diff --git a/packages/bruno-app/src/components/Sidebar/Collections/Collection/CollectionItem/GenerateCodeItem/utils/interpolation.js b/packages/bruno-app/src/components/Sidebar/Collections/Collection/CollectionItem/GenerateCodeItem/utils/interpolation.js
index ea4f35b69..cc79bf3cb 100644
--- a/packages/bruno-app/src/components/Sidebar/Collections/Collection/CollectionItem/GenerateCodeItem/utils/interpolation.js
+++ b/packages/bruno-app/src/components/Sidebar/Collections/Collection/CollectionItem/GenerateCodeItem/utils/interpolation.js
@@ -1,12 +1,29 @@
-import { interpolate } from '@usebruno/common';
+import { interpolate, interpolateObject } from '@usebruno/common';
 import { cloneDeep } from 'lodash';
 
+export const interpolateAuth = (auth, variables = {}) => {
+  if (!auth) return auth;
+  return interpolateObject(auth, variables);
+};
+
 export const interpolateHeaders = (headers = [], variables = {}) => {
-  return headers.map((header) => ({
-    ...header,
-    name: interpolate(header.name, variables),
-    value: interpolate(header.value, variables)
-  }));
+  if (!headers) return [];
+  return headers.map((header) => {
+    if (header.enabled) {
+      return interpolateObject(header, variables);
+    }
+    return header;
+  });
+};
+
+export const interpolateParams = (params = [], variables = {}) => {
+  if (!params) return [];
+  return params.map((param) => {
+    if (param.enabled) {
+      return interpolateObject(param, variables);
+    }
+    return param;
+  });
 };
 
 export const interpolateBody = (body, variables = {}) => {
diff --git a/packages/bruno-app/src/components/Sidebar/Collections/Collection/CollectionItem/GenerateCodeItem/utils/interpolation.spec.js b/packages/bruno-app/src/components/Sidebar/Collections/Collection/CollectionItem/GenerateCodeItem/utils/interpolation.spec.js
index b174bf380..212e6b68f 100644
--- a/packages/bruno-app/src/components/Sidebar/Collections/Collection/CollectionItem/GenerateCodeItem/utils/interpolation.spec.js
+++ b/packages/bruno-app/src/components/Sidebar/Collections/Collection/CollectionItem/GenerateCodeItem/utils/interpolation.spec.js
@@ -1,48 +1,139 @@
-import { interpolateHeaders, interpolateBody } from './interpolation';
+import { interpolateAuth, interpolateHeaders, interpolateBody, interpolateParams } from './interpolation';
 
 describe('interpolation utils', () => {
+  describe('interpolateAuth', () => {
+    it('should interpolate auth object', () => {
+      const auth = {
+        mode: 'basic',
+        basic: {
+          username: '{{user}}',
+          password: '{{pass}}'
+        }
+      };
+      const variables = { user: 'admin', pass: 'secret' };
+
+      const result = interpolateAuth(auth, variables);
+
+      expect(result).toEqual({
+        mode: 'basic',
+        basic: {
+          username: 'admin',
+          password: 'secret'
+        }
+      });
+    });
+
+    it('should return null for null auth', () => {
+      expect(interpolateAuth(null, {})).toBeNull();
+    });
+
+    it('should return undefined for undefined auth', () => {
+      expect(interpolateAuth(undefined, {})).toBeUndefined();
+    });
+  });
+
   describe('interpolateHeaders', () => {
-    it('should interpolate variables in header name and value while preserving other props', () => {
+    it('should interpolate header names and values', () => {
       const headers = [
-        { uid: '1', name: 'X-{{var}}', value: 'value-{{var}}', enabled: true }
+        { name: 'X-{{headerName}}', value: '{{headerValue}}', enabled: true },
+        { name: 'Content-Type', value: 'application/json', enabled: true }
       ];
-      const variables = { var: 'test' };
+      const variables = { headerName: 'Custom', headerValue: 'test-value' };
 
       const result = interpolateHeaders(headers, variables);
+
       expect(result).toEqual([
-        {
-          uid: '1',
-          name: 'X-test',
-          value: 'value-test',
-          enabled: true
-        }
+        { name: 'X-Custom', value: 'test-value', enabled: true },
+        { name: 'Content-Type', value: 'application/json', enabled: true }
       ]);
     });
+
+    it('should return empty array for empty headers', () => {
+      expect(interpolateHeaders([], {})).toEqual([]);
+    });
   });
 
