diff --git a/adalflow/adalflow/optim/text_grad/tgd_optimizer.py b/adalflow/adalflow/optim/text_grad/tgd_optimizer.py
index b052b739e..a77749da6 100644
--- a/adalflow/adalflow/optim/text_grad/tgd_optimizer.py
+++ b/adalflow/adalflow/optim/text_grad/tgd_optimizer.py
@@ -285,8 +285,62 @@ def get_output_format_str(self) -> str:
 
 Make sure to include all three fields and properly close all XML tags."""
     
+    def _sanitize_xml(self, xml_str: str) -> str:
+        """Sanitize XML string by removing invalid characters and fixing common issues."""
+        # Remove control characters except for tab, newline, and carriage return
+        xml_str = re.sub(r'[\x00-\x08\x0B\x0C\x0E-\x1F\x7F]', '', xml_str)
+        
+        # Handle CDATA sections - extract content from CDATA
+        xml_str = re.sub(r'<!\[CDATA\[(.*?)\]\]>', lambda m: m.group(1), xml_str, flags=re.DOTALL)
+        
+        return xml_str
+    
+    def _extract_with_regex(self, input: str) -> TGDData:
+        """Fallback extraction using regex when XML parsing fails."""
+        log.info("Using regex fallback for XML parsing")
+        
+        # Sanitize input to handle CDATA in regex path too
+        sanitized = self._sanitize_xml(input)
+        
+        # Try to extract content between tags using regex
+        reasoning_pattern = r'<reasoning>(.*?)</reasoning>'
+        method_pattern = r'<method>(.*?)</method>'
+        proposed_variable_pattern = r'<proposed_variable>(.*?)</proposed_variable>'
+        
+        reasoning_match = re.search(reasoning_pattern, sanitized, re.DOTALL | re.IGNORECASE)
+        method_match = re.search(method_pattern, sanitized, re.DOTALL | re.IGNORECASE)
+        proposed_variable_match = re.search(proposed_variable_pattern, sanitized, re.DOTALL | re.IGNORECASE)
+        
+        reasoning = reasoning_match.group(1).strip() if reasoning_match else ""
+        method = method_match.group(1).strip() if method_match else ""
+        proposed_variable = proposed_variable_match.group(1).strip() if proposed_variable_match else ""
+        
+        # If we didn't find proposed_variable, try to extract anything that looks like content
+        if not proposed_variable and proposed_variable_match is None:
+            # Look for the last substantial text block as a fallback
+            lines = [line.strip() for line in sanitized.split('\n') if line.strip() and not line.strip().startswith('<')]
+            if lines:
+                proposed_variable = lines[-1]
+        
+        log.info(f"Regex extraction - reasoning: {bool(reasoning)}, method: {bool(method)}, proposed_variable: {bool(proposed_variable)}")
+        
+        return TGDData(
+            reasoning=reasoning if reasoning else "Extracted via regex fallback",
+            method=method if method else "regex extraction",
+            proposed_variable=proposed_variable if proposed_variable else input
+        )
+    
     def call(self, input: str) -> TGDData:
-        """Parse the XML response and extract the three fields, returning TGDData directly."""
+        """Parse the XML response and extract the three fields, returning TGDData directly.
+        
+        This method implements robust XML parsing with the following features:
+        1. XML sanitization to remove invalid characters
+        2. CDATA section handling
+        3. Regex-based fallback for malformed XML
+        4. Graceful error recovery
+        
+        Fixes issue #455: Make XML parsing more robust with regex fallback
+        """
         try:
             # Clean the input and extract XML content
             input = input.strip()
@@ -304,6 +358,9 @@ def call(self, input: str) -> TGDData:
             else:
                 xml_content = input[start_idx:end_idx + len(end_tag)]
             
+            # Sanitize XML before parsing
+            xml_content = self._sanitize_xml(xml_content)
+            
             # Parse XML
             root = ET.fromstring(xml_content)
             
@@ -312,9 +369,20 @@ def call(self, input: str) -> TGDData:
             method_elem = root.find('method')
             proposed_variable_elem = root.find('proposed_variable')
             
-            reasoning = reasoning_elem.text.strip() if reasoning_elem is not None and reasoning_elem.text else ""
-            method = method_elem.text.strip() if method_elem is not None and method_elem.text else ""
-            proposed_variable = proposed_variable_elem.text.strip() if proposed_variable_elem is not None and proposed_variable_elem.text else ""
+            # Handle text content including nested elements and CDATA
+            def get_element_text(elem):
+                if elem is None:
+                    return ""
+                # Get all text content including from nested elements
+                text_parts = [elem.text or ""]
+                for child in elem:
+                    text_parts.append(get_element_text(child))
+                    text_parts.append(child.tail or "")
+                return "".join(text_parts).strip()
+            
+            reasoning = get_element_text(reasoning_elem)
+            method = get_element_text(method_elem)
+            proposed_variable = get_element_text(proposed_variable_elem)
             
             # Create and return TGDData object directly
             return TGDData(
@@ -324,19 +392,14 @@ def call(self, input: str) -> TGDData:
             )
             
         except ET.ParseError as e:
-            log.error(f"XML parsing error: {e}")
-            return TGDData(
-                reasoning="XML parsing failed",
-                method="Error",
-                proposed_variable=input
-            )
+            log.warning(f"XML parsing error: {e}, attempting regex fallback")
+            # Use regex-based extraction as fallback
+            return self._extract_with_regex(input)
+            
         except Exception as e:
-            log.error(f"Error parsing XML output: {e}")
-            return TGDData(
-                reasoning="Parsing failed", 
-                method="Error",
-                proposed_variable=input
-            )
+            log.error(f"Error parsing XML output: {e}, attempting regex fallback")
+            # Use regex-based extraction as fallback
+            return self._extract_with_regex(input)
 
 
 new_variable_tags = ["<VARIABLE>", "</VARIABLE>"]