diff --git a/app/actions/contact_identify_action.rb b/app/actions/contact_identify_action.rb
index 746d1bfec..ed90306ec 100644
--- a/app/actions/contact_identify_action.rb
+++ b/app/actions/contact_identify_action.rb
@@ -1,7 +1,16 @@
+# retain_original_contact_name: false / true
+# In case of setUser we want to update the name of the identified contact,
+# which is the default behaviour
+#
+# But, In case of contact merge during prechat form contact update.
+# We don't want to update the name of the identified original contact.
+
 class ContactIdentifyAction
-  pattr_initialize [:contact!, :params!]
+  pattr_initialize [:contact!, :params!, { retain_original_contact_name: false }]
 
   def perform
+    @attributes_to_update = [:identifier, :name, :email, :phone_number]
+
     ActiveRecord::Base.transaction do
       merge_if_existing_identified_contact
       merge_if_existing_email_contact
@@ -18,49 +27,88 @@ class ContactIdentifyAction
   end
 
   def merge_if_existing_identified_contact
-    @contact = merge_contact(existing_identified_contact, @contact) if merge_contacts?(existing_identified_contact, @contact)
+    return unless merge_contacts?(existing_identified_contact, :identifier)
+
+    process_contact_merge(existing_identified_contact)
   end
 
   def merge_if_existing_email_contact
-    @contact = merge_contact(existing_email_contact, @contact) if merge_contacts?(existing_email_contact, @contact)
+    return unless merge_contacts?(existing_email_contact, :email)
+
+    process_contact_merge(existing_email_contact)
   end
 
   def merge_if_existing_phone_number_contact
-    @contact = merge_contact(existing_phone_number_contact, @contact) if merge_contacts?(existing_phone_number_contact, @contact)
+    return unless merge_contacts?(existing_phone_number_contact, :phone_number)
+    return unless mergable_phone_contact?
+
+    process_contact_merge(existing_phone_number_contact)
+  end
+
+  def process_contact_merge(mergee_contact)
+    @contact = merge_contact(mergee_contact, @contact)
+    @attributes_to_update.delete(:name) if retain_original_contact_name
   end
 
   def existing_identified_contact
     return if params[:identifier].blank?
 
-    @existing_identified_contact ||= Contact.where(account_id: account.id).find_by(identifier: params[:identifier])
+    @existing_identified_contact ||= account.contacts.find_by(identifier: params[:identifier])
   end
 
   def existing_email_contact
     return if params[:email].blank?
 
-    @existing_email_contact ||= Contact.where(account_id: account.id).find_by(email: params[:email])
+    @existing_email_contact ||= account.contacts.find_by(email: params[:email])
   end
 
   def existing_phone_number_contact
     return if params[:phone_number].blank?
 
-    @existing_phone_number_contact ||= Contact.where(account_id: account.id).find_by(phone_number: params[:phone_number])
+    @existing_phone_number_contact ||= account.contacts.find_by(phone_number: params[:phone_number])
   end
 
-  def merge_contacts?(existing_contact, _contact)
-    existing_contact && existing_contact.id != @contact.id
+  def merge_contacts?(existing_contact, key)
+    return if existing_contact.blank?
+
+    return true if params[:identifier].blank?
+
+    # we want to prevent merging contacts with different identifiers
+    if existing_contact.identifier.present? && existing_contact.identifier != params[:identifier]
+      # we will remove attribute from update list
+      @attributes_to_update.delete(key)
+      return false
+    end
+
+    true
+  end
+
+  # case: contact 1: email: 1@test.com, phone: 123456789
+  # params: email: 2@test.com, phone: 123456789
+  # we don't want to overwrite 1@test.com since email parameter takes higer priority
+  def mergable_phone_contact?
+    return true if params[:email].blank?
+
+    if existing_phone_number_contact.email.present? && existing_phone_number_contact.email != params[:email]
+      @attributes_to_update.delete(:phone_number)
+      return false
+    end
+    true
   end
 
