diff --git a/app/javascript/dashboard/api/integrations/openapi.js b/app/javascript/dashboard/api/integrations/openapi.js
index 3fcf241ee..9f075a9ef 100644
--- a/app/javascript/dashboard/api/integrations/openapi.js
+++ b/app/javascript/dashboard/api/integrations/openapi.js
@@ -30,25 +30,23 @@ class OpenAIAPI extends ApiClient {
       'reply_suggestion',
       'label_suggestion',
     ];
-
-    /**
-     * The message events supported by the API.
-     * @type {string[]}
-     */
-    this.message_events = ['rephrase'];
   }
 
   /**
    * Processes an event using the OpenAI API.
    * @param {Object} options - The options for the event.
-   * @param {string} [options.type='rephrase'] - The type of event to process.
+   * @param {string} [options.type='improve'] - The type of event to process.
    * @param {string} [options.content] - The content of the event.
    * @param {string} [options.tone] - The tone of the event.
    * @param {string} [options.conversationId] - The ID of the conversation to process the event for.
    * @param {string} options.hookId - The ID of the hook to use for processing the event.
+   * @param {AbortSignal} [signal] - AbortSignal to cancel the request.
    * @returns {Promise} A promise that resolves with the result of the event processing.
    */
-  processEvent({ type = 'rephrase', content, tone, conversationId, hookId }) {
+  processEvent(
+    { type = 'improve', content, tone, conversationId, hookId },
+    signal
+  ) {
     /**
      * @type {ConversationMessageData}
      */
@@ -69,12 +67,16 @@ class OpenAIAPI extends ApiClient {
       };
     }
 
-    return axios.post(`${this.url}/hooks/${hookId}/process_event`, {
-      event: {
-        name: type,
-        data,
+    return axios.post(
+      `${this.url}/hooks/${hookId}/process_event`,
+      {
+        event: {
+          name: type,
+          data,
+        },
       },
-    });
+      { signal }
+    );
   }
 }
 
diff --git a/app/javascript/dashboard/assets/scss/_next-colors.scss b/app/javascript/dashboard/assets/scss/_next-colors.scss
index f23c01d42..4d7975a32 100644
--- a/app/javascript/dashboard/assets/scss/_next-colors.scss
+++ b/app/javascript/dashboard/assets/scss/_next-colors.scss
@@ -94,6 +94,19 @@
     --gray-11: 100 100 100;
     --gray-12: 32 32 32;
 
+    --violet-1: 253 252 254;
+    --violet-2: 250 248 255;
+    --violet-3: 244 240 254;
+    --violet-4: 235 228 255;
+    --violet-5: 225 217 255;
+    --violet-6: 212 202 254;
+    --violet-7: 194 178 248;
+    --violet-8: 169 153 236;
+    --violet-9: 110 86 207;
+    --violet-10: 100 84 196;
+    --violet-11: 101 85 183;
+    --violet-12: 47 38 95;
+
     --background-color: 253 253 253;
     --text-blue: 8 109 224;
     --border-container: 236 236 236;
@@ -209,6 +222,19 @@
     --gray-11: 180 180 180;
     --gray-12: 238 238 238;
 
+    --violet-1: 20 17 31;
+    --violet-2: 27 21 37;
+    --violet-3: 41 31 67;
+    --violet-4: 50 37 85;
+    --violet-5: 60 46 105;
+    --violet-6: 71 56 135;
+    --violet-7: 86 70 151;
+    --violet-8: 110 86 171;
+    --violet-9: 110 86 207;
+    --violet-10: 125 109 217;
+    --violet-11: 169 153 236;
+    --violet-12: 226 221 254;
+
     --background-color: 18 18 19;
     --border-strong: 52 52 52;
     --border-weak: 38 38 42;
diff --git a/app/javascript/dashboard/components/widgets/AIAssistanceModal.vue b/app/javascript/dashboard/components/widgets/AIAssistanceModal.vue
index 04bba8f59..3cd945208 100644
--- a/app/javascript/dashboard/components/widgets/AIAssistanceModal.vue
+++ b/app/javascript/dashboard/components/widgets/AIAssistanceModal.vue
@@ -48,7 +48,7 @@ export default {
       this.$emit('close');
     },
 
-    async generateAIContent(type = 'rephrase') {
+    async generateAIContent(type = 'improve') {
       this.isGenerating = true;
       this.generatedContent = await this.processEvent(type);
       this.isGenerating = false;
diff --git a/app/javascript/dashboard/components/widgets/AttachmentsPreview.vue b/app/javascript/dashboard/components/widgets/AttachmentsPreview.vue
index 75afb5263..c924dd65d 100644
--- a/app/javascript/dashboard/components/widgets/AttachmentsPreview.vue
+++ b/app/javascript/dashboard/components/widgets/AttachmentsPreview.vue
@@ -46,11 +46,11 @@ const fileName = file => {
 </script>
 