   describe('interpolateBody', () => {
-    it('should interpolate JSON body strings and keep formatting', () => {
+    it('should return null for null body', () => {
+      expect(interpolateBody(null, {})).toBeNull();
+    });
+
+    it('should interpolate JSON body with escaping', () => {
       const body = {
         mode: 'json',
-        json: '{"name": "{{username}}"}'
+        json: '{"name": "{{name}}", "count": {{count}}}'
       };
-      const variables = { username: 'bruno' };
+      const variables = { name: 'Test', count: 42 };
 
       const result = interpolateBody(body, variables);
-      expect(result.json).toBe('{\n  "name": "bruno"\n}');
+
+      expect(result.mode).toBe('json');
+      expect(JSON.parse(result.json)).toEqual({ name: 'Test', count: 42 });
     });
 
     it('should interpolate text body', () => {
-      const body = {
-        mode: 'text',
-        text: 'Hello {{name}}'
-      };
+      const body = { mode: 'text', text: 'Hello {{name}}' };
       const result = interpolateBody(body, { name: 'World' });
       expect(result.text).toBe('Hello World');
     });
 
-    it('should return null when body is null', () => {
-      expect(interpolateBody(null, { a: 1 })).toBeNull();
+    it('should interpolate xml body', () => {
+      const body = { mode: 'xml', xml: '<user>{{name}}</user>' };
+      const result = interpolateBody(body, { name: 'Alice' });
+      expect(result.xml).toBe('<user>Alice</user>');
+    });
+
+    it('should interpolate formUrlEncoded body for enabled params only', () => {
+      const body = {
+        mode: 'formUrlEncoded',
+        formUrlEncoded: [
+          { name: 'key1', value: '{{val1}}', enabled: true },
+          { name: 'key2', value: '{{val2}}', enabled: false }
+        ]
+      };
+      const variables = { val1: 'value1', val2: 'value2' };
+
+      const result = interpolateBody(body, variables);
+
+      expect(result.formUrlEncoded[0].value).toBe('value1');
+      expect(result.formUrlEncoded[1].value).toBe('{{val2}}');
+    });
+
+    it('should interpolate multipartForm body for enabled text params only', () => {
+      const body = {
+        mode: 'multipartForm',
+        multipartForm: [
+          { name: 'field1', value: '{{val}}', type: 'text', enabled: true },
+          { name: 'field2', value: '{{val}}', type: 'file', enabled: true }
+        ]
+      };
+      const variables = { val: 'interpolated' };
+
+      const result = interpolateBody(body, variables);
+
+      expect(result.multipartForm[0].value).toBe('interpolated');
+      expect(result.multipartForm[1].value).toBe('{{val}}');
+    });
+  });
+
+  describe('interpolateParams', () => {
+    it('should interpolate param names and values', () => {
+      const params = [
+        { name: '{{paramName}}', value: '{{paramValue}}', enabled: true },
+        { name: 'static', value: '{{val}}', enabled: false }
+      ];
+      const variables = { paramName: 'key', paramValue: 'value', val: 'skipped' };
+
+      const result = interpolateParams(params, variables);
+
+      expect(result[0].name).toBe('key');
+      expect(result[0].value).toBe('value');
+      expect(result[1].name).toBe('static');
+      expect(result[1].value).toBe('{{val}}');
+    });
+
+    it('should return empty array for empty params', () => {
+      expect(interpolateParams([], {})).toEqual([]);
     });
   });
 });
diff --git a/packages/bruno-app/src/components/Sidebar/Collections/Collection/CollectionItem/GenerateCodeItem/utils/snippet-generator.js b/packages/bruno-app/src/components/Sidebar/Collections/Collection/CollectionItem/GenerateCodeItem/utils/snippet-generator.js
index f52faf118..b7a573baf 100644
--- a/packages/bruno-app/src/components/Sidebar/Collections/Collection/CollectionItem/GenerateCodeItem/utils/snippet-generator.js
+++ b/packages/bruno-app/src/components/Sidebar/Collections/Collection/CollectionItem/GenerateCodeItem/utils/snippet-generator.js
@@ -1,8 +1,7 @@
 import { buildHarRequest } from 'utils/codegenerator/har';
 import { getAuthHeaders } from 'utils/codegenerator/auth';
 import { getAllVariables, getTreePathFromCollectionToItem, mergeHeaders } from 'utils/collections/index';
-import { interpolateHeaders, interpolateBody } from './interpolation';
-import { get } from 'lodash';
+import { interpolateAuth, interpolateHeaders, interpolateBody, interpolateParams } from './interpolation';
 
