NLS_DATE_FORMAT in Toad for Oracle
Just like we said previously, NLS_DATE_FORMAT can be set at session, database or OS level. It depends on what you want to do.
GUI tools like Toad for Oracle usually override NLS_DATE_FORMAT at any level once you connected to the database in it.
Since Toad for Oracle has 2 types of output, one is script output, the other is data grid. We have to customize NLS_DATE_FORMAT separately.
Script Output
We may change NLS_DATE_FORMAT at session time for script output.
Current Format
Let's see the current format before changing it.

Toad for Oracle - Before Changing NLS_DATE_FORMAT
Alter Session Set NLS_DATE_FORMAT
We execute ALTER SESSION SET NLS_DATE_FORMAT statement in SQL editor to change it, just like we said in NLS_DATE_FORMAT, How and Why, as simple as that.

Toad for Oracle - NLS_DATE_FORMAT Changed
Data Grid
To set NLS_DATE_FORMAT in data grid, we need to change it in the "Toad Options" of the tool.
Toad Options
Here we navigate the function menu to "Toad Options".

Toad for Oracle - View - Toad Options
Date Time Format
We go for "Data Grids" -> "Data" and select ... next to "Date format".

Toad for Oracle - Data Grid - Date format
We choose the date format we want.

Toad for Oracle - Data Grid - Change Date format
We choose the time format we want from the drop-down menu.

Toad for Oracle - Data Grid - Change Time format
Please click on "Apply" button to make it take effect immediately.
Test
After you apply and close the windows, the new datetime format takes effect immediately, so you don't have to logout / login.
Let's check the result.

Toad for Oracle - Data Grid - Datetime Format Changed
We have customized NLS_DATE_FORMAT in data grid permanently.