diff --git a/langchain/agents/agent.py b/langchain/agents/agent.py
index 01bc233a..e3eeb98c 100644
--- a/langchain/agents/agent.py
+++ b/langchain/agents/agent.py
@@ -435,10 +435,6 @@ class AgentExecutor(Chain, BaseModel):
                 llm_prefix="",
                 observation_prefix=self.agent.observation_prefix,
             )
-            return_direct = False
-        if return_direct:
-            # Set the log to "" because we do not want to log it.
-            return AgentFinish({self.agent.return_values[0]: observation}, "")
         return output, observation
 
     async def _atake_next_step(
@@ -483,9 +479,6 @@ class AgentExecutor(Chain, BaseModel):
                 observation_prefix=self.agent.observation_prefix,
             )
             return_direct = False
-        if return_direct:
-            # Set the log to "" because we do not want to log it.
-            return AgentFinish({self.agent.return_values[0]: observation}, "")
         return output, observation
 
     def _call(self, inputs: Dict[str, str]) -> Dict[str, Any]:
@@ -510,6 +503,10 @@ class AgentExecutor(Chain, BaseModel):
                 return self._return(next_step_output, intermediate_steps)
 
             intermediate_steps.append(next_step_output)
+            # See if tool should return directly
+            tool_return = self._get_tool_return(next_step_output)
+            if tool_return is not None:
+                return self._return(tool_return, intermediate_steps)
             iterations += 1
         output = self.agent.return_stopped_response(
             self.early_stopping_method, intermediate_steps, **inputs
@@ -538,8 +535,28 @@ class AgentExecutor(Chain, BaseModel):
                 return await self._areturn(next_step_output, intermediate_steps)
 
             intermediate_steps.append(next_step_output)
+            # See if tool should return directly
+            tool_return = self._get_tool_return(next_step_output)
+            if tool_return is not None:
+                return await self._areturn(tool_return, intermediate_steps)
+
             iterations += 1
         output = self.agent.return_stopped_response(
             self.early_stopping_method, intermediate_steps, **inputs
         )
         return await self._areturn(output, intermediate_steps)
+
+    def _get_tool_return(
+        self, next_step_output: Tuple[AgentAction, str]
+    ) -> Optional[AgentFinish]:
+        """Check if the tool is a returning tool."""
+        agent_action, observation = next_step_output
+        name_to_tool_map = {tool.name: tool for tool in self.tools}
+        # Invalid tools won't be in the map, so we return False.
+        if agent_action.tool in name_to_tool_map:
+            if name_to_tool_map[agent_action.tool].return_direct:
+                return AgentFinish(
+                    {self.agent.return_values[0]: observation},
+                    "",
+                )
+        return None
diff --git a/tests/unit_tests/agents/test_agent.py b/tests/unit_tests/agents/test_agent.py
index 6d906a83..e9d08317 100644
--- a/tests/unit_tests/agents/test_agent.py
+++ b/tests/unit_tests/agents/test_agent.py
@@ -230,6 +230,36 @@ def test_agent_tool_return_direct() -> None:
     assert output == "misalignment"
 
 
+def test_agent_tool_return_direct_in_intermediate_steps() -> None:
+    """Test agent using tools that return directly."""
+    tool = "Search"
+    responses = [
+        f"FooBarBaz\nAction: {tool}\nAction Input: misalignment",
+        "Oh well\nAction: Final Answer\nAction Input: curses foiled again",
+    ]
+    fake_llm = FakeListLLM(responses=responses)
+    tools = [
+        Tool(
+            name="Search",
+            func=lambda x: x,
+            description="Useful for searching",
+            return_direct=True,
+        ),
+    ]
+    agent = initialize_agent(
+        tools,
+        fake_llm,
+        agent="zero-shot-react-description",
+        return_intermediate_steps=True,
+    )
+
+    resp = agent("when was langchain made")
+    assert resp["output"] == "misalignment"
+    assert len(resp["intermediate_steps"]) == 1
+    action, _action_intput = resp["intermediate_steps"][0]
+    assert action.tool == "Search"
+
+
 def test_agent_with_new_prefix_suffix() -> None:
     """Test agent initilization kwargs with new prefix and suffix."""
     fake_llm = FakeListLLM(