diff --git a/app/javascript/dashboard/components-next/captain/pageComponents/customTool/CreateCustomToolDialog.vue b/app/javascript/dashboard/components-next/captain/pageComponents/customTool/CreateCustomToolDialog.vue
index 891e36edf..0745c6546 100644
--- a/app/javascript/dashboard/components-next/captain/pageComponents/customTool/CreateCustomToolDialog.vue
+++ b/app/javascript/dashboard/components-next/captain/pageComponents/customTool/CreateCustomToolDialog.vue
@@ -1,5 +1,5 @@
 <script setup>
-import { ref } from 'vue';
+import { ref, computed } from 'vue';
 import { useStore } from 'dashboard/composables/store';
 import { useAlert } from 'dashboard/composables';
 import { useI18n } from 'vue-i18n';
@@ -8,22 +8,49 @@ import { parseAPIErrorResponse } from 'dashboard/store/utils/api';
 import Dialog from 'dashboard/components-next/dialog/Dialog.vue';
 import CustomToolForm from './CustomToolForm.vue';
 
+const props = defineProps({
+  selectedTool: {
+    type: Object,
+    default: () => ({}),
+  },
+  type: {
+    type: String,
+    default: 'create',
+    validator: value => ['create', 'edit'].includes(value),
+  },
+});
+
 const emit = defineEmits(['close']);
 const { t } = useI18n();
 const store = useStore();
 
 const dialogRef = ref(null);
 
-const i18nKey = 'CAPTAIN.CUSTOM_TOOLS.CREATE';
+const updateTool = toolDetails =>
+  store.dispatch('captainCustomTools/update', {
+    id: props.selectedTool.id,
+    ...toolDetails,
+  });
 
-const handleSubmit = async newTool => {
+const i18nKey = computed(
+  () => `CAPTAIN.CUSTOM_TOOLS.${props.type.toUpperCase()}`
+);
+
+const createTool = toolDetails =>
+  store.dispatch('captainCustomTools/create', toolDetails);
+
+const handleSubmit = async updatedTool => {
   try {
-    await store.dispatch('captainCustomTools/create', newTool);
-    useAlert(t(`${i18nKey}.SUCCESS_MESSAGE`));
+    if (props.type === 'edit') {
+      await updateTool(updatedTool);
+    } else {
+      await createTool(updatedTool);
+    }
+    useAlert(t(`${i18nKey.value}.SUCCESS_MESSAGE`));
     dialogRef.value.close();
   } catch (error) {
     const errorMessage =
-      parseAPIErrorResponse(error) || t(`${i18nKey}.ERROR_MESSAGE`);
+      parseAPIErrorResponse(error) || t(`${i18nKey.value}.ERROR_MESSAGE`);
     useAlert(errorMessage);
   }
 };
@@ -49,7 +76,12 @@ defineExpose({ dialogRef });
     :show-confirm-button="false"
     @close="handleClose"
   >
-    <CustomToolForm @submit="handleSubmit" @cancel="handleCancel" />
+    <CustomToolForm
+      :mode="type"
+      :tool="selectedTool"
+      @submit="handleSubmit"
+      @cancel="handleCancel"
+    />
     <template #footer />
   </Dialog>
 </template>
diff --git a/app/javascript/dashboard/components-next/captain/pageComponents/customTool/CustomToolForm.vue b/app/javascript/dashboard/components-next/captain/pageComponents/customTool/CustomToolForm.vue
index 8badd5f00..c4bbb6d9d 100644
--- a/app/javascript/dashboard/components-next/captain/pageComponents/customTool/CustomToolForm.vue
+++ b/app/javascript/dashboard/components-next/captain/pageComponents/customTool/CustomToolForm.vue
@@ -1,5 +1,5 @@
 <script setup>
-import { reactive, computed, useTemplateRef } from 'vue';
+import { reactive, computed, useTemplateRef, watch } from 'vue';
 import { useI18n } from 'vue-i18n';
 import { useVuelidate } from '@vuelidate/core';
 import { required, url } from '@vuelidate/validators';
@@ -12,6 +12,18 @@ import ComboBox from 'dashboard/components-next/combobox/ComboBox.vue';
 import ParamRow from './ParamRow.vue';
 import AuthConfig from './AuthConfig.vue';
 
