diff --git a/eslint.config.js b/eslint.config.js
index 861eeda1c..4eaaf583b 100644
--- a/eslint.config.js
+++ b/eslint.config.js
@@ -18,6 +18,7 @@ module.exports = runESMImports().then(() => defineConfig([
     },
     files: [
       './eslint.config.js',
+      'tests/**/*.spec.{ts,js}',
       'packages/bruno-app/**/*.{js,jsx,ts}',
       'packages/bruno-app/src/test-utils/mocks/codemirror.js',
       'packages/bruno-cli/**/*.js',
diff --git a/packages/bruno-app/src/utils/url/index.js b/packages/bruno-app/src/utils/url/index.js
index a8ac1b812..bff1ac895 100644
--- a/packages/bruno-app/src/utils/url/index.js
+++ b/packages/bruno-app/src/utils/url/index.js
@@ -32,19 +32,24 @@ export const parsePathParams = (url) => {
     paths = uri.split('/');
   }
 
-  paths = paths.reduce((acc, path) => {
-    if (path !== '' && path[0] === ':') {
-      let name = path.slice(1, path.length);
-      if (name) {
-        let isExist = find(acc, (path) => path.name === name);
-        if (!isExist) {
-          acc.push({ name: path.slice(1, path.length), value: '' });
+  // Enhanced: also match :param inside parentheses and/or quotes
+  const paramRegex = /[:](\w+)/g;
+  const foundParams = new Set();
+  paths.forEach(segment => {
+    let match;
+    while ((match = paramRegex.exec(segment))) {
+      if (match[1]) {
+        // Clean up: remove trailing quotes/parentheses if present
+        let name = match[1].replace(/[')"`]+$/, '');
+        // Remove leading quotes/parentheses if present
+        name = name.replace(/^[('"`]+/, '');
+        if (name && !foundParams.has(name)) {
+          foundParams.add(name);
         }
       }
     }
-    return acc;
-  }, []);
-  return paths;
+  });
+  return Array.from(foundParams).map(name => ({ name, value: '' }));
 };
 
 export const splitOnFirst = (str, char) => {
@@ -79,13 +84,25 @@ export const interpolateUrl = ({ url, variables }) => {
 
 export const interpolateUrlPathParams = (url, params) => {
   const getInterpolatedBasePath = (pathname, params) => {
+    const regex = /[:](\w+)/g;
     return pathname
       .split('/')
       .map((segment) => {
-        if (segment.startsWith(':')) {
-          const pathParamName = segment.slice(1);
-          const pathParam = params.find((p) => p?.name === pathParamName && p?.type === 'path');
-          return pathParam ? pathParam.value : segment;
+
+        if (!segment.startsWith(':')) return segment;
+
+        let match;
+        while ((match = regex.exec(segment))) {
+          if (match[1]) {
+            // Clean up: remove trailing quotes/parentheses if present
+            let name = match[1].replace(/[')"`]+$/, '');
+            // Remove leading quotes/parentheses if present
+            name = name.replace(/^[('"`]+/, '');
+            if (name) {
+              const pathParam = params.find(p => p?.name === name && p?.type === 'path');
+              return pathParam ? pathParam.value : segment;
+            }
+          }
         }
         return segment;
       })
diff --git a/packages/bruno-app/src/utils/url/index.spec.js b/packages/bruno-app/src/utils/url/index.spec.js
index bbcc919c8..ddab88a99 100644
--- a/packages/bruno-app/src/utils/url/index.spec.js
+++ b/packages/bruno-app/src/utils/url/index.spec.js
@@ -43,6 +43,132 @@ describe('Url Utils - parsePathParams', () => {
       { name: 'postId', value: '' }
     ]);
   });
+
+  it('should parse path param inside parentheses and quotes', () => {
+    const params = parsePathParams('https://example.com/ExchangeRates(\':ExchangeRateOID\')');
+    expect(params).toEqual([{ name: 'ExchangeRateOID', value: '' }]);
+  });
+
+  it('should parse path param inside parentheses and no quotes', () => {
+    const params = parsePathParams('https://example.com/ExchangeRates(:ExchangeRateOID)');
