diff --git a/packages/app-store/components.tsx b/packages/app-store/components.tsx
index ec99ba3028..53397a6d26 100644
--- a/packages/app-store/components.tsx
+++ b/packages/app-store/components.tsx
@@ -97,6 +97,7 @@ export const AppDependencyComponent = ({
                         {t("this_app_requires_connected_account", {
                           appName,
                           dependencyName: dependency.name,
+                          interpolation: { escapeValue: false },
                         })}
                       </span>
                     </div>
@@ -112,7 +113,11 @@ export const AppDependencyComponent = ({
                 </div>
                 <div>
                   <span className="font-semibold">
-                    {t("this_app_requires_connected_account", { appName, dependencyName: dependency.name })}
+                    {t("this_app_requires_connected_account", {
+                      appName,
+                      dependencyName: dependency.name,
+                      interpolation: { escapeValue: false },
+                    })}
                   </span>
 
                   <div>
diff --git a/packages/app-store/locations.ts b/packages/app-store/locations.ts
index bb5deeb94e..c5a911554e 100644
--- a/packages/app-store/locations.ts
+++ b/packages/app-store/locations.ts
@@ -61,6 +61,8 @@ export const DailyLocationType = "integrations:daily";
 
 export const MeetLocationType = "integrations:google:meet";
 
+export const MSTeamsLocationType = "integrations:office365_video";
+
 /**
  * This isn't an actual location app type. It is a special value that informs to use the Organizer's default conferencing app during booking
  */
diff --git a/packages/app-store/office365calendar/lib/CalendarService.ts b/packages/app-store/office365calendar/lib/CalendarService.ts
index 6579b0949d..04626103f4 100644
--- a/packages/app-store/office365calendar/lib/CalendarService.ts
+++ b/packages/app-store/office365calendar/lib/CalendarService.ts
@@ -1,8 +1,9 @@
 import type { Calendar as OfficeCalendar, User, Event } from "@microsoft/microsoft-graph-types-beta";
 import type { DefaultBodyType } from "msw";
 
+import { MSTeamsLocationType } from "@calcom/app-store/locations";
 import dayjs from "@calcom/dayjs";
-import { getLocation } from "@calcom/lib/CalEventParser";
+import { getLocation, getRichDescriptionHTML } from "@calcom/lib/CalEventParser";
 import {
   CalendarAppDelegationCredentialInvalidGrantError,
   CalendarAppDelegationCredentialConfigurationError,
@@ -254,7 +255,13 @@ export default class Office365CalendarService implements Calendar {
         body: JSON.stringify(this.translateEvent(event)),
       });
 
-      const responseJson = await handleErrorsJson<NewCalendarEventType & { iCalUId: string }>(response);
+      const responseJson = await handleErrorsJson<
+        NewCalendarEventType & { iCalUId: string; onlineMeeting?: { joinUrl?: string } }
+      >(response);
+
+      if (responseJson?.onlineMeeting?.joinUrl) {
+        responseJson.url = responseJson?.onlineMeeting?.joinUrl;
+      }
 
       return { ...responseJson, iCalUID: responseJson.iCalUId };
     } catch (error) {
@@ -266,12 +273,28 @@ export default class Office365CalendarService implements Calendar {
 
   async updateEvent(uid: string, event: CalendarServiceEvent): Promise<NewCalendarEventType> {
     try {
+      let rescheduledEvent: Event | undefined;
+      if (event.location === MSTeamsLocationType) {
+        // Extract the existing body content to preserve the meeting blob, otherwise it breaks and converts it into non-onlineMeeting
+        const response = await this.fetcher(`${await this.getUserEndpoint()}/calendar/events/${uid}`, {
+          method: "GET",
+        });
+
+        rescheduledEvent = await handleErrorsJson<Event>(response);
+      }
+
       const response = await this.fetcher(`${await this.getUserEndpoint()}/calendar/events/${uid}`, {
         method: "PATCH",
-        body: JSON.stringify(this.translateEvent(event)),
+        body: JSON.stringify(this.translateEvent(event, rescheduledEvent)),
       });
 
-      const responseJson = await handleErrorsJson<NewCalendarEventType & { iCalUId: string }>(response);
+      const responseJson = await handleErrorsJson<
+        NewCalendarEventType & { iCalUId: string; onlineMeeting?: { joinUrl?: string } }
+      >(response);
+
+      if (responseJson?.onlineMeeting?.joinUrl) {
+        responseJson.url = responseJson?.onlineMeeting?.joinUrl;
+      }
 
       return { ...responseJson, iCalUID: responseJson.iCalUId };
     } catch (error) {
@@ -401,12 +424,30 @@ export default class Office365CalendarService implements Calendar {
     });
   }
 
