diff --git a/app/javascript/dashboard/components/widgets/conversation/TagAgents.vue b/app/javascript/dashboard/components/widgets/conversation/TagAgents.vue
index b2d578e0d..b3faa57f8 100644
--- a/app/javascript/dashboard/components/widgets/conversation/TagAgents.vue
+++ b/app/javascript/dashboard/components/widgets/conversation/TagAgents.vue
@@ -1,8 +1,9 @@
 <script setup>
 import Avatar from 'next/avatar/Avatar.vue';
 import { ref, computed, watch, nextTick } from 'vue';
-import { useStoreGetters } from 'dashboard/composables/store';
+import { useStoreGetters, useMapGetter } from 'dashboard/composables/store';
 import { useKeyboardNavigableList } from 'dashboard/composables/useKeyboardNavigableList';
+import { useI18n } from 'vue-i18n';
 
 const props = defineProps({
   searchKey: {
@@ -13,41 +14,89 @@ const props = defineProps({
 
 const emit = defineEmits(['selectAgent']);
 
+const { t } = useI18n();
 const getters = useStoreGetters();
 const agents = computed(() => getters['agents/getVerifiedAgents'].value);
+const teams = useMapGetter('teams/getTeams');
 
 const tagAgentsRef = ref(null);
 const selectedIndex = ref(0);
 
 const items = computed(() => {
-  if (!props.searchKey) {
-    return agents.value;
-  }
-  return agents.value.filter(agent =>
-    agent.name.toLowerCase().includes(props.searchKey.toLowerCase())
+  const search = props.searchKey?.trim().toLowerCase() || '';
+
+  const buildItems = (list, type, infoKey) =>
+    list
+      .map(item => ({
+        ...item,
+        type,
+        displayName: item.name,
+        displayInfo: item[infoKey],
+      }))
+      .filter(item =>
+        search ? item.displayName.toLowerCase().includes(search) : true
+      );
+
+  const categories = [
+    {
+      title: t('CONVERSATION.MENTION.AGENTS'),
+      data: buildItems(agents.value, 'user', 'email'),
+    },
+    {
+      title: t('CONVERSATION.MENTION.TEAMS'),
+      data: buildItems(teams.value, 'team', 'description'),
+    },
+  ];
+
+  return categories.flatMap(({ title, data }) =>
+    data.length
+      ? [
+          { type: 'header', title, id: `${title.toLowerCase()}-header` },
+          ...data,
+        ]
+      : []
   );
 });
 
+const selectableItems = computed(() => {
+  return items.value.filter(item => item.type !== 'header');
+});
+
+const getSelectableIndex = item => {
+  return selectableItems.value.findIndex(
+    selectableItem =>
+      selectableItem.type === item.type && selectableItem.id === item.id
+  );
+};
+
 const adjustScroll = () => {
   nextTick(() => {
     if (tagAgentsRef.value) {
-      tagAgentsRef.value.scrollTop = 50 * selectedIndex.value;
+      const selectedElement = tagAgentsRef.value.querySelector(
+        `#mention-item-${selectedIndex.value}`
+      );
+      if (selectedElement) {
+        selectedElement.scrollIntoView({
+          block: 'nearest',
+          behavior: 'auto',
+        });
+      }
     }
   });
 };
 
 const onSelect = () => {
-  emit('selectAgent', items.value[selectedIndex.value]);
+  emit('selectAgent', selectableItems.value[selectedIndex.value]);
 };
 
 useKeyboardNavigableList({
-  items,
+  items: selectableItems,
   onSelect,
   adjustScroll,
   selectedIndex,
 });
 
