diff --git a/app/javascript/dashboard/components-next/NewConversation/ComposeNewConversation.vue b/app/javascript/dashboard/components-next/NewConversation/ComposeNewConversation.vue
index b59dc3d2b..de2377d8b 100644
--- a/app/javascript/dashboard/components-next/NewConversation/ComposeNewConversation.vue
+++ b/app/javascript/dashboard/components-next/NewConversation/ComposeNewConversation.vue
@@ -85,6 +85,9 @@ const inboxTypes = computed(() => ({
   isEmailOrWebWidget:
     targetInbox.value?.channelType === INBOX_TYPES.EMAIL ||
     targetInbox.value?.channelType === INBOX_TYPES.WEB,
+  isTwilioSMS:
+    targetInbox.value?.channelType === INBOX_TYPES.TWILIO &&
+    targetInbox.value?.medium === 'sms',
 }));
 
 const whatsappMessageTemplates = computed(() =>
@@ -102,7 +105,12 @@ const validationRules = computed(() => ({
   subject: { required: requiredIf(inboxTypes.value.isEmail) },
 }));
 
-const v$ = useVuelidate(validationRules, state);
+const v$ = useVuelidate(validationRules, {
+  selectedContact,
+  targetInbox,
+  message: computed(() => state.message),
+  subject: computed(() => state.subject),
+});
 
 const validationStates = computed(() => ({
   isContactInvalid:
@@ -222,6 +230,10 @@ const handleRemoveSignature = signature => {
   state.message = removeSignature(state.message, signature);
 };
 
+const handleAttachFile = files => {
+  state.attachedFiles = files;
+};
+
 const clearForm = () => {
   Object.assign(state, {
     message: '',
@@ -300,76 +312,74 @@ watch(
 
 <template>
   <div
-    class="divide-y divide-n-strong absolute right-0 w-[670px] mt-2 overflow-visible transition-all duration-300 ease-in-out top-full justify-between flex flex-col bg-n-alpha-3 border border-n-strong shadow-sm backdrop-blur-[100px] rounded-xl"
+    class="absolute right-0 w-[670px] mt-2 divide-y divide-n-strong overflow-visible transition-all duration-300 ease-in-out top-full justify-between flex flex-col bg-n-alpha-3 border border-n-strong shadow-sm backdrop-blur-[100px] rounded-xl"
   >
-    <div class="flex flex-col divide-y divide-n-strong">
-      <ContactSelector
-        :contacts="contacts"
-        :selected-contact="selectedContact"
-        :show-contacts-dropdown="showContactsDropdown"
-        :is-loading="isLoading"
-        :is-creating-contact="isCreatingContact"
-        :contact-id="contactId"
-        :contactable-inboxes-list="contactableInboxesList"
-        :show-inboxes-dropdown="showInboxesDropdown"
-        :has-errors="validationStates.isContactInvalid"
-        @search-contacts="handleContactSearch"
-        @set-selected-contact="setSelectedContact"
-        @clear-selected-contact="clearSelectedContact"
-        @update-dropdown="handleDropdownUpdate"
-      />
+    <ContactSelector
+      :contacts="contacts"
+      :selected-contact="selectedContact"
+      :show-contacts-dropdown="showContactsDropdown"
+      :is-loading="isLoading"
+      :is-creating-contact="isCreatingContact"
+      :contact-id="contactId"
+      :contactable-inboxes-list="contactableInboxesList"
+      :show-inboxes-dropdown="showInboxesDropdown"
+      :has-errors="validationStates.isContactInvalid"
+      @search-contacts="handleContactSearch"
+      @set-selected-contact="setSelectedContact"
+      @clear-selected-contact="clearSelectedContact"
+      @update-dropdown="handleDropdownUpdate"
+    />
 
-      <InboxSelector
-        :target-inbox="targetInbox"
-        :selected-contact="selectedContact"
-        :show-inboxes-dropdown="showInboxesDropdown"
-        :contactable-inboxes-list="contactableInboxesList"
-        :has-errors="validationStates.isInboxInvalid"
-        @update-inbox="removeTargetInbox"
-        @toggle-dropdown="showInboxesDropdown = $event"
-        @handle-inbox-action="handleInboxAction"
-      />
+    <InboxSelector
+      :target-inbox="targetInbox"
+      :selected-contact="selectedContact"
+      :show-inboxes-dropdown="showInboxesDropdown"
+      :contactable-inboxes-list="contactableInboxesList"
+      :has-errors="validationStates.isInboxInvalid"
+      @update-inbox="removeTargetInbox"
+      @toggle-dropdown="showInboxesDropdown = $event"
+      @handle-inbox-action="handleInboxAction"
+    />
 