-  private translateEvent = (event: CalendarServiceEvent) => {
+  private translateEvent = (event: CalendarServiceEvent, rescheduledEvent?: Event) => {
+    const isOnlineMeeting = event.location === MSTeamsLocationType;
+    const isRescheduledOnlineMeeting = rescheduledEvent ? rescheduledEvent.isOnlineMeeting : false;
+    const existingBody =
+      rescheduledEvent?.body?.contentType === "html" ? rescheduledEvent.body.content : undefined;
+
+    let content = "";
+    if (isOnlineMeeting) {
+      if (isRescheduledOnlineMeeting && existingBody) {
+        content = `
+        ${getRichDescriptionHTML(event)}<hr>
+        ${existingBody}`.trim();
+      } else {
+        content = getRichDescriptionHTML(event);
+      }
+    } else {
+      content = event.calendarDescription;
+    }
+
     const office365Event: Event = {
       subject: event.title,
       body: {
-        contentType: "text",
-        content: event.calendarDescription,
+        contentType: isOnlineMeeting ? "html" : "text",
+        content,
       },
       start: {
         dateTime: dayjs(event.startTime).tz(event.organizer.timeZone).format("YYYY-MM-DDTHH:mm:ss"),
@@ -456,6 +497,17 @@ export default class Office365CalendarService implements Calendar {
     if (event.hideCalendarEventDetails) {
       office365Event.sensitivity = "private";
     }
+    if (isOnlineMeeting) {
+      office365Event.isOnlineMeeting = true;
+      office365Event.allowNewTimeProposals = true;
+      office365Event.onlineMeetingProvider = "teamsForBusiness";
+      // MSTeams sets location as 'Microsoft Teams Meeting' by default, if location is undefined.
+      // For backward compatibility, setting explicitly.
+      office365Event.location =
+        rescheduledEvent && !isRescheduledOnlineMeeting
+          ? { displayName: "Microsoft Teams Meeting" }
+          : undefined;
+    }
     return office365Event;
   };
 
diff --git a/packages/app-store/office365video/_metadata.ts b/packages/app-store/office365video/_metadata.ts
index 644048c122..7eeda9685c 100644
--- a/packages/app-store/office365video/_metadata.ts
+++ b/packages/app-store/office365video/_metadata.ts
@@ -21,6 +21,7 @@ export const metadata = {
   publisher: "Cal.com",
   slug: "msteams",
   dirName: "office365video",
+  dependencies: ["office365-calendar"],
   url: "https://www.microsoft.com/en-ca/microsoft-teams/group-chat-software",
   email: "help@cal.com",
   isOAuth: true,
diff --git a/packages/app-store/office365video/config.json b/packages/app-store/office365video/config.json
index 9b663ad63d..64da746b4c 100644
--- a/packages/app-store/office365video/config.json
+++ b/packages/app-store/office365video/config.json
@@ -22,6 +22,7 @@
     }
   },
   "dirName": "office365video",
+  "dependencies": ["office365-calendar"],
   "concurrentMeetings": true,
   "isOAuth": true
 }
diff --git a/packages/lib/CalEventParser.ts b/packages/lib/CalEventParser.ts
index c51d2d7a5f..08d0a6f2e4 100644
--- a/packages/lib/CalEventParser.ts
+++ b/packages/lib/CalEventParser.ts
@@ -314,6 +314,64 @@ type RichDescriptionCalEvent = Parameters<typeof getCancellationReason>[0] &
   Parameters<typeof getManageLink>[0] &
   Pick<CalendarEvent, "organizer" | "paymentInfo">;
 
