diff --git a/web/app/components/plugins/marketplace/list/list-with-collection.tsx b/web/app/components/plugins/marketplace/list/list-with-collection.tsx
index 7f694559c9..49c13146e3 100644
--- a/web/app/components/plugins/marketplace/list/list-with-collection.tsx
+++ b/web/app/components/plugins/marketplace/list/list-with-collection.tsx
@@ -75,7 +75,6 @@ const ListWithCollection = (props: ListWithCollectionProps) => {
       itemKeyField="id"
       renderCard={renderTemplateCard}
       carouselCollectionNames={[CAROUSEL_COLLECTION_NAMES.featured]}
-      viewMoreSearchTab="templates"
       cardContainerClassName={cardContainerClassName}
     />
   )
diff --git a/web/app/components/plugins/marketplace/list/template-card.spec.tsx b/web/app/components/plugins/marketplace/list/template-card.spec.tsx
new file mode 100644
index 0000000000..05fa100949
--- /dev/null
+++ b/web/app/components/plugins/marketplace/list/template-card.spec.tsx
@@ -0,0 +1,246 @@
+import type { Template } from '../types'
+import { render } from '@testing-library/react'
+import { describe, expect, it, vi } from 'vitest'
+import TemplateCard from './template-card'
+
+// Mock AppIcon component to capture props for assertion
+vi.mock('@/app/components/base/app-icon', () => ({
+  default: ({ size, iconType, icon, imageUrl, background }: {
+    size?: string
+    iconType?: string
+    icon?: string
+    imageUrl?: string | null
+    background?: string | null
+  }) => (
+    <span
+      data-testid="app-icon"
+      data-size={size}
+      data-icon-type={iconType}
+      data-icon={icon}
+      data-image-url={imageUrl || ''}
+      data-background={background || ''}
+    />
+  ),
+}))
+
+// Mock i18n
+vi.mock('#i18n', () => ({
+  useTranslation: () => ({
+    t: (key: string, options?: Record<string, unknown>) => {
+      if (key === 'marketplace.templateCard.by')
+        return `by ${options?.author || ''}`
+      if (key === 'usedCount')
+        return `${options?.num || 0} used`
+      return key
+    },
+  }),
+  useLocale: () => 'en-US',
+}))
+
+// Mock next/link
+vi.mock('next/link', () => ({
+  default: ({ children, href, ...props }: { children: React.ReactNode, href: string }) => (
+    <a href={href} {...props}>{children}</a>
+  ),
+}))
+
+// Mock next-themes
+vi.mock('next-themes', () => ({
+  useTheme: () => ({ theme: 'light' }),
+}))
+
+// Mock marketplace utils
+vi.mock('@/utils/get-icon', () => ({
+  getIconFromMarketPlace: (id: string) => `https://marketplace.dify.ai/api/v1/plugins/${id}/icon`,
+}))
+
+vi.mock('@/utils/template', () => ({
+  formatUsedCount: (count: number) => String(count),
+}))
+
+vi.mock('@/utils/var', () => ({
+  getMarketplaceUrl: (path: string) => `https://marketplace.dify.ai${path}`,
+}))
+
+vi.mock('@/app/components/plugins/card/base/corner-mark', () => ({
+  default: ({ text }: { text: string }) => <span data-testid="corner-mark">{text}</span>,
+}))
+
+// Mock marketplace utils (getTemplateIconUrl)
+vi.mock('../utils', () => ({
+  getTemplateIconUrl: (template: { id: string, icon?: string, icon_file_key?: string }): string => {
+    if (template.icon?.startsWith('http'))
+      return template.icon
+    if (template.icon_file_key)
+      return `https://marketplace.dify.ai/api/v1/templates/${template.id}/icon`
+    return ''
+  },
+}))
+
+// ================================
+// Test Data Factories
+// ================================
+
+const createMockTemplate = (overrides?: Partial<Template>): Template => ({
+  id: 'test-template-id',
+  index_id: 'test-template-id',
+  template_name: 'test-template',
+  icon: '📄',
+  icon_background: '',
+  icon_file_key: '',
+  categories: ['Agent'],
+  overview: 'A test template',
+  readme: 'readme content',
+  partner_link: '',
+  deps_plugins: [],
+  preferred_languages: ['en'],
+  publisher_handle: 'test-publisher',
+  publisher_type: 'individual',
+  kind: 'classic',
+  status: 'published',
+  usage_count: 100,
+  created_at: '2026-01-01T00:00:00Z',
+  updated_at: '2026-01-01T00:00:00Z',
+  ...overrides,
+})
+
+// ================================
+// Tests
+// ================================
+
+describe('TemplateCard', () => {
+  describe('Icon Rendering via AppIcon', () => {
+    it('should pass emoji id to AppIcon when icon is an emoji id like sweat_smile', () => {
+      const template = createMockTemplate({ icon: 'sweat_smile' })
