diff --git a/api/enums.py b/api/enums.py
index 8b19bcc..272bbba 100644
--- a/api/enums.py
+++ b/api/enums.py
@@ -122,7 +122,8 @@ class ToolCategory(Enum):
 
     HTTP_API = "http_api"  # Custom HTTP API calls (implemented)
     END_CALL = "end_call"  # End call tool
-    NATIVE = "native"  # Built-in integrations (future: call_transfer, dtmf_input)
+    TRANSFER_CALL = "transfer_call"  # Transfer call to another number
+    NATIVE = "native"  # Built-in integrations (future: dtmf_input)
     INTEGRATION = "integration"  # Third-party integrations (future: Google Calendar, Salesforce, etc.)
 
 
diff --git a/api/routes/telephony.py b/api/routes/telephony.py
index 0ed6c87..7369ee0 100644
--- a/api/routes/telephony.py
+++ b/api/routes/telephony.py
@@ -30,6 +30,10 @@ from api.services.telephony.factory import (
     get_all_telephony_providers,
     get_telephony_provider,
 )
+from api.services.workflow.transfer_event_protocol import (
+    TransferEventType,
+    send_transfer_signal,
+)
 from api.utils.common import get_backend_endpoints
 from api.utils.telephony_helper import (
     generic_hangup_response,
@@ -1480,3 +1484,52 @@ async def handle_cloudonix_cdr(request: Request):
     )
 
     return {"status": "success"}
+
+
+class TransferSignalRequest(BaseModel):
+    """Request to send a transfer signal."""
+
+    action: str = "proceed"  # "proceed" or "cancel"
+    message: Optional[str] = None
+
+
+@router.post("/transfer-signal/{workflow_run_id}")
+async def send_transfer_signal_endpoint(
+    workflow_run_id: int,
+    request: TransferSignalRequest,
+):
+    """Send a transfer signal to unblock a waiting transfer call handler.
+
+    This is a POC endpoint to test the transfer call flow.
+    Call this endpoint to signal that the transfer is ready to proceed.
+
+    Args:
+        workflow_run_id: The workflow run ID waiting for the signal
+        request: The signal action (proceed or cancel) and optional message
+    """
+    logger.info(
+        f"[run {workflow_run_id}] Received transfer signal request: action={request.action}"
+    )
+
+    event_type = (
+        TransferEventType.TRANSFER_PROCEED
+        if request.action == "proceed"
+        else TransferEventType.TRANSFER_CANCEL
+    )
+
+    success = await send_transfer_signal(
+        workflow_run_id=workflow_run_id,
+        event_type=event_type,
+        message=request.message,
+    )
+
+    if success:
+        return {
+            "status": "success",
+            "message": f"Transfer signal sent: {request.action}",
+        }
+    else:
+        raise HTTPException(
+            status_code=500,
+            detail="Failed to send transfer signal",
+        )
diff --git a/api/services/workflow/pipecat_engine_custom_tools.py b/api/services/workflow/pipecat_engine_custom_tools.py
index b60ea79..79e29c3 100644
--- a/api/services/workflow/pipecat_engine_custom_tools.py
+++ b/api/services/workflow/pipecat_engine_custom_tools.py
@@ -20,6 +20,10 @@ from api.services.workflow.tools.custom_tool import (
     execute_http_tool,
     tool_to_function_schema,
 )
+from api.services.workflow.transfer_event_protocol import (
+    TransferEventType,
+    wait_for_transfer_signal,
+)
 from pipecat.adapters.schemas.function_schema import FunctionSchema
 from pipecat.frames.frames import FunctionCallResultProperties, TTSSpeakFrame
 from pipecat.services.llm_service import FunctionCallParams
@@ -139,6 +143,9 @@ class CustomToolManager:
         if tool.category == ToolCategory.END_CALL.value:
             return self._create_end_call_handler(tool, function_name)
 
