diff --git a/app/javascript/dashboard/components-next/Campaigns/CampaignCard/CampaignCard.vue b/app/javascript/dashboard/components-next/Campaigns/CampaignCard/CampaignCard.vue
index 304e55347..05507fc89 100644
--- a/app/javascript/dashboard/components-next/Campaigns/CampaignCard/CampaignCard.vue
+++ b/app/javascript/dashboard/components-next/Campaigns/CampaignCard/CampaignCard.vue
@@ -76,8 +76,8 @@ const campaignStatus = computed(() => {
 const inboxName = computed(() => props.inbox?.name || '');
 
 const inboxIcon = computed(() => {
-  const { phone_number: phoneNumber, channel_type: type } = props.inbox;
-  return getInboxIconByType(type, phoneNumber);
+  const { medium, channel_type: type } = props.inbox;
+  return getInboxIconByType(type, medium);
 });
 </script>
 
diff --git a/app/javascript/dashboard/components-next/Conversation/ConversationCard/ConversationCard.vue b/app/javascript/dashboard/components-next/Conversation/ConversationCard/ConversationCard.vue
index 36f611775..f9a2507a1 100644
--- a/app/javascript/dashboard/components-next/Conversation/ConversationCard/ConversationCard.vue
+++ b/app/javascript/dashboard/components-next/Conversation/ConversationCard/ConversationCard.vue
@@ -48,8 +48,8 @@ const inbox = computed(() => props.stateInbox);
 const inboxName = computed(() => inbox.value?.name);
 
 const inboxIcon = computed(() => {
-  const { phoneNumber, channelType } = inbox.value;
-  return getInboxIconByType(channelType, phoneNumber);
+  const { channelType, medium } = inbox.value;
+  return getInboxIconByType(channelType, medium);
 });
 
 const lastActivityAt = computed(() => {
diff --git a/app/javascript/dashboard/components-next/Inbox/InboxCard.vue b/app/javascript/dashboard/components-next/Inbox/InboxCard.vue
index 90cc1ff53..958f25048 100644
--- a/app/javascript/dashboard/components-next/Inbox/InboxCard.vue
+++ b/app/javascript/dashboard/components-next/Inbox/InboxCard.vue
@@ -49,8 +49,8 @@ const isUnread = computed(() => !props.inboxItem?.readAt);
 const inbox = computed(() => props.stateInbox);
 
 const inboxIcon = computed(() => {
-  const { phoneNumber, channelType } = inbox.value;
-  return getInboxIconByType(channelType, phoneNumber);
+  const { channelType, medium } = inbox.value;
+  return getInboxIconByType(channelType, medium);
 });
 
 const hasSlaThreshold = computed(() => {
diff --git a/app/javascript/dashboard/components-next/NewConversation/helpers/composeConversationHelper.js b/app/javascript/dashboard/components-next/NewConversation/helpers/composeConversationHelper.js
index 57e819245..cb79752f7 100644
--- a/app/javascript/dashboard/components-next/NewConversation/helpers/composeConversationHelper.js
+++ b/app/javascript/dashboard/components-next/NewConversation/helpers/composeConversationHelper.js
@@ -36,10 +36,11 @@ const transformInbox = ({
   email,
   channelType,
   phoneNumber,
+  medium,
   ...rest
 }) => ({
   id,
-  icon: getInboxIconByType(channelType, phoneNumber, 'line'),
+  icon: getInboxIconByType(channelType, medium, 'line'),
   label: generateLabelForContactableInboxesList({
     name,
     email,
diff --git a/app/javascript/dashboard/components-next/avatar/Avatar.vue b/app/javascript/dashboard/components-next/avatar/Avatar.vue
index 08224995c..1b2ecbc05 100644
--- a/app/javascript/dashboard/components-next/avatar/Avatar.vue
+++ b/app/javascript/dashboard/components-next/avatar/Avatar.vue
@@ -183,7 +183,10 @@ watch(
 </script>
 
 <template>
-  <span class="relative inline-flex group/avatar z-0" :style="containerStyles">
+  <span
+    class="relative inline-flex group/avatar z-0 flex-shrink-0"
+    :style="containerStyles"
+  >
     <!-- Status Badge -->
     <slot name="badge" :size="size">
       <div
diff --git a/app/javascript/dashboard/components-next/captain/assistant/InboxCard.vue b/app/javascript/dashboard/components-next/captain/assistant/InboxCard.vue
index 30fe85b0a..f349720b0 100644
--- a/app/javascript/dashboard/components-next/captain/assistant/InboxCard.vue
+++ b/app/javascript/dashboard/components-next/captain/assistant/InboxCard.vue
@@ -57,9 +57,10 @@ const menuItems = computed(() => [
   },
 ]);
 
-const icon = computed(() =>
-  getInboxIconByType(props.inbox.channel_type, '', 'outline')
-);
+const icon = computed(() => {
+  const { medium, channel_type: type } = props.inbox;
+  return getInboxIconByType(type, medium, 'outline');
+});
 
 const handleAction = ({ action, value }) => {
   toggleDropdown(false);
diff --git a/app/javascript/dashboard/components/index.js b/app/javascript/dashboard/components/index.js
index 459a46963..eea44bdba 100644
--- a/app/javascript/dashboard/components/index.js
+++ b/app/javascript/dashboard/components/index.js
@@ -1,6 +1,5 @@
 // [NOTE][DEPRECATED] This method is to be deprecated, please do not add new components to this file.
 /* eslint no-plusplus: 0 */
-import AvatarUploader from './widgets/forms/AvatarUploader.vue';
 import Code from './Code.vue';
 import ColorPicker from './widgets/ColorPicker.vue';
 import ConfirmDeleteModal from './widgets/modal/ConfirmDeleteModal.vue';
@@ -18,11 +17,9 @@ import Modal from './Modal.vue';
 import Spinner from 'shared/components/Spinner.vue';
 import Tabs from './ui/Tabs/Tabs.vue';
 import TabsItem from './ui/Tabs/TabsItem.vue';
-import Thumbnail from './widgets/Thumbnail.vue';
 import DatePicker from './ui/DatePicker/DatePicker.vue';
 