+    expect(params).toEqual([{ name: 'ExchangeRateOID', value: '' }]);
+  });
+
+  it('should parse multiple path params inside parentheses', () => {
+    const params = parsePathParams('https://example.com/Exchange(:ExchangeId)/ExchangeRates(:ExchangeRateOID)');
+    expect(params).toEqual([{ name: 'ExchangeId', value: '' }, { name: 'ExchangeRateOID', value: '' }]);
+  });
+
+  it('should parse mix and match of normal and param inside parentheses', () => {
+    const params = parsePathParams('https://example.com/Exchange(:ExchangeId)/:key');
+    expect(params).toEqual([{ name: 'ExchangeId', value: '' }, { name: 'key', value: '' }]);
+  });
+
+  // OData-specific test cases for enhanced path parameter parsing
+  it('should parse OData entity key with single quotes', () => {
+    const params = parsePathParams('https://example.com/odata/Products(\':productId\')');
+    expect(params).toEqual([{ name: 'productId', value: '' }]);
+  });
+
+  it('should parse OData entity key with double quotes', () => {
+    const params = parsePathParams('https://example.com/odata/Products(":productId")');
+    expect(params).toEqual([{ name: 'productId', value: '' }]);
+  });
+
+  it('should parse OData entity key with backticks', () => {
+    const params = parsePathParams('https://example.com/odata/Products(`:productId`)');
+    expect(params).toEqual([{ name: 'productId', value: '' }]);
+  });
+
+  it('should parse OData entity key with parentheses only', () => {
+    const params = parsePathParams('https://example.com/odata/Products(:productId)');
+    expect(params).toEqual([{ name: 'productId', value: '' }]);
+  });
+
+  it('should parse OData composite key with multiple parameters', () => {
+    const params = parsePathParams('https://example.com/odata/Orders(:orderId,ProductId=\':productId\')');
+    expect(params).toEqual([{ name: 'orderId', value: '' }, { name: 'productId', value: '' }]);
+  });
+
+  it('should parse OData navigation property with key', () => {
+    const params = parsePathParams('https://example.com/odata/Orders(:orderId)/Items(\':itemId\')');
+    expect(params).toEqual([{ name: 'orderId', value: '' }, { name: 'itemId', value: '' }]);
+  });
+
+  it('should parse OData function with parameters', () => {
+    const params = parsePathParams('https://example.com/odata/GetProductsByCategory(categoryId=\':categoryId\')');
+    expect(params).toEqual([{ name: 'categoryId', value: '' }]);
+  });
+
+  it('should parse OData action with complex parameters', () => {
+    const params = parsePathParams('https://example.com/odata/Products(\':productId\')/Rate(rating=:rating,comment=\':comment\')');
+    expect(params).toEqual([{ name: 'productId', value: '' }, { name: 'rating', value: '' }, { name: 'comment', value: '' }]);
+  });
+
+  it('should handle OData parameters with special characters in names', () => {
+    const params = parsePathParams('https://example.com/odata/Products(\':product-id\')');
+    expect(params).toEqual([{ name: 'product', value: '' }]);
+  });
+
+  it('should handle OData parameters with underscores in names', () => {
+    const params = parsePathParams('https://example.com/odata/Products(\':product_id\')');
+    expect(params).toEqual([{ name: 'product_id', value: '' }]);
+  });
+
+  it('should handle OData parameters with mixed quote types', () => {
+    const params = parsePathParams('https://example.com/odata/Products(\':productId\')/Categories(":categoryId")');
+    expect(params).toEqual([{ name: 'productId', value: '' }, { name: 'categoryId', value: '' }]);
+  });
+
+  it('should handle OData parameters with nested parentheses', () => {
+    const params = parsePathParams('https://example.com/odata/Products((\':productId\'))');
+    expect(params).toEqual([{ name: 'productId', value: '' }]);
+  });
+
+  it('should handle OData parameters with complex nested structures', () => {
