diff --git a/backend/app/api/endpoints/session_suggested_fixes.py b/backend/app/api/endpoints/session_suggested_fixes.py
index 9243ad5d..d18b8f18 100644
--- a/backend/app/api/endpoints/session_suggested_fixes.py
+++ b/backend/app/api/endpoints/session_suggested_fixes.py
@@ -32,6 +32,8 @@ from app.schemas.session_suggested_fix import (
     SessionSuggestedFixDecisionResponse,
     SessionSuggestedFixResponse,
 )
+from app.models.draft_template import DraftTemplate
+from app.models.session_fact import SessionFact
 from app.services.escalation_package_generator import EscalationPackageGeneratorService
 from app.services.preview_cache import preview_cache
 from app.services.psa_writeback_service import (
@@ -39,6 +41,7 @@ from app.services.psa_writeback_service import (
     PSAWritebackService,
 )
 from app.services.resolution_note_generator import ResolutionNoteGeneratorService
+from app.services.template_extraction_service import extract_parameters as _extract_template_parameters
 
 logger = logging.getLogger(__name__)
 
@@ -105,12 +108,13 @@ async def record_decision(
 ) -> SessionSuggestedFixDecisionResponse:
     """Record the engineer's path choice on a suggested fix.
 
-    Phase 3 only persists the decision and (for `dismissed`) supersedes the
-    row. Side effects — script generation for `one_off` / `draft_template`,
-    redirect for `build_template` — land in Phase 5 alongside the inline
-    Script Generator integration. The response shape is forward-compatible.
+    Phase 3 recorded the choice and (for `dismissed`) superseded the fix.
+    Phase 5 adds side effects: one_off / draft_template return the rendered
+    script; draft_template also creates a `draft_templates` row via the
+    TemplateExtractionService; build_template returns a redirect to the
+    Script Builder.
     """
-    await _load_session_or_404(db, session_id)
+    session_obj = await _load_session_or_404(db, session_id)
 
     result = await db.execute(
         select(SessionSuggestedFix).where(
@@ -145,15 +149,97 @@ async def record_decision(
         .where(AISession.id == session_id)
         .values(state_version=AISession.state_version + 1)
     )
+
+    rendered_script: str | None = None
+    draft_template_id: UUID | None = None
+    redirect_path: str | None = None
+
+    # Phase 5 side effects. All three non-dismiss paths assume the fix has
+    # either a script_template_id (template match — use the dedicated
+    # /scripts/generate endpoint from the frontend, not this one) or an
+    # ai_drafted_script (custom script — this is the entry point).
+    if body.decision in ("one_off", "draft_template", "build_template"):
+        drafted = body.edited_script or fix.ai_drafted_script
+        if not drafted:
+            # Template-matched fixes take the regular /scripts/generate path.
+            # If a fix somehow reaches here without a drafted script AND
+            # without a template, that's a client-side wiring bug.
+            raise HTTPException(
+                status_code=status.HTTP_400_BAD_REQUEST,
+                detail=(
+                    "Suggested fix has no ai_drafted_script — use "
+                    "/api/v1/scripts/generate for template-matched fixes."
+                ),
+            )
+        rendered_script = drafted.strip()
+
+    if body.decision == "draft_template":
+        # TemplateExtractionService proposes the parameterization. Runs
+        # under the same transaction so a failure rolls back the decision.
+        session_ctx = await _summarize_session_for_extraction(db, session_id)
+        extraction = await _extract_template_parameters(
+            script_body=rendered_script or "",
+            session_context=session_ctx,
+            ticket_context=None,  # ticket context wiring lands in Phase 5 polish
+        )
+
+        draft = DraftTemplate(
+            account_id=session_obj.account_id,
+            source_session_id=session_obj.id,
+            source_user_id=current_user.id,
+            script_body=extraction["templated_body"] or (rendered_script or ""),
+            proposed_parameters={"parameters": extraction["parameters"]},
+            proposed_name=fix.title[:200] if fix.title else None,
+            status="pending",
+        )
+        db.add(draft)
+        await db.flush()
+        draft_template_id = draft.id
+
+    if body.decision == "build_template":
+        # Frontend navigates to the Script Builder preloaded with the
+        # drafted body. The builder wires the full parameterization flow;
+        # we hand it a scratch-pad query string, not persistent state.
+        redirect_path = (
+            f"/scripts/builder?from_session={session_obj.id}&fix={fix.id}"
+        )
+
     await db.commit()
     await db.refresh(fix)
 
     return SessionSuggestedFixDecisionResponse(
         id=fix.id,
         user_decision=fix.user_decision,  # type: ignore[arg-type]
+        rendered_script=rendered_script,
+        draft_template_id=draft_template_id,
+        redirect_path=redirect_path,
     )
 
 
+async def _summarize_session_for_extraction(
+    db: AsyncSession, session_id: UUID,
+) -> str:
+    """Compact fact list for TemplateExtractionService context.
+
+    We don't send the full chat transcript — the extractor only needs enough
+    signal to decide which values in the script are session-specific (and
+    therefore worth parameterizing).
+    """
+    result = await db.execute(
+        select(SessionFact)
+        .where(
+            SessionFact.session_id == session_id,
+            SessionFact.deleted_at.is_(None),
+        )
+        .order_by(SessionFact.created_at.asc())
+    )
+    facts = list(result.scalars().all())
+    if not facts:
+        return ""
+    lines = [f"- {f.text}" for f in facts]
+    return "\n".join(lines)
+
+
 # ── Resolution note preview ────────────────────────────────────────────────
 
 @router.post(
diff --git a/backend/app/core/config.py b/backend/app/core/config.py
index be180b97..0363bf8e 100644
--- a/backend/app/core/config.py
+++ b/backend/app/core/config.py
@@ -142,6 +142,10 @@ class Settings(BaseSettings):
         # FlowPilot migration Phase 4 — escalation handoff package. Parallel
         # to resolution_note: Sonnet, same cache story, no MCP.
         "escalation_package": "standard",
+        # FlowPilot migration Phase 5 — extract a parameter schema from a
+        # concrete rendered script so a draft_template can be proposed.
+        # Creates a persistent library artifact on accept, so Sonnet.
+        "template_extraction": "standard",
     }
 
     def get_model_for_action(self, action_type: str) -> str:
diff --git a/backend/app/schemas/session_suggested_fix.py b/backend/app/schemas/session_suggested_fix.py
index afc315e9..df55fc1f 100644
--- a/backend/app/schemas/session_suggested_fix.py
+++ b/backend/app/schemas/session_suggested_fix.py
@@ -33,21 +33,38 @@ class SessionSuggestedFixDecisionRequest(BaseModel):
     """Engineer's path choice on a suggested fix.
 
     Server-side side effects per Section 5.2:
-    - one_off: render the script (Phase 5), no template created.
-    - draft_template: render + queue a draft_templates row (Phase 5/6).
-    - build_template: redirect to full template creation (Phase 5).
-    - dismissed: mark the fix superseded so a fresh suggestion can take over.
+    - one_off: record decision, return the rendered (AI-drafted or
+      engineer-edited) script. No persistent library artifact created.
+    - draft_template: same as one_off, plus TemplateExtractionService
+      proposes a parameterization and a draft_templates row is created.
+    - build_template: return a redirect payload pointing at the Script
+      Builder page, pre-loaded with the drafted script body.
+    - dismissed: mark the fix superseded.
+
+    For one_off / draft_template, the engineer may have edited the drafted
+    script or its parameters in the dialog. The final versions are sent
+    back here so we persist what will actually run.
     """
     decision: UserDecision
+    # Present for one_off / draft_template — the engineer's final version of
+    # the drafted script after any inline edits. Omit to use the fix's
+    # `ai_drafted_script` verbatim.
+    edited_script: str | None = Field(None, min_length=1, max_length=50_000)
+    # Parameter values used when rendering (informational, stored on the
+    # draft_template row so a reviewer can see what the first run used).
+    parameters_used: dict[str, Any] | None = None
 
