diff --git a/api/src/services/audio.py b/api/src/services/audio.py
index 89bed40..bfe419b 100644
--- a/api/src/services/audio.py
+++ b/api/src/services/audio.py
@@ -30,9 +30,6 @@ class AudioNormalizer:
         Returns:
             Normalized and trimmed audio data
         """
-        if len(audio_data) == 0:
-            raise ValueError("Audio data cannot be empty")
-            
         # Convert to float32 for processing
         audio_float = audio_data.astype(np.float32)
         
@@ -102,17 +99,14 @@ class AudioService:
                 )
             writer = AudioService._writers[writer_key]
 
-            # Write the current chunk
-            chunk_data = writer.write_chunk(normalized_audio)
-
-            # Handle last chunk and cleanup
+            # Write chunk or finalize
             if is_last_chunk:
-                final_data = writer.close()
-                if final_data:
-                    chunk_data += final_data
+                chunk_data = writer.write_chunk(finalize=True)
                 del AudioService._writers[writer_key]
-
-            return chunk_data
+            else:
+                chunk_data = writer.write_chunk(normalized_audio)
+            
+            return chunk_data if chunk_data else b''
 
         except Exception as e:
             logger.error(f"Error converting audio stream to {output_format}: {str(e)}")
diff --git a/api/src/services/streaming_audio_writer.py b/api/src/services/streaming_audio_writer.py
index 5a1501e..54e2ee5 100644
--- a/api/src/services/streaming_audio_writer.py
+++ b/api/src/services/streaming_audio_writer.py
@@ -33,7 +33,9 @@ class StreamingAudioWriter:
         elif self.format == "mp3":
             # For MP3, we'll use pydub's incremental writer
             self.buffer = BytesIO()
-            self.encoder = AudioSegment.from_mono_audiosegments()
+            self.segments = []  # Store segments until we have enough data
+            # Initialize an empty AudioSegment as our encoder
+            self.encoder = AudioSegment.silent(duration=0, frame_rate=self.sample_rate)
 
     def _write_wav_header(self) -> bytes:
         """Write WAV header with correct streaming format"""
@@ -53,12 +55,45 @@ class StreamingAudioWriter:
         header.write(struct.pack('<L', 0))  # Placeholder for data size
         return header.getvalue()
 
-    def write_chunk(self, audio_data: np.ndarray) -> bytes:
-        """Write a chunk of audio data and return bytes in the target format"""
+    def write_chunk(self, audio_data: Optional[np.ndarray] = None, finalize: bool = False) -> bytes:
+        """Write a chunk of audio data and return bytes in the target format.
+        
+        Args:
+            audio_data: Audio data to write, or None if finalizing
+            finalize: Whether this is the final write to close the stream
+        """
         buffer = BytesIO()
 
+        if finalize:
+            if self.format == "wav":
+                # Write final WAV header with correct sizes
+                buffer.write(b'RIFF')
+                buffer.write(struct.pack('<L', self.bytes_written + 36))
+                buffer.write(b'WAVE')
+                buffer.write(b'fmt ')
+                buffer.write(struct.pack('<L', 16))
+                buffer.write(struct.pack('<H', 1))
+                buffer.write(struct.pack('<H', self.channels))
+                buffer.write(struct.pack('<L', self.sample_rate))
+                buffer.write(struct.pack('<L', self.sample_rate * self.channels * 2))
+                buffer.write(struct.pack('<H', self.channels * 2))
+                buffer.write(struct.pack('<H', 16))
+                buffer.write(b'data')
+                buffer.write(struct.pack('<L', self.bytes_written))
+            elif self.format == "ogg":
+                self.writer.close()
+            elif self.format == "mp3":
+                # Final export of any remaining audio
+                if hasattr(self, 'encoder') and len(self.encoder) > 0:
+                    self.encoder.export(buffer, format="mp3", bitrate="192k", parameters=["-q:a", "2"])
+                    self.encoder = None
+            return buffer.getvalue()
+
+        if audio_data is None or len(audio_data) == 0:
+            return b''
+
         if self.format == "wav":
-            # For WAV, we write raw PCM after the first chunk
+            # For WAV, write raw PCM after the first chunk
             if self.bytes_written == 0:
                 buffer.write(self._write_wav_header())
             buffer.write(audio_data.tobytes())
@@ -83,8 +118,20 @@ class StreamingAudioWriter:
                 sample_width=audio_data.dtype.itemsize,
                 channels=self.channels
             )
-            self.encoder += segment
-            self.encoder.export(buffer, format="mp3")
+            
+            # Add segment to encoder
+            self.encoder = self.encoder + segment
+            
+            # Export current state to buffer
+            self.encoder.export(buffer, format="mp3", bitrate="192k", parameters=["-q:a", "2"])
+            
+            # Get the encoded data
+            encoded_data = buffer.getvalue()
+            
+            # Reset encoder to prevent memory growth
+            self.encoder = AudioSegment.silent(duration=0, frame_rate=self.sample_rate)
+            
+            return encoded_data
 
