check if there are any format strings in the template
-    data_ = [
-        # If it is not a record, create one with the key "text"
-        Data(text=value) if not isinstance(value, Data) else value
-        for value in data
-    ]
-    formatted_text = []
-    for value in data_:
-        # Prevent conflict with 'data' keyword in template formatting
-        kwargs = value.data.copy()
-        data = kwargs.pop("data", value.data)
-        formatted_text.append(template.format(data=data, **kwargs))
+    formatted_text: list[str] = []
+    processed_data: list[Data] = []
 
-    return formatted_text, data_
+    data_list = [data] if isinstance(data, Data) else data
+
+    data_objects = [item if isinstance(item, Data) else Data(text=str(item)) for item in data_list]
+
+    for data_obj in data_objects:
+        format_dict = {}
+
+        if isinstance(data_obj.data, dict):
+            format_dict.update(data_obj.data)
+
+            if isinstance(data_obj.data.get("data"), dict):
+                format_dict.update(data_obj.data["data"])
+
+            elif "error" in format_dict:
+                format_dict["text"] = format_dict["error"]
+
+        format_dict["data"] = data_obj.data
+
+        safe_dict = defaultdict(str, format_dict)
+
+        try:
+            formatted_text.append(template.format_map(safe_dict))
+            processed_data.append(data_obj)
+        except ValueError as e:
+            msg = f"Error formatting template: {e!s}"
+            raise ValueError(msg) from e
+
+    return formatted_text, processed_data
 