 <template>
-  <div class="flex overflow-auto max-h-[12.5rem]">
+  <div class="flex flex-wrap gap-y-1 gap-x-2 overflow-auto max-h-[12.5rem]">
     <div
       v-for="(attachment, index) in nonRecordedAudioAttachments"
       :key="attachment.id"
-      class="flex items-center p-1 bg-n-slate-3 gap-1 rounded-md w-[15rem] mb-1"
+      class="flex items-center p-1 bg-n-slate-3 gap-1 rounded-md w-[15rem]"
     >
       <div class="max-w-[4rem] flex-shrink-0 w-6 flex items-center">
         <img
diff --git a/app/javascript/dashboard/components/widgets/WootWriter/CopilotEditor.vue b/app/javascript/dashboard/components/widgets/WootWriter/CopilotEditor.vue
new file mode 100644
index 000000000..782a7336d
--- /dev/null
+++ b/app/javascript/dashboard/components/widgets/WootWriter/CopilotEditor.vue
@@ -0,0 +1,246 @@
+<script setup>
+import { ref, computed, watch, onMounted, useTemplateRef } from 'vue';
+
+import {
+  buildMessageSchema,
+  buildEditor,
+  EditorView,
+  MessageMarkdownTransformer,
+  MessageMarkdownSerializer,
+  EditorState,
+  Selection,
+} from '@chatwoot/prosemirror-schema';
+
+import { useMessageFormatter } from 'shared/composables/useMessageFormatter';
+
+import NextButton from 'dashboard/components-next/button/Button.vue';
+
+const props = defineProps({
+  modelValue: { type: String, default: '' },
+  editorId: { type: String, default: '' },
+  placeholder: {
+    type: String,
+    default: 'Give copilot additional prompts, or ask anything else...',
+  },
+  generatedContent: { type: String, default: '' },
+  autofocus: {
+    type: Boolean,
+    default: true,
+  },
+  isPopout: {
+    type: Boolean,
+    default: false,
+  },
+});
+
+const emit = defineEmits([
+  'blur',
+  'input',
+  'update:modelValue',
+  'keyup',
+  'focus',
+  'keydown',
+  'send',
+]);
+
+const { formatMessage } = useMessageFormatter();
+
+// Minimal schema with no marks or nodes for copilot input
+const copilotSchema = buildMessageSchema([], []);
+
+const createState = (
+  content,
+  placeholder,
+  plugins = [],
+  enabledMenuOptions = []
+) => {
+  return EditorState.create({
+    doc: new MessageMarkdownTransformer(copilotSchema).parse(content),
+    plugins: buildEditor({
+      schema: copilotSchema,
+      placeholder,
+      plugins,
+      enabledMenuOptions,
+    }),
+  });
+};
+
+// we don't need them to be reactive
+// It cases weird issues where the objects are proxied
+// and then the editor doesn't work as expected
+let editorView = null;
+let state = null;
+
+// reactive data
+const isTextSelected = ref(false); // Tracks text selection and prevents unnecessary re-renders on mouse selection
+
+// element refs
+const editor = useTemplateRef('editor');
+
+function contentFromEditor() {
+  if (editorView) {
+    return MessageMarkdownSerializer.serialize(editorView.state.doc);
+  }
+  return '';
+}
+
+function focusEditorInputField() {
+  const { tr } = editorView.state;
+  const selection = Selection.atEnd(tr.doc);
+
+  editorView.dispatch(tr.setSelection(selection));
+  editorView.focus();
+}
+
+function emitOnChange() {
+  emit('update:modelValue', contentFromEditor());
+  emit('input', contentFromEditor());
+}
+
+function onKeyup() {
+  emit('keyup');
+}
+
+function onKeydown() {
+  emit('keydown');
+}
+
+function onBlur() {
+  emit('blur');
+}
+
+function onFocus() {
+  emit('focus');
+}
+
+function checkSelection(editorState) {
+  const hasSelection = editorState.selection.from !== editorState.selection.to;
+  if (hasSelection === isTextSelected.value) return;
+  isTextSelected.value = hasSelection;
+}
+
+// computed properties
+const plugins = computed(() => {
+  return [];
+});
+
+const enabledMenuOptions = computed(() => {
+  return [];
+});
+
+function reloadState() {
+  state = createState(
+    props.modelValue,
+    props.placeholder,
+    plugins.value,
+    enabledMenuOptions.value
+  );
+  editorView.updateState(state);
+  focusEditorInputField();
+}
+
+function createEditorView() {
+  editorView = new EditorView(editor.value, {
+    state: state,
+    dispatchTransaction: tx => {
+      state = state.apply(tx);
+      editorView.updateState(state);
+      if (tx.docChanged) {
+        emitOnChange();
+      }
+      checkSelection(state);
+    },
+    handleDOMEvents: {
+      keyup: onKeyup,
+      focus: onFocus,
+      blur: onBlur,
+      keydown: onKeydown,
+    },
+  });
+}
+
+function handleSubmit() {
+  emit('send');
+}
+
+// watchers
+watch(
+  computed(() => props.modelValue),
+  (newValue = '') => {
+    if (newValue !== contentFromEditor()) {
+      reloadState();
+    }
+  }
+);
+
+watch(
+  computed(() => props.editorId),
+  () => {
+    reloadState();
+  }
+);
+
+// lifecycle
+onMounted(() => {
+  state = createState(
+    props.modelValue,
+    props.placeholder,
+    plugins.value,
+    enabledMenuOptions.value
+  );
+
+  createEditorView();
+  editorView.updateState(state);
+
+  if (props.autofocus) {
+    focusEditorInputField();
+  }
+});
+</script>
+
+<template>
+  <div class="space-y-2 mb-4">
+    <div
+      class="overflow-y-auto"
+      :class="{ 'max-h-96': isPopout, 'max-h-56': !isPopout }"
+    >
+      <p
+        v-dompurify-html="formatMessage(generatedContent, false)"
+        class="text-n-iris-12 text-sm prose-sm font-normal !mb-4 underline decoration-n-iris-8 underline-offset-auto decoration-solid decoration-[10%]"
+      />
+    </div>
+    <div class="editor-root relative editor--copilot space-x-2">
+      <div ref="editor" />
+      <div class="flex items-center justify-end absolute right-2 bottom-2">
+        <NextButton
+          class="bg-n-iris-9 text-white !rounded-full"
+          icon="i-lucide-arrow-up"
+          solid
+          sm
+          @click="handleSubmit"
+        />
+      </div>
+    </div>
+  </div>
+</template>
+
+<style lang="scss">
+@import '@chatwoot/prosemirror-schema/src/styles/base.scss';
+
+.editor--copilot {
+  @apply bg-n-iris-5 rounded;
+
+  .ProseMirror-woot-style {
+    min-height: 5rem;
+    max-height: 7.5rem !important;
+    overflow: auto;
+    @apply px-2 !important;
+
+    .empty-node {
+      &::before {
+        @apply text-n-iris-9 dark:text-n-iris-11;
+      }
+    }
+  }
+}
+</style>
diff --git a/app/javascript/dashboard/components/widgets/WootWriter/CopilotMenuBar.vue b/app/javascript/dashboard/components/widgets/WootWriter/CopilotMenuBar.vue
new file mode 100644
index 000000000..22dc5d0d2
--- /dev/null
+++ b/app/javascript/dashboard/components/widgets/WootWriter/CopilotMenuBar.vue
@@ -0,0 +1,254 @@
+<script setup>
+import { computed, useTemplateRef } from 'vue';
+import { useI18n } from 'vue-i18n';
+import { useElementSize, useWindowSize } from '@vueuse/core';
+import { useMapGetter } from 'dashboard/composables/store';
+import { REPLY_EDITOR_MODES } from 'dashboard/components/widgets/WootWriter/constants';
+import { useAI } from 'dashboard/composables/useAI';
+import Button from 'dashboard/components-next/button/Button.vue';
+import DropdownBody from 'next/dropdown-menu/base/DropdownBody.vue';
+
+import Icon from 'next/icon/Icon.vue';
+
+const props = defineProps({
+  hasSelection: {
+    type: Boolean,
+    default: false,
+  },
+});
+
+const emit = defineEmits(['executeCopilotAction']);
+
+const { t } = useI18n();
+
+const { draftMessage } = useAI();
+
+const replyMode = useMapGetter('draftMessages/getReplyEditorMode');
+
+// Selection-based menu items (when text is selected)
+const menuItems = computed(() => {
+  const items = [];
+  if (props.hasSelection) {
+    items.push({
+      label: t(
+        'INTEGRATION_SETTINGS.OPEN_AI.REPLY_OPTIONS.IMPROVE_REPLY_SELECTION'
+      ),
+      key: 'improve_selection',
+      icon: 'i-fluent-pen-sparkle-24-regular',
+    });
+  } else if (
+    replyMode.value === REPLY_EDITOR_MODES.REPLY &&
+    draftMessage.value
+  ) {
+    items.push({
+      label: t('INTEGRATION_SETTINGS.OPEN_AI.REPLY_OPTIONS.IMPROVE_REPLY'),
+      key: 'improve',
+      icon: 'i-fluent-pen-sparkle-24-regular',
+    });
+  }
+
+  if (draftMessage.value) {
+    items.push(
+      {
+        label: t(
+          'INTEGRATION_SETTINGS.OPEN_AI.REPLY_OPTIONS.CHANGE_TONE.TITLE'
+        ),
+        key: 'change_tone',
+        icon: 'i-fluent-sound-wave-circle-sparkle-24-regular',
+        subMenuItems: [
+          {
+            label: t(
+              'INTEGRATION_SETTINGS.OPEN_AI.REPLY_OPTIONS.CHANGE_TONE.OPTIONS.PROFESSIONAL'
+            ),
+            key: 'professional',
+          },
+          {
+            label: t(
+              'INTEGRATION_SETTINGS.OPEN_AI.REPLY_OPTIONS.CHANGE_TONE.OPTIONS.CASUAL'
+            ),
+            key: 'casual',
+          },
+          {
+            label: t(
+              'INTEGRATION_SETTINGS.OPEN_AI.REPLY_OPTIONS.CHANGE_TONE.OPTIONS.STRAIGHTFORWARD'
+            ),
+            key: 'straightforward',
+          },
+          {
+            label: t(
+              'INTEGRATION_SETTINGS.OPEN_AI.REPLY_OPTIONS.CHANGE_TONE.OPTIONS.CONFIDENT'
+            ),
+            key: 'confident',
+          },
+          {
+            label: t(
+              'INTEGRATION_SETTINGS.OPEN_AI.REPLY_OPTIONS.CHANGE_TONE.OPTIONS.FRIENDLY'
+            ),
+            key: 'friendly',
+          },
+        ],
+      },
+      {
+        label: t('INTEGRATION_SETTINGS.OPEN_AI.REPLY_OPTIONS.GRAMMAR'),
+        key: 'fix_spelling_grammar',
+        icon: 'i-fluent-flow-sparkle-24-regular',
+      }
+    );
+  }
+  return items;
+});
+
+const generalMenuItems = computed(() => {
+  const items = [];
+  if (replyMode.value === REPLY_EDITOR_MODES.REPLY) {
+    items.push({
+      label: t('INTEGRATION_SETTINGS.OPEN_AI.REPLY_OPTIONS.SUGGESTION'),
+      key: 'reply_suggestion',
+      icon: 'i-fluent-chat-sparkle-16-regular',
+    });
+  }
+
+  if (replyMode.value === REPLY_EDITOR_MODES.NOTE || true) {
+    items.push({
+      label: t('INTEGRATION_SETTINGS.OPEN_AI.REPLY_OPTIONS.SUMMARIZE'),
+      key: 'summarize',
+      icon: 'i-fluent-text-bullet-list-square-sparkle-32-regular',
+    });
+  }
+
+  items.push({
+    label: t('INTEGRATION_SETTINGS.OPEN_AI.REPLY_OPTIONS.ASK_COPILOT'),
+    key: 'ask_copilot',
+    icon: 'i-fluent-circle-sparkle-24-regular',
+  });
+
+  return items;
+});
+
+const menuRef = useTemplateRef('menuRef');
+const { height: menuHeight } = useElementSize(menuRef);
+const { width: windowWidth } = useWindowSize();
+
+// Smart submenu positioning based on available space
+const submenuPosition = computed(() => {
+  const el = menuRef.value?.$el;
+  if (!el) return 'ltr:right-full rtl:left-full';
+
+  const { left, right } = el.getBoundingClientRect();
+  const SUBMENU_WIDTH = 200;
+  const spaceRight = (windowWidth.value ?? window.innerWidth) - right;
+  const spaceLeft = left;
+
+  // Prefer right, fallback to side with more space
+  const showRight = spaceRight >= SUBMENU_WIDTH || spaceRight >= spaceLeft;
+
+  return showRight ? 'left-full' : 'right-full';
+});
+
+// Computed style for selection menu positioning (only dynamic top offset)
+const selectionMenuStyle = computed(() => {
+  // Dynamically calculate offset based on actual menu height + 10px gap
+  const dynamicOffset = menuHeight.value > 0 ? menuHeight.value + 10 : 60;
+
+  return {
+    top: `calc(var(--selection-top) - ${dynamicOffset}px)`,
+  };
+});
+
+const handleMenuItemClick = item => {
+  // For items with submenus, do nothing on click (hover will show submenu)
+  if (!item.subMenuItems) {
+    emit('executeCopilotAction', item.key);
+  }
+};
+
+const handleSubMenuItemClick = (parentItem, subItem) => {
+  emit('executeCopilotAction', subItem.key);
+};
+</script>
+
+<template>
+  <DropdownBody
+    ref="menuRef"
+    class="min-w-56 [&>ul]:gap-3 z-50 [&>ul]:px-4 [&>ul]:py-3.5"
+    :class="{ 'selection-menu': hasSelection }"
+    :style="hasSelection ? selectionMenuStyle : {}"
+  >
+    <div v-if="menuItems.length > 0" class="flex flex-col items-start gap-2.5">
+      <div
+        v-for="item in menuItems"
+        :key="item.key"
+        class="w-full relative group/submenu"
+      >
+        <Button
+          :label="item.label"
+          :icon="item.icon"
+          slate
+          link
+          sm
+          class="hover:!no-underline text-n-slate-12 font-normal text-xs w-full !justify-start"
+          @click="handleMenuItemClick(item)"
+        >
+          <template v-if="item.subMenuItems" #default>
+            <div class="flex items-center gap-1 justify-between w-full">
+              <span class="min-w-0 truncate">{{ item.label }}</span>
+              <Icon
+                icon="i-lucide-chevron-right"
+                class="text-n-slate-10 size-3"
+              />
+            </div>
+          </template>
+        </Button>
+
+        <!-- Hover Submenu -->
+        <DropdownBody
+          v-if="item.subMenuItems"
+          class="group-hover/submenu:block hidden [&>ul]:gap-2 [&>ul]:px-3 [&>ul]:py-2.5 [&>ul]:dark:!border-n-strong max-h-[15rem] min-w-32 z-10 top-0"
+          :class="submenuPosition"
+        >
+          <Button
+            v-for="subItem in item.subMenuItems"
+            :key="subItem.key + subItem.label"
+            :label="subItem.label"
+            slate
+            link
+            sm
+            class="hover:!no-underline text-n-slate-12 font-normal text-xs w-full !justify-start mb-1"
+            @click="handleSubMenuItemClick(item, subItem)"
+          />
+        </DropdownBody>
+      </div>
+    </div>
+
+    <div v-if="menuItems.length > 0" class="h-px w-full bg-n-strong" />
+
+    <div class="flex flex-col items-start gap-3">
+      <Button
+        v-for="(item, index) in generalMenuItems"
+        :key="index"
+        :label="item.label"
+        :icon="item.icon"
+        slate
+        link
+        sm
+        class="hover:!no-underline text-n-slate-12 font-normal text-xs w-full !justify-start"
+        @click="handleMenuItemClick(item)"
+      />
+    </div>
+  </DropdownBody>
+</template>
+
+<style scoped lang="scss">
+.selection-menu {
+  position: absolute !important;
+
+  // Default/LTR: position from left
+  left: var(--selection-left);
+
+  // RTL: position from right instead
+  [dir='rtl'] & {
+    left: auto;
+    right: var(--selection-right);
+  }
+}
+</style>
diff --git a/app/javascript/dashboard/components/widgets/WootWriter/CopilotReplyBottomPanel.vue b/app/javascript/dashboard/components/widgets/WootWriter/CopilotReplyBottomPanel.vue
new file mode 100644
index 000000000..6336d56b2
--- /dev/null
+++ b/app/javascript/dashboard/components/widgets/WootWriter/CopilotReplyBottomPanel.vue
@@ -0,0 +1,49 @@
+<script setup>
+import NextButton from 'dashboard/components-next/button/Button.vue';
+
+defineProps({
+  isGeneratingContent: {
+    type: Boolean,
+    default: false,
+  },
+  isPrivate: {
+    type: Boolean,
+    default: false,
+  },
+});
+
+const emit = defineEmits(['submit', 'cancel']);
+
+const handleCancel = () => {
+  emit('cancel');
+};
+
+const handleSubmit = () => {
+  emit('submit');
+};
+</script>
+
+<template>
+  <div
+    class="flex justify-between items-center p-3 border-t"
+    :class="{ 'border-n-weak': !isPrivate, 'border-n-amber-12/5': isPrivate }"
+  >
+    <NextButton
+      label="Discard"
+      slate
+      link
+      class="!px-1 hover:!no-underline"
+      sm
+      :disabled="isGeneratingContent"
+      @click="handleCancel"
+    />
+    <NextButton
+      label="Accept"
+      class="bg-n-iris-9 text-white"
+      solid
+      sm
+      :disabled="isGeneratingContent"
+      @click="handleSubmit"
+    />
+  </div>
+</template>
diff --git a/app/javascript/dashboard/components/widgets/WootWriter/Editor.vue b/app/javascript/dashboard/components/widgets/WootWriter/Editor.vue
index 7a2a489ac..2aa92fb5b 100644
--- a/app/javascript/dashboard/components/widgets/WootWriter/Editor.vue
+++ b/app/javascript/dashboard/components/widgets/WootWriter/Editor.vue
@@ -16,6 +16,7 @@ import KeyboardEmojiSelector from './keyboardEmojiSelector.vue';
 import TagAgents from '../conversation/TagAgents.vue';
 import VariableList from '../conversation/VariableList.vue';
 import TagTools from '../conversation/TagTools.vue';
+import CopilotMenuBar from './CopilotMenuBar.vue';
 
 import { useEmitter } from 'dashboard/composables/emitter';
 import { useI18n } from 'vue-i18n';
@@ -23,6 +24,7 @@ import { useKeyboardEvents } from 'dashboard/composables/useKeyboardEvents';
 import { useTrack } from 'dashboard/composables';
 import { useUISettings } from 'dashboard/composables/useUISettings';
 import { useAlert } from 'dashboard/composables';
+import { vOnClickOutside } from '@vueuse/components';
 
 import { BUS_EVENTS } from 'shared/constants/busEvents';
 import { CONVERSATION_EVENTS } from 'dashboard/helper/AnalyticsHelper/events';
@@ -54,6 +56,7 @@ import {
   getFormattingForEditor,
   getSelectionCoords,
   calculateMenuPosition,
+  stripUnsupportedFormatting,
   getEffectiveChannelType,
 } from 'dashboard/helper/editorHelper';
 import {
@@ -99,6 +102,7 @@ const emit = defineEmits([
   'focus',
   'input',
   'update:modelValue',
+  'executeCopilotAction',
 ]);
 