+        if tool.category == ToolCategory.TRANSFER_CALL.value:
+            return self._create_transfer_call_handler(tool, function_name)
+
         return self._create_http_tool_handler(tool, function_name)
 
     def _create_http_tool_handler(self, tool: Any, function_name: str):
@@ -230,3 +237,100 @@ class CustomToolManager:
                 )
 
         return end_call_handler
+
+    def _create_transfer_call_handler(self, tool: Any, function_name: str):
+        """Create a handler function for a transfer call tool.
+
+        Args:
+            tool: The ToolModel instance
+            function_name: The function name used by the LLM
+
+        Returns:
+            Async handler function for the transfer call tool
+        """
+
+        async def transfer_call_handler(
+            function_call_params: FunctionCallParams,
+        ) -> None:
+            logger.info(f"Transfer Call Tool EXECUTED: {function_name}")
+
+            try:
+                # Get the transfer call configuration
+                config = tool.definition.get("config", {})
+                transfer_number = config.get("transferNumber", "")
+                transfer_message = config.get("transferMessage", "")
+
+                if not transfer_number:
+                    logger.error("Transfer number not configured")
+                    await function_call_params.result_callback(
+                        {"status": "error", "error": "Transfer number not configured"}
+                    )
+                    return
+
+                logger.info(f"Initiating transfer to: {transfer_number}")
+
+                # Play transfer message if configured
+                if transfer_message:
+                    logger.info(f"Playing transfer message: {transfer_message}")
+                    await self._engine.task.queue_frame(TTSSpeakFrame(transfer_message))
+
+                # Store transfer intent in gathered context
+                self._engine._gathered_context["transfer_requested"] = True
+                self._engine._gathered_context["transfer_number"] = transfer_number
+
+                # Wait for external signal to proceed with transfer (30s timeout)
+                workflow_run_id = self._engine._workflow_run_id
+                logger.info(
+                    f"Waiting for transfer signal for workflow_run_id: {workflow_run_id}"
+                )
+
+                transfer_event = await wait_for_transfer_signal(
+                    workflow_run_id=workflow_run_id,
+                    timeout_seconds=30.0,
+                )
+
+                if transfer_event is None:
+                    # Timeout - transfer failed
+                    logger.warning("Transfer signal timed out")
+                    self._engine._gathered_context["transfer_status"] = "timed_out"
+                    await function_call_params.result_callback(
+                        {"status": "error", "error": "Transfer signal timed out"}
+                    )
+                    return
+
+                if transfer_event.type == TransferEventType.TRANSFER_CANCEL.value:
+                    # Cancelled - transfer failed
+                    logger.info("Transfer was cancelled")
+                    self._engine._gathered_context["transfer_status"] = "cancelled"
+                    await function_call_params.result_callback(
+                        {"status": "error", "error": "Transfer was cancelled"}
+                    )
+                    return
+
+                # Success - proceed with transfer
+                logger.info("Transfer signal received - proceeding with transfer")
+                self._engine._gathered_context["transfer_status"] = "success"
+
+                # Lets send result callback so that timeout task is cancelled. Lets not
+                # run llm
+                await function_call_params.result_callback(
+                    {"status": "error", "error": "Transfer was cancelled"},
+                    properties=FunctionCallResultProperties(run_llm=False),
+                )
+
+                # Terminate the call after the call is added to the conference
+                await self._engine.end_call_with_reason(
+                    EndTaskReason.CALL_TRANSFERRED.value,
+                    abort_immediately=True,
+                )
+
+            except Exception as e:
+                logger.error(
+                    f"Transfer call tool '{function_name}' execution failed: {e}"
+                )
+                await function_call_params.result_callback(
+                    {"status": "error", "error": str(e)},