-watch(items, newListOfAgents => {
+watch(selectableItems, newListOfAgents => {
   if (newListOfAgents.length < selectedIndex.value + 1) {
     selectedIndex.value = 0;
   }
@@ -69,40 +118,61 @@ const onAgentSelect = index => {
       v-if="items.length"
       ref="tagAgentsRef"
       class="vertical dropdown menu mention--box bg-n-solid-1 p-1 rounded-xl text-sm overflow-auto absolute w-full z-20 shadow-md left-0 leading-[1.2] bottom-full max-h-[12.5rem] border border-solid border-n-strong"
+      role="listbox"
     >
       <li
-        v-for="(agent, index) in items"
-        :id="`mention-item-${index}`"
-        :key="agent.id"
-        :class="{
-          'bg-n-alpha-black2': index === selectedIndex,
-          'last:mb-0': items.length <= 4,
-        }"
-        class="flex items-center px-2 py-1 rounded-md"
-        @click="onAgentSelect(index)"
-        @mouseover="onHover(index)"
+        v-for="item in items"
+        :id="
+          item.type === 'header'
+            ? undefined
+            : `mention-item-${getSelectableIndex(item)}`
+        "
+        :key="`${item.type}-${item.id}`"
       >
-        <div class="ltr:mr-2 rtl:ml-2">
-          <Avatar :src="agent.thumbnail" :name="agent.name" rounded-full />
-        </div>
+        <!-- Section Header -->
         <div
-          class="flex-1 max-w-full overflow-hidden whitespace-nowrap text-ellipsis"
+          v-if="item.type === 'header'"
+          class="px-2 py-2 text-xs font-medium tracking-wide capitalize text-n-slate-11"
         >
-          <h5
-            class="mb-0 overflow-hidden text-sm text-n-slate-11 whitespace-nowrap text-ellipsis"
-            :class="{
-              'text-n-slate-12': index === selectedIndex,
-            }"
-          >
-            {{ agent.name }}
-          </h5>
+          {{ item.title }}
+        </div>
+        <!-- Selectable Item -->
+        <div
+          v-else
+          :class="{
+            'bg-n-alpha-black2': getSelectableIndex(item) === selectedIndex,
+          }"
+          class="flex items-center px-2 py-1 rounded-md cursor-pointer"
+          role="option"
+          @click="onAgentSelect(getSelectableIndex(item))"
+          @mouseover="onHover(getSelectableIndex(item))"
+        >
+          <div class="ltr:mr-2 rtl:ml-2">
+            <Avatar
+              :src="item.thumbnail"
+              :name="item.displayName"
+              rounded-full
+            />
+          </div>
           <div
-            class="overflow-hidden text-xs whitespace-nowrap text-ellipsis text-n-slate-10"
-            :class="{
-              'text-n-slate-11': index === selectedIndex,
-            }"
+            class="overflow-hidden flex-1 max-w-full whitespace-nowrap text-ellipsis"
           >
-            {{ agent.email }}
+            <h5
+              class="overflow-hidden mb-0 text-sm capitalize whitespace-nowrap text-n-slate-11 text-ellipsis"
+              :class="{
+                'text-n-slate-12': getSelectableIndex(item) === selectedIndex,
+              }"
+            >
+              {{ item.displayName }}
+            </h5>
+            <div
+              class="overflow-hidden text-xs whitespace-nowrap text-ellipsis text-n-slate-10"
+              :class="{
+                'text-n-slate-11': getSelectableIndex(item) === selectedIndex,
+              }"
+            >
+              {{ item.displayInfo }}
+            </div>
           </div>
         </div>
       </li>
diff --git a/app/javascript/dashboard/helper/editorHelper.js b/app/javascript/dashboard/helper/editorHelper.js
index ae9eabe67..1fede3a58 100644
--- a/app/javascript/dashboard/helper/editorHelper.js
+++ b/app/javascript/dashboard/helper/editorHelper.js
@@ -301,11 +301,18 @@ export function setURLWithQueryAndSize(selectedImageNode, size, editorView) {
 const createNode = (editorView, nodeType, content) => {
   const { state } = editorView;
   switch (nodeType) {
-    case 'mention':
-      return state.schema.nodes.mention.create({
+    case 'mention': {
+      const mentionType = content.type || 'user';
+      const displayName = content.displayName || content.name;
+
+      const mentionNode = state.schema.nodes.mention.create({
         userId: content.id,
-        userFullName: content.name,
+        userFullName: displayName,
+        mentionType,
       });
+
+      return mentionNode;
+    }
     case 'cannedResponse':
       return new MessageMarkdownTransformer(messageSchema).parse(content);
     case 'variable':
diff --git a/app/javascript/dashboard/helper/specs/editorContentHelper.spec.js b/app/javascript/dashboard/helper/specs/editorContentHelper.spec.js
index a90c0c233..56b162d50 100644
--- a/app/javascript/dashboard/helper/specs/editorContentHelper.spec.js
+++ b/app/javascript/dashboard/helper/specs/editorContentHelper.spec.js
@@ -48,6 +48,7 @@ describe('getContentNode', () => {
         {
           userId: content.id,
           userFullName: content.name,
+          mentionType: 'user',
         }
       );
     });
diff --git a/app/javascript/dashboard/helper/specs/editorHelper.spec.js b/app/javascript/dashboard/helper/specs/editorHelper.spec.js
index a33ef3a1e..4ed9170c2 100644
--- a/app/javascript/dashboard/helper/specs/editorHelper.spec.js
+++ b/app/javascript/dashboard/helper/specs/editorHelper.spec.js
@@ -8,6 +8,7 @@ import {
   insertAtCursor,
   findNodeToInsertImage,
   setURLWithQueryAndSize,
+  getContentNode,
 } from '../editorHelper';
 import { EditorState } from '@chatwoot/prosemirror-schema';
 import { EditorView } from '@chatwoot/prosemirror-schema';
@@ -18,12 +19,28 @@ const schema = new Schema({
   nodes: {
     doc: { content: 'paragraph+' },
     paragraph: {
-      content: 'text*',
+      content: 'inline*',
+      group: 'block',
       toDOM: () => ['p', 0], // Represents a paragraph as a <p> tag in the DOM.
     },
     text: {
+      group: 'inline',
       toDOM: node => node.text, // Represents text as its actual string value.
     },
+    mention: {
+      attrs: {
+        userId: { default: '' },
+        userFullName: { default: '' },
+        mentionType: { default: 'user' },
+      },
+      inline: true,
+      group: 'inline',
+      toDOM: node => [
+        'span',
+        { class: 'mention' },
+        `@${node.attrs.userFullName}`,
+      ],
+    },
   },
 });
 