 
 def data_to_text(template: str, data: Data | list[Data], sep: str = "\n") -> str:
diff --git a/src/backend/base/langflow/initial_setup/starter_projects/LoopTemplate.json b/src/backend/base/langflow/initial_setup/starter_projects/LoopTemplate.json
index 73964e4e0..b77b26686 100644
--- a/src/backend/base/langflow/initial_setup/starter_projects/LoopTemplate.json
+++ b/src/backend/base/langflow/initial_setup/starter_projects/LoopTemplate.json
@@ -443,7 +443,7 @@
                 "show": true,
                 "title_case": false,
                 "type": "code",
-                "value": "from langflow.custom import Component\nfrom langflow.io import DataInput, Output\nfrom langflow.schema import Data\n\n\nclass LoopComponent(Component):\n    display_name = \"Loop\"\n    description = (\n        \"Iterates over a list of Data objects, outputting one item at a time and aggregating results from loop inputs.\"\n    )\n    icon = \"infinity\"\n\n    inputs = [\n        DataInput(\n            name=\"data\",\n            display_name=\"Data\",\n            info=\"The initial list of Data objects to iterate over.\",\n        ),\n    ]\n\n    outputs = [\n        Output(display_name=\"Item\", name=\"item\", method=\"item_output\", allows_loop=True),\n        Output(display_name=\"Done\", name=\"done\", method=\"done_output\"),\n    ]\n\n    def initialize_data(self) -> None:\n        \"\"\"Initialize the data list, context index, and aggregated list.\"\"\"\n        if self.ctx.get(f\"{self._id}_initialized\", False):\n            return\n\n        # Ensure data is a list of Data objects\n        data_list = self._validate_data(self.data)\n\n        # Store the initial data and context variables\n        self.update_ctx(\n            {\n                f\"{self._id}_data\": data_list,\n                f\"{self._id}_index\": 0,\n                f\"{self._id}_aggregated\": [],\n                f\"{self._id}_initialized\": True,\n            }\n        )\n\n    def _validate_data(self, data):\n        \"\"\"Validate and return a list of Data objects.\"\"\"\n        if isinstance(data, Data):\n            return [data]\n        if isinstance(data, list) and all(isinstance(item, Data) for item in data):\n            return data\n        msg = \"The 'data' input must be a list of Data objects or a single Data object.\"\n        raise TypeError(msg)\n\n    def evaluate_stop_loop(self) -> bool:\n        \"\"\"Evaluate whether to stop item or done output.\"\"\"\n        current_index = self.ctx.get(f\"{self._id}_index\", 0)\n        data_length = len(self.ctx.get(f\"{self._id}_data\", []))\n        return current_index > max(data_length - 1, 0)\n\n    def item_output(self) -> Data:\n        \"\"\"Output the next item in the list or stop if done.\"\"\"\n        self.initialize_data()\n        current_item = Data(text=\"\")\n\n        if self.evaluate_stop_loop():\n            self.stop(\"item\")\n            return Data(text=\"\")\n\n        # Get data list and current index\n        data_list, current_index = self.loop_variables()\n        if current_index < len(data_list):\n            # Output current item and increment index\n            try:\n                current_item = data_list[current_index]\n            except IndexError:\n                current_item = Data(text=\"\")\n        self.aggregated_output()\n        self.update_ctx({f\"{self._id}_index\": current_index + 1})\n        return current_item\n\n    def done_output(self) -> Data:\n        \"\"\"Trigger the done output when iteration is complete.\"\"\"\n        self.initialize_data()\n\n        if self.evaluate_stop_loop():\n            self.stop(\"item\")\n            self.start(\"done\")\n\n            return self.ctx.get(f\"{self._id}_aggregated\", [])\n        self.stop(\"done\")\n        return Data(text=\"\")\n\n    def loop_variables(self):\n        \"\"\"Retrieve loop variables from context.\"\"\"\n        return (\n            self.ctx.get(f\"{self._id}_data\", []),\n            self.ctx.get(f\"{self._id}_index\", 0),\n        )\n\n    def aggregated_output(self) -> Data:\n        \"\"\"Return the aggregated list once all items are processed.\"\"\"\n        self.initialize_data()\n\n        # Get data list and aggregated list\n        data_list = self.ctx.get(f\"{self._id}_data\", [])\n        aggregated = self.ctx.get(f\"{self._id}_aggregated\", [])\n\n        # Check if loop input is provided and append to aggregated list\n        if self.item is not None and not isinstance(self.item, str) and len(aggregated) <= len(data_list):\n            aggregated.append(self.item)\n            self.update_ctx({f\"{self._id}_aggregated\": aggregated})\n        return aggregated\n"
