diff --git a/app/javascript/dashboard/components-next/Campaigns/CampaignCard/LiveChatCampaignDetails.vue b/app/javascript/dashboard/components-next/Campaigns/CampaignCard/LiveChatCampaignDetails.vue
index 6f8c548d4..6a883ce6b 100644
--- a/app/javascript/dashboard/components-next/Campaigns/CampaignCard/LiveChatCampaignDetails.vue
+++ b/app/javascript/dashboard/components-next/Campaigns/CampaignCard/LiveChatCampaignDetails.vue
@@ -1,7 +1,8 @@
 <script setup>
-import Thumbnail from 'dashboard/components-next/thumbnail/Thumbnail.vue';
 import { computed } from 'vue';
 import { useI18n } from 'vue-i18n';
+
+import Avatar from 'dashboard/components-next/avatar/Avatar.vue';
 import Icon from 'dashboard/components-next/icon/Icon.vue';
 
 const props = defineProps({
@@ -33,10 +34,11 @@ const senderThumbnailSrc = computed(() => props.sender?.thumbnail);
     {{ t('CAMPAIGN.LIVE_CHAT.CARD.CAMPAIGN_DETAILS.SENT_BY') }}
   </span>
   <div class="flex items-center gap-1.5 flex-shrink-0">
-    <Thumbnail
-      :author="sender || { name: senderName }"
+    <Avatar
       :name="senderName"
       :src="senderThumbnailSrc"
+      :size="16"
+      rounded-full
     />
     <span class="text-sm font-medium text-n-slate-12">
       {{ senderName }}
diff --git a/app/javascript/dashboard/components-next/Contacts/ContactsCard/ContactsCard.vue b/app/javascript/dashboard/components-next/Contacts/ContactsCard/ContactsCard.vue
index bd1f46efc..3c3e25a0d 100644
--- a/app/javascript/dashboard/components-next/Contacts/ContactsCard/ContactsCard.vue
+++ b/app/javascript/dashboard/components-next/Contacts/ContactsCard/ContactsCard.vue
@@ -8,7 +8,7 @@ import { debounce } from '@chatwoot/utils';
 import CardLayout from 'dashboard/components-next/CardLayout.vue';
 import ContactsForm from 'dashboard/components-next/Contacts/ContactsForm/ContactsForm.vue';
 import Button from 'dashboard/components-next/button/Button.vue';
-import Thumbnail from 'dashboard/components-next/thumbnail/Thumbnail.vue';
+import Avatar from 'dashboard/components-next/avatar/Avatar.vue';
 
 const props = defineProps({
   id: { type: Number, required: true },
@@ -27,11 +27,6 @@ const router = useRouter();
 const { t } = useI18n();
 const store = useStore();
 
-const author = computed(() => ({
-  name: props.name,
-  thumbnail: props.thumbnail,
-}));
-
 const updateContact = async updatedData => {
   await store.dispatch('contacts/update', updatedData);
   await store.dispatch('contacts/fetchContactableInbox', props.id);
@@ -58,7 +53,7 @@ const onClickViewDetails = () => {
   <CardLayout :key="id" layout="row">
     <template #header>
       <div class="flex items-center justify-between gap-4">
-        <Thumbnail :author="author" :name="name" :src="thumbnail" :size="48" />
+        <Avatar :name="name" :src="thumbnail" :size="48" rounded-full />
         <div class="flex flex-col gap-1">
           <div class="flex items-center gap-2">
             <span class="text-sm font-medium truncate text-n-slate-12">{{
diff --git a/app/javascript/dashboard/components-next/Contacts/ContactsSidebar/ContactNotes.vue b/app/javascript/dashboard/components-next/Contacts/ContactsSidebar/ContactNotes.vue
index 634b7a954..d9e56d3a4 100644
--- a/app/javascript/dashboard/components-next/Contacts/ContactsSidebar/ContactNotes.vue
+++ b/app/javascript/dashboard/components-next/Contacts/ContactsSidebar/ContactNotes.vue
@@ -7,7 +7,7 @@ import { useMessageFormatter } from 'shared/composables/useMessageFormatter';
 import { dynamicTime } from 'shared/helpers/timeHelper';
 
 import Editor from 'dashboard/components-next/Editor/Editor.vue';
-import Thumbnail from 'dashboard/components-next/thumbnail/Thumbnail.vue';
+import Avatar from 'dashboard/components-next/avatar/Avatar.vue';
 import Spinner from 'dashboard/components-next/spinner/Spinner.vue';
 import Button from 'dashboard/components-next/Button/Button.vue';
 
