In this paper, we present ToolACE, a high-quality and diverse training data generation pipeline for improving the function-calling capability of large-scale language models. To overcome the limitations of existing synthetic data generation methods, ToolACE constructs an API pool containing 26,507 diverse APIs through a self-evolving synthesis process, and generates conversational data through multiple agent interactions and formalized thought processes. Rule-based and model-based validation systems ensure data accuracy, and we show that an 8 billion-parameter model trained with the generated data achieves state-of-the-art performance on the Berkeley Function-Calling Leaderboard. The model and some of the data are publicly available.