   def update_contact
+    params_to_update = params.slice(*@attributes_to_update).reject do |_k, v|
+      v.blank?
+    end.merge({ custom_attributes: custom_attributes, additional_attributes: additional_attributes })
     # blank identifier or email will throw unique index error
     # TODO: replace reject { |_k, v| v.blank? } with compact_blank when rails is upgraded
-    @contact.update!(params.slice(:name, :email, :identifier, :phone_number).reject do |_k, v|
-                       v.blank?
-                     end.merge({ custom_attributes: custom_attributes, additional_attributes: additional_attributes }))
+    @contact.update!(params_to_update)
     ContactAvatarJob.perform_later(@contact, params[:avatar_url]) if params[:avatar_url].present?
   end
 
   def merge_contact(base_contact, merge_contact)
+    return base_contact if base_contact.id == merge_contact.id
+
     ContactMergeAction.new(
       account: account,
       base_contact: base_contact,
@@ -69,14 +117,14 @@ class ContactIdentifyAction
   end
 
   def custom_attributes
-    params[:custom_attributes] ? @contact.custom_attributes.deep_merge(params[:custom_attributes].stringify_keys) : @contact.custom_attributes
+    return @contact.custom_attributes if params[:custom_attributes].blank?
+
+    (@contact.custom_attributes || {}).deep_merge(params[:custom_attributes].stringify_keys)
   end
 
   def additional_attributes
-    if params[:additional_attributes]
-      @contact.additional_attributes.deep_merge(params[:additional_attributes].stringify_keys)
-    else
-      @contact.additional_attributes
-    end
+    return @contact.additional_attributes if params[:additional_attributes].blank?
+
+    (@contact.additional_attributes || {}).deep_merge(params[:additional_attributes].stringify_keys)
   end
 end
diff --git a/app/controllers/api/v1/widget/base_controller.rb b/app/controllers/api/v1/widget/base_controller.rb
index fc4d33fc3..d854114c4 100644
--- a/app/controllers/api/v1/widget/base_controller.rb
+++ b/app/controllers/api/v1/widget/base_controller.rb
@@ -44,38 +44,6 @@ class Api::V1::Widget::BaseController < ApplicationController
     }
   end
 
-  def update_contact(email)
-    contact_with_email = @current_account.contacts.find_by(email: email)
-    if contact_with_email
-      @contact = ::ContactMergeAction.new(
-        account: @current_account,
-        base_contact: contact_with_email,
-        mergee_contact: @contact
-      ).perform
-    else
-      @contact.update!(email: email)
-      update_contact_name
-    end
-  end
-
-  def update_contact_phone_number(phone_number)
-    contact_with_phone_number = @current_account.contacts.find_by(phone_number: phone_number)
-    if contact_with_phone_number
-      @contact = ::ContactMergeAction.new(
-        account: @current_account,
-        base_contact: contact_with_phone_number,
-        mergee_contact: @contact
-      ).perform
-    else
-      @contact.update!(phone_number: phone_number)
-      update_contact_name
-    end
-  end
-
-  def update_contact_name
-    @contact.update!(name: contact_name) if contact_name.present?
-  end
-
   def contact_email
     permitted_params.dig(:contact, :email)&.downcase
   end
diff --git a/app/controllers/api/v1/widget/contacts_controller.rb b/app/controllers/api/v1/widget/contacts_controller.rb
index fbc303a4f..b6f997b06 100644
--- a/app/controllers/api/v1/widget/contacts_controller.rb
+++ b/app/controllers/api/v1/widget/contacts_controller.rb
@@ -1,14 +1,27 @@
 class Api::V1::Widget::ContactsController < Api::V1::Widget::BaseController
-  before_action :process_hmac, only: [:update]
+  include WidgetHelper
+
+  before_action :validate_hmac, only: [:set_user]
 
   def show; end
 
   def update
-    contact_identify_action = ContactIdentifyAction.new(
-      contact: @contact,
-      params: permitted_params.to_h.deep_symbolize_keys
-    )
-    @contact = contact_identify_action.perform
+    identify_contact(@contact)
+  end
+
+  def set_user
+    contact = nil
+
+    if a_different_contact?
+      @contact_inbox, @widget_auth_token = build_contact_inbox_with_token(@web_widget)
+      contact = @contact_inbox.contact
+    else
+      contact = @contact
+    end
+
+    @contact_inbox.update(hmac_verified: true) if should_verify_hmac? && valid_hmac?
+
+    identify_contact(contact)
   end
 