+const props = defineProps({
+  mode: {
+    type: String,
+    default: 'create',
+    validator: value => ['create', 'edit'].includes(value),
+  },
+  tool: {
+    type: Object,
+    default: () => ({}),
+  },
+});
+
 const emit = defineEmits(['submit', 'cancel']);
 
 const { t } = useI18n();
@@ -34,6 +46,25 @@ const initialState = {
 
 const state = reactive({ ...initialState });
 
+// Populate form when in edit mode
+watch(
+  () => props.tool,
+  newTool => {
+    if (props.mode === 'edit' && newTool && newTool.id) {
+      state.title = newTool.title || '';
+      state.description = newTool.description || '';
+      state.endpoint_url = newTool.endpoint_url || '';
+      state.http_method = newTool.http_method || 'GET';
+      state.request_template = newTool.request_template || '';
+      state.response_template = newTool.response_template || '';
+      state.auth_type = newTool.auth_type || 'none';
+      state.auth_config = newTool.auth_config || {};
+      state.param_schema = newTool.param_schema || [];
+    }
+  },
+  { immediate: true }
+);
+
 const DEFAULT_PARAM = {
   name: '',
   type: 'string',
@@ -65,7 +96,11 @@ const authTypeOptions = computed(() => [
 
 const v$ = useVuelidate(validationRules, state);
 
-const isLoading = computed(() => formState.uiFlags.value.creatingItem);
+const isLoading = computed(() =>
+  props.mode === 'edit'
+    ? formState.uiFlags.value.updatingItem
+    : formState.uiFlags.value.creatingItem
+);
 
 const getErrorMessage = (field, errorKey) => {
   return v$.value[field].$error
@@ -221,7 +256,9 @@ const handleSubmit = async () => {
       />
       <Button
         type="submit"
-        :label="t('CAPTAIN.FORM.CREATE')"
+        :label="
+          t(mode === 'edit' ? 'CAPTAIN.FORM.EDIT' : 'CAPTAIN.FORM.CREATE')
+        "
         class="w-full"
         :is-loading="isLoading"
         :disabled="isLoading"
diff --git a/app/javascript/dashboard/components-next/captain/pageComponents/customTool/ParamRow.vue b/app/javascript/dashboard/components-next/captain/pageComponents/customTool/ParamRow.vue
index 5564635d0..33cd64468 100644
--- a/app/javascript/dashboard/components-next/captain/pageComponents/customTool/ParamRow.vue
+++ b/app/javascript/dashboard/components-next/captain/pageComponents/customTool/ParamRow.vue
@@ -69,17 +69,17 @@ defineExpose({ validate });
       }"
     >
       <div class="flex flex-col flex-1 gap-3">
-        <div class="flex gap-2">
+        <div class="grid grid-cols-3 gap-2">
           <Input
             v-model="name"
             :placeholder="t('CAPTAIN.CUSTOM_TOOLS.FORM.PARAM_NAME.PLACEHOLDER')"
-            class="flex-1 [&>input]:h-8 [&>input]:py-1.5 [&>input]:outline-offset-0"
+            class="col-span-2"
           />
           <ComboBox
             v-model="type"
             :options="paramTypeOptions"
             :placeholder="t('CAPTAIN.CUSTOM_TOOLS.FORM.PARAM_TYPE.PLACEHOLDER')"
-            class="w-36 [&>div>button]:h-8 [&>div>button]:py-1.5"
+            class="[&>div>button]:bg-n-alpha-black2"
           />
         </div>
         <Input
@@ -87,7 +87,6 @@ defineExpose({ validate });
           :placeholder="
             t('CAPTAIN.CUSTOM_TOOLS.FORM.PARAM_DESCRIPTION.PLACEHOLDER')
           "
-          class="[&>input]:h-8 [&>input]:py-1.5 [&>input]:outline-offset-0"
         />
         <label class="flex items-center gap-2 cursor-pointer">
           <Checkbox v-model="required" />
@@ -97,11 +96,10 @@ defineExpose({ validate });
         </label>
       </div>
       <Button
-        sm
         solid
         slate
         icon="i-lucide-trash"
-        class="flex-shrink-0 mt-0.5"
+        class="flex-shrink-0"
         @click.stop="emit('remove')"
       />
     </div>
diff --git a/app/javascript/dashboard/i18n/locale/en/integrations.json b/app/javascript/dashboard/i18n/locale/en/integrations.json
index b9148f7c5..95f763668 100644
--- a/app/javascript/dashboard/i18n/locale/en/integrations.json
+++ b/app/javascript/dashboard/i18n/locale/en/integrations.json
@@ -771,6 +771,11 @@
         "SUCCESS_MESSAGE": "Custom tool created successfully",
         "ERROR_MESSAGE": "Failed to create custom tool"
       },
+      "EDIT": {
+        "TITLE": "Edit Custom Tool",
+        "SUCCESS_MESSAGE": "Custom tool updated successfully",
+        "ERROR_MESSAGE": "Failed to update custom tool"
+      },
       "FORM": {
         "TITLE": {
           "LABEL": "Tool Name",
@@ -786,7 +791,7 @@
         },
         "ENDPOINT_URL": {
           "LABEL": "Endpoint URL",
-          "PLACEHOLDER": "https://api.example.com/orders/'{' order_id '}'",
+          "PLACEHOLDER": "https://api.example.com/orders/{'{{'} order_id {'}}'}",
           "ERROR": "Valid URL is required"
         },
         "AUTH_TYPE": {
@@ -836,11 +841,11 @@
         },
         "REQUEST_TEMPLATE": {
           "LABEL": "Request Body Template (Optional)",
-          "PLACEHOLDER": "'{'\n  \"order_id\": \"'{' order_id '}'\"\n'}'"
+          "PLACEHOLDER": "{\n  \"order_id\": \"{'{{'} order_id {'}}'}\"\n}"
         },
         "RESPONSE_TEMPLATE": {
           "LABEL": "Response Template (Optional)",
-          "PLACEHOLDER": "Order '{' order_id '}' status: '{' status '}'"
+          "PLACEHOLDER": "Order {'{{'} order_id {'}}'} status: {'{{'} status {'}}'}"
         },
         "ERRORS": {
           "PARAM_NAME_REQUIRED": "Parameter name is required"
diff --git a/app/javascript/dashboard/routes/dashboard/captain/tools/Index.vue b/app/javascript/dashboard/routes/dashboard/captain/tools/Index.vue
index 30b542d93..ddbb6d2cf 100644
--- a/app/javascript/dashboard/routes/dashboard/captain/tools/Index.vue
+++ b/app/javascript/dashboard/routes/dashboard/captain/tools/Index.vue
@@ -1,5 +1,5 @@
 <script setup>
-import { computed, onMounted, ref } from 'vue';
+import { computed, onMounted, ref, nextTick } from 'vue';
 import { useMapGetter, useStore } from 'dashboard/composables/store';
 import { FEATURE_FLAGS } from 'dashboard/featureFlags';
 