@@ -439,3 +456,173 @@ describe('setURLWithQueryAndSize', () => {
     expect(editorView.dispatch).not.toHaveBeenCalled();
   });
 });
+
+describe('getContentNode', () => {
+  let mockEditorView;
+
+  beforeEach(() => {
+    mockEditorView = {
+      state: {
+        schema: {
+          nodes: {
+            mention: {
+              create: vi.fn(attrs => ({
+                type: { name: 'mention' },
+                attrs,
+              })),
+            },
+          },
+          text: vi.fn(content => ({ type: { name: 'text' }, text: content })),
+        },
+      },
+    };
+  });
+
+  describe('mention node creation', () => {
+    it('creates a user mention node with correct attributes', () => {
+      const userContent = {
+        id: '123',
+        name: 'John Doe',
+        type: 'user',
+      };
+
+      const result = getContentNode(mockEditorView, 'mention', userContent, {
+        from: 0,
+        to: 5,
+      });
+
+      expect(
+        mockEditorView.state.schema.nodes.mention.create
+      ).toHaveBeenCalledWith({
+        userId: '123',
+        userFullName: 'John Doe',
+        mentionType: 'user',
+      });
+
+      expect(result).toEqual({
+        node: {
+          type: { name: 'mention' },
+          attrs: {
+            userId: '123',
+            userFullName: 'John Doe',
+            mentionType: 'user',
+          },
+        },
+        from: 0,
+        to: 5,
+      });
+    });
+
+    it('creates a team mention node with correct attributes', () => {
+      const teamContent = {
+        id: '456',
+        name: 'Support Team',
+        type: 'team',
+      };
+
+      const result = getContentNode(mockEditorView, 'mention', teamContent, {
+        from: 0,
+        to: 5,
+      });
+
+      expect(
+        mockEditorView.state.schema.nodes.mention.create
+      ).toHaveBeenCalledWith({
+        userId: '456',
+        userFullName: 'Support Team',
+        mentionType: 'team',
+      });
+
+      expect(result).toEqual({
+        node: {
+          type: { name: 'mention' },
+          attrs: {
+            userId: '456',
+            userFullName: 'Support Team',
+            mentionType: 'team',
+          },
+        },
+        from: 0,
+        to: 5,
+      });
+    });
+
+    it('defaults to user mention type when type is not specified', () => {
+      const contentWithoutType = {
+        id: '789',
+        name: 'Jane Smith',
+      };
+
+      getContentNode(mockEditorView, 'mention', contentWithoutType, {
+        from: 0,
+        to: 5,
+      });
+
+      expect(
+        mockEditorView.state.schema.nodes.mention.create
+      ).toHaveBeenCalledWith({
+        userId: '789',
+        userFullName: 'Jane Smith',
+        mentionType: 'user',
+      });
+    });
+
+    it('uses displayName over name when both are provided', () => {
+      const contentWithDisplayName = {
+        id: '101',
+        name: 'john_doe',
+        displayName: 'John Doe (Admin)',
+        type: 'user',
+      };
+
+      getContentNode(mockEditorView, 'mention', contentWithDisplayName, {
+        from: 0,
+        to: 5,
+      });
+
+      expect(
+        mockEditorView.state.schema.nodes.mention.create
+      ).toHaveBeenCalledWith({
+        userId: '101',
+        userFullName: 'John Doe (Admin)',
+        mentionType: 'user',
+      });
+    });
+
+    it('handles missing displayName by falling back to name', () => {
+      const contentWithoutDisplayName = {
+        id: '102',
+        name: 'jane_smith',
+        type: 'user',
+      };
+
+      getContentNode(mockEditorView, 'mention', contentWithoutDisplayName, {
+        from: 0,
+        to: 5,
+      });
+
+      expect(
+        mockEditorView.state.schema.nodes.mention.create
+      ).toHaveBeenCalledWith({
+        userId: '102',
+        userFullName: 'jane_smith',
+        mentionType: 'user',
+      });
+    });
+  });
+
+  describe('unsupported node types', () => {
+    it('returns null node for unsupported type', () => {
+      const result = getContentNode(mockEditorView, 'unsupported', 'content', {
+        from: 0,
+        to: 5,
+      });
+
+      expect(result).toEqual({
+        node: null,
+        from: 0,
+        to: 5,
+      });
+    });
+  });
+});
diff --git a/app/javascript/dashboard/i18n/locale/en/conversation.json b/app/javascript/dashboard/i18n/locale/en/conversation.json
index c047f17ad..5b3b7f3f8 100644
--- a/app/javascript/dashboard/i18n/locale/en/conversation.json
+++ b/app/javascript/dashboard/i18n/locale/en/conversation.json
@@ -96,6 +96,10 @@
         "NEXT_WEEK": "Next week"
       }
     },
+    "MENTION": {
+      "AGENTS": "Agents",
+      "TEAMS": "Teams"
+    },
     "CUSTOM_SNOOZE": {
       "TITLE": "Snooze until",
       "APPLY": "Snooze",
diff --git a/app/services/messages/mention_service.rb b/app/services/messages/mention_service.rb
index 3f4392ec1..43bc17fb8 100644
--- a/app/services/messages/mention_service.rb
+++ b/app/services/messages/mention_service.rb
@@ -19,14 +19,33 @@ class Messages::MentionService
   end
 
