diff --git a/app/services/whatsapp/populate_template_parameters_service.rb b/app/services/whatsapp/populate_template_parameters_service.rb
new file mode 100644
index 000000000..278e52f64
--- /dev/null
+++ b/app/services/whatsapp/populate_template_parameters_service.rb
@@ -0,0 +1,148 @@
+class Whatsapp::PopulateTemplateParametersService
+  def build_parameter(value)
+    case value
+    when String
+      build_string_parameter(value)
+    when Hash
+      build_hash_parameter(value)
+    else
+      { type: 'text', text: value.to_s }
+    end
+  end
+
+  def build_button_parameter(button)
+    return { type: 'text', text: '' } if button.blank?
+
+    case button['type']
+    when 'copy_code'
+      coupon_code = button['parameter'].to_s.strip
+      raise ArgumentError, 'Coupon code cannot be empty' if coupon_code.blank?
+      raise ArgumentError, 'Coupon code cannot exceed 15 characters' if coupon_code.length > 15
+
+      {
+        type: 'coupon_code',
+        coupon_code: coupon_code
+      }
+    else
+      # For URL buttons and other button types, treat parameter as text
+      # If parameter is blank, use empty string (required for URL buttons)
+      { type: 'text', text: button['parameter'].to_s.strip }
+    end
+  end
+
+  def build_media_parameter(url, media_type)
+    return nil if url.blank?
+
+    sanitized_url = sanitize_parameter(url)
+    validate_url(sanitized_url)
+    build_media_type_parameter(sanitized_url, media_type.downcase)
+  end
+
+  def build_named_parameter(parameter_name, value)
+    sanitized_value = sanitize_parameter(value.to_s)
+    { type: 'text', parameter_name: parameter_name, text: sanitized_value }
+  end
+
+  private
+
+  def build_string_parameter(value)
+    sanitized_value = sanitize_parameter(value)
+    if rich_formatting?(sanitized_value)
+      build_rich_text_parameter(sanitized_value)
+    else
+      { type: 'text', text: sanitized_value }
+    end
+  end
+
+  def build_hash_parameter(value)
+    case value['type']
+    when 'currency'
+      build_currency_parameter(value)
+    when 'date_time'
+      build_date_time_parameter(value)
+    else
+      { type: 'text', text: value.to_s }
+    end
+  end
+
+  def build_currency_parameter(value)
+    {
+      type: 'currency',
+      currency: {
+        fallback_value: value['fallback_value'],
+        code: value['code'],
+        amount_1000: value['amount_1000']
+      }
+    }
+  end
+
+  def build_date_time_parameter(value)
+    {
+      type: 'date_time',
+      date_time: {
+        fallback_value: value['fallback_value'],
+        day_of_week: value['day_of_week'],
+        day_of_month: value['day_of_month'],
+        month: value['month'],
+        year: value['year']
+      }
+    }
+  end
+
+  def build_media_type_parameter(sanitized_url, media_type)
+    case media_type
+    when 'image'
+      build_image_parameter(sanitized_url)
+    when 'video'
+      build_video_parameter(sanitized_url)
+    when 'document'
+      build_document_parameter(sanitized_url)
+    else
+      raise ArgumentError, "Unsupported media type: #{media_type}"
+    end
+  end
+
+  def build_image_parameter(url)
+    { type: 'image', image: { link: url } }
+  end
+
+  def build_video_parameter(url)
+    { type: 'video', video: { link: url } }
+  end
+
+  def build_document_parameter(url)
+    { type: 'document', document: { link: url } }
+  end
+
+  def rich_formatting?(text)
+    # Check if text contains WhatsApp rich formatting markers
+    text.match?(/\*[^*]+\*/) || # Bold: *text*
+      text.match?(/_[^_]+_/) ||   # Italic: _text_
+      text.match?(/~[^~]+~/) ||   # Strikethrough: ~text~
+      text.match?(/```[^`]+```/) # Monospace: ```text```
+  end
+
+  def build_rich_text_parameter(text)
+    # WhatsApp supports rich text formatting in templates
+    # This preserves the formatting markers for the API
+    { type: 'text', text: text }
+  end
+
+  def sanitize_parameter(value)
+    # Basic sanitization - remove dangerous characters and limit length
+    sanitized = value.to_s.strip
+    sanitized = sanitized.gsub(/[<>\"']/, '') # Remove potential HTML/JS chars
+    sanitized[0...1000] # Limit length to prevent DoS
+  end
+
+  def validate_url(url)
+    return if url.blank?
+
+    uri = URI.parse(url)
+    raise ArgumentError, "Invalid URL scheme: #{uri.scheme}. Only http and https are allowed" unless %w[http https].include?(uri.scheme)
+    raise ArgumentError, 'URL too long (max 2000 characters)' if url.length > 2000
+
+  rescue URI::InvalidURIError => e
+    raise ArgumentError, "Invalid URL format: #{e.message}. Please enter a valid URL like https://example.com/document.pdf"
+  end
+end
diff --git a/app/services/whatsapp/providers/whatsapp_360_dialog_service.rb b/app/services/whatsapp/providers/whatsapp_360_dialog_service.rb
index 6e393f9f5..beb11d556 100644
--- a/app/services/whatsapp/providers/whatsapp_360_dialog_service.rb
+++ b/app/services/whatsapp/providers/whatsapp_360_dialog_service.rb
@@ -106,10 +106,7 @@ class Whatsapp::Providers::Whatsapp360DialogService < Whatsapp::Providers::BaseS
         policy: 'deterministic',
         code: template_info[:lang_code]
       },
-      components: [{
-        type: 'body',
-        parameters: template_info[:parameters]
-      }]
+      components: template_info[:parameters]
     }
   end
 