   # TODO : clean up this with proper routes delete contacts/custom_attributes
@@ -20,12 +33,22 @@ class Api::V1::Widget::ContactsController < Api::V1::Widget::BaseController
 
   private
 
-  def process_hmac
+  def identify_contact(contact)
+    contact_identify_action = ContactIdentifyAction.new(
+      contact: contact,
+      params: permitted_params.to_h.deep_symbolize_keys
+    )
+    @contact = contact_identify_action.perform
+  end
+
+  def a_different_contact?
+    @contact.identifier.present? && @contact.identifier != permitted_params[:identifier]
+  end
+
+  def validate_hmac
     return unless should_verify_hmac?
 
     render json: { error: 'HMAC failed: Invalid Identifier Hash Provided' }, status: :unauthorized unless valid_hmac?
-
-    @contact_inbox.update(hmac_verified: true)
   end
 
   def should_verify_hmac?
diff --git a/app/controllers/api/v1/widget/conversations_controller.rb b/app/controllers/api/v1/widget/conversations_controller.rb
index 8d054229c..a01d33cdf 100644
--- a/app/controllers/api/v1/widget/conversations_controller.rb
+++ b/app/controllers/api/v1/widget/conversations_controller.rb
@@ -14,8 +14,11 @@ class Api::V1::Widget::ConversationsController < Api::V1::Widget::BaseController
   end
 
   def process_update_contact
-    update_contact(contact_email) if @contact.email.blank? && contact_email.present?
-    update_contact_phone_number(contact_phone_number) if @contact.phone_number.blank? && contact_phone_number.present?
+    @contact = ContactIdentifyAction.new(
+      contact: @contact,
+      params: { email: contact_email, phone_number: contact_phone_number, name: contact_name },
+      retain_original_contact_name: true
+    ).perform
   end
 
   def update_last_seen
diff --git a/app/controllers/api/v1/widget/messages_controller.rb b/app/controllers/api/v1/widget/messages_controller.rb
index c2fa6304b..7ff77be32 100644
--- a/app/controllers/api/v1/widget/messages_controller.rb
+++ b/app/controllers/api/v1/widget/messages_controller.rb
@@ -15,7 +15,10 @@ class Api::V1::Widget::MessagesController < Api::V1::Widget::BaseController
   def update
     if @message.content_type == 'input_email'
       @message.update!(submitted_email: contact_email)
-      update_contact(contact_email)
+      ContactIdentifyAction.new(
+        contact: @contact,
+        params: { email: contact_email }
+      ).perform
     else
       @message.update!(message_update_params[:message])
     end
diff --git a/app/controllers/widgets_controller.rb b/app/controllers/widgets_controller.rb
index ad7d2e3c0..653d3360f 100644
--- a/app/controllers/widgets_controller.rb
+++ b/app/controllers/widgets_controller.rb
@@ -1,5 +1,7 @@
 # TODO : Delete this and associated spec once 'api/widget/config' end point is merged
 class WidgetsController < ActionController::Base
+  include WidgetHelper
+
   before_action :set_global_config
   before_action :set_web_widget
   before_action :set_token
@@ -40,11 +42,8 @@ class WidgetsController < ActionController::Base
   def build_contact
     return if @contact.present?
 
-    @contact_inbox = @web_widget.create_contact_inbox(additional_attributes)
+    @contact_inbox, @token = build_contact_inbox_with_token(@web_widget, additional_attributes)
     @contact = @contact_inbox.contact
-
-    payload = { source_id: @contact_inbox.source_id, inbox_id: @web_widget.inbox.id }
-    @token = ::Widget::TokenService.new(payload: payload).generate_token
   end
 