 const WootUIKit = {
-  AvatarUploader,
   Code,
   ColorPicker,
   ConfirmDeleteModal,
@@ -40,7 +37,6 @@ const WootUIKit = {
   Spinner,
   Tabs,
   TabsItem,
-  Thumbnail,
   DatePicker,
   install(Vue) {
     const keys = Object.keys(this);
diff --git a/app/javascript/dashboard/components/widgets/Avatar.vue b/app/javascript/dashboard/components/widgets/Avatar.vue
deleted file mode 100644
index 9ccb87bf8..000000000
--- a/app/javascript/dashboard/components/widgets/Avatar.vue
+++ /dev/null
@@ -1,55 +0,0 @@
-<script>
-export default {
-  name: 'Avatar',
-  props: {
-    username: {
-      type: String,
-      default: '',
-    },
-    size: {
-      type: Number,
-      default: 40,
-    },
-  },
-  computed: {
-    style() {
-      return {
-        fontSize: `${Math.floor(this.size / 2.5)}px`,
-      };
-    },
-    userInitial() {
-      const parts = this.username.split(/[ -]/);
-      let initials = parts.reduce((acc, curr) => acc + curr.charAt(0), '');
-
-      if (initials.length > 2 && initials.search(/[A-Z]/) !== -1) {
-        initials = initials.replace(/[a-z]+/g, '');
-      }
-      initials = initials.substring(0, 2).toUpperCase();
-
-      return initials;
-    },
-  },
-};
-</script>
-
-<template>
-  <div class="avatar-container" :style="style" aria-hidden="true">
-    <slot>{{ userInitial }}</slot>
-  </div>
-</template>
-
-<style scoped>
-@tailwind components;
-@layer components {
-  .avatar-color {
-    background-image: linear-gradient(to top, #c2e1ff 0%, #d6ebff 100%);
-  }
-
-  .dark-avatar-color {
-    background-image: linear-gradient(to top, #135899 0%, #135899 100%);
-  }
-}
-.avatar-container {
-  @apply flex leading-[100%] font-medium items-center justify-center text-center cursor-default avatar-color dark:dark-avatar-color text-n-blue-text;
-}
-</style>
diff --git a/app/javascript/dashboard/components/widgets/Thumbnail.spec.js b/app/javascript/dashboard/components/widgets/Thumbnail.spec.js
deleted file mode 100644
index 1ea5e6cc6..000000000
--- a/app/javascript/dashboard/components/widgets/Thumbnail.spec.js
+++ /dev/null
@@ -1,48 +0,0 @@
-import { mount } from '@vue/test-utils';
-import Avatar from './Avatar.vue';
-import Thumbnail from './Thumbnail.vue';
-
-describe('Thumbnail.vue', () => {
-  it('should render the agent thumbnail if valid image is passed', () => {
-    const wrapper = mount(Thumbnail, {
-      propsData: {
-        src: 'https://some_valid_url.com',
-      },
-      data() {
-        return {
-          hasImageLoaded: true,
-          imgError: false,
-        };
-      },
-    });
-    expect(wrapper.find('.user-thumbnail').exists()).toBe(true);
-    const avatarComponent = wrapper.findComponent(Avatar);
-    expect(avatarComponent.isVisible()).toBe(false);
-  });
-
-  it('should render the avatar component if invalid image is passed', () => {
-    const wrapper = mount(Thumbnail, {
-      propsData: {
-        src: 'https://some_invalid_url.com',
-      },
-      data() {
-        return {
-          hasImageLoaded: true,
-          imgError: true,
-        };
-      },
-    });
-    expect(wrapper.find('#image').exists()).toBe(false);
-    const avatarComponent = wrapper.findComponent(Avatar);
-    expect(avatarComponent.isVisible()).toBe(true);
-  });
-
-  it('should the initial of the name if no image is passed', () => {
-    const wrapper = mount(Avatar, {
-      propsData: {
-        username: 'Angie Rojas',
-      },
-    });
-    expect(wrapper.find('div').text()).toBe('AR');
-  });
-});
diff --git a/app/javascript/dashboard/components/widgets/Thumbnail.vue b/app/javascript/dashboard/components/widgets/Thumbnail.vue
deleted file mode 100644
index 3111212aa..000000000
--- a/app/javascript/dashboard/components/widgets/Thumbnail.vue
+++ /dev/null
@@ -1,224 +0,0 @@
-<script>
-/**
- * Thumbnail Component
- * Src - source for round image
- * Size - Size of the thumbnail
- * Badge - Chat source indication { fb / telegram }
- * Username - Username for avatar
- */
-import Avatar from './Avatar.vue';
-import { removeEmoji } from 'shared/helpers/emoji';
-
-export default {
-  components: {
-    Avatar,
-  },
-  props: {
-    src: {
-      type: String,
-      default: '',
-    },
-    size: {
-      type: String,
-      default: '40px',
-    },
-    badge: {
-      type: String,
-      default: '',
-    },
-    username: {
-      type: String,
-      default: '',
-    },
-    status: {
-      type: String,
-      default: '',
-    },
-    hasBorder: {
-      type: Boolean,
-      default: false,
-    },
-    shouldShowStatusAlways: {
-      type: Boolean,
-      default: false,
-    },
-    title: {
-      type: String,
-      default: '',
-    },
-    variant: {
-      type: String,
-      default: 'circle',
-    },
-  },
-  data() {
-    return {
-      hasImageLoaded: false,
-      imgError: false,
-    };
-  },
-  computed: {
-    userNameWithoutEmoji() {
-      return removeEmoji(this.username);
-    },
-    showStatusIndicator() {
-      if (this.shouldShowStatusAlways) return true;
-      return this.status === 'online' || this.status === 'busy';
-    },
-    avatarSize() {
-      return Number(this.size.replace(/\D+/g, ''));
-    },
-    badgeSrc() {
-      return {
-        instagram_direct_message: 'instagram-dm',
-        facebook: 'messenger',
-        'twitter-tweet': 'twitter-tweet',
-        'twitter-dm': 'twitter-dm',
-        whatsapp: 'whatsapp',
-        sms: 'sms',
-        'Channel::Line': 'line',
-        'Channel::Telegram': 'telegram',
-        'Channel::WebWidget': '',
-      }[this.badge];
-    },
-    badgeStyle() {
-      const size = Math.floor(this.avatarSize / 3);
-      const badgeSize = `${size + 2}px`;
-      const borderRadius = `${size / 2}px`;
-      return { width: badgeSize, height: badgeSize, borderRadius };
-    },
-    statusStyle() {
-      const statusSize = `${this.avatarSize / 4}px`;
-      return { width: statusSize, height: statusSize };
-    },
-    thumbnailClass() {
-      const className = this.hasBorder
-        ? 'border border-solid border-white dark:border-n-weak'
-        : '';
-      const variant =
-        this.variant === 'circle' ? 'thumbnail-rounded' : 'thumbnail-square';
-      return `user-thumbnail ${className} ${variant}`;
-    },
-    thumbnailBoxClass() {
-      const boxClass = this.variant === 'circle' ? 'is-rounded' : '';
-      return `user-thumbnail-box ${boxClass}`;
-    },
-    shouldShowImage() {
-      if (!this.src) {
-        return false;
-      }
-      if (this.hasImageLoaded) {
-        return !this.imgError;
-      }
-      return false;
-    },
-  },
-  watch: {
-    src(value, oldValue) {
-      if (value !== oldValue && this.imgError) {
-        this.imgError = false;
-      }
-    },
-  },
-  methods: {
-    onImgError() {
-      this.imgError = true;
-    },
-    onImgLoad() {
-      this.hasImageLoaded = true;
-    },
-  },
-};
-</script>
-
-<template>
-  <div
-    :class="thumbnailBoxClass"
-    :style="{ height: size, width: size }"
-    :title="title"
-  >
-    <!-- Using v-show instead of v-if to avoid flickering as v-if removes dom elements.  -->
-    <slot>
-      <img
-        v-show="shouldShowImage"
-        :src="src"
-        draggable="false"
-        :class="thumbnailClass"
-        @load="onImgLoad"
-        @error="onImgError"
-      />
-      <Avatar
-        v-show="!shouldShowImage"
-        :username="userNameWithoutEmoji"
-        :class="thumbnailClass"
-        :size="avatarSize"
-      />
-    </slot>
-    <img
-      v-if="badgeSrc"
-      class="source-badge z-20"
-      :style="badgeStyle"
-      :src="`/integrations/channels/badges/${badgeSrc}.png`"
-      alt="Badge"
-    />
-    <div
-      v-if="showStatusIndicator"
-      class="z-20"
-      :class="`source-badge user-online-status user-online-status--${status}`"
-      :style="statusStyle"
-    />
-  </div>
-</template>
-
-<style lang="scss" scoped>
-.user-thumbnail-box {
-  flex: 0 0 auto;
-  max-width: 100%;
-  position: relative;
-
-  &.is-rounded {
-    border-radius: 50%;
-  }
-
-  .user-thumbnail {
-    border-radius: 50%;
-    &.thumbnail-square {
-      border-radius: 0.5625rem;
-    }
-    height: 100%;
-    width: 100%;
-    box-sizing: border-box;
-    object-fit: cover;
-    vertical-align: initial;
-  }
-
-  .source-badge {
-    border-radius: 0.1875rem;
-    bottom: -0.125rem;
-    box-shadow: 0 1px 2px 0 rgba(0, 0, 0, 0.05);
-    position: absolute;
-    right: 0;
-    @apply bg-n-background p-0.5 size-3;
-  }
-
-  .user-online-status {
-    @apply bottom-0.5 rounded-full;
-
-    &:after {
-      content: ' ';
-    }
-  }
-
-  .user-online-status--online {
-    @apply bg-n-teal-10;
-  }
-
-  .user-online-status--busy {
-    @apply bg-n-amber-10;
-  }
-
-  .user-online-status--offline {
-    @apply bg-n-slate-10;
-  }
-}
-</style>
diff --git a/app/javascript/dashboard/components/widgets/ThumbnailGroup.vue b/app/javascript/dashboard/components/widgets/ThumbnailGroup.vue
index e25025e17..6f43a7a94 100644
--- a/app/javascript/dashboard/components/widgets/ThumbnailGroup.vue
+++ b/app/javascript/dashboard/components/widgets/ThumbnailGroup.vue
@@ -1,78 +1,69 @@
-<script>
-import Thumbnail from './Thumbnail.vue';
+<script setup>
+import { computed } from 'vue';
+import Avatar from 'next/avatar/Avatar.vue';
 