diff --git a/app/services/whatsapp/providers/whatsapp_cloud_service.rb b/app/services/whatsapp/providers/whatsapp_cloud_service.rb
index 1620e4e42..34939048a 100644
--- a/app/services/whatsapp/providers/whatsapp_cloud_service.rb
+++ b/app/services/whatsapp/providers/whatsapp_cloud_service.rb
@@ -12,15 +12,20 @@ class Whatsapp::Providers::WhatsappCloudService < Whatsapp::Providers::BaseServi
   end
 
   def send_template(phone_number, template_info)
+    template_body = template_body_parameters(template_info)
+
+    request_body = {
+      messaging_product: 'whatsapp',
+      recipient_type: 'individual', # Only individual messages supported (not group messages)
+      to: phone_number,
+      type: 'template',
+      template: template_body
+    }
+
     response = HTTParty.post(
       "#{phone_id_path}/messages",
       headers: api_headers,
-      body: {
-        messaging_product: 'whatsapp',
-        to: phone_number,
-        template: template_body_parameters(template_info),
-        type: 'template'
-      }.to_json
+      body: request_body.to_json
     )
 
     process_response(response)
@@ -119,17 +124,36 @@ class Whatsapp::Providers::WhatsappCloudService < Whatsapp::Providers::BaseServi
   end
 
   def template_body_parameters(template_info)
-    {
+    template_body = {
       name: template_info[:name],
       language: {
         policy: 'deterministic',
         code: template_info[:lang_code]
-      },
-      components: [{
-        type: 'body',
-        parameters: template_info[:parameters]
-      }]
+      }
     }
+
+    # Enhanced template parameters structure
+    # Note: Legacy format support (simple parameter arrays) has been removed
+    # in favor of the enhanced component-based structure that supports
+    # headers, buttons, and authentication templates.
+    #
+    # Expected payload format from frontend:
+    # {
+    #   processed_params: {
+    #     body: { '1': 'John', '2': '123 Main St' },
+    #     header: { media_url: 'https://...', media_type: 'image' },
+    #     buttons: [{ type: 'url', parameter: 'otp123456' }]
+    #   }
+    # }
+    # This gets transformed into WhatsApp API component format:
+    # [
+    #   { type: 'body', parameters: [...] },
+    #   { type: 'header', parameters: [...] },
+    #   { type: 'button', sub_type: 'url', parameters: [...] }
+    # ]
+    template_body[:components] = template_info[:parameters] || []
+
+    template_body
   end
 