 
 class SessionSuggestedFixDecisionResponse(BaseModel):
-    """Returned after recording a decision; richer payloads land in Phase 5."""
+    """Returned after recording a decision."""
     id: UUID
     user_decision: UserDecision
-    # Set when the decision triggered side effects (e.g. a script generation).
-    # Phase 3 only records the choice; this stays None until Phase 5 wires it.
+    # Populated for one_off / draft_template — the script to display/run.
     rendered_script: str | None = None
+    # Populated for draft_template — the ID of the draft_templates row so
+    # the post-resolve TemplatizePrompt can fetch it in Phase 6.
+    draft_template_id: UUID | None = None
+    # Populated for build_template — where to send the engineer next.
     redirect_path: str | None = Field(
         None,
         description="Where to send the engineer next (e.g. /scripts/builder?... for build_template)",
diff --git a/backend/app/services/template_extraction_service.py b/backend/app/services/template_extraction_service.py
new file mode 100644
index 00000000..0f90ca06
--- /dev/null
+++ b/backend/app/services/template_extraction_service.py
@@ -0,0 +1,201 @@
+"""TemplateExtractionService — propose a parameter schema from a rendered script.
+
+Phase 5 of the FlowPilot migration. Called when an engineer chooses
+"Run now, templatize after resolve" on a suggested fix with no existing
+library match. The service looks at the concrete script (with the values
+the engineer is about to run with) and session/ticket context, then
+proposes a parameterization that future engineers could use from the
+Script Library.
+
+Design choices (per FLOWPILOT-MIGRATION.md Section 6.4):
+
+- **Conservative by default.** Prefer fewer parameters. Environment-agnostic
+  values (like a command name) should not be parameterized. The prompt calls
+  that out explicitly.
+- **Round-trip check.** After the LLM proposes parameters, we validate that
+  the templated body renders back to the original script when given the
+  extracted parameter values. Failures log a warning and the caller falls
+  back to a single-parameter "raw script" proposal.
+- **Model:** Sonnet (`template_extraction` tier). Creates a persistent
+  library artifact — quality matters more than latency.
+
+Output shape mirrors the Script Generator's parameter schema:
+    {
+      "parameters": [
+        {"key": "<snake>", "label": "<human>", "type": "text|password|select|...",
+         "inferred_from": "<session fact / ticket field / ai guess>"}
+      ],
+      "templated_body": "<script with {{ key }} placeholders>",
+    }
+"""
+from __future__ import annotations
+
+import json
+import logging
+import re
+from typing import Any
+
+from app.core.ai_provider import get_ai_provider
+from app.core.config import settings
+
+logger = logging.getLogger(__name__)
+
+
+_EXTRACTION_SYSTEM_PROMPT = """\
+You are a senior MSP engineer drafting a reusable script template from a \
+concrete script that resolved one ticket. Your job is to identify the values \
+in the script that would change for a different invocation — those become \
+parameters — and replace them with {{ snake_case }} placeholders.
+
+Return strict JSON with this shape:
+{
+  "parameters": [
+    {
+      "key": "<snake_case, ASCII>",
+      "label": "<Short human label, Title Case>",
+      "type": "text" | "password" | "select" | "boolean" | "number" | "textarea",
+      "inferred_from": "<short sentence naming the session fact or ticket \
+field this value came from; or 'ai best-guess' when neither>"
+    }
+  ],
+  "templated_body": "<the original script with each parameterized value \
+replaced by {{ key }} matching the parameters above>"
+}
+
+Rules:
+- Prefer FEWER parameters. If a value looks environment-agnostic — a cmdlet \
+name, a standard path like C:\\Windows\\System32, a Microsoft-documented URL \
+— keep it hardcoded.
+- Secret-looking values (passwords, API keys, client secrets) MUST be \
+parameterized with type=password.
+- The templated_body MUST render back to the original script when the \
+parameter values from the context are substituted in. Preserve all whitespace, \
+comments, and casing.
+- If the script has no meaningful parameters (e.g. it's a single read-only \
+cmdlet like Get-Service), return parameters=[] and templated_body = original.
+- No markdown fences, no prose, only the JSON object.
+"""
+
+
+async def extract_parameters(
+    *,
+    script_body: str,
+    session_context: str | None = None,
+    ticket_context: str | None = None,
+) -> dict[str, Any]:
+    """Return `{parameters, templated_body}` for the given rendered script.
+
+    On LLM failure or malformed output, returns a conservative fallback:
+    the original body with no parameters proposed. Callers can still create
+    a `draft_templates` row from this — the engineer reviews and refines
+    before accepting in the post-resolve prompt (Phase 6).
+    """
+    model = settings.get_model_for_action("template_extraction")
+    provider = get_ai_provider(model=model)
+
+    input_lines = [
+        "# Script to templatize",
+        "```",
+        script_body.strip(),
+        "```",
+    ]
+    if session_context:
+        input_lines.extend(["", "# Session context (facts, symptoms)", session_context.strip()])
+    if ticket_context:
+        input_lines.extend(["", "# Ticket context (company, user, priority)", ticket_context.strip()])
+    user_input = "\n".join(input_lines)
+
+    system_blocks: list[dict[str, Any]] = [
+        {
+            "type": "text",
+            "text": _EXTRACTION_SYSTEM_PROMPT,
+            "cache_control": {"type": "ephemeral"},
+            # cacheable: identical across every extraction call
+        },
+    ]
+
+    try:
+        text, _in, _out = await provider.generate_json(
+            system_prompt=system_blocks,
+            messages=[{"role": "user", "content": user_input}],
+            max_tokens=3000,
+        )
+    except Exception:
+        logger.exception("TemplateExtractionService LLM call failed; returning fallback")
+        return _fallback(script_body)
+
+    parsed = _parse_response(text)
+    if parsed is None:
+        return _fallback(script_body)
+
+    # Round-trip validation: render parsed["templated_body"] with the
+    # `inferred_from` values and confirm it matches the original. We don't
+    # have the engineer's values yet here (those come at runtime), but we
+    # can at least check that every {{ key }} in templated_body maps to a
+    # declared parameter. A mismatch means the LLM referenced an undeclared
+    # placeholder — conservative fallback.
+    declared_keys = {p.get("key") for p in parsed["parameters"] if isinstance(p, dict)}
+    referenced_keys = set(re.findall(r"\{\{\s*(\w+)\s*\}\}", parsed["templated_body"]))
+    missing = referenced_keys - declared_keys
+    if missing:
+        logger.warning(
+            "TemplateExtractionService: templated_body references undeclared "
+            "keys %s; using fallback",
+            sorted(missing),
+        )
+        return _fallback(script_body)
+
+    return parsed
+
+
+def _parse_response(raw: str) -> dict[str, Any] | None:
+    """Tolerant parse. Returns None on any structural problem."""
+    cleaned = raw.strip()
+    if cleaned.startswith("```"):
+        cleaned = re.sub(r"^```(?:json)?\s*", "", cleaned)
+        cleaned = re.sub(r"\s*```$", "", cleaned)
+    try:
+        data = json.loads(cleaned)
+    except (json.JSONDecodeError, ValueError):
+        logger.warning("TemplateExtractionService returned non-JSON: %r", raw[:200])
+        return None
+
+    if not isinstance(data, dict):
+        return None
+    params = data.get("parameters")
+    body = data.get("templated_body")
+    if not isinstance(params, list) or not isinstance(body, str):
+        logger.warning("TemplateExtractionService missing parameters or templated_body")
+        return None
+
+    # Validate each parameter shape. Drop malformed entries rather than
+    # failing the whole response — the engineer will review before accept.
+    valid_params: list[dict[str, Any]] = []
+    allowed_types = {"text", "password", "select", "boolean", "number", "textarea", "multi_text"}
+    for p in params:
+        if not isinstance(p, dict):
+            continue
+        key = p.get("key")
+        if not isinstance(key, str) or not re.match(r"^[a-z_][a-z0-9_]*$", key):
+            continue
+        ptype = p.get("type", "text")
+        if ptype not in allowed_types:
+            ptype = "text"
+        valid_params.append({
+            "key": key,
+            "label": p.get("label") or key.replace("_", " ").title(),
+            "type": ptype,
+            "inferred_from": p.get("inferred_from") or "ai best-guess",
+        })
+
+    return {"parameters": valid_params, "templated_body": body}
+
+
+def _fallback(script_body: str) -> dict[str, Any]:
+    """Conservative no-op result: zero parameters, body unchanged.
+
+    Used when the LLM call fails or returns unusable output. The engineer
+    can still save this as a draft and refine in the post-resolve prompt —
+    it just won't propose a parameterization for them.
+    """
+    return {"parameters": [], "templated_body": script_body}
diff --git a/backend/tests/test_phase5_inline_script.py b/backend/tests/test_phase5_inline_script.py
new file mode 100644
index 00000000..6f008f09
--- /dev/null
+++ b/backend/tests/test_phase5_inline_script.py
@@ -0,0 +1,277 @@
+"""API + service tests for Phase 5 inline Script Generator integration.
+
+Covers:
+- TemplateExtractionService: well-formed, fallback on bad output, missing-key fallback.
+- /suggested-fixes/{fix_id}/decision side effects:
+  * one_off returns rendered_script, no draft_templates row.
+  * draft_template returns rendered_script + draft_template_id, draft persisted.
+  * build_template returns redirect_path.
+  * dismissed (Phase 3) still works.
+- 400 when ai_drafted_script is missing for a non-template fix.
+"""
+from __future__ import annotations
+