         return buffer.getvalue()
 
diff --git a/api/src/services/text_processing/__init__.py b/api/src/services/text_processing/__init__.py
index c9b3eb4..6ff9ad9 100644
--- a/api/src/services/text_processing/__init__.py
+++ b/api/src/services/text_processing/__init__.py
@@ -1,28 +1,19 @@
 """Text processing pipeline."""
 
-from .chunker import split_text
 from .normalizer import normalize_text
 from .phonemizer import phonemize
 from .vocabulary import tokenize
+from .text_processor import process_text_chunk, smart_split
 
+def process_text(text: str) -> list[int]:
+    """Process text into token IDs (for backward compatibility)."""
+    return process_text_chunk(text)
 
-def process_text(text: str, language: str = "a") -> list[int]:
-    """Process text through the full pipeline.
-    
-    Args:
-        text: Input text
-        language: Language code ('a' for US English, 'b' for British English)
-        
-    Returns:
-        List of token IDs
-        
-    Note:
-        The pipeline:
-        1. Converts text to phonemes using phonemizer
-        2. Converts phonemes to token IDs using vocabulary
-    """
-    # Convert text to phonemes
-    phonemes = phonemize(text, language=language)
-    
-    # Convert phonemes to token IDs
-    return tokenize(phonemes)
+__all__ = [
+    'normalize_text',
+    'phonemize',
+    'tokenize',
+    'process_text',
+    'process_text_chunk',
+    'smart_split'
+]
diff --git a/api/src/services/text_processing/semchunk_slim.py b/api/src/services/text_processing/semchunk_slim.py
deleted file mode 100644
index eb73a78..0000000
--- a/api/src/services/text_processing/semchunk_slim.py
+++ /dev/null
@@ -1,89 +0,0 @@
-from __future__ import annotations
-import re
-from typing import Callable
-
-# Prioritize sentence boundaries for TTS
-_NON_WHITESPACE_SEMANTIC_SPLITTERS = (
-    '.', '!', '?',  # Primary - sentence boundaries
-    ';', ':',       # Secondary - major clause boundaries
-    ',',           # Tertiary - minor clause boundaries
-    '(', ')', '[', ']', '"', '"', "'", "'", "'", '"', '`',  # Other punctuation
-    '—', '…',      # Dashes and ellipsis
-    '/', '\\', '–', '&', '-',  # Word joiners
-)
-"""Semantic splitters ordered by priority for TTS chunking"""
-
-def _split_text(text: str) -> tuple[str, bool, list[str]]:
-    """Split text using the most semantically meaningful splitter possible."""
-    
-    splitter_is_whitespace = True
-
-    # Try splitting at, in order:
-    # - Newlines (natural paragraph breaks)
-    # - Spaces (if no other splits possible)
-    # - Semantic splitters (prioritizing sentence boundaries)
-    if '\n' in text or '\r' in text:
-        splitter = max(re.findall(r'[\r\n]+', text))
-    
-    elif re.search(r'\s', text):
-        splitter = max(re.findall(r'\s+', text))
-    
-    else:
-        # Find first semantic splitter present
-        for splitter in _NON_WHITESPACE_SEMANTIC_SPLITTERS:
-            if splitter in text:
-                splitter_is_whitespace = False
-                break
-        else:
-            return '', splitter_is_whitespace, list(text)
-    
-    return splitter, splitter_is_whitespace, text.split(splitter)
-
-class Chunker:
-    def __init__(self, chunk_size: int, token_counter: Callable[[str], int]) -> None:
-        self.chunk_size = chunk_size
-        self.token_counter = token_counter
-    
-    def __call__(self, text: str) -> list[str]:
-        """Split text into chunks based on semantic boundaries."""
-        if not isinstance(text, str):
-            text = str(text) if text is not None else ""
-            
-        text = text.strip()
-        if not text:
-            return []
-            
-        # Split the text
-        splitter, _, splits = _split_text(text)
-        
-        chunks = []
-        current_chunk = []
-        current_len = 0
-        
-        for split in splits:
-            split = split.strip()
-            if not split:
-                continue
-                
-            # Check if adding this split would exceed chunk size
-            split_len = self.token_counter(split)
-            if current_len + split_len <= self.chunk_size:
-                current_chunk.append(split)
-                current_len += split_len
-            else:
-                # Save current chunk if it exists
-                if current_chunk:
