diff --git a/ads/aqua/modeldeployment/deployment.py b/ads/aqua/modeldeployment/deployment.py
index aab79b008..52d7613b6 100644
--- a/ads/aqua/modeldeployment/deployment.py
+++ b/ads/aqua/modeldeployment/deployment.py
@@ -68,10 +68,7 @@
     ModelDeploymentConfigSummary,
     MultiModelDeploymentConfigLoader,
 )
-from ads.aqua.modeldeployment.constants import (
-    DEFAULT_POLL_INTERVAL,
-    DEFAULT_WAIT_TIME,
-)
+from ads.aqua.modeldeployment.constants import DEFAULT_POLL_INTERVAL, DEFAULT_WAIT_TIME
 from ads.aqua.modeldeployment.entities import (
     AquaDeployment,
     AquaDeploymentDetail,
@@ -529,6 +526,7 @@ def _create(
 
         # validate user provided params
         user_params = env_var.get("PARAMS", UNKNOWN)
+
         if user_params:
             # todo: remove this check in the future version, logic to be moved to container_index
             if (
@@ -554,6 +552,18 @@ def _create(
         deployment_params = get_combined_params(config_params, user_params)
 
         params = f"{params} {deployment_params}".strip()
+
+        if create_deployment_details.model_name:
+            # Replace existing --served-model-name argument if present, otherwise add it
+            if "--served-model-name" in params:
+                params = re.sub(
+                    r"--served-model-name\s+\S+",
+                    f"--served-model-name {create_deployment_details.model_name}",
+                    params,
+                )
+            else:
+                params += f" --served-model-name {create_deployment_details.model_name}"
+
         if params:
             env_var.update({"PARAMS": params})
         env_vars = container_spec.env_vars if container_spec else []
diff --git a/ads/aqua/modeldeployment/entities.py b/ads/aqua/modeldeployment/entities.py
index 4429b0472..ee030bc4a 100644
--- a/ads/aqua/modeldeployment/entities.py
+++ b/ads/aqua/modeldeployment/entities.py
@@ -233,6 +233,9 @@ class CreateModelDeploymentDetails(BaseModel):
         None, description="The description of the deployment."
     )
     model_id: Optional[str] = Field(None, description="The model OCID to deploy.")
+    model_name: Optional[str] = Field(
+        None, description="The model name specified by user to deploy."
+    )
 
     models: Optional[List[AquaMultiModelRef]] = Field(
         None, description="List of models for multimodel deployment."
diff --git a/tests/unitary/with_extras/aqua/test_common_utils.py b/tests/unitary/with_extras/aqua/test_common_utils.py
index e10e146ed..85cb57941 100644
--- a/tests/unitary/with_extras/aqua/test_common_utils.py
+++ b/tests/unitary/with_extras/aqua/test_common_utils.py
@@ -5,6 +5,7 @@
 # Licensed under the Universal Permissive License v 1.0 as shown at https://oss.oracle.com/licenses/upl/
 
 import pytest
+
 from ads.aqua.common.utils import get_preferred_compatible_family
 
 
@@ -14,15 +15,15 @@ class TestCommonUtils:
         [
             (
                 {"odsc-vllm-serving", "odsc-vllm-serving-v1"},
-                "odsc-vllm-serving-v1",
+                "odsc-vllm-serving-openai",
             ),
             (
                 {"odsc-vllm-serving", "odsc-vllm-serving-llama4"},
-                "odsc-vllm-serving-llama4",
+                "odsc-vllm-serving-openai",
             ),
             (
                 {"odsc-vllm-serving-v1", "odsc-vllm-serving-llama4"},
-                "odsc-vllm-serving-llama4",
+                "odsc-vllm-serving-openai",
             ),
             (
                 {
@@ -30,7 +31,7 @@ class TestCommonUtils:
                     "odsc-vllm-serving-v1",
                     "odsc-vllm-serving-llama4",
                 },
-                "odsc-vllm-serving-llama4",
+                "odsc-vllm-serving-openai",
             ),
             ({"odsc-tgi-serving", "odsc-vllm-serving"}, None),
             ({"non-existing-one", "odsc-tgi-serving"}, None),