   def mentioned_ids
-    @mentioned_ids ||= message.content.scan(%r{\(mention://(user|team)/(\d+)/(.+?)\)}).map(&:second).uniq
+    user_mentions = message.content.scan(%r{\(mention://user/(\d+)/(.+?)\)}).map(&:first)
+    team_mentions = message.content.scan(%r{\(mention://team/(\d+)/(.+?)\)}).map(&:first)
+
+    expanded_user_ids = expand_team_mentions_to_users(team_mentions)
+
+    (user_mentions + expanded_user_ids).uniq
+  end
+
+  def expand_team_mentions_to_users(team_ids)
+    return [] if team_ids.blank?
+
+    message.inbox.account.teams
+           .joins(:team_members)
+           .where(id: team_ids)
+           .pluck('team_members.user_id')
+           .map(&:to_s)
+  end
+
+  def valid_mentionable_user_ids
+    @valid_mentionable_user_ids ||= begin
+      inbox = message.inbox
+      inbox.account.administrators.pluck(:id) + inbox.members.pluck(:id)
+    end
   end
 
   def filter_mentioned_ids_by_inbox
-    inbox = message.inbox
-    valid_mentionable_ids = inbox.account.administrators.map(&:id) + inbox.members.map(&:id)
-    # Intersection of ids
-    mentioned_ids & valid_mentionable_ids.uniq.map(&:to_s)
+    mentioned_ids & valid_mentionable_user_ids.map(&:to_s)
   end
 
   def generate_notifications_for_mentions(validated_mentioned_ids)
diff --git a/package.json b/package.json
index c81f033b5..1ca8d1025 100644
--- a/package.json
+++ b/package.json
@@ -33,7 +33,7 @@
   "dependencies": {
     "@breezystack/lamejs": "^1.2.7",
     "@chatwoot/ninja-keys": "1.2.3",
-    "@chatwoot/prosemirror-schema": "1.1.1-next",
+    "@chatwoot/prosemirror-schema": "1.1.6-next",
     "@chatwoot/utils": "^0.0.47",
     "@formkit/core": "^1.6.7",
     "@formkit/vue": "^1.6.7",
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index b8b23d1d0..a88cfc084 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -20,8 +20,8 @@ importers:
         specifier: 1.2.3
         version: 1.2.3
       '@chatwoot/prosemirror-schema':
-        specifier: 1.1.1-next
-        version: 1.1.1-next
+        specifier: 1.1.6-next
+        version: 1.1.6-next
       '@chatwoot/utils':
         specifier: ^0.0.47
         version: 0.0.47
@@ -403,8 +403,8 @@ packages:
   '@chatwoot/ninja-keys@1.2.3':
     resolution: {integrity: sha512-xM8d9P5ikDMZm2WbaCTk/TW5HFauylrU3cJ75fq5je6ixKwyhl/0kZbVN/vbbZN4+AUX/OaSIn6IJbtCgIF67g==}
 