+export const getRichDescriptionHTML = (
+  calEvent: RichDescriptionCalEvent,
+  t_?: TFunction,
+  includeAppStatus = false
+) => {
+  const t = t_ ?? calEvent.organizer.language.translate;
+
+  // Helper function to convert plain text with newlines to HTML paragraphs
+  const textToHtml = (text: string) => {
+    if (!text) return "";
+    const lines = text.split("\n").filter(Boolean);
+    return lines
+      .map((line, index) => {
+        if (index === 0) {
+          return `<p><strong>${line}</strong></p>`;
+        }
+        return `<p>${line}</p>`;
+      })
+      .join("");
+  };
+
+  // Convert the manage link to a clickable hyperlink
+  const manageLinkText = getManageLink(calEvent, t);
+  const manageLinkHtml = manageLinkText
+    ? (() => {
+        const words = manageLinkText.split(" ");
+        const lastWord = words.pop();
+        if (lastWord && lastWord.includes("http")) {
+          const textWithoutLink = words.join(" ").trim();
+          return `<p><strong>${textWithoutLink}</strong> <a href="${lastWord}">Click here</a></p>`;
+        }
+        return `<p>${manageLinkText}</p>`;
+      })()
+    : "";
+
+  // Build the HTML content for each section
+  const parts = [
+    textToHtml(getCancellationReason(calEvent, t)),
+    textToHtml(getWhat(calEvent, t)),
+    textToHtml(getWhen(calEvent, t)),
+    textToHtml(getWho(calEvent, t)),
+    textToHtml(getDescription(calEvent, t)),
+    textToHtml(getAdditionalNotes(calEvent, t)),
+    textToHtml(getUserFieldsResponses(calEvent, t)),
+    includeAppStatus ? textToHtml(getAppsStatus(calEvent, t)) : "",
+    manageLinkHtml,
+    calEvent.paymentInfo
+      ? `<p><strong>${t("pay_now")}:</strong> <a href="${calEvent.paymentInfo.link}">${
+          calEvent.paymentInfo.link
+        }</a></p>`
+      : "",
+  ]
+    .filter(Boolean) // Remove empty strings
+    .join("\n"); // Single newline between sections
+
+  return parts.trim();
+};
+
 export const getRichDescription = (
   calEvent: RichDescriptionCalEvent,
   t_?: TFunction /*, attendee?: Person*/,
diff --git a/packages/lib/EventManager.ts b/packages/lib/EventManager.ts
index fd25434b77..5fe836b1cf 100644
--- a/packages/lib/EventManager.ts
+++ b/packages/lib/EventManager.ts
@@ -7,7 +7,7 @@ import type { z } from "zod";
 import { getCalendar } from "@calcom/app-store/_utils/getCalendar";
 import { FAKE_DAILY_CREDENTIAL } from "@calcom/app-store/dailyvideo/lib/VideoApiAdapter";
 import { appKeysSchema as calVideoKeysSchema } from "@calcom/app-store/dailyvideo/zod";
-import { getLocationFromApp, MeetLocationType } from "@calcom/app-store/locations";
+import { getLocationFromApp, MeetLocationType, MSTeamsLocationType } from "@calcom/app-store/locations";
 import getApps from "@calcom/app-store/utils";
 import { FeaturesRepository } from "@calcom/features/flags/features.repository";
 import { getUid } from "@calcom/lib/CalEventParser";
@@ -251,6 +251,32 @@ export default class EventManager {
     return matches;
   }
 
+  private updateMSTeamsVideoCallData(
+    evt: CalendarEvent,
+    results: Array<EventResult<Exclude<Event, AdditionalInformation>>>
+  ) {
+    const office365CalendarWithTeams = results.find(
+      (result) => result.type === "office365_calendar" && result.success && result.createdEvent?.url
+    );
+    if (office365CalendarWithTeams) {
+      evt.videoCallData = {
+        type: "office365_video",
+        id: office365CalendarWithTeams.createdEvent?.id,
+        password: "",
+        url: office365CalendarWithTeams.createdEvent?.url,
+      };
+      if (evt.location && evt.responses) {
+        evt.responses["location"] = {
+          ...(evt.responses["location"] ?? {}),
+          value: {
+            optionValue: "",
+            value: evt.location,
+          },
+        };
+      }
+    }
+  }
+
   /**
    * Takes a CalendarEvent and creates all necessary integration entries for it.
    * When a video integration is chosen as the event's location, a video integration
@@ -299,12 +325,15 @@ export default class EventManager {
         evt["conferenceCredentialId"] = undefined;
       }
     }
+
     const isDedicated = evt.location ? isDedicatedIntegration(evt.location) : null;
+    const isMSTeamsWithOutlookCalendar = evt.location === MSTeamsLocationType && mainHostDestinationCalendar?.integration === "office365_calendar";
 
     const results: Array<EventResult<Exclude<Event, AdditionalInformation>>> = [];
 
     // If and only if event type is a dedicated meeting, create a dedicated video meeting.
-    if (isDedicated) {
+    // If the event is a Microsoft Teams meeting with Outlook Calendar, do not create a MSTeams video event, create calendar event will take care.
+    if (isDedicated && !isMSTeamsWithOutlookCalendar) {
       const result = await this.createVideoEvent(evt);
 
       if (result?.createdEvent) {
@@ -331,6 +360,10 @@ export default class EventManager {
     // Create the calendar event with the proper video call data
     results.push(...(await this.createAllCalendarEvents(clonedCalEvent)));
 
+    if (evt.location === MSTeamsLocationType) {
+      this.updateMSTeamsVideoCallData(evt, results);
+    }
+
     // Since the result can be a new calendar event or video event, we have to create a type guard
     // https://www.typescriptlang.org/docs/handbook/2/narrowing.html#using-type-predicates
     const isCalendarResult = (
@@ -405,6 +438,10 @@ export default class EventManager {
     const calendarReference = booking.references.find((reference) => reference.type.includes("_calendar"));
     if (calendarReference) {
       results.push(...(await this.updateAllCalendarEvents(evt, booking)));
+
+      if (evt.location === MSTeamsLocationType) {
+        this.updateMSTeamsVideoCallData(evt, results);
+      }
     }
 
     const referencesToCreate = results.map((result) => {