@@ -84,23 +84,24 @@ const onDelete = noteId => {
         class="flex flex-col gap-2 px-6 py-2 border-b border-n-strong group/note"
       >
         <div class="flex items-center justify-between">
-          <div class="flex items-center gap-1.5 py-2.5">
-            <Thumbnail
-              :author="note.user || { name: note.user.name }"
+          <div class="flex items-center gap-1.5 py-2.5 min-w-0">
+            <Avatar
               :name="note.user.name"
               :src="note.user.thumbnail"
+              :size="16"
+              rounded-full
             />
-            <span
-              class="inline-flex items-center gap-1 text-sm text-n-slate-11"
-            >
-              <span class="text-sm font-medium text-n-slate-11">
-                {{ getWrittenBy(note) }}
+            <div class="min-w-0 truncate">
+              <span
+                class="inline-flex items-center gap-1 text-sm text-n-slate-11"
+              >
+                <span class="font-medium">{{ getWrittenBy(note) }}</span>
+                {{ $t('CONTACTS_LAYOUT.SIDEBAR.NOTES.WROTE') }}
+                <span class="font-medium">{{
+                  dynamicTime(note.createdAt)
+                }}</span>
               </span>
-              {{ $t('CONTACTS_LAYOUT.SIDEBAR.NOTES.WROTE') }}
-              <span class="text-sm font-medium text-n-slate-11">
-                {{ dynamicTime(note.createdAt) }}
-              </span>
-            </span>
+            </div>
           </div>
           <Button
             variant="faded"
diff --git a/app/javascript/dashboard/components-next/HelpCenter/ArticleCard/ArticleCard.vue b/app/javascript/dashboard/components-next/HelpCenter/ArticleCard/ArticleCard.vue
index c9ee0468d..2d8fa78c7 100644
--- a/app/javascript/dashboard/components-next/HelpCenter/ArticleCard/ArticleCard.vue
+++ b/app/javascript/dashboard/components-next/HelpCenter/ArticleCard/ArticleCard.vue
@@ -13,7 +13,7 @@ import Icon from 'dashboard/components-next/icon/Icon.vue';
 import CardLayout from 'dashboard/components-next/CardLayout.vue';
 import DropdownMenu from 'dashboard/components-next/dropdown-menu/DropdownMenu.vue';
 import Button from 'dashboard/components-next/button/Button.vue';
-import Thumbnail from 'dashboard/components-next/thumbnail/Thumbnail.vue';
+import Avatar from 'dashboard/components-next/avatar/Avatar.vue';
 
 const props = defineProps({
   id: {
@@ -101,7 +101,7 @@ const categoryName = computed(() => {
 });
 
 const authorName = computed(() => {
-  return props.author?.name || props.author?.availableName || '-';
+  return props.author?.name || props.author?.availableName || '';
 });
 
 const authorThumbnailSrc = computed(() => {
@@ -164,13 +164,14 @@ const handleClick = id => {
       <div class="flex items-center justify-between w-full gap-4">
         <div class="flex items-center gap-4">
           <div class="flex items-center gap-1">
-            <Thumbnail
-              :author="author"
+            <Avatar
               :name="authorName"
               :src="authorThumbnailSrc"
+              :size="16"
+              rounded-full
             />
             <span class="text-sm truncate text-n-slate-11">
-              {{ authorName }}
+              {{ authorName || '-' }}
             </span>
           </div>
           <span class="block text-sm whitespace-nowrap text-n-slate-11">
diff --git a/app/javascript/dashboard/components-next/HelpCenter/Pages/ArticleEditorPage/ArticleEditorControls.vue b/app/javascript/dashboard/components-next/HelpCenter/Pages/ArticleEditorPage/ArticleEditorControls.vue
index db45ee6b7..6b2c3543d 100644
--- a/app/javascript/dashboard/components-next/HelpCenter/Pages/ArticleEditorPage/ArticleEditorControls.vue
+++ b/app/javascript/dashboard/components-next/HelpCenter/Pages/ArticleEditorPage/ArticleEditorControls.vue
@@ -6,7 +6,7 @@ import { OnClickOutside } from '@vueuse/components';
 import { useMapGetter } from 'dashboard/composables/store';
 
