diff --git a/app/javascript/dashboard/components-next/Contacts/ContactsForm/ContactsForm.vue b/app/javascript/dashboard/components-next/Contacts/ContactsForm/ContactsForm.vue
index f78245859..f16480999 100644
--- a/app/javascript/dashboard/components-next/Contacts/ContactsForm/ContactsForm.vue
+++ b/app/javascript/dashboard/components-next/Contacts/ContactsForm/ContactsForm.vue
@@ -192,6 +192,11 @@ const getFormBinding = key => {
 };
 
 watch(() => props.contactData, updateState, { immediate: true, deep: true });
+
+// Expose state to parent component for avatar upload
+defineExpose({
+  state,
+});
 </script>
 
 <template>
diff --git a/app/javascript/dashboard/components-next/Contacts/Pages/ContactDetails.vue b/app/javascript/dashboard/components-next/Contacts/Pages/ContactDetails.vue
index 121a85341..127703927 100644
--- a/app/javascript/dashboard/components-next/Contacts/Pages/ContactDetails.vue
+++ b/app/javascript/dashboard/components-next/Contacts/Pages/ContactDetails.vue
@@ -2,10 +2,11 @@
 import { computed, ref } from 'vue';
 import { useI18n } from 'vue-i18n';
 import { useStore } from 'dashboard/composables/store';
+import { useAlert } from 'dashboard/composables';
 import { dynamicTime } from 'shared/helpers/timeHelper';
 import { debounce } from '@chatwoot/utils';
 
-import EditableAvatar from 'dashboard/components-next/avatar/EditableAvatar.vue';
+import Avatar from 'dashboard/components-next/avatar/Avatar.vue';
 import Button from 'dashboard/components-next/button/Button.vue';
 import ContactLabels from 'dashboard/components-next/Contacts/ContactLabels/ContactLabels.vue';
 import ContactsForm from 'dashboard/components-next/Contacts/ContactsForm/ContactsForm.vue';
@@ -25,6 +26,11 @@ const store = useStore();
 
 const confirmDeleteContactDialogRef = ref(null);
 
+const avatarFile = ref(null);
+const avatarUrl = ref('');
+
+const contactsFormRef = ref(null);
+
 const selectedContactData = computed(() => {
   if (!props.selectedContact) return {};
 
@@ -43,6 +49,10 @@ const lastActivityAt = computed(() => {
     : '';
 });
 
+const avatarSrc = computed(() => {
+  return avatarUrl.value ? avatarUrl.value : props.selectedContact?.thumbnail;
+});
+
 const updateContact = async updatedData => {
   await store.dispatch('contacts/update', updatedData);
   await store.dispatch(
@@ -60,14 +70,51 @@ const handleFormUpdate = debounce(
 const openConfirmDeleteContactDialog = () => {
   confirmDeleteContactDialogRef.value?.dialogRef.open();
 };
+
+const handleAvatarUpload = async ({ file, url }) => {
+  avatarFile.value = file;
+  avatarUrl.value = url;
+
+  try {
+    await updateContact({
+      ...contactsFormRef.value?.state,
+      avatar: file,
+      isFormData: true,
+    });
+    useAlert(t('CONTACTS_LAYOUT.DETAILS.AVATAR.UPLOAD.SUCCESS_MESSAGE'));
+  } catch {
+    useAlert(t('CONTACTS_LAYOUT.DETAILS.AVATAR.UPLOAD.ERROR_MESSAGE'));
+  }
+};
+
+const handleAvatarDelete = async () => {
+  try {
+    if (props.selectedContact && props.selectedContact.id) {
+      await store.dispatch('contacts/deleteAvatar', props.selectedContact.id);
+      useAlert(t('CONTACTS_LAYOUT.DETAILS.AVATAR.DELETE.SUCCESS_MESSAGE'));
+    }
+    avatarFile.value = null;
+    avatarUrl.value = '';
+  } catch (error) {
+    useAlert(
+      error.message
+        ? error.message
+        : t('CONTACTS_LAYOUT.DETAILS.AVATAR.DELETE.ERROR_MESSAGE')
+    );
+  }
+};
 </script>
 