+    const params = parsePathParams('https://example.com/odata/Orders(:orderId)/Items(\':itemId\')/Properties(\':propName\')');
+    expect(params).toEqual([{ name: 'orderId', value: '' }, { name: 'itemId', value: '' }, { name: 'propName', value: '' }]);
+  });
+
+  it('should handle OData parameters with query options in path', () => {
+    const params = parsePathParams('https://example.com/odata/Products(\':productId\')?$expand=Category');
+    expect(params).toEqual([{ name: 'productId', value: '' }]);
+  });
+
+  it('should handle OData parameters with multiple segments and mixed syntax', () => {
+    const params = parsePathParams('https://example.com/odata/Orders(:orderId)/Items(\':itemId\')/Properties(:propName)');
+    expect(params).toEqual([{ name: 'orderId', value: '' }, { name: 'itemId', value: '' }, { name: 'propName', value: '' }]);
+  });
+
+  it('should handle OData parameters with empty string values', () => {
+    const params = parsePathParams('https://example.com/odata/Products(\'\')');
+    expect(params).toEqual([]);
+  });
+
+  it('should handle OData parameters with function calls in parentheses', () => {
+    const params = parsePathParams('https://example.com/odata/Products(GetId(\':productId\'))');
+    expect(params).toEqual([{ name: 'productId', value: '' }]);
+  });
+
+  it('should handle OData parameters with escaped quotes', () => {
+    const params = parsePathParams('https://example.com/odata/Products(\'ABC\'\'123\')');
+    expect(params).toEqual([]);
+  });
+
+  it('should handle OData parameters with spaces in quotes', () => {
+    const params = parsePathParams('https://example.com/odata/Products(\'Product Name With Spaces\')');
+    expect(params).toEqual([]);
+  });
+
+  it('should handle OData parameters with numeric keys', () => {
+    const params = parsePathParams('https://example.com/odata/Products(12345)');
+    expect(params).toEqual([]);
+  });
+
+  it('should handle OData parameters with GUID keys', () => {
+    const params = parsePathParams('https://example.com/odata/Products(\'123e4567-e89b-12d3-a456-426614174000\')');
+    expect(params).toEqual([]);
+  });
 });
 
 describe('Url Utils - splitOnFirst', () => {
diff --git a/packages/bruno-cli/src/runner/interpolate-vars.js b/packages/bruno-cli/src/runner/interpolate-vars.js
index 7ec7041b5..83b9e0881 100644
--- a/packages/bruno-cli/src/runner/interpolate-vars.js
+++ b/packages/bruno-cli/src/runner/interpolate-vars.js
@@ -115,16 +115,21 @@ const interpolateVars = (request, envVariables = {}, runtimeVariables = {}, proc
       throw { message: 'Invalid URL format', originalError: e.message };
     }
 
+    const paramRegex = /[:](\w+)/g;
     const interpolatedUrlPath = url.pathname
       .split('/')
       .filter((path) => path !== '')
       .map((path) => {
-        if (path[0] !== ':') {
-          return '/' + path;
+        const matches = path.match(paramRegex);
+        if (matches) {
+          const paramName = matches[0].slice(1); // Remove the : prefix
+          const existingPathParam = request.pathParams.find(param => param.name === paramName);
+          if (!existingPathParam) {
+            return '/' + path;
+          }
+          return '/' + path.replace(':' + paramName, existingPathParam.value);
         } else {
-          const name = path.slice(1);
-          const existingPathParam = request?.pathParams?.find((param) => param.type === 'path' && param.name === name);
-          return existingPathParam ? '/' + existingPathParam.value : '';
+          return '/' + path;
         }
       })
       .join('');
diff --git a/packages/bruno-electron/src/ipc/network/interpolate-vars.js b/packages/bruno-electron/src/ipc/network/interpolate-vars.js
index 0aff18f19..a3b869156 100644