-  '@chatwoot/prosemirror-schema@1.1.1-next':
-    resolution: {integrity: sha512-/M2qZ+ZF7GlQNt1riwVP499fvp3hxSqd5iy8hxyF9pkj9qQ+OKYn5JK+v3qwwqQY3IxhmNOn1Lp6tm7vstrd9Q==}
+  '@chatwoot/prosemirror-schema@1.1.6-next':
+    resolution: {integrity: sha512-9lf7FrcED/B5oyGrMmIkbegkhlC/P0NrtXoX8k94YWRosZcx0hGVGhpTud+0Mhm7saAfGerKIwTRVDmmnxPuCA==}
 
   '@chatwoot/utils@0.0.47':
     resolution: {integrity: sha512-0z/MY+rBjDnf6zuWbMdzexH+zFDXU/g5fPr/kcUxnqtvPsZIQpL8PvwSPBW0+wS6R7LChndNkdviV1e9H8Yp+Q==}
@@ -5237,7 +5237,7 @@ snapshots:
       hotkeys-js: 3.8.7
       lit: 2.2.6
 
-  '@chatwoot/prosemirror-schema@1.1.1-next':
+  '@chatwoot/prosemirror-schema@1.1.6-next':
     dependencies:
       markdown-it-sup: 2.0.0
       prosemirror-commands: 1.6.0
diff --git a/spec/services/messages/mention_service_spec.rb b/spec/services/messages/mention_service_spec.rb
index 94277570b..7cdb8ffe7 100644
--- a/spec/services/messages/mention_service_spec.rb
+++ b/spec/services/messages/mention_service_spec.rb
@@ -5,69 +5,503 @@ describe Messages::MentionService do
   let!(:user) { create(:user, account: account) }
   let!(:first_agent) { create(:user, account: account) }
   let!(:second_agent) { create(:user, account: account) }
+  let!(:third_agent) { create(:user, account: account) }
+  let!(:admin_user) { create(:user, account: account, role: :administrator) }
   let!(:inbox) { create(:inbox, account: account) }
   let!(:conversation) { create(:conversation, account: account, inbox: inbox, assignee: user) }
+  let!(:team) { create(:team, account: account, name: 'Support Team') }
+  let!(:empty_team) { create(:team, account: account, name: 'Empty Team') }
   let(:builder) { double }
 
   before do
     create(:inbox_member, user: first_agent, inbox: inbox)
     create(:inbox_member, user: second_agent, inbox: inbox)
+    create(:team_member, user: first_agent, team: team)
+    create(:team_member, user: second_agent, team: team)
     conversation.reload
     allow(NotificationBuilder).to receive(:new).and_return(builder)
     allow(builder).to receive(:perform)
+    allow(Conversations::UserMentionJob).to receive(:perform_later)
   end
 