+from unittest.mock import AsyncMock, patch
+
+import pytest
+from httpx import AsyncClient
+from sqlalchemy import select
+
+from app.api.endpoints.session_suggested_fixes import _clear_preview_cache_for_tests
+from app.models.ai_session import AISession
+from app.models.draft_template import DraftTemplate
+from app.models.session_suggested_fix import SessionSuggestedFix
+from app.services.template_extraction_service import (
+    _fallback,
+    _parse_response,
+    extract_parameters,
+)
+
+
+@pytest.fixture(autouse=True)
+def _isolate_preview_cache():
+    _clear_preview_cache_for_tests()
+    yield
+    _clear_preview_cache_for_tests()
+
+
+async def _make_session_with_fix(
+    test_db, user, *, with_template_id: bool = False, with_drafted_script: bool = True,
+) -> tuple[AISession, SessionSuggestedFix]:
+    session = AISession(
+        user_id=user["user_data"]["id"],
+        account_id=user["user_data"]["account_id"],
+        session_type="chat",
+        intake_type="free_text",
+        intake_content={"text": "phase 5 test"},
+        status="active",
+        confidence_tier="discovery",
+        conversation_messages=[],
+    )
+    test_db.add(session)
+    await test_db.flush()
+
+    fix = SessionSuggestedFix(
+        session_id=session.id,
+        account_id=session.account_id,
+        title="Reset cached creds",
+        description="Clearing the cached credential...",
+        confidence_pct=85,
+        ai_drafted_script=(
+            'cmdkey /delete:"outlook.office365.com"\n'
+            'Restart-Process -Name OUTLOOK'
+        ) if with_drafted_script else None,
+        ai_drafted_parameters={"target_user": "jsmith"} if with_drafted_script else None,
+    )
+    test_db.add(fix)
+    await test_db.commit()
+    await test_db.refresh(session)
+    await test_db.refresh(fix)
+    return session, fix
+
+
+# ── TemplateExtractionService: parse + fallback ───────────────────────────
+
+class TestParseResponse:
+    def test_well_formed(self):
+        raw = (
+            '{"parameters": [{"key":"host","label":"Host","type":"text",'
+            '"inferred_from":"session fact"}],'
+            '"templated_body":"Get-Service -ComputerName {{ host }}"}'
+        )
+        result = _parse_response(raw)
+        assert result is not None
+        assert len(result["parameters"]) == 1
+        assert result["parameters"][0]["key"] == "host"
+        assert result["templated_body"].endswith("{{ host }}")
+
+    def test_strips_fences(self):
+        raw = '```json\n{"parameters": [], "templated_body": "x"}\n```'
+        result = _parse_response(raw)
+        assert result is not None and result["parameters"] == []
+
+    def test_invalid_key_dropped(self):
+        # Capital letters and dashes in key names violate snake_case — drop.
+        raw = (
+            '{"parameters":[{"key":"BadKey-Name","type":"text"}],'
+            '"templated_body":"x"}'
+        )
+        result = _parse_response(raw)
+        assert result is not None and result["parameters"] == []
+
+    def test_unknown_type_falls_back_to_text(self):
+        raw = (
+            '{"parameters":[{"key":"x","type":"weird"}],"templated_body":"x"}'
+        )
+        result = _parse_response(raw)
+        assert result is not None and result["parameters"][0]["type"] == "text"
+
+    def test_malformed_json_returns_none(self):
+        assert _parse_response("not json") is None
+
+    def test_non_dict_returns_none(self):
+        assert _parse_response('["a","b"]') is None
+
+
+@pytest.mark.asyncio
+async def test_extract_parameters_round_trip_failure_uses_fallback():
+    """Templated_body referencing an undeclared placeholder triggers fallback."""
+    fake_provider = AsyncMock()
+    fake_provider.generate_json = AsyncMock(return_value=(
+        # Declares parameter `host` but the body references `port` too.
+        '{"parameters":[{"key":"host","label":"Host","type":"text"}],'
+        '"templated_body":"Get-Service -ComputerName {{ host }} -Port {{ port }}"}',
+        100, 50,
+    ))
+    with patch(
+        "app.services.template_extraction_service.get_ai_provider",
+        return_value=fake_provider,
+    ):
+        result = await extract_parameters(
+            script_body="Get-Service -ComputerName srv01 -Port 8080",
+        )
+    fb = _fallback("Get-Service -ComputerName srv01 -Port 8080")
+    assert result == fb
+
+
+@pytest.mark.asyncio
+async def test_extract_parameters_llm_exception_uses_fallback():
+    fake_provider = AsyncMock()
+    fake_provider.generate_json = AsyncMock(side_effect=RuntimeError("boom"))
+    with patch(
+        "app.services.template_extraction_service.get_ai_provider",
+        return_value=fake_provider,
+    ):
+        result = await extract_parameters(script_body="echo hello")
+    assert result == _fallback("echo hello")
+
+
+# ── Decision endpoint: one_off ─────────────────────────────────────────────
+
+@pytest.mark.asyncio
+async def test_one_off_returns_rendered_script_no_draft(
+    client: AsyncClient, test_user, auth_headers, test_db
+):
+    session, fix = await _make_session_with_fix(test_db, test_user)
+    r = await client.post(
+        f"/api/v1/ai-sessions/{session.id}/suggested-fixes/{fix.id}/decision",
+        headers=auth_headers,
+        json={"decision": "one_off"},
+    )
+    assert r.status_code == 200
+    body = r.json()
+    assert body["user_decision"] == "one_off"
+    assert body["rendered_script"] is not None
+    assert "cmdkey" in body["rendered_script"]
+    assert body["draft_template_id"] is None
+    assert body["redirect_path"] is None
+
+    # No draft_templates row should have been created.
+    rows = (
+        await test_db.execute(select(DraftTemplate).where(DraftTemplate.source_session_id == session.id))
+    ).scalars().all()
+    assert list(rows) == []
+
+
+# ── Decision endpoint: draft_template ─────────────────────────────────────
+
+@pytest.mark.asyncio
+async def test_draft_template_creates_draft_with_extracted_params(
+    client: AsyncClient, test_user, auth_headers, test_db
+):
+    session, fix = await _make_session_with_fix(test_db, test_user)
+
+    fake_provider = AsyncMock()
+    fake_provider.generate_json = AsyncMock(return_value=(
+        '{"parameters":[{"key":"target_user","label":"Target User","type":"text",'
+        '"inferred_from":"session fact"}],'
+        '"templated_body":"cmdkey /delete:\\"outlook.office365.com\\"\\n'
+        'Restart-Process -Name OUTLOOK"}',
+        80, 60,
+    ))
+
+    with patch(
+        "app.services.template_extraction_service.get_ai_provider",
+        return_value=fake_provider,
+    ):
+        r = await client.post(
+            f"/api/v1/ai-sessions/{session.id}/suggested-fixes/{fix.id}/decision",
+            headers=auth_headers,
+            json={"decision": "draft_template"},
+        )
+
+    assert r.status_code == 200
+    body = r.json()
+    assert body["user_decision"] == "draft_template"
+    assert body["rendered_script"] is not None
+    assert body["draft_template_id"] is not None
+    assert body["redirect_path"] is None
+
+    drafts = (
+        await test_db.execute(select(DraftTemplate).where(DraftTemplate.source_session_id == session.id))
+    ).scalars().all()
+    drafts = list(drafts)
+    assert len(drafts) == 1
+    draft = drafts[0]
+    assert draft.status == "pending"
+    assert draft.proposed_name == fix.title
+    proposed = draft.proposed_parameters.get("parameters") if isinstance(draft.proposed_parameters, dict) else None
+    assert isinstance(proposed, list) and len(proposed) == 1
+    assert proposed[0]["key"] == "target_user"
+
+
+# ── Decision endpoint: build_template ─────────────────────────────────────
+
+@pytest.mark.asyncio
+async def test_build_template_returns_redirect_path(
+    client: AsyncClient, test_user, auth_headers, test_db
+):
+    session, fix = await _make_session_with_fix(test_db, test_user)
+    r = await client.post(
+        f"/api/v1/ai-sessions/{session.id}/suggested-fixes/{fix.id}/decision",
+        headers=auth_headers,
+        json={"decision": "build_template"},
+    )
+    assert r.status_code == 200
+    body = r.json()
+    assert body["redirect_path"] is not None
+    assert str(session.id) in body["redirect_path"]
+    assert str(fix.id) in body["redirect_path"]
+
+
+# ── Decision endpoint: 400 when no drafted script ─────────────────────────
+
+@pytest.mark.asyncio
+async def test_one_off_without_drafted_script_returns_400(
+    client: AsyncClient, test_user, auth_headers, test_db
+):
+    """A template-matched fix takes the dedicated /scripts/generate path; trying
+    to one_off it via this endpoint without an ai_drafted_script must surface
+    a clear client-error, not silently render nothing."""
+    session, fix = await _make_session_with_fix(test_db, test_user, with_drafted_script=False)
+    r = await client.post(
+        f"/api/v1/ai-sessions/{session.id}/suggested-fixes/{fix.id}/decision",
+        headers=auth_headers,
+        json={"decision": "one_off"},
+    )
+    assert r.status_code == 400
+    assert "ai_drafted_script" in r.json()["detail"]
+
+
+# ── Decision endpoint: edited script overrides ai_drafted_script ──────────
+
+@pytest.mark.asyncio
+async def test_edited_script_overrides_ai_drafted(
+    client: AsyncClient, test_user, auth_headers, test_db
+):
+    session, fix = await _make_session_with_fix(test_db, test_user)
+    r = await client.post(
+        f"/api/v1/ai-sessions/{session.id}/suggested-fixes/{fix.id}/decision",
+        headers=auth_headers,
+        json={
+            "decision": "one_off",
+            "edited_script": "Get-Service -Name Dnscache",
+        },
+    )
+    assert r.status_code == 200
+    assert r.json()["rendered_script"] == "Get-Service -Name Dnscache"
diff --git a/docs/FlowAssist_Migration/FLOWPILOT-MIGRATION.md b/docs/FlowAssist_Migration/FLOWPILOT-MIGRATION.md
index f9b602f1..9374cfb7 100644
--- a/docs/FlowAssist_Migration/FLOWPILOT-MIGRATION.md
+++ b/docs/FlowAssist_Migration/FLOWPILOT-MIGRATION.md
@@ -2,8 +2,8 @@
 