-                    chunks.append(splitter.join(current_chunk))
-                # Start new chunk with current split
-                current_chunk = [split]
-                current_len = split_len
-        
-        # Add final chunk if it exists
-        if current_chunk:
-            chunks.append(splitter.join(current_chunk))
-            
-        return chunks
-
-def chunkerify(token_counter: Callable[[str], int], chunk_size: int) -> Chunker:
-    """Create a chunker with the specified token counter and chunk size."""
-    return Chunker(chunk_size=chunk_size, token_counter=token_counter)
\ No newline at end of file
diff --git a/api/src/services/text_processing/text_processor.py b/api/src/services/text_processing/text_processor.py
new file mode 100644
index 0000000..8aa0055
--- /dev/null
+++ b/api/src/services/text_processing/text_processor.py
@@ -0,0 +1,177 @@
+"""Unified text processing for TTS with smart chunking."""
+
+import re
+import time
+from typing import AsyncGenerator, List, Tuple
+from loguru import logger
+from .phonemizer import phonemize
+from .normalizer import normalize_text
+from .vocabulary import tokenize
+
+def process_text_chunk(text: str, language: str = "a") -> List[int]:
+    """Process a chunk of text through normalization, phonemization, and tokenization.
+    
+    Args:
+        text: Text chunk to process
+        language: Language code for phonemization
+        
+    Returns:
+        List of token IDs
+    """
+    start_time = time.time()
+    
+    # Normalize
+    t0 = time.time()
+    normalized = normalize_text(text)
+    t1 = time.time()
+    logger.debug(f"Normalization took {(t1-t0)*1000:.2f}ms for {len(text)} chars")
+    
+    # Phonemize
+    t0 = time.time()
+    phonemes = phonemize(normalized, language, normalize=False)  # Already normalized
+    t1 = time.time()
+    logger.debug(f"Phonemization took {(t1-t0)*1000:.2f}ms for {len(normalized)} chars")
+    
+    # Convert to token IDs
+    t0 = time.time()
+    tokens = tokenize(phonemes)
+    t1 = time.time()
+    logger.debug(f"Tokenization took {(t1-t0)*1000:.2f}ms for {len(phonemes)} chars")
+    
+    total_time = time.time() - start_time
+    logger.debug(f"Total processing took {total_time*1000:.2f}ms for chunk: '{text[:50]}...'")
+    
+    return tokens
+
+def process_text(text: str, language: str = "a") -> List[int]:
+    """Process text into token IDs.
+    
+    Args:
+        text: Text to process
+        language: Language code for phonemization
+        
+    Returns:
+        List of token IDs
+    """
+    if not isinstance(text, str):
+        text = str(text) if text is not None else ""
+        
+    text = text.strip()
+    if not text:
+        return []
+        
+    return process_text_chunk(text, language)
+
+async def smart_split(text: str, max_tokens: int = 500) -> AsyncGenerator[Tuple[str, List[int]], None]:
+    """Split text into semantically meaningful chunks while respecting token limits.
+    
+    Args:
+        text: Input text to split
+        max_tokens: Maximum tokens per chunk
+        
+    Yields:
+        Tuples of (text chunk, token IDs) where token count is <= max_tokens
+    """
+    start_time = time.time()
+    chunk_count = 0
+    total_chars = len(text)
+    logger.info(f"Starting text split for {total_chars} characters with {max_tokens} max tokens")
+    
+    # Split on major punctuation first
+    sentences = re.split(r'([.!?;:])', text)
+    
+    current_chunk = []
+    current_token_count = 0
+    
+    for i in range(0, len(sentences), 2):
+        # Get sentence and its punctuation (if any)
+        sentence = sentences[i].strip()
+        punct = sentences[i + 1] if i + 1 < len(sentences) else ""
+        
+        if not sentence:
+            continue
+            
+        # Process sentence to get token count
+        sentence_with_punct = sentence + punct
+        tokens = process_text_chunk(sentence_with_punct)
+        token_count = len(tokens)
+        logger.debug(f"Sentence '{sentence_with_punct[:50]}...' has {token_count} tokens")
+        
+        # If this single sentence is too long, split on commas
+        if token_count > max_tokens:
+            logger.debug(f"Sentence exceeds token limit, splitting on commas")
+            clause_splits = re.split(r'([,])', sentence_with_punct)