-  context 'when message contains mention' do
-    it 'creates notifications for inbox member who was mentioned' do
+  describe '#perform' do
+    context 'when message is not private' do
+      it 'does not process mentions for public messages' do
+        message = build(
+          :message,
+          conversation: conversation,
+          account: account,
+          content: "hi (mention://user/#{first_agent.id}/#{first_agent.name})",
+          private: false
+        )
+
+        described_class.new(message: message).perform
+
+        expect(NotificationBuilder).not_to have_received(:new)
+        expect(Conversations::UserMentionJob).not_to have_received(:perform_later)
+      end
+    end
+
+    context 'when message has no content' do
+      it 'does not process mentions for empty messages' do
+        message = build(
+          :message,
+          conversation: conversation,
+          account: account,
+          content: nil,
+          private: true
+        )
+
+        described_class.new(message: message).perform
+
+        expect(NotificationBuilder).not_to have_received(:new)
+        expect(Conversations::UserMentionJob).not_to have_received(:perform_later)
+      end
+    end
+
+    context 'when message has no mentions' do
+      it 'does not process messages without mentions' do
+        message = build(
+          :message,
+          conversation: conversation,
+          account: account,
+          content: 'just a regular message',
+          private: true
+        )
+
+        described_class.new(message: message).perform
+
+        expect(NotificationBuilder).not_to have_received(:new)
+        expect(Conversations::UserMentionJob).not_to have_received(:perform_later)
+      end
+    end
+  end
+
+  describe 'user mentions' do
+    context 'when message contains single user mention' do
+      it 'creates notifications for inbox member who was mentioned' do
+        message = build(
+          :message,
+          conversation: conversation,
+          account: account,
+          content: "hi (mention://user/#{first_agent.id}/#{first_agent.name})",
+          private: true
+        )
+
+        described_class.new(message: message).perform
+
+        expect(NotificationBuilder).to have_received(:new).with(
+          notification_type: 'conversation_mention',
+          user: first_agent,
+          account: account,
+          primary_actor: message.conversation,
+          secondary_actor: message
+        )
+        expect(Conversations::UserMentionJob).to have_received(:perform_later).with(
+          [first_agent.id.to_s],
+          conversation.id,
+          account.id
+        )
+      end
+
+      it 'adds mentioned user as conversation participant' do
+        message = build(
+          :message,
+          conversation: conversation,
+          account: account,
+          content: "hi (mention://user/#{first_agent.id}/#{first_agent.name})",
+          private: true
+        )
+
+        described_class.new(message: message).perform
+
+        expect(conversation.conversation_participants.map(&:user_id)).to include(first_agent.id)
+      end
+    end
+
+    context 'when message contains multiple user mentions' do
+      let(:message) do
+        build(
+          :message,
+          conversation: conversation,
+          account: account,
+          content: "hey (mention://user/#{second_agent.id}/#{second_agent.name}) " \
+                   "and (mention://user/#{first_agent.id}/#{first_agent.name}), please look into this?",
+          private: true
+        )
+      end
+
+      it 'creates notifications for all mentioned inbox members' do
+        described_class.new(message: message).perform
+
+        expect(NotificationBuilder).to have_received(:new).with(
+          notification_type: 'conversation_mention',
+          user: second_agent,
+          account: account,
+          primary_actor: message.conversation,
+          secondary_actor: message
+        )
+        expect(NotificationBuilder).to have_received(:new).with(
+          notification_type: 'conversation_mention',
+          user: first_agent,
+          account: account,
+          primary_actor: message.conversation,
+          secondary_actor: message
+        )
+      end
+
+      it 'adds all mentioned users to the participants list' do
+        described_class.new(message: message).perform
+        expect(conversation.conversation_participants.map(&:user_id)).to contain_exactly(first_agent.id, second_agent.id)
+      end
+
+      it 'passes unique user IDs to UserMentionJob' do
+        described_class.new(message: message).perform
+        expect(Conversations::UserMentionJob).to have_received(:perform_later).with(
+          contain_exactly(first_agent.id.to_s, second_agent.id.to_s),
+          conversation.id,
+          account.id
+        )
+      end
+    end
+
+    context 'when mentioned user is not an inbox member' do
+      let!(:non_member_user) { create(:user, account: account) }
+
+      it 'does not create notifications for non-inbox members' do
+        message = build(
+          :message,
+          conversation: conversation,
+          account: account,
+          content: "hi (mention://user/#{non_member_user.id}/#{non_member_user.name})",
+          private: true
+        )
+
+        described_class.new(message: message).perform
+
+        expect(NotificationBuilder).not_to have_received(:new)
+        expect(Conversations::UserMentionJob).not_to have_received(:perform_later)
+      end
+    end
+
+    context 'when mentioned user is an admin' do
+      it 'creates notifications for admin users even if not inbox members' do
+        message = build(
+          :message,
+          conversation: conversation,
+          account: account,
+          content: "hi (mention://user/#{admin_user.id}/#{admin_user.name})",
+          private: true
+        )
+
+        described_class.new(message: message).perform
+
+        expect(NotificationBuilder).to have_received(:new).with(
+          notification_type: 'conversation_mention',
+          user: admin_user,
+          account: account,
+          primary_actor: message.conversation,
+          secondary_actor: message
+        )
+      end
+    end
+
+    context 'when same user is mentioned multiple times' do
+      it 'creates only one notification per user' do
+        message = build(
+          :message,
+          conversation: conversation,
+          account: account,
+          content: "hi (mention://user/#{first_agent.id}/#{first_agent.name}) and again (mention://user/#{first_agent.id}/#{first_agent.name})",
+          private: true
+        )
+
+        described_class.new(message: message).perform
+
+        expect(NotificationBuilder).to have_received(:new).once
+        expect(Conversations::UserMentionJob).to have_received(:perform_later).with(
+          [first_agent.id.to_s],
+          conversation.id,
+          account.id
+        )
+      end
+    end
+  end
+
+  describe 'team mentions' do
+    context 'when message contains single team mention' do
+      it 'creates notifications for all team members who are inbox members' do
+        message = build(
+          :message,
+          conversation: conversation,
+          account: account,
+          content: "hey (mention://team/#{team.id}/#{team.name}) please help",
+          private: true
+        )
+
+        described_class.new(message: message).perform
+
+        expect(NotificationBuilder).to have_received(:new).with(
+          notification_type: 'conversation_mention',
+          user: first_agent,
+          account: account,
+          primary_actor: message.conversation,
+          secondary_actor: message
+        )
+        expect(NotificationBuilder).to have_received(:new).with(
+          notification_type: 'conversation_mention',
+          user: second_agent,
+          account: account,
+          primary_actor: message.conversation,
+          secondary_actor: message
+        )
+      end
+
+      it 'adds all team members as conversation participants' do
+        message = build(
+          :message,
+          conversation: conversation,