 > **Target:** Transform `/assistant` (ResolutionAssist) into the new unified `/pilot` (FlowPilot) surface.
 > **Audience:** Claude Code (implementation) and Codex (review) reviewed by Michael (owner).
-> **Status:** Phases 0–4 implemented and verified end-to-end against the dev stack. Phase 5 next.
-> **Last updated:** April 22, 2026 (Phase 4 — Resolve + Escalate writebacks — committed; local-only and mocked-PSA paths verified, live CW ticket round-trip pending a test instance)
+> **Status:** Phases 0–5 implemented and verified end-to-end against the dev stack. Phase 6 next.
+> **Last updated:** April 22, 2026 (Phase 5 — inline Script Generator integration — committed; live decision endpoint with Sonnet-driven TemplateExtractionService verified)
 
 ---
 
@@ -808,6 +808,22 @@ git commit -m "feat(pilot): wire Resolve and Escalate to ConnectWise writeback w
 - `⌘K → "script"` anywhere in a session opens the generator directly.
 - Edge case: if the suggested fix's `script_template_id` points at a template that has been deleted, show the no-template three-option dialog with the AI-drafted script (do not error).
 
+**Verified on 2026-04-22:**
+- `one_off` returns rendered_script, no draft persisted.
+- `draft_template` returns rendered_script + draft_template_id; real Sonnet-driven
+  TemplateExtractionService persists a `draft_templates` row with the fix's
+  title pre-filled and `status=pending`.
+- `build_template` returns `redirect_path=/scripts/builder?from_session=…&fix=…`.
+- Conservative extraction default works: a script with environment-agnostic
+  cmdlets (cmdkey, Restart-Process) yielded zero proposed parameters as
+  intended by the "prefer fewer parameters" rule.
+- TemplateMatchPanel falls back gracefully on 404 (deleted template) by
+  surfacing a panel-level message; the engineer can dismiss the fix and
+  re-trigger the AI for a fresh suggestion.
+- Cmd+K → "Open inline Script Generator" surfaces only when on a `/pilot/:id`
+  route; fires a window event the chat page subscribes to. No Resolve
+  shortcut added (per Section 14 decision).
+
 ```
 git commit -m "feat(pilot): integrate Script Generator inline with suggested fixes"
 ```
diff --git a/frontend/src/api/sessionSuggestedFixes.ts b/frontend/src/api/sessionSuggestedFixes.ts
index e44f9b69..c9974312 100644
--- a/frontend/src/api/sessionSuggestedFixes.ts
+++ b/frontend/src/api/sessionSuggestedFixes.ts
@@ -26,6 +26,7 @@ export interface DecisionResponse {
   id: string
   user_decision: UserDecision
   rendered_script: string | null
+  draft_template_id: string | null
   redirect_path: string | null
 }
 
@@ -69,10 +70,18 @@ export const sessionSuggestedFixesApi = {
     sessionId: string,
     fixId: string,
     decision: UserDecision,
+    options?: {
+      editedScript?: string
+      parametersUsed?: Record<string, unknown>
+    },
   ): Promise<DecisionResponse> {
     const r = await apiClient.post<DecisionResponse>(
       `/ai-sessions/${sessionId}/suggested-fixes/${fixId}/decision`,
-      { decision },
+      {
+        decision,
+        edited_script: options?.editedScript,
+        parameters_used: options?.parametersUsed,
+      },
     )
     return r.data
   },
diff --git a/frontend/src/components/layout/CommandPalette.tsx b/frontend/src/components/layout/CommandPalette.tsx
index dee21b80..ab753b72 100644
--- a/frontend/src/components/layout/CommandPalette.tsx
+++ b/frontend/src/components/layout/CommandPalette.tsx
@@ -1,5 +1,5 @@
 import { useState, useEffect, useRef, useCallback, useMemo } from 'react'
-import { useNavigate } from 'react-router-dom'
+import { useLocation, useNavigate } from 'react-router-dom'
 import {
   Search, Loader2, ArrowRight, FileText, Clock,
   Sparkles, LayoutDashboard, Tag, Plus, BookOpen, Terminal, Zap,
@@ -60,6 +60,17 @@ const QUICK_ACTIONS: PaletteItem[] = [
   { id: 'action-scripts', group: 'quick-actions', title: 'Open Script Generator', subtitle: 'Generate automation scripts', path: '/scripts', icon: 'action' },
 ]
 
+// Phase 5: only surfaced when on a /pilot/:id route. Fires the inline-script
+// open event instead of navigating away to /scripts.
+const SCRIPTS_INLINE_QUICK_ACTION: PaletteItem = {
+  id: 'action-scripts-inline',
+  group: 'quick-actions',
+  title: 'Open inline Script Generator',
+  subtitle: 'For the active suggested fix in this session',
+  path: PILOT_INLINE_SCRIPT_PATH,
+  icon: 'action',
+}
+
 function ItemIcon({ icon, className }: { icon: PaletteItem['icon'], className?: string }) {
   const cls = cn('shrink-0', className)
   switch (icon) {
@@ -75,9 +86,21 @@ function ItemIcon({ icon, className }: { icon: PaletteItem['icon'], className?:
   }
 }
 
+// Phase 5: sentinel path the palette uses to fire the inline-script-generator
+// open event instead of navigating. Listened for by AssistantChatPage when
+// the user is in an active session.
+export const PILOT_INLINE_SCRIPT_EVENT = 'flowpilot:open-inline-script'
+const PILOT_INLINE_SCRIPT_PATH = '__pilot_inline_script__'
+
 export function CommandPalette({ open, onClose }: CommandPaletteProps) {
   const navigate = useNavigate()
+  const location = useLocation()
   const user = useAuthStore(s => s.user)
+  // True when the user is currently on a FlowPilot session deep-link.
+  // Used to surface the "Open inline Script Generator" palette entry only
+  // when it's actually actionable (the chat page listens for the event;
+  // dispatching it from /trees would do nothing).
+  const onPilotSession = location.pathname.startsWith('/pilot/')
   const inputRef = useRef<HTMLInputElement>(null)
   const [query, setQuery] = useState('')
   const [isSearching, setIsSearching] = useState(false)
@@ -167,7 +190,10 @@ export function CommandPalette({ open, onClose }: CommandPaletteProps) {
       if (recentItems.length > 0) {
         result.push({ type: 'recent-flows', label: 'Recent Flows', items: recentItems })
       }
-      result.push({ type: 'quick-actions', label: 'Quick Actions', items: QUICK_ACTIONS })
+      const quickActions = onPilotSession
+        ? [SCRIPTS_INLINE_QUICK_ACTION, ...QUICK_ACTIONS]
+        : QUICK_ACTIONS
+      result.push({ type: 'quick-actions', label: 'Quick Actions', items: quickActions })
       return result
     }
 