 const { t } = useI18n();
@@ -106,6 +110,7 @@ const { t } = useI18n();
 const TYPING_INDICATOR_IDLE_TIME = 4000;
 const MAXIMUM_FILE_UPLOAD_SIZE = 4; // in MB
 const DEFAULT_FORMATTING = 'Context::Default';
+const PRIVATE_NOTE_FORMATTING = 'Context::PrivateNote';
 
 const effectiveChannelType = computed(() =>
   getEffectiveChannelType(props.channelType, props.medium)
@@ -115,7 +120,7 @@ const editorSchema = computed(() => {
   if (!props.channelType) return messageSchema;
 
   const formatType = props.isPrivate
-    ? DEFAULT_FORMATTING
+    ? PRIVATE_NOTE_FORMATTING
     : effectiveChannelType.value;
   const formatting = getFormattingForEditor(formatType);
   return buildMessageSchema(formatting.marks, formatting.nodes);
@@ -123,7 +128,7 @@ const editorSchema = computed(() => {
 
 const editorMenuOptions = computed(() => {
   const formatType = props.isPrivate
-    ? DEFAULT_FORMATTING
+    ? PRIVATE_NOTE_FORMATTING
     : effectiveChannelType.value || DEFAULT_FORMATTING;
   const formatting = getFormattingForEditor(formatType);
   return formatting.menu;
@@ -131,8 +136,11 @@ const editorMenuOptions = computed(() => {
 
 const createState = (content, placeholder, plugins = [], methods = {}) => {
   const schema = editorSchema.value;
+  // Strip unsupported formatting before parsing to ensure content is compatible
+  // with the current schema for proper rendering in the editor
+  const sanitizedContent = stripUnsupportedFormatting(content, schema);
   return EditorState.create({
-    doc: new MessageMarkdownTransformer(schema).parse(content),
+    doc: new MessageMarkdownTransformer(schema).parse(sanitizedContent),
     plugins: buildEditor({
       schema,
       placeholder,
@@ -182,6 +190,21 @@ const editorRoot = useTemplateRef('editorRoot');
 const imageUpload = useTemplateRef('imageUpload');
 const editor = useTemplateRef('editor');
 
+const handleCopilotAction = actionKey => {
+  if (actionKey === 'improve_selection' && editorView?.state) {
+    const { from, to } = editorView.state.selection;
+    const selectedText = editorView.state.doc.textBetween(from, to).trim();
+
+    if (from !== to && selectedText) {
+      emit('executeCopilotAction', 'improve', selectedText);
+    }
+  } else {
+    emit('executeCopilotAction', actionKey);
+  }
+
+  showSelectionMenu.value = false;
+};
+
 const contentFromEditor = () => {
   return MessageMarkdownSerializer.serialize(editorView.state.doc);
 };
@@ -364,13 +387,23 @@ function openFileBrowser() {
   imageUpload.value.click();
 }
 
+function handleCopilotClick() {
+  showSelectionMenu.value = !showSelectionMenu.value;
+}
+
+function handleClickOutside(event) {
+  // Check if the clicked element or its parents have the ignored class
+  if (event.target.closest('.ProseMirror-copilot')) return;
+  showSelectionMenu.value = false;
+}
+
 function reloadState(content = props.modelValue) {
   const unrefContent = unref(content);
   state = createState(
     unrefContent,
     props.placeholder,
     plugins.value,
-    { onImageUpload: openFileBrowser },
+    { onImageUpload: openFileBrowser, onCopilotClick: handleCopilotClick },
     editorMenuOptions.value
   );
 
@@ -592,7 +625,12 @@ function insertContentIntoEditor(content, defaultFrom = 0) {
   const from = defaultFrom || editorView.state.selection.from || 0;
   // Use the editor's current schema to ensure compatibility with buildMessageSchema
   const currentSchema = editorView.state.schema;
-  let node = new MessageMarkdownTransformer(currentSchema).parse(content);
+  // Strip unsupported formatting before parsing to ensure content can be inserted
+  // into channels that don't support certain markdown features (e.g., API channels)
+  const sanitizedContent = stripUnsupportedFormatting(content, currentSchema);
+  let node = new MessageMarkdownTransformer(currentSchema).parse(
+    sanitizedContent
+  );
 
   insertNodeIntoEditor(node, from, undefined);
 }
@@ -747,7 +785,7 @@ onMounted(() => {
     props.modelValue,
     props.placeholder,
     plugins.value,
-    { onImageUpload: openFileBrowser },
+    { onImageUpload: openFileBrowser, onCopilotClick: handleCopilotClick },
     editorMenuOptions.value
   );
 
@@ -792,6 +830,14 @@ useEmitter(BUS_EVENTS.INSERT_INTO_RICH_EDITOR, insertContentIntoEditor);
       :search-key="toolSearchKey"
       @select-tool="content => insertSpecialContent('tool', content)"
     />
+    <CopilotMenuBar
+      v-if="showSelectionMenu"
+      v-on-click-outside="handleClickOutside"
+      :has-selection="isTextSelected"
+      :show-selection-menu="showSelectionMenu"
+      :show-general-menu="false"
+      @execute-copilot-action="handleCopilotAction"
+    />
     <input
       ref="imageUpload"
       type="file"
@@ -845,6 +891,10 @@ useEmitter(BUS_EVENTS.INSERT_INTO_RICH_EDITOR, insertContentIntoEditor);
           @apply size-full;
         }
       }
+
+      .ProseMirror-copilot svg {
+        @apply fill-n-violet-9;
+      }
     }
   }
 
@@ -983,6 +1033,10 @@ useEmitter(BUS_EVENTS.INSERT_INTO_RICH_EDITOR, insertContentIntoEditor);
         .ProseMirror-icon {
           @apply p-0.5 flex-shrink-0;
         }
+
+        .ProseMirror-copilot svg {
+          @apply fill-n-violet-9;
+        }
       }
 
       .ProseMirror-menu-active {
diff --git a/app/javascript/dashboard/components/widgets/WootWriter/EditorModeToggle.vue b/app/javascript/dashboard/components/widgets/WootWriter/EditorModeToggle.vue
index 37108b0f2..cbee8fd73 100644
--- a/app/javascript/dashboard/components/widgets/WootWriter/EditorModeToggle.vue
+++ b/app/javascript/dashboard/components/widgets/WootWriter/EditorModeToggle.vue
@@ -12,6 +12,10 @@ const props = defineProps({
     type: Boolean,
     default: false,
   },
+  isReplyRestricted: {
+    type: Boolean,
+    default: false,
+  },
 });
 
 defineEmits(['toggleMode']);
@@ -24,11 +28,17 @@ const privateModeSize = useElementSize(wootEditorPrivateMode);
 
 /**
  * Computed boolean indicating if the editor is in private note mode
- * When disabled, always show NOTE mode regardless of actual mode prop
+ * When isReplyRestricted is true, force switch to private note
+ * Otherwise, respect the current mode prop
  * @type {ComputedRef<boolean>}
  */
 const isPrivate = computed(() => {
-  return props.disabled || props.mode === REPLY_EDITOR_MODES.NOTE;
+  if (props.isReplyRestricted) {
+    // Force switch to private note when replies are restricted
+    return true;
+  }
+  // Otherwise respect the current mode
+  return props.mode === REPLY_EDITOR_MODES.NOTE;
 });
 
 /**
@@ -60,9 +70,9 @@ const translateValue = computed(() => {
 <template>
   <button
     class="flex items-center w-auto h-8 p-1 transition-all border rounded-full bg-n-alpha-2 group relative duration-300 ease-in-out z-0 active:scale-[0.995] active:duration-75"
-    :disabled="disabled"
+    :disabled="disabled || isReplyRestricted"
     :class="{
-      'cursor-not-allowed': disabled,
+      'cursor-not-allowed': disabled || isReplyRestricted,
     }"
     @click="$emit('toggleMode')"
   >
@@ -75,7 +85,7 @@ const translateValue = computed(() => {
     <div
       class="absolute shadow-sm rounded-full h-6 w-[var(--chip-width)] ease-in-out translate-x-[var(--translate-x)] rtl:translate-x-[var(--rtl-translate-x)] bg-n-solid-1"
       :class="{
-        'transition-all duration-300': !disabled,
+        'transition-all duration-300': !disabled && !isReplyRestricted,
       }"
       :style="{
         '--chip-width': width,
diff --git a/app/javascript/dashboard/components/widgets/WootWriter/ReplyBottomPanel.vue b/app/javascript/dashboard/components/widgets/WootWriter/ReplyBottomPanel.vue
index 80737ac45..5842b7f66 100644
--- a/app/javascript/dashboard/components/widgets/WootWriter/ReplyBottomPanel.vue
+++ b/app/javascript/dashboard/components/widgets/WootWriter/ReplyBottomPanel.vue
@@ -9,14 +9,13 @@ import { FEATURE_FLAGS } from 'dashboard/featureFlags';
 import { getAllowedFileTypesByChannel } from '@chatwoot/utils';
 import { ALLOWED_FILE_TYPES } from 'shared/constants/messages';
 import VideoCallButton from '../VideoCallButton.vue';
-import AIAssistanceButton from '../AIAssistanceButton.vue';
 import { INBOX_TYPES } from 'dashboard/helper/inbox';
 import { mapGetters } from 'vuex';
 import NextButton from 'dashboard/components-next/button/Button.vue';
 
 export default {
   name: 'ReplyBottomPanel',
-  components: { NextButton, FileUpload, VideoCallButton, AIAssistanceButton },
+  components: { NextButton, FileUpload, VideoCallButton },
   mixins: [inboxMixin],
   props: {
     isNote: {
@@ -98,6 +97,7 @@ export default {
       type: Number,
       required: true,
     },
+    // eslint-disable-next-line vue/no-unused-properties
     message: {
       type: String,
       default: '',
@@ -370,13 +370,6 @@ export default {
         v-if="(isAWebWidgetInbox || isAPIInbox) && !isOnPrivateNote"
         :conversation-id="conversationId"
       />
-      <AIAssistanceButton
-        v-if="!isFetchingAppIntegrations"
-        :conversation-id="conversationId"
-        :is-private-note="isOnPrivateNote"
-        :message="message"
-        @replace-text="replaceText"
-      />
       <transition name="modal-fade">
         <div
           v-show="uploadRef && uploadRef.dropActive"
diff --git a/app/javascript/dashboard/components/widgets/WootWriter/ReplyTopPanel.vue b/app/javascript/dashboard/components/widgets/WootWriter/ReplyTopPanel.vue
index 1342cc8b7..6c6969f0b 100644
--- a/app/javascript/dashboard/components/widgets/WootWriter/ReplyTopPanel.vue
+++ b/app/javascript/dashboard/components/widgets/WootWriter/ReplyTopPanel.vue
@@ -1,14 +1,21 @@
 <script>
+import { ref } from 'vue';
 import { useKeyboardEvents } from 'dashboard/composables/useKeyboardEvents';
+import { vOnClickOutside } from '@vueuse/components';
 import { REPLY_EDITOR_MODES, CHAR_LENGTH_WARNING } from './constants';
 import NextButton from 'dashboard/components-next/button/Button.vue';
 import EditorModeToggle from './EditorModeToggle.vue';
+import CopilotMenuBar from './CopilotMenuBar.vue';
 
 export default {
   name: 'ReplyTopPanel',
   components: {
     NextButton,
     EditorModeToggle,
+    CopilotMenuBar,
+  },
+  directives: {
+    OnClickOutside: vOnClickOutside,
   },
   props: {
     mode: {
@@ -19,6 +26,10 @@ export default {
       type: Boolean,
       default: false,
     },
+    disabled: {
+      type: Boolean,
+      default: false,
+    },
     isMessageLengthReachingThreshold: {
       type: Boolean,
       default: () => false,
@@ -28,7 +39,7 @@ export default {
       default: () => 0,
     },
   },
-  emits: ['setReplyMode', 'togglePopout'],
+  emits: ['setReplyMode', 'togglePopout', 'executeCopilotAction'],
   setup(props, { emit }) {
     const setReplyMode = mode => {
       emit('setReplyMode', mode);
@@ -47,6 +58,21 @@ export default {
           : REPLY_EDITOR_MODES.REPLY;
       setReplyMode(newMode);
     };
+    const showCopilotMenu = ref(false);
+
+    const handleCopilotAction = actionKey => {
+      emit('executeCopilotAction', actionKey);
+      showCopilotMenu.value = false;
+    };
+
+    const toggleCopilotMenu = () => {
+      showCopilotMenu.value = !showCopilotMenu.value;
+    };
+
+    const handleClickOutside = () => {
+      showCopilotMenu.value = false;
+    };
+
     const keyboardEvents = {
       'Alt+KeyP': {
         action: () => handleNoteClick(),
@@ -64,6 +90,10 @@ export default {
       handleReplyClick,
       handleNoteClick,
       REPLY_EDITOR_MODES,
+      handleCopilotAction,
+      showCopilotMenu,
+      toggleCopilotMenu,
+      handleClickOutside,
     };
   },
   computed: {
@@ -90,11 +120,13 @@ export default {
 </script>
 
