diff --git a/api/services/workflow/tools/custom_tool.py b/api/services/workflow/tools/custom_tool.py
index 6e97225c..2ec46b77 100644
--- a/api/services/workflow/tools/custom_tool.py
+++ b/api/services/workflow/tools/custom_tool.py
@@ -231,6 +231,17 @@ async def execute_http_tool(
     method = config.get("method", "POST").upper()
     url = config.get("url", "")
 
+    # Build render context for template variable substitution (same as preset params)
+    initial_context = dict(call_context_vars or {})
+    render_context: Dict[str, Any] = {
+        **initial_context,
+        "initial_context": initial_context,
+        "gathered_context": dict(gathered_context_vars or {}),
+    }
+
+    # Apply template rendering to URL (supports {{variable}} in path)
+    url = render_template(url, render_context)
+
     # Get headers from config
     headers = dict(config.get("headers", {}) or {})
 
diff --git a/api/tests/test_custom_tools.py b/api/tests/test_custom_tools.py
index c066528a..0b1f5a77 100644
--- a/api/tests/test_custom_tools.py
+++ b/api/tests/test_custom_tools.py
@@ -730,6 +730,116 @@ class TestExecuteHttpTool:
                 # Verify credential lookup was NOT called
                 mock_db.get_credential_by_uuid.assert_not_called()
 
+    @pytest.mark.asyncio
+    async def test_url_with_initial_context_variable(self):
+        """Test that {{{{}}}} in URL path is resolved from initial_context."""
+        tool = MockToolModel(
+            tool_uuid="test-uuid-url-var",
+            name="Dynamic URL",
+            description="API with URL template",
+            category="http_api",
+            definition={
+                "schema_version": 1,
+                "type": "http_api",
+                "config": {
+                    "method": "GET",
+                    "url": "https://api.example.com/{{initial_context.resource}}/details",
+                    "timeout_ms": 5000,
+                },
+            },
+        )
+
+        with patch(
+            "api.services.workflow.tools.custom_tool.httpx.AsyncClient"
+        ) as mock_client_class:
+            mock_client = AsyncMock()
+            mock_response = Mock()
+            mock_response.status_code = 200
+            mock_response.json.return_value = {"id": 1}
+            mock_client.request.return_value = mock_response
+            mock_client_class.return_value.__aenter__.return_value = mock_client
+
+            await execute_http_tool(
+                tool,
+                {},
+                call_context_vars={"resource": "orders"},
+            )
+
+            call_kwargs = mock_client.request.call_args.kwargs
+            assert call_kwargs["url"] == "https://api.example.com/orders/details"
+
+    @pytest.mark.asyncio
+    async def test_url_with_gathered_context_variable(self):
+        """Test that {{{{}}}} in URL path is resolved from gathered_context."""
+        tool = MockToolModel(
+            tool_uuid="test-uuid-url-gathered",
+            name="Dynamic URL Gathered",
+            description="API with URL template from gathered context",
+            category="http_api",
+            definition={
+                "schema_version": 1,
+                "type": "http_api",
+                "config": {
+                    "method": "GET",
+                    "url": "https://api.example.com/customers/{{gathered_context.customer_id}}/profile",
+                    "timeout_ms": 5000,
+                },
+            },
+        )
+
+        with patch(
+            "api.services.workflow.tools.custom_tool.httpx.AsyncClient"
+        ) as mock_client_class:
+            mock_client = AsyncMock()
+            mock_response = Mock()
+            mock_response.status_code = 200
+            mock_response.json.return_value = {"name": "John"}
+            mock_client.request.return_value = mock_response
+            mock_client_class.return_value.__aenter__.return_value = mock_client
+
+            await execute_http_tool(
+                tool,
+                {},
+                gathered_context_vars={"customer_id": "42"},
+            )
+
+            call_kwargs = mock_client.request.call_args.kwargs
+            assert call_kwargs["url"] == "https://api.example.com/customers/42/profile"
+
+    @pytest.mark.asyncio
+    async def test_url_without_template_variables_unchanged(self):
+        """Test that URLs without template variables are passed through unchanged."""
+        tool = MockToolModel(
+            tool_uuid="test-uuid-no-var",
+            name="Static URL",
+            description="API with static URL",
+            category="http_api",
+            definition={
+                "schema_version": 1,
+                "type": "http_api",
+                "config": {
+                    "method": "GET",
+                    "url": "https://api.example.com/static/endpoint",
+                    "timeout_ms": 5000,
+                },
+            },
+        )
+
+        with patch(
+            "api.services.workflow.tools.custom_tool.httpx.AsyncClient"
+        ) as mock_client_class:
+            mock_client = AsyncMock()
+            mock_response = Mock()
+            mock_response.status_code = 200
+            mock_response.json.return_value = {}
+            mock_client.request.return_value = mock_response
+            mock_client_class.return_value.__aenter__.return_value = mock_client
+
+            await execute_http_tool(tool, {})
+
+            call_kwargs = mock_client.request.call_args.kwargs
+            assert call_kwargs["url"] == "https://api.example.com/static/endpoint"
+
 
 class TestCoerceParameterValue:
     """Tests for _coerce_parameter_value function."""
diff --git a/ui/src/app/tools/[toolUuid]/components/HttpApiToolConfig.tsx b/ui/src/app/tools/[toolUuid]/components/HttpApiToolConfig.tsx
index 37b0d8fa..e61f6860 100644
--- a/ui/src/app/tools/[toolUuid]/components/HttpApiToolConfig.tsx
+++ b/ui/src/app/tools/[toolUuid]/components/HttpApiToolConfig.tsx
@@ -141,6 +141,9 @@ export function HttpApiToolConfig({
 
                         <div className="grid gap-2">
                             <Label>Endpoint URL</Label>
+                            <Label className="text-xs text-muted-foreground">
+                                Supports {`{{variable}}`} syntax using initial and gathered context variables in the URL path
+                            </Label>
                             <UrlInput
                                 value={url}
                                 onChange={onUrlChange}
diff --git a/ui/src/components/http/url-input.tsx b/ui/src/components/http/url-input.tsx
index 64a76118..88a61833 100644
--- a/ui/src/components/http/url-input.tsx
+++ b/ui/src/components/http/url-input.tsx
@@ -19,6 +19,12 @@ export interface UrlValidationResult {
     error?: string;
 }
 
+const DOMAIN_REGEX = /^https?:\/\/([^\/]+)/;
+
+function domainContainsTemplateVar(domain: string): boolean {
+    return domain.includes("{{") || domain.includes("}}");
+}
+
 export function validateUrl(url: string): UrlValidationResult {
     const trimmedUrl = url.trim();
 
@@ -26,6 +32,18 @@ export function validateUrl(url: string): UrlValidationResult {
         return { valid: false, error: "URL is required" };
     }
 
+    // If the URL contains template variables, validate domain separately
+    if (trimmedUrl.includes("{{")) {
+        const domainMatch = trimmedUrl.match(DOMAIN_REGEX);
+        if (!domainMatch || domainContainsTemplateVar(domainMatch[1])) {
+            return {
+                valid: false,
+                error: "Invalid URL format. Template variables are only allowed in the URL path.",
+            };
+        }
+        return { valid: true };
+    }
+
     if (!URL_REGEX.test(trimmedUrl)) {
         return {
             valid: false,