 import Button from 'dashboard/components-next/button/Button.vue';
-import Thumbnail from 'dashboard/components-next/thumbnail/Thumbnail.vue';
+import Avatar from 'dashboard/components-next/avatar/Avatar.vue';
 import DropdownMenu from 'dashboard/components-next/dropdown-menu/DropdownMenu.vue';
 import ArticleEditorProperties from 'dashboard/components-next/HelpCenter/Pages/ArticleEditorPage/ArticleEditorProperties.vue';
 
@@ -50,7 +50,7 @@ const author = computed(() => {
 });
 
 const authorName = computed(
-  () => author.value?.name || author.value?.available_name || '-'
+  () => author.value?.name || author.value?.available_name || ''
 );
 const authorThumbnailSrc = computed(() => author.value?.thumbnail);
 
@@ -186,17 +186,14 @@ onMounted(() => {
           text-variant="info"
           @click="openAgentsList = !openAgentsList"
         >
-          <Thumbnail
-            :author="author"
+          <Avatar
             :name="authorName"
-            :size="20"
             :src="authorThumbnailSrc"
+            :size="20"
+            rounded-full
           />
-          <span
-            v-if="author"
-            class="text-sm text-n-slate-12 hover:text-n-slate-11"
-          >
-            {{ author.available_name }}
+          <span class="text-sm text-n-slate-12 hover:text-n-slate-11">
+            {{ authorName || '-' }}
           </span>
         </Button>
         <DropdownMenu
diff --git a/app/javascript/dashboard/components-next/HelpCenter/PortalSwitcher/PortalSwitcher.vue b/app/javascript/dashboard/components-next/HelpCenter/PortalSwitcher/PortalSwitcher.vue
index f88bd99e3..a182c78d3 100644
--- a/app/javascript/dashboard/components-next/HelpCenter/PortalSwitcher/PortalSwitcher.vue
+++ b/app/javascript/dashboard/components-next/HelpCenter/PortalSwitcher/PortalSwitcher.vue
@@ -6,7 +6,7 @@ import { useMapGetter, useStore } from 'dashboard/composables/store.js';
 import { buildPortalURL } from 'dashboard/helper/portalHelper';
 
 import Button from 'dashboard/components-next/button/Button.vue';
-import Thumbnail from 'dashboard/components-next/thumbnail/Thumbnail.vue';
+import Avatar from 'dashboard/components-next/avatar/Avatar.vue';
 
 const emit = defineEmits(['close', 'createPortal']);
 
@@ -148,14 +148,13 @@ const redirectToPortalHomePage = () => {
         <span class="text-sm font-medium truncate text-n-slate-12">
           {{ portal.name || '' }}
         </span>
-        <Thumbnail
+        <Avatar
           v-if="portal"
-          :author="portal"
           :name="portal.name"
-          :size="20"
           :src="getPortalThumbnailSrc(portal)"
-          :show-author-name="false"
+          :size="20"
           icon-name="i-lucide-building-2"
+          rounded-full
         />
       </Button>
     </div>
diff --git a/app/javascript/dashboard/components-next/avatar/Avatar.vue b/app/javascript/dashboard/components-next/avatar/Avatar.vue
index d558f030a..88891a0ab 100644
--- a/app/javascript/dashboard/components-next/avatar/Avatar.vue
+++ b/app/javascript/dashboard/components-next/avatar/Avatar.vue
@@ -1,6 +1,9 @@
 <script setup>
-import Icon from 'dashboard/components-next/icon/Icon.vue';
 import { computed, ref, watch } from 'vue';
+import { useI18n } from 'vue-i18n';
+import { removeEmoji } from 'shared/helpers/emoji';
+
+import Icon from 'dashboard/components-next/icon/Icon.vue';
 import wootConstants from 'dashboard/constants/globals';
 
