diff --git a/autogen/agentchat/conversable_agent.py b/autogen/agentchat/conversable_agent.py
index 59e7fd21cc9f..919839b6c393 100644
--- a/autogen/agentchat/conversable_agent.py
+++ b/autogen/agentchat/conversable_agent.py
@@ -616,13 +616,13 @@ async def a_receive(
         if reply is not None:
             await self.a_send(reply, sender, silent=silent)
 
-    def _prepare_chat(self, recipient, clear_history):
+    def _prepare_chat(self, recipient: "ConversableAgent", clear_history: bool, prepare_recipient: bool = True) -> None:
         self.reset_consecutive_auto_reply_counter(recipient)
-        recipient.reset_consecutive_auto_reply_counter(self)
-        self.reply_at_receive[recipient] = recipient.reply_at_receive[self] = True
+        self.reply_at_receive[recipient] = True
         if clear_history:
             self.clear_history(recipient)
-            recipient.clear_history(self)
+        if prepare_recipient:
+            recipient._prepare_chat(self, clear_history, False)
 
     def _raise_exception_on_async_reply_functions(self) -> None:
         """Raise an exception if any async reply functions are registered.
diff --git a/autogen/agentchat/groupchat.py b/autogen/agentchat/groupchat.py
index 9a7c705a51ad..501da7b41131 100644
--- a/autogen/agentchat/groupchat.py
+++ b/autogen/agentchat/groupchat.py
@@ -334,6 +334,16 @@ def __init__(
             ignore_async_in_sync_chat=True,
         )
 