-export default {
-  components: {
-    Thumbnail,
+const props = defineProps({
+  usersList: {
+    type: Array,
+    default: () => [],
   },
-  props: {
-    usersList: {
-      type: Array,
-      default: () => [],
-    },
-    size: {
-      type: String,
-      default: '24px',
-    },
-    showMoreThumbnailsCount: {
-      type: Boolean,
-      default: false,
-    },
-    moreThumbnailsText: {
-      type: String,
-      default: '',
-    },
-    gap: {
-      type: String,
-      default: 'normal',
-      validator(value) {
-        // The value must match one of these strings
-        return ['normal', '', 'tight'].includes(value);
-      },
+  size: {
+    type: Number,
+    default: 24,
+  },
+  showMoreThumbnailsCount: {
+    type: Boolean,
+    default: false,
+  },
+  moreThumbnailsText: {
+    type: String,
+    default: '',
+  },
+  gap: {
+    type: String,
+    default: 'normal',
+    validator(value) {
+      // The value must match one of these strings
+      return ['normal', 'tight'].includes(value);
     },
   },
-};
+});
+
+const gapClass = computed(() => {
+  if (props.gap === 'tight') {
+    return 'ltr:[&:not(:first-child)]:-ml-2 rtl:[&:not(:first-child)]:-mr-2';
+  }
+  return 'ltr:[&:not(:first-child)]:-ml-1 rtl:[&:not(:first-child)]:-mr-1';
+});
+
+const moreThumbnailsClass = computed(() => {
+  if (props.gap === 'tight') {
+    return 'ltr:-ml-2 rtl:-mr-2';
+  }
+  return 'ltr:-ml-1 rtl:-mr-1';
+});
 </script>
 
 <template>
-  <div class="overlapping-thumbnails">
-    <Thumbnail
+  <div class="flex">
+    <Avatar
       v-for="user in usersList"
       :key="user.id"
       v-tooltip="user.name"
       :title="user.name"
       :src="user.thumbnail"
-      :username="user.name"
-      has-border
+      :name="user.name"
       :size="size"
-      :class="`overlapping-thumbnail gap-${gap}`"
+      class="[&>span]:outline [&>span]:outline-1 [&>span]:outline-n-background [&>span]:shadow"
+      :class="gapClass"
+      rounded-full
     />
-    <span v-if="showMoreThumbnailsCount" class="thumbnail-more-text">
+    <span
+      v-if="showMoreThumbnailsCount"
+      class="text-n-slate-11 bg-n-slate-4 outline outline-1 outline-n-background text-xs font-medium rounded-full px-2 inline-flex items-center shadow relative"
+      :class="moreThumbnailsClass"
+    >
       {{ moreThumbnailsText }}
     </span>
   </div>
 </template>
-
-<style lang="scss" scoped>
-.overlapping-thumbnails {
-  display: flex;
-}
-
-.overlapping-thumbnail {
-  position: relative;
-  box-shadow: 0 1px 2px 0 rgba(0, 0, 0, 0.05);
-
-  &:not(:first-child) {
-    margin-left: -0.25rem;
-  }
-
-  .gap-tight {
-    margin-left: -0.5rem;
-  }
-}
-
-.thumbnail-more-text {
-  box-shadow: 0 1px 2px 0 rgba(0, 0, 0, 0.05);
-  @apply text-n-slate-11 bg-n-slate-4 border border-n-weak text-xs font-medium rounded-full px-2 ltr:-ml-2 rtl:-mr-2 inline-flex items-center relative;
-}
-</style>
diff --git a/app/javascript/dashboard/components/widgets/UserAvatarWithName.vue b/app/javascript/dashboard/components/widgets/UserAvatarWithName.vue
index f91f96711..59129de91 100644
--- a/app/javascript/dashboard/components/widgets/UserAvatarWithName.vue
+++ b/app/javascript/dashboard/components/widgets/UserAvatarWithName.vue
@@ -1,5 +1,5 @@
 <script setup>
-import Thumbnail from 'dashboard/components/widgets/Thumbnail.vue';
+import Avatar from 'next/avatar/Avatar.vue';
 
 defineProps({
   user: {
@@ -7,8 +7,8 @@ defineProps({
     default: () => ({}),
   },
   size: {
-    type: String,
-    default: '20px',
+    type: Number,
+    default: 20,
   },
   textClass: {
     type: String,
@@ -19,11 +19,13 @@ defineProps({
 
 <template>
   <div class="flex items-center gap-1.5 text-left">
-    <Thumbnail
+    <Avatar
       :src="user.thumbnail"
       :size="size"
-      :username="user.name"
+      :name="user.name"
       :status="user.availability_status"
+      hide-offline-status
+      rounded-full
     />
     <span class="my-0 truncate text-capitalize" :class="textClass">
       {{ user.name }}
diff --git a/app/javascript/dashboard/components/widgets/conversation/ConversationHeader.vue b/app/javascript/dashboard/components/widgets/conversation/ConversationHeader.vue
index cdcbd64b5..d6949715f 100644
--- a/app/javascript/dashboard/components/widgets/conversation/ConversationHeader.vue
+++ b/app/javascript/dashboard/components/widgets/conversation/ConversationHeader.vue
@@ -6,7 +6,7 @@ import { useElementSize } from '@vueuse/core';
 import BackButton from '../BackButton.vue';
 import InboxName from '../InboxName.vue';
 import MoreActions from './MoreActions.vue';
-import Thumbnail from '../Thumbnail.vue';
+import Avatar from 'next/avatar/Avatar.vue';
 import SLACardLabel from './components/SLACardLabel.vue';
 import wootConstants from 'dashboard/constants/globals';
 import { conversationListPageURL } from 'dashboard/helper/URLHelper';
@@ -105,12 +105,13 @@ const hasSlaPolicyId = computed(() => props.chat?.sla_policy_id);
         :back-url="backButtonUrl"
         class="ltr:mr-2 rtl:ml-2"
       />
-      <Thumbnail
+      <Avatar
+        :name="currentContact.name"
         :src="currentContact.thumbnail"
-        :username="currentContact.name"
+        :size="32"
         :status="currentContact.availability_status"
-        size="32px"
-        class="flex-shrink-0"
+        hide-offline-status
+        rounded-full
       />
       <div
         class="flex flex-col items-start min-w-0 ml-2 overflow-hidden rtl:ml-0 rtl:mr-2"
diff --git a/app/javascript/dashboard/components/widgets/conversation/components/GalleryView.vue b/app/javascript/dashboard/components/widgets/conversation/components/GalleryView.vue
index 152f3c0a1..aa17dabf9 100644
--- a/app/javascript/dashboard/components/widgets/conversation/components/GalleryView.vue
+++ b/app/javascript/dashboard/components/widgets/conversation/components/GalleryView.vue
@@ -10,7 +10,7 @@ import { messageTimestamp } from 'shared/helpers/timeHelper';
 import { downloadFile } from '@chatwoot/utils';
 
 import NextButton from 'dashboard/components-next/button/Button.vue';
-import Thumbnail from 'dashboard/components/widgets/Thumbnail.vue';
+import Avatar from 'next/avatar/Avatar.vue';
 import TeleportWithDirection from 'dashboard/components-next/TeleportWithDirection.vue';
 
 const props = defineProps({
@@ -186,10 +186,12 @@ onMounted(() => {
             v-if="senderDetails"
             class="flex items-center min-w-[15rem] shrink-0"
           >
-            <Thumbnail
+            <Avatar
               v-if="senderDetails.avatar"
-              :username="senderDetails.name"
+              :name="senderDetails.name"
               :src="senderDetails.avatar"
+              :size="40"
+              rounded-full
               class="flex-shrink-0"
             />
             <div class="flex flex-col ml-2 rtl:ml-0 rtl:mr-2 overflow-hidden">
diff --git a/app/javascript/dashboard/components/widgets/conversation/conversation/LabelSuggestion.vue b/app/javascript/dashboard/components/widgets/conversation/conversation/LabelSuggestion.vue
index 6b4397ff9..15398a3da 100644
--- a/app/javascript/dashboard/components/widgets/conversation/conversation/LabelSuggestion.vue
+++ b/app/javascript/dashboard/components/widgets/conversation/conversation/LabelSuggestion.vue
@@ -1,7 +1,7 @@
 <script>
 // components
 import NextButton from 'dashboard/components-next/button/Button.vue';
-import Avatar from '../../Avatar.vue';
+import Avatar from 'dashboard/components-next/avatar/Avatar.vue';
 
