diff --git a/docs/docs/components/custom.mdx b/docs/docs/components/custom.mdx
index f41c5f845..382c40cc4 100644
--- a/docs/docs/components/custom.mdx
+++ b/docs/docs/components/custom.mdx
@@ -56,7 +56,7 @@ The CustomComponent class serves as the foundation for creating custom component
 - **build_config**: Used to define the configuration fields of the component (if applicable). It should always return a dictionary with specific keys representing the field names and corresponding configurations. This method is called when the code is processed (i.e., when you click _Check and Save_ in the code editor). It must follow the format described below:
 
   - Top-level keys are field names.
-  - Their values are also of type _`dict`_. They specify the behavior of the generated fields.
+  - Their values are can be of type _`langflow.field_typing.TemplateField`_ or _`dict`_. They specify the behavior of the generated fields.
 
   Below are the available keys used to configure component fields:
 
diff --git a/src/backend/langflow/field_typing/__init__.py b/src/backend/langflow/field_typing/__init__.py
index f25f1f840..6fc932e6f 100644
--- a/src/backend/langflow/field_typing/__init__.py
+++ b/src/backend/langflow/field_typing/__init__.py
@@ -1,3 +1,5 @@
+from langflow.template.field.base import TemplateField
+
 from .constants import (
     AgentExecutor,
     BaseChatMemory,
@@ -48,4 +50,5 @@ __all__ = [
     "ChatPromptTemplate",
     "Prompt",
     "RangeSpec",
+    "TemplateField",
 ]
diff --git a/src/backend/langflow/interface/types.py b/src/backend/langflow/interface/types.py
index 8718579db..41c6ed350 100644
--- a/src/backend/langflow/interface/types.py
+++ b/src/backend/langflow/interface/types.py
@@ -129,7 +129,7 @@ def add_new_custom_field(
         advanced=field_advanced,
         placeholder=placeholder,
         display_name=display_name,
-        **field_config,
+        **sanitize_field_config(field_config),
     )
     template.get("template")[field_name] = new_field.model_dump(by_alias=True, exclude_none=True)
     template.get("custom_fields")[field_name] = None
@@ -137,6 +137,13 @@ def add_new_custom_field(
     return template
 
 
+def sanitize_field_config(field_config: Dict):
+    # If any of the already existing keys are in field_config, remove them
+    for key in ["name", "field_type", "value", "required", "placeholder", "display_name", "advanced", "show"]:
+        field_config.pop(key, None)
+    return field_config
+
+
 # TODO: Move to correct place
 def add_code_field(template, raw_code, field_config):
     # Field with the Python code to allow update
@@ -224,7 +231,10 @@ def build_field_config(
     try:
         build_config: Dict = custom_class(user_id=user_id).build_config()
 
-        for field_name, field_dict in build_config.items():
+        for field_name, field in build_config.items():
+            # Allow user to build TemplateField as well
+            # as a dict with the same keys as TemplateField
+            field_dict = get_field_dict(field)
             if update_field is not None and field_name != update_field:
                 continue
             try:
@@ -246,6 +256,13 @@ def build_field_config(
         ) from exc
 
 
+def get_field_dict(field):
+    """Get the field dictionary from a TemplateField or a dict"""
+    if isinstance(field, TemplateField):
+        return field.model_dump(by_alias=True, exclude_none=True)
+    return field
+
+
 def update_field_dict(field_dict):
     """Update the field dictionary by calling options() or value() if they are callable"""
     if "options" in field_dict and callable(field_dict["options"]):
diff --git a/src/backend/langflow/template/field/base.py b/src/backend/langflow/template/field/base.py
index c8e1235cc..7571f5209 100644
--- a/src/backend/langflow/template/field/base.py
+++ b/src/backend/langflow/template/field/base.py
@@ -1,4 +1,5 @@
-from typing import Any, Optional
+from abc import ABC
+from typing import Any, Callable, Optional, Union
 
 from pydantic import BaseModel, ConfigDict, Field, field_serializer
 
@@ -37,7 +38,7 @@ class TemplateField(BaseModel):
     password: bool = False
     """Specifies if the field is a password. Defaults to False."""
 
-    options: Optional[list[str]] = None
+    options: Union[list[str], Callable] = []
     """List of options for the field. Only used when is_list=True. Default is an empty list."""
 
     name: str = ""
diff --git a/tests/conftest.py b/tests/conftest.py
index ce279162f..fdc896266 100644
--- a/tests/conftest.py
+++ b/tests/conftest.py
@@ -308,3 +308,11 @@ def test_component_code():
     # load the content as a string
     with open(path, "r") as f:
         return f.read()
+
+
+@pytest.fixture
+def test_component_with_templatefield_code():
+    path = Path(__file__).parent.absolute() / "data" / "component_with_templatefield.py"
+    # load the content as a string
+    with open(path, "r") as f:
+        return f.read()
diff --git a/tests/data/component_with_templatefield.py b/tests/data/component_with_templatefield.py
new file mode 100644
index 000000000..6b2ce011b
--- /dev/null
+++ b/tests/data/component_with_templatefield.py
@@ -0,0 +1,17 @@
+import random
+
+from langflow import CustomComponent
+from langflow.field_typing import TemplateField
+
+
+class TestComponent(CustomComponent):
+    def refresh_values(self):
+        # This is a function that will be called every time the component is updated
+        # and should return a list of random strings
+        return [f"Random {random.randint(1, 100)}" for _ in range(5)]
+
+    def build_config(self):
+        return {"param": TemplateField(display_name="Param", options=self.refresh_values)}
+
+    def build(self, param: int):
+        return param
diff --git a/tests/test_custom_component.py b/tests/test_custom_component.py
index 3be85ddd2..007374763 100644
--- a/tests/test_custom_component.py
+++ b/tests/test_custom_component.py
@@ -549,3 +549,17 @@ def test_build_langchain_template_custom_component_valid_code(test_component_cod
     frontend_node = build_custom_component_template(component, update_field="param")
     new_param_options = frontend_node["template"]["param"]["options"]
     assert param_options != new_param_options
+
+
+def test_build_langchain_template_custom_component_templatefield(test_component_with_templatefield_code):
+    component = create_and_validate_component(test_component_with_templatefield_code)
+    frontend_node = build_custom_component_template(component)
+    assert isinstance(frontend_node, dict)
+    template = frontend_node["template"]
+    assert isinstance(template, dict)
+    assert "param" in template
+    param_options = template["param"]["options"]
+    # Now run it again with an update field
+    frontend_node = build_custom_component_template(component, update_field="param")
+    new_param_options = frontend_node["template"]["param"]["options"]
+    assert param_options != new_param_options