   def whatsapp_reply_context(message)
diff --git a/app/services/whatsapp/template_parameter_converter_service.rb b/app/services/whatsapp/template_parameter_converter_service.rb
new file mode 100644
index 000000000..b9a9d55d9
--- /dev/null
+++ b/app/services/whatsapp/template_parameter_converter_service.rb
@@ -0,0 +1,117 @@
+# Service to convert legacy WhatsApp template parameter formats to enhanced format
+#
+# Legacy formats (deprecated):
+# - Array: ["John", "Order123"] - positional parameters
+# - Flat Hash: {"1": "John", "2": "Order123"} - direct key-value mapping
+#
+# Enhanced format:
+# - Component-based: {"body": {"1": "John", "2": "Order123"}} - structured by template components
+# - Supports header, body, footer, and button parameters separately
+#
+class Whatsapp::TemplateParameterConverterService
+  def initialize(template_params, template)
+    @template_params = template_params
+    @template = template
+  end
+
+  def normalize_to_enhanced
+    processed_params = @template_params['processed_params']
+
+    # Early return if already enhanced format
+    return @template_params if enhanced_format?(processed_params)
+
+    # Mark as legacy format before conversion for tracking
+    @template_params['format_version'] = 'legacy'
+
+    # Convert legacy formats to enhanced structure
+    # TODO: Legacy format support will be deprecated and removed after 2-3 releases
+    enhanced_params = convert_legacy_to_enhanced(processed_params, @template)
+
+    # Replace original params with enhanced structure
+    @template_params['processed_params'] = enhanced_params
+
+    @template_params
+  end
+
+  private
+
+  def enhanced_format?(processed_params)
+    return false unless processed_params.is_a?(Hash)
+
+    # Enhanced format has component-based structure
+    component_keys = %w[body header footer buttons]
+    has_component_structure = processed_params.keys.any? { |k| component_keys.include?(k) }
+
+    # Additional validation for enhanced format
+    if has_component_structure
+      validate_enhanced_structure(processed_params)
+    else
+      false
+    end
+  end
+
+  def validate_enhanced_structure(params)
+    valid_body?(params['body']) &&
+      valid_header?(params['header']) &&
+      valid_buttons?(params['buttons'])
+  end
+
+  def valid_body?(body)
+    body.nil? || body.is_a?(Hash)
+  end
+
+  def valid_header?(header)
+    header.nil? || header.is_a?(Hash)
+  end
+
+  def valid_buttons?(buttons)
+    return true if buttons.nil?
+    return false unless buttons.is_a?(Array)
+
+    buttons.all? { |b| b.is_a?(Hash) && b['type'] }
+  end
+
+  def convert_legacy_to_enhanced(legacy_params, _template)
+    # Legacy system only supported text-based templates with body parameters
+    # We only convert the parameter format, not add new features
+
+    enhanced = {}
+
+    case legacy_params
+    when Array
+      # Array format: ["John", "Order123"] → {body: {"1": "John", "2": "Order123"}}
+      body_params = convert_array_to_body_params(legacy_params)
+      enhanced['body'] = body_params unless body_params.empty?
+    when Hash
+      # Hash format: {"1": "John", "name": "Jane"} → {body: {"1": "John", "name": "Jane"}}
+      body_params = convert_hash_to_body_params(legacy_params)
+      enhanced['body'] = body_params unless body_params.empty?
+    else
+      raise ArgumentError, "Unknown legacy format: #{legacy_params.class}"
+    end
+
+    enhanced
+  end
+
+  def convert_array_to_body_params(params_array)
+    return {} if params_array.empty?
+
+    body_params = {}
+    params_array.each_with_index do |value, index|
+      body_params[(index + 1).to_s] = value.to_s
+    end
+
+    body_params
+  end
+
+  def convert_hash_to_body_params(params_hash)
+    return {} if params_hash.empty?
+
+    body_params = {}
+    params_hash.each do |key, value|
+      body_params[key.to_s] = value.to_s
+    end
+
+    body_params
+  end
+end
diff --git a/app/services/whatsapp/template_processor_service.rb b/app/services/whatsapp/template_processor_service.rb
index 2ce9fcf8f..3b12bf58b 100644
--- a/app/services/whatsapp/template_processor_service.rb
+++ b/app/services/whatsapp/template_processor_service.rb
@@ -2,11 +2,9 @@ class Whatsapp::TemplateProcessorService
   pattr_initialize [:channel!, :template_params, :message]
 
   def call
-    if template_params.present?
-      process_template_with_params
-    else
-      process_template_from_message
-    end
+    return [nil, nil, nil, nil] if template_params.blank?
+
+    process_template_with_params
   end
 
   private
@@ -20,51 +18,6 @@ class Whatsapp::TemplateProcessorService
     ]
   end
 
-  def process_template_from_message
-    return [nil, nil, nil, nil] if message.blank?
-
-    # Delete the following logic once the update for template_params is stable
-    # see if we can match the message content to a template
-    # An example template may look like "Your package has been shipped. It will be delivered in {{1}} business days.
-    # We want to iterate over these templates with our message body and see if we can fit it to any of the templates
-    # Then we use regex to parse the template varibles and convert them into the proper payload
-    channel.message_templates&.each do |template|
-      match_obj = template_match_object(template)
-      next if match_obj.blank?
-
-      # we have a match, now we need to parse the template variables and convert them into the wa recommended format
-      processed_parameters = match_obj.captures.map { |x| { type: 'text', text: x } }
-
-      # no need to look up further end the search
-      return [template['name'], template['namespace'], template['language'], processed_parameters]
-    end
-    [nil, nil, nil, nil]
-  end
-
-  def template_match_object(template)
-    body_object = validated_body_object(template)
-    return if body_object.blank?
-
-    template_match_regex = build_template_match_regex(body_object['text'])
-    message.outgoing_content.match(template_match_regex)
-  end
-
-  def build_template_match_regex(template_text)
-    # Converts the whatsapp template to a comparable regex string to check against the message content
-    # the variables are of the format {{num}} ex:{{1}}
-
-    # transform the template text into a regex string
-    # we need to replace the {{num}} with matchers that can be used to capture the variables
-    template_text = template_text.gsub(/{{\d}}/, '(.*)')
-    # escape if there are regex characters in the template text
-    template_text = Regexp.escape(template_text)
-    # ensuring only the variables remain as capture groups
-    template_text = template_text.gsub(Regexp.escape('(.*)'), '(.*)')
-
-    template_match_string = "^#{template_text}$"
-    Regexp.new template_match_string
-  end
-
   def find_template
     channel.message_templates.find do |t|
       t['name'] == template_params['name'] && t['language'] == template_params['language'] && t['status']&.downcase == 'approved'
@@ -75,21 +28,100 @@ class Whatsapp::TemplateProcessorService
     template = find_template
     return if template.blank?
 