-      <EmailOptions
-        v-if="inboxTypes.isEmail"
-        v-model:cc-emails="state.ccEmails"
-        v-model:bcc-emails="state.bccEmails"
-        v-model:subject="state.subject"
-        :contacts="contacts"
-        :show-cc-emails-dropdown="showCcEmailsDropdown"
-        :show-bcc-emails-dropdown="showBccEmailsDropdown"
-        :show-bcc-input="showBccInput"
-        :is-loading="isLoading"
-        :has-errors="validationStates.isSubjectInvalid"
-        @search-cc-emails="searchCcEmails"
-        @search-bcc-emails="searchBccEmails"
-        @toggle-bcc="toggleBccInput"
-        @update-dropdown="handleDropdownUpdate"
-      />
+    <EmailOptions
+      v-if="inboxTypes.isEmail"
+      v-model:cc-emails="state.ccEmails"
+      v-model:bcc-emails="state.bccEmails"
+      v-model:subject="state.subject"
+      :contacts="contacts"
+      :show-cc-emails-dropdown="showCcEmailsDropdown"
+      :show-bcc-emails-dropdown="showBccEmailsDropdown"
+      :show-bcc-input="showBccInput"
+      :is-loading="isLoading"
+      :has-errors="validationStates.isSubjectInvalid"
+      @search-cc-emails="searchCcEmails"
+      @search-bcc-emails="searchBccEmails"
+      @toggle-bcc="toggleBccInput"
+      @update-dropdown="handleDropdownUpdate"
+    />
 
-      <MessageEditor
-        v-if="!inboxTypes.isWhatsapp"
-        v-model="state.message"
-        :is-email-or-web-widget-inbox="inboxTypes.isEmailOrWebWidget"
-        :has-errors="validationStates.isMessageInvalid"
-      />
-    </div>
+    <MessageEditor
+      v-if="!inboxTypes.isWhatsapp"
+      v-model="state.message"
+      :is-email-or-web-widget-inbox="inboxTypes.isEmailOrWebWidget"
+      :has-errors="validationStates.isMessageInvalid"
+    />
 
     <ActionButtons
       :is-whatsapp-inbox="inboxTypes.isWhatsapp"
       :is-email-or-web-widget-inbox="inboxTypes.isEmailOrWebWidget"
-      :is-twilio-inbox="inboxTypes.isTwilio"
-      :is-api-inbox="inboxTypes.isApi"
+      :is-twilio-sms-inbox="inboxTypes.isTwilioSMS"
       :message-templates="whatsappMessageTemplates"
       :channel-type="inboxChannelType"
       :is-loading="isCreating"
       :disable-send-button="isCreating"
-      @discard="$emit('discard')"
-      @send-message="handleSendMessage"
-      @send-whatsapp-message="handleSendWhatsappMessage"
       @insert-emoji="onClickInsertEmoji"
       @add-signature="handleAddSignature"
       @remove-signature="handleRemoveSignature"
+      @attach-file="handleAttachFile"
+      @discard="$emit('discard')"
+      @send-message="handleSendMessage"
+      @send-whatsapp-message="handleSendWhatsappMessage"
     />
   </div>
 </template>
diff --git a/app/javascript/dashboard/components-next/NewConversation/components/ActionButtons.vue b/app/javascript/dashboard/components-next/NewConversation/components/ActionButtons.vue
index d6874f552..39402f6a1 100644
--- a/app/javascript/dashboard/components-next/NewConversation/components/ActionButtons.vue
+++ b/app/javascript/dashboard/components-next/NewConversation/components/ActionButtons.vue
@@ -3,6 +3,9 @@ import { defineAsyncComponent, ref, computed } from 'vue';
 import { useMapGetter } from 'dashboard/composables/store';
 import { useI18n } from 'vue-i18n';
 import { useUISettings } from 'dashboard/composables/useUISettings';
+import { useFileUpload } from 'dashboard/composables/useFileUpload';
+import { ALLOWED_FILE_TYPES } from 'shared/constants/messages';
+import FileUpload from 'vue-upload-component';
 