+                    properties=properties,
+                )
+
+        return transfer_call_handler
diff --git a/api/services/workflow/transfer_event_protocol.py b/api/services/workflow/transfer_event_protocol.py
new file mode 100644
index 0000000..7e59e8d
--- /dev/null
+++ b/api/services/workflow/transfer_event_protocol.py
@@ -0,0 +1,127 @@
+"""Transfer call event protocol for Redis-based coordination.
+
+Simple protocol for awaiting transfer completion signal from external trigger.
+"""
+
+import asyncio
+import json
+from dataclasses import asdict, dataclass
+from enum import Enum
+from typing import Optional
+
+import redis.asyncio as aioredis
+from loguru import logger
+
+from api.constants import REDIS_URL
+
+
+class TransferEventType(str, Enum):
+    """Types of transfer events."""
+
+    TRANSFER_PROCEED = "transfer_proceed"
+    TRANSFER_CANCEL = "transfer_cancel"
+
+
+@dataclass
+class TransferEvent:
+    """Event sent to signal transfer status."""
+
+    type: str
+    workflow_run_id: int
+    message: Optional[str] = None
+
+    def to_json(self) -> str:
+        return json.dumps(asdict(self))
+
+    @classmethod
+    def from_json(cls, data: str) -> "TransferEvent":
+        return cls(**json.loads(data))
+
+
+class TransferRedisChannels:
+    """Redis channel naming for transfer events."""
+
+    @staticmethod
+    def transfer_await(workflow_run_id: int) -> str:
+        """Channel for awaiting transfer completion."""
+        return f"transfer:await:{workflow_run_id}"
+
+
+async def wait_for_transfer_signal(
+    workflow_run_id: int,
+    timeout_seconds: float = 30.0,
+) -> Optional[TransferEvent]:
+    """Wait for a transfer signal on Redis pub/sub.
+
+    Args:
+        workflow_run_id: The workflow run ID to wait for
+        timeout_seconds: How long to wait before timing out
+
+    Returns:
+        TransferEvent if received, None if timed out
+    """
+    channel = TransferRedisChannels.transfer_await(workflow_run_id)
+    redis_client = await aioredis.from_url(REDIS_URL, decode_responses=True)
+    pubsub = redis_client.pubsub()
+
+    try:
+        await pubsub.subscribe(channel)
+        logger.info(f"Waiting for transfer signal on channel: {channel}")
+
+        async def listen_for_event() -> Optional[TransferEvent]:
+            async for message in pubsub.listen():
+                if message["type"] == "message":
+                    event = TransferEvent.from_json(message["data"])
+                    logger.info(f"Received transfer event: {event.type}")
+                    return event
+            # pubsub.listen() ended (connection closed) - return None
+            return None
+
+        # Wait with timeout
+        event = await asyncio.wait_for(listen_for_event(), timeout=timeout_seconds)
+        return event
+
+    except asyncio.TimeoutError:
+        logger.warning(f"Transfer signal timed out after {timeout_seconds}s")
+        return None
+    except Exception as e:
+        logger.error(f"Error waiting for transfer signal: {e}")
+        return None
+    finally:
+        await pubsub.unsubscribe(channel)
+        await pubsub.aclose()
+        await redis_client.aclose()
+
+
+async def send_transfer_signal(
+    workflow_run_id: int,
+    event_type: TransferEventType = TransferEventType.TRANSFER_PROCEED,
+    message: Optional[str] = None,
+) -> bool:
+    """Send a transfer signal to unblock a waiting handler.
+
+    Args:
+        workflow_run_id: The workflow run ID to signal
+        event_type: Type of signal (proceed or cancel)
+        message: Optional message
+
+    Returns:
+        True if signal was sent successfully
+    """
+    channel = TransferRedisChannels.transfer_await(workflow_run_id)
+    redis_client = await aioredis.from_url(REDIS_URL, decode_responses=True)
+
+    try:
+        event = TransferEvent(
+            type=event_type.value,
+            workflow_run_id=workflow_run_id,
+            message=message,
+        )
+        await redis_client.publish(channel, event.to_json())
+        logger.info(f"Sent transfer signal to channel: {channel}")
+        return True
+    except Exception as e:
+        logger.error(f"Error sending transfer signal: {e}")
+        return False
+    finally:
+        await redis_client.aclose()
diff --git a/api/tests/conftest.py b/api/tests/conftest.py
index 15e6b54..441151a 100644
--- a/api/tests/conftest.py
+++ b/api/tests/conftest.py
@@ -113,6 +113,7 @@ class MockToolModel:
     name: str
     description: str
     definition: Dict[str, Any]
+    category: str = "http_api"
 