--- a/packages/bruno-electron/src/ipc/network/interpolate-vars.js
+++ b/packages/bruno-electron/src/ipc/network/interpolate-vars.js
@@ -91,15 +91,15 @@ const interpolateVars = (request, envVariables = {}, runtimeVariables = {}, proc
       if (typeof request.data === 'string') {
         if (request.data.length) {
           request.data = _interpolate(request.data, {
-          escapeJSONStrings: true
-        });
+            escapeJSONStrings: true,
+          });
         }
       } else if (typeof request.data === 'object') {
         try {
           const jsonDoc = JSON.stringify(request.data);
           const parsed = _interpolate(jsonDoc, {
-          escapeJSONStrings: true
-        });
+            escapeJSONStrings: true,
+          });
           request.data = JSON.parse(parsed);
         } catch (err) {}
       }
@@ -142,16 +142,21 @@ const interpolateVars = (request, envVariables = {}, runtimeVariables = {}, proc
       throw { message: 'Invalid URL format', originalError: e.message };
     }
 
+    const paramRegex = /[:](\w+)/g;
     const urlPathnameInterpolatedWithPathParams = url.pathname
       .split('/')
       .filter((path) => path !== '')
       .map((path) => {
-        if (path[0] !== ':') {
-          return '/' + path;
+        const matches = path.match(paramRegex);
+        if (matches) {
+          const paramName = matches[0].slice(1); // Remove the : prefix
+          const existingPathParam = request.pathParams.find(param => param.name === paramName);
+          if (!existingPathParam) {
+            return '/' + path;
+          }
+          return '/' + path.replace(':' + paramName, existingPathParam.value);
         } else {
-          const name = path.slice(1);
-          const existingPathParam = request.pathParams.find((param) => param.type === 'path' && param.name === name);
-          return existingPathParam ? '/' + existingPathParam.value : '';
+          return '/' + path;
         }
       })
       .join('');
diff --git a/packages/bruno-electron/tests/network/interpolate-vars.spec.js b/packages/bruno-electron/tests/network/interpolate-vars.spec.js
index 88abdd811..0c1e4f178 100644
--- a/packages/bruno-electron/tests/network/interpolate-vars.spec.js
+++ b/packages/bruno-electron/tests/network/interpolate-vars.spec.js
@@ -154,6 +154,33 @@ describe('interpolate-vars: interpolateVars', () => {
         const result = interpolateVars(request, null, null, null);
         expect(result.url).toBe('http://example.com/foobar');
       });
+
+      it('updates the path with odata style params | smoke', async () => {
+        const request = {
+          method: 'GET',
+          url: 'http://example.com/Category(\':CategoryID\')/Item(:ItemId)/:xpath/Tags("tag test")',
+          pathParams: [
+            {
+              type: 'path',
+              name: 'CategoryID',
+              value: 'foobar',
+            },
+            {
+              type: 'path',
+              name: 'ItemId',
+              value: 1,
+            },
+            {
+              type: 'path',
+              name: 'xpath',
+              value: 'foobar',
+            },
+          ],
+        };
+
+        const result = interpolateVars(request, null, null, null);
+        expect(result.url).toBe('http://example.com/Category(\'foobar\')/Item(1)/foobar/Tags(%22tag%20test%22)');
+      });
     });
 
     describe('With process environment variables', () => {
diff --git a/packages/bruno-tests/src/echo/index.js b/packages/bruno-tests/src/echo/index.js
index 00b50bd36..a9425b305 100644
--- a/packages/bruno-tests/src/echo/index.js
+++ b/packages/bruno-tests/src/echo/index.js
@@ -1,6 +1,10 @@
 const express = require('express');
 const router = express.Router();
 
+router.get('/path/*', (req, res) => {
+  return res.json({ url: req.url });
+});
+
 router.post('/json', (req, res) => {