 import Button from 'dashboard/components-next/button/Button.vue';
 import WhatsAppOptions from './WhatsAppOptions.vue';
@@ -10,11 +13,15 @@ import WhatsAppOptions from './WhatsAppOptions.vue';
 const props = defineProps({
   isWhatsappInbox: {
     type: Boolean,
-    required: true,
+    default: false,
   },
   isEmailOrWebWidgetInbox: {
     type: Boolean,
-    required: true,
+    default: false,
+  },
+  isTwilioSmsInbox: {
+    type: Boolean,
+    default: false,
   },
   messageTemplates: {
     type: Array,
@@ -22,7 +29,7 @@ const props = defineProps({
   },
   channelType: {
     type: String,
-    required: true,
+    default: '',
   },
   isLoading: {
     type: Boolean,
@@ -41,11 +48,14 @@ const emit = defineEmits([
   'insertEmoji',
   'addSignature',
   'removeSignature',
+  'attachFile',
 ]);
 
 const { t } = useI18n();
 
+const uploadAttachment = ref(null);
 const isEmojiPickerOpen = ref(false);
+const attachedFiles = ref([]);
 
 const EmojiInput = defineAsyncComponent(
   () => import('shared/components/emoji/EmojiInput.vue')
@@ -83,6 +93,27 @@ const toggleMessageSignature = () => {
 const onClickInsertEmoji = emoji => {
   emit('insertEmoji', emoji);
 };
+
+const { onFileUpload } = useFileUpload({
+  isATwilioSMSChannel: props.isTwilioSmsInbox,
+  attachFile: ({ blob, file }) => {
+    if (!file) return;
+
+    const reader = new FileReader();
+    reader.readAsDataURL(file.file);
+    reader.onloadend = () => {
+      const newFile = {
+        resource: blob || file,
+        isPrivate: false,
+        thumb: reader.result,
+        blobSignedId: blob?.signed_id,
+      };
+
+      attachedFiles.value = [...attachedFiles.value, newFile];
+      emit('attachFile', attachedFiles.value);
+    };
+  },
+});
 </script>
 