+          account: account,
+          content: "hey (mention://team/#{team.id}/#{team.name}) please help",
+          private: true
+        )
+
+        described_class.new(message: message).perform
+
+        expect(conversation.conversation_participants.map(&:user_id)).to contain_exactly(first_agent.id, second_agent.id)
+      end
+
+      it 'passes team member IDs to UserMentionJob' do
+        message = build(
+          :message,
+          conversation: conversation,
+          account: account,
+          content: "hey (mention://team/#{team.id}/#{team.name}) please help",
+          private: true
+        )
+
+        described_class.new(message: message).perform
+
+        expect(Conversations::UserMentionJob).to have_received(:perform_later).with(
+          contain_exactly(first_agent.id.to_s, second_agent.id.to_s),
+          conversation.id,
+          account.id
+        )
+      end
+    end
+
+    context 'when team has members who are not inbox members' do
+      let!(:non_inbox_team_member) { create(:user, account: account) }
+
+      before do
+        create(:team_member, user: non_inbox_team_member, team: team)
+      end
+
+      it 'only notifies team members who are also inbox members' do
+        message = build(
+          :message,
+          conversation: conversation,
+          account: account,
+          content: "hey (mention://team/#{team.id}/#{team.name}) please help",
+          private: true
+        )
+
+        described_class.new(message: message).perform
+
+        expect(NotificationBuilder).to have_received(:new).with(
+          notification_type: 'conversation_mention', user: first_agent, account: account,
+          primary_actor: message.conversation, secondary_actor: message
+        )
+        expect(NotificationBuilder).to have_received(:new).with(
+          notification_type: 'conversation_mention', user: second_agent, account: account,
+          primary_actor: message.conversation, secondary_actor: message
+        )
+        expect(NotificationBuilder).not_to have_received(:new).with(
+          notification_type: 'conversation_mention', user: non_inbox_team_member, account: account,
+          primary_actor: message.conversation, secondary_actor: message
+        )
+      end
+    end
+
+    context 'when team has admin members' do
+      before do
+        create(:team_member, user: admin_user, team: team)
+      end
+
+      it 'includes admin team members in notifications' do
+        message = build(
+          :message,
+          conversation: conversation,
+          account: account,
+          content: "hey (mention://team/#{team.id}/#{team.name}) please help",
+          private: true
+        )
+
+        described_class.new(message: message).perform
+
+        expect(NotificationBuilder).to have_received(:new).with(
+          notification_type: 'conversation_mention',
+          user: admin_user,
+          account: account,
+          primary_actor: message.conversation,
+          secondary_actor: message
+        )
+      end
+    end
+
+    context 'when team is empty' do
+      it 'does not create any notifications for empty teams' do
+        message = build(
+          :message,
+          conversation: conversation,
+          account: account,
+          content: "hey (mention://team/#{empty_team.id}/#{empty_team.name}) please help",
+          private: true
+        )
+
+        described_class.new(message: message).perform
+
+        expect(NotificationBuilder).not_to have_received(:new)
+        expect(Conversations::UserMentionJob).not_to have_received(:perform_later)
+      end
+    end
+
+    context 'when team does not exist' do
+      it 'does not create notifications for non-existent teams' do
+        message = build(
+          :message,
+          conversation: conversation,
+          account: account,
+          content: 'hey (mention://team/99999/NonExistentTeam) please help',
+          private: true
+        )
+
+        described_class.new(message: message).perform
+
+        expect(NotificationBuilder).not_to have_received(:new)
+        expect(Conversations::UserMentionJob).not_to have_received(:perform_later)
+      end
+    end
+
+    context 'when same team is mentioned multiple times' do
+      it 'creates only one notification per team member' do
+        message = build(
+          :message,
+          conversation: conversation,
+          account: account,
+          content: "hey (mention://team/#{team.id}/#{team.name}) and again (mention://team/#{team.id}/#{team.name})",
+          private: true
+        )
+
+        described_class.new(message: message).perform
+
+        expect(NotificationBuilder).to have_received(:new).exactly(2).times
+        expect(Conversations::UserMentionJob).to have_received(:perform_later).with(
+          contain_exactly(first_agent.id.to_s, second_agent.id.to_s),
+          conversation.id,
+          account.id
+        )
+      end
+    end
+  end
+
+  describe 'mixed user and team mentions' do
+    context 'when message contains both user and team mentions' do
+      it 'creates notifications for both individual users and team members' do
+        message = build(
+          :message,
+          conversation: conversation,
+          account: account,
+          content: "hey (mention://user/#{third_agent.id}/#{third_agent.name}) and (mention://team/#{team.id}/#{team.name})",
+          private: true
+        )
+
+        # Make third_agent an inbox member
+        create(:inbox_member, user: third_agent, inbox: inbox)
+
+        described_class.new(message: message).perform
+
+        expect(NotificationBuilder).to have_received(:new).with(
+          notification_type: 'conversation_mention', user: third_agent, account: account,
+          primary_actor: message.conversation, secondary_actor: message
+        )
+        expect(NotificationBuilder).to have_received(:new).with(
+          notification_type: 'conversation_mention', user: first_agent, account: account,
+          primary_actor: message.conversation, secondary_actor: message
+        )
+        expect(NotificationBuilder).to have_received(:new).with(
+          notification_type: 'conversation_mention', user: second_agent, account: account,
+          primary_actor: message.conversation, secondary_actor: message
+        )
+      end
+
+      it 'avoids duplicate notifications when user is mentioned directly and via team' do
+        message = build(
+          :message,
+          conversation: conversation,
+          account: account,
+          content: "hey (mention://user/#{first_agent.id}/#{first_agent.name}) and (mention://team/#{team.id}/#{team.name})",
+          private: true
+        )
+
+        described_class.new(message: message).perform
+
+        # first_agent should only receive one notification despite being mentioned directly and via team
+        expect(NotificationBuilder).to have_received(:new).with(
+          notification_type: 'conversation_mention',
+          user: first_agent,
+          account: account,
+          primary_actor: message.conversation,
+          secondary_actor: message
+        ).once
+        expect(NotificationBuilder).to have_received(:new).with(
+          notification_type: 'conversation_mention',
+          user: second_agent,
+          account: account,
+          primary_actor: message.conversation,
+          secondary_actor: message
+        ).once
+      end
+    end
+  end
+
+  describe 'cross-account validation' do
+    let!(:other_account) { create(:account) }
+    let!(:other_team) { create(:team, account: other_account) }
+    let!(:other_user) { create(:user, account: other_account) }
+
+    before do
+      create(:team_member, user: other_user, team: other_team)
+    end
+
+    it 'does not process mentions for teams from other accounts' do
       message = build(
         :message,
         conversation: conversation,
         account: account,
-        content: "hi [#{first_agent.name}](mention://user/#{first_agent.id}/#{first_agent.name})",
+        content: "hey (mention://team/#{other_team.id}/#{other_team.name})",
         private: true
       )
 