   return res.json(req.body);
 });
diff --git a/tests/interpolation/collection/bruno.json b/tests/interpolation/collection/bruno.json
new file mode 100644
index 000000000..f29e04549
--- /dev/null
+++ b/tests/interpolation/collection/bruno.json
@@ -0,0 +1,9 @@
+{
+  "version": "1",
+  "name": "interpolation",
+  "type": "collection",
+  "ignore": [
+    "node_modules",
+    ".git"
+  ]
+}
\ No newline at end of file
diff --git a/tests/interpolation/collection/echo-request-odata.bru b/tests/interpolation/collection/echo-request-odata.bru
new file mode 100644
index 000000000..f3cb79320
--- /dev/null
+++ b/tests/interpolation/collection/echo-request-odata.bru
@@ -0,0 +1,21 @@
+meta {
+  name: echo-request-odata
+  type: http
+  seq: 2
+}
+
+get {
+  url: http://localhost:8081/api/echo/path/Category(':CategoryID')/Item(:ItemId)/:xpath/Tags("tag test")
+  body: none
+  auth: inherit
+}
+
+params:path {
+  CategoryID: category123
+  ItemId: item456
+  xpath: foobar
+}
+
+settings {
+  encodeUrl: true
+}
diff --git a/tests/interpolation/collection/echo-request-url.bru b/tests/interpolation/collection/echo-request-url.bru
new file mode 100644
index 000000000..3b3b00754
--- /dev/null
+++ b/tests/interpolation/collection/echo-request-url.bru
@@ -0,0 +1,18 @@
+meta {
+  name: echo-request-url
+  type: http
+  seq: 1
+}
+
+get {
+  url: http://localhost:8081/api/echo/path/:path
+  auth: inherit
+}
+
+params:path {
+  path: some-data
+}
+
+settings {
+  encodeUrl: true
+}
diff --git a/tests/interpolation/init-user-data/collection-security.json b/tests/interpolation/init-user-data/collection-security.json
new file mode 100644
index 000000000..9369c1b91
--- /dev/null
+++ b/tests/interpolation/init-user-data/collection-security.json
@@ -0,0 +1,10 @@
+{
+  "collections": [
+    {
+      "path": "{{projectRoot}}/tests/interpolation/collection",
+      "securityConfig": {
+        "jsSandboxMode": "safe"
+      }
+    }
+  ]
+}
\ No newline at end of file
diff --git a/tests/interpolation/init-user-data/preferences.json b/tests/interpolation/init-user-data/preferences.json
new file mode 100644
index 000000000..38f64eadb
--- /dev/null
+++ b/tests/interpolation/init-user-data/preferences.json
@@ -0,0 +1,6 @@
+{
+  "maximized": true,
+  "lastOpenedCollections": [
+    "{{projectRoot}}/tests/interpolation/collection"
+  ]
+}
\ No newline at end of file
diff --git a/tests/interpolation/interpolate-request-url.spec.ts b/tests/interpolation/interpolate-request-url.spec.ts
new file mode 100644
index 000000000..061558a5c
--- /dev/null
+++ b/tests/interpolation/interpolate-request-url.spec.ts
@@ -0,0 +1,24 @@
+import { test, expect } from '../../playwright';
+
+test.describe.serial('URL Interpolation', () => {
+  test('Interpolate basic path params', async ({ pageWithUserData: page }) => {
+    await page.locator('#sidebar-collection-name').click();
+    await page.getByRole('complementary').getByText('echo-request-url').click();
+    await page.getByTestId('send-arrow-icon').click();
+
+    expect(page.getByTestId('response-status-code')).toHaveText(/200/);
+
+    const texts = await page.locator('div:nth-child(2) > .CodeMirror-scroll').allInnerTexts();
+    expect(texts.some(d => d.includes(`"url": "/path/some-data"`))).toBe(true);
+  });
+
+  test('Interpolate oData path params', async ({ pageWithUserData: page }) => {
+    await page.getByRole('complementary').getByText('echo-request-odata').click();
+    await page.getByTestId('send-arrow-icon').click();
+
+    expect(page.getByTestId('response-status-code')).toHaveText(/200/);
+
+    const texts = await page.locator('div:nth-child(2) > .CodeMirror-scroll').allInnerTexts();
+    expect(texts.some(d => d.includes(`"url": "/path/Category('category123')/Item(item456)/foobar/Tags(%22tag%20test%22)"`))).toBe(true);
+  });
+});