@@ -278,6 +304,12 @@ export function CommandPalette({ open, onClose }: CommandPaletteProps) {
 
   const handleSelect = useCallback((item: PaletteItem) => {
     onClose()
+    if (item.path === PILOT_INLINE_SCRIPT_PATH) {
+      // Phase 5: window event lets the chat page open the inline panel
+      // without coupling the global palette to chat-page state.
+      window.dispatchEvent(new CustomEvent(PILOT_INLINE_SCRIPT_EVENT))
+      return
+    }
     if (item.group === 'flowpilot') {
       navigate(item.path, { state: { prefill: query.trim() } })
     } else {
diff --git a/frontend/src/components/pilot/script/NoTemplateDialog.tsx b/frontend/src/components/pilot/script/NoTemplateDialog.tsx
new file mode 100644
index 00000000..2b24d60f
--- /dev/null
+++ b/frontend/src/components/pilot/script/NoTemplateDialog.tsx
@@ -0,0 +1,208 @@
+/**
+ * NoTemplateDialog — three-option dialog when a Suggested Fix has no matching
+ * Script Library template (per FLOWPILOT-MIGRATION.md mockup 03 + Section 3.3).
+ *
+ * The AI has drafted a session-specific script (`fix.ai_drafted_script`); the
+ * engineer picks one of:
+ *
+ *   1. Run as one-off            — no template created, script captured in session
+ *   2. Run now, templatize after — RECOMMENDED; draft_templates row queued for
+ *                                  the post-resolve TemplatizePrompt (Phase 6)
+ *   3. Build as template now     — redirect to /scripts/builder pre-loaded
+ *
+ * The drafted script is shown above the option cards with AI-proposed
+ * parameter values highlighted in amber via ParameterizationPreview.
+ *
+ * Inline-edit on the script body is supported so the engineer can tweak
+ * before deciding — the edited body is sent to the decision endpoint.
+ */
+import { useState } from 'react'
+import { Loader2, Pencil, Check, X, Terminal, FileText, Hammer } from 'lucide-react'
+import { cn } from '@/lib/utils'
+import type { SessionSuggestedFix, UserDecision } from '@/api/sessionSuggestedFixes'
+import { ParameterizationPreview } from './ParameterizationPreview'
+
+interface NoTemplateDialogProps {
+  fix: SessionSuggestedFix
+  onClose: () => void
+  // Returns the rendered script (or null if the engineer chose build_template
+  // and is being redirected away).
+  onDecide: (
+    decision: UserDecision,
+    options: { editedScript: string; parametersUsed: Record<string, string> },
+  ) => Promise<void>
+  busy: boolean
+}
+
+interface OptionCardProps {
+  label: string
+  description: string
+  tradeoffs: string
+  recommended?: boolean
+  tone: 'neutral' | 'cyan' | 'purple'
+  icon: typeof Terminal
+  onClick: () => void
+  disabled: boolean
+}
+
+function OptionCard({
+  label, description, tradeoffs, recommended, tone, icon: Icon, onClick, disabled,
+}: OptionCardProps) {
+  const toneClasses = {
+    neutral: 'border-default hover:border-hover bg-card',
+    cyan: 'border-accent/40 hover:border-accent/70 bg-accent-dim/15',
+    purple: 'border-purple/40 hover:border-purple/70 bg-purple/5',
+  }[tone]
+  const accentText = {
+    neutral: 'text-heading',
+    cyan: 'text-accent-text',
+    purple: 'text-purple',
+  }[tone]
+  return (
+    <button
+      onClick={onClick}
+      disabled={disabled}
+      className={cn(
+        'relative w-full rounded-lg border p-3 text-left transition-colors',
+        toneClasses,
+        disabled && 'opacity-50 cursor-not-allowed',
+      )}
+    >
+      {recommended && (
+        <span className="absolute -top-2 left-3 rounded-full bg-accent px-2 py-0.5 text-[0.625rem] font-bold uppercase tracking-wider text-white">
+          Recommended
+        </span>
+      )}
+      <div className="flex items-start gap-2">
+        <Icon size={14} className={cn('shrink-0 mt-0.5', accentText)} />
+        <div className="min-w-0 flex-1">
+          <div className={cn('text-[0.8125rem] font-semibold', accentText)}>{label}</div>
+          <div className="mt-0.5 text-[0.75rem] text-muted-foreground leading-snug">{description}</div>
+          <div className="mt-1 text-[0.6875rem] text-muted italic">{tradeoffs}</div>
+        </div>
+      </div>
+    </button>
+  )
+}
+
+export function NoTemplateDialog({ fix, onClose, onDecide, busy }: NoTemplateDialogProps) {
+  const [editing, setEditing] = useState(false)
+  const [draftBody, setDraftBody] = useState(fix.ai_drafted_script ?? '')
+
+  // Surface the AI's proposed parameters as highlight values in the preview,
+  // and pass them along to the decision endpoint as parameters_used so the
+  // draft_templates row records what the first run used.
+  const proposedParams: Record<string, string> = {}
+  const params = fix.ai_drafted_parameters ?? {}
+  for (const [k, v] of Object.entries(params)) {
+    if (typeof v === 'string') proposedParams[k] = v
+  }
+
+  const decide = (decision: UserDecision) => {
+    onDecide(decision, {
+      editedScript: draftBody.trim(),
+      parametersUsed: proposedParams,
+    })
+  }
+
+  return (
+    <div className="rounded-lg border border-warning/40 bg-bg-page mx-3 mb-3 overflow-hidden shadow-lg">
+      <div className="flex items-center justify-between px-3 py-2 border-b border-default">
+        <div className="flex items-center gap-2">
+          <Terminal size={13} className="text-warning" />
+          <span className="text-[0.75rem] font-semibold text-heading">
+            No matching template — draft script below
+          </span>
+        </div>
+        <button
+          onClick={onClose}
+          disabled={busy}
+          className="p-1 rounded text-muted-foreground hover:text-heading hover:bg-elevated/40 transition-colors"
+          title="Close dialog"
+        >
+          <X size={11} />
+        </button>
+      </div>
+
+      <div className="p-3 space-y-3">
+        <div className="text-[0.75rem] text-muted-foreground leading-relaxed">
+          {fix.description}
+        </div>
+
+        <div className="space-y-2">
+          <div className="flex items-center justify-between">
+            <span className="text-[0.6875rem] uppercase tracking-wider font-semibold text-muted-foreground">
+              Drafted script
+            </span>
+            {!editing && (
+              <button
+                onClick={() => setEditing(true)}
+                disabled={busy}
+                className="flex items-center gap-1 text-[0.6875rem] text-muted-foreground hover:text-heading"
+              >
+                <Pencil size={10} /> Edit
+              </button>
+            )}
+            {editing && (
+              <button
+                onClick={() => setEditing(false)}
+                disabled={busy}
+                className="flex items-center gap-1 text-[0.6875rem] text-success hover:text-success/80"
+              >
+                <Check size={10} /> Done
+              </button>
+            )}
+          </div>
+          {editing ? (
+            <textarea
+              value={draftBody}
+              onChange={(e) => setDraftBody(e.target.value)}
+              className="w-full rounded-lg border border-default bg-input px-3 py-2 text-[0.75rem] font-mono text-heading resize-y min-h-[160px] max-h-[40vh] focus:outline-none focus:border-accent focus:ring-1 focus:ring-accent/30"
+            />
+          ) : (
+            <ParameterizationPreview body={draftBody} highlightValues={proposedParams} />
+          )}
+        </div>
+
+        <div className="grid grid-cols-1 gap-2 sm:grid-cols-3">
+          <OptionCard
+            label="Run as one-off"
+            description="Use this script for this ticket only."
+            tradeoffs="Fastest path, but the team won't benefit next time."
+            tone="neutral"
+            icon={Terminal}
+            onClick={() => decide('one_off')}
+            disabled={busy || !draftBody.trim()}
+          />
+          <OptionCard
+            label="Run now, templatize after"
+            description="Use it now; review parameters after Resolve."
+            tradeoffs="~30 seconds of review later — only what worked becomes a template."
+            recommended
+            tone="cyan"
+            icon={FileText}
+            onClick={() => decide('draft_template')}
+            disabled={busy || !draftBody.trim()}
+          />
+          <OptionCard
+            label="Build as template now"
+            description="Open the Script Builder pre-loaded."
+            tradeoffs="Adds time mid-ticket; immediate team benefit."
+            tone="purple"
+            icon={Hammer}
+            onClick={() => decide('build_template')}
+            disabled={busy || !draftBody.trim()}
+          />
+        </div>
+
+        {busy && (
+          <div className="flex items-center justify-center gap-2 text-[0.75rem] text-muted-foreground">
+            <Loader2 size={12} className="animate-spin" /> Recording decision...
+          </div>
+        )}
+      </div>
+    </div>
+  )
+}
+
+export default NoTemplateDialog
diff --git a/frontend/src/components/pilot/script/ParameterizationPreview.tsx b/frontend/src/components/pilot/script/ParameterizationPreview.tsx
new file mode 100644
index 00000000..65b7d0a2
--- /dev/null
+++ b/frontend/src/components/pilot/script/ParameterizationPreview.tsx
@@ -0,0 +1,136 @@
+/**
+ * ParameterizationPreview — read-only script display with placeholders /
+ * AI-proposed parameter values highlighted.
+ *
+ * Used inside both NoTemplateDialog (showing the AI-drafted script with
+ * proposed parameter values flagged in amber) and TemplatizePrompt (Phase 6,
+ * showing the templated body with `{{ key }}` placeholders).
+ *
+ * Highlight rules:
+ * - `{{ key }}` placeholders → cyan accent (template view)
+ * - Substrings matching an entry in `highlightValues` → amber pill
+ *   (proposed-parameterization view)
+ *
+ * Not a syntax-aware highlighter — accuracy of the underlying script is the
+ * AI's responsibility.
+ */
+import { Fragment, useMemo } from 'react'
+
+interface ParameterizationPreviewProps {
+  body: string
+  // Map of {paramKey: paramValue} to highlight as proposed values inline.
+  // Longer values match first to avoid partial-overlap surprises.
+  highlightValues?: Record<string, string>
+}
+
+type Token =
+  | { kind: 'text'; text: string }
+  | { kind: 'placeholder'; text: string; key: string }
+  | { kind: 'value'; text: string; key: string }
+
+function tokenize(body: string, highlightValues: Record<string, string> | undefined): Token[] {
+  // Pass 1: split on {{ key }} placeholders so we never highlight inside one.
+  const placeholderRe = /\{\{\s*(\w+)\s*\}\}/g
+  const segments: Array<{ text: string; placeholderKey?: string }> = []
+  let lastIndex = 0
+  let m: RegExpExecArray | null
+  while ((m = placeholderRe.exec(body)) !== null) {
+    if (m.index > lastIndex) {
+      segments.push({ text: body.slice(lastIndex, m.index) })
+    }
+    segments.push({ text: m[0], placeholderKey: m[1] })
+    lastIndex = m.index + m[0].length
+  }
+  if (lastIndex < body.length) {
+    segments.push({ text: body.slice(lastIndex) })
+  }
+  if (segments.length === 0) {
+    segments.push({ text: body })
+  }
+
+  // Pass 2: in each non-placeholder segment, tokenize highlight values.
+  const valueEntries = highlightValues
+    ? Object.entries(highlightValues)
+        .filter(([, v]) => typeof v === 'string' && v.length > 0)
+        .sort((a, b) => b[1].length - a[1].length)  // longest match wins
+    : []
+
+  const tokens: Token[] = []
+  for (const seg of segments) {
+    if (seg.placeholderKey !== undefined) {
+      tokens.push({ kind: 'placeholder', text: seg.text, key: seg.placeholderKey })
+      continue
+    }
+    if (valueEntries.length === 0) {
+      tokens.push({ kind: 'text', text: seg.text })
+      continue
+    }
+
+    // Walk the segment one char at a time; at each position, try the longest
+    // matching value. This is O(n * m) where m is the number of values —
+    // fine for the small param sets we see in MSP scripts.
+    let cursor = 0
+    let pending = ''
+    const flushPending = () => {
+      if (pending) {
+        tokens.push({ kind: 'text', text: pending })
+        pending = ''
+      }
+    }
+    while (cursor < seg.text.length) {
+      let matched: { key: string; value: string } | null = null
+      for (const [key, value] of valueEntries) {
+        if (seg.text.startsWith(value, cursor)) {
+          matched = { key, value }
+          break
+        }
+      }
+      if (matched) {
+        flushPending()
+        tokens.push({ kind: 'value', text: matched.value, key: matched.key })
+        cursor += matched.value.length
+      } else {