 const generateSnippet = ({ language, item, collection, shouldInterpolate = false }) => {
   try {
@@ -10,26 +9,27 @@ const generateSnippet = ({ language, item, collection, shouldInterpolate = false
     const { HTTPSnippet } = require('httpsnippet');
 
     const variables = getAllVariables(collection, item);
-
     const request = item.request;
 
     // Get the request tree path and merge headers
     const requestTreePath = getTreePathFromCollectionToItem(collection, item);
     let headers = mergeHeaders(collection, request, requestTreePath);
 
-    // Add auth headers if needed
+    // Add auth headers if needed (auth inheritance is resolved upstream)
     if (request.auth && request.auth.mode !== 'none') {
-      const collectionAuth = collection?.draft?.root ? get(collection, 'draft.root.request.auth', null) : get(collection, 'root.request.auth', null);
-      const authHeaders = getAuthHeaders(collectionAuth, request.auth, collection, item);
+      if (shouldInterpolate) {
+        request.auth = interpolateAuth(request.auth, variables);
+      }
+
+      const authHeaders = getAuthHeaders(request.auth, collection, item);
       headers = [...headers, ...authHeaders];
     }
 
-    // Interpolate headers and body if needed
+    // Interpolate headers, body and params if needed
     if (shouldInterpolate) {
       headers = interpolateHeaders(headers, variables);
-      if (request.body) {
-        request.body = interpolateBody(request.body, variables);
-      }
+      request.body = interpolateBody(request.body, variables);
+      request.params = interpolateParams(request.params, variables);
     }
 
     // Build HAR request
diff --git a/packages/bruno-app/src/components/Sidebar/Collections/Collection/CollectionItem/GenerateCodeItem/utils/snippet-generator.spec.js b/packages/bruno-app/src/components/Sidebar/Collections/Collection/CollectionItem/GenerateCodeItem/utils/snippet-generator.spec.js
index 0946ce2bc..3c7e2c5ef 100644
--- a/packages/bruno-app/src/components/Sidebar/Collections/Collection/CollectionItem/GenerateCodeItem/utils/snippet-generator.spec.js
+++ b/packages/bruno-app/src/components/Sidebar/Collections/Collection/CollectionItem/GenerateCodeItem/utils/snippet-generator.spec.js
@@ -1,3 +1,5 @@
+import { getAuthHeaders } from 'utils/codegenerator/auth';
+
 jest.mock('httpsnippet', () => {
   return {
     HTTPSnippet: jest.fn().mockImplementation((harRequest) => ({
@@ -56,7 +58,9 @@ jest.mock('utils/collections/index', () => {
       ...collection?.processEnvVariables,
       baseUrl: 'https://api.example.com',
       apiKey: 'secret-key-123',
-      userId: '12345'
+      userId: '12345',
+      user: 'admin',
+      pass: 'secret123'
     })),
     getTreePathFromCollectionToItem: jest.fn(() => [])
   };
@@ -426,6 +430,55 @@ describe('Snippet Generator - Simple Tests', () => {
 
     expect(result).toBe('curl -X POST https://api.test.com/{{endpoint}} -H "Content-Type: application/json" -d \'{"name": "{{userName}}", "email": "{{userEmail}}", "age": {{userAge}}}\'');
   });
+
+  it('should interpolate auth credentials correctly', () => {
+    // Auth inheritance is resolved upstream in index.js before calling generateSnippet
+    // So the item already has the resolved auth (not 'inherit' mode)
+    const item = {
+      request: {
+        method: 'GET',
+        url: 'https://api.example.com',
+        auth: {
+          mode: 'basic',
+          basic: {
+            username: '{{user}}',
+            password: '{{pass}}'
+          }
+        }
+      }
+    };
+
+    const collection = {
+      root: {
+        request: {
+          auth: { mode: 'none' }
+        }
+      }
+    };
+
+    const { HTTPSnippet: mockedHTTPSnippet } = require('httpsnippet');
+    const { getAuthHeaders: actualGetAuthHeaders } = jest.requireActual('utils/codegenerator/auth');
+    getAuthHeaders.mockImplementation(actualGetAuthHeaders);
+
+    const language = { target: 'shell', client: 'curl' };
+
+    generateSnippet({
+      language,
+      item,
+      collection,
+      shouldInterpolate: true
+    });
+
+    const harRequest = mockedHTTPSnippet.mock.calls[0][0];
+
+    // "admin:secret123" encoded is "YWRtaW46c2VjcmV0MTIz"
+    expect(harRequest.headers).toContainEqual(
+      expect.objectContaining({
+        name: 'Authorization',
+        value: 'Basic YWRtaW46c2VjcmV0MTIz'
+      })
+    );
+  });
 });
 