 <template>
   <div class="flex flex-col items-start gap-8 pb-6">
     <div class="flex flex-col items-start gap-3">
-      <EditableAvatar
-        :src="selectedContact.thumbnail"
+      <Avatar
+        :src="avatarSrc"
         :name="selectedContact.name"
+        :size="72"
+        allow-upload
+        @upload="handleAvatarUpload"
+        @delete="handleAvatarDelete"
       />
       <div class="flex flex-col gap-1">
         <h3 class="text-base font-medium text-n-slate-12">
@@ -86,6 +133,7 @@ const openConfirmDeleteContactDialog = () => {
       <ContactLabels :contact-id="selectedContact.id" />
     </div>
     <ContactsForm
+      ref="contactsFormRef"
       :contact-data="selectedContactData"
       is-details-view
       @update="handleFormUpdate"
diff --git a/app/javascript/dashboard/components-next/HelpCenter/Pages/PortalSettingsPage/PortalBaseSettings.vue b/app/javascript/dashboard/components-next/HelpCenter/Pages/PortalSettingsPage/PortalBaseSettings.vue
index 2c9815b39..7a066c265 100644
--- a/app/javascript/dashboard/components-next/HelpCenter/Pages/PortalSettingsPage/PortalBaseSettings.vue
+++ b/app/javascript/dashboard/components-next/HelpCenter/Pages/PortalSettingsPage/PortalBaseSettings.vue
@@ -12,7 +12,7 @@ import { shouldBeUrl } from 'shared/helpers/Validators';
 
 import Button from 'dashboard/components-next/button/Button.vue';
 import Input from 'dashboard/components-next/input/Input.vue';
-import EditableAvatar from 'dashboard/components-next/avatar/EditableAvatar.vue';
+import Avatar from 'dashboard/components-next/avatar/Avatar.vue';
 import ComboBox from 'dashboard/components-next/combobox/ComboBox.vue';
 import ColorPicker from 'dashboard/components-next/colorpicker/ColorPicker.vue';
 
@@ -187,10 +187,12 @@ const handleAvatarDelete = () => {
       <label class="mb-0.5 text-sm font-medium text-gray-900 dark:text-gray-50">
         {{ t('HELP_CENTER.PORTAL_SETTINGS.FORM.AVATAR.LABEL') }}
       </label>
-      <EditableAvatar
-        label="Avatar"
+      <Avatar
         :src="state.logoUrl"
         :name="state.name"
+        :size="72"
+        allow-upload
+        icon-name="i-lucide-building-2"
         @upload="handleAvatarUpload"
         @delete="handleAvatarDelete"
       />
diff --git a/app/javascript/dashboard/components-next/avatar/Avatar.story.vue b/app/javascript/dashboard/components-next/avatar/Avatar.story.vue
index 3d906f0a9..12b804e72 100644
--- a/app/javascript/dashboard/components-next/avatar/Avatar.story.vue
+++ b/app/javascript/dashboard/components-next/avatar/Avatar.story.vue
@@ -5,37 +5,30 @@ import Avatar from './Avatar.vue';
 <template>
   <Story title="Components/Avatar" :layout="{ type: 'grid', width: '400' }">
     <Variant title="Default">
-      <div class="p-4 bg-white dark:bg-slate-900">
+      <div class="flex p-4 space-x-4 bg-white dark:bg-slate-900">
         <Avatar
+          name=""
           src="https://api.dicebear.com/9.x/thumbs/svg?seed=Amaya"
-          class="bg-ruby-300 dark:bg-ruby-900"
         />
+        <Avatar name="Amaya" src="" />
+        <Avatar name="" src="" />
       </div>
     </Variant>
 