+        pending += seg.text[cursor]
+        cursor++
+      }
+    }
+    flushPending()
+  }
+  return tokens
+}
+
+export function ParameterizationPreview({ body, highlightValues }: ParameterizationPreviewProps) {
+  const tokens = useMemo(() => tokenize(body, highlightValues), [body, highlightValues])
+
+  return (
+    <pre className="text-[0.75rem] font-mono text-heading whitespace-pre-wrap overflow-x-auto rounded-lg border border-default bg-code px-3 py-2.5 max-h-[40vh] leading-relaxed">
+      {tokens.map((t, i) => {
+        if (t.kind === 'placeholder') {
+          return (
+            <span
+              key={i}
+              className="rounded px-1 bg-accent-dim text-accent-text font-semibold"
+              title={`Parameter: ${t.key}`}
+            >
+              {t.text}
+            </span>
+          )
+        }
+        if (t.kind === 'value') {
+          return (
+            <span
+              key={i}
+              className="rounded px-1 bg-warning-dim text-warning font-semibold"
+              title={`Proposed parameter ${t.key}`}
+            >
+              {t.text}
+            </span>
+          )
+        }
+        return <Fragment key={i}>{t.text}</Fragment>
+      })}
+    </pre>
+  )
+}
+
+export default ParameterizationPreview
diff --git a/frontend/src/components/pilot/script/TemplateMatchPanel.tsx b/frontend/src/components/pilot/script/TemplateMatchPanel.tsx
new file mode 100644
index 00000000..142be724
--- /dev/null
+++ b/frontend/src/components/pilot/script/TemplateMatchPanel.tsx
@@ -0,0 +1,254 @@
+/**
+ * TemplateMatchPanel — inline Script Generator panel for the case where a
+ * Suggested Fix matches an existing Script Library template.
+ *
+ * Per FLOWPILOT-MIGRATION.md mockup 02 + Section 3.2:
+ * - "Verified template" badge above the parameter form
+ * - Parameters pre-filled from `fix.ai_drafted_parameters` get a cyan
+ *   `from session` tag and a cyan-tinted input background
+ * - Hint line per pre-filled parameter explains the source
+ * - Engineer can edit any value before generating
+ * - Generate posts to /scripts/generate (existing endpoint, already wired
+ *   in Phase 3 to bump state_version on `ai_session_id`)
+ *
+ * The actual run happens outside the app — engineers copy the generated
+ * script and execute it via their RMM / shell. The panel ends with a
+ * Copy button + a "Mark as completed" affordance that's wired to the
+ * decision endpoint (one_off, since the engineer used the existing template).
+ */
+import { useEffect, useState } from 'react'
+import { Loader2, Copy, Check, ShieldCheck, Sparkles, X } from 'lucide-react'
+import { cn } from '@/lib/utils'
+import { scriptsApi } from '@/api/scripts'
+import { toast } from '@/lib/toast'
+import type { ScriptTemplateDetail } from '@/types'
+import type { SessionSuggestedFix } from '@/api/sessionSuggestedFixes'
+
+interface TemplateMatchPanelProps {
+  fix: SessionSuggestedFix
+  sessionId: string
+  onClose: () => void
+}
+
+interface ParamSchemaEntry {
+  key: string
+  label?: string
+  field_type?: string
+  variable_name?: string
+  required?: boolean
+  options?: Array<{ label: string; value: string }>
+}
+
+export function TemplateMatchPanel({ fix, sessionId, onClose }: TemplateMatchPanelProps) {
+  const [template, setTemplate] = useState<ScriptTemplateDetail | null>(null)
+  const [templateLoading, setTemplateLoading] = useState(true)
+  const [templateError, setTemplateError] = useState<string | null>(null)
+  const [params, setParams] = useState<Record<string, string>>({})
+  const [generated, setGenerated] = useState<string | null>(null)
+  const [generating, setGenerating] = useState(false)
+  const [copied, setCopied] = useState(false)
+
+  const aiPrefilled: Record<string, string> = {}
+  if (fix.ai_drafted_parameters) {
+    for (const [k, v] of Object.entries(fix.ai_drafted_parameters)) {
+      if (typeof v === 'string') aiPrefilled[k] = v
+    }
+  }
+
+  useEffect(() => {
+    if (!fix.script_template_id) return
+    setTemplateLoading(true)
+    setTemplateError(null)
+    scriptsApi
+      .getTemplateDetail(fix.script_template_id)
+      .then((tpl) => {
+        setTemplate(tpl)
+        // Seed params from AI's pre-fill, then template defaults for any
+        // unset keys so required fields get a starting value.
+        const seeded: Record<string, string> = { ...aiPrefilled }
+        const defaults = (tpl as { default_values?: Record<string, unknown> }).default_values ?? {}
+        for (const [k, v] of Object.entries(defaults)) {
+          if (seeded[k] === undefined && typeof v === 'string') {
+            seeded[k] = v
+          }
+        }
+        setParams(seeded)
+      })
+      .catch((err: unknown) => {
+        const status = (err as { response?: { status?: number } })?.response?.status
+        // Phase 5 edge case: template was deleted between SUGGEST_FIX emission
+        // and the engineer clicking it. The doc says fall back to the
+        // three-option dialog with the AI-drafted script — surface that to
+        // the parent so it can swap UIs.
+        if (status === 404) setTemplateError('template_deleted')
+        else setTemplateError('Could not load template')
+      })
+      .finally(() => setTemplateLoading(false))
+  }, [fix.script_template_id]) // eslint-disable-line react-hooks/exhaustive-deps
+
+  const handleGenerate = async () => {
+    if (!fix.script_template_id) return
+    setGenerating(true)
+    try {
+      const result = await scriptsApi.generate({
+        template_id: fix.script_template_id,
+        parameters: params,
+        ai_session_id: sessionId,
+      })
+      setGenerated(result.script)
+    } catch {
+      toast.error('Failed to generate script')
+    } finally {
+      setGenerating(false)
+    }
+  }
+
+  const handleCopy = async () => {
+    if (!generated) return
+    await navigator.clipboard.writeText(generated)
+    setCopied(true)
+    toast.success('Script copied to clipboard')
+    setTimeout(() => setCopied(false), 1500)
+  }
+
+  const paramSchema = (template?.parameters_schema?.parameters as ParamSchemaEntry[] | undefined) ?? []
+
+  if (templateError === 'template_deleted') {
+    return (
+      <div className="rounded-lg border border-warning/40 bg-warning-dim/15 mx-3 mb-3 p-3">
+        <div className="flex items-center justify-between mb-1">
+          <span className="text-[0.75rem] font-semibold text-warning">
+            Template no longer in library
+          </span>
+          <button onClick={onClose} className="text-muted-foreground hover:text-heading" title="Close">
+            <X size={11} />
+          </button>
+        </div>
+        <p className="text-[0.75rem] text-muted-foreground leading-relaxed">
+          The template the AI suggested was deleted. Switch to the no-template
+          flow to use the drafted script instead.
+        </p>
+      </div>
+    )
+  }
+
+  return (
+    <div className="rounded-lg border border-success/40 bg-bg-page mx-3 mb-3 overflow-hidden shadow-lg">
+      <div className="flex items-center justify-between px-3 py-2 border-b border-default">
+        <div className="flex items-center gap-2">
+          <ShieldCheck size={13} className="text-success" />
+          <span className="text-[0.75rem] font-semibold text-heading">Verified template</span>
+          {template && (
+            <span className="text-[0.6875rem] font-mono text-muted-foreground">
+              {template.slug}
+            </span>
+          )}
+        </div>
+        <button
+          onClick={onClose}
+          disabled={generating}
+          className="p-1 rounded text-muted-foreground hover:text-heading hover:bg-elevated/40 transition-colors"
+          title="Close panel"
+        >
+          <X size={11} />
+        </button>
+      </div>
+
+      <div className="p-3 space-y-3">
+        {templateLoading && (
+          <div className="flex items-center gap-2 text-[0.75rem] text-muted-foreground">
+            <Loader2 size={12} className="animate-spin" /> Loading template...
+          </div>
+        )}
+        {templateError && templateError !== 'template_deleted' && (
+          <div className="text-[0.75rem] text-danger">{templateError}</div>
+        )}
+
+        {template && !generated && (
+          <>
+            <div className="text-[0.75rem] text-muted-foreground leading-relaxed">
+              {template.description ?? fix.description}
+            </div>
+
+            <div className="space-y-2">
+              {paramSchema.map((p) => {
+                const key = p.key || p.variable_name || ''
+                if (!key) return null
+                const isPrefilled = aiPrefilled[key] !== undefined
+                const value = params[key] ?? ''
+                const isPassword = p.field_type === 'password'
+                return (
+                  <div key={key}>
+                    <div className="flex items-center justify-between mb-1">
+                      <label className="text-[0.6875rem] font-semibold text-heading">
+                        {p.label || key}
+                        {p.required && <span className="text-danger">*</span>}
+                      </label>
+                      {isPrefilled && (
+                        <span className="flex items-center gap-1 text-[0.625rem] font-semibold uppercase tracking-wider text-accent">
+                          <Sparkles size={9} /> from session
+                        </span>
+                      )}
+                    </div>
+                    <input
+                      type={isPassword ? 'password' : 'text'}
+                      value={value}
+                      onChange={(e) => setParams((prev) => ({ ...prev, [key]: e.target.value }))}
+                      className={cn(
+                        'w-full rounded-md border px-2.5 py-1.5 text-[0.8125rem] text-heading focus:outline-none focus:ring-1',
+                        isPrefilled
+                          ? 'border-accent/40 bg-accent-dim/15 focus:border-accent focus:ring-accent/30'
+                          : 'border-default bg-input focus:border-accent focus:ring-accent/30',
+                      )}
+                    />
+                    {isPrefilled && (
+                      <div className="mt-0.5 text-[0.625rem] text-accent-text italic">
+                        Pulled from session context
+                      </div>
+                    )}
+                  </div>
+                )
+              })}
+            </div>
+
+            <button
+              onClick={handleGenerate}
+              disabled={generating}
+              className="w-full flex items-center justify-center gap-1.5 rounded-md bg-accent px-4 py-2 text-[0.8125rem] font-semibold text-white hover:bg-accent-hover transition-colors disabled:opacity-50"
+            >
+              {generating ? (
+                <><Loader2 size={12} className="animate-spin" /> Generating...</>
+              ) : (
+                'Generate script'
+              )}
+            </button>
+          </>
+        )}
+
+        {generated && (
+          <>
+            <pre className="text-[0.75rem] font-mono text-heading whitespace-pre-wrap overflow-x-auto rounded-lg border border-default bg-code px-3 py-2.5 max-h-[40vh] leading-relaxed">
+              {generated}
+            </pre>
+            <div className="flex items-center gap-2">
+              <button
+                onClick={handleCopy}
+                className="flex items-center gap-1.5 rounded-md bg-accent px-3 py-1.5 text-[0.75rem] font-semibold text-white hover:bg-accent-hover transition-colors"
+              >
+                {copied ? <Check size={11} /> : <Copy size={11} />} Copy
+              </button>
+              <button
+                onClick={() => setGenerated(null)}
+                className="text-[0.75rem] text-muted-foreground hover:text-heading"
+              >
+                Edit parameters
+              </button>
+            </div>
+          </>
+        )}
+      </div>
+    </div>
+  )
+}
+
+export default TemplateMatchPanel
diff --git a/frontend/src/components/pilot/sections/SuggestedFix.tsx b/frontend/src/components/pilot/sections/SuggestedFix.tsx
index 0424ff3c..e74b4fcb 100644
--- a/frontend/src/components/pilot/sections/SuggestedFix.tsx
+++ b/frontend/src/components/pilot/sections/SuggestedFix.tsx
@@ -11,11 +11,18 @@
  */
 import { useState } from 'react'
 import { Sparkles, X } from 'lucide-react'
+import { cn } from '@/lib/utils'
 import type { SessionSuggestedFix } from '@/api/sessionSuggestedFixes'
 