 // composables
 import { useAI } from 'dashboard/composables/useAI';
@@ -226,18 +226,16 @@ export default {
         </div>
       </div>
       <div class="sender--info has-tooltip" data-original-title="null">
-        <woot-thumbnail
+        <Avatar
           v-tooltip.top="{
             content: $t('LABEL_MGMT.SUGGESTIONS.POWERED_BY'),
             delay: { show: 600, hide: 0 },
             hideOnClick: true,
           }"
-          size="16px"
-        >
-          <Avatar class="user-thumbnail thumbnail-rounded">
-            <fluent-icon class="chatwoot-ai-icon" icon="chatwoot-ai" />
-          </Avatar>
-        </woot-thumbnail>
+          :size="16"
+          name="chatwoot-ai"
+          icon-name="i-lucide-sparkles"
+        />
       </div>
     </div>
   </li>
@@ -268,11 +266,6 @@ export default {
     }
   }
 
-  .chatwoot-ai-icon {
-    height: 0.75rem;
-    width: 0.75rem;
-  }
-
   .label-suggestion--title {
     @apply text-n-slate-11 mt-0.5 text-xxs;
   }
diff --git a/app/javascript/dashboard/components/widgets/conversation/conversationBulkActions/AgentSelector.vue b/app/javascript/dashboard/components/widgets/conversation/conversationBulkActions/AgentSelector.vue
index f4f38cbb1..1a7129e62 100644
--- a/app/javascript/dashboard/components/widgets/conversation/conversationBulkActions/AgentSelector.vue
+++ b/app/javascript/dashboard/components/widgets/conversation/conversationBulkActions/AgentSelector.vue
@@ -1,12 +1,12 @@
 <script>
 import { mapGetters } from 'vuex';
-import Thumbnail from 'dashboard/components/widgets/Thumbnail.vue';
+import Avatar from 'next/avatar/Avatar.vue';
 import Spinner from 'shared/components/Spinner.vue';
 import NextButton from 'dashboard/components-next/button/Button.vue';
 
 export default {
   components: {
-    Thumbnail,
+    Avatar,
     Spinner,
     NextButton,
   },
@@ -123,11 +123,13 @@ export default {
           </li>
           <li v-for="agent in filteredAgents" :key="agent.id">
             <div class="agent-list-item" @click="assignAgent(agent)">
-              <Thumbnail
+              <Avatar
+                :name="agent.name"
                 :src="agent.thumbnail"
                 :status="agent.availability_status"
-                :username="agent.name"
-                size="22px"
+                :size="22"
+                hide-offline-status
+                rounded-full
               />
               <span class="my-0 text-n-slate-12">
                 {{ agent.name }}
diff --git a/app/javascript/dashboard/components/widgets/forms/AvatarUploader.vue b/app/javascript/dashboard/components/widgets/forms/AvatarUploader.vue
deleted file mode 100644
index 23006183e..000000000
--- a/app/javascript/dashboard/components/widgets/forms/AvatarUploader.vue
+++ /dev/null
@@ -1,76 +0,0 @@
-<script>
-import NextButton from 'dashboard/components-next/button/Button.vue';
-
-export default {
-  components: {
-    NextButton,
-  },
-  props: {
-    label: {
-      type: String,
-      default: '',
-    },
-    src: {
-      type: String,
-      default: '',
-    },
-    usernameAvatar: {
-      type: String,
-      default: '',
-    },
-    deleteAvatar: {
-      type: Boolean,
-      default: false,
-    },
-  },
-  emits: ['onAvatarSelect', 'onAvatarDelete'],
-  watch: {},
-  methods: {
-    handleImageUpload(event) {
-      const [file] = event.target.files;
-
-      this.$emit('onAvatarSelect', {
-        file,
-        url: file ? URL.createObjectURL(file) : null,
-      });
-    },
-    onAvatarDelete() {
-      this.$refs.file.value = null;
-      this.$emit('onAvatarDelete');
-    },
-  },
-};
-</script>
-
-<template>
-  <div>
-    <label>
-      <span v-if="label">{{ label }}</span>
-    </label>
-    <woot-thumbnail
-      v-if="src"
-      size="80px"
-      :src="src"
-      :username="usernameAvatar"
-    />
-    <div v-if="src && deleteAvatar" class="my-1">
-      <NextButton
-        outline
-        xs
-        ruby
-        :label="$t('INBOX_MGMT.DELETE.AVATAR_DELETE_BUTTON_TEXT')"
-        @click="onAvatarDelete"
-      />
-    </div>
-    <label>
-      <input
-        id="file"
-        ref="file"
-        type="file"
-        accept="image/png, image/jpeg, image/jpg, image/gif, image/webp"
-        @change="handleImageUpload"
-      />
-      <slot />
-    </label>
-  </div>
-</template>
diff --git a/app/javascript/dashboard/helper/inbox.js b/app/javascript/dashboard/helper/inbox.js
index ca880a79b..501375ab7 100644
--- a/app/javascript/dashboard/helper/inbox.js
+++ b/app/javascript/dashboard/helper/inbox.js
@@ -139,14 +139,14 @@ export const getInboxClassByType = (type, phoneNumber) => {
   }
 };
 
-export const getInboxIconByType = (type, phoneNumber, variant = 'fill') => {
+export const getInboxIconByType = (type, medium, variant = 'fill') => {
   const iconMap =
     variant === 'fill' ? INBOX_ICON_MAP_FILL : INBOX_ICON_MAP_LINE;
   const defaultIcon =
     variant === 'fill' ? DEFAULT_ICON_FILL : DEFAULT_ICON_LINE;
 
   // Special case for Twilio (whatsapp and sms)
-  if (type === INBOX_TYPES.TWILIO && phoneNumber?.startsWith('whatsapp')) {
+  if (type === INBOX_TYPES.TWILIO && medium === 'whatsapp') {
     return iconMap[INBOX_TYPES.WHATSAPP];
   }
 
diff --git a/app/javascript/dashboard/helper/specs/inbox.spec.js b/app/javascript/dashboard/helper/specs/inbox.spec.js
index 0d5625603..76ce96fc8 100644
--- a/app/javascript/dashboard/helper/specs/inbox.spec.js
+++ b/app/javascript/dashboard/helper/specs/inbox.spec.js
@@ -112,13 +112,13 @@ describe('#Inbox Helpers', () => {
     describe('Twilio cases', () => {
       describe('fill variant', () => {
         it('returns WhatsApp icon for Twilio WhatsApp number', () => {
-          expect(
-            getInboxIconByType(INBOX_TYPES.TWILIO, 'whatsapp:+1234567890')
-          ).toBe('i-ri-whatsapp-fill');
+          expect(getInboxIconByType(INBOX_TYPES.TWILIO, 'whatsapp')).toBe(
+            'i-ri-whatsapp-fill'
+          );
         });
 
         it('returns SMS icon for regular Twilio number', () => {
-          expect(getInboxIconByType(INBOX_TYPES.TWILIO, '+1234567890')).toBe(
+          expect(getInboxIconByType(INBOX_TYPES.TWILIO, 'sms')).toBe(
             'i-ri-chat-1-fill'
           );
         });
@@ -133,18 +133,14 @@ describe('#Inbox Helpers', () => {
       describe('line variant', () => {
         it('returns WhatsApp line icon for Twilio WhatsApp number', () => {
           expect(
-            getInboxIconByType(
-              INBOX_TYPES.TWILIO,
-              'whatsapp:+1234567890',
-              'line'
-            )
+            getInboxIconByType(INBOX_TYPES.TWILIO, 'whatsapp', 'line')
           ).toBe('i-ri-whatsapp-line');
         });
 
         it('returns SMS line icon for regular Twilio number', () => {
-          expect(
-            getInboxIconByType(INBOX_TYPES.TWILIO, '+1234567890', 'line')
-          ).toBe('i-ri-chat-1-line');
+          expect(getInboxIconByType(INBOX_TYPES.TWILIO, 'sms', 'line')).toBe(
+            'i-ri-chat-1-line'
+          );
         });
       });
     });
diff --git a/app/javascript/dashboard/modules/contact/components/ContactDropdownItem.vue b/app/javascript/dashboard/modules/contact/components/ContactDropdownItem.vue
index f68cf9530..29f38f11f 100644
--- a/app/javascript/dashboard/modules/contact/components/ContactDropdownItem.vue
+++ b/app/javascript/dashboard/modules/contact/components/ContactDropdownItem.vue
@@ -1,38 +1,33 @@
-<script>
-import Thumbnail from '../../../components/widgets/Thumbnail.vue';
+<script setup>
+import Avatar from 'next/avatar/Avatar.vue';
 