 <template>
-  <div class="flex justify-between h-[3.25rem] gap-2 ltr:pl-3 rtl:pr-3">
+  <div
+    class="flex justify-between gap-2 h-[3.25rem] items-center ltr:pl-3 ltr:pr-2 rtl:pr-3 rtl:pl-2"
+  >
     <EditorModeToggle
       :mode="mode"
-      :disabled="isReplyRestricted"
-      class="mt-3"
+      :disabled="disabled"
+      :is-reply-restricted="isReplyRestricted"
       @toggle-mode="handleModeToggle"
     />
     <div class="flex items-center mx-4 my-0">
@@ -104,11 +136,34 @@ export default {
         </span>
       </div>
     </div>
-    <NextButton
-      ghost
-      class="ltr:rounded-bl-md rtl:rounded-br-md ltr:rounded-br-none rtl:rounded-bl-none ltr:rounded-tl-none rtl:rounded-tr-none text-n-slate-11 ltr:rounded-tr-[11px] rtl:rounded-tl-[11px]"
-      icon="i-lucide-maximize-2"
-      @click="$emit('togglePopout')"
-    />
+    <div class="flex items-center gap-2">
+      <div class="relative">
+        <NextButton
+          ghost
+          :disabled="disabled"
+          :class="{
+            'text-n-violet-9 hover:enabled:!bg-n-violet-3': !showCopilotMenu,
+            'text-n-violet-9 bg-n-violet-3': showCopilotMenu,
+          }"
+          sm
+          icon="i-ph-sparkle-fill"
+          @click="toggleCopilotMenu"
+        />
+        <CopilotMenuBar
+          v-if="showCopilotMenu"
+          v-on-click-outside="handleClickOutside"
+          :has-selection="false"
+          class="ltr:right-0 rtl:left-0 bottom-full mb-2"
+          @execute-copilot-action="handleCopilotAction"
+        />
+      </div>
+      <NextButton
+        ghost
+        class="text-n-slate-11"
+        sm
+        icon="i-lucide-maximize-2"
+        @click="$emit('togglePopout')"
+      />
+    </div>
   </div>
 </template>
diff --git a/app/javascript/dashboard/components/widgets/conversation/CopilotEditorSection.vue b/app/javascript/dashboard/components/widgets/conversation/CopilotEditorSection.vue
new file mode 100644
index 000000000..787d75a25
--- /dev/null
+++ b/app/javascript/dashboard/components/widgets/conversation/CopilotEditorSection.vue
@@ -0,0 +1,87 @@
+<script setup>
+import { ref } from 'vue';
+import CopilotEditor from 'dashboard/components/widgets/WootWriter/CopilotEditor.vue';
+import CaptainLoader from 'dashboard/components/widgets/conversation/copilot/CaptainLoader.vue';
+
+defineProps({
+  showCopilotEditor: {
+    type: Boolean,
+    default: false,
+  },
+  isGeneratingContent: {
+    type: Boolean,
+    default: false,
+  },
+  generatedContent: {
+    type: String,
+    default: '',
+  },
+  isPopout: {
+    type: Boolean,
+    default: false,
+  },
+});
+
+const emit = defineEmits(['focus', 'blur', 'clearSelection', 'contentReady']);
+
+const copilotEditorContent = ref('');
+
+const onFocus = () => {
+  emit('focus');
+};
+
+const onBlur = () => {
+  emit('blur');
+};
+
+const clearEditorSelection = () => {
+  emit('clearSelection');
+};
+</script>
+
+<template>
+  <Transition
+    mode="out-in"
+    enter-active-class="transition-all duration-300 ease-out"
+    enter-from-class="opacity-0 translate-y-2 scale-[0.98]"
+    enter-to-class="opacity-100 translate-y-0 scale-100"
+    leave-active-class="transition-all duration-200 ease-in"
+    leave-from-class="opacity-100 translate-y-0 scale-100"
+    leave-to-class="opacity-0 translate-y-2 scale-[0.98]"
+    @after-enter="emit('contentReady')"
+  >
+    <CopilotEditor
+      v-if="showCopilotEditor && !isGeneratingContent"
+      key="copilot-editor"
+      v-model="copilotEditorContent"
+      class="copilot-editor"
+      :generated-content="generatedContent"
+      :min-height="4"
+      :enabled-menu-options="[]"
+      :is-popout="isPopout"
+      @focus="onFocus"
+      @blur="onBlur"
+      @clear-selection="clearEditorSelection"
+    />
+    <div
+      v-else-if="isGeneratingContent"
+      key="loading-state"
+      class="bg-n-iris-5 rounded min-h-16 w-full mb-4 p-4 flex items-start"
+    >
+      <div class="flex items-center gap-2">
+        <CaptainLoader class="text-n-iris-10 size-4" />
+        <span class="text-sm text-n-iris-10">
+          {{ $t('CONVERSATION.REPLYBOX.COPILOT_THINKING') }}
+        </span>
+      </div>
+    </div>
+  </Transition>
+</template>
+
+<style lang="scss">
+.copilot-editor {
+  .ProseMirror-menubar {
+    display: none;
+  }
+}
+</style>
diff --git a/app/javascript/dashboard/components/widgets/conversation/MessageSignatureMissingAlert.vue b/app/javascript/dashboard/components/widgets/conversation/MessageSignatureMissingAlert.vue
index a10d933bc..6f14488c9 100644
--- a/app/javascript/dashboard/components/widgets/conversation/MessageSignatureMissingAlert.vue
+++ b/app/javascript/dashboard/components/widgets/conversation/MessageSignatureMissingAlert.vue
@@ -11,7 +11,7 @@ const openProfileSettings = () => {
 
 <template>
   <div
-    class="my-0 mx-4 px-1 flex max-h-[8vh] items-baseline justify-between hover:bg-n-slate-1 border border-dashed border-n-weak rounded-sm overflow-auto"
+    class="my-0 px-1 flex max-h-[8vh] items-baseline justify-between hover:bg-n-slate-1 border border-dashed border-n-weak rounded-sm overflow-auto"
   >
     <p class="w-fit !m-0">
       {{ $t('CONVERSATION.FOOTER.MESSAGE_SIGNATURE_NOT_CONFIGURED') }}
diff --git a/app/javascript/dashboard/components/widgets/conversation/ReplyBox.vue b/app/javascript/dashboard/components/widgets/conversation/ReplyBox.vue
index bfff15a4c..6e01e4d34 100644
--- a/app/javascript/dashboard/components/widgets/conversation/ReplyBox.vue
+++ b/app/javascript/dashboard/components/widgets/conversation/ReplyBox.vue
@@ -7,14 +7,14 @@ import { useTrack } from 'dashboard/composables';
 import keyboardEventListenerMixins from 'shared/mixins/keyboardEventListenerMixins';
 import { FEATURE_FLAGS } from 'dashboard/featureFlags';
 
-import CannedResponse from './CannedResponse.vue';
 import ReplyToMessage from './ReplyToMessage.vue';
-import ResizableTextArea from 'shared/components/ResizableTextArea.vue';
 import AttachmentPreview from 'dashboard/components/widgets/AttachmentsPreview.vue';
 import ReplyTopPanel from 'dashboard/components/widgets/WootWriter/ReplyTopPanel.vue';
 import ReplyEmailHead from './ReplyEmailHead.vue';
 import ReplyBottomPanel from 'dashboard/components/widgets/WootWriter/ReplyBottomPanel.vue';
+import CopilotReplyBottomPanel from 'dashboard/components/widgets/WootWriter/CopilotReplyBottomPanel.vue';
 import ArticleSearchPopover from 'dashboard/routes/dashboard/helpcenter/components/ArticleSearch/SearchPopover.vue';
+import CopilotEditorSection from './CopilotEditorSection.vue';
 import MessageSignatureMissingAlert from './MessageSignatureMissingAlert.vue';
 import ReplyBoxBanner from './ReplyBoxBanner.vue';
 import QuotedEmailPreview from './QuotedEmailPreview.vue';
@@ -48,6 +48,7 @@ import {
   getEffectiveChannelType,
   extractTextFromMarkdown,
 } from 'dashboard/helper/editorHelper';
+import { useCopilotReply } from 'dashboard/composables/useCopilotReply';
 
 import { LOCAL_STORAGE_KEYS } from 'dashboard/constants/localStorage';
 import { LocalStorage } from 'shared/helpers/localStorage';
@@ -72,8 +73,8 @@ export default {
     WhatsappTemplates,
     WootMessageEditor,
     QuotedEmailPreview,
-    ResizableTextArea,
-    CannedResponse,
+    CopilotEditorSection,
+    CopilotReplyBottomPanel,
   },
   mixins: [inboxMixin, fileUploadMixin, keyboardEventListenerMixins],
   props: {
@@ -93,6 +94,7 @@ export default {
     } = useUISettings();
 
     const replyEditor = useTemplateRef('replyEditor');
+    const copilot = useCopilotReply();
 
     return {
       uiSettings,
@@ -101,6 +103,7 @@ export default {
       setQuotedReplyFlagForInbox,
       fetchQuotedReplyFlagFromUISettings,
       replyEditor,
+      copilot,
     };
   },
   data() {
@@ -406,6 +409,9 @@ export default {
         !!this.quotedEmailText
       );
     },
+    isDefaultEditorMode() {
+      return !this.showAudioRecorderEditor && !this.copilot.isActive.value;
+    },
     showRichContentEditor() {
       if (this.isOnPrivateNote || this.isRichEditorEnabled) {
         return true;
@@ -428,6 +434,8 @@ export default {
         // This prevents overwriting user input (e.g., CC/BCC fields) when performing actions
         // like self-assign or other updates that do not actually change the conversation context
         this.setCCAndToEmailsFromLastChat();
+        // Reset Copilot editor state (includes cancelling ongoing generation)
+        this.copilot.reset();
       }
 