+      const { container } = render(<TemplateCard template={template} />)
+
+      const appIcon = container.querySelector('[data-testid="app-icon"]')
+      expect(appIcon).toBeInTheDocument()
+      expect(appIcon?.getAttribute('data-icon-type')).toBe('emoji')
+      expect(appIcon?.getAttribute('data-icon')).toBe('sweat_smile')
+      expect(appIcon?.getAttribute('data-size')).toBe('large')
+    })
+
+    it('should pass unicode emoji to AppIcon when icon is a unicode character', () => {
+      const template = createMockTemplate({ icon: '😅' })
+      const { container } = render(<TemplateCard template={template} />)
+
+      const appIcon = container.querySelector('[data-testid="app-icon"]')
+      expect(appIcon).toBeInTheDocument()
+      expect(appIcon?.getAttribute('data-icon-type')).toBe('emoji')
+      expect(appIcon?.getAttribute('data-icon')).toBe('😅')
+    })
+
+    it('should pass default fallback icon to AppIcon when icon and icon_file_key are both empty', () => {
+      const template = createMockTemplate({ icon: '', icon_file_key: '' })
+      const { container } = render(<TemplateCard template={template} />)
+
+      const appIcon = container.querySelector('[data-testid="app-icon"]')
+      expect(appIcon).toBeInTheDocument()
+      expect(appIcon?.getAttribute('data-icon-type')).toBe('emoji')
+      expect(appIcon?.getAttribute('data-icon')).toBe('📄')
+    })
+
+    it('should pass image URL to AppIcon when icon is a URL', () => {
+      const template = createMockTemplate({ icon: 'https://example.com/icon.png' })
+      const { container } = render(<TemplateCard template={template} />)
+
+      const appIcon = container.querySelector('[data-testid="app-icon"]')
+      expect(appIcon).toBeInTheDocument()
+      expect(appIcon?.getAttribute('data-icon-type')).toBe('image')
+      expect(appIcon?.getAttribute('data-image-url')).toBe('https://example.com/icon.png')
+      // icon prop should not be set for URL icons
+      expect(appIcon?.hasAttribute('data-icon')).toBe(false)
+    })
+
+    it('should resolve image URL from icon_file_key when icon is empty but icon_file_key is set', () => {
+      const template = createMockTemplate({
+        id: 'tpl-123',
+        icon: '',
+        icon_file_key: 'fa3b0f86-bc64-47ec-ad83-8e3cfc6739ae.jpg',
+      })
+      const { container } = render(<TemplateCard template={template} />)
+
+      const appIcon = container.querySelector('[data-testid="app-icon"]')
+      expect(appIcon).toBeInTheDocument()
+      expect(appIcon?.getAttribute('data-icon-type')).toBe('image')
+      expect(appIcon?.getAttribute('data-image-url')).toBe('https://marketplace.dify.ai/api/v1/templates/tpl-123/icon')
+      // icon prop should not be set when rendering as image
+      expect(appIcon?.hasAttribute('data-icon')).toBe(false)
+    })
+
+    it('should prefer icon URL over icon_file_key when both are present', () => {
+      const template = createMockTemplate({
+        icon: 'https://example.com/custom-icon.png',
+        icon_file_key: 'fa3b0f86-bc64-47ec-ad83-8e3cfc6739ae.jpg',
+      })
+      const { container } = render(<TemplateCard template={template} />)
+
+      const appIcon = container.querySelector('[data-testid="app-icon"]')
+      expect(appIcon?.getAttribute('data-icon-type')).toBe('image')
+      expect(appIcon?.getAttribute('data-image-url')).toBe('https://example.com/custom-icon.png')
+    })
+  })
+
+  describe('Avatar Background', () => {
+    it('should pass icon_background to AppIcon when provided', () => {
+      const template = createMockTemplate({ icon: 'sweat_smile', icon_background: '#FFEAD5' })
+      const { container } = render(<TemplateCard template={template} />)
+
+      const appIcon = container.querySelector('[data-testid="app-icon"]')
+      expect(appIcon?.getAttribute('data-background')).toBe('#FFEAD5')
+    })
+
+    it('should not pass background to AppIcon when icon_background is empty', () => {
+      const template = createMockTemplate({ icon: 'sweat_smile', icon_background: '' })
+      const { container } = render(<TemplateCard template={template} />)
+
+      const appIcon = container.querySelector('[data-testid="app-icon"]')
+      // Empty string means no background was passed (undefined becomes '')
+      expect(appIcon?.getAttribute('data-background')).toBe('')
+    })
+  })
+
+  describe('Sandbox', () => {
+    it('should render CornerMark when kind is sandboxed', () => {