+            for j in range(0, len(clause_splits), 2):
+                clause = clause_splits[j].strip()
+                comma = clause_splits[j + 1] if j + 1 < len(clause_splits) else ""
+                
+                if not clause:
+                    continue
+                    
+                clause_with_punct = clause + comma
+                clause_tokens = process_text_chunk(clause_with_punct)
+                
+                # If still too long, do a hard split on words
+                if len(clause_tokens) > max_tokens:
+                    logger.debug(f"Clause exceeds token limit, splitting on words")
+                    words = clause_with_punct.split()
+                    temp_chunk = []
+                    temp_tokens = []
+                    
+                    for word in words:
+                        word_tokens = process_text_chunk(word)
+                        if len(temp_tokens) + len(word_tokens) > max_tokens:
+                            if temp_chunk:  # Don't yield empty chunks
+                                chunk_text = " ".join(temp_chunk)
+                                chunk_count += 1
+                                logger.info(f"Yielding word-split chunk {chunk_count}: '{chunk_text[:50]}...' ({len(temp_tokens)} tokens)")
+                                yield chunk_text, temp_tokens
+                            temp_chunk = [word]
+                            temp_tokens = word_tokens
+                        else:
+                            temp_chunk.append(word)
+                            temp_tokens.extend(word_tokens)
+                    
+                    if temp_chunk:  # Don't forget the last chunk
+                        chunk_text = " ".join(temp_chunk)
+                        chunk_count += 1
+                        logger.info(f"Yielding final word-split chunk {chunk_count}: '{chunk_text[:50]}...' ({len(temp_tokens)} tokens)")
+                        yield chunk_text, temp_tokens
+                        
+                else:
+                    # Check if adding this clause would exceed the limit
+                    if current_token_count + len(clause_tokens) > max_tokens:
+                        if current_chunk:  # Don't yield empty chunks
+                            chunk_text = " ".join(current_chunk)
+                            chunk_count += 1
+                            logger.info(f"Yielding clause-split chunk {chunk_count}: '{chunk_text[:50]}...' ({current_token_count} tokens)")
+                            yield chunk_text, process_text_chunk(chunk_text)
+                        current_chunk = [clause_with_punct]
+                        current_token_count = len(clause_tokens)
+                    else:
+                        current_chunk.append(clause_with_punct)
+                        current_token_count += len(clause_tokens)
+        
+        else:
+            # Check if adding this sentence would exceed the limit
+            if current_token_count + token_count > max_tokens:
+                if current_chunk:  # Don't yield empty chunks
+                    chunk_text = " ".join(current_chunk)
+                    chunk_count += 1
+                    logger.info(f"Yielding sentence-split chunk {chunk_count}: '{chunk_text[:50]}...' ({current_token_count} tokens)")
+                    yield chunk_text, process_text_chunk(chunk_text)
+                current_chunk = [sentence_with_punct]
+                current_token_count = token_count
+            else:
+                current_chunk.append(sentence_with_punct)
+                current_token_count += token_count
+    
+    # Don't forget the last chunk
+    if current_chunk:
+        chunk_text = " ".join(current_chunk)
+        chunk_count += 1
+        logger.info(f"Yielding final chunk {chunk_count}: '{chunk_text[:50]}...' ({current_token_count} tokens)")
+        yield chunk_text, process_text_chunk(chunk_text)
+    
+    total_time = time.time() - start_time
+    logger.info(f"Text splitting completed in {total_time*1000:.2f}ms, produced {chunk_count} chunks")
diff --git a/api/src/services/tts_service.py b/api/src/services/tts_service.py
index b8b023f..e6ef24d 100644
--- a/api/src/services/tts_service.py
+++ b/api/src/services/tts_service.py
@@ -1,11 +1,10 @@
 """TTS service using model and voice managers."""
 
-import io
 import time
 from typing import List, Tuple, Optional, AsyncGenerator, Union
+import asyncio
 
 import numpy as np
-import scipy.io.wavfile as wavfile
 import torch
 from loguru import logger
 
@@ -13,10 +12,7 @@ from ..core.config import settings
 from ..inference.model_manager import get_manager as get_model_manager
 from ..inference.voice_manager import get_manager as get_voice_manager
 from .audio import AudioNormalizer, AudioService
-from .text_processing import chunker, normalize_text, process_text
-
-
-import asyncio
+from .text_processing.text_processor import process_text_chunk, smart_split
 
 class TTSService:
     """Text-to-speech service."""
@@ -40,7 +36,7 @@ class TTSService:
 
     async def _process_chunk(
         self,
-        chunk: str,
+        tokens: List[int],
         voice_tensor: torch.Tensor,
         speed: float,
         output_format: Optional[str] = None,
@@ -48,13 +44,24 @@ class TTSService:
         is_last: bool = False,
         normalizer: Optional[AudioNormalizer] = None,
     ) -> Optional[Union[np.ndarray, bytes]]:
-        """Process a single text chunk into audio."""
+        """Process tokens into audio."""
         async with self._chunk_semaphore:
             try:
-                tokens = process_text(chunk)
+                # Handle stream finalization
+                if is_last:
+                    return await AudioService.convert_audio(
+                        np.array([0], dtype=np.float32),  # Dummy data for type checking
+                        24000,
+                        output_format,
+                        is_first_chunk=False,
+                        normalizer=normalizer,
+                        is_last_chunk=True
+                    )
+                
+                # Skip empty chunks
                 if not tokens:
                     return None
-                
+
                 # Generate audio using pre-warmed model
                 chunk_audio = await self.model_manager.generate(
                     tokens,
@@ -63,23 +70,31 @@ class TTSService:
                 )
                 
                 if chunk_audio is None:
+                    logger.error("Model generated None for audio chunk")
+                    return None
+                
+                if len(chunk_audio) == 0:
+                    logger.error("Model generated empty audio chunk")
                     return None
                     