 <template>
@@ -113,13 +144,32 @@ const onClickInsertEmoji = emoji => {
           :on-click="onClickInsertEmoji"
         />
       </div>
-      <Button
+      <FileUpload
         v-if="isEmailOrWebWidgetInbox"
-        icon="i-lucide-plus"
-        color="slate"
-        size="sm"
-        class="!w-10"
-      />
+        ref="uploadAttachment"
+        input-id="composeNewConversationAttachment"
+        :size="4096 * 4096"
+        :accept="ALLOWED_FILE_TYPES"
+        multiple
+        :drop-directory="false"
+        :data="{
+          direct_upload_url: '/rails/active_storage/direct_uploads',
+          direct_upload: true,
+        }"
+        @input-file="onFileUpload"
+      >
+        <Button
+          icon="i-lucide-plus"
+          color="slate"
+          size="sm"
+          class="!w-10 relative"
+        >
+          <span
+            v-if="attachedFiles.length > 0"
+            class="absolute top-0 right-0 rounded-full size-2.5 bg-n-brand"
+          />
+        </Button>
+      </FileUpload>
       <Button
         v-if="isEmailOrWebWidgetInbox"
         icon="i-lucide-type"
diff --git a/app/javascript/dashboard/composables/spec/useFileUpload.spec.js b/app/javascript/dashboard/composables/spec/useFileUpload.spec.js
new file mode 100644
index 000000000..27e17dc43
--- /dev/null
+++ b/app/javascript/dashboard/composables/spec/useFileUpload.spec.js
@@ -0,0 +1,146 @@
+import { useFileUpload } from '../useFileUpload';
+import { useMapGetter } from 'dashboard/composables/store';
+import { useAlert } from 'dashboard/composables';
+import { useI18n } from 'vue-i18n';
+import { DirectUpload } from 'activestorage';
+import { checkFileSizeLimit } from 'shared/helpers/FileHelper';
+import { MAXIMUM_FILE_UPLOAD_SIZE_TWILIO_SMS_CHANNEL } from 'shared/constants/messages';
+
+vi.mock('dashboard/composables/store');
+vi.mock('dashboard/composables', () => ({
+  useAlert: vi.fn(message => message),
+}));
+vi.mock('vue-i18n');
+vi.mock('activestorage');
+vi.mock('shared/helpers/FileHelper');
+
+describe('useFileUpload', () => {
+  const mockAttachFile = vi.fn();
+  const mockTranslate = vi.fn();
+
+  const mockFile = {
+    file: new File(['test'], 'test.jpg', { type: 'image/jpeg' }),
+  };
+
+  beforeEach(() => {
+    vi.clearAllMocks();
+
+    useMapGetter.mockImplementation(getter => {
+      const getterMap = {
+        getCurrentAccountId: { value: '123' },
+        getCurrentUser: { value: { access_token: 'test-token' } },
+        getSelectedChat: { value: { id: '456' } },
+        'globalConfig/get': { value: { directUploadsEnabled: true } },
+      };
+      return getterMap[getter];
+    });
+
+    useI18n.mockReturnValue({ t: mockTranslate });
+    checkFileSizeLimit.mockReturnValue(true);
+  });
+
+  it('should handle direct file upload when enabled', () => {
+    const { onFileUpload } = useFileUpload({
+      isATwilioSMSChannel: false,
+      attachFile: mockAttachFile,
+    });
+
+    const mockBlob = { signed_id: 'test-blob' };
+    DirectUpload.mockImplementation(() => ({
+      create: callback => callback(null, mockBlob),
+    }));
+
+    onFileUpload(mockFile);
+
+    expect(DirectUpload).toHaveBeenCalledWith(
+      mockFile.file,
+      '/api/v1/accounts/123/conversations/456/direct_uploads',
+      expect.any(Object)
+    );
+    expect(mockAttachFile).toHaveBeenCalledWith({
+      file: mockFile,
+      blob: mockBlob,
+    });
+  });
+
+  it('should handle indirect file upload when direct upload is disabled', () => {
+    useMapGetter.mockImplementation(getter => {
+      const getterMap = {
+        getCurrentAccountId: { value: '123' },
+        getCurrentUser: { value: { access_token: 'test-token' } },
+        getSelectedChat: { value: { id: '456' } },
+        'globalConfig/get': { value: { directUploadsEnabled: false } },
+      };
+      return getterMap[getter];
+    });
+
+    const { onFileUpload } = useFileUpload({
+      isATwilioSMSChannel: false,
+      attachFile: mockAttachFile,
+    });
+
+    onFileUpload(mockFile);
+
+    expect(DirectUpload).not.toHaveBeenCalled();
+    expect(mockAttachFile).toHaveBeenCalledWith({ file: mockFile });
+  });
+
+  it('should show alert when file size exceeds limit', () => {
+    checkFileSizeLimit.mockReturnValue(false);
+    mockTranslate.mockReturnValue('File size exceeds limit');
+
+    const { onFileUpload } = useFileUpload({
+      isATwilioSMSChannel: false,