-export default {
-  components: {
-    Thumbnail,
+defineProps({
+  name: {
+    type: String,
+    default: '',
   },
-  props: {
-    name: {
-      type: String,
-      default: '',
-    },
-    thumbnail: {
-      type: String,
-      default: '',
-    },
-    email: {
-      type: String,
-      default: '',
-    },
-    phoneNumber: {
-      type: String,
-      default: '',
-    },
-    identifier: {
-      type: [String, Number],
-      required: true,
-    },
+  thumbnail: {
+    type: String,
+    default: '',
   },
-};
+  email: {
+    type: String,
+    default: '',
+  },
+  phoneNumber: {
+    type: String,
+    default: '',
+  },
+  identifier: {
+    type: [String, Number],
+    required: true,
+  },
+});
 </script>
 
 <template>
   <div class="option-item--user">
-    <Thumbnail :src="thumbnail" size="28px" :username="name" />
+    <Avatar :src="thumbnail" :size="28" :name="name" rounded-full />
     <div class="option__user-data">
       <h5 class="option__title">
         {{ name }}
diff --git a/app/javascript/dashboard/modules/widget-preview/components/WidgetFooter.vue b/app/javascript/dashboard/modules/widget-preview/components/WidgetFooter.vue
index 224d9cf5b..6d9e19ac4 100644
--- a/app/javascript/dashboard/modules/widget-preview/components/WidgetFooter.vue
+++ b/app/javascript/dashboard/modules/widget-preview/components/WidgetFooter.vue
@@ -2,7 +2,7 @@
 import { ref, computed } from 'vue';
 import { useI18n } from 'vue-i18n';
 import ResizableTextArea from 'shared/components/ResizableTextArea.vue';
-import Thumbnail from 'dashboard/components/widgets/Thumbnail.vue';
+import Avatar from 'next/avatar/Avatar.vue';
 import FluentIcon from 'shared/components/FluentIcon/Index.vue';
 
 const props = defineProps({
@@ -40,7 +40,7 @@ const getStatusText = computed(() => {
             {{ config.replyTime }}
           </div>
         </div>
-        <Thumbnail username="C" size="34px" />
+        <Avatar name="C" :size="34" rounded-full />
       </div>
       <button
         v-if="config.isDefaultScreen"
diff --git a/app/javascript/dashboard/routes/dashboard/conversation/contact/ContactForm.vue b/app/javascript/dashboard/routes/dashboard/conversation/contact/ContactForm.vue
index 967d25912..4009d699c 100644
--- a/app/javascript/dashboard/routes/dashboard/conversation/contact/ContactForm.vue
+++ b/app/javascript/dashboard/routes/dashboard/conversation/contact/ContactForm.vue
@@ -10,10 +10,12 @@ import countries from 'shared/constants/countries.js';
 import { isPhoneNumberValid } from 'shared/helpers/Validators';
 import parsePhoneNumber from 'libphonenumber-js';
 import NextButton from 'dashboard/components-next/button/Button.vue';
+import Avatar from 'next/avatar/Avatar.vue';
 
 export default {
   components: {
     NextButton,
+    Avatar,
   },
   props: {
     contact: {
@@ -274,18 +276,19 @@ export default {
     class="w-full px-8 pt-6 pb-8 contact--form"
     @submit.prevent="handleSubmit"
   >
-    <div>
-      <div class="w-full">
-        <woot-avatar-uploader
-          :label="$t('CONTACT_FORM.FORM.AVATAR.LABEL')"
-          :src="avatarUrl"
-          :username-avatar="name"
-          :delete-avatar="!!avatarUrl"
-          class="settings-item"
-          @on-avatar-select="handleImageUpload"
-          @on-avatar-delete="handleAvatarDelete"
-        />
-      </div>
+    <div class="flex flex-col mb-4 items-start gap-1 w-full">
+      <label class="mb-0.5 text-sm font-medium text-n-slate-12">
+        {{ $t('CONTACT_FORM.FORM.AVATAR.LABEL') }}
+      </label>
+      <Avatar
+        :src="avatarUrl"
+        :size="72"
+        :name="contact.name"
+        allow-upload
+        rounded-full
+        @upload="handleImageUpload"
+        @delete="handleAvatarDelete"
+      />
     </div>
     <div>
       <div class="w-full">
diff --git a/app/javascript/dashboard/routes/dashboard/conversation/contact/ContactInfo.vue b/app/javascript/dashboard/routes/dashboard/conversation/contact/ContactInfo.vue
index b423ecfc6..327bc95ae 100644
--- a/app/javascript/dashboard/routes/dashboard/conversation/contact/ContactInfo.vue
+++ b/app/javascript/dashboard/routes/dashboard/conversation/contact/ContactInfo.vue
@@ -4,7 +4,7 @@ import { useAlert } from 'dashboard/composables';
 import { dynamicTime } from 'shared/helpers/timeHelper';
 import { useAdmin } from 'dashboard/composables/useAdmin';
 import ContactInfoRow from './ContactInfoRow.vue';
-import Thumbnail from 'dashboard/components/widgets/Thumbnail.vue';
+import Avatar from 'next/avatar/Avatar.vue';
 import SocialIcons from './SocialIcons.vue';
 import EditContact from './EditContact.vue';
 import ContactMergeModal from 'dashboard/modules/contact/ContactMergeModal.vue';
@@ -24,7 +24,7 @@ export default {
     NextButton,
     ContactInfoRow,
     EditContact,
-    Thumbnail,
+    Avatar,
     ComposeConversation,
     SocialIcons,
     ContactMergeModal,
@@ -179,12 +179,14 @@ export default {
   <div class="relative items-center w-full p-4">
     <div class="flex flex-col w-full gap-2 text-left rtl:text-right">
       <div class="flex flex-row justify-between">
-        <Thumbnail
+        <Avatar
           v-if="showAvatar"
           :src="contact.thumbnail"
-          size="48px"
-          :username="contact.name"
+          :name="contact.name"
           :status="contact.availability_status"
+          :size="48"
+          hide-offline-status
+          rounded-full
         />
       </div>
 
diff --git a/app/javascript/dashboard/routes/dashboard/notifications/components/NotificationTable.vue b/app/javascript/dashboard/routes/dashboard/notifications/components/NotificationTable.vue
index ce234cc54..7f5d3ce20 100644
--- a/app/javascript/dashboard/routes/dashboard/notifications/components/NotificationTable.vue
+++ b/app/javascript/dashboard/routes/dashboard/notifications/components/NotificationTable.vue
@@ -1,5 +1,5 @@
 <script>
-import Thumbnail from 'dashboard/components/widgets/Thumbnail.vue';
+import Avatar from 'next/avatar/Avatar.vue';
 import Spinner from 'shared/components/Spinner.vue';
 import EmptyState from 'dashboard/components/widgets/EmptyState.vue';
 import { dynamicTime } from 'shared/helpers/timeHelper';
@@ -8,7 +8,7 @@ import NextButton from 'dashboard/components-next/button/Button.vue';
 