       if (this.isOnPrivateNote) {
@@ -890,6 +898,9 @@ export default {
         this.insertIntoTextEditor(content, selectionStart, selectionEnd);
       }
     },
+    executeCopilotAction(action, data) {
+      this.copilot.execute(action, data);
+    },
     clearMessage() {
       this.message = '';
       if (this.sendWithSignature && !this.isPrivate) {
@@ -1162,6 +1173,9 @@ export default {
     togglePopout() {
       this.$emit('update:popOutReplyBox', !this.popOutReplyBox);
     },
+    onSubmitCopilotReply() {
+      this.message = this.copilot.accept();
+    },
   },
 };
 </script>
@@ -1172,11 +1186,17 @@ export default {
     <ReplyTopPanel
       :mode="replyType"
       :is-reply-restricted="isReplyRestricted"
+      :disabled="
+        (copilot.isActive.value && copilot.isButtonDisabled.value) ||
+        showAudioRecorderEditor
+      "
       :is-message-length-reaching-threshold="isMessageLengthReachingThreshold"
       :characters-remaining="charactersRemaining"
       :popout-reply-box="popOutReplyBox"
       @set-reply-mode="setReplyMode"
       @toggle-popout="togglePopout"
+      @toggle-copilot="copilot.toggleEditor"
+      @execute-copilot-action="executeCopilotAction"
     />
     <ArticleSearchPopover
       v-if="showArticleSearchPopover && connectedPortalSlug"
@@ -1184,135 +1204,167 @@ export default {
       @insert="handleInsert"
       @close="onSearchPopoverClose"
     />
-    <div class="reply-box__top">
-      <ReplyToMessage
-        v-if="shouldShowReplyToMessage"
-        :message="inReplyTo"
-        @dismiss="resetReplyToMessage"
-      />
-      <CannedResponse
-        v-if="showMentions && hasSlashCommand"
-        v-on-clickaway="hideMentions"
-        class="normal-editor__canned-box"
-        :search-key="mentionSearchKey"
-        @replace="replaceText"
-      />
-      <EmojiInput
-        v-if="showEmojiPicker"
-        v-on-clickaway="hideEmojiPicker"
-        :class="{
-          'emoji-dialog--expanded': isOnExpandedLayout || popOutReplyBox,
-        }"
-        :on-click="addIntoEditor"
-      />
-      <ReplyEmailHead
-        v-if="showReplyHead"
-        v-model:cc-emails="ccEmails"
-        v-model:bcc-emails="bccEmails"
-        v-model:to-emails="toEmails"
-      />
-      <AudioRecorder
-        v-if="showAudioRecorderEditor"
-        ref="audioRecorderInput"
-        :audio-record-format="audioRecordFormat"
-        @recorder-progress-changed="onRecordProgressChanged"
-        @finish-record="onFinishRecorder"
-        @play="recordingAudioState = 'playing'"
-        @pause="recordingAudioState = 'paused'"
-      />
-      <ResizableTextArea
-        v-else-if="!showRichContentEditor"
-        ref="messageInput"
-        v-model="message"
-        class="rounded-none input"
-        :placeholder="messagePlaceHolder"
-        :min-height="4"
-        :signature="signatureToApply"
-        allow-signature
-        :send-with-signature="sendWithSignature"
-        @typing-off="onTypingOff"
-        @typing-on="onTypingOn"
-        @focus="onFocus"
-        @blur="onBlur"
-      />
-      <WootMessageEditor
-        v-else
-        v-model="message"
-        :editor-id="editorStateId"
-        class="input popover-prosemirror-menu"
-        :is-private="isOnPrivateNote"
-        :placeholder="messagePlaceHolder"
-        :update-selection-with="updateEditorSelectionWith"
-        :min-height="4"
-        enable-variables
-        :variables="messageVariables"
-        :signature="messageSignature"
-        allow-signature
-        :channel-type="channelType"
-        :medium="inbox.medium"
-        @typing-off="onTypingOff"
-        @typing-on="onTypingOn"
-        @focus="onFocus"
-        @blur="onBlur"
-        @toggle-user-mention="toggleUserMention"
-        @toggle-canned-menu="toggleCannedMenu"
-        @toggle-variables-menu="toggleVariablesMenu"
-        @clear-selection="clearEditorSelection"
-      />
-      <QuotedEmailPreview
-        v-if="shouldShowQuotedPreview"
-        :quoted-email-text="quotedEmailText"
-        :preview-text="quotedEmailPreviewText"
-        @toggle="toggleQuotedReply"
-      />
-    </div>
-    <div
-      v-if="hasAttachments && !showAudioRecorderEditor"
-      class="attachment-preview-box"
-      @paste="onPaste"
+    <Transition
+      mode="out-in"
+      enter-active-class="transition-all duration-300 ease-out"
+      enter-from-class="opacity-0 translate-y-2 scale-[0.98]"
+      enter-to-class="opacity-100 translate-y-0 scale-100"
+      leave-active-class="transition-all duration-200 ease-in"
+      leave-from-class="opacity-100 translate-y-0 scale-100"
+      leave-to-class="opacity-0 translate-y-2 scale-[0.98]"
     >
-      <AttachmentPreview
-        class="flex-col mt-4"
-        :attachments="attachedFiles"
-        @remove-attachment="removeAttachment"
+      <div :key="copilot.editorTransitionKey.value" class="reply-box__top">
+        <ReplyToMessage
+          v-if="shouldShowReplyToMessage"
+          :message="inReplyTo"
+          @dismiss="resetReplyToMessage"
+        />
+        <EmojiInput
+          v-if="showEmojiPicker"
+          v-on-clickaway="hideEmojiPicker"
+          :class="{
+            'emoji-dialog--expanded': isOnExpandedLayout || popOutReplyBox,
+          }"
+          :on-click="addIntoEditor"
+        />
+        <ReplyEmailHead
+          v-if="showReplyHead && isDefaultEditorMode"
+          v-model:cc-emails="ccEmails"
+          v-model:bcc-emails="bccEmails"
+          v-model:to-emails="toEmails"
+        />
+        <AudioRecorder
+          v-if="showAudioRecorderEditor"
+          ref="audioRecorderInput"
+          :audio-record-format="audioRecordFormat"
+          @recorder-progress-changed="onRecordProgressChanged"
+          @finish-record="onFinishRecorder"
+          @play="recordingAudioState = 'playing'"
+          @pause="recordingAudioState = 'paused'"
+        />
+        <CopilotEditorSection
+          v-if="copilot.isActive.value && !showAudioRecorderEditor"
+          :show-copilot-editor="copilot.showEditor.value"
+          :is-generating-content="copilot.isGenerating.value"
+          :generated-content="copilot.generatedContent.value"
+          :is-popout="popOutReplyBox"
+          :placeholder="$t('CONVERSATION.FOOTER.COPILOT_MSG_INPUT')"
+          @focus="onFocus"
+          @blur="onBlur"
+          @clear-selection="clearEditorSelection"
+          @close="copilot.showEditor.value = false"
+          @content-ready="copilot.setContentReady"
+        />
+        <WootMessageEditor
+          v-else-if="!showAudioRecorderEditor"
+          v-model="message"
+          :editor-id="editorStateId"
+          class="input popover-prosemirror-menu"
+          :is-private="isOnPrivateNote"
+          :placeholder="messagePlaceHolder"
+          :update-selection-with="updateEditorSelectionWith"
+          :min-height="4"
+          enable-variables
+          :variables="messageVariables"
+          :signature="messageSignature"
+          allow-signature
+          :channel-type="channelType"
+          @typing-off="onTypingOff"
+          @typing-on="onTypingOn"
+          @focus="onFocus"
+          @blur="onBlur"
+          @toggle-user-mention="toggleUserMention"
+          @toggle-canned-menu="toggleCannedMenu"
+          @toggle-variables-menu="toggleVariablesMenu"
+          @clear-selection="clearEditorSelection"
+          @execute-copilot-action="executeCopilotAction"
+        />
+
+        <QuotedEmailPreview
+          v-if="shouldShowQuotedPreview && isDefaultEditorMode"
+          :quoted-email-text="quotedEmailText"
+          :preview-text="quotedEmailPreviewText"
+          class="mb-2"
+          @toggle="toggleQuotedReply"
+        />
+
+        <div
+          v-if="hasAttachments && isDefaultEditorMode"
+          class="bg-transparent py-0 mb-2"
+          @paste="onPaste"
+        >
+          <AttachmentPreview
+            class="mt-2"
+            :attachments="attachedFiles"
+            @remove-attachment="removeAttachment"
+          />
+        </div>
+        <MessageSignatureMissingAlert
+          v-if="
+            isSignatureEnabledForInbox &&
+            !isSignatureAvailable &&
+            isDefaultEditorMode
+          "
+          class="mb-2"
+        />
+      </div>
+    </Transition>
+
+    <Transition
+      mode="out-in"
+      enter-active-class="transition-all duration-300 ease-out"
+      enter-from-class="opacity-0 translate-y-2 scale-[0.98]"
+      enter-to-class="opacity-100 translate-y-0 scale-100"
+      leave-active-class="transition-all duration-200 ease-in"
+      leave-from-class="opacity-100 translate-y-0 scale-100"
+      leave-to-class="opacity-0 translate-y-2 scale-[0.98]"
+    >
+      <CopilotReplyBottomPanel
+        v-if="copilot.isActive.value"
+        key="copilot-bottom-panel"
+        :is-private="isOnPrivateNote"
+        :is-generating-content="copilot.isButtonDisabled.value"
+        @submit="onSubmitCopilotReply"
+        @cancel="copilot.toggleEditor"
       />
-    </div>
-    <MessageSignatureMissingAlert
-      v-if="isSignatureEnabledForInbox && !isSignatureAvailable"
-    />
-    <ReplyBottomPanel
-      :conversation-id="conversationId"
-      :enable-multiple-file-upload="enableMultipleFileUpload"
-      :enable-whats-app-templates="showWhatsappTemplates"
-      :enable-content-templates="showContentTemplates"
-      :inbox="inbox"
-      :is-on-private-note="isOnPrivateNote"
-      :is-recording-audio="isRecordingAudio"
-      :is-send-disabled="isReplyButtonDisabled"
-      :is-note="isPrivate"
-      :on-file-upload="onFileUpload"
-      :on-send="onSendReply"
-      :conversation-type="conversationType"
-      :recording-audio-duration-text="recordingAudioDurationText"
-      :recording-audio-state="recordingAudioState"
-      :send-button-text="replyButtonLabel"
-      :show-audio-recorder="showAudioRecorder"
-      :show-emoji-picker="showEmojiPicker"
-      :show-file-upload="showFileUpload"
-      :show-quoted-reply-toggle="shouldShowQuotedReplyToggle"
-      :quoted-reply-enabled="quotedReplyPreference"
-      :toggle-audio-recorder-play-pause="toggleAudioRecorderPlayPause"
-      :toggle-audio-recorder="toggleAudioRecorder"
-      :toggle-emoji-picker="toggleEmojiPicker"
-      :message="message"
-      :portal-slug="connectedPortalSlug"
-      :new-conversation-modal-active="newConversationModalActive"
-      @select-whatsapp-template="openWhatsappTemplateModal"
-      @select-content-template="openContentTemplateModal"
-      @replace-text="replaceText"
-      @toggle-insert-article="toggleInsertArticle"
-      @toggle-quoted-reply="toggleQuotedReply"
-    />
+      <ReplyBottomPanel
+        v-else
+        key="reply-bottom-panel"
+        :conversation-id="conversationId"
+        :enable-multiple-file-upload="enableMultipleFileUpload"
+        :enable-whats-app-templates="showWhatsappTemplates"
+        :enable-content-templates="showContentTemplates"
+        :inbox="inbox"
+        :is-on-private-note="isOnPrivateNote"
+        :is-recording-audio="isRecordingAudio"
+        :is-send-disabled="isReplyButtonDisabled"
+        :is-note="isPrivate"
+        :on-file-upload="onFileUpload"
+        :on-send="onSendReply"
+        :conversation-type="conversationType"
+        :recording-audio-duration-text="recordingAudioDurationText"
+        :recording-audio-state="recordingAudioState"
+        :send-button-text="replyButtonLabel"
+        :show-audio-recorder="showAudioRecorder"
+        :show-editor-toggle="isAPIInbox && !isOnPrivateNote"
+        :show-emoji-picker="showEmojiPicker"
+        :show-file-upload="showFileUpload"
+        :show-quoted-reply-toggle="shouldShowQuotedReplyToggle"
+        :quoted-reply-enabled="quotedReplyPreference"
+        :toggle-audio-recorder-play-pause="toggleAudioRecorderPlayPause"
+        :toggle-audio-recorder="toggleAudioRecorder"
+        :toggle-emoji-picker="toggleEmojiPicker"
+        :message="message"
+        :portal-slug="connectedPortalSlug"
+        :new-conversation-modal-active="newConversationModalActive"
+        @select-whatsapp-template="openWhatsappTemplateModal"
+        @select-content-template="openContentTemplateModal"
+        @replace-text="replaceText"
+        @toggle-insert-article="toggleInsertArticle"
+        @toggle-quoted-reply="toggleQuotedReply"
+      />
+    </Transition>
+
     <WhatsappTemplates
       :inbox-id="inbox.id"
       :show="showWhatsAppTemplatesModal"
@@ -1342,13 +1394,7 @@ export default {
   @apply mb-0;
 }
 
-.attachment-preview-box {
-  @apply bg-transparent py-0 px-4;
-}
-
 .reply-box {
-  transition: height 2s cubic-bezier(0.37, 0, 0.63, 1);
-
   @apply relative mb-2 mx-2 border border-n-weak rounded-xl bg-n-solid-1;
 