-    <Variant title="Default with upload">
-      <div class="p-4 bg-white dark:bg-slate-900">
-        <Avatar
-          src="https://api.dicebear.com/9.x/thumbs/svg?seed=Amaya"
-          class="bg-ruby-300 dark:bg-ruby-900"
-          allow-upload
-        />
-      </div>
-    </Variant>
-
-    <Variant title="Invalid or empty SRC">
-      <div class="p-4 space-x-4 bg-white dark:bg-slate-900">
-        <Avatar src="https://example.com/ruby.png" name="Ruby" allow-upload />
-        <Avatar name="Bruce Wayne" allow-upload />
-      </div>
-    </Variant>
-
-    <Variant title="Rounded Full">
-      <div class="p-4 space-x-4 bg-white dark:bg-slate-900">
+    <Variant title="Different Shapes">
+      <div class="gap-4 p-4 bg-white dark:bg-slate-900">
         <Avatar
           src="https://api.dicebear.com/9.x/thumbs/svg?seed=Amaya"
+          name=""
           allow-upload
           rounded-full
+          :size="48"
+        />
+        <Avatar
+          src="https://api.dicebear.com/9.x/thumbs/svg?seed=Amaya"
+          name=""
+          allow-upload
+          :size="48"
         />
       </div>
     </Variant>
@@ -43,24 +36,78 @@ import Avatar from './Avatar.vue';
     <Variant title="Different Sizes">
       <div class="flex flex-wrap gap-4 p-4 bg-white dark:bg-slate-900">
         <Avatar
-          src="https://api.dicebear.com/9.x/thumbs/svg?seed=Felix"
+          src="https://api.dicebear.com/9.x/avataaars/svg?seed=Felix"
           :size="48"
-          class="bg-green-300 dark:bg-green-900"
+          name=""
           allow-upload
         />
         <Avatar
           :size="72"
-          src="https://api.dicebear.com/9.x/thumbs/svg?seed=Jade"
-          class="bg-indigo-300 dark:bg-indigo-900"
+          src="https://api.dicebear.com/9.x/avataaars/svg?seed=Jade"
+          name=""
           allow-upload
         />
         <Avatar
-          src="https://api.dicebear.com/9.x/thumbs/svg?seed=Emery"
+          src="https://api.dicebear.com/9.x/avataaars/svg?seed=Emery"
+          name=""
           :size="96"
-          class="bg-woot-300 dark:bg-woot-900"
           allow-upload
         />
       </div>
     </Variant>
+
+    <Variant title="With Status">
+      <div class="flex flex-wrap gap-4 p-4 bg-white dark:bg-slate-900">
+        <Avatar
+          src="https://api.dicebear.com/9.x/thumbs/svg?seed=Felix"
+          status="online"
+          name="Felix Online"
+        />
+        <Avatar
+          src="https://api.dicebear.com/9.x/thumbs/svg?seed=Jade"
+          status="busy"
+          name="Jade Busy"
+        />
+        <Avatar
+          src="https://api.dicebear.com/9.x/thumbs/svg?seed=Emery"
+          status="offline"
+          name="Emery Offline"
+        />
+      </div>
+    </Variant>
+
+    <Variant title="With Custom Icon">
+      <div class="flex flex-wrap gap-4 p-4 bg-white dark:bg-slate-900">
+        <Avatar name="Custom Icon" icon-name="i-lucide-user" :size="48" />
+        <Avatar
+          name="Custom Industry"
+          icon-name="i-lucide-building-2"
+          :size="48"
+        />
+      </div>
+    </Variant>
+
+    <Variant title="Upload States">
+      <div class="flex flex-wrap gap-4 p-4 bg-white dark:bg-slate-900">
+        <!-- Empty state with upload -->
+        <Avatar name="Upload New" allow-upload :size="48" />
+
+        <!-- With image and upload -->
+        <Avatar
+          src="https://api.dicebear.com/9.x/thumbs/svg?seed=Upload"
+          name="Replace Image"
+          allow-upload
+          :size="48"
+        />
+      </div>
+    </Variant>
+
+    <Variant title="Name Initials">
+      <div class="flex flex-wrap gap-4 p-4 bg-white dark:bg-slate-900">
+        <Avatar name="Catherine" :size="48" />
+        <Avatar name="John Doe" :size="48" />
+        <Avatar name="Rose Doe John" :size="48" />
+      </div>
+    </Variant>
   </Story>
 </template>
diff --git a/app/javascript/dashboard/components-next/avatar/Avatar.vue b/app/javascript/dashboard/components-next/avatar/Avatar.vue
index 39614f6b3..da07217e5 100644
--- a/app/javascript/dashboard/components-next/avatar/Avatar.vue
+++ b/app/javascript/dashboard/components-next/avatar/Avatar.vue
@@ -39,11 +39,12 @@ const props = defineProps({
   },
 });
 
-const emit = defineEmits(['upload']);
+const emit = defineEmits(['upload', 'delete']);
 
 const { t } = useI18n();
 
 const isImageValid = ref(true);
+const fileInput = ref(null);
 
 const AVATAR_COLORS = {
   dark: [
@@ -138,6 +139,32 @@ const invalidateCurrentImage = () => {
   isImageValid.value = false;
 };
 
+const handleUploadAvatar = () => {
+  fileInput.value.click();
+};
+
+const handleImageUpload = event => {
+  const [file] = event.target.files;
+  if (file) {
+    emit('upload', {
+      file,
+      url: file ? URL.createObjectURL(file) : null,
+    });
+  }
+};
+
+const handleDeleteAvatar = () => {
+  if (fileInput.value) {
+    fileInput.value.value = null;
+  }
+  emit('delete');
+};
+
+const handleDismiss = event => {
+  event.stopPropagation();
+  handleDeleteAvatar();
+};
+
 watch(
   () => props.src,
   () => {
@@ -147,7 +174,7 @@ watch(
 </script>
 
 <template>
-  <span class="relative inline-flex" :style="containerStyles">
+  <span class="relative inline-flex group/avatar" :style="containerStyles">
     <!-- Status Badge -->
     <slot name="badge" :size="size">
       <div
@@ -158,6 +185,15 @@ watch(
       />
     </slot>
 
+    <!-- Delete Avatar Button -->
+    <div
+      v-if="src && allowUpload"
+      class="absolute z-20 flex items-center justify-center invisible w-6 h-6 transition-all duration-300 ease-in-out opacity-0 cursor-pointer outline outline-1 outline-n-container -top-2 -right-2 rounded-xl bg-n-solid-3 group-hover/avatar:visible group-hover/avatar:opacity-100"
+      @click="handleDismiss"
+    >
+      <Icon icon="i-lucide-x" class="text-n-slate-11 size-4" />
+    </div>
+
     <!-- Avatar Container -->
     <span
       role="img"
@@ -202,16 +238,23 @@ watch(
         />
       </template>
 
-      <!-- Upload Overlay -->
+      <!-- Upload Overlay and Input -->
       <div
         v-if="allowUpload"
-        role="button"
-        class="absolute inset-0 flex items-center justify-center invisible w-full h-full transition-all duration-500 ease-in-out opacity-0 rounded-xl dark:bg-slate-900/50 bg-slate-900/20 group-hover/avatar:visible group-hover/avatar:opacity-100"
-        @click="emit('upload')"
+        class="absolute inset-0 z-10 flex items-center justify-center invisible w-full h-full transition-all duration-300 ease-in-out opacity-0 rounded-xl bg-n-alpha-black1 group-hover/avatar:visible group-hover/avatar:opacity-100"
+        @click="handleUploadAvatar"
       >
         <Icon
           icon="i-lucide-upload"
-          class="text-white dark:text-white size-4"
+          class="text-white"
+          :style="{ width: `${size / 2}px`, height: `${size / 2}px` }"
+        />
+        <input
+          ref="fileInput"
+          type="file"
+          accept="image/png, image/jpeg, image/jpg, image/gif, image/webp"
+          class="hidden"
+          @change="handleImageUpload"
         />
       </div>
     </span>
diff --git a/app/javascript/dashboard/components-next/avatar/EditableAvatar.story.vue b/app/javascript/dashboard/components-next/avatar/EditableAvatar.story.vue
deleted file mode 100644
index ca0e38173..000000000
--- a/app/javascript/dashboard/components-next/avatar/EditableAvatar.story.vue
+++ /dev/null
@@ -1,36 +0,0 @@
-<script setup>
-import EditableAvatar from './EditableAvatar.vue';
-</script>
-
-<template>
-  <Story title="Components/Avatar" :layout="{ type: 'grid', width: '400' }">
-    <Variant title="Default">
-      <div class="p-4 bg-white dark:bg-slate-900">
-        <EditableAvatar
-          src="https://api.dicebear.com/9.x/avataaars/svg?seed=Amaya"
-          class="bg-ruby-300 dark:bg-ruby-900"
-        />
-      </div>
-    </Variant>
-
-    <Variant title="Different Sizes">
-      <div class="flex flex-wrap gap-4 p-4 bg-white dark:bg-slate-900">
-        <EditableAvatar
-          src="https://api.dicebear.com/9.x/avataaars/svg?seed=Felix"
-          :size="48"
-          class="bg-green-300 dark:bg-green-900"
-        />
-        <EditableAvatar
-          :size="72"
-          src="https://api.dicebear.com/9.x/avataaars/svg?seed=Jade"
-          class="bg-indigo-300 dark:bg-indigo-900"
-        />
-        <EditableAvatar
-          src="https://api.dicebear.com/9.x/avataaars/svg?seed=Emery"
-          :size="96"
-          class="bg-woot-300 dark:bg-woot-900"
-        />
-      </div>
-    </Variant>
-  </Story>
-</template>
diff --git a/app/javascript/dashboard/components-next/avatar/EditableAvatar.vue b/app/javascript/dashboard/components-next/avatar/EditableAvatar.vue
deleted file mode 100644
index 2c71963c1..000000000
--- a/app/javascript/dashboard/components-next/avatar/EditableAvatar.vue
+++ /dev/null
@@ -1,105 +0,0 @@
-<script setup>
-import { computed, ref } from 'vue';
-
-import Icon from 'dashboard/components-next/icon/Icon.vue';
-
-const props = defineProps({
-  src: {
-    type: String,
-    default: '',
-  },
-  size: {
-    type: Number,
-    default: 72,
-  },
-  name: {
-    type: String,
-    default: '',
-  },
-});
-
-const emit = defineEmits(['upload', 'delete']);
-
-const avatarSize = computed(() => `${props.size}px`);
-const iconSize = computed(() => `${props.size / 2}px`);
-
-const fileInput = ref(null);
-const imgError = ref(false);
-
-const shouldShowImage = computed(() => props.src && !imgError.value);
-
-const handleUploadAvatar = () => {
-  fileInput.value.click();
-};
-
-const handleImageUpload = event => {
-  const [file] = event.target.files;
-  if (file) {
-    emit('upload', {
-      file,
-      url: file ? URL.createObjectURL(file) : null,
-    });
-  }
-};
-
-const handleDeleteAvatar = () => {
-  if (fileInput.value) {
-    fileInput.value.value = null;
-  }
-  emit('delete');
-};
-
-const handleDismiss = event => {
-  event.stopPropagation();
-  handleDeleteAvatar();
-};
-</script>
-
-<template>
-  <div
-    class="relative flex flex-col items-center gap-2 select-none rounded-xl outline outline-1 outline-n-container group/avatar"
-    :style="{ width: avatarSize, height: avatarSize }"
-  >
-    <img
-      v-if="shouldShowImage"
-      :src="src"
-      :alt="name || 'avatar'"
-      class="object-cover w-full h-full shadow-sm rounded-xl"
-      @error="imgError = true"
-    />
-    <div
-      v-else
-      class="flex items-center justify-center w-full h-full rounded-xl bg-n-alpha-2"
-    >
-      <Icon
-        icon="i-lucide-building-2"
-        class="text-n-brand/50"
-        :style="{ width: `${iconSize}`, height: `${iconSize}` }"
-      />
-    </div>
-    <div
-      v-if="src"
-      class="absolute z-20 outline outline-1 outline-n-container flex items-center cursor-pointer justify-center w-6 h-6 transition-all invisible opacity-0 duration-500 ease-in-out -top-2.5 -right-2.5 rounded-xl bg-n-solid-3 group-hover/avatar:visible group-hover/avatar:opacity-100"
-      @click="handleDismiss"
-    >
-      <Icon icon="i-lucide-x" class="text-n-slate-11 size-4" />
-    </div>
-    <div
-      class="absolute inset-0 z-10 flex items-center justify-center invisible w-full h-full transition-all duration-500 ease-in-out opacity-0 rounded-xl bg-n-alpha-black1 group-hover/avatar:visible group-hover/avatar:opacity-100"
-      @click="handleUploadAvatar"
-    >
-      <Icon
-        icon="i-lucide-upload"
-        class="text-white"
-        :style="{ width: `${iconSize}`, height: `${iconSize}` }"
-      />
-      <input
-        ref="fileInput"
-        type="file"
-        accept="image/png, image/jpeg, image/jpg, image/gif, image/webp"
-        class="hidden"
-        @change="handleImageUpload"
-      />
-    </div>
-  </div>
-</template>
diff --git a/app/javascript/dashboard/i18n/locale/en/contact.json b/app/javascript/dashboard/i18n/locale/en/contact.json
index 35689afdb..ab485015d 100644
--- a/app/javascript/dashboard/i18n/locale/en/contact.json
+++ b/app/javascript/dashboard/i18n/locale/en/contact.json
@@ -510,6 +510,16 @@
           "SUCCESS_MESSAGE": "Contact deleted successfully",
           "ERROR_MESSAGE": "Could not delete contact. Please try again later."
         }
+      },
+      "AVATAR": {
+        "UPLOAD": {
+          "ERROR_MESSAGE": "Could not upload avatar. Please try again later.",
+          "SUCCESS_MESSAGE": "Avatar uploaded successfully"
+        },
+        "DELETE": {
+          "SUCCESS_MESSAGE": "Avatar deleted successfully",
+          "ERROR_MESSAGE": "Could not delete avatar. Please try again later."
+        }
       }
     },
     "SIDEBAR": {
diff --git a/app/javascript/histoire.setup.ts b/app/javascript/histoire.setup.ts
index c669ae1a3..173d7415b 100644
--- a/app/javascript/histoire.setup.ts
+++ b/app/javascript/histoire.setup.ts
@@ -4,6 +4,7 @@ import i18nMessages from 'dashboard/i18n';
 import { createI18n } from 'vue-i18n';
 import { vResizeObserver } from '@vueuse/components';
 import { directive as onClickaway } from 'vue3-click-away';
+import FloatingVue from 'floating-vue';
 import store from 'dashboard/store';
 
 const i18n = createI18n({
@@ -17,4 +18,9 @@ export const setupVue3 = defineSetupVue3(({ app }) => {
   app.use(i18n);
   app.directive('resize', vResizeObserver);
   app.directive('onClickaway', onClickaway);
+  app.use(FloatingVue, {
+    instantMove: true,
+    arrowOverflow: false,
+    disposeTimeout: 5000000,
+  });
 });