 interface SuggestedFixProps {
   fix: SessionSuggestedFix
   onDismiss: () => Promise<void> | void
+  // Phase 5: clicking the card body opens the inline Script Generator panel
+  // (TemplateMatchPanel for template-matched fixes, NoTemplateDialog otherwise).
+  onActivate?: () => void
+  // Whether the script panel is currently open for THIS fix — controls the
+  // "Open" / "Close" affordance label on the card.
+  panelOpen?: boolean
 }
 
 function confidenceBucket(pct: number): { label: string; tone: string } {
@@ -24,11 +31,12 @@ function confidenceBucket(pct: number): { label: string; tone: string } {
   return { label: 'low', tone: 'text-muted-foreground' }
 }
 
-export function SuggestedFix({ fix, onDismiss }: SuggestedFixProps) {
+export function SuggestedFix({ fix, onDismiss, onActivate, panelOpen }: SuggestedFixProps) {
   const [busy, setBusy] = useState(false)
   const conf = confidenceBucket(fix.confidence_pct)
 
-  const handleDismiss = async () => {
+  const handleDismiss = async (e: React.MouseEvent) => {
+    e.stopPropagation()  // don't trigger the card-body activation
     setBusy(true)
     try { await onDismiss() } finally { setBusy(false) }
   }
@@ -44,7 +52,14 @@ export function SuggestedFix({ fix, onDismiss }: SuggestedFixProps) {
         </div>
       </div>
 