-    parameter_format = template['parameter_format']
+    # Convert legacy format to enhanced format before processing
+    converter = Whatsapp::TemplateParameterConverterService.new(template_params, template)
+    normalized_params = converter.normalize_to_enhanced
 
-    if parameter_format == 'NAMED'
-      template_params['processed_params']&.map { |key, value| { type: 'text', parameter_name: key, text: value } }
-    else
-      template_params['processed_params']&.map { |_, value| { type: 'text', text: value } }
-    end
+    process_enhanced_template_params(template, normalized_params['processed_params'])
   end
 
-  def validated_body_object(template)
-    # we don't care if its not approved template
-    return if template['status'] != 'approved'
+  def process_enhanced_template_params(template, processed_params = nil)
+    processed_params ||= template_params['processed_params']
+    components = []
 
-    # we only care about text body object in template. if not present we discard the template
-    # we don't support other forms of templates
-    template['components'].find { |obj| obj['type'] == 'BODY' && obj.key?('text') }
+    components.concat(process_header_components(processed_params))
+    components.concat(process_body_components(processed_params, template))
+    components.concat(process_footer_components(processed_params))
+    components.concat(process_button_components(processed_params))
+
+    @template_params = components
+  end
+
+  def process_header_components(processed_params)
+    return [] if processed_params['header'].blank?
+
+    header_params = build_header_params(processed_params['header'])
+    header_params.present? ? [{ type: 'header', parameters: header_params }] : []
+  end
+
+  def build_header_params(header_data)
+    header_params = []
+    header_data.each do |key, value|
+      next if value.blank?
+
+      if media_url_with_type?(key, header_data)
+        media_param = parameter_builder.build_media_parameter(value, header_data['media_type'])
+        header_params << media_param if media_param
+      elsif key != 'media_type'
+        header_params << parameter_builder.build_parameter(value)
+      end
+    end
+    header_params
+  end
+
+  def media_url_with_type?(key, header_data)
+    key == 'media_url' && header_data['media_type'].present?
+  end
+
+  def process_body_components(processed_params, template)
+    return [] if processed_params['body'].blank?
+
+    body_params = processed_params['body'].filter_map do |key, value|
+      next if value.blank?
+
+      parameter_format = template['parameter_format']
+      if parameter_format == 'NAMED'
+        parameter_builder.build_named_parameter(key, value)
+      else
+        parameter_builder.build_parameter(value)
+      end
+    end
+
+    body_params.present? ? [{ type: 'body', parameters: body_params }] : []
+  end
+
+  def process_footer_components(processed_params)
+    return [] if processed_params['footer'].blank?
+
+    footer_params = processed_params['footer'].filter_map do |_, value|
+      next if value.blank?
+
+      parameter_builder.build_parameter(value)
+    end
+
+    footer_params.present? ? [{ type: 'footer', parameters: footer_params }] : []
+  end
+
+  def process_button_components(processed_params)
+    return [] if processed_params['buttons'].blank?
+
+    button_params = processed_params['buttons'].filter_map.with_index do |button, index|
+      next if button.blank?
+
+      if button['type'] == 'url' || button['parameter'].present?
+        {
+          type: 'button',
+          sub_type: button['type'] || 'url',
+          index: index,
+          parameters: [parameter_builder.build_button_parameter(button)]
+        }
+      end
+    end
+
+    button_params.compact
+  end
+
+  def parameter_builder
+    @parameter_builder ||= Whatsapp::PopulateTemplateParametersService.new
   end
 end
diff --git a/spec/services/whatsapp/oneoff_campaign_service_spec.rb b/spec/services/whatsapp/oneoff_campaign_service_spec.rb
index 5cf56bf25..599081e23 100644
--- a/spec/services/whatsapp/oneoff_campaign_service_spec.rb
+++ b/spec/services/whatsapp/oneoff_campaign_service_spec.rb
@@ -19,7 +19,7 @@ describe Whatsapp::OneoffCampaignService do
       'namespace' => '23423423_2342423_324234234_2343224',
       'category' => 'UTILITY',
       'language' => 'en',
-      'processed_params' => { 'name' => 'John', 'ticket_id' => '2332' }
+      'processed_params' => { 'body' => { 'name' => 'John', 'ticket_id' => '2332' } }
     }
   end
 