 
 @pytest.fixture
@@ -144,6 +145,25 @@ def mock_user_config():
     return MockUserConfig()
 
 
+@pytest.fixture
+def transfer_call_tool():
+    """Create a mock transfer call tool for testing."""
+    return MockToolModel(
+        tool_uuid="transfer-uuid-001",
+        name="Transfer to Support",
+        description="Transfer the call to a support representative",
+        category="transfer_call",
+        definition={
+            "schema_version": 1,
+            "type": "transfer_call",
+            "config": {
+                "transferNumber": "+15551234567",
+                "transferMessage": "Please hold while I transfer you to a support representative.",
+            },
+        },
+    )
+
+
 @pytest.fixture
 def sample_tools():
     """Create sample mock tools for testing."""
diff --git a/api/tests/test_pipecat_engine_tool_calls.py b/api/tests/test_pipecat_engine_tool_calls.py
index 7938df8..a8f04e5 100644
--- a/api/tests/test_pipecat_engine_tool_calls.py
+++ b/api/tests/test_pipecat_engine_tool_calls.py
@@ -5,14 +5,15 @@ using PipecatEngine's actual function registration and execution logic.
 """
 
 import asyncio
-from typing import Any, Dict, List
+from typing import Any, Callable, Coroutine, Dict, List, Optional
 from unittest.mock import AsyncMock, patch
 
 import pytest
 
 from api.services.workflow.pipecat_engine import PipecatEngine
+from api.services.workflow.transfer_event_protocol import send_transfer_signal
 from api.services.workflow.workflow import WorkflowGraph
-from api.tests.conftest import END_CALL_SYSTEM_PROMPT
+from api.tests.conftest import END_CALL_SYSTEM_PROMPT, MockToolModel
 from pipecat.frames.frames import LLMContextFrame
 from pipecat.pipeline.pipeline import Pipeline
 from pipecat.pipeline.runner import PipelineRunner
@@ -32,7 +33,11 @@ async def run_pipeline_with_tool_calls(
     functions: List[Dict[str, Any]],
     text: str | None = None,
     num_text_steps: int = 1,
-) -> tuple[MockLLMService, LLMContext]:
+    mock_tools: Optional[List[MockToolModel]] = None,
+    on_engine_ready: Optional[
+        Callable[[PipecatEngine], Coroutine[Any, Any, None]]
+    ] = None,
+) -> tuple[MockLLMService, LLMContext, PipecatEngine]:
     """Run a pipeline with mock tool calls and return the LLM for assertions.
 
     Args:
@@ -40,9 +45,12 @@ async def run_pipeline_with_tool_calls(
         functions: List of function call definitions with name, arguments, and tool_call_id.
         text: Text to add to the first step (streamed before the tool calls).
         num_text_steps: Number of text response steps after the tool calls.
+        mock_tools: Optional list of mock tools to be returned by db_client.get_tools_by_uuids.
+        on_engine_ready: Optional async callback called after engine is initialized.
+            Useful for sending signals or performing actions during pipeline execution.
 
     Returns:
-        The MockLLMService instance for making assertions.
+        Tuple of (MockLLMService, LLMContext, PipecatEngine) for making assertions.
     """
     # Create first step chunks
     if text:
@@ -118,25 +126,43 @@ async def run_pipeline_with_tool_calls(
         return_value=1,
     ):
         with patch(
-            "api.services.workflow.pipecat_engine.apply_disposition_mapping",
+            "api.services.workflow.pipecat_engine_custom_tools.get_organization_id_from_workflow_run",
             new_callable=AsyncMock,
-            return_value="completed",
+            return_value=1,
         ):
-            runner = PipelineRunner()
+            with patch(
+                "api.services.workflow.pipecat_engine.apply_disposition_mapping",
+                new_callable=AsyncMock,
+                return_value="completed",
+            ):
+                with patch(
+                    "api.services.workflow.pipecat_engine_custom_tools.db_client.get_tools_by_uuids",
+                    new_callable=AsyncMock,
+                    return_value=mock_tools or [],
+                ):
+                    runner = PipelineRunner()
 
-            async def run_pipeline():
-                await runner.run(task)
+                    async def run_pipeline():
+                        await runner.run(task)
 
-            async def initialize_engine():
-                # Small delay to let runner start
-                await asyncio.sleep(0.01)
-                await engine.initialize()
-                await engine.llm.queue_frame(LLMContextFrame(engine.context))
+                    async def initialize_engine():
+                        # Small delay to let runner start
+                        await asyncio.sleep(0.01)
+                        await engine.initialize()
+                        await engine.llm.queue_frame(LLMContextFrame(engine.context))
 