   def additional_attributes
diff --git a/app/helpers/widget_helper.rb b/app/helpers/widget_helper.rb
new file mode 100644
index 000000000..0798789eb
--- /dev/null
+++ b/app/helpers/widget_helper.rb
@@ -0,0 +1,9 @@
+module WidgetHelper
+  def build_contact_inbox_with_token(web_widget, additional_attributes = {})
+    contact_inbox = web_widget.create_contact_inbox(additional_attributes)
+    payload = { source_id: contact_inbox.source_id, inbox_id: web_widget.inbox.id }
+    token = ::Widget::TokenService.new(payload: payload).generate_token
+
+    [contact_inbox, token]
+  end
+end
diff --git a/app/javascript/sdk/IFrameHelper.js b/app/javascript/sdk/IFrameHelper.js
index 2f3ad5cfd..47596bce3 100644
--- a/app/javascript/sdk/IFrameHelper.js
+++ b/app/javascript/sdk/IFrameHelper.js
@@ -33,6 +33,12 @@ import {
 import { isFlatWidgetStyle } from './settingsHelper';
 import { popoutChatWindow } from '../widget/helpers/popoutHelper';
 
+const updateAuthCookie = cookieContent =>
+  Cookies.set('cw_conversation', cookieContent, {
+    expires: 365,
+    sameSite: 'Lax',
+  });
+
 export const IFrameHelper = {
   getUrl({ baseUrl, websiteToken }) {
     return `${baseUrl}/widget?website_token=${websiteToken}`;
@@ -134,10 +140,7 @@ export const IFrameHelper = {
 
   events: {
     loaded: message => {
-      Cookies.set('cw_conversation', message.config.authToken, {
-        expires: 365,
-        sameSite: 'Lax',
-      });
+      updateAuthCookie(message.config.authToken);
       window.$chatwoot.hasLoaded = true;
       IFrameHelper.sendMessage('config-set', {
         locale: window.$chatwoot.locale,
@@ -178,6 +181,10 @@ export const IFrameHelper = {
       setBubbleText(window.$chatwoot.launcherTitle || message.label);
     },
 
+    setAuthCookie({ data: { widgetAuthToken } }) {
+      updateAuthCookie(widgetAuthToken);
+    },
+
     toggleBubble: state => {
       let bubbleState = {};
       if (state === 'open') {
diff --git a/app/javascript/widget/App.vue b/app/javascript/widget/App.vue
index 0af28295a..544fa62fc 100755
--- a/app/javascript/widget/App.vue
+++ b/app/javascript/widget/App.vue
@@ -83,12 +83,11 @@ export default {
     const { websiteToken, locale, widgetColor } = window.chatwootWebChannel;
     this.setLocale(locale);
     this.setWidgetColor(widgetColor);
+    setHeader(window.authToken);
     if (this.isIFrame) {
       this.registerListeners();
       this.sendLoadedEvent();
-      setHeader('X-Auth-Token', window.authToken);
     } else {
-      setHeader('X-Auth-Token', window.authToken);
       this.fetchOldConversations();
       this.fetchAvailableAgents(websiteToken);
       this.setLocale(getLocale(window.location.search));
@@ -253,7 +252,7 @@ export default {
         } else if (message.event === 'remove-label') {
           this.$store.dispatch('conversationLabels/destroy', message.label);
         } else if (message.event === 'set-user') {
-          this.$store.dispatch('contacts/update', message);
+          this.$store.dispatch('contacts/setUser', message);
         } else if (message.event === 'set-custom-attributes') {
           this.$store.dispatch(
             'contacts/setCustomAttributes',
diff --git a/app/javascript/widget/api/contacts.js b/app/javascript/widget/api/contacts.js
index 15edb07e9..8054b1d1d 100644
--- a/app/javascript/widget/api/contacts.js
+++ b/app/javascript/widget/api/contacts.js
@@ -6,8 +6,11 @@ export default {
   get() {
     return API.get(buildUrl('widget/contact'));
   },
-  update(identifier, userObject) {
-    return API.patch(buildUrl('widget/contact'), {
+  update(userObject) {
+    return API.patch(buildUrl('widget/contact'), userObject);
+  },
+  setUser(identifier, userObject) {
+    return API.patch(buildUrl('widget/contact/set_user'), {
       identifier,
       ...userObject,
     });
diff --git a/app/javascript/widget/helpers/axios.js b/app/javascript/widget/helpers/axios.js
index 415a7032d..0369dae62 100755
--- a/app/javascript/widget/helpers/axios.js
+++ b/app/javascript/widget/helpers/axios.js
@@ -6,7 +6,7 @@ export const API = axios.create({
   withCredentials: false,
 });
 