+                "value": "from langflow.custom import Component\nfrom langflow.io import DataInput, Output\nfrom langflow.schema import Data\n\n\nclass LoopComponent(Component):\n    display_name = \"Loop\"\n    description = (\n        \"Iterates over a list of Data objects, outputting one item at a time and aggregating results from loop inputs.\"\n    )\n    icon = \"infinity\"\n\n    inputs = [\n        DataInput(\n            name=\"data\",\n            display_name=\"Data\",\n            info=\"The initial list of Data objects to iterate over.\",\n        ),\n    ]\n\n    outputs = [\n        Output(display_name=\"Item\", name=\"item\", method=\"item_output\", allows_loop=True),\n        Output(display_name=\"Done\", name=\"done\", method=\"done_output\"),\n    ]\n\n    def initialize_data(self) -> None:\n        \"\"\"Initialize the data list, context index, and aggregated list.\"\"\"\n        if self.ctx.get(f\"{self._id}_initialized\", False):\n            return\n\n        # Ensure data is a list of Data objects\n        data_list = self._validate_data(self.data)\n\n        # Store the initial data and context variables\n        self.update_ctx(\n            {\n                f\"{self._id}_data\": data_list,\n                f\"{self._id}_index\": 0,\n                f\"{self._id}_aggregated\": [],\n                f\"{self._id}_initialized\": True,\n            }\n        )\n\n    def _validate_data(self, data):\n        \"\"\"Validate and return a list of Data objects.\"\"\"\n        if isinstance(data, Data):\n            return [data]\n        if isinstance(data, list) and all(isinstance(item, Data) for item in data):\n            return data\n        msg = \"The 'data' input must be a list of Data objects or a single Data object.\"\n        raise TypeError(msg)\n\n    def evaluate_stop_loop(self) -> bool:\n        \"\"\"Evaluate whether to stop item or done output.\"\"\"\n        current_index = self.ctx.get(f\"{self._id}_index\", 0)\n        data_length = len(self.ctx.get(f\"{self._id}_data\", []))\n        return current_index > data_length\n\n    def item_output(self) -> Data:\n        \"\"\"Output the next item in the list or stop if done.\"\"\"\n        self.initialize_data()\n        current_item = Data(text=\"\")\n\n        if self.evaluate_stop_loop():\n            self.stop(\"item\")\n            return Data(text=\"\")\n\n        # Get data list and current index\n        data_list, current_index = self.loop_variables()\n        if current_index < len(data_list):\n            # Output current item and increment index\n            try:\n                current_item = data_list[current_index]\n            except IndexError:\n                current_item = Data(text=\"\")\n        self.aggregated_output()\n        self.update_ctx({f\"{self._id}_index\": current_index + 1})\n        return current_item\n\n    def done_output(self) -> Data:\n        \"\"\"Trigger the done output when iteration is complete.\"\"\"\n        self.initialize_data()\n\n        if self.evaluate_stop_loop():\n            self.stop(\"item\")\n            self.start(\"done\")\n\n            return self.ctx.get(f\"{self._id}_aggregated\", [])\n        self.stop(\"done\")\n        return Data(text=\"\")\n\n    def loop_variables(self):\n        \"\"\"Retrieve loop variables from context.\"\"\"\n        return (\n            self.ctx.get(f\"{self._id}_data\", []),\n            self.ctx.get(f\"{self._id}_index\", 0),\n        )\n\n    def aggregated_output(self) -> Data:\n        \"\"\"Return the aggregated list once all items are processed.\"\"\"\n        self.initialize_data()\n\n        # Get data list and aggregated list\n        data_list = self.ctx.get(f\"{self._id}_data\", [])\n        aggregated = self.ctx.get(f\"{self._id}_aggregated\", [])\n\n        # Check if loop input is provided and append to aggregated list\n        if self.item is not None and not isinstance(self.item, str) and len(aggregated) <= len(data_list):\n            aggregated.append(self.item)\n            self.update_ctx({f\"{self._id}_aggregated\": aggregated})\n        return aggregated\n"
               },
               "data": {
                 "_input_type": "DataInput",
diff --git a/src/backend/tests/unit/helpers/test_data.py b/src/backend/tests/unit/helpers/test_data.py
index 82368951f..50324da42 100644
--- a/src/backend/tests/unit/helpers/test_data.py
+++ b/src/backend/tests/unit/helpers/test_data.py
@@ -88,16 +88,18 @@ def test_data_to_text_list__template_wrong_placeholder():
     template = "My favorite color is {color}"
     data = Data(data={"fruit": "apple"})
 
