diff --git a/src/backend/langflow/api/utils.py b/src/backend/langflow/api/utils.py
index d88d2525f..b7b893dda 100644
--- a/src/backend/langflow/api/utils.py
+++ b/src/backend/langflow/api/utils.py
@@ -1,11 +1,12 @@
+import warnings
 from pathlib import Path
 from typing import TYPE_CHECKING, List
+
 from fastapi import HTTPException
+from platformdirs import user_cache_dir
+
 from langflow.services.store.schema import StoreComponentCreate
 from langflow.services.store.utils import get_lf_version_from_pypi
-import warnings
-
-from platformdirs import user_cache_dir
 
 if TYPE_CHECKING:
     from langflow.services.database.models.flow.model import Flow
@@ -62,7 +63,7 @@ def build_input_keys_response(langchain_object, artifacts):
     return input_keys_response
 
 
-def update_frontend_node_with_template_values(frontend_node, raw_template_data):
+def update_frontend_node_with_template_values(frontend_node, raw_frontend_node):
     """
     Updates the given frontend node with values from the raw template data.
 
@@ -70,19 +71,28 @@ def update_frontend_node_with_template_values(frontend_node, raw_template_data):
     :param raw_template_data: A dict representing raw template data.
     :return: Updated frontend node.
     """
-    if not is_valid_data(frontend_node, raw_template_data):
+    if not is_valid_data(frontend_node, raw_frontend_node):
         return frontend_node
 
-    update_template_values(frontend_node["template"], raw_template_data.template)
+    # Check if the display_name is different than "CustomComponent"
+    # if so, update the display_name in the frontend_node
+    if raw_frontend_node["display_name"] != "CustomComponent":
+        frontend_node["display_name"] = raw_frontend_node["display_name"]
+
+    update_template_values(frontend_node["template"], raw_frontend_node["template"])
 
     return frontend_node
 
 
-def is_valid_data(frontend_node, raw_template_data):
+def raw_frontend_data_is_valid(raw_frontend_data):
+    """Check if the raw frontend data is valid for processing."""
+    return "template" in raw_frontend_data and "display_name" in raw_frontend_data
+
+
+def is_valid_data(frontend_node, raw_frontend_data):
     """Check if the data is valid for processing."""
-    return (
-        frontend_node and "template" in frontend_node and raw_template_data and hasattr(raw_template_data, "template")
-    )
+
+    return frontend_node and "template" in frontend_node and raw_frontend_data_is_valid(raw_frontend_data)
 
 
 def update_template_values(frontend_template, raw_template):
diff --git a/src/backend/langflow/api/v1/endpoints.py b/src/backend/langflow/api/v1/endpoints.py
index d4bb083ef..6ebb04182 100644
--- a/src/backend/langflow/api/v1/endpoints.py
+++ b/src/backend/langflow/api/v1/endpoints.py
@@ -3,6 +3,9 @@ from typing import Annotated, Optional, Union
 
 import sqlalchemy as sa
 from fastapi import APIRouter, Body, Depends, HTTPException, UploadFile, status
+from loguru import logger
+from sqlmodel import select
+
 from langflow.api.utils import update_frontend_node_with_template_values
 from langflow.api.v1.schemas import (
     CustomComponentCode,
@@ -20,8 +23,6 @@ from langflow.services.cache.utils import save_uploaded_file
 from langflow.services.database.models.flow import Flow
 from langflow.services.database.models.user.model import User
 from langflow.services.deps import get_session, get_session_service, get_settings_service, get_task_service
-from loguru import logger
-from sqlmodel import select
 
 try:
     from langflow.worker import process_graph_cached_task
@@ -31,9 +32,10 @@ except ImportError:
         raise NotImplementedError("Celery is not installed")
 
 
-from langflow.services.task.service import TaskService
 from sqlmodel import Session
 
+from langflow.services.task.service import TaskService
+
 # build router
 router = APIRouter(tags=["Base"])
 
@@ -218,7 +220,7 @@ async def custom_component(
 
     built_frontend_node = build_custom_component_template(component, user_id=user.id)
 
-    built_frontend_node = update_frontend_node_with_template_values(built_frontend_node, raw_code)
+    built_frontend_node = update_frontend_node_with_template_values(built_frontend_node, raw_code.frontend_node)
     return built_frontend_node
 
 
diff --git a/src/backend/langflow/api/v1/schemas.py b/src/backend/langflow/api/v1/schemas.py
index 2d3da1d21..8c8c4efd7 100644
--- a/src/backend/langflow/api/v1/schemas.py
+++ b/src/backend/langflow/api/v1/schemas.py
@@ -3,11 +3,12 @@ from pathlib import Path
 from typing import Any, Dict, List, Optional, Union
 from uuid import UUID
 
+from pydantic import BaseModel, Field, field_validator
+
 from langflow.services.database.models.api_key.model import ApiKeyRead
 from langflow.services.database.models.base import orjson_dumps
 from langflow.services.database.models.flow import FlowCreate, FlowRead
 from langflow.services.database.models.user import UserRead
-from pydantic import BaseModel, Field, field_validator
 
 
 class BuildStatus(Enum):
@@ -157,7 +158,7 @@ class StreamData(BaseModel):
 class CustomComponentCode(BaseModel):
     code: str
     field: Optional[str] = None
-    template: Optional[dict] = None
+    frontend_node: Optional[dict] = None
 
 
 class CustomComponentResponseError(BaseModel):