 const props = defineProps({
@@ -27,34 +30,109 @@ const props = defineProps({
   status: {
     type: String,
     default: null,
-    validator: value => {
-      if (!value) return true;
-      return wootConstants.AVAILABILITY_STATUS_KEYS.includes(value);
-    },
+    validator: value =>
+      !value || wootConstants.AVAILABILITY_STATUS_KEYS.includes(value),
+  },
+  iconName: {
+    type: String,
+    default: null,
   },
 });
+
 const emit = defineEmits(['upload']);
 
+const { t } = useI18n();
+
 const isImageValid = ref(true);
 
-function invalidateCurrentImage() {
-  isImageValid.value = false;
-}
+const AVATAR_COLORS = {
+  dark: [
+    ['#4B143D', '#FF8DCC'],
+    ['#3F220D', '#FFA366'],
+    ['#2A2A2A', '#ADB1B8'],
+    ['#023B37', '#0BD8B6'],
+    ['#27264D', '#A19EFF'],
+    ['#1D2E62', '#9EB1FF'],
+  ],
+  light: [
+    ['#FBDCEF', '#C2298A'],
+    ['#FFE0BB', '#99543A'],
+    ['#E8E8E8', '#60646C'],
+    ['#CCF3EA', '#008573'],
+    ['#EBEBFE', '#4747C2'],
+    ['#E1E9FF', '#3A5BC7'],
+  ],
+  default: { bg: '#E8E8E8', text: '#60646C' },
+};
+
+const STATUS_CLASSES = {
+  online: 'bg-n-teal-10',
+  busy: 'bg-n-amber-10',
+  offline: 'bg-n-slate-10',
+};
+
+const showDefaultAvatar = computed(() => !props.src && !props.name);
 
 const initials = computed(() => {
-  const splitNames = props.name.split(' ');
-
-  if (splitNames.length > 1) {
-    const firstName = splitNames[0];
-    const lastName = splitNames[splitNames.length - 1];
-
-    return firstName[0] + lastName[0];
-  }
-
-  const firstName = splitNames[0];
-  return firstName[0];
+  if (!props.name) return '';
+  const words = removeEmoji(props.name).split(/\s+/);
+  return words.length === 1
+    ? words[0].charAt(0).toUpperCase()
+    : words
+        .slice(0, 2)
+        .map(word => word.charAt(0))
+        .join('')
+        .toUpperCase();
 });
 
+const getColorsByNameLength = computed(() => {
+  if (!props.name) return AVATAR_COLORS.default;
+
+  const index = props.name.length % AVATAR_COLORS.light.length;
+  return {
+    bg: AVATAR_COLORS.light[index][0],
+    darkBg: AVATAR_COLORS.dark[index][0],
+    text: AVATAR_COLORS.light[index][1],
+    darkText: AVATAR_COLORS.dark[index][1],
+  };
+});
+
+const containerStyles = computed(() => ({
+  width: `${props.size}px`,
+  height: `${props.size}px`,
+}));
+
+const avatarStyles = computed(() => ({
+  ...containerStyles.value,
+  backgroundColor:
+    !showDefaultAvatar.value && (!props.src || !isImageValid.value)
+      ? getColorsByNameLength.value.bg
+      : undefined,
+  color:
+    !showDefaultAvatar.value && (!props.src || !isImageValid.value)
+      ? getColorsByNameLength.value.text
+      : undefined,
+  '--dark-bg': getColorsByNameLength.value.darkBg,
+  '--dark-text': getColorsByNameLength.value.darkText,
+}));
+
+const badgeStyles = computed(() => ({
+  top: `${props.size - 10}px`,
+  left: `${props.size - 10}px`,
+}));
+
+const iconStyles = computed(() => ({
+  fontSize: `${props.size / 1.6}px`,
+}));
+
+const initialsStyles = computed(() => ({
+  fontSize: `${props.size / 1.8}px`,
+}));
+
+const invalidateCurrentImage = () => {
+  isImageValid.value = false;
+};
+
 watch(
   () => props.src,
   () => {
@@ -64,48 +142,63 @@ watch(
 </script>
 
