diff --git a/src/components/AIQuiz/AIMCQQuestion.tsx b/src/components/AIQuiz/AIMCQQuestion.tsx
index 9198dcfac..a4819e026 100644
--- a/src/components/AIQuiz/AIMCQQuestion.tsx
+++ b/src/components/AIQuiz/AIMCQQuestion.tsx
@@ -168,10 +168,11 @@ export function QuestionTitle(props: QuestionTitleProps) {
 
 type QuestionExplanationProps = {
   explanation: string;
+  title?: string;
 };
 
 export function QuestionExplanation(props: QuestionExplanationProps) {
-  const { explanation } = props;
+  const { explanation, title } = props;
 
   const explanationHtml = markdownToHtml(explanation, false);
 
@@ -179,7 +180,7 @@ export function QuestionExplanation(props: QuestionExplanationProps) {
     <div className="mt-4 rounded-xl bg-gray-100 p-4">
       <p className="flex items-center gap-2 text-lg text-gray-600">
         <InfoIcon className="size-4" />
-        Explanation
+        {title || 'Explanation'}
       </p>
       <div
         className={cn(markdownClassName, 'mt-0.5')}
diff --git a/src/components/AIQuiz/AIOpenEndedQuestion.tsx b/src/components/AIQuiz/AIOpenEndedQuestion.tsx
index 512d54c01..d9b6a76c2 100644
--- a/src/components/AIQuiz/AIOpenEndedQuestion.tsx
+++ b/src/components/AIQuiz/AIOpenEndedQuestion.tsx
@@ -1,17 +1,13 @@
-import type { QuizQuestion } from '../../queries/ai-quiz';
+import { type QuizQuestion } from '../../queries/ai-quiz';
 import { cn } from '../../lib/classname';
-import { InfoIcon, Loader2Icon } from 'lucide-react';
-import { markdownToHtml } from '../../lib/markdown';
+import { Loader2Icon } from 'lucide-react';
 import { QuestionExplanation, QuestionTitle } from './AIMCQQuestion';
-import { useState } from 'react';
-import { useMutation } from '@tanstack/react-query';
-import { httpPost } from '../../lib/query-http';
-import { queryClient } from '../../stores/query-client';
 import type { QuestionState } from './AIQuizContent';
+import { useVerifyAnswer } from '../../hooks/use-verify-answer';
 
-type VerifyQuizAnswerResponse = {
-  isCorrect?: boolean;
-  correctAnswer?: string;
+export type VerifyQuizAnswerResponse = {
+  status: 'correct' | 'incorrect' | 'can_be_improved';
+  feedback: string;
 };
 
 type AIOpenEndedQuestionProps = {
@@ -46,41 +42,39 @@ export function AIOpenEndedQuestion(props: AIOpenEndedQuestionProps) {
   } = questionState;
 
   const {
-    mutate: verifyAnswer,
-    isPending: isVerifying,
-    data: verifyAnswerData,
-  } = useMutation(
-    {
-      mutationFn: (answer: string) => {
-        return httpPost<VerifyQuizAnswerResponse>(
-          `/v1-verify-quiz-answer/${quizSlug}`,
-          {
-            question: question.title,
-            userAnswer,
-          },
-        );
-      },
-      onSuccess: (data) => {
-        setCorrectAnswer(data.correctAnswer ?? '');
-        onSubmit?.(data.isCorrect ? 'correct' : 'incorrect');
-      },
-    },
-    queryClient,
-  );
+    verifyAnswer,
+    data: verificationData,
+    status: verifyStatus,
+  } = useVerifyAnswer({
+    quizSlug,
+    question: questionText,
+    userAnswer,
+    onFinish: (data) => {
+      if (!data || !data.status) {
+        console.error('No data or status', data);
+        onSubmit('incorrect');
+        return;
+      }
 
-  const handleSubmit = () => {
+      setCorrectAnswer(data.feedback || '');
+      onSubmit(data.status);
+    },
+  });
+
+  const handleSubmit = async () => {
     if (isSubmitted) {
       onNext?.();
       return;
     }
 