-export const setHeader = (key, value) => {
+export const setHeader = (value, key = 'X-Auth-Token') => {
   API.defaults.headers.common[key] = value;
 };
 
diff --git a/app/javascript/widget/helpers/utils.js b/app/javascript/widget/helpers/utils.js
index eadfdc128..2b7384f1d 100755
--- a/app/javascript/widget/helpers/utils.js
+++ b/app/javascript/widget/helpers/utils.js
@@ -10,14 +10,16 @@ export const arrayToHashById = array =>
     return newMap;
   }, {});
 
+export const sendMessage = msg => {
+  window.parent.postMessage(
+    `chatwoot-widget:${JSON.stringify({ ...msg })}`,
+    '*'
+  );
+};
+
 export const IFrameHelper = {
   isIFrame: () => window.self !== window.top,
-  sendMessage: msg => {
-    window.parent.postMessage(
-      `chatwoot-widget:${JSON.stringify({ ...msg })}`,
-      '*'
-    );
-  },
+  sendMessage,
   isAValidEvent: e => {
     const isDataAString = typeof e.data === 'string';
     const isAValidWootEvent =
diff --git a/app/javascript/widget/store/modules/contacts.js b/app/javascript/widget/store/modules/contacts.js
index b82cda8ad..89af9ea34 100644
--- a/app/javascript/widget/store/modules/contacts.js
+++ b/app/javascript/widget/store/modules/contacts.js
@@ -1,11 +1,23 @@
-import { IFrameHelper } from 'widget/helpers/utils';
+import { sendMessage } from 'widget/helpers/utils';
 import ContactsAPI from '../../api/contacts';
 import { SET_USER_ERROR } from '../../constants/errorTypes';
+import { setHeader } from '../../helpers/axios';
 const state = {
   currentUser: {},
 };
 
 const SET_CURRENT_USER = 'SET_CURRENT_USER';
+const parseErrorData = error =>
+  error && error.response && error.response.data ? error.response.data : error;
+export const updateWidgetAuthToken = widgetAuthToken => {
+  if (widgetAuthToken) {
+    setHeader(widgetAuthToken);
+    sendMessage({
+      event: 'setAuthCookie',
+      data: { widgetAuthToken },
+    });
+  }
+};
 
 export const getters = {
   getCurrentUser(_state) {
@@ -22,13 +34,21 @@ export const actions = {
       // Ignore error
     }
   },
-  update: async ({ dispatch }, { identifier, user: userObject }) => {
+  update: async ({ dispatch }, { user }) => {
+    try {
+      await ContactsAPI.update(user);
+      dispatch('get');
+    } catch (error) {
+      // Ignore error
+    }
+  },
+  setUser: async ({ dispatch }, { identifier, user: userObject }) => {
     try {
       const {
         email,
         name,
         avatar_url,
-        identifier_hash,
+        identifier_hash: identifierHash,
         phone_number,
         company_name,
         city,
@@ -41,7 +61,7 @@ export const actions = {
         email,
         name,
         avatar_url,
-        identifier_hash,
+        identifier_hash: identifierHash,
         phone_number,
         additional_attributes: {
           company_name,
@@ -52,24 +72,19 @@ export const actions = {
         },
         custom_attributes,
       };
-      await ContactsAPI.update(identifier, user);
-
+      const {
+        data: { widget_auth_token: widgetAuthToken },
+      } = await ContactsAPI.setUser(identifier, user);
+      updateWidgetAuthToken(widgetAuthToken);
       dispatch('get');
-      if (identifier_hash) {
+      if (identifierHash || widgetAuthToken) {
         dispatch('conversation/clearConversations', {}, { root: true });
         dispatch('conversation/fetchOldConversations', {}, { root: true });
         dispatch('conversationAttributes/getAttributes', {}, { root: true });
       }
     } catch (error) {
-      const data =
-        error && error.response && error.response.data
-          ? error.response.data
-          : error;
-      IFrameHelper.sendMessage({
-        event: 'error',
-        errorType: SET_USER_ERROR,
-        data,
-      });
+      const data = parseErrorData(error);
+      sendMessage({ event: 'error', errorType: SET_USER_ERROR, data });
     }
   },
   setCustomAttributes: async (_, customAttributes = {}) => {
diff --git a/app/javascript/widget/store/modules/specs/contact/actions.spec.js b/app/javascript/widget/store/modules/specs/contact/actions.spec.js
index aeeebf7bd..a2d84ad59 100644
--- a/app/javascript/widget/store/modules/specs/contact/actions.spec.js
+++ b/app/javascript/widget/store/modules/specs/contact/actions.spec.js
@@ -1,21 +1,26 @@
 import { API } from 'widget/helpers/axios';
+import { sendMessage } from 'widget/helpers/utils';
 import { actions } from '../../contacts';
-
 const commit = jest.fn();
 const dispatch = jest.fn();
 jest.mock('widget/helpers/axios');
+jest.mock('widget/helpers/utils', () => ({
+  sendMessage: jest.fn(),
+}));
 