 <template>
-  <span
-    class="relative inline"
-    :style="{
-      width: `${size}px`,
-      height: `${size}px`,
-    }"
-  >
-    <slot name="badge" :size>
+  <span class="relative inline-flex" :style="containerStyles">
+    <!-- Status Badge -->
+    <slot name="badge" :size="size">
       <div
+        v-if="status"
         class="rounded-full w-2.5 h-2.5 absolute z-20"
-        :style="{
-          top: `${size - 10}px`,
-          left: `${size - 10}px`,
-        }"
-        :class="{
-          'bg-n-teal-10': status === 'online',
-          'bg-n-amber-10': status === 'busy',
-          'bg-n-slate-10': status === 'offline',
-        }"
+        :style="badgeStyles"
+        :class="STATUS_CLASSES[status]"
       />
     </slot>
+
+    <!-- Avatar Container -->
     <span
       role="img"
-      class="inline-flex relative items-center justify-center object-cover overflow-hidden font-medium bg-woot-50 text-woot-500 group/avatar"
-      :class="{
-        'rounded-full': roundedFull,
-        'rounded-xl': !roundedFull,
-      }"
-      :style="{
-        width: `${size}px`,
-        height: `${size}px`,
-      }"
+      class="relative inline-flex items-center justify-center object-cover overflow-hidden font-medium"
+      :class="[
+        roundedFull ? 'rounded-full' : 'rounded-xl',
+        {
+          'dark:!bg-[var(--dark-bg)] dark:!text-[var(--dark-text)]':
+            !showDefaultAvatar && (!src || !isImageValid),
+          'bg-n-slate-3 dark:bg-n-slate-4': showDefaultAvatar,
+        },
+      ]"
+      :style="avatarStyles"
     >
-      <img
+      <!-- Avatar Content -->
+      <component
+        :is="src && isImageValid ? 'img' : 'div'"
         v-if="src && isImageValid"
         :src="src"
         :alt="name"
         @error="invalidateCurrentImage"
       />
-      <span v-else>
-        {{ initials }}
-      </span>
+
+      <template v-else>
+        <!-- Custom Icon -->
+        <Icon v-if="iconName" :icon="iconName" :style="iconStyles" />
+
+        <!-- Initials -->
+        <span
+          v-else-if="!showDefaultAvatar"
+          :style="initialsStyles"
+          class="select-none"
+        >
+          {{ initials }}
+        </span>
+
+        <!-- Fallback Icon if no name or image -->
+        <Icon
+          v-else
+          v-tooltip.top-start="t('THUMBNAIL.AUTHOR.NOT_AVAILABLE')"
+          icon="i-lucide-user"
+          :style="iconStyles"
+        />
+      </template>
+
+      <!-- Upload Overlay -->
       <div
         v-if="allowUpload"
         role="button"
diff --git a/app/javascript/dashboard/components-next/dropdown-menu/DropdownMenu.vue b/app/javascript/dashboard/components-next/dropdown-menu/DropdownMenu.vue
index 1a031c7c6..d9b3c5568 100644
--- a/app/javascript/dashboard/components-next/dropdown-menu/DropdownMenu.vue
+++ b/app/javascript/dashboard/components-next/dropdown-menu/DropdownMenu.vue
@@ -2,7 +2,7 @@
 import { defineProps, defineEmits } from 'vue';
 
 import Icon from 'dashboard/components-next/icon/Icon.vue';
-import Thumbnail from 'dashboard/components-next/thumbnail/Thumbnail.vue';
+import Avatar from 'dashboard/components-next/avatar/Avatar.vue';
 