   &.is-private {
diff --git a/app/javascript/dashboard/components/widgets/conversation/copilot/CaptainLoader.vue b/app/javascript/dashboard/components/widgets/conversation/copilot/CaptainLoader.vue
new file mode 100644
index 000000000..9f77a1cb0
--- /dev/null
+++ b/app/javascript/dashboard/components/widgets/conversation/copilot/CaptainLoader.vue
@@ -0,0 +1,33 @@
+<script setup>
+import Icon from 'next/icon/Icon.vue';
+</script>
+
+<template>
+  <Icon v-once icon="i-woot-captain" class="jumping-logo" />
+</template>
+
+<style scoped>
+.jumping-logo {
+  transform-origin: center bottom;
+  animation: jump 1s cubic-bezier(0.28, 0.84, 0.42, 1) infinite;
+  will-change: transform;
+}
+
+@keyframes jump {
+  0% {
+    transform: translateY(0) scale(1, 1);
+  }
+  20% {
+    transform: translateY(0) scale(1.05, 0.95);
+  }
+  50% {
+    transform: translateY(-5px) scale(0.95, 1.05);
+  }
+  80% {
+    transform: translateY(0) scale(1.02, 0.98);
+  }
+  100% {
+    transform: translateY(0) scale(1, 1);
+  }
+}
+</style>
diff --git a/app/javascript/dashboard/composables/commands/useConversationHotKeys.js b/app/javascript/dashboard/composables/commands/useConversationHotKeys.js
index 6ec1c37aa..7158fd51c 100644
--- a/app/javascript/dashboard/composables/commands/useConversationHotKeys.js
+++ b/app/javascript/dashboard/composables/commands/useConversationHotKeys.js
@@ -123,12 +123,7 @@ const createDraftMessageAIAssistActions = t => {
     },
     {
       label: t('INTEGRATION_SETTINGS.OPEN_AI.OPTIONS.MAKE_FRIENDLY'),
-      key: 'make_friendly',
-      icon: ICON_AI_ASSIST,
-    },
-    {
-      label: t('INTEGRATION_SETTINGS.OPEN_AI.OPTIONS.MAKE_FORMAL'),
-      key: 'make_formal',
+      key: 'friendly',
       icon: ICON_AI_ASSIST,
     },
     {
diff --git a/app/javascript/dashboard/composables/useAI.js b/app/javascript/dashboard/composables/useAI.js
index 9076d5716..0465723e4 100644
--- a/app/javascript/dashboard/composables/useAI.js
+++ b/app/javascript/dashboard/composables/useAI.js
@@ -156,24 +156,34 @@ export function useAI() {
   };
 
   /**
-   * Processes an AI event, such as rephrasing content.
-   * @param {string} [type='rephrase'] - The type of AI event to process.
+   * Processes an AI event, such as improving content.
+   * @param {string} [type='improve'] - The type of AI event to process.
+   * @param {string} [content=''] - The content to process (for full message) or selected text (for selection-based).
+   * @param {Object} [options={}] - Additional options.
+   * @param {AbortSignal} [options.signal] - AbortSignal to cancel the request.
    * @returns {Promise<string>} The generated message or an empty string if an error occurs.
    */
-  const processEvent = async (type = 'rephrase') => {
+  const processEvent = async (type = 'improve', content = '', options = {}) => {
     try {
-      const result = await OpenAPI.processEvent({
-        hookId: hookId.value,
-        type,
-        content: draftMessage.value,
-        conversationId: conversationId.value,
-      });
+      const result = await OpenAPI.processEvent(
+        {
+          hookId: hookId.value,
+          type,
+          content: content || draftMessage.value,
+          conversationId: conversationId.value,
+        },
+        options.signal
+      );
       const {
         data: { message: generatedMessage },
       } = result;
       return generatedMessage;
     } catch (error) {
-      const errorData = error.response.data.error;
+      // Don't show error for aborted requests
+      if (error.name === 'AbortError' || error.name === 'CanceledError') {
+        return '';
+      }
+      const errorData = error.response?.data?.error;
       const errorMessage =
         errorData?.error?.message ||
         t('INTEGRATION_SETTINGS.OPEN_AI.GENERATE_ERROR');
diff --git a/app/javascript/dashboard/composables/useCopilotReply.js b/app/javascript/dashboard/composables/useCopilotReply.js
new file mode 100644
index 000000000..729fe82fa
--- /dev/null
+++ b/app/javascript/dashboard/composables/useCopilotReply.js
@@ -0,0 +1,122 @@
+import { ref, computed } from 'vue';
+import { useAI } from 'dashboard/composables/useAI';
+import { useUISettings } from 'dashboard/composables/useUISettings';
+
+/**
+ * Composable for managing Copilot reply generation state and actions.
+ * Extracts copilot-related logic from ReplyBox for cleaner code organization.
+ *
+ * @returns {Object} Copilot reply state and methods
+ */
+export function useCopilotReply() {
+  const { processEvent } = useAI();
+  const { updateUISettings } = useUISettings();
+
+  const showEditor = ref(false);
+  const isGenerating = ref(false);
+  const isContentReady = ref(false);
+  const generatedContent = ref('');
+  const abortController = ref(null);
+
+  const isActive = computed(() => showEditor.value || isGenerating.value);
+  const isButtonDisabled = computed(
+    () => isGenerating.value || !isContentReady.value
+  );
+  const editorTransitionKey = computed(() =>
+    isActive.value ? 'copilot' : 'rich'
+  );
+
+  /**
+   * Resets all copilot editor state and cancels any ongoing generation.
+   */
+  function reset() {
+    if (abortController.value) {
+      abortController.value.abort();
+      abortController.value = null;
+    }
+    showEditor.value = false;
+    isGenerating.value = false;
+    isContentReady.value = false;
+    generatedContent.value = '';
+  }
+
+  /**
+   * Toggles the copilot editor visibility.
+   */
+  function toggleEditor() {
+    showEditor.value = !showEditor.value;
+  }
+
+  /**
+   * Marks content as ready (called after transition completes).
+   */
+  function setContentReady() {
+    isContentReady.value = true;
+  }
+
+  /**
+   * Executes a copilot action (e.g., improve, fix grammar).
+   * @param {string} action - The action type
+   * @param {string} data - The content to process
+   */
+  async function execute(action, data) {
+    if (action === 'ask_copilot') {
+      updateUISettings({
+        is_contact_sidebar_open: false,
+        is_copilot_panel_open: true,
+      });
+      return;
+    }
+
+    // Reset and start new generation
+    reset();
+    abortController.value = new AbortController();
+    isGenerating.value = true;
+    isContentReady.value = false;
+
+    try {
+      const content = await processEvent(action, data, {
+        signal: abortController.value.signal,
+      });
+
+      if (!abortController.value?.signal.aborted) {
+        generatedContent.value = content;
+        if (content) showEditor.value = true;
+        isGenerating.value = false;
+      }
+    } catch {
+      if (!abortController.value?.signal.aborted) {
+        isGenerating.value = false;
+      }
+    }
+  }
+
+  /**
+   * Accepts the generated content and returns it.
+   * Note: Formatting is automatically stripped by the Editor component's
+   * createState function based on the channel's schema.
+   * @returns {string} The content ready for the editor
+   */
+  function accept() {
+    const content = generatedContent.value;
+    showEditor.value = false;
+    return content;
+  }
+
+  return {
+    showEditor,
+    isGenerating,
+    isContentReady,
+    generatedContent,
+
+    isActive,
+    isButtonDisabled,
+    editorTransitionKey,
+
+    reset,
+    toggleEditor,
+    setContentReady,
+    execute,
+    accept,
+  };
+}
diff --git a/app/javascript/dashboard/constants/editor.js b/app/javascript/dashboard/constants/editor.js
index 087caa99f..d9015b063 100644
--- a/app/javascript/dashboard/constants/editor.js
+++ b/app/javascript/dashboard/constants/editor.js
@@ -7,6 +7,7 @@ export const FORMATTING = {
     marks: ['strong', 'em', 'code', 'link'],
     nodes: ['bulletList', 'orderedList', 'codeBlock', 'blockquote', 'image'],
     menu: [
+      'copilot',
       'strong',
       'em',
       'code',
@@ -21,6 +22,7 @@ export const FORMATTING = {
     marks: ['strong', 'em', 'code', 'link', 'strike'],
     nodes: ['bulletList', 'orderedList', 'codeBlock', 'blockquote', 'image'],
     menu: [
+      'copilot',
       'strong',
       'em',
       'code',
@@ -35,12 +37,13 @@ export const FORMATTING = {
   'Channel::Api': {
     marks: ['strong', 'em'],
     nodes: [],
-    menu: ['strong', 'em', 'undo', 'redo'],
+    menu: ['copilot', 'strong', 'em', 'undo', 'redo'],
   },
   'Channel::FacebookPage': {
     marks: ['strong', 'em', 'code', 'strike'],
     nodes: ['bulletList', 'orderedList', 'codeBlock'],
     menu: [
+      'copilot',
       'strong',
       'em',
       'code',
@@ -70,6 +73,7 @@ export const FORMATTING = {
     marks: ['strong', 'em', 'code', 'strike'],
     nodes: ['bulletList', 'orderedList', 'codeBlock'],
     menu: [
+      'copilot',
       'strong',
       'em',
       'code',
@@ -83,17 +87,18 @@ export const FORMATTING = {
   'Channel::Line': {
     marks: ['strong', 'em', 'code', 'strike'],
     nodes: ['codeBlock'],
-    menu: ['strong', 'em', 'code', 'strike', 'undo', 'redo'],
+    menu: ['copilot', 'strong', 'em', 'code', 'strike', 'undo', 'redo'],
   },
   'Channel::Telegram': {
     marks: ['strong', 'em', 'link', 'code'],
     nodes: [],
-    menu: ['strong', 'em', 'link', 'code', 'undo', 'redo'],
+    menu: ['copilot', 'strong', 'em', 'link', 'code', 'undo', 'redo'],
   },
   'Channel::Instagram': {
     marks: ['strong', 'em', 'code', 'strike'],
     nodes: ['bulletList', 'orderedList'],
     menu: [
+      'copilot',
       'strong',
       'em',
       'code',
@@ -110,6 +115,22 @@ export const FORMATTING = {
     menu: [],
   },
   // Special contexts (not actual channels)
+  'Context::PrivateNote': {
+    marks: ['strong', 'em', 'code', 'link', 'strike'],
+    nodes: ['bulletList', 'orderedList', 'codeBlock', 'blockquote'],
+    menu: [
+      'copilot',
+      'strong',
+      'em',
+      'code',
+      'link',
+      'strike',
+      'bulletList',
+      'orderedList',
+      'undo',
+      'redo',
+    ],
+  },
   'Context::Default': {
     marks: ['strong', 'em', 'code', 'link', 'strike'],
     nodes: ['bulletList', 'orderedList', 'codeBlock', 'blockquote'],
diff --git a/app/javascript/dashboard/helper/AnalyticsHelper/events.js b/app/javascript/dashboard/helper/AnalyticsHelper/events.js
index 727316f1d..d5a98eb80 100644
--- a/app/javascript/dashboard/helper/AnalyticsHelper/events.js
+++ b/app/javascript/dashboard/helper/AnalyticsHelper/events.js
@@ -88,6 +88,7 @@ export const OPEN_AI_EVENTS = Object.freeze({
   SUMMARIZE: 'OpenAI: Used summarize',
   REPLY_SUGGESTION: 'OpenAI: Used reply suggestion',
   REPHRASE: 'OpenAI: Used rephrase',
+  IMPROVE: 'OpenAI: Used improve',
   FIX_SPELLING_AND_GRAMMAR: 'OpenAI: Used fix spelling and grammar',
   SHORTEN: 'OpenAI: Used shorten',
   EXPAND: 'OpenAI: Used expand',
diff --git a/app/javascript/dashboard/i18n/locale/en/conversation.json b/app/javascript/dashboard/i18n/locale/en/conversation.json
index cfb41615b..3e8a3ca32 100644
--- a/app/javascript/dashboard/i18n/locale/en/conversation.json
+++ b/app/javascript/dashboard/i18n/locale/en/conversation.json
@@ -185,6 +185,7 @@
       "MSG_INPUT": "Shift + enter for new line. Start with '/' to select a Canned Response.",
       "PRIVATE_MSG_INPUT": "Shift + enter for new line. This will be visible only to Agents",
       "MESSAGE_SIGNATURE_NOT_CONFIGURED": "Message signature is not configured, please configure it in profile settings.",
+      "COPILOT_MSG_INPUT": "Give copilot additional prompts, or ask anything else...",
       "CLICK_HERE": "Click here to update",
       "WHATSAPP_TEMPLATES": "Whatsapp Templates"
     },
@@ -204,7 +205,7 @@
       "DRAG_DROP": "Drag and drop here to attach",
       "START_AUDIO_RECORDING": "Start audio recording",
       "STOP_AUDIO_RECORDING": "Stop audio recording",
-      "": "",
+      "COPILOT_THINKING": "Copilot is thinking",
       "EMAIL_HEAD": {
         "TO": "TO",
         "ADD_BCC": "Add bcc",
diff --git a/app/javascript/dashboard/i18n/locale/en/integrations.json b/app/javascript/dashboard/i18n/locale/en/integrations.json
index c985daed4..27e4cfbb6 100644
--- a/app/javascript/dashboard/i18n/locale/en/integrations.json
+++ b/app/javascript/dashboard/i18n/locale/en/integrations.json
@@ -151,6 +151,24 @@
         "CASUAL": "Use casual tone",
         "STRAIGHTFORWARD": "Use straightforward tone"
       },
+      "REPLY_OPTIONS": {
+        "IMPROVE_REPLY": "Improve reply",
+        "IMPROVE_REPLY_SELECTION": "Improve the selection",
+        "CHANGE_TONE": {
+          "TITLE": "Change tone",
+          "OPTIONS": {
+            "PROFESSIONAL": "Professional",
+            "CASUAL": "Casual",
+            "STRAIGHTFORWARD": "Straightforward",
+            "CONFIDENT": "Confident",
+            "FRIENDLY": "Friendly"
+          }
+        },
+        "GRAMMAR": "Fix grammar & spelling",
+        "SUGGESTION": "Suggest a reply",
+        "SUMMARIZE": "Summarize the conversation",
+        "ASK_COPILOT": "Ask Copilot"
+      },
       "ASSISTANCE_MODAL": {
         "DRAFT_TITLE": "Draft content",
         "GENERATED_TITLE": "Generated content",
diff --git a/app/javascript/shared/constants/openai.js b/app/javascript/shared/constants/openai.js
deleted file mode 100644
index c7fa7db0c..000000000
--- a/app/javascript/shared/constants/openai.js
+++ /dev/null
@@ -1,15 +0,0 @@
-export const OPEN_AI_OPTIONS = {
-  IMPROVE_WRITING: 'improve_writing',
-  FIX_SPELLING_GRAMMAR: 'fix_spelling_grammar',
-  SHORTEN: 'shorten',
-  EXPAND: 'expand',
-  MAKE_FRIENDLY: 'make_friendly',
-  MAKE_FORMAL: 'make_formal',
-  SIMPLIFY: 'simplify',
-  REPLY_SUGGESTION: 'reply_suggestion',
-  SUMMARIZE: 'summarize',
-  CASUAL: 'casual',
-  PROFESSIONAL: 'professional',
-  STRAIGHTFORWARD: 'straightforward',
-  CONFIDENT: 'confident',
-};
diff --git a/enterprise/lib/enterprise/integrations/openai_processor_service.rb b/enterprise/lib/enterprise/integrations/openai_processor_service.rb
index b09c7ca7c..2a241d7a3 100644
--- a/enterprise/lib/enterprise/integrations/openai_processor_service.rb
+++ b/enterprise/lib/enterprise/integrations/openai_processor_service.rb
@@ -1,6 +1,6 @@
 module Enterprise::Integrations::OpenaiProcessorService
   ALLOWED_EVENT_NAMES = %w[summarize reply_suggestion label_suggestion fix_spelling_grammar
-                           make_friendly make_formal casual professional confident straightforward].freeze
+                           friendly casual professional confident straightforward improve].freeze
   CACHEABLE_EVENTS = %w[label_suggestion].freeze
 