 describe('#actions', () => {
-  describe('#update', () => {
-    it('sends correct actions', async () => {
+  describe('#setUser', () => {
+    it('sends correct actions if contact object is refreshed ', async () => {
       const user = {
         email: 'thoma@sphadikam.com',
         name: 'Adu Thoma',
         avatar_url: '',
-        identifier_hash: 'random_hex_identifier_hash',
       };
-      API.patch.mockResolvedValue({ data: { pubsub_token: 'token' } });
-      await actions.update({ commit, dispatch }, { identifier: 1, user });
+      API.patch.mockResolvedValue({ data: { widget_auth_token: 'token' } });
+      await actions.setUser({ commit, dispatch }, { identifier: 1, user });
+      expect(sendMessage.mock.calls).toEqual([
+        [{ data: { widgetAuthToken: 'token' }, event: 'setAuthCookie' }],
+      ]);
       expect(commit.mock.calls).toEqual([]);
       expect(dispatch.mock.calls).toEqual([
         ['get'],
@@ -24,5 +29,52 @@ describe('#actions', () => {
         ['conversationAttributes/getAttributes', {}, { root: true }],
       ]);
     });
+
+    it('sends correct actions if identifierHash is passed ', async () => {
+      const user = {
+        email: 'thoma@sphadikam.com',
+        name: 'Adu Thoma',
+        avatar_url: '',
+        identifier_hash: '12345',
+      };
+      API.patch.mockResolvedValue({ data: { id: 1 } });
+      await actions.setUser({ commit, dispatch }, { identifier: 1, user });
+      expect(sendMessage.mock.calls).toEqual([]);
+      expect(commit.mock.calls).toEqual([]);
+      expect(dispatch.mock.calls).toEqual([
+        ['get'],
+        ['conversation/clearConversations', {}, { root: true }],
+        ['conversation/fetchOldConversations', {}, { root: true }],
+        ['conversationAttributes/getAttributes', {}, { root: true }],
+      ]);
+    });
+
+    it('does not call sendMessage if contact object is not refreshed ', async () => {
+      const user = {
+        email: 'thoma@sphadikam.com',
+        name: 'Adu Thoma',
+        avatar_url: '',
+      };
+      API.patch.mockResolvedValue({ data: { id: 1 } });
+      await actions.setUser({ commit, dispatch }, { identifier: 1, user });
+      expect(sendMessage.mock.calls).toEqual([]);
+      expect(commit.mock.calls).toEqual([]);
+      expect(dispatch.mock.calls).toEqual([['get']]);
+    });
+  });
+
+  describe('#update', () => {
+    it('sends correct actions', async () => {
+      const user = {
+        email: 'thoma@sphadikam.com',
+        name: 'Adu Thoma',
+        avatar_url: '',
+        identifier_hash: 'random_hex_identifier_hash',
+      };
+      API.patch.mockResolvedValue({ data: { id: 1 } });
+      await actions.update({ commit, dispatch }, { identifier: 1, user });
+      expect(commit.mock.calls).toEqual([]);
+      expect(dispatch.mock.calls).toEqual([['get']]);
+    });
   });
 });
diff --git a/app/views/api/v1/widget/contacts/set_user.json.jbuilder b/app/views/api/v1/widget/contacts/set_user.json.jbuilder
new file mode 100644
index 000000000..8c770fe4f
--- /dev/null
+++ b/app/views/api/v1/widget/contacts/set_user.json.jbuilder
@@ -0,0 +1,5 @@
+json.id @contact.id
+json.name @contact.name
+json.email @contact.email
+json.phone_number @contact.phone_number
+json.widget_auth_token @widget_auth_token if @widget_auth_token.present?
diff --git a/config/routes.rb b/config/routes.rb
index 5d1718841..81538c007 100644
--- a/config/routes.rb
+++ b/config/routes.rb
@@ -199,6 +199,7 @@ Rails.application.routes.draw do
         resource :contact, only: [:show, :update] do
           collection do
             post :destroy_custom_attributes
+            patch :set_user
           end
         end
         resources :inbox_members, only: [:index]
diff --git a/spec/actions/contact_identify_action_spec.rb b/spec/actions/contact_identify_action_spec.rb
index ad109a0ea..00599c65d 100644
--- a/spec/actions/contact_identify_action_spec.rb
+++ b/spec/actions/contact_identify_action_spec.rb
@@ -48,13 +48,22 @@ describe ::ContactIdentifyAction do
 