+      attachFile: mockAttachFile,
+    });
+
+    onFileUpload(mockFile);
+
+    expect(useAlert).toHaveBeenCalledWith('File size exceeds limit');
+    expect(mockAttachFile).not.toHaveBeenCalled();
+  });
+
+  it('should use different max file size for Twilio SMS channel', () => {
+    const { onFileUpload } = useFileUpload({
+      isATwilioSMSChannel: true,
+      attachFile: mockAttachFile,
+    });
+
+    onFileUpload(mockFile);
+
+    expect(checkFileSizeLimit).toHaveBeenCalledWith(
+      mockFile,
+      MAXIMUM_FILE_UPLOAD_SIZE_TWILIO_SMS_CHANNEL
+    );
+  });
+
+  it('should handle direct upload errors', () => {
+    const mockError = 'Upload failed';
+    DirectUpload.mockImplementation(() => ({
+      create: callback => callback(mockError, null),
+    }));
+
+    const { onFileUpload } = useFileUpload({
+      isATwilioSMSChannel: false,
+      attachFile: mockAttachFile,
+    });
+
+    onFileUpload(mockFile);
+
+    expect(useAlert).toHaveBeenCalledWith(mockError);
+    expect(mockAttachFile).not.toHaveBeenCalled();
+  });
+
+  it('should do nothing when file is null', () => {
+    const { onFileUpload } = useFileUpload({
+      isATwilioSMSChannel: false,
+      attachFile: mockAttachFile,
+    });
+
+    onFileUpload(null);
+
+    expect(checkFileSizeLimit).not.toHaveBeenCalled();
+    expect(mockAttachFile).not.toHaveBeenCalled();
+    expect(useAlert).not.toHaveBeenCalled();
+  });
+});
diff --git a/app/javascript/dashboard/composables/useFileUpload.js b/app/javascript/dashboard/composables/useFileUpload.js
new file mode 100644
index 000000000..dd6779250
--- /dev/null
+++ b/app/javascript/dashboard/composables/useFileUpload.js
@@ -0,0 +1,91 @@
+import { computed } from 'vue';
+import { useMapGetter } from 'dashboard/composables/store';
+import { useAlert } from 'dashboard/composables';
+import { useI18n } from 'vue-i18n';
+import { DirectUpload } from 'activestorage';
+import {
+  MAXIMUM_FILE_UPLOAD_SIZE,
+  MAXIMUM_FILE_UPLOAD_SIZE_TWILIO_SMS_CHANNEL,
+} from 'shared/constants/messages';
+import { checkFileSizeLimit } from 'shared/helpers/FileHelper';
+
+/**
+ * Composable for handling file uploads in conversations
+ * @param {Object} options - Configuration options
+ * @param {boolean} options.isATwilioSMSChannel - Whether the current channel is Twilio SMS
+ * @param {Function} options.attachFile - Callback function to handle file attachment
+ * @returns {Object} File upload methods and utilities
+ */
+export const useFileUpload = ({ isATwilioSMSChannel, attachFile }) => {
+  const { t } = useI18n();
+
+  const accountId = useMapGetter('getCurrentAccountId');
+  const currentUser = useMapGetter('getCurrentUser');
+  const currentChat = useMapGetter('getSelectedChat');
+  const globalConfig = useMapGetter('globalConfig/get');
+
+  const maxFileSize = computed(() =>
+    isATwilioSMSChannel
+      ? MAXIMUM_FILE_UPLOAD_SIZE_TWILIO_SMS_CHANNEL
+      : MAXIMUM_FILE_UPLOAD_SIZE
+  );
+
+  const handleDirectFileUpload = file => {
+    if (!file) return;
+
+    if (checkFileSizeLimit(file, maxFileSize.value)) {
+      const upload = new DirectUpload(
+        file.file,
+        `/api/v1/accounts/${accountId.value}/conversations/${currentChat.value.id}/direct_uploads`,
+        {
+          directUploadWillCreateBlobWithXHR: xhr => {
+            xhr.setRequestHeader(
+              'api_access_token',
+              currentUser.value.access_token
+            );
+          },
+        }
+      );
+
+      upload.create((error, blob) => {
+        if (error) {
+          useAlert(error);
+        } else {
+          attachFile({ file, blob });
+        }
+      });
+    } else {
+      useAlert(
+        t('CONVERSATION.FILE_SIZE_LIMIT', {
+          MAXIMUM_SUPPORTED_FILE_UPLOAD_SIZE: maxFileSize.value,
+        })
+      );
+    }
+  };
+
+  const handleIndirectFileUpload = file => {
+    if (!file) return;
+
+    if (checkFileSizeLimit(file, maxFileSize.value)) {
+      attachFile({ file });
+    } else {
+      useAlert(
+        t('CONVERSATION.FILE_SIZE_LIMIT', {
+          MAXIMUM_SUPPORTED_FILE_UPLOAD_SIZE: maxFileSize.value,
+        })
+      );
+    }
+  };
+
+  const onFileUpload = file => {
+    if (globalConfig.value.directUploadsEnabled) {
+      handleDirectFileUpload(file);
+    } else {
+      handleIndirectFileUpload(file);
+    }
+  };
+
+  return {
+    onFileUpload,
+  };
+};