 export default {
   components: {
-    Thumbnail,
+    Avatar,
     Spinner,
     EmptyState,
     NextButton,
@@ -107,11 +107,12 @@ export default {
             </span>
           </td>
           <td class="thumbnail--column">
-            <Thumbnail
+            <Avatar
               v-if="notificationItem.primary_actor.meta.assignee"
               :src="notificationItem.primary_actor.meta.assignee.thumbnail"
-              size="28px"
-              :username="notificationItem.primary_actor.meta.assignee.name"
+              :size="28"
+              :name="notificationItem.primary_actor.meta.assignee.name"
+              rounded-full
             />
           </td>
           <td>
diff --git a/app/javascript/dashboard/routes/dashboard/settings/agents/Index.vue b/app/javascript/dashboard/routes/dashboard/settings/agents/Index.vue
index bd44d9e7b..7cbfbea5b 100644
--- a/app/javascript/dashboard/routes/dashboard/settings/agents/Index.vue
+++ b/app/javascript/dashboard/routes/dashboard/settings/agents/Index.vue
@@ -1,7 +1,7 @@
 <script setup>
 import { useAlert } from 'dashboard/composables';
 import { computed, onMounted, ref } from 'vue';
-import Thumbnail from 'dashboard/components/widgets/Thumbnail.vue';
+import Avatar from 'next/avatar/Avatar.vue';
 import { useI18n } from 'vue-i18n';
 import {
   useStoreGetters,
@@ -164,11 +164,13 @@ const confirmDeletion = () => {
           <tr v-for="(agent, index) in agentList" :key="agent.email">
             <td class="py-4 ltr:pr-4 rtl:pl-4">
               <div class="flex flex-row items-center gap-4">
-                <Thumbnail
+                <Avatar
                   :src="agent.thumbnail"
-                  :username="agent.name"
-                  size="40px"
+                  :name="agent.name"
                   :status="agent.availability_status"
+                  :size="40"
+                  hide-offline-status
+                  rounded-full
                 />
                 <div>
                   <span class="block font-medium capitalize">
diff --git a/app/javascript/dashboard/routes/dashboard/settings/inbox/Index.vue b/app/javascript/dashboard/routes/dashboard/settings/inbox/Index.vue
index c4cf5f5ad..192174849 100644
--- a/app/javascript/dashboard/routes/dashboard/settings/inbox/Index.vue
+++ b/app/javascript/dashboard/routes/dashboard/settings/inbox/Index.vue
@@ -2,7 +2,7 @@
 import { computed, ref } from 'vue';
 import { useI18n } from 'vue-i18n';
 import { useAlert } from 'dashboard/composables';
-import Thumbnail from 'dashboard/components/widgets/Thumbnail.vue';
+import Avatar from 'next/avatar/Avatar.vue';
 import { useAdmin } from 'dashboard/composables/useAdmin';
 import SettingsLayout from '../SettingsLayout.vue';
 import BaseSettingsHeader from '../components/BaseSettingsHeader.vue';
@@ -101,16 +101,20 @@ const openDelete = inbox => {
           <tr v-for="inbox in inboxesList" :key="inbox.id">
             <td class="py-4 ltr:pr-4 rtl:pl-4">
               <div class="flex items-center flex-row gap-4">
-                <Thumbnail
+                <div
                   v-if="inbox.avatar_url"
-                  class="bg-n-alpha-3 rounded-full p-2 ring ring-n-solid-1 border border-n-strong shadow-sm"
-                  :src="inbox.avatar_url"
-                  :username="inbox.name"
-                  size="48px"
-                />
+                  class="bg-n-alpha-3 rounded-full size-12 p-2 ring ring-n-solid-1 border border-n-strong shadow-sm"
+                >
+                  <Avatar
+                    :src="inbox.avatar_url"
+                    :name="inbox.name"
+                    :size="30"
+                    rounded-full
+                  />
+                </div>
                 <div
                   v-else
-                  class="w-[48px] h-[48px] flex justify-center items-center bg-n-alpha-3 rounded-full p-2 ring ring-n-solid-1 border border-n-strong shadow-sm"
+                  class="size-12 flex justify-center items-center bg-n-alpha-3 rounded-full p-2 ring ring-n-solid-1 border border-n-strong shadow-sm"
                 >
                   <ChannelIcon class="size-5" :inbox="inbox" />
                 </div>
diff --git a/app/javascript/dashboard/routes/dashboard/settings/inbox/Settings.vue b/app/javascript/dashboard/routes/dashboard/settings/inbox/Settings.vue
index d69a59055..1db35af03 100644
--- a/app/javascript/dashboard/routes/dashboard/settings/inbox/Settings.vue
+++ b/app/javascript/dashboard/routes/dashboard/settings/inbox/Settings.vue
@@ -3,6 +3,7 @@ import { mapGetters } from 'vuex';
 import { shouldBeUrl } from 'shared/helpers/Validators';
 import { useAlert } from 'dashboard/composables';
 import { useVuelidate } from '@vuelidate/core';
+import Avatar from 'next/avatar/Avatar.vue';
 import SettingIntroBanner from 'dashboard/components/widgets/SettingIntroBanner.vue';
 import SettingsSection from '../../../../components/SettingsSection.vue';
 import inboxMixin from 'shared/mixins/inboxMixin';
@@ -25,6 +26,7 @@ import SenderNameExamplePreview from './components/SenderNameExamplePreview.vue'
 import NextButton from 'dashboard/components-next/button/Button.vue';
 import { INBOX_TYPES } from 'dashboard/helper/inbox';
 import { WIDGET_BUILDER_EDITOR_MENU_OPTIONS } from 'dashboard/constants/editor';
+import { getInboxIconByType } from 'dashboard/helper/inbox';
 import Editor from 'dashboard/components-next/Editor/Editor.vue';
 
 export default {
@@ -48,6 +50,7 @@ export default {
     WhatsappReauthorize,
     DuplicateInboxBanner,
     Editor,
+    Avatar,
   },
   mixins: [inboxMixin],
   setup() {
@@ -173,7 +176,10 @@ export default {
     inbox() {
       return this.$store.getters['inboxes/getInbox'](this.currentInboxId);
     },
-
+    inboxIcon() {
+      const { medium, channel_type: type } = this.inbox;
+      return getInboxIconByType(type, medium);
+    },
     inboxName() {
       if (this.isATwilioSMSChannel || this.isATwilioWhatsAppChannel) {
         return `${this.inbox.name} (${
@@ -283,8 +289,17 @@ export default {
       }
       return [...selected, current];
     },
+    refreshAvatarUrlOnTabChange(index) {
+      // Refresh avatar URL on tab change from inbox_settings and widgetBuilder tabs, to ensure real-time updates
+      if (
+        this.inbox &&
+        ['inbox_settings', 'widgetBuilder'].includes(this.tabs[index].key)
+      )
+        this.avatarUrl = this.inbox.avatar_url;
+    },
     onTabChange(selectedTabIndex) {
       this.selectedTabIndex = selectedTabIndex;
+      this.refreshAvatarUrlOnTabChange(selectedTabIndex);
     },
     fetchInboxSettings() {
       this.selectedTabIndex = 0;
@@ -435,14 +450,21 @@ export default {
           :sub-title="$t('INBOX_MGMT.SETTINGS_POPUP.INBOX_UPDATE_SUB_TEXT')"
           :show-border="false"
         >
-          <woot-avatar-uploader
-            :label="$t('INBOX_MGMT.ADD.WEBSITE_CHANNEL.CHANNEL_AVATAR.LABEL')"
-            :src="avatarUrl"
-            class="pb-4"
-            delete-avatar
-            @on-avatar-select="handleImageUpload"
-            @on-avatar-delete="handleAvatarDelete"
-          />
+          <div class="flex flex-col mb-4 items-start gap-1">
+            <label class="mb-0.5 text-sm font-medium text-n-slate-12">
+              {{ $t('INBOX_MGMT.ADD.WEBSITE_CHANNEL.CHANNEL_AVATAR.LABEL') }}
+            </label>
+            <Avatar
+              :src="avatarUrl"
+              :size="72"
+              :icon-name="inboxIcon"
+              name=""
+              allow-upload
+              rounded-full
+              @upload="handleImageUpload"
+              @delete="handleAvatarDelete"
+            />
+          </div>
           <woot-input
             v-model="selectedInboxName"
             class="pb-4"
diff --git a/app/javascript/dashboard/routes/dashboard/settings/inbox/WidgetBuilder.vue b/app/javascript/dashboard/routes/dashboard/settings/inbox/WidgetBuilder.vue
index 08ad90a92..08f536185 100644
--- a/app/javascript/dashboard/routes/dashboard/settings/inbox/WidgetBuilder.vue
+++ b/app/javascript/dashboard/routes/dashboard/settings/inbox/WidgetBuilder.vue
@@ -9,6 +9,7 @@ import { LOCAL_STORAGE_KEYS } from 'dashboard/constants/localStorage';
 import { LocalStorage } from 'shared/helpers/localStorage';
 import { WIDGET_BUILDER_EDITOR_MENU_OPTIONS } from 'dashboard/constants/editor';
 import NextButton from 'dashboard/components-next/button/Button.vue';
+import Avatar from 'next/avatar/Avatar.vue';
 import Editor from 'dashboard/components-next/Editor/Editor.vue';
 