-    verifyAnswer(userAnswer);
+    await verifyAnswer();
   };
 
   const canSubmit = userAnswer.trim().length > 0;
-
-  const markdownClassName =
-    'prose prose-lg prose-p:text-lg prose-p:font-normal prose-p:my-0 prose-pre:my-0 prose-p:prose-code:text-base! prose-p:prose-code:px-2 prose-p:prose-code:py-0.5 prose-p:prose-code:rounded-lg prose-p:prose-code:border prose-p:prose-code:border-black text-left text-black';
+  const isVerifying =
+    verifyStatus === 'loading' || verifyStatus === 'streaming';
+  const feedback = verificationData?.feedback || correctAnswer;
+  const feedbackStatus = verificationData?.status || status;
 
   return (
     <div>
@@ -93,9 +87,14 @@ export function AIOpenEndedQuestion(props: AIOpenEndedQuestionProps) {
             'focus:border-gray-400 focus:ring-0 focus:outline-none',
             isSubmitted && 'bg-gray-50',
             isSubmitted &&
-              status === 'correct' &&
+              feedbackStatus === 'correct' &&
               'border-green-500 bg-green-50',
-            isSubmitted && status === 'incorrect' && 'border-red-500 bg-red-50',
+            isSubmitted &&
+              feedbackStatus === 'incorrect' &&
+              'border-red-500 bg-red-50',
+            isSubmitted &&
+              feedbackStatus === 'can_be_improved' &&
+              'border-yellow-500 bg-yellow-50',
           )}
           placeholder="Type your answer here..."
           value={userAnswer}
@@ -104,8 +103,15 @@ export function AIOpenEndedQuestion(props: AIOpenEndedQuestionProps) {
         />
       </div>
 
-      {!isVerifying && correctAnswer && (
-        <QuestionExplanation explanation={correctAnswer} />
+      {feedback && (
+        <QuestionExplanation
+          title={
+            feedbackStatus === 'can_be_improved'
+              ? 'Can be improved'
+              : 'Feedback'
+          }
+          explanation={feedback}
+        />
       )}
 
       <button
diff --git a/src/components/AIQuiz/AIQuizContent.tsx b/src/components/AIQuiz/AIQuizContent.tsx
index 21f45aeb7..49ecef225 100644
--- a/src/components/AIQuiz/AIQuizContent.tsx
+++ b/src/components/AIQuiz/AIQuizContent.tsx
@@ -14,7 +14,7 @@ export type QuestionState = {
   selectedOptions?: number[];
   userAnswer?: string;
   correctAnswer?: string;
-  status: 'correct' | 'incorrect' | 'skipped' | 'pending';
+  status: 'correct' | 'incorrect' | 'skipped' | 'pending' | 'can_be_improved';
 };
 