-    with pytest.raises(KeyError):
-        data_to_text_list(template, data)
+    # Should not raise KeyError due to defaultdict behavior
+    result = data_to_text_list(template, data)
+    assert result == (["My favorite color is "], [data])
 
 
 def test_data_to_text_list__data_with_data_attribute_empty():
     template = "My favorite color is {color}"
     data = Data(data={})
 
-    with pytest.raises(KeyError):
-        data_to_text_list(template, data)
+    # Should not raise KeyError due to defaultdict behavior
+    result = data_to_text_list(template, data)
+    assert result == (["My favorite color is "], [data])
 
 
 def test_data_to_text_list__data_contains_nested_data_key():
diff --git a/src/backend/tests/unit/helpers/test_data_to_text_list.py b/src/backend/tests/unit/helpers/test_data_to_text_list.py
new file mode 100644
index 000000000..2f87ac0ef
--- /dev/null
+++ b/src/backend/tests/unit/helpers/test_data_to_text_list.py
@@ -0,0 +1,134 @@
+import pytest
+from langflow.helpers.data import data_to_text_list
+from langflow.schema import Data
+
+
+@pytest.mark.parametrize(
+    ("template", "data", "expected_text"),
+    [
+        # Test basic string data
+        (
+            "Text: {text}",
+            Data(text="Hello"),
+            ["Text: Hello"],
+        ),
+        # Test dictionary data
+        (
+            "{name} is {age} years old",
+            Data(data={"name": "Alice", "age": 25}),
+            ["Alice is 25 years old"],
+        ),
+        # Test list of Data objects
+        (
+            "{name} is {age} years old",
+            [
+                Data(data={"name": "Alice", "age": 25}),
+                Data(data={"name": "Bob", "age": 30}),
+            ],
+            ["Alice is 25 years old", "Bob is 30 years old"],
+        ),
+        # Test nested data dictionary
+        (
+            "User: {text}",
+            Data(data={"data": {"text": "Hello World"}}),
+            ["User: Hello World"],
+        ),
+        # Test error message in data
+        (
+            "Error: {text}",
+            Data(data={"error": "Something went wrong"}),
+            ["Error: Something went wrong"],
+        ),
+        # Test non-Data object conversion
+        (
+            "Value: {text}",
+            Data(text="Simple string"),
+            ["Value: Simple string"],
+        ),
+    ],
+)
+def test_data_to_text_list_parametrized(template, data, expected_text):
+    """Test various input combinations for data_to_text_list."""
+    result = data_to_text_list(template, data)
+    assert result[0] == expected_text
+    assert all(isinstance(d, Data) for d in result[1])
+
+
+def test_data_to_text_list_none_data():
+    """Test handling of None data input."""
+    result = data_to_text_list("template", None)
+    assert result == ([], [])
+
+
+def test_data_to_text_list_none_template():
+    """Test handling of None template input."""
+    with pytest.raises(ValueError, match="Template must be a string, but got None"):
+        data_to_text_list(None, Data(text="test"))
+
+
+def test_data_to_text_list_invalid_template_type():
+    """Test handling of invalid template type."""
+    with pytest.raises(TypeError, match="Template must be a string, but got"):
+        data_to_text_list(123, Data(text="test"))
+
+
+def test_data_to_text_list_missing_key():
+    """Test handling of missing template key."""
+    template = "Hello {missing_key}"
+    data = Data(data={"existing_key": "value"})
+    # Should not raise KeyError due to defaultdict
+    result = data_to_text_list(template, data)
+    assert result == (["Hello "], [data])
+
+
+def test_data_to_text_list_empty_data_dict():
+    """Test handling of empty data dictionary."""
+    template = "Hello {text}"
+    data = Data(data={})
+    result = data_to_text_list(template, data)
+    assert result == (["Hello "], [data])
+
+
+def test_data_to_text_list_mixed_data_types():
+    """Test handling of mixed data types in list."""
+    template = "Item: {text}"
+    data = [
+        Data(text="First"),
+        "Second",
+        Data(data={"text": "Third"}),
+        123,
+    ]
+    result = data_to_text_list(template, data)
+    expected_texts = [
+        "Item: First",
+        "Item: Second",
+        "Item: Third",
+        "Item: 123",
+    ]
+    assert result[0] == expected_texts
+    assert len(result[1]) == 4
+    assert all(isinstance(d, Data) for d in result[1])
+
+
+def test_data_to_text_list_complex_nested_data():
+    """Test handling of complex nested data structures."""
+    template = "Name: {name}, Info: {text}, Status: {status}"
+    data = Data(data={"name": "Test", "data": {"text": "Nested text", "status": "active"}})
+    result = data_to_text_list(template, data)
+    expected = (["Name: Test, Info: Nested text, Status: active"], [data])
+    assert result == expected
+
+
+def test_data_to_text_list_empty_template():
+    """Test handling of empty template string."""
+    data = Data(data={"key": "value"})
+    result = data_to_text_list("", data)
+    assert result == ([""], [data])
+
+
+def test_data_to_text_list_string_data():
+    """Test handling of string data in Data object."""
+    template = "Message: {text}"
+    data = Data(data={"text": "Direct string"})
+    result = data_to_text_list(template, data)
+    assert result == (["Message: Direct string"], [data])
diff --git a/src/frontend/tests/core/integrations/Memory Chatbot.spec.ts b/src/frontend/tests/core/integrations/Memory Chatbot.spec.ts
index ab9bf2e55..7a7af1f87 100644
--- a/src/frontend/tests/core/integrations/Memory Chatbot.spec.ts	
+++ b/src/frontend/tests/core/integrations/Memory Chatbot.spec.ts	
@@ -1,4 +1,4 @@
-import { test } from "@playwright/test";
+import { expect, test } from "@playwright/test";
 import * as dotenv from "dotenv";
 import path from "path";
 import { awaitBootstrapTest } from "../../utils/await-bootstrap-test";
@@ -63,8 +63,16 @@ withEventDeliveryModes(
 
     await page.getByTestId("button-send").last().click();
 
-    await page.waitForSelector("text=roar", { timeout: 30000 });
-    await page.getByText("roar").last().isVisible();
+    await page.waitForSelector(".markdown", { timeout: 3000 });
+
+    const textContents = await page
+      .locator(".markdown")
+      .last()
+      .allTextContents();
+
+    const concatAllText = textContents.join(" ");
+    expect(concatAllText.length).toBeGreaterThan(20);
+
     await page.getByText("Default Session").last().click();
 
     await page.getByText("timestamp", { exact: true }).last().isVisible();
diff --git a/src/frontend/tests/extended/features/loop-component.spec.ts b/src/frontend/tests/extended/features/loop-component.spec.ts
index 7c4045eb5..d7342a44a 100644
--- a/src/frontend/tests/extended/features/loop-component.spec.ts
+++ b/src/frontend/tests/extended/features/loop-component.spec.ts
@@ -237,6 +237,6 @@ test(
 
     // Count occurrences of modified_value in output
     const matches = output?.match(/modified_value/g) || [];
-    expect(matches).toHaveLength(1);
+    expect(matches).toHaveLength(2);
   },
 );