diff --git a/libs/log/handler/friendly.go b/libs/log/handler/friendly.go
index 3b960cf67..27eef30c0 100644
--- a/libs/log/handler/friendly.go
+++ b/libs/log/handler/friendly.go
@@ -5,7 +5,9 @@ import (
 	"fmt"
 	"io"
 	"log/slog"
+	"strings"
 	"sync"
+	"time"
 
 	"github.com/databricks/cli/libs/log"
 )
@@ -17,6 +19,7 @@ import (
 // https://github.com/golang/example/blob/master/slog-handler-guide/README.md
 type friendlyHandler struct {
 	opts Options
+	goas []groupOrAttrs
 	mu   *sync.Mutex
 	out  io.Writer
 
@@ -31,6 +34,12 @@ type friendlyHandler struct {
 	levelError string
 }
 
+// groupOrAttrs holds either a group name or a list of slog.Attrs.
+type groupOrAttrs struct {
+	group string      // group name if non-empty
+	attrs []slog.Attr // attrs if non-empty
+}
+
 func NewFriendlyHandler(out io.Writer, opts *Options) slog.Handler {
 	h := &friendlyHandler{out: out, mu: &sync.Mutex{}}
 	if opts != nil {
@@ -44,11 +53,11 @@ func NewFriendlyHandler(out io.Writer, opts *Options) slog.Handler {
 
 	// Cache (colorized) level strings.
 	// The colors to use for each level are configured in `colors.go`.
-	h.levelTrace = h.sprintf(ttyColorLevelTrace, "%s", "Trace: ")
-	h.levelDebug = h.sprintf(ttyColorLevelDebug, "%s", "Debug: ")
-	h.levelInfo = h.sprintf(ttyColorLevelInfo, "%s", "Info: ")
-	h.levelWarn = h.sprintf(ttyColorLevelWarn, "%s", "Warn: ")
-	h.levelError = h.sprintf(ttyColorLevelError, "%s", "Error: ")
+	h.levelTrace = h.sprintf(ttyColorLevelTrace, "%s", "Trace:")
+	h.levelDebug = h.sprintf(ttyColorLevelDebug, "%s", "Debug:")
+	h.levelInfo = h.sprintf(ttyColorLevelInfo, "%s", "Info:")
+	h.levelWarn = h.sprintf(ttyColorLevelWarn, "%s", "Warn:")
+	h.levelError = h.sprintf(ttyColorLevelError, "%s", "Error:")
 	return h
 }
 
@@ -81,22 +90,158 @@ func (h *friendlyHandler) Enabled(ctx context.Context, level slog.Level) bool {
 	return level >= h.opts.Level.Level()
 }
 
