A structured chat agent in langchain works by taking the user's question, understanding what the user wants, choosing the right tool to answer, running that tool, and then giving back a clear answer. The process starts with receiving input, then parsing it to find the intent. Next, the agent picks the tool that fits the intent, runs it to get information, formats the answer nicely, and finally sends it back to the user. Variables like user_input, parsed_intent, selected_tool, tool_output, and formatted_response change step by step as the agent works. This flow helps keep conversations organized and easy to manage.