     context 'when contact with same email exists' do
       it 'merges the current contact to email contact' do
-        existing_email_contact = create(:contact, account: account, email: 'test@test.com')
-        params = { email: 'test@test.com' }
+        existing_email_contact = create(:contact, account: account, email: 'test@test.com', name: 'old name')
+        params = { name: 'new name', email: 'test@test.com' }
         result = described_class.new(contact: contact, params: params).perform
         expect(result.id).to eq existing_email_contact.id
-        expect(result.name).to eq existing_email_contact.name
+        expect(result.name).to eq 'new name'
         expect { contact.reload }.to raise_error(ActiveRecord::RecordNotFound)
       end
+
+      it 'will not merge the current contact to email contact if identifier of email contact is different' do
+        existing_email_contact = create(:contact, account: account, identifier: '1', email: 'test@test.com')
+        params = { identifier: '2', email: 'test@test.com' }
+        result = described_class.new(contact: contact, params: params).perform
+        expect(result.id).not_to eq existing_email_contact.id
+        expect(result.identifier).to eq params[:identifier]
+        expect(result.email).to eq nil
+      end
     end
 
     context 'when contact with same phone_number exists' do
@@ -66,6 +75,24 @@ describe ::ContactIdentifyAction do
         expect(result.name).to eq existing_phone_number_contact.name
         expect { contact.reload }.to raise_error(ActiveRecord::RecordNotFound)
       end
+
+      it 'will not merge the current contact to phone contact if identifier of phone contact is different' do
+        existing_phone_number_contact = create(:contact, account: account, identifier: '1', phone_number: '+919999888877')
+        params = { identifier: '2', phone_number: '+919999888877' }
+        result = described_class.new(contact: contact, params: params).perform
+        expect(result.id).not_to eq existing_phone_number_contact.id
+        expect(result.identifier).to eq params[:identifier]
+        expect(result.email).to eq nil
+      end
+
+      it 'will not overide the phone contacts email when params contains different email' do
+        existing_phone_number_contact = create(:contact, account: account, email: '1@test.com', phone_number: '+919999888877')
+        params = { email: '2@test.com', phone_number: '+919999888877' }
+        result = described_class.new(contact: contact, params: params).perform
+        expect(result.id).not_to eq existing_phone_number_contact.id
+        expect(result.email).to eq params[:email]
+        expect(result.phone_number).to eq nil
+      end
     end
 