 // Snippet should include inherited headers
@@ -563,7 +616,7 @@ describe('generateSnippet with OAuth2 authentication', () => {
     jest.clearAllMocks();
     // Mock getAuthHeaders to return OAuth2 headers based on the auth config
     const authUtils = require('utils/codegenerator/auth');
-    authUtils.getAuthHeaders.mockImplementation((collectionRootAuth, requestAuth, collection = null, item = null) => {
+    authUtils.getAuthHeaders.mockImplementation((requestAuth, collection = null, item = null) => {
       if (requestAuth?.mode === 'oauth2') {
         const oauth2Config = requestAuth.oauth2 || {};
         const tokenPlacement = oauth2Config.tokenPlacement || 'header';
diff --git a/packages/bruno-app/src/utils/codegenerator/auth.js b/packages/bruno-app/src/utils/codegenerator/auth.js
index eefb82cfe..51da6d3c9 100644
--- a/packages/bruno-app/src/utils/codegenerator/auth.js
+++ b/packages/bruno-app/src/utils/codegenerator/auth.js
@@ -3,21 +3,16 @@ import { find } from 'lodash';
 import { interpolate } from '@usebruno/common';
 import { getAllVariables } from 'utils/collections/index';
 
-export const getAuthHeaders = (collectionRootAuth, requestAuth, collection = null, item = null) => {
-  // Discovered edge case where code generation fails when you create a collection which has not been saved yet:
-  // Collection auth therefore null, and request inherits from collection, therefore it is also null
-  // TypeError: Cannot read properties of undefined (reading 'mode')
-  //     at getAuthHeaders
-  if (!collectionRootAuth && !requestAuth) {
+export const getAuthHeaders = (requestAuth, collection = null, item = null) => {
+  // Auth inheritance is resolved upstream, so requestAuth should never have mode 'inherit'
+  if (!requestAuth) {
     return [];
   }
 
-  const auth = collectionRootAuth && ['inherit'].includes(requestAuth?.mode) ? collectionRootAuth : requestAuth;
-
-  switch (auth.mode) {
+  switch (requestAuth.mode) {
     case 'basic':
-      const username = get(auth, 'basic.username', '');
-      const password = get(auth, 'basic.password', '');
+      const username = get(requestAuth, 'basic.username', '');
+      const password = get(requestAuth, 'basic.password', '');
       const basicToken = Buffer.from(`${username}:${password}`).toString('base64');
 
       return [
@@ -32,11 +27,11 @@ export const getAuthHeaders = (collectionRootAuth, requestAuth, collection = nul
         {
           enabled: true,
           name: 'Authorization',
-          value: `Bearer ${get(auth, 'bearer.token', '')}`
+          value: `Bearer ${get(requestAuth, 'bearer.token', '')}`
         }
       ];
     case 'apikey':
-      const apiKeyAuth = get(auth, 'apikey', {});
+      const apiKeyAuth = get(requestAuth, 'apikey', {});
       const key = get(apiKeyAuth, 'key', '');
       const value = get(apiKeyAuth, 'value', '');
       const placement = get(apiKeyAuth, 'placement', 'header');
@@ -52,7 +47,7 @@ export const getAuthHeaders = (collectionRootAuth, requestAuth, collection = nul
       }
       return [];
     case 'oauth2': {
-      const oauth2Config = get(auth, 'oauth2', {});
+      const oauth2Config = get(requestAuth, 'oauth2', {});
       const tokenPlacement = get(oauth2Config, 'tokenPlacement', 'header');
       const tokenHeaderPrefix = get(oauth2Config, 'tokenHeaderPrefix', 'Bearer');