 const DEFAULT_QUESTION_STATE: QuestionState = {
diff --git a/src/hooks/use-verify-answer.ts b/src/hooks/use-verify-answer.ts
new file mode 100644
index 000000000..6580a0a28
--- /dev/null
+++ b/src/hooks/use-verify-answer.ts
@@ -0,0 +1,133 @@
+import { useCallback, useRef, useState } from 'react';
+import { removeAuthToken } from '../lib/jwt';
+import { readChatStream } from '../lib/chat';
+import { flushSync } from 'react-dom';
+import type { VerifyQuizAnswerResponse } from '../components/AIQuiz/AIOpenEndedQuestion';
+
+type VerifyAnswerResponse = {
+  status?: VerifyQuizAnswerResponse['status'];
+  feedback?: string;
+};
+
+type UseVerifyAnswerOptions = {
+  quizSlug: string;
+  question: string;
+  userAnswer: string;
+
+  onError?: (error: Error) => void;
+  onFinish?: (data: VerifyAnswerResponse) => void;
+};
+
+export function useVerifyAnswer(options: UseVerifyAnswerOptions) {
+  const { quizSlug, question, userAnswer, onError, onFinish } = options;
+
+  const abortControllerRef = useRef<AbortController | null>(null);
+
+  const contentRef = useRef<VerifyAnswerResponse | null>(null);
+  const [data, setData] = useState<VerifyAnswerResponse | null>(null);
+
+  const [status, setStatus] = useState<
+    'idle' | 'streaming' | 'loading' | 'ready' | 'error'
+  >('idle');
+
+  const verifyAnswer = useCallback(async () => {
+    try {
+      setStatus('loading');
+      abortControllerRef.current?.abort();
+      abortControllerRef.current = new AbortController();
+
+      const response = await fetch(
+        `${import.meta.env.PUBLIC_API_URL}/v1-verify-quiz-answer/${quizSlug}`,
+        {
+          method: 'POST',
+          headers: {
+            'Content-Type': 'application/json',
+          },
+          body: JSON.stringify({ question, userAnswer }),
+          signal: abortControllerRef.current?.signal,
+          credentials: 'include',
+        },
+      );
+
+      if (!response.ok) {
+        const data = await response.json();
+        setStatus('error');
+        if (data.status === 401) {
+          removeAuthToken();
+          window.location.reload();
+        }
+
+        throw new Error(data?.message || 'Something went wrong');
+      }
+
+      const stream = response.body;
+      if (!stream) {
+        setStatus('error');
+        throw new Error('Something went wrong');
+      }
+
+      await readChatStream(stream, {
+        onMessage: async (content) => {
+          flushSync(() => {
+            setStatus('streaming');
+            contentRef.current = parseVerifyAIQuizAnswerResponse(content);
+            setData(contentRef.current);
+          });
+        },
+        onMessageEnd: async () => {
+          flushSync(() => {
+            setStatus('ready');
+          });
+        },
+      });
+
+      setStatus('idle');
+      abortControllerRef.current = null;
+
+      if (!contentRef.current) {
+        setStatus('error');
+        throw new Error('Something went wrong');
+      }
+
+      onFinish?.(contentRef.current);
+    } catch (error) {
+      if (abortControllerRef.current?.signal.aborted) {
+        // we don't want to show error if the user stops the chat
+        // so we just return
+        return;
+      }
+
+      onError?.(error as Error);
+      setStatus('error');
+    }
+  }, [quizSlug, question, userAnswer, onError]);
+
+  const stop = useCallback(() => {
+    if (!abortControllerRef.current) {
+      return;
+    }
+
+    abortControllerRef.current.abort();
+    abortControllerRef.current = null;
+  }, []);
+
+  return {
+    data,
+    status,
+    stop,
+    verifyAnswer,
+  };
+}
+
+export function parseVerifyAIQuizAnswerResponse(
+  response: string,
+): VerifyQuizAnswerResponse {
+  const statusRegex = /<status>(.*?)<\/status>/;
+  const status = response.match(statusRegex)?.[1]?.trim();
+  const responseWithoutStatus = response.replace(statusRegex, '').trim();
+
+  return {
+    status: status as VerifyQuizAnswerResponse['status'],
+    feedback: responseWithoutStatus,
+  };
+}
diff --git a/src/queries/ai-quiz.ts b/src/queries/ai-quiz.ts
index 0aadd6f6a..38c9acc24 100644
--- a/src/queries/ai-quiz.ts
+++ b/src/queries/ai-quiz.ts
@@ -5,6 +5,7 @@ import { queryClient } from '../stores/query-client';
 import { getAiCourseLimitOptions } from './ai-course';
 import { queryOptions } from '@tanstack/react-query';
 import { httpGet } from '../lib/query-http';
+import type { VerifyQuizAnswerResponse } from '../components/AIQuiz/AIOpenEndedQuestion';
 
 type QuizDetails = {
   quizId: string;
@@ -113,7 +114,6 @@ export async function generateAIQuiz(options: GenerateAIQuizOptions) {
         onQuestionsChange?.(questions);
       },
       onMessageEnd: async (result) => {
-        console.log('FINAL RESULT:', result);
         queryClient.invalidateQueries(getAiCourseLimitOptions());
         onStreamingChange?.(false);
       },