@@ -125,8 +125,13 @@ describe Whatsapp::OneoffCampaignService do
             namespace: '23423423_2342423_324234234_2343224',
             lang_code: 'en',
             parameters: array_including(
-              hash_including(type: 'text', parameter_name: 'name', text: 'John'),
-              hash_including(type: 'text', parameter_name: 'ticket_id', text: '2332')
+              hash_including(
+                type: 'body',
+                parameters: array_including(
+                  hash_including(type: 'text', parameter_name: 'name', text: 'John'),
+                  hash_including(type: 'text', parameter_name: 'ticket_id', text: '2332')
+                )
+              )
             )
           )
         )
diff --git a/spec/services/whatsapp/providers/whatsapp_cloud_service_spec.rb b/spec/services/whatsapp/providers/whatsapp_cloud_service_spec.rb
index 1bef635b3..8735ccfbb 100644
--- a/spec/services/whatsapp/providers/whatsapp_cloud_service_spec.rb
+++ b/spec/services/whatsapp/providers/whatsapp_cloud_service_spec.rb
@@ -165,19 +165,17 @@ describe Whatsapp::Providers::WhatsappCloudService do
     let(:template_body) do
       {
         messaging_product: 'whatsapp',
+        recipient_type: 'individual', # Added recipient_type field
         to: '+123456789',
+        type: 'template',
         template: {
           name: template_info[:name],
           language: {
             policy: 'deterministic',
             code: template_info[:lang_code]
           },
-          components: [
-            { type: 'body',
-              parameters: template_info[:parameters] }
-          ]
-        },
-        type: 'template'
+          components: template_info[:parameters] # Changed to use parameters directly (enhanced format)
+        }
       }
     end
 
diff --git a/spec/services/whatsapp/send_on_whatsapp_service_spec.rb b/spec/services/whatsapp/send_on_whatsapp_service_spec.rb
index a0e3e893a..e6b699a52 100644
--- a/spec/services/whatsapp/send_on_whatsapp_service_spec.rb
+++ b/spec/services/whatsapp/send_on_whatsapp_service_spec.rb
@@ -6,7 +6,7 @@ describe Whatsapp::SendOnWhatsappService do
     namespace: '23423423_2342423_324234234_2343224',
     language: 'en_US',
     category: 'Marketing',
-    processed_params: { '1' => '3' }
+    processed_params: { 'body' => { '1' => '3' } }
   }
 
   describe '#perform' do
@@ -39,15 +39,16 @@ describe Whatsapp::SendOnWhatsappService do
       let(:named_template_body) do
         {
           messaging_product: 'whatsapp',
+          recipient_type: 'individual',
           to: '123456789',
+          type: 'template',
           template: {
             name: 'ticket_status_updated',
             language: { 'policy': 'deterministic', 'code': 'en_US' },
             components: [{ 'type': 'body',
                            'parameters': [{ 'type': 'text', parameter_name: 'last_name', 'text': 'Dale' },
                                           { 'type': 'text', parameter_name: 'ticket_id', 'text': '2332' }] }]
-          },
-          type: 'template'
+          }
         }
       end
 
@@ -73,7 +74,7 @@ describe Whatsapp::SendOnWhatsappService do
 
       it 'calls channel.send_template when after 24 hour limit' do
         message = create(:message, message_type: :outgoing, content: 'Your package has been shipped. It will be delivered in 3 business days.',
-                                   conversation: conversation)
+                                   conversation: conversation, additional_attributes: { template_params: template_params })
 
         stub_request(:post, 'https://waba.360dialog.io/v1/messages')
           .with(
@@ -107,12 +108,18 @@ describe Whatsapp::SendOnWhatsappService do
           name: 'ticket_status_updated',
           language: 'en_US',
           category: 'UTILITY',
-          processed_params: { 'last_name' => 'Dale', 'ticket_id' => '2332' }
+          processed_params: { 'body' => { 'last_name' => 'Dale', 'ticket_id' => '2332' } }
         }
 
         stub_request(:post, "https://graph.facebook.com/v13.0/#{whatsapp_cloud_channel.provider_config['phone_number_id']}/messages")
           .with(
-            :headers => { 'Content-Type' => 'application/json', 'Authorization' => "Bearer #{whatsapp_cloud_channel.provider_config['api_key']}" },
+            :headers => {
+              'Accept' => '*/*',
+              'Accept-Encoding' => 'gzip;q=1.0,deflate;q=0.6,identity;q=0.3',
+              'Content-Type' => 'application/json',
+              'Authorization' => "Bearer #{whatsapp_cloud_channel.provider_config['api_key']}",
+              'User-Agent' => 'Ruby'
+            },
             :body => named_template_body.to_json
           ).to_return(status: 200, body: success_response, headers: { 'content-type' => 'application/json' })
         message = create(:message,
@@ -124,12 +131,44 @@ describe Whatsapp::SendOnWhatsappService do
       end
 
       it 'calls channel.send_template when template has regexp characters' do
-        message = create(
-          :message,
-          message_type: :outgoing,
-          content: 'عميلنا العزيز الرجاء الرد على هذه الرسالة بكلمة *نعم* للرد على إستفساركم من قبل خدمة العملاء.',
-          conversation: conversation
-        )
+        regexp_template_params = build_template_params('customer_yes_no', '2342384942_32423423_23423fdsdaf23', 'ar', {})
+        arabic_content = 'عميلنا العزيز الرجاء الرد على هذه الرسالة بكلمة *نعم* للرد على إستفساركم من قبل خدمة العملاء.'
+        message = create_message_with_template(arabic_content, regexp_template_params)
+        stub_template_request(regexp_template_params, [])
+
+        described_class.new(message: message).perform
+        expect(message.reload.source_id).to eq('123456789')
+      end
+
+      it 'handles template with header parameters' do
+        processed_params = {
+          'body' => { '1' => '3' },
+          'header' => { 'media_url' => 'https://example.com/image.jpg', 'media_type' => 'image' }
+        }
+        header_template_params = build_sample_template_params(processed_params)
+        message = create_message_with_template('', header_template_params)
+
+        components = [
+          { type: 'header', parameters: [{ type: 'image', image: { link: 'https://example.com/image.jpg' } }] },
+          { type: 'body', parameters: [{ type: 'text', text: '3' }] }
+        ]
+        stub_sample_template_request(components)
+
+        described_class.new(message: message).perform
+        expect(message.reload.source_id).to eq('123456789')
+      end
+
+      it 'handles empty processed_params gracefully' do
+        empty_template_params = {
+          name: 'sample_shipping_confirmation',
+          namespace: '23423423_2342423_324234234_2343224',
+          language: 'en_US',
+          category: 'SHIPPING_UPDATE',
+          processed_params: {}
+        }
+
+        message = create(:message, additional_attributes: { template_params: empty_template_params },
+                                   conversation: conversation, message_type: :outgoing)
 