   def label_suggestion_message
diff --git a/enterprise/lib/enterprise/integrations/openai_prompts/label_suggestion.txt b/enterprise/lib/enterprise/integrations/openai_prompts/label_suggestion.liquid
similarity index 100%
rename from enterprise/lib/enterprise/integrations/openai_prompts/label_suggestion.txt
rename to enterprise/lib/enterprise/integrations/openai_prompts/label_suggestion.liquid
diff --git a/enterprise/lib/enterprise/integrations/openai_prompts/summary.txt b/enterprise/lib/enterprise/integrations/openai_prompts/summary.liquid
similarity index 100%
rename from enterprise/lib/enterprise/integrations/openai_prompts/summary.txt
rename to enterprise/lib/enterprise/integrations/openai_prompts/summary.liquid
diff --git a/lib/integrations/llm_base_service.rb b/lib/integrations/llm_base_service.rb
index 4652ad76f..397888b83 100644
--- a/lib/integrations/llm_base_service.rb
+++ b/lib/integrations/llm_base_service.rb
@@ -7,8 +7,8 @@ class Integrations::LlmBaseService
   # 120000 * 4 = 480,000 characters (rounding off downwards to 400,000 to be safe)
   TOKEN_LIMIT = 400_000
   GPT_MODEL = Llm::Config::DEFAULT_MODEL
-  ALLOWED_EVENT_NAMES = %w[summarize reply_suggestion fix_spelling_grammar casual professional make_friendly make_formal confident
-                           straightforward].freeze
+  ALLOWED_EVENT_NAMES = %w[summarize reply_suggestion fix_spelling_grammar casual professional friendly confident
+                           straightforward improve].freeze
   CACHEABLE_EVENTS = %w[].freeze
 
   pattr_initialize [:hook!, :event!]
diff --git a/lib/integrations/openai/openai_prompts/fix_spelling_grammar.liquid b/lib/integrations/openai/openai_prompts/fix_spelling_grammar.liquid
new file mode 100644
index 000000000..520487357
--- /dev/null
+++ b/lib/integrations/openai/openai_prompts/fix_spelling_grammar.liquid
@@ -0,0 +1,17 @@
+You are an AI writing assistant integrated into Chatwoot, an omnichannel customer support platform. Your task is to fix grammar and spelling in a customer support message while preserving the original meaning, intent, and tone.
+
+You will receive a message and must return a corrected version with only grammar, spelling, and punctuation fixes applied.
+
+Important guidelines:
+- Preserve the original meaning, intent, and tone exactly
+- Do not rephrase, rewrite, or change wording beyond grammar, spelling, and punctuation
+- Do not add or remove any information
+- Do not simplify, shorten, or expand the message
+- Ensure the output remains appropriate for customer support
+
+Super Important:
+- If the message has some markdown formatting, keep the formatting as it is. 
+- Block quotes (lines starting with >) contain quoted text from the customer's previous message. Preserve this quoted text exactly as written (do not modify the customer's words inside the block quote), but DO improve the agent's reply that follows the block quote.
+- Ensure the output is in the user's original language
+
+Output only the corrected message, with no preamble, tags, or explanation.
diff --git a/lib/integrations/openai/openai_prompts/improve.liquid b/lib/integrations/openai/openai_prompts/improve.liquid
new file mode 100644
index 000000000..7e3d35e82
--- /dev/null
+++ b/lib/integrations/openai/openai_prompts/improve.liquid
@@ -0,0 +1,43 @@
+You are a writing assistant for customer support agents. Your task is to improve a draft message by enhancing its language, clarity, and tone—not by adding new content.
+
+<conversation_context>
+{{ conversation_context }}
+</conversation_context>
+
+<draft_message>
+{{ draft_message }}
+</draft_message>
+
+## Your Task
+
+Rewrite the draft to be clearer, warmer, and more professional while preserving the agent's intent.
+
+## What "Improve" Means
+
+Improve the **quality** of the message, not the **quantity** of information:
+
+| DO | DON'T |
+|-----|--------|
+| Fix grammar, spelling, punctuation | Add new information or steps |
+| Improve sentence structure and flow | Expand scope beyond the draft |
+| Make tone warmer and more professional | Add offers ("I can also...", "Would you like...") |
+| Use contact's name naturally | Invent technical details, links, or examples |
+| Make vague phrases more natural | Turn a brief answer into a long one |
+
+## Using the Context
+
+Use the conversation context to:
+- Understand what's being discussed (so improvements make sense)
+- Gauge appropriate tone (formal/casual, frustrated customer, etc.)
+- Personalize with the contact's name when natural
+
+Do NOT use the context to fill in gaps or add information the agent didn't include.
+
+## Output Rules
+
+- Keep the improved message at a similar length to the draft (brief stays brief)
+- Preserve any markdown formatting
+- Block quotes (lines starting with `>`) contain quoted customer text—keep this unchanged, only improve the agent's reply
+- Output in the same language as the draft
+- Output only the improved message, no commentary
+
diff --git a/lib/integrations/openai/openai_prompts/reply.txt b/lib/integrations/openai/openai_prompts/reply.liquid
similarity index 100%
rename from lib/integrations/openai/openai_prompts/reply.txt
rename to lib/integrations/openai/openai_prompts/reply.liquid
diff --git a/lib/integrations/openai/openai_prompts/summary.txt b/lib/integrations/openai/openai_prompts/summary.liquid
similarity index 100%
rename from lib/integrations/openai/openai_prompts/summary.txt
rename to lib/integrations/openai/openai_prompts/summary.liquid
diff --git a/lib/integrations/openai/openai_prompts/tone_rewrite.liquid b/lib/integrations/openai/openai_prompts/tone_rewrite.liquid
new file mode 100644
index 000000000..c140a93df
--- /dev/null
+++ b/lib/integrations/openai/openai_prompts/tone_rewrite.liquid
@@ -0,0 +1,35 @@
+You are an AI writing assistant integrated into Chatwoot, an omnichannel customer support platform. Your task is to rewrite customer support message to match a specific tone while preserving the original meaning and intent.
+
+Here is the tone to apply to the message you will receive:
+<tone_instruction>
+{% case tone %}
+{% when 'friendly' %}
+Warm, approachable, and personable. Use conversational language, positive words, and show empathy. May include phrases like "Happy to help!" or "I'd be glad to..."
+{% when 'confident' %}
+Assertive and assured. Use definitive language, avoid hedging words like "maybe" or "I think". Be direct and authoritative while remaining helpful.
+{% when 'straightforward' %}
+Clear, direct, and to-the-point. Remove unnecessary words, get straight to the information or solution. No fluff or extra pleasantries.
+{% when 'casual' %}
+Relaxed and informal. Use contractions, simpler words, and a conversational style. Friendly but less formal than professional tone.
+{% when 'professional' %}
+Formal, polished, and business-appropriate. Use complete sentences, proper grammar, and maintain respectful distance. Avoid slang or overly casual language.
+{% else %}
+Warm, approachable, and personable. Use conversational language, positive words, and show empathy. May include phrases like "Happy to help!" or "I'd be glad to..."
+{% endcase %}
+</tone_instruction>
+
+Your task is to rewrite the message according to the specified tone instructions.
+
+Important guidelines:
+- Preserve the core meaning and all important information from the original message
+- Keep the rewritten message concise and appropriate for customer support
+- Maintain helpfulness and respect regardless of tone
+- Do not add information that wasn't in the original message
+- Do not remove critical details or instructions
+
+Super Important:
+- If the message has some markdown formatting, keep the formatting as it is. 
+- Block quotes (lines starting with >) contain quoted text from the customer's previous message. Preserve this quoted text exactly as written (do not modify the customer's words inside the block quote), but DO improve the agent's reply that follows the block quote.
+- Ensure the output is in the user's original language
+
+Output only the rewritten message without any preamble, tags or explanation.
diff --git a/lib/integrations/openai/openai_prompts/tone_rewrite.txt b/lib/integrations/openai/openai_prompts/tone_rewrite.txt
deleted file mode 100644
index 200a8c652..000000000
--- a/lib/integrations/openai/openai_prompts/tone_rewrite.txt
+++ /dev/null
@@ -1,19 +0,0 @@
-You are an AI writing assistant integrated into Chatwoot, an omnichannel customer support platform. Your task is to rewrite customer support message to match a specific tone while preserving the original meaning and intent.
-
-Here is the tone to apply to the message you will receive:
-<tone_instruction>
-%s
-</tone_instruction>
-
-Your task is to rewrite the message according to the specified tone instructions.
-
-Important guidelines:
-- Preserve the core meaning and all important information from the original message
-- Keep the rewritten message concise and appropriate for customer support
-- Maintain helpfulness and respect regardless of tone
-- Do not add information that wasn't in the original message
-- Do not remove critical details or instructions
-- Ensure that the reply should be in user language.
-
-Output only the rewritten message without any preamble, tags or explanation.
-
diff --git a/lib/integrations/openai/processor_service.rb b/lib/integrations/openai/processor_service.rb
index 0f648cf22..796c24be1 100644
--- a/lib/integrations/openai/processor_service.rb
+++ b/lib/integrations/openai/processor_service.rb
@@ -1,5 +1,4 @@
 class Integrations::Openai::ProcessorService < Integrations::LlmBaseService
-  LANGUAGE_INSTRUCTION = 'Ensure that the reply should be in user language.'.freeze
   def reply_suggestion_message
     make_api_call(reply_suggestion_body)
   end
@@ -8,62 +7,74 @@ class Integrations::Openai::ProcessorService < Integrations::LlmBaseService
     make_api_call(summarize_body)
   end
 