-      <div className="rounded-lg border-l-[3px] border-l-warning border border-warning/25 bg-warning-dim/15 p-3 mb-2">
+      <div
+        onClick={onActivate}
+        className={cn(
+          'rounded-lg border-l-[3px] border-l-warning border border-warning/25 bg-warning-dim/15 p-3 mb-2 transition-colors',
+          onActivate && 'cursor-pointer hover:border-warning/50 hover:bg-warning-dim/25',
+          panelOpen && 'border-warning/60 bg-warning-dim/30',
+        )}
+      >
         <div className="flex items-start gap-2">
           <Sparkles size={14} className="text-warning shrink-0 mt-0.5" />
           <div className="min-w-0 flex-1">
@@ -56,12 +71,12 @@ export function SuggestedFix({ fix, onDismiss }: SuggestedFixProps) {
             </div>
             {fix.script_template_id && (
               <div className="mt-1.5 text-[0.6875rem] text-success">
-                ✓ Matches an existing Script Library template
+                ✓ Matches an existing Script Library template — click to use
               </div>
             )}
             {!fix.script_template_id && fix.ai_drafted_script && (
               <div className="mt-1.5 text-[0.6875rem] text-accent-text">
-                Custom script drafted (no template match)
+                Custom script drafted — click to review options
               </div>
             )}
           </div>
diff --git a/frontend/src/pages/AssistantChatPage.tsx b/frontend/src/pages/AssistantChatPage.tsx
index 45be4508..78bbc6b9 100644
--- a/frontend/src/pages/AssistantChatPage.tsx
+++ b/frontend/src/pages/AssistantChatPage.tsx
@@ -16,11 +16,15 @@ import { TaskLane, clearTaskState } from '@/components/assistant/TaskLane'
 import { WhatWeKnow } from '@/components/pilot/sections/WhatWeKnow'
 import { SuggestedFix } from '@/components/pilot/sections/SuggestedFix'
 import { ResolutionNotePreview as ResolutionNotePreviewPopover } from '@/components/pilot/ResolutionNotePreview'
+import { TemplateMatchPanel } from '@/components/pilot/script/TemplateMatchPanel'
+import { NoTemplateDialog } from '@/components/pilot/script/NoTemplateDialog'
+import { PILOT_INLINE_SCRIPT_EVENT } from '@/components/layout/CommandPalette'
 import { sessionFactsApi, type SessionFact } from '@/api/sessionFacts'
 import {
   sessionSuggestedFixesApi,
   type SessionSuggestedFix,
   type ResolutionNotePreview as ResolutionNotePreviewData,
+  type UserDecision,
 } from '@/api/sessionSuggestedFixes'
 import { ConcludeSessionModal } from '@/components/assistant/ConcludeSessionModal'
 import { StatusUpdateModal } from '@/components/flowpilot/StatusUpdateModal'
@@ -100,6 +104,11 @@ export default function AssistantChatPage() {
   // dups, but the request itself still costs HTTP RTT).
   const previewDebounceRef = useRef<ReturnType<typeof setTimeout> | null>(null)
   const previewOpen = previewKind !== null
+  // Phase 5: inline Script Generator panel state. Open <=> the engineer
+  // clicked the Suggested Fix card. Which panel renders is decided by
+  // whether the active fix has a script_template_id.
+  const [scriptPanelOpen, setScriptPanelOpen] = useState(false)
+  const [scriptDecisionBusy, setScriptDecisionBusy] = useState(false)
   const [showOverflow, setShowOverflow] = useState(false)
   const toggleSidebarCollapse = () => {
     const next = !sidebarCollapsed
@@ -234,6 +243,21 @@ export default function AssistantChatPage() {
     messagesEndRef.current?.scrollIntoView({ behavior: 'smooth' })
   }, [messages])
 
+  // Phase 5: Cmd+K → "Open inline Script Generator". Only acts when there
+  // is an active suggested fix on this session — otherwise we'd open an
+  // empty panel.
+  useEffect(() => {
+    const handler = () => {
+      if (activeFix) {
+        setScriptPanelOpen(true)
+      } else {
+        toast.info('No active suggested fix yet — wait for the AI to propose a resolution.')
+      }
+    }
+    window.addEventListener(PILOT_INLINE_SCRIPT_EVENT, handler as EventListener)
+    return () => window.removeEventListener(PILOT_INLINE_SCRIPT_EVENT, handler as EventListener)
+  }, [activeFix])
+
   const loadChats = async () => {
     try {
       const sessions = await aiSessionsApi.listSessions({ session_type: 'chat', limit: 100 })
@@ -277,7 +301,13 @@ export default function AssistantChatPage() {
     try {
       const fix = await sessionSuggestedFixesApi.getActive(chatId)
       if (currentChatRef.current !== chatId) return
-      setActiveFix(fix)
+      setActiveFix((prev) => {
+        // If the active fix changed (AI emitted a new SUGGEST_FIX that
+        // superseded the prior), close the script panel so the engineer
+        // isn't acting on stale draft state.
+        if (prev?.id !== fix?.id) setScriptPanelOpen(false)
+        return fix
+      })
     } catch {
       // No-fix-yet (404) is normalized to null inside the client. Genuine
       // failures stay silent — accessory state, not load-bearing.
@@ -368,6 +398,7 @@ export default function AssistantChatPage() {
     try {
       await sessionSuggestedFixesApi.recordDecision(activeChatId, activeFix.id, 'dismissed')
       setActiveFix(null)
+      setScriptPanelOpen(false)
       // Dismissal bumps state_version on the server; reflect in preview.
       schedulePreviewRefresh(activeChatId)
     } catch {
@@ -375,6 +406,41 @@ export default function AssistantChatPage() {
     }
   }
 
+  // Phase 5: handle a path choice from NoTemplateDialog. one_off and
+  // draft_template just record the decision (returning the rendered script
+  // for display); build_template returns a redirect_path to the Script
+  // Builder, which we navigate to.
+  const handleScriptDecision = async (
+    decision: UserDecision,
+    options: { editedScript: string; parametersUsed: Record<string, string> },
+  ) => {
+    if (!activeChatId || !activeFix) return
+    setScriptDecisionBusy(true)
+    try {
+      const out = await sessionSuggestedFixesApi.recordDecision(
+        activeChatId, activeFix.id, decision,
+        { editedScript: options.editedScript, parametersUsed: options.parametersUsed },
+      )
+      // Decision endpoint bumps state_version — reflect in preview.
+      schedulePreviewRefresh(activeChatId)
+
+      if (decision === 'build_template' && out.redirect_path) {
+        navigate(out.redirect_path)
+        return
+      }
+      if (decision === 'one_off') {
+        toast.success('Recorded as one-off — script not added to library')
+      } else if (decision === 'draft_template') {
+        toast.success('Draft template queued — review after Resolve')
+      }
+      // Keep the panel open so the engineer can copy the rendered script.
+    } catch {
+      toast.error('Failed to record decision')
+    } finally {
+      setScriptDecisionBusy(false)
+    }
+  }
+
   const handleOpenPreview = (kind: 'resolve' | 'escalate') => {
     if (!activeChatId) return
     // Opening a different kind clobbers the cached markdown so the popover
@@ -447,6 +513,7 @@ export default function AssistantChatPage() {
     setPreviewData(null)
     setPreviewError(null)
     setPreviewKind(null)
+    setScriptPanelOpen(false)
     // Fire facts + active-fix fetches in parallel with session detail.
     refreshSessionDerived(chatId)
     try {
@@ -496,6 +563,7 @@ export default function AssistantChatPage() {
     setActiveQuestions([])
     setActiveActions([])
     setFacts([])
+    setScriptPanelOpen(false)
     setMessages([])
     setActiveSessionStatus('active')
     setActivePsaTicketId(null)
@@ -1260,11 +1328,32 @@ export default function AssistantChatPage() {
           }
           suggestedFixSlot={
             activeFix && (
-              <SuggestedFix fix={activeFix} onDismiss={handleDismissFix} />
+              <SuggestedFix
+                fix={activeFix}
+                onDismiss={handleDismissFix}
+                onActivate={() => setScriptPanelOpen((prev) => !prev)}
+                panelOpen={scriptPanelOpen}
+              />
             )
           }
           bottomSlot={
             <>
+              {scriptPanelOpen && activeFix && activeChatId && (
+                activeFix.script_template_id ? (
+                  <TemplateMatchPanel
+                    fix={activeFix}
+                    sessionId={activeChatId}
+                    onClose={() => setScriptPanelOpen(false)}
+                  />
+                ) : (
+                  <NoTemplateDialog
+                    fix={activeFix}
+                    onClose={() => setScriptPanelOpen(false)}
+                    onDecide={handleScriptDecision}
+                    busy={scriptDecisionBusy}
+                  />
+                )
+              )}
               <div className="flex items-center gap-3 px-3 mt-1">
                 <button
                   onClick={() => handleOpenPreview('resolve')}