         stub_request(:post, 'https://waba.360dialog.io/v1/messages')
           .with(
@@ -137,10 +176,10 @@ describe Whatsapp::SendOnWhatsappService do
             body: {
               to: '123456789',
               template: {
-                name: 'customer_yes_no',
-                namespace: '2342384942_32423423_23423fdsdaf23',
-                language: { 'policy': 'deterministic', 'code': 'ar' },
-                components: [{ 'type': 'body', 'parameters': [] }]
+                name: 'sample_shipping_confirmation',
+                namespace: '23423423_2342423_324234234_2343224',
+                language: { 'policy': 'deterministic', 'code': 'en_US' },
+                components: []
               },
               type: 'template'
             }.to_json
@@ -149,6 +188,169 @@ describe Whatsapp::SendOnWhatsappService do
         described_class.new(message: message).perform
         expect(message.reload.source_id).to eq('123456789')
       end
+
+      it 'handles template with button parameters' do
+        processed_params = {
+          'body' => { '1' => '3' },
+          'buttons' => [{ 'type' => 'url', 'parameter' => 'https://track.example.com/123' }]
+        }
+        button_template_params = build_sample_template_params(processed_params)
+        message = create_message_with_template('', button_template_params)
+
+        components = [
+          { type: 'body', parameters: [{ type: 'text', text: '3' }] },
+          { type: 'button', sub_type: 'url', index: 0, parameters: [{ type: 'text', text: 'https://track.example.com/123' }] }
+        ]
+        stub_sample_template_request(components)
+
+        described_class.new(message: message).perform
+        expect(message.reload.source_id).to eq('123456789')
+      end
+
+      it 'processes template parameters correctly via integration' do
+        processed_params = {
+          'body' => { '1' => '5' },
+          'footer' => { 'text' => 'Thank you' }
+        }
+        complex_template_params = build_sample_template_params(processed_params)
+        message = create_message_with_template('', complex_template_params)
+
+        components = [
+          { type: 'body', parameters: [{ type: 'text', text: '5' }] },
+          { type: 'footer', parameters: [{ type: 'text', text: 'Thank you' }] }
+        ]
+        stub_sample_template_request(components)
+
+        expect { described_class.new(message: message).perform }.not_to raise_error
+        expect(message.reload.source_id).to eq('123456789')
+      end
+
+      it 'handles edge case with missing template gracefully' do
+        # Test the service behavior when template is not found
+        missing_template_params = {
+          'name' => 'non_existent_template',
+          'namespace' => 'missing_namespace',
+          'language' => 'en_US',
+          'category' => 'UTILITY',
+          'processed_params' => { 'body' => { '1' => 'test' } }
+        }
+
+        service = Whatsapp::TemplateProcessorService.new(
+          channel: whatsapp_channel,
+          template_params: missing_template_params
+        )
+
+        expect { service.call }.not_to raise_error
+        name, namespace, language, processed_params = service.call
+        expect(name).to eq('non_existent_template')
+        expect(namespace).to eq('missing_namespace')
+        expect(language).to eq('en_US')
+        expect(processed_params).to be_nil
+      end
+
+      it 'handles template with blank parameter values correctly' do
+        processed_params = {
+          'body' => { '1' => '', '2' => 'valid_value', '3' => nil },
+          'header' => { 'media_url' => '', 'media_type' => 'image' }
+        }
+        blank_values_template_params = build_sample_template_params(processed_params)
+        message = create_message_with_template('', blank_values_template_params)
+
+        components = [{ type: 'body', parameters: [{ type: 'text', text: 'valid_value' }] }]
+        stub_sample_template_request(components)
+
+        described_class.new(message: message).perform
+        expect(message.reload.source_id).to eq('123456789')
+      end
+
+      it 'handles nil template_params gracefully' do
+        # Test service behavior when template_params is completely nil
+        message = create(:message, additional_attributes: {},
+                                   conversation: conversation, message_type: :outgoing)
+
+        # Should send regular message, not template
+        stub_request(:post, 'https://waba.360dialog.io/v1/messages')
+          .with(
+            headers: headers,
+            body: {
+              to: '123456789',
+              text: { body: message.content },
+              type: 'text'
+            }.to_json
+          ).to_return(status: 200, body: success_response, headers: { 'content-type' => 'application/json' })
+
+        expect { described_class.new(message: message).perform }.not_to raise_error
+      end
+
+      it 'processes template with rich text formatting' do
+        processed_params = { 'body' => { '1' => '*Bold text* and _italic text_' } }
+        rich_text_template_params = build_sample_template_params(processed_params)
+        message = create_message_with_template('', rich_text_template_params)
+
+        components = [{ type: 'body', parameters: [{ type: 'text', text: '*Bold text* and _italic text_' }] }]
+        stub_sample_template_request(components)
+
+        described_class.new(message: message).perform
+        expect(message.reload.source_id).to eq('123456789')
+      end
+
+      private
+
+      def build_template_params(name, namespace, language, processed_params)
+        {
+          name: name,
+          namespace: namespace,
+          language: language,
+          category: 'SHIPPING_UPDATE',
+          processed_params: processed_params
+        }
+      end
+
+      def create_message_with_template(content, template_params)
+        create(:message,
+               message_type: :outgoing,
+               content: content,
+               conversation: conversation,
+               additional_attributes: { template_params: template_params })
+      end
+
+      def stub_template_request(template_params, components)
+        stub_request(:post, 'https://waba.360dialog.io/v1/messages')
+          .with(
+            headers: headers,
+            body: {
+              to: '123456789',
+              template: {
+                name: template_params[:name],
+                namespace: template_params[:namespace],
+                language: { 'policy': 'deterministic', 'code': template_params[:language] },
+                components: components
+              },
+              type: 'template'
+            }.to_json
+          ).to_return(status: 200, body: success_response, headers: { 'content-type' => 'application/json' })
+      end
+
+      def build_sample_template_params(processed_params)
+        build_template_params('sample_shipping_confirmation', '23423423_2342423_324234234_2343224', 'en_US', processed_params)
+      end
+
+      def stub_sample_template_request(components)
+        stub_request(:post, 'https://waba.360dialog.io/v1/messages')
+          .with(
+            headers: headers,
+            body: {
+              to: '123456789',
+              template: {