                 # For streaming, convert to bytes
                 if output_format:
-                    return await AudioService.convert_audio(
-                        chunk_audio,
-                        24000,
-                        output_format,
-                        is_first_chunk=is_first,
-                        normalizer=normalizer,
-                        is_last_chunk=is_last
-                    )
+                    try:
+                        return await AudioService.convert_audio(
+                            chunk_audio,
+                            24000,
+                            output_format,
+                            is_first_chunk=is_first,
+                            normalizer=normalizer,
+                            is_last_chunk=is_last
+                        )
+                    except Exception as e:
+                        logger.error(f"Failed to convert audio: {str(e)}")
+                        return None
                     
                 return chunk_audio
-                
             except Exception as e:
-                logger.error(f"Failed to process chunk: '{chunk}'. Error: {str(e)}")
+                logger.error(f"Failed to process tokens: {str(e)}")
                 return None
 
     async def generate_audio_stream(
@@ -92,62 +107,59 @@ class TTSService:
         """Generate and stream audio chunks."""
         stream_normalizer = AudioNormalizer()
         voice_tensor = None
-        pending_results = {}
-        next_index = 0
+        chunk_index = 0
         
         try:
-            # Normalize text
-            normalized = normalize_text(text)
-            if not normalized:
-                raise ValueError("Text is empty after preprocessing")
-            text = str(normalized)
-
             # Get backend and load voice (should be fast if cached)
             backend = self.model_manager.get_backend()
             voice_tensor = await self._voice_manager.load_voice(voice, device=backend.device)
 
-            # Process chunks with semaphore limiting concurrency
-            chunks = []
-            async for chunk in chunker.split_text(text):
-                chunks.append(chunk)
-                
-            if not chunks:
-                raise ValueError("No text chunks to process")
-
-            # Create tasks for all chunks
-            tasks = [
-                asyncio.create_task(
-                    self._process_chunk(
-                        chunk,
+            # Process text in chunks with smart splitting
+            async for chunk_text, tokens in smart_split(text):
+                try:
+                    # Process audio for chunk
+                    result = await self._process_chunk(
+                        tokens,
                         voice_tensor,
                         speed,
                         output_format,
-                        is_first=(i == 0),
-                        is_last=(i == len(chunks) - 1),
+                        is_first=(chunk_index == 0),
+                        is_last=False,  # We'll update the last chunk later
                         normalizer=stream_normalizer
                     )
-                )
-                for i, chunk in enumerate(chunks)
-            ]
-
-            # Process chunks and maintain order
-            for i, task in enumerate(tasks):
-                result = await task
-                
-                if i == next_index and result is not None:
-                    # If this is the next chunk we need, yield it
-                    yield result
-                    next_index += 1
                     
-                    # Check if we have any subsequent chunks ready
-                    while next_index in pending_results:
-                        result = pending_results.pop(next_index)
-                        if result is not None:
-                            yield result
-                        next_index += 1
-                else:
-                    # Store out-of-order result
-                    pending_results[i] = result
+                    if result is not None:
+                        yield result
+                        chunk_index += 1
+                    else:
+                        logger.warning(f"No audio generated for chunk: '{chunk_text[:100]}...'")
+                        
+                except Exception as e:
+                    logger.error(f"Failed to process audio for chunk: '{chunk_text[:100]}...'. Error: {str(e)}")
+                    continue
+
+            # Only finalize if we successfully processed at least one chunk
+            if chunk_index > 0:
+                try:
+                    # Empty tokens list to finalize audio
+                    final_result = await self._process_chunk(
+                        [],  # Empty tokens list
+                        voice_tensor,
+                        speed,
+                        output_format,
+                        is_first=False,
+                        is_last=True,
+                        normalizer=stream_normalizer
+                    )
+                    if final_result is not None:
+                        logger.debug("Yielding final chunk to finalize audio")
+                        yield final_result
+                    else:
+                        logger.warning("Final chunk processing returned None")
+                except Exception as e:
+                    logger.error(f"Failed to process final chunk: {str(e)}")
+            else:
+                logger.warning("No audio chunks were successfully processed")
 
         except Exception as e:
             logger.error(f"Error in audio generation stream: {str(e)}")