-            # Run both concurrently
-            await asyncio.gather(run_pipeline(), initialize_engine())
+                    async def run_callback():
+                        if on_engine_ready:
+                            # Wait for engine to process tool calls
+                            await asyncio.sleep(0.1)
+                            await on_engine_ready(engine)
 
-    return llm, context
+                    # Run all concurrently
+                    await asyncio.gather(
+                        run_pipeline(), initialize_engine(), run_callback()
+                    )
+
+    return llm, context, engine
 
 
 class TestPipecatEngineToolCalls:
@@ -172,7 +198,7 @@ class TestPipecatEngineToolCalls:
             },
         ]
 
-        llm, context = await run_pipeline_with_tool_calls(
+        llm, context, _ = await run_pipeline_with_tool_calls(
             workflow=simple_workflow,
             functions=functions,
             num_text_steps=2,
@@ -218,7 +244,7 @@ class TestPipecatEngineToolCalls:
             },
         ]
 
-        llm, context = await run_pipeline_with_tool_calls(
+        llm, context, _ = await run_pipeline_with_tool_calls(
             workflow=simple_workflow,
             functions=functions,
             num_text_steps=2,
@@ -265,7 +291,7 @@ class TestPipecatEngineToolCalls:
             },
         ]
 
-        llm, context = await run_pipeline_with_tool_calls(
+        llm, context, _ = await run_pipeline_with_tool_calls(
             workflow=simple_workflow,
             functions=functions,
             text="Hello There!",
@@ -302,7 +328,7 @@ class TestPipecatEngineToolCalls:
             },
         ]
 
-        llm, context = await run_pipeline_with_tool_calls(
+        llm, context, _ = await run_pipeline_with_tool_calls(
             workflow=simple_workflow,
             functions=functions,
             num_text_steps=1,
@@ -316,3 +342,54 @@ class TestPipecatEngineToolCalls:
 
         # Assert that the context was updated with END_CALL_SYSTEM_PROMPT
         assert context.messages[0]["content"] == END_CALL_SYSTEM_PROMPT
+
+    @pytest.mark.asyncio
+    async def test_transfer_call_tool_execution(
+        self, simple_workflow: WorkflowGraph, transfer_call_tool: MockToolModel
+    ):
+        """Test transfer call tool execution through PipecatEngine.
+
+        This test verifies that when the LLM calls the transfer_to_support tool:
+        1. The transfer call handler is invoked
+        2. The handler waits for a transfer signal via Redis pub/sub
+        3. When the signal is sent, the handler proceeds
+        4. The gathered_context is updated with transfer_requested=True
+        5. The gathered_context contains the transfer_number
+        """
+        # Add the transfer tool to the start node at runtime
+        simple_workflow.nodes["start"].tool_uuids = [transfer_call_tool.tool_uuid]
+        simple_workflow.nodes["start"].extraction_enabled = False
+
+        # The function name is derived from the tool name (snake_case)
+        functions = [
+            {
+                "name": "transfer_to_support",
+                "arguments": {},
+                "tool_call_id": "call_transfer",
+            },
+        ]
+
+        # Callback to send transfer signal while handler is waiting
+        async def send_signal(engine: PipecatEngine):
+            # Send the transfer signal to unblock the waiting handler
+            await send_transfer_signal(
+                workflow_run_id=engine._workflow_run_id,
+            )
+
+        _, _, engine = await run_pipeline_with_tool_calls(
+            workflow=simple_workflow,
+            functions=functions,
+            num_text_steps=1,
+            mock_tools=[transfer_call_tool],
+            on_engine_ready=send_signal,
+        )
+
+        # Verify the gathered context was updated with transfer information
+        gathered_context = await engine.get_gathered_context()
+
+        assert gathered_context.get("transfer_requested") is True, (
+            "transfer_requested should be True in gathered_context"
+        )
+        assert gathered_context.get("transfer_number") == "+15551234567", (
+            "transfer_number should match the configured number"
+        )
diff --git a/ui/src/app/tools/config.tsx b/ui/src/app/tools/config.tsx
index 7cfe799..c8912df 100644
--- a/ui/src/app/tools/config.tsx
+++ b/ui/src/app/tools/config.tsx
@@ -1,9 +1,9 @@
 "use client";
 