+    def _prepare_chat(self, recipient: ConversableAgent, clear_history: bool, prepare_recipient: bool = True) -> None:
+        super()._prepare_chat(recipient, clear_history, prepare_recipient)
+
+        if clear_history:
+            self._groupchat.reset()
+
+        for agent in self._groupchat.agents:
+            if (recipient != agent or prepare_recipient) and isinstance(agent, ConversableAgent):
+                agent._prepare_chat(self, clear_history, False)
+
     def run_chat(
         self,
         messages: Optional[List[Dict]] = None,
diff --git a/notebook/agentchat_function_call_async.ipynb b/notebook/agentchat_function_call_async.ipynb
index e06c28af4723..613c733c3db4 100644
--- a/notebook/agentchat_function_call_async.ipynb
+++ b/notebook/agentchat_function_call_async.ipynb
@@ -61,7 +61,7 @@
   },
   {
    "cell_type": "code",
-   "execution_count": 5,
+   "execution_count": 1,
    "id": "dca301a4",
    "metadata": {},
    "outputs": [],
@@ -119,7 +119,7 @@
   },
   {
    "cell_type": "code",
-   "execution_count": 6,
+   "execution_count": 2,
    "id": "9fb85afb",
    "metadata": {},
    "outputs": [
@@ -134,22 +134,14 @@
       "--------------------------------------------------------------------------------\n",
       "\u001b[33mchatbot\u001b[0m (to user_proxy):\n",
       "\n",
-      "\u001b[32m***** Suggested tool Call (call_mZqUtVEf6hwarnCqdiKtVhAE): timer *****\u001b[0m\n",
+      "\u001b[32m***** Suggested tool Call (call_fGgH8U261nOnx3JGNJWslhh6): timer *****\u001b[0m\n",
       "Arguments: \n",
-      "{\n",
-      "  \"num_seconds\": \"5\"\n",
-      "}\n",
+      "{\"num_seconds\":\"5\"}\n",
       "\u001b[32m**********************************************************************\u001b[0m\n",
       "\n",
       "--------------------------------------------------------------------------------\n",
       "\u001b[35m\n",
-      ">>>>>>>> EXECUTING ASYNC FUNCTION timer...\u001b[0m\n"
-     ]
-    },
-    {
-     "name": "stdout",
-     "output_type": "stream",
-     "text": [
+      ">>>>>>>> EXECUTING ASYNC FUNCTION timer...\u001b[0m\n",
       "\u001b[33muser_proxy\u001b[0m (to chatbot):\n",
       "\n",
       "\u001b[33muser_proxy\u001b[0m (to chatbot):\n",
@@ -161,11 +153,9 @@
       "--------------------------------------------------------------------------------\n",
       "\u001b[33mchatbot\u001b[0m (to user_proxy):\n",
       "\n",
-      "\u001b[32m***** Suggested tool Call (call_xHz73PpH4ipdv7kTxK2AiVCf): stopwatch *****\u001b[0m\n",
+      "\u001b[32m***** Suggested tool Call (call_BZs6ynF8gtcZKhONiIRZkECB): stopwatch *****\u001b[0m\n",
       "Arguments: \n",
-      "{\n",
-      "  \"num_seconds\": \"5\"\n",
-      "}\n",
+      "{\"num_seconds\":\"5\"}\n",
       "\u001b[32m**************************************************************************\u001b[0m\n",
       "\n",
       "--------------------------------------------------------------------------------\n",
@@ -195,7 +185,7 @@
     "\n",
     "coder = autogen.AssistantAgent(\n",
     "    name=\"chatbot\",\n",
-    "    system_message=\"For coding tasks, only use the functions you have been provided with. Reply TERMINATE when the task is done.\",\n",
+    "    system_message=\"For coding tasks, only use the functions you have been provided with. You have a stopwatch and a timer, these tools can and should be used in parallel. Reply TERMINATE when the task is done.\",\n",
     "    llm_config=llm_config,\n",
     ")\n",
     "\n",
@@ -253,7 +243,7 @@
   },
   {
    "cell_type": "code",
-   "execution_count": 7,
+   "execution_count": 3,
    "id": "2472f95c",
    "metadata": {},
    "outputs": [],
@@ -288,7 +278,7 @@
   },
   {
    "cell_type": "code",
-   "execution_count": 8,
+   "execution_count": 4,
    "id": "e2c9267a",
    "metadata": {},
    "outputs": [
@@ -299,29 +289,27 @@
       "\u001b[33muser_proxy\u001b[0m (to chat_manager):\n",
       "\n",
       "\n",
-      "1) Create a timer for 5 seconds.\n",
-      "2) a stopwatch for 5 seconds.\n",
-      "3) Pretty print the result as md.\n",
-      "4) when 1-3 are done, terminate the group chat\n",
-      "\n",
-      "--------------------------------------------------------------------------------\n",
-      "\u001b[33muser_proxy\u001b[0m (to chat_manager):\n",
-      "\n",
-      "\n",
+      "1) Create a timer and a stopwatch for 5 seconds each in parallel.\n",
+      "2) Pretty print the result as md.\n",
+      "3) when 1 and 2 are done, terminate the group chat\n",
       "\n",
       "--------------------------------------------------------------------------------\n",
       "\u001b[33mchatbot\u001b[0m (to chat_manager):\n",
       "\n",
-      "\u001b[32m***** Suggested tool Call (call_rdYofiAgFpRfaZaCT4tzAhOb): timer *****\u001b[0m\n",
+      "\u001b[32m***** Suggested tool Call (call_zlHKR9LBzCqs1iLId5kvNvJ5): timer *****\u001b[0m\n",
       "Arguments: \n",
-      "{\n",
-      "  \"num_seconds\": \"5\"\n",
-      "}\n",
+      "{\"num_seconds\": \"5\"}\n",
       "\u001b[32m**********************************************************************\u001b[0m\n",
+      "\u001b[32m***** Suggested tool Call (call_rH1dgbS9itiJO1Gwnxxhcm35): stopwatch *****\u001b[0m\n",
+      "Arguments: \n",
+      "{\"num_seconds\": \"5\"}\n",
+      "\u001b[32m**************************************************************************\u001b[0m\n",
       "\n",
       "--------------------------------------------------------------------------------\n",
       "\u001b[35m\n",
       ">>>>>>>> EXECUTING ASYNC FUNCTION timer...\u001b[0m\n",
+      "\u001b[35m\n",
+      ">>>>>>>> EXECUTING ASYNC FUNCTION stopwatch...\u001b[0m\n",
       "\u001b[33muser_proxy\u001b[0m (to chat_manager):\n",
       "\n",
       "\u001b[33muser_proxy\u001b[0m (to chat_manager):\n",
@@ -333,17 +321,34 @@
       "--------------------------------------------------------------------------------\n",
       "\u001b[33muser_proxy\u001b[0m (to chat_manager):\n",
       "\n",
-      "\n",
+      "\u001b[32m***** Response from calling tool \"stopwatch\" *****\u001b[0m\n",
+      "Stopwatch is done!\n",
+      "\u001b[32m**************************************************\u001b[0m\n",
       "\n",
       "--------------------------------------------------------------------------------\n",
-      "\u001b[33muser_proxy\u001b[0m (to chat_manager):\n",
+      "\u001b[33mMarkdown_agent\u001b[0m (to chat_manager):\n",
+      "\n",
+      "The results of the timer and stopwatch are as follows:\n",
       "\n",
+      "- Timer: Timer is done!\n",
+      "- Stopwatch: Stopwatch is done!\n",
       "\n",
+      "Now, I will proceed to terminate the group chat.\n",
+      "\u001b[32m***** Suggested tool Call (call_3Js7oU80vPatnA8IiaKXB5Xu): terminate_group_chat *****\u001b[0m\n",
+      "Arguments: \n",
+      "{\"message\":\"The session has concluded, and the group chat will now be terminated.\"}\n",
+      "\u001b[32m*************************************************************************************\u001b[0m\n",
       "\n",
       "--------------------------------------------------------------------------------\n",
+      "\u001b[35m\n",
+      ">>>>>>>> EXECUTING ASYNC FUNCTION terminate_group_chat...\u001b[0m\n",
       "\u001b[33muser_proxy\u001b[0m (to chat_manager):\n",
       "\n",
+      "\u001b[33muser_proxy\u001b[0m (to chat_manager):\n",
       "\n",
+      "\u001b[32m***** Response from calling tool \"terminate_group_chat\" *****\u001b[0m\n",
+      "[GROUPCHAT_TERMINATE] The session has concluded, and the group chat will now be terminated.\n",
+      "\u001b[32m*************************************************************\u001b[0m\n",
       "\n",
       "--------------------------------------------------------------------------------\n"
      ]
@@ -354,10 +359,9 @@
     "await user_proxy.a_initiate_chat(  # noqa: F704\n",
     "    manager,\n",
     "    message=\"\"\"\n",
-    "1) Create a timer for 5 seconds.\n",
-    "2) a stopwatch for 5 seconds.\n",
-    "3) Pretty print the result as md.\n",
-    "4) when 1-3 are done, terminate the group chat\"\"\",\n",
+    "1) Create a timer and a stopwatch for 5 seconds each in parallel.\n",
+    "2) Pretty print the result as md.\n",
+    "3) when 1 and 2 are done, terminate the group chat\"\"\",\n",
     ")"
    ]
   },