     context 'when contacts with blank identifiers exist and identify action is called with blank identifier' do
@@ -77,5 +104,16 @@ describe ::ContactIdentifyAction do
         expect(result.name).to eq 'new name'
       end
     end
+
+    context 'when retain_original_contact_name is set to true' do
+      it 'will not update the name of the existing contact' do
+        existing_email_contact = create(:contact, account: account, name: 'old name', email: 'test@test.com')
+        params = { email: 'test@test.com', name: 'new name' }
+        result = described_class.new(contact: contact, params: params, retain_original_contact_name: true).perform
+        expect(result.id).to eq existing_email_contact.id
+        expect(result.name).to eq 'old name'
+        expect { contact.reload }.to raise_error(ActiveRecord::RecordNotFound)
+      end
+    end
   end
 end
diff --git a/spec/controllers/api/v1/widget/contacts_controller_spec.rb b/spec/controllers/api/v1/widget/contacts_controller_spec.rb
index 02adcd0f0..0a29d8285 100644
--- a/spec/controllers/api/v1/widget/contacts_controller_spec.rb
+++ b/spec/controllers/api/v1/widget/contacts_controller_spec.rb
@@ -82,12 +82,34 @@ RSpec.describe '/api/v1/widget/contacts', type: :request do
         expect(response).to have_http_status(:success)
       end
     end
+  end
+
+  describe 'PATCH /api/v1/widget/contact/set_user' do
+    let(:params) { { website_token: web_widget.website_token, identifier: 'test' } }
+    let(:web_widget) { create(:channel_widget, account: account, hmac_mandatory: true) }
+    let(:correct_identifier_hash) { OpenSSL::HMAC.hexdigest('sha256', web_widget.hmac_token, params[:identifier].to_s) }
+    let(:incorrect_identifier_hash) { 'test' }
+
+    context 'when the current contact identifier is different from param identifier' do
+      before do
+        contact.update(identifier: 'random')
+      end
+
+      it 'return a new contact for the provided identifier' do
+        patch '/api/v1/widget/contact/set_user',
+              params: params.merge(identifier_hash: correct_identifier_hash),
+              headers: { 'X-Auth-Token' => token },
+              as: :json
+
+        body = JSON.parse(response.body)
+        expect(body['id']).not_to eq(contact.id)
+        expect(body['widget_auth_token']).not_to eq(nil)
+        expect(Contact.find(body['id']).contact_inboxes.first.hmac_verified?).to eq(true)
+      end
+    end
 
     context 'with mandatory hmac' do
       let(:identify_action) { double }
-      let(:web_widget) { create(:channel_widget, account: account, hmac_mandatory: true) }
-      let(:correct_identifier_hash) { OpenSSL::HMAC.hexdigest('sha256', web_widget.hmac_token, params[:identifier].to_s) }
-      let(:incorrect_identifier_hash) { 'test' }
 
       before do
         allow(ContactIdentifyAction).to receive(:new).and_return(identify_action)
@@ -95,7 +117,7 @@ RSpec.describe '/api/v1/widget/contacts', type: :request do
       end
 
       it 'returns success when correct identifier hash is provided' do
-        patch '/api/v1/widget/contact',
+        patch '/api/v1/widget/contact/set_user',
               params: params.merge(identifier_hash: correct_identifier_hash),
               headers: { 'X-Auth-Token' => token },
               as: :json
@@ -104,7 +126,7 @@ RSpec.describe '/api/v1/widget/contacts', type: :request do
       end
 
       it 'returns error when incorrect identifier hash is provided' do
-        patch '/api/v1/widget/contact',
+        patch '/api/v1/widget/contact/set_user',
               params: params.merge(identifier_hash: incorrect_identifier_hash),
               headers: { 'X-Auth-Token' => token },
               as: :json
@@ -113,7 +135,7 @@ RSpec.describe '/api/v1/widget/contacts', type: :request do
       end
 
       it 'returns error when identifier hash is blank' do
-        patch '/api/v1/widget/contact',
+        patch '/api/v1/widget/contact/set_user',
               params: params.merge(identifier_hash: ''),
               headers: { 'X-Auth-Token' => token },
               as: :json
@@ -122,7 +144,7 @@ RSpec.describe '/api/v1/widget/contacts', type: :request do
       end
 
       it 'returns error when identifier hash is not provided' do
-        patch '/api/v1/widget/contact',
+        patch '/api/v1/widget/contact/set_user',
               params: params,
               headers: { 'X-Auth-Token' => token },
               as: :json