diff --git a/agents-api/agents_api/common/protocol/sessions.py b/agents-api/agents_api/common/protocol/sessions.py
index f12ff8108..121afe702 100644
--- a/agents-api/agents_api/common/protocol/sessions.py
+++ b/agents-api/agents_api/common/protocol/sessions.py
@@ -116,6 +116,7 @@ def get_chat_environment(self) -> dict[str, dict | list[dict]]:
             "session": self.session.model_dump(),
             "agents": [agent.model_dump() for agent in self.agents],
             "current_agent": current_agent.model_dump(),
+            "agent": current_agent.model_dump(),
             "users": [user.model_dump() for user in self.users],
             "settings": settings,
             "tools": [tool.model_dump() for tool in tools],
diff --git a/agents-api/agents_api/routers/sessions/chat.py b/agents-api/agents_api/routers/sessions/chat.py
index e391fc716..90e397a9d 100644
--- a/agents-api/agents_api/routers/sessions/chat.py
+++ b/agents-api/agents_api/routers/sessions/chat.py
@@ -46,12 +46,9 @@ async def chat(
     # Merge the settings and prepare environment
     chat_context.merge_settings(chat_input)
     settings: dict = chat_context.settings.model_dump()
-    env: dict = chat_context.get_chat_environment()
     settings["model"] = f"openai/{settings['model']}"  # litellm proxy idiosyncracy
-    
-    # Render the messages
-    new_raw_messages = [msg.model_dump() for msg in chat_input.messages]
 
+    # Get the past messages and doc references
     past_messages, doc_references = await gather_messages(
         developer=developer,
         session_id=session_id,
@@ -59,8 +56,31 @@ async def chat(
         chat_input=chat_input,
     )
 
+    # Prepare the environment
+    env: dict = chat_context.get_chat_environment()
     env["docs"] = doc_references
-    new_messages = await render_template(new_raw_messages, variables=env)
+
+    # Render the system message
+    if situation := chat_context.session.situation:
+        system_message = dict(
+            role="system",
+            content=situation,
+        )
+
+        system_messages: list[dict] = await render_template(
+            [system_message], variables=env
+        )
+        past_messages = system_messages + past_messages
+
+    # Render the incoming messages
+    new_raw_messages = [msg.model_dump() for msg in chat_input.messages]
+
+    if chat_context.session.render_templates:
+        new_messages = await render_template(new_raw_messages, variables=env)
+    else:
+        new_messages = new_raw_messages
+
+    # Combine the past messages with the new messages
     messages = past_messages + new_messages
 
     # Get the tools
@@ -74,15 +94,17 @@ async def chat(
 
     # FIXME: Hotfix for datetime not serializable. Needs investigation
     messages = [
-        msg.model_dump() if hasattr(msg, "model_dump") else msg
-        for msg in messages
+        msg.model_dump() if hasattr(msg, "model_dump") else msg for msg in messages
     ]
 
     messages = [
-        dict(role=m["role"], content=m["content"], user=m.get("user"))
-        for m in messages
+        dict(role=m["role"], content=m["content"], user=m.get("user")) for m in messages
     ]
 
+    from pprint import pprint
+
+    pprint(messages)
+
     # Get the response from the model
     model_response = await litellm.acompletion(
         messages=messages,
@@ -104,7 +126,9 @@ async def chat(
         # Add the response to the new entries
         new_entries.append(
             CreateEntryRequest.from_model_input(
-                model=settings["model"], **model_response.choices[0].model_dump()['message'], source="api_response"
+                model=settings["model"],
+                **model_response.choices[0].model_dump()["message"],
+                source="api_response",
             )
         )
         background_tasks.add_task(