 defineProps({
   menuItems: {
@@ -41,12 +41,12 @@ const handleAction = (action, value) => {
       :disabled="item.disabled"
       @click="handleAction(item.action, item.value)"
     >
-      <Thumbnail
+      <Avatar
         v-if="item.thumbnail"
-        :author="item.thumbnail"
         :name="item.thumbnail.name"
-        :size="thumbnailSize"
         :src="item.thumbnail.src"
+        :size="thumbnailSize"
+        rounded-full
       />
       <Icon v-if="item.icon" :icon="item.icon" class="flex-shrink-0" />
       <span v-if="item.emoji" class="flex-shrink-0">{{ item.emoji }}</span>
diff --git a/app/javascript/dashboard/components-next/thumbnail/Thumbnail.vue b/app/javascript/dashboard/components-next/thumbnail/Thumbnail.vue
deleted file mode 100644
index 609cd865e..000000000
--- a/app/javascript/dashboard/components-next/thumbnail/Thumbnail.vue
+++ /dev/null
@@ -1,117 +0,0 @@
-<script setup>
-import { computed, ref } from 'vue';
-import { useI18n } from 'vue-i18n';
-import { removeEmoji } from 'shared/helpers/emoji';
-
-const props = defineProps({
-  author: {
-    type: Object,
-    default: null,
-  },
-  name: {
-    type: String,
-    default: '',
-  },
-  src: {
-    type: String,
-    default: '',
-  },
-  size: {
-    type: Number,
-    default: 16,
-  },
-  showAuthorName: {
-    type: Boolean,
-    default: true,
-  },
-  iconName: {
-    type: String,
-    default: '',
-  },
-});
-
-const { t } = useI18n();
-
-const hasImageLoaded = ref(false);
-const imgError = ref(false);
-
-const authorInitial = computed(() => {
-  if (!props.name) return '';
-  const name = removeEmoji(props.name);
-  const words = name.split(/\s+/);
-
-  if (words.length === 1) {
-    return name.substring(0, 2).toUpperCase();
-  }
-
-  return words
-    .slice(0, 2)
-    .map(word => word[0])
-    .join('')
-    .toUpperCase();
-});
-
-const fontSize = computed(() => {
-  return props.size / 2;
-});
-
-const iconSize = computed(() => {
-  return Math.round(props.size / 1.8);
-});
-
-const shouldShowImage = computed(() => {
-  return props.src && !imgError.value;
-});
-
-const onImgError = () => {
-  imgError.value = true;
-};
-
-const onImgLoad = () => {
-  hasImageLoaded.value = true;
-};
-</script>
-
-<template>
-  <div
-    class="flex items-center justify-center rounded-full bg-n-slate-3 dark:bg-n-slate-4"
-    :style="{ width: `${size}px`, height: `${size}px` }"
-  >
-    <div v-if="author" class="flex items-center justify-center">
-      <img
-        v-if="shouldShowImage"
-        :src="src"
-        :alt="name"
-        class="w-full h-full rounded-full"
-        @load="onImgLoad"
-        @error="onImgError"
-      />
-      <template v-else>
-        <span
-          v-if="showAuthorName"
-          class="flex items-center justify-center font-medium text-n-slate-11"
-          :style="{ fontSize: `${fontSize}px` }"
-        >
-          {{ authorInitial }}
-        </span>
-        <div
-          v-else
-          class="flex items-center justify-center w-full h-full rounded-xl"
-        >
-          <span
-            v-if="iconName"
-            :class="`${iconName} text-n-brand/70`"
-            :style="{ width: `${iconSize}px`, height: `${iconSize}px` }"
-          />
-        </div>
-      </template>
-    </div>
-    <div
-      v-else
-      v-tooltip.top-start="t('THUMBNAIL.AUTHOR.NOT_AVAILABLE')"
-      class="flex items-center justify-center w-4 h-4 rounded-full bg-n-slate-3 dark:bg-n-slate-4"
-    >
-      <span class="i-lucide-user size-2.5 text-n-brand" />
-    </div>
-  </div>
-</template>