@@ -17,6 +17,8 @@ const isFetching = computed(() => uiFlags.value.fetchingList);
 const customToolsMeta = useMapGetter('captainCustomTools/getMeta');
 
 const createDialogRef = ref(null);
+const selectedTool = ref(null);
+const dialogType = ref('');
 
 const fetchCustomTools = (page = 1) => {
   store.dispatch('captainCustomTools/get', { page });
@@ -25,13 +27,31 @@ const fetchCustomTools = (page = 1) => {
 const onPageChange = page => fetchCustomTools(page);
 
 const openCreateDialog = () => {
-  createDialogRef.value.dialogRef.open();
+  dialogType.value = 'create';
+  selectedTool.value = null;
+  nextTick(() => createDialogRef.value.dialogRef.open());
+};
+
+const handleEdit = tool => {
+  dialogType.value = 'edit';
+  selectedTool.value = tool;
+  nextTick(() => createDialogRef.value.dialogRef.open());
 };
 
 const handleAction = ({ action, id }) => {
-  // TODO: Implement edit and delete actions
-  // eslint-disable-next-line no-console
-  console.log('Action:', action, 'ID:', id);
+  const tool = customTools.value.find(t => t.id === id);
+  if (action === 'edit') {
+    handleEdit(tool);
+  } else if (action === 'delete') {
+    // TODO: Implement delete
+    // eslint-disable-next-line no-console
+    console.log('Delete:', id);
+  }
+};
+
+const handleDialogClose = () => {
+  dialogType.value = '';
+  selectedTool.value = null;
 };
 
 onMounted(() => {
@@ -82,5 +102,11 @@ onMounted(() => {
     </template>
   </PageLayout>
 
-  <CreateCustomToolDialog ref="createDialogRef" />
+  <CreateCustomToolDialog
+    v-if="dialogType"
+    ref="createDialogRef"
+    :type="dialogType"
+    :selected-tool="selectedTool"
+    @close="handleDialogClose"
+  />
 </template>