diff --git a/src/strands/agent/agent.py b/src/strands/agent/agent.py
index bfa83fe20..0651d4521 100644
--- a/src/strands/agent/agent.py
+++ b/src/strands/agent/agent.py
@@ -44,6 +44,16 @@
 logger = logging.getLogger(__name__)
 
 
+# Sentinel class and object to distinguish between explicit None and default parameter value
+class _DefaultCallbackHandlerSentinel:
+    """Sentinel class to distinguish between explicit None and default parameter value."""
+
+    pass
+
+
+_DEFAULT_CALLBACK_HANDLER = _DefaultCallbackHandlerSentinel()
+
+
 class Agent:
     """Core Agent interface.
 
@@ -70,7 +80,7 @@ def __init__(self, agent: "Agent") -> None:
             #          agent tools and thus break their execution.
             self._agent = agent
 
-        def __getattr__(self, name: str) -> Callable:
+        def __getattr__(self, name: str) -> Callable[..., Any]:
             """Call tool as a function.
 
             This method enables the method-style interface (e.g., `agent.tool.tool_name(param="value")`).
@@ -177,7 +187,9 @@ def __init__(
         messages: Optional[Messages] = None,
         tools: Optional[List[Union[str, Dict[str, str], Any]]] = None,
         system_prompt: Optional[str] = None,
-        callback_handler: Optional[Callable] = PrintingCallbackHandler(),
+        callback_handler: Optional[
+            Union[Callable[..., Any], _DefaultCallbackHandlerSentinel]
+        ] = _DEFAULT_CALLBACK_HANDLER,
         conversation_manager: Optional[ConversationManager] = None,
         max_parallel_tools: int = os.cpu_count() or 1,
         record_direct_tool_call: bool = True,
@@ -204,7 +216,8 @@ def __init__(
             system_prompt: System prompt to guide model behavior.
                 If None, the model will behave according to its default settings.
             callback_handler: Callback for processing events as they happen during agent execution.
-                Defaults to strands.handlers.PrintingCallbackHandler if None.
+                If not provided (using the default), a new PrintingCallbackHandler instance is created.
+                If explicitly set to None, null_callback_handler is used.
             conversation_manager: Manager for conversation history and context window.
                 Defaults to strands.agent.conversation_manager.SlidingWindowConversationManager if None.
             max_parallel_tools: Maximum number of tools to run in parallel when the model returns multiple tool calls.
@@ -222,7 +235,17 @@ def __init__(
         self.messages = messages if messages is not None else []
 
         self.system_prompt = system_prompt
-        self.callback_handler = callback_handler or null_callback_handler
+
+        # If not provided, create a new PrintingCallbackHandler instance
+        # If explicitly set to None, use null_callback_handler
+        # Otherwise use the passed callback_handler
+        self.callback_handler: Union[Callable[..., Any], PrintingCallbackHandler]
+        if isinstance(callback_handler, _DefaultCallbackHandlerSentinel):
+            self.callback_handler = PrintingCallbackHandler()
+        elif callback_handler is None:
+            self.callback_handler = null_callback_handler
+        else:
+            self.callback_handler = callback_handler
 
         self.conversation_manager = conversation_manager if conversation_manager else SlidingWindowConversationManager()
 
@@ -415,7 +438,7 @@ def target_callback() -> None:
             thread.join()
 
     def _run_loop(
-        self, prompt: str, kwargs: Any, supplementary_callback_handler: Optional[Callable] = None
+        self, prompt: str, kwargs: Dict[str, Any], supplementary_callback_handler: Optional[Callable[..., Any]] = None
     ) -> AgentResult:
         """Execute the agent's event loop with the given prompt and parameters."""
         try:
@@ -441,7 +464,7 @@ def _run_loop(
         finally:
             self.conversation_manager.apply_management(self)
 
-    def _execute_event_loop_cycle(self, callback_handler: Callable, kwargs: dict[str, Any]) -> AgentResult:
+    def _execute_event_loop_cycle(self, callback_handler: Callable[..., Any], kwargs: Dict[str, Any]) -> AgentResult:
         """Execute the event loop cycle with retry logic for context window limits.
 
         This internal method handles the execution of the event loop cycle and implements
diff --git a/tests/strands/agent/test_agent.py b/tests/strands/agent/test_agent.py
index 4a63fa31f..0ea20b642 100644
--- a/tests/strands/agent/test_agent.py
+++ b/tests/strands/agent/test_agent.py
@@ -686,6 +686,37 @@ def test_agent_with_callback_handler_none_uses_null_handler():
     assert agent.callback_handler == null_callback_handler
 
 
+def test_agent_callback_handler_not_provided_creates_new_instances():
+    """Test that when callback_handler is not provided, new PrintingCallbackHandler instances are created."""
+    # Create two agents without providing callback_handler
+    agent1 = Agent()
+    agent2 = Agent()
+
+    # Both should have PrintingCallbackHandler instances
+    assert isinstance(agent1.callback_handler, PrintingCallbackHandler)
+    assert isinstance(agent2.callback_handler, PrintingCallbackHandler)
+
+    # But they should be different object instances
+    assert agent1.callback_handler is not agent2.callback_handler
+
+
+def test_agent_callback_handler_explicit_none_uses_null_handler():
+    """Test that when callback_handler is explicitly set to None, null_callback_handler is used."""
+    agent = Agent(callback_handler=None)
+
+    # Should use null_callback_handler
+    assert agent.callback_handler is null_callback_handler
+
+
+def test_agent_callback_handler_custom_handler_used():
+    """Test that when a custom callback_handler is provided, it is used."""
+    custom_handler = unittest.mock.Mock()
+    agent = Agent(callback_handler=custom_handler)
+
+    # Should use the provided custom handler
+    assert agent.callback_handler is custom_handler
+
+
 @pytest.mark.asyncio
 async def test_stream_async_returns_all_events(mock_event_loop_cycle):
     agent = Agent()