 export default {
@@ -17,6 +18,7 @@ export default {
     InputRadioGroup,
     NextButton,
     Editor,
+    Avatar,
   },
   props: {
     inbox: {
@@ -276,15 +278,23 @@ export default {
       <div class="w-100 lg:w-[40%]">
         <div class="min-h-full py-4 overflow-y-scroll px-px">
           <form @submit.prevent="updateWidget">
-            <woot-avatar-uploader
-              :label="
-                $t('INBOX_MGMT.WIDGET_BUILDER.WIDGET_OPTIONS.AVATAR.LABEL')
-              "
-              :src="avatarUrl"
-              delete-avatar
-              @on-avatar-select="handleImageUpload"
-              @on-avatar-delete="handleAvatarDelete"
-            />
+            <div class="flex flex-col mb-4 items-start gap-1 w-full">
+              <label class="mb-0.5 text-sm font-medium text-n-slate-12">
+                {{
+                  $t('INBOX_MGMT.WIDGET_BUILDER.WIDGET_OPTIONS.AVATAR.LABEL')
+                }}
+              </label>
+              <Avatar
+                :src="avatarUrl"
+                :size="72"
+                icon-name="i-ri-global-fill"
+                name=""
+                allow-upload
+                rounded-full
+                @upload="handleImageUpload"
+                @delete="handleAvatarDelete"
+              />
+            </div>
             <woot-input
               v-model="websiteName"
               :class="{ error: v$.websiteName.$error }"
diff --git a/app/javascript/dashboard/routes/dashboard/settings/inbox/components/SenderNameExamplePreview.vue b/app/javascript/dashboard/routes/dashboard/settings/inbox/components/SenderNameExamplePreview.vue
index 5c08b143b..6e5d2c251 100644
--- a/app/javascript/dashboard/routes/dashboard/settings/inbox/components/SenderNameExamplePreview.vue
+++ b/app/javascript/dashboard/routes/dashboard/settings/inbox/components/SenderNameExamplePreview.vue
@@ -1,11 +1,11 @@
 <script>
 import PreviewCard from 'dashboard/components/ui/PreviewCard.vue';
-import Thumbnail from 'dashboard/components/widgets/Thumbnail.vue';
+import Avatar from 'next/avatar/Avatar.vue';
 
 export default {
   components: {
     PreviewCard,
-    Thumbnail,
+    Avatar,
   },
   props: {
     senderNameType: {
@@ -45,7 +45,7 @@ export default {
           ),
           preview: {
             senderName: '',
-            businessName: 'Chatwoot',
+            businessName: 'Chatwoot   ',
             email: '<support@yourbusiness.com>',
           },
         },
@@ -86,7 +86,7 @@ export default {
             {{ $t('INBOX_MGMT.EDIT.SENDER_NAME_SECTION.FOR_EG') }}
           </span>
           <div class="flex flex-row items-center gap-2">
-            <Thumbnail :username="userName(keyOption)" size="32px" />
+            <Avatar :name="userName(keyOption)" :size="32" rounded-full />
             <div class="flex flex-col items-start gap-1">
               <div class="items-center flex flex-row gap-0.5 max-w-[18rem]">
                 <span
diff --git a/app/javascript/dashboard/routes/dashboard/settings/macros/MacrosTableRow.vue b/app/javascript/dashboard/routes/dashboard/settings/macros/MacrosTableRow.vue
index afb7c3a0a..798b05f00 100644
--- a/app/javascript/dashboard/routes/dashboard/settings/macros/MacrosTableRow.vue
+++ b/app/javascript/dashboard/routes/dashboard/settings/macros/MacrosTableRow.vue
@@ -1,6 +1,6 @@
 <script setup>
 import { computed } from 'vue';
-import Thumbnail from 'dashboard/components/widgets/Thumbnail.vue';
+import Avatar from 'next/avatar/Avatar.vue';
 import { useI18n } from 'vue-i18n';
 
 import Button from 'dashboard/components-next/button/Button.vue';
@@ -38,14 +38,14 @@ const visibilityLabel = computed(() => {
     <td class="py-4 ltr:pr-4 rtl:pl-4 truncate">{{ macro.name }}</td>
     <td class="py-4 ltr:pr-4 rtl:pl-4">
       <div v-if="macro.created_by" class="flex items-center">
-        <Thumbnail :username="createdByName" size="24px" />
+        <Avatar :name="createdByName" :size="24" rounded-full />
         <span class="mx-2">{{ createdByName }}</span>
       </div>
       <div v-else>--</div>
     </td>
     <td class="py-4 ltr:pr-4 rtl:pl-4">
       <div v-if="macro.updated_by" class="flex items-center">
-        <Thumbnail :username="updatedByName" size="24px" />
+        <Avatar :name="updatedByName" :size="24" rounded-full />
         <span class="mx-2">{{ updatedByName }}</span>
       </div>
       <div v-else>--</div>
diff --git a/app/javascript/dashboard/routes/dashboard/settings/reports/components/ReportFilters.vue b/app/javascript/dashboard/routes/dashboard/settings/reports/components/ReportFilters.vue
index fe348417d..02b286d07 100644
--- a/app/javascript/dashboard/routes/dashboard/settings/reports/components/ReportFilters.vue
+++ b/app/javascript/dashboard/routes/dashboard/settings/reports/components/ReportFilters.vue
@@ -3,7 +3,7 @@ import endOfDay from 'date-fns/endOfDay';
 import getUnixTime from 'date-fns/getUnixTime';
 import startOfDay from 'date-fns/startOfDay';
 import subDays from 'date-fns/subDays';
-import Thumbnail from 'dashboard/components/widgets/Thumbnail.vue';
+import Avatar from 'next/avatar/Avatar.vue';
 import WootDateRangePicker from 'dashboard/components/ui/DateRangePicker.vue';
 import ToggleSwitch from 'dashboard/components-next/switch/Switch.vue';
 
@@ -13,7 +13,7 @@ const CUSTOM_DATE_RANGE_ID = 5;
 export default {
   components: {
     WootDateRangePicker,
-    Thumbnail,
+    Avatar,
     ToggleSwitch,
   },
   props: {
@@ -184,11 +184,13 @@ export default {
       >
         <template #singleLabel="props">
           <div class="flex min-w-0 items-center gap-2">
-            <Thumbnail
+            <Avatar
               :src="props.option.thumbnail"
               :status="props.option.availability_status"
-              :username="props.option.name"
-              size="22px"
+              :name="props.option.name"
+              :size="22"
+              hide-offline-status
+              rounded-full
             />
             <span class="my-0 text-n-slate-12 truncate">{{
               props.option.name
@@ -197,11 +199,13 @@ export default {
         </template>
         <template #options="props">
           <div class="flex items-center gap-2">
-            <Thumbnail
+            <Avatar
               :src="props.option.thumbnail"
               :status="props.option.availability_status"
-              :username="props.option.name"
-              size="22px"
+              :name="props.option.name"
+              :size="22"
+              hide-offline-status
+              rounded-full
             />
             <p class="my-0 text-n-slate-12">
               {{ props.option.name }}
diff --git a/app/javascript/dashboard/routes/dashboard/settings/reports/components/overview/AgentCell.vue b/app/javascript/dashboard/routes/dashboard/settings/reports/components/overview/AgentCell.vue
index c6f348252..3f104194e 100644
--- a/app/javascript/dashboard/routes/dashboard/settings/reports/components/overview/AgentCell.vue
+++ b/app/javascript/dashboard/routes/dashboard/settings/reports/components/overview/AgentCell.vue
@@ -1,6 +1,6 @@
 <script setup>
 import BaseCell from 'dashboard/components/table/BaseCell.vue';
-import Thumbnail from 'dashboard/components/widgets/Thumbnail.vue';
+import Avatar from 'next/avatar/Avatar.vue';
 import { useMapGetter } from 'dashboard/composables/store';
 
 defineProps({
@@ -19,11 +19,13 @@ const isRTL = useMapGetter('accounts/isRTL');
       class="items-center flex text-left"
       :class="{ 'flex-row-reverse': isRTL }"
     >
-      <Thumbnail
+      <Avatar
         :src="row.original.thumbnail"
-        size="32px"
-        :username="row.original.agent"
+        :name="row.original.agent"
         :status="row.original.status"
+        :size="32"
+        hide-offline-status
+        rounded-full
       />
       <div class="items-start flex flex-col min-w-0 my-0 mx-2">
         <h6
diff --git a/app/javascript/dashboard/routes/dashboard/settings/teams/AgentSelector.vue b/app/javascript/dashboard/routes/dashboard/settings/teams/AgentSelector.vue
index d90d3ce63..d6a569834 100644
--- a/app/javascript/dashboard/routes/dashboard/settings/teams/AgentSelector.vue
+++ b/app/javascript/dashboard/routes/dashboard/settings/teams/AgentSelector.vue
@@ -1,11 +1,11 @@
 <script>
 import NextButton from 'dashboard/components-next/button/Button.vue';
-import Thumbnail from 'dashboard/components/widgets/Thumbnail.vue';
+import Avatar from 'next/avatar/Avatar.vue';
 