       described_class.new(message: message).perform
 
-      expect(NotificationBuilder).to have_received(:new).with(notification_type: 'conversation_mention',
-                                                              user: first_agent,
-                                                              account: account,
-                                                              primary_actor: message.conversation,
-                                                              secondary_actor: message)
+      expect(NotificationBuilder).not_to have_received(:new)
+      expect(Conversations::UserMentionJob).not_to have_received(:perform_later)
     end
-  end
 
-  context 'when message contains multiple mentions' do
-    let(:message) do
-      build(
+    it 'does not process mentions for users from other accounts' do
+      message = build(
         :message,
         conversation: conversation,
         account: account,
-        content: "hey [#{second_agent.name}](mention://user/#{second_agent.id}/#{second_agent.name})/
-                  [#{first_agent.name}](mention://user/#{first_agent.id}/#{first_agent.name}),
-                   please look in to this?",
+        content: "hey (mention://user/#{other_user.id}/#{other_user.name})",
         private: true
       )
-    end
 
-    it 'creates notifications for inbox member who was mentioned' do
       described_class.new(message: message).perform
 
-      expect(NotificationBuilder).to have_received(:new).with(notification_type: 'conversation_mention',
-                                                              user: second_agent,
-                                                              account: account,
-                                                              primary_actor: message.conversation,
-                                                              secondary_actor: message)
-      expect(NotificationBuilder).to have_received(:new).with(notification_type: 'conversation_mention',
-                                                              user: first_agent,
-                                                              account: account,
-                                                              primary_actor: message.conversation,
-                                                              secondary_actor: message)
-    end
-
-    it 'add the users to the participants list' do
-      described_class.new(message: message).perform
-      expect(conversation.conversation_participants.map(&:user_id)).to contain_exactly(first_agent.id, second_agent.id)
+      expect(NotificationBuilder).not_to have_received(:new)
+      expect(Conversations::UserMentionJob).not_to have_received(:perform_later)
     end
   end
 end