diff --git a/api/server/controllers/agents/v1.js b/api/server/controllers/agents/v1.js
index 244b6e8e23..65189a18a1 100644
--- a/api/server/controllers/agents/v1.js
+++ b/api/server/controllers/agents/v1.js
@@ -18,6 +18,7 @@ const {
 } = require('~/models/Agent');
 const { uploadImageBuffer, filterFile } = require('~/server/services/Files/process');
 const { getStrategyFunctions } = require('~/server/services/Files/strategies');
+const { resizeAvatar } = require('~/server/services/Files/images/avatar');
 const { refreshS3Url } = require('~/server/services/Files/S3/crud');
 const { updateAction, getActions } = require('~/models/Action');
 const { updateAgentProjects } = require('~/models/Agent');
@@ -373,12 +374,26 @@ const uploadAgentAvatarHandler = async (req, res) => {
     }
 
     const buffer = await fs.readFile(req.file.path);
-    const image = await uploadImageBuffer({
-      req,
-      context: FileContext.avatar,
-      metadata: { buffer },
+
+    const fileStrategy = req.app.locals.fileStrategy;
+
+    const resizedBuffer = await resizeAvatar({
+      userId: req.user.id,
+      input: buffer,
     });
 
+    const { processAvatar } = getStrategyFunctions(fileStrategy);
+    const avatarUrl = await processAvatar({
+      buffer: resizedBuffer,
+      userId: req.user.id,
+      manual: 'false',
+    });
+
+    const image = {
+      filepath: avatarUrl,
+      source: fileStrategy,
+    };
+
     let _avatar;
     try {
       const agent = await getAgent({ id: agent_id });
@@ -403,7 +418,7 @@ const uploadAgentAvatarHandler = async (req, res) => {
     const data = {
       avatar: {
         filepath: image.filepath,
-        source: req.app.locals.fileStrategy,
+        source: image.source,
       },
     };
 
diff --git a/api/server/services/Files/Azure/images.js b/api/server/services/Files/Azure/images.js
index 6672806dbd..80163bee05 100644
--- a/api/server/services/Files/Azure/images.js
+++ b/api/server/services/Files/Azure/images.js
@@ -97,10 +97,14 @@ async function prepareAzureImageURL(req, file) {
  */
 async function processAzureAvatar({ buffer, userId, manual, basePath = 'images', containerName }) {
   try {
+    const metadata = await sharp(buffer).metadata();
+    const extension = metadata.format === 'gif' ? 'gif' : 'png';
+    const fileName = `avatar.${extension}`;
+
     const downloadURL = await saveBufferToAzure({
       userId,
       buffer,
-      fileName: 'avatar.png',
+      fileName,
       basePath,
       containerName,
     });
diff --git a/api/server/services/Files/Firebase/images.js b/api/server/services/Files/Firebase/images.js
index 980095da3d..80bff28d89 100644
--- a/api/server/services/Files/Firebase/images.js
+++ b/api/server/services/Files/Firebase/images.js
@@ -87,10 +87,14 @@ async function prepareImageURL(req, file) {
  */
 async function processFirebaseAvatar({ buffer, userId, manual }) {
   try {
+    const metadata = await sharp(buffer).metadata();
+    const extension = metadata.format === 'gif' ? 'gif' : 'png';
+    const fileName = `avatar.${extension}`;
+
     const downloadURL = await saveBufferToFirebase({
       userId,
       buffer,
-      fileName: 'avatar.png',
+      fileName,
     });
 
     const isManual = manual === 'true';
diff --git a/api/server/services/Files/Local/images.js b/api/server/services/Files/Local/images.js
index cb60d425c6..fc344cea88 100644
--- a/api/server/services/Files/Local/images.js
+++ b/api/server/services/Files/Local/images.js
@@ -129,7 +129,10 @@ async function processLocalAvatar({ buffer, userId, manual }) {
     userId,
   );
 
-  const fileName = `avatar-${new Date().getTime()}.png`;
+  const metadata = await sharp(buffer).metadata();
+  const extension = metadata.format === 'gif' ? 'gif' : 'png';
+
+  const fileName = `avatar-${new Date().getTime()}.${extension}`;
   const urlRoute = `/images/${userId}/${fileName}`;
   const avatarPath = path.join(userDir, fileName);
 
diff --git a/api/server/services/Files/S3/images.js b/api/server/services/Files/S3/images.js
index d8d9c85cf5..07faec1765 100644
--- a/api/server/services/Files/S3/images.js
+++ b/api/server/services/Files/S3/images.js
@@ -99,7 +99,11 @@ async function prepareImageURLS3(req, file) {
  */
 async function processS3Avatar({ buffer, userId, manual, basePath = defaultBasePath }) {
   try {
-    const downloadURL = await saveBufferToS3({ userId, buffer, fileName: 'avatar.png', basePath });
+    const metadata = await sharp(buffer).metadata();
+    const extension = metadata.format === 'gif' ? 'gif' : 'png';
+    const fileName = `avatar.${extension}`;
+
+    const downloadURL = await saveBufferToS3({ userId, buffer, fileName, basePath });
     if (manual === 'true') {
       await updateUser(userId, { avatar: downloadURL });
     }
diff --git a/api/server/services/Files/images/avatar.js b/api/server/services/Files/images/avatar.js
index 3c1068a453..8e81dea26c 100644
--- a/api/server/services/Files/images/avatar.js
+++ b/api/server/services/Files/images/avatar.js
@@ -44,8 +44,25 @@ async function resizeAvatar({ userId, input, desiredFormat = EImageOutputType.PN
       throw new Error('Invalid input type. Expected URL, Buffer, or File.');
     }
 
-    const { width, height } = await sharp(imageBuffer).metadata();
+    const metadata = await sharp(imageBuffer).metadata();
+    const { width, height } = metadata;
     const minSize = Math.min(width, height);
+
+    if (metadata.format === 'gif') {
+      const resizedBuffer = await sharp(imageBuffer, { animated: true })
+        .extract({
+          left: Math.floor((width - minSize) / 2),
+          top: Math.floor((height - minSize) / 2),
+          width: minSize,
+          height: minSize,
+        })
+        .resize(250, 250)
+        .gif()
+        .toBuffer();
+
+      return resizedBuffer;
+    }
+
     const squaredBuffer = await sharp(imageBuffer)
       .extract({
         left: Math.floor((width - minSize) / 2),
diff --git a/client/src/components/SidePanel/Agents/Images.tsx b/client/src/components/SidePanel/Agents/Images.tsx
index 2ee8b754a4..ef79982504 100644
--- a/client/src/components/SidePanel/Agents/Images.tsx
+++ b/client/src/components/SidePanel/Agents/Images.tsx
@@ -50,6 +50,7 @@ export const AgentAvatarRender = ({
           width="80"
           height="80"
           style={{ opacity: progress < 1 ? 0.4 : 1 }}
+          key={url || 'default-key'}
         />
         {progress < 1 && (
           <div className="absolute inset-0 flex items-center justify-center bg-black/5 text-white">