diff --git a/src/strands/multiagent/graph.py b/src/strands/multiagent/graph.py
index e87b9592d..49c2c2cbb 100644
--- a/src/strands/multiagent/graph.py
+++ b/src/strands/multiagent/graph.py
@@ -1001,7 +1001,12 @@ def _build_node_input(self, node: GraphNode) -> list[ContentBlock]:
             agent_results = node_result.get_agent_results()
             for result in agent_results:
                 agent_name = getattr(result, "agent_name", "Agent")
-                result_text = str(result)
+                # Prefer structured_output if available, otherwise fall back to str(result)
+                structured_output = getattr(result, "structured_output", None)
+                if structured_output is not None:
+                    result_text = structured_output.model_dump_json()
+                else:
+                    result_text = str(result)
                 node_input.append(ContentBlock(text=f"  - {agent_name}: {result_text}"))
 
         return node_input
diff --git a/tests/strands/multiagent/test_graph.py b/tests/strands/multiagent/test_graph.py
index 4875d1bec..f73f1a34d 100644
--- a/tests/strands/multiagent/test_graph.py
+++ b/tests/strands/multiagent/test_graph.py
@@ -1,8 +1,10 @@
 import asyncio
 import time
+from typing import Annotated
 from unittest.mock import AsyncMock, MagicMock, Mock, call, patch
 
 import pytest
+from pydantic import BaseModel, Field
 
 from strands.agent import Agent, AgentResult
 from strands.agent.state import AgentState
@@ -2068,3 +2070,117 @@ def cancel_callback(event):
     tru_status = graph.state.status
     exp_status = Status.FAILED
     assert tru_status == exp_status
+
+
+@pytest.mark.asyncio
+async def test_graph_structured_output_propagation(mock_strands_tracer, mock_use_span):
+    """Test that structured_output is properly propagated from dependency nodes.
+
+    This test verifies issue #1118: when using structured_output_model, the output
+    from previous nodes should be propagated correctly to dependent nodes using the
+    structured output's JSON representation.
+    """
+
+    class Foo(BaseModel):
+        """Test Pydantic model for structured output."""
+
+        foo: Annotated[str, Field(min_length=1, max_length=10)]
+        bar: Annotated[str, Field(min_length=1, max_length=10)]
+
+    # Create first agent with structured output
+    first_agent = create_mock_agent("first_agent", "")  # Empty text content
+    structured_data = Foo(foo="hello", bar="world")
+    first_agent.return_value.structured_output = structured_data
+    # Update the mock to return the agent result with structured output
+    mock_result_with_structured = first_agent.return_value
+
+    async def mock_stream_first(*args, **kwargs):
+        yield {"agent_start": True}
+        yield {"result": mock_result_with_structured}
+
+    first_agent.stream_async = Mock(side_effect=mock_stream_first)
+
+    # Create second agent that receives the output
+    second_agent = create_mock_agent("second_agent", "Processed result")
+
+    # Track the input received by second agent
+    received_inputs = []
+
+    async def mock_stream_second(input_data, *args, **kwargs):
+        received_inputs.append(input_data)
+        yield {"agent_start": True}
+        yield {"result": second_agent.return_value}
+
+    second_agent.stream_async = Mock(side_effect=mock_stream_second)
+
+    # Build graph: first_agent -> second_agent
+    builder = GraphBuilder()
+    builder.add_node(first_agent, "first_agent")
+    builder.add_node(second_agent, "second_agent")
+    builder.add_edge("first_agent", "second_agent")
+    builder.set_entry_point("first_agent")
+    graph = builder.build()
+
+    # Execute the graph
+    result = await graph.invoke_async("Hello, world!")
+
+    # Verify execution completed
+    assert result.status == Status.COMPLETED
+
+    # Verify second agent received input
+    assert len(received_inputs) == 1
+
+    # Verify the structured output was propagated as JSON
+    input_text = str(received_inputs[0])
+    assert '{"foo":"hello","bar":"world"}' in input_text
+
+    mock_strands_tracer.start_multiagent_span.assert_called()
+    mock_use_span.assert_called_once()
+
+
+@pytest.mark.asyncio
+async def test_graph_structured_output_fallback_to_text(mock_strands_tracer, mock_use_span):
+    """Test that when structured_output is None, text output is used.
+
+    This ensures backward compatibility with agents that don't use structured output.
+    """
+    # Create first agent WITHOUT structured output (None)
+    first_agent = create_mock_agent("first_agent", "Plain text response")
+    assert first_agent.return_value.structured_output is None  # Verify it's None
+
+    # Create second agent that receives the output
+    second_agent = create_mock_agent("second_agent", "Processed result")
+
+    # Track the input received by second agent
+    received_inputs = []
+
+    async def mock_stream_second(input_data, *args, **kwargs):
+        received_inputs.append(input_data)
+        yield {"agent_start": True}
+        yield {"result": second_agent.return_value}
+
+    second_agent.stream_async = Mock(side_effect=mock_stream_second)
+
+    # Build graph: first_agent -> second_agent
+    builder = GraphBuilder()
+    builder.add_node(first_agent, "first_agent")
+    builder.add_node(second_agent, "second_agent")
+    builder.add_edge("first_agent", "second_agent")
+    builder.set_entry_point("first_agent")
+    graph = builder.build()
+
+    # Execute the graph
+    result = await graph.invoke_async("Hello, world!")
+
+    # Verify execution completed
+    assert result.status == Status.COMPLETED
+
+    # Verify second agent received input
+    assert len(received_inputs) == 1
+
+    # Verify the text output was propagated (not JSON structured output)
+    input_text = str(received_inputs[0])
+    assert "Plain text response" in input_text
+
+    mock_strands_tracer.start_multiagent_span.assert_called()
+    mock_use_span.assert_called_once()