-  def confident_message
-    tone_instruction = determine_tone_instruction('confident')
-    make_api_call(build_api_call_body(tone_rewrite_prompt(tone_instruction)))
+  def fix_spelling_grammar_message
+    call_llm_with_prompt(fix_spelling_grammar_prompt)
   end
 
-  def fix_spelling_grammar_message
-    make_api_call(build_api_call_body('Please fix the spelling and grammar of the following response. ' \
-                                      "#{LANGUAGE_INSTRUCTION}"))
+  def confident_message
+    call_llm_with_prompt(tone_rewrite_prompt('confident'))
   end
 
   def straightforward_message
-    tone_instruction = determine_tone_instruction('straightforward')
-    make_api_call(build_api_call_body(tone_rewrite_prompt(tone_instruction)))
+    call_llm_with_prompt(tone_rewrite_prompt('straightforward'))
   end
 
   def casual_message
-    tone_instruction = determine_tone_instruction('casual')
-    make_api_call(build_api_call_body(tone_rewrite_prompt(tone_instruction)))
+    call_llm_with_prompt(tone_rewrite_prompt('casual'))
   end
 
-  def make_friendly_message
-    tone_instruction = determine_tone_instruction('friendly')
-    make_api_call(build_api_call_body(tone_rewrite_prompt(tone_instruction)))
-  end
-
-  def make_formal_message
-    tone_instruction = determine_tone_instruction('formal')
-    make_api_call(build_api_call_body(tone_rewrite_prompt(tone_instruction)))
+  def friendly_message
+    call_llm_with_prompt(tone_rewrite_prompt('friendly'))
   end
 
   def professional_message
-    tone_instruction = determine_tone_instruction('professional')
-    make_api_call(build_api_call_body(tone_rewrite_prompt(tone_instruction)))
+    call_llm_with_prompt(tone_rewrite_prompt('professional'))
+  end
+
+  def improve_message
+    template = prompt_from_file('improve')
+
+    system_prompt = render_liquid_template(template, {
+                                             'conversation_context' => conversation.to_llm_text(include_contact_details: true),
+                                             'draft_message' => event['data']['content']
+                                           })
+
+    call_llm_with_prompt(system_prompt, event['data']['content'])
   end
 
   private
 
-  def prompt_from_file(file_name, enterprise: false)
-    path = enterprise ? 'enterprise/lib/enterprise/integrations/openai_prompts' : 'lib/integrations/openai/openai_prompts'
-    Rails.root.join(path, "#{file_name}.txt").read
-  end
-
-  def tone_rewrite_prompt(tone_instruction)
-    format(prompt_from_file('tone_rewrite'), tone_instruction)
-  end
-
-  def build_api_call_body(system_content, user_content = event['data']['content'])
-    {
+  def call_llm_with_prompt(system_content, user_content = event['data']['content'])
+    body = {
       model: GPT_MODEL,
       messages: [
         { role: 'system', content: system_content },
         { role: 'user', content: user_content }
-      ]
+      ],
+      reasoning_effort: 'low' # TODO: make this configurable
     }.to_json
+    make_api_call(body)
   end
 
+  def prompt_from_file(file_name, enterprise: false)
+    path = enterprise ? 'enterprise/lib/enterprise/integrations/openai_prompts' : 'lib/integrations/openai/openai_prompts'
+    Rails.root.join(path, "#{file_name}.liquid").read
+  end
+
+  def render_liquid_template(template_content, variables = {})
+    Liquid::Template.parse(template_content).render(variables)
+  end
+
+  def tone_rewrite_prompt(tone)
+    template = prompt_from_file('tone_rewrite')
+    render_liquid_template(template, 'tone' => tone)
+  end
+
+  def fix_spelling_grammar_prompt
+    prompt_from_file('fix_spelling_grammar')
+  end
+
+  # TODO: Replace with LlmFormattable or enterprise/lib/captain/prompts/snippets/conversation.liquid
   def conversation_messages(in_array_format: false)
     messages = init_messages_body(in_array_format)
 
@@ -136,26 +147,6 @@ class Integrations::Openai::ProcessorService < Integrations::LlmBaseService
       ].concat(conversation_messages(in_array_format: true))
     }.to_json
   end
-
-  def determine_tone_instruction(tone)
-    case tone
-    when 'friendly'
-      'Warm, approachable, and personable. Use conversational language, positive words, and show empathy. ' \
-      'May include phrases like \"Happy to help!\" or \"I\'d be glad to...\"'
-    when 'confident'
-      'Assertive and assured. Use definitive language, avoid hedging words like \"maybe\" or \"I think\". ' \
-      'Be direct and authoritative while remaining helpful.'
-    when 'straightforward'
-      'Clear, direct, and to-the-point. Remove unnecessary words, get straight to the information or solution. No fluff or extra pleasantries.'
-    when 'casual'
-      'Relaxed and informal. Use contractions, simpler words, and a conversational style. Friendly but less formal than professional tone.'
-    when 'professional'
-      'Formal, polished, and business-appropriate. Use complete sentences, proper grammar, ' \
-      'and maintain respectful distance. Avoid slang or overly casual language.'
-    else
-      determine_tone_instruction('friendly')
-    end
-  end
 end
 
 Integrations::Openai::ProcessorService.prepend_mod_with('Integrations::OpenaiProcessorService')
diff --git a/lib/llm/config.rb b/lib/llm/config.rb
index 94836d746..f983f5daf 100644
--- a/lib/llm/config.rb
+++ b/lib/llm/config.rb
@@ -1,7 +1,7 @@
 require 'ruby_llm'
 
 module Llm::Config
-  DEFAULT_MODEL = 'gpt-4o-mini'.freeze
+  DEFAULT_MODEL = 'gpt-5-mini'.freeze
   class << self
     def initialized?
       @initialized ||= false
diff --git a/package.json b/package.json
index 84c266880..c2a1fde51 100644
--- a/package.json
+++ b/package.json
@@ -39,6 +39,7 @@
     "@formkit/vue": "^1.6.7",
     "@hcaptcha/vue3-hcaptcha": "^1.3.0",
     "@highlightjs/vue-plugin": "^2.1.0",
+    "@iconify-json/fluent": "^1.2.32",
     "@iconify-json/material-symbols": "^1.2.10",
     "@lk77/vue3-color": "^3.0.6",
     "@radix-ui/colors": "^3.0.0",
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index 602a3c5c7..8a1bf5861 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -37,6 +37,9 @@ importers:
       '@highlightjs/vue-plugin':
         specifier: ^2.1.0
         version: 2.1.0(highlight.js@11.10.0)(vue@3.5.12(typescript@5.6.2))
+      '@iconify-json/fluent':
+        specifier: ^1.2.32
+        version: 1.2.36
       '@iconify-json/material-symbols':
         specifier: ^1.2.10
         version: 1.2.10
@@ -928,6 +931,9 @@ packages:
     resolution: {integrity: sha512-93zYdMES/c1D69yZiKDBj0V24vqNzB/koF26KPaagAfd3P/4gUlh3Dys5ogAK+Exi9QyzlD8x/08Zt7wIKcDcA==}
     deprecated: Use @eslint/object-schema instead
 
+  '@iconify-json/fluent@1.2.36':
+    resolution: {integrity: sha512-DhxwOu5Qiq09o2ehHeUK0I9lC01OeWFlxXP7pIslM0vbi8VuplrrJ7kMg21GJy87iOCevzxf6gTU7TLPGgSknw==}
+
   '@iconify-json/logos@1.2.3':
     resolution: {integrity: sha512-JLHS5hgZP1b55EONAWNeqBUuriRfRNKWXK4cqYx0PpVaJfIIMiiMxFfvoQiX/bkE9XgkLhcKmDUqL3LXPdXPwQ==}
 
@@ -5382,6 +5388,10 @@ snapshots:
 
   '@humanwhocodes/object-schema@2.0.3': {}
 
+  '@iconify-json/fluent@1.2.36':
+    dependencies:
+      '@iconify/types': 2.0.0
+
   '@iconify-json/logos@1.2.3':
     dependencies:
       '@iconify/types': 2.0.0
diff --git a/spec/lib/integrations/openai/processor_service_spec.rb b/spec/lib/integrations/openai/processor_service_spec.rb
index f9bd5531f..cf1860c72 100644
--- a/spec/lib/integrations/openai/processor_service_spec.rb
+++ b/spec/lib/integrations/openai/processor_service_spec.rb
@@ -53,13 +53,8 @@ RSpec.describe Integrations::Openai::ProcessorService do
 
         it 'sets system instructions' do
           service.perform
-          if event_name == 'fix_spelling_grammar'
-            expect(mock_chat).to have_received(:with_instructions)
-              .with(a_string_including('Please fix the spelling and grammar'))
-          else
-            expect(mock_chat).to have_received(:with_instructions)
-              .with(a_string_including('You are an AI writing assistant integrated into Chatwoot'))
-          end
+          expect(mock_chat).to have_received(:with_instructions)
+            .with(a_string_including('You are an AI writing assistant integrated into Chatwoot'))
         end
       end
 
@@ -67,8 +62,7 @@ RSpec.describe Integrations::Openai::ProcessorService do
       it_behaves_like 'text transformation operation', 'fix_spelling_grammar'
       it_behaves_like 'text transformation operation', 'casual'
       it_behaves_like 'text transformation operation', 'professional'
-      it_behaves_like 'text transformation operation', 'make_friendly'
-      it_behaves_like 'text transformation operation', 'make_formal'
+      it_behaves_like 'text transformation operation', 'friendly'
       it_behaves_like 'text transformation operation', 'straightforward'
     end
 
diff --git a/tailwind.config.js b/tailwind.config.js
index 18bd54948..bc68134d8 100644
--- a/tailwind.config.js
+++ b/tailwind.config.js
@@ -259,6 +259,7 @@ const tailwindConfig = {
           'ph',
           'material-symbols',
           'teenyicons',
+          'fluent',
         ]),
       },
     }),
diff --git a/theme/colors.js b/theme/colors.js
index 52870e75b..47c786308 100644
--- a/theme/colors.js
+++ b/theme/colors.js
@@ -210,6 +210,21 @@ export const colors = {
       12: 'rgb(var(--gray-12) / <alpha-value>)',
     },
 
+    violet: {
+      1: 'rgb(var(--violet-1) / <alpha-value>)',
+      2: 'rgb(var(--violet-2) / <alpha-value>)',
+      3: 'rgb(var(--violet-3) / <alpha-value>)',
+      4: 'rgb(var(--violet-4) / <alpha-value>)',
+      5: 'rgb(var(--violet-5) / <alpha-value>)',
+      6: 'rgb(var(--violet-6) / <alpha-value>)',
+      7: 'rgb(var(--violet-7) / <alpha-value>)',
+      8: 'rgb(var(--violet-8) / <alpha-value>)',
+      9: 'rgb(var(--violet-9) / <alpha-value>)',
+      10: 'rgb(var(--violet-10) / <alpha-value>)',
+      11: 'rgb(var(--violet-11) / <alpha-value>)',
+      12: 'rgb(var(--violet-12) / <alpha-value>)',
+    },
+
     black: '#000000',
     brand: '#2781F6',
     background: 'rgb(var(--background-color) / <alpha-value>)',