+                name: 'sample_shipping_confirmation',
+                namespace: '23423423_2342423_324234234_2343224',
+                language: { 'policy': 'deterministic', 'code': 'en_US' },
+                components: components
+              },
+              type: 'template'
+            }.to_json
+          ).to_return(status: 200, body: success_response, headers: { 'content-type' => 'application/json' })
+      end
     end
   end
 end
diff --git a/spec/services/whatsapp/template_parameter_converter_service_spec.rb b/spec/services/whatsapp/template_parameter_converter_service_spec.rb
new file mode 100644
index 000000000..2994bb472
--- /dev/null
+++ b/spec/services/whatsapp/template_parameter_converter_service_spec.rb
@@ -0,0 +1,199 @@
+require 'rails_helper'
+
+describe Whatsapp::TemplateParameterConverterService do
+  let(:template) do
+    {
+      'name' => 'test_template',
+      'language' => 'en',
+      'components' => [
+        {
+          'type' => 'BODY',
+          'text' => 'Hello {{1}}, your order {{2}} is ready!'
+        }
+      ]
+    }
+  end
+
+  let(:media_template) do
+    {
+      'name' => 'media_template',
+      'language' => 'en',
+      'components' => [
+        {
+          'type' => 'HEADER',
+          'format' => 'IMAGE'
+        },
+        {
+          'type' => 'BODY',
+          'text' => 'Check out {{1}}!'
+        }
+      ]
+    }
+  end
+
+  let(:button_template) do
+    {
+      'name' => 'button_template',
+      'language' => 'en',
+      'components' => [
+        {
+          'type' => 'BODY',
+          'text' => 'Visit our website!'
+        },
+        {
+          'type' => 'BUTTONS',
+          'buttons' => [
+            {
+              'type' => 'URL',
+              'url' => 'https://example.com/{{1}}'
+            },
+            {
+              'type' => 'COPY_CODE'
+            }
+          ]
+        }
+      ]
+    }
+  end
+
+  describe '#normalize_to_enhanced' do
+    context 'when already enhanced format' do
+      let(:enhanced_params) do
+        {
+          'processed_params' => {
+            'body' => { '1' => 'John', '2' => 'Order123' }
+          }
+        }
+      end
+
+      it 'returns unchanged' do
+        converter = described_class.new(enhanced_params, template)
+        result = converter.normalize_to_enhanced
+        expect(result).to eq(enhanced_params)
+      end
+    end
+
+    context 'when legacy array format' do
+      let(:legacy_array_params) do
+        {
+          'processed_params' => %w[John Order123]
+        }
+      end
+
+      it 'converts to enhanced format' do
+        converter = described_class.new(legacy_array_params, template)
+        result = converter.normalize_to_enhanced
+
+        expect(result['processed_params']).to eq({
+                                                   'body' => { '1' => 'John', '2' => 'Order123' }
+                                                 })
+        expect(result['format_version']).to eq('legacy')
+      end
+    end
+
+    context 'when legacy flat hash format' do
+      let(:legacy_hash_params) do
+        {
+          'processed_params' => { '1' => 'John', '2' => 'Order123' }
+        }
+      end
+
+      it 'converts to enhanced format' do
+        converter = described_class.new(legacy_hash_params, template)
+        result = converter.normalize_to_enhanced
+
+        expect(result['processed_params']).to eq({
+                                                   'body' => { '1' => 'John', '2' => 'Order123' }
+                                                 })
+        expect(result['format_version']).to eq('legacy')
+      end
+    end
+
+    context 'when legacy hash with all body parameters' do
+      let(:legacy_hash_params) do
+        {
+          'processed_params' => {
+            '1' => 'Product',
+            'customer_name' => 'John'
+          }
+        }
+      end
+
+      it 'converts to enhanced format with body only' do
+        converter = described_class.new(legacy_hash_params, media_template)
+        result = converter.normalize_to_enhanced
+
+        expect(result['processed_params']).to eq({
+                                                   'body' => {
+                                                     '1' => 'Product',
+                                                     'customer_name' => 'John'
+                                                   }
+                                                 })
+        expect(result['format_version']).to eq('legacy')
+      end
+    end
+
+    context 'when invalid format' do
+      let(:invalid_params) do
+        {
+          'processed_params' => 'invalid_string'
+        }
+      end
+
+      it 'raises ArgumentError' do
+        expect do
+          converter = described_class.new(invalid_params, template)
+          converter.normalize_to_enhanced
+        end.to raise_error(ArgumentError, /Unknown legacy format/)
+      end
+    end
+  end
+
+  describe '#enhanced_format?' do
+    it 'returns true for valid enhanced format' do
+      enhanced = { 'body' => { '1' => 'test' } }
+      converter = described_class.new({}, template)
+      expect(converter.send(:enhanced_format?, enhanced)).to be true
+    end
+
+    it 'returns false for array' do
+      converter = described_class.new({}, template)
+      expect(converter.send(:enhanced_format?, ['test'])).to be false
+    end
+
+    it 'returns false for flat hash' do
+      converter = described_class.new({}, template)
+      expect(converter.send(:enhanced_format?, { '1' => 'test' })).to be false
+    end
+
+    it 'returns false for invalid structure' do
+      invalid = { 'body' => 'not_a_hash' }
+      converter = described_class.new({}, template)
+      expect(converter.send(:enhanced_format?, invalid)).to be false
+    end
+  end
+
+  describe 'simplified conversion methods' do
+    describe '#convert_array_to_body_params' do
+      it 'converts empty array' do
+        converter = described_class.new({}, template)
+        result = converter.send(:convert_array_to_body_params, [])
+        expect(result).to eq({})
+      end
+
+      it 'converts array to numbered body parameters' do
+        converter = described_class.new({}, template)
+        result = converter.send(:convert_array_to_body_params, %w[John Order123])
+        expect(result).to eq({ '1' => 'John', '2' => 'Order123' })
+      end
+    end
+
+    describe '#convert_hash_to_body_params' do
+      it 'converts hash to body parameters' do
+        converter = described_class.new({}, template)
+        result = converter.send(:convert_hash_to_body_params, { 'name' => 'John', 'order' => '123' })
+        expect(result).to eq({ 'name' => 'John', 'order' => '123' })
+      end
+    end
+  end
+end
diff --git a/swagger/definitions/request/conversation/create_message_payload.yml b/swagger/definitions/request/conversation/create_message_payload.yml
index ef1a051c2..4b1851293 100644
--- a/swagger/definitions/request/conversation/create_message_payload.yml
+++ b/swagger/definitions/request/conversation/create_message_payload.yml
@@ -48,4 +48,4 @@ properties:
         type: object
         description: The processed param values for template variables in template
         example:
-          1: 'Chatwoot'
+          1: 'Chatwoot'
\ No newline at end of file