+type handleState struct {
+	h *friendlyHandler
+
+	buf    []byte
+	prefix string
+
+	// Keep stack of groups to pass to [slog.ReplaceAttr] function.
+	groups []string
+}
+
+func (h *friendlyHandler) handleState() *handleState {
+	return &handleState{
+		h: h,
+
+		buf:    make([]byte, 0, 1024),
+		prefix: "",
+	}
+}
+
+func (s *handleState) openGroup(name string) {
+	s.groups = append(s.groups, name)
+	s.prefix += name + "."
+}
+
+func (s *handleState) closeGroup(name string) {
+	s.prefix = s.prefix[:len(s.prefix)-len(name)-1]
+	s.groups = s.groups[:len(s.groups)-1]
+}
+
+func (s *handleState) append(args ...any) {
+	s.buf = fmt.Append(s.buf, args...)
+}
+
+func (s *handleState) appendf(format string, args ...any) {
+	s.buf = fmt.Appendf(s.buf, format, args...)
+}
+
+func (s *handleState) appendAttr(a slog.Attr) {
+	if rep := s.h.opts.ReplaceAttr; rep != nil && a.Value.Kind() != slog.KindGroup {
+		// Resolve before calling ReplaceAttr, so the user doesn't have to.
+		a.Value = a.Value.Resolve()
+		a = rep(s.groups, a)
+	}
+
+	// Resolve the Attr's value before doing anything else.
+	a.Value = a.Value.Resolve()
+
+	// Ignore empty Attrs.
+	if a.Equal(slog.Attr{}) {
+		return
+	}
+
+	switch a.Value.Kind() {
+	case slog.KindGroup:
+		attrs := a.Value.Group()
+		// Output only non-empty groups.
+		if len(attrs) > 0 {
+			if a.Key != "" {
+				s.openGroup(a.Key)
+			}
+			for _, aa := range attrs {
+				s.appendAttr(aa)
+			}
+			if a.Key != "" {
+				s.closeGroup(a.Key)
+			}
+		}
+	case slog.KindTime:
+		s.append(
+			" ",
+			s.h.sprint(ttyColorAttrKey, s.prefix, a.Key),
+			s.h.sprint(ttyColorAttrSeparator, "="),
+			s.h.sprint(ttyColorAttrValue, a.Value.Time().Format(time.RFC3339Nano)),
+		)
+	default:
+		str := a.Value.String()
+		format := "%s"
+
+		// Quote values wih spaces, to make them easy to parse.
+		if strings.ContainsAny(str, " \t\n") {
+			format = "%q"
+		}
+
+		s.append(
+			" ",
+			s.h.sprint(ttyColorAttrKey, s.prefix, a.Key),
+			s.h.sprint(ttyColorAttrSeparator, "="),
+			s.h.sprint(ttyColorAttrValue, fmt.Sprintf(format, str)),
+		)
+	}
+}
+
 // Handle implements slog.Handler.
 func (h *friendlyHandler) Handle(ctx context.Context, r slog.Record) error {
-	out := fmt.Sprintf("%s%s\n", h.coloredLevel(r), h.sprint(ttyColorMessage, r.Message))
+	state := h.handleState()
+	state.appendf("%s ", h.coloredLevel(r))
+	state.append(h.sprint(ttyColorMessage, r.Message))
 
+	// Handle state from WithGroup and WithAttrs.
+	goas := h.goas
+	if r.NumAttrs() == 0 {
+		// If the record has no Attrs, remove groups at the end of the list; they are empty.
+		for len(goas) > 0 && goas[len(goas)-1].group != "" {
+			goas = goas[:len(goas)-1]
+		}
+	}
+	for _, goa := range goas {
+		if goa.group != "" {
+			state.openGroup(goa.group)
+		} else {
+			for _, a := range goa.attrs {
+				state.appendAttr(a)
+			}
+		}
+	}
+
+	// Add attributes from the record.
+	r.Attrs(func(a slog.Attr) bool {
+		state.appendAttr(a)
+		return true
+	})
+
+	// Add newline.
+	state.append("\n")
+
+	// Write the log line.
 	h.mu.Lock()
 	defer h.mu.Unlock()
-	_, err := h.out.Write([]byte(out))
+	_, err := h.out.Write(state.buf)
 	return err
 }
 
+func (h *friendlyHandler) withGroupOrAttrs(goa groupOrAttrs) *friendlyHandler {
+	h2 := *h
+	h2.goas = make([]groupOrAttrs, len(h.goas)+1)
+	copy(h2.goas, h.goas)
+	h2.goas[len(h2.goas)-1] = goa
+	return &h2
+}
+
 // WithGroup implements slog.Handler.
 func (h *friendlyHandler) WithGroup(name string) slog.Handler {
-	return h
+	if name == "" {
+		return h
+	}
+	return h.withGroupOrAttrs(groupOrAttrs{group: name})
 }
 
 // WithAttrs implements slog.Handler.
 func (h *friendlyHandler) WithAttrs(attrs []slog.Attr) slog.Handler {
-	return h
+	if len(attrs) == 0 {
+		return h
+	}
+	return h.withGroupOrAttrs(groupOrAttrs{attrs: attrs})
 }