-import { Cog, Globe, type LucideIcon,PhoneOff, Puzzle } from "lucide-react";
+import { Cog, Globe, type LucideIcon, PhoneForwarded, PhoneOff, Puzzle } from "lucide-react";
 import { type ReactNode } from "react";
 
-export type ToolCategory = "http_api" | "end_call" | "native" | "integration";
+export type ToolCategory = "http_api" | "end_call" | "transfer_call" | "native" | "integration";
 
 export type EndCallMessageType = "none" | "custom";
 
@@ -42,6 +42,18 @@ export const TOOL_CATEGORIES: ToolCategoryConfig[] = [
             description: "End the call when either user asks to disconnect the call, or when you believe its time to end the conversation",
         },
     },
+    {
+        value: "transfer_call",
+        label: "Transfer Call",
+        description: "Transfer the call to another phone number",
+        icon: PhoneForwarded,
+        iconName: "phone-forwarded",
+        iconColor: "#10B981",
+        autoFill: {
+            name: "Transfer Call",
+            description: "Transfer the call to another phone number when the user requests to speak with a human or when escalation is needed",
+        },
+    },
     {
         value: "native",
         label: "Native (Coming Soon)",
@@ -85,6 +97,8 @@ export function getToolTypeLabel(category: string): string {
     switch (category) {
         case "end_call":
             return "End Call Tool";
+        case "transfer_call":
+            return "Transfer Call Tool";
         case "http_api":
             return "HTTP API Tool";
         case "native":
@@ -107,6 +121,17 @@ export const DEFAULT_END_CALL_CONFIG: EndCallConfig = {
     customMessage: "",
 };
 
+// Transfer Call tool specific configuration
+export interface TransferCallConfig {
+    transferNumber: string;
+    transferMessage?: string;
+}
+
+export const DEFAULT_TRANSFER_CALL_CONFIG: TransferCallConfig = {
+    transferNumber: "",
+    transferMessage: "",
+};
+
 // Tool definition types for different categories
 export interface HttpApiToolDefinition {
     schema_version: number;
@@ -132,7 +157,13 @@ export interface EndCallToolDefinition {
     config: EndCallConfig;
 }
 
-export type ToolDefinition = HttpApiToolDefinition | EndCallToolDefinition;
+export interface TransferCallToolDefinition {
+    schema_version: number;
+    type: "transfer_call";
+    config: TransferCallConfig;
+}
+
+export type ToolDefinition = HttpApiToolDefinition | EndCallToolDefinition | TransferCallToolDefinition;
 
 export function createEndCallDefinition(config: EndCallConfig): EndCallToolDefinition {
     return {
@@ -142,6 +173,14 @@ export function createEndCallDefinition(config: EndCallConfig): EndCallToolDefin
     };
 }
 
+export function createTransferCallDefinition(config: TransferCallConfig): TransferCallToolDefinition {
+    return {
+        schema_version: 1,
+        type: "transfer_call",
+        config,
+    };
+}
+
 export function createHttpApiDefinition(): HttpApiToolDefinition {
     return {
         schema_version: 1,
@@ -157,6 +196,8 @@ export function createToolDefinition(category: ToolCategory): ToolDefinition {
     switch (category) {
         case "end_call":
             return createEndCallDefinition(DEFAULT_END_CALL_CONFIG);
+        case "transfer_call":
+            return createTransferCallDefinition(DEFAULT_TRANSFER_CALL_CONFIG);
         case "http_api":
         default:
             return createHttpApiDefinition();
diff --git a/ui/src/app/tools/page.tsx b/ui/src/app/tools/page.tsx
index d31f1c5..c0b8743 100644
--- a/ui/src/app/tools/page.tsx
+++ b/ui/src/app/tools/page.tsx
@@ -227,6 +227,8 @@ export default function ToolsPage() {
                 return <Badge variant="default">HTTP API</Badge>;
             case "end_call":
                 return <Badge variant="destructive">End Call</Badge>;
+            case "transfer_call":
+                return <Badge className="bg-emerald-500">Transfer Call</Badge>;
             case "native":
                 return <Badge variant="secondary">Native</Badge>;
             case "integration":