 export default {
   components: {
     NextButton,
-    Thumbnail,
+    Avatar,
   },
   props: {
     agentList: {
@@ -115,11 +115,13 @@ export default {
           </td>
           <td>
             <div class="flex items-center gap-2">
-              <Thumbnail
+              <Avatar
                 :src="agent.thumbnail"
-                size="24px"
-                :username="agent.name"
+                :name="agent.name"
                 :status="agent.availability_status"
+                :size="24"
+                hide-offline-status
+                rounded-full
               />
               <h4 class="text-base mb-0 text-n-slate-12">
                 {{ agent.name }}
diff --git a/app/javascript/shared/components/ui/MultiselectDropdown.vue b/app/javascript/shared/components/ui/MultiselectDropdown.vue
index e3150ac05..ad4158e67 100644
--- a/app/javascript/shared/components/ui/MultiselectDropdown.vue
+++ b/app/javascript/shared/components/ui/MultiselectDropdown.vue
@@ -4,7 +4,7 @@ import { OnClickOutside } from '@vueuse/components';
 import { useToggle } from '@vueuse/core';
 
 import Button from 'dashboard/components-next/button/Button.vue';
-import Thumbnail from 'dashboard/components/widgets/Thumbnail.vue';
+import Avatar from 'next/avatar/Avatar.vue';
 import MultiselectDropdownItems from 'shared/components/ui/MultiselectDropdownItems.vue';
 
 const props = defineProps({
@@ -82,12 +82,14 @@ const hasValue = computed(() => {
             {{ selectedItem.name }}
           </h4>
         </div>
-        <Thumbnail
+        <Avatar
           v-if="hasValue && hasThumbnail"
           :src="selectedItem.thumbnail"
-          size="24px"
           :status="selectedItem.availability_status"
-          :username="selectedItem.name"
+          :name="selectedItem.name"
+          :size="24"
+          hide-offline-status
+          rounded-full
         />
       </Button>
       <div
diff --git a/app/javascript/shared/components/ui/MultiselectDropdownItems.vue b/app/javascript/shared/components/ui/MultiselectDropdownItems.vue
index 0df7bedac..547223c18 100644
--- a/app/javascript/shared/components/ui/MultiselectDropdownItems.vue
+++ b/app/javascript/shared/components/ui/MultiselectDropdownItems.vue
@@ -1,14 +1,14 @@
 <script>
 import WootDropdownItem from 'shared/components/ui/dropdown/DropdownItem.vue';
 import WootDropdownMenu from 'shared/components/ui/dropdown/DropdownMenu.vue';
-import Thumbnail from 'dashboard/components/widgets/Thumbnail.vue';
+import Avatar from 'next/avatar/Avatar.vue';
 import NextButton from 'dashboard/components-next/button/Button.vue';
 
 export default {
   components: {
     WootDropdownItem,
     WootDropdownMenu,
-    Thumbnail,
+    Avatar,
     NextButton,
   },
 
@@ -105,13 +105,14 @@ export default {
                   {{ option.name }}
                 </span>
               </div>
-              <Thumbnail
+              <Avatar
                 v-if="hasThumbnail"
                 :src="option.thumbnail"
-                size="24px"
-                :username="option.name"
+                :name="option.name"
                 :status="option.availability_status"
-                has-border
+                :size="24"
+                hide-offline-status
+                rounded-full
               />
             </NextButton>
           </WootDropdownItem>
diff --git a/app/javascript/widget/components/AgentMessage.vue b/app/javascript/widget/components/AgentMessage.vue
index 411795a41..e8d245ddb 100755
--- a/app/javascript/widget/components/AgentMessage.vue
+++ b/app/javascript/widget/components/AgentMessage.vue
@@ -6,7 +6,7 @@ import { messageStamp } from 'shared/helpers/timeHelper';
 import ImageBubble from 'widget/components/ImageBubble.vue';
 import VideoBubble from 'widget/components/VideoBubble.vue';
 import FileBubble from 'widget/components/FileBubble.vue';
-import Thumbnail from 'dashboard/components/widgets/Thumbnail.vue';
+import Avatar from 'dashboard/components-next/avatar/Avatar.vue';
 import { MESSAGE_TYPE } from 'widget/helpers/constants';
 import configMixin from '../mixins/configMixin';
 import messageMixin from '../mixins/messageMixin';
@@ -21,7 +21,7 @@ export default {
     AgentMessageBubble,
     ImageBubble,
     VideoBubble,
-    Thumbnail,
+    Avatar,
     UserMessage,
     FileBubble,
     MessageReplyButton,
@@ -165,12 +165,15 @@ export default {
   >
     <div v-if="!isASubmittedForm" class="agent-message">
       <div class="avatar-wrap">
-        <Thumbnail
-          v-if="message.showAvatar || hasRecordedResponse"
-          :src="avatarUrl"
-          size="24px"
-          :username="agentName"
-        />
+        <div class="user-thumbnail-box">
+          <Avatar
+            v-if="message.showAvatar || hasRecordedResponse"
+            :src="avatarUrl"
+            :size="24"
+            :name="agentName"
+            rounded-full
+          />
+        </div>
       </div>
       <div class="message-wrap">
         <div v-if="hasReplyTo" class="flex mt-2 mb-1 text-xs">
diff --git a/app/javascript/widget/components/GroupedAvatars.vue b/app/javascript/widget/components/GroupedAvatars.vue
index 42e133478..14d375a03 100644
--- a/app/javascript/widget/components/GroupedAvatars.vue
+++ b/app/javascript/widget/components/GroupedAvatars.vue
@@ -1,5 +1,5 @@
 <script setup>
-import Thumbnail from 'dashboard/components/widgets/Thumbnail.vue';
+import Avatar from 'dashboard/components-next/avatar/Avatar.vue';
 import { defineProps, computed } from 'vue';
 
 const props = defineProps({
@@ -24,11 +24,12 @@ const usersToDisplay = computed(() => props.users.slice(0, props.limit));
       :class="index ? 'ltr:-ml-4 rtl:-mr-4' : ''"
       class="inline-block rounded-full text-white shadow-solid"
     >
-      <Thumbnail
-        size="36px"
-        :username="user.name"
+      <Avatar
+        :name="user.name"
         :src="user.avatar_url"
-        has-border
+        :size="36"
+        class="[&>span]:outline [&>span]:outline-1 [&>span]:outline-n-background"
+        rounded-full
       />
     </span>
   </div>
diff --git a/app/javascript/widget/components/UnreadMessage.vue b/app/javascript/widget/components/UnreadMessage.vue
index e8d7d6f08..d1881be90 100644
--- a/app/javascript/widget/components/UnreadMessage.vue
+++ b/app/javascript/widget/components/UnreadMessage.vue
@@ -1,6 +1,6 @@
 <script>
 import { useMessageFormatter } from 'shared/composables/useMessageFormatter';
-import Thumbnail from 'dashboard/components/widgets/Thumbnail.vue';
+import Avatar from 'dashboard/components-next/avatar/Avatar.vue';
 import configMixin from '../mixins/configMixin';
 import { isEmptyObject } from 'widget/helpers/utils';
 import {
@@ -11,7 +11,7 @@ import { emitter } from 'shared/helpers/mitt';
 
 export default {
   name: 'UnreadMessage',
-  components: { Thumbnail },
+  components: { Avatar },
   mixins: [configMixin],
   props: {
     message: {
@@ -95,11 +95,12 @@ export default {
   <div class="chat-bubble-wrap">
     <button class="chat-bubble agent bg-white" @click="onClickMessage">
       <div v-if="showSender" class="row--agent-block">
-        <Thumbnail
+        <Avatar
           :src="avatarUrl"
-          size="20px"
-          :username="agentName"
+          :size="20"
+          :name="agentName"
           :status="availabilityStatus"
+          rounded-full
         />
         <span v-dompurify-html="agentName" class="agent--name" />
         <span v-dompurify-html="companyName" class="company--name" />