+      const template = createMockTemplate({ kind: 'sandboxed' })
+      const { container } = render(<TemplateCard template={template} />)
+
+      const cornerMark = container.querySelector('[data-testid="corner-mark"]')
+      expect(cornerMark).toBeInTheDocument()
+      expect(cornerMark?.textContent).toBe('Sandbox')
+    })
+
+    it('should not render CornerMark when kind is classic', () => {
+      const template = createMockTemplate({ kind: 'classic' })
+      const { container } = render(<TemplateCard template={template} />)
+
+      const cornerMark = container.querySelector('[data-testid="corner-mark"]')
+      expect(cornerMark).not.toBeInTheDocument()
+    })
+  })
+
+  describe('Deps Plugins', () => {
+    it('should render dep plugin icons', () => {
+      const template = createMockTemplate({
+        deps_plugins: ['langgenius/google-search', 'langgenius/dalle'],
+      })
+      const { container } = render(<TemplateCard template={template} />)
+
+      const pluginIcons = container.querySelectorAll('.h-6.w-6 img')
+      expect(pluginIcons.length).toBe(2)
+    })
+
+    it('should show +N when deps_plugins exceed MAX_VISIBLE_DEPS_PLUGINS', () => {
+      const deps = Array.from({ length: 10 }, (_, i) => `org/plugin-${i}`)
+      const template = createMockTemplate({ deps_plugins: deps })
+      const { container } = render(<TemplateCard template={template} />)
+
+      // Should show 7 visible + "+3"
+      const pluginIcons = container.querySelectorAll('.h-6.w-6 img')
+      expect(pluginIcons.length).toBe(7)
+
+      expect(container.textContent).toContain('+3')
+    })
+  })
+})
diff --git a/web/app/components/plugins/marketplace/list/template-card.tsx b/web/app/components/plugins/marketplace/list/template-card.tsx
index c82c47aa92..64b48f4607 100644
--- a/web/app/components/plugins/marketplace/list/template-card.tsx
+++ b/web/app/components/plugins/marketplace/list/template-card.tsx
@@ -2,16 +2,17 @@
 
 import type { Template } from '../types'
 import { useLocale, useTranslation } from '#i18n'
-import Image from 'next/image'
 import Link from 'next/link'
 import * as React from 'react'
-import { useCallback, useMemo } from 'react'
+import { useCallback } from 'react'
+import AppIcon from '@/app/components/base/app-icon'
 import CornerMark from '@/app/components/plugins/card/base/corner-mark'
 import useTheme from '@/hooks/use-theme'
 import { cn } from '@/utils/classnames'
 import { getIconFromMarketPlace } from '@/utils/get-icon'
 import { formatUsedCount } from '@/utils/template'
 import { getMarketplaceUrl } from '@/utils/var'
+import { getTemplateIconUrl } from '../utils'
 
 type TemplateCardProps = {
   template: Template
@@ -21,31 +22,6 @@ type TemplateCardProps = {
 // Number of tag icons to show before showing "+X"
 const MAX_VISIBLE_DEPS_PLUGINS = 7
 
-// Soft background color palette for avatar
-const AVATAR_BG_COLORS = [
-  'bg-components-icon-bg-red-soft',
-  'bg-components-icon-bg-orange-dark-soft',
-  'bg-components-icon-bg-yellow-soft',
-  'bg-components-icon-bg-green-soft',
-  'bg-components-icon-bg-teal-soft',
-  'bg-components-icon-bg-blue-light-soft',
-  'bg-components-icon-bg-blue-soft',
-  'bg-components-icon-bg-indigo-soft',
-  'bg-components-icon-bg-violet-soft',
-  'bg-components-icon-bg-pink-soft',
-]
-
-// Simple hash function to get consistent color per template
-const getAvatarBgClass = (id: string): string => {
-  let hash = 0
-  for (let i = 0; i < id.length; i++) {
-    const char = id.charCodeAt(i)
-    hash = ((hash << 5) - hash) + char
-    hash = hash & hash
-  }
-  return AVATAR_BG_COLORS[Math.abs(hash) % AVATAR_BG_COLORS.length]
-}
-
 const TemplateCardComponent = ({
   template,
   className,
@@ -55,21 +31,7 @@ const TemplateCardComponent = ({
   const { theme } = useTheme()
   const { id, template_name, overview, icon, publisher_handle, usage_count, icon_background, deps_plugins, kind } = template
   const isSandbox = kind === 'sandboxed'
-  const isIconUrl = !!icon && /^(?:https?:)?\/\//.test(icon)
-
-  const avatarBgStyle = useMemo(() => {
-    // If icon_background is provided (hex or rgba), use it directly
-    if (icon_background)
-      return { backgroundColor: icon_background }
-    return undefined
-  }, [icon_background])
-
-  const avatarBgClass = useMemo(() => {
-    // Only use class-based color if no inline style
-    if (icon_background)
-      return ''
-    return getAvatarBgClass(id)
-  }, [icon_background, id])
+  const iconUrl = getTemplateIconUrl(template)
 
   const handleClick = useCallback(() => {
     const url = getMarketplaceUrl(`/templates/${publisher_handle}/${template_name}`, {
@@ -98,27 +60,13 @@ const TemplateCardComponent = ({
       {/* Header */}
       <div className="flex shrink-0 items-center gap-3 px-4 pb-2 pt-4">
         {/* Avatar */}
-        <div
-          className={cn(
-            'flex h-10 w-10 shrink-0 items-center justify-center overflow-hidden rounded-[10px] border-[0.5px] border-divider-regular p-1',
-            avatarBgClass,
-          )}
-          style={avatarBgStyle}
-        >
-          {isIconUrl
-            ? (
-                <Image
-                  src={icon}
-                  alt={template_name}
-                  width={24}
-                  height={24}
-                  className="h-6 w-6 object-contain"
-                />
-              )
-            : (
-                <span className="text-2xl leading-[1.2]">{icon || '📄'}</span>
-              )}
-        </div>
+        <AppIcon
+          size="large"
+          iconType={iconUrl ? 'image' : 'emoji'}
+          icon={iconUrl ? undefined : (icon || '📄')}
+          imageUrl={iconUrl || undefined}
+          background={icon_background || undefined}
+        />
         {/* Title */}
         <div className="flex min-w-0 flex-1 flex-col justify-center gap-0.5">
           <p className="system-md-medium truncate text-text-primary">{template_name}</p>
diff --git a/web/app/components/plugins/marketplace/search-box/search-dropdown/index.tsx b/web/app/components/plugins/marketplace/search-box/search-dropdown/index.tsx
index 1f3ac581c0..b05c6eef43 100644
--- a/web/app/components/plugins/marketplace/search-box/search-dropdown/index.tsx
+++ b/web/app/components/plugins/marketplace/search-box/search-dropdown/index.tsx
@@ -3,6 +3,7 @@ import type { Plugin } from '@/app/components/plugins/types'
 import { useTranslation } from '#i18n'
 import { RiArrowRightLine } from '@remixicon/react'
 import { Fragment } from 'react'
+import AppIcon from '@/app/components/base/app-icon'
 import Loading from '@/app/components/base/loading'
 import { useCategories } from '@/app/components/plugins/hooks'
 import { useRenderI18nObject } from '@/hooks/use-i18n'
@@ -10,7 +11,7 @@ import { cn } from '@/utils/classnames'
 import { formatUsedCount } from '@/utils/template'
 import { getMarketplaceUrl } from '@/utils/var'
 import { MARKETPLACE_TYPE_ICON_COMPONENTS } from '../../plugin-type-icons'
-import { getCreatorAvatarUrl, getPluginDetailLinkInMarketplace } from '../../utils'
+import { getCreatorAvatarUrl, getPluginDetailLinkInMarketplace, getTemplateIconUrl } from '../../utils'
 
 const DROPDOWN_PANEL = 'w-[472px] max-h-[710px] overflow-y-auto rounded-xl border-[0.5px] border-components-panel-border bg-components-panel-bg-blur shadow-xl backdrop-blur-sm'
 const ICON_BOX_BASE = 'flex shrink-0 items-center justify-center overflow-hidden border-[0.5px] border-components-panel-border-subtle bg-background-default-dodge'
@@ -175,18 +176,20 @@ function TemplatesSection({ templates, t }: {
         const descriptionText = template.overview
         const formattedUsedCount = formatUsedCount(template.usage_count, { precision: 0, rounding: 'floor' })
         const usedLabel = t('usedCount', { ns: 'plugin', num: formattedUsedCount || 0 })
-        const iconBgStyle = template.icon_background
-          ? { backgroundColor: template.icon_background }
-          : undefined
+        const iconUrl = getTemplateIconUrl(template)
         return (
           <DropdownItem
             key={template.id}
             href={getMarketplaceUrl(`/templates/${template.publisher_handle}/${template.template_name}`, { templateId: template.id })}
             icon={(
               <div className="flex shrink-0 items-start py-1">
-                <IconBox shape="rounded-lg" style={iconBgStyle}>
-                  <span className="text-xl leading-[1.2]">{template.icon || '📄'}</span>
-                </IconBox>
+                <AppIcon
+                  size="small"
+                  iconType={iconUrl ? 'image' : 'emoji'}
+                  icon={iconUrl ? undefined : (template.icon || '📄')}
+                  imageUrl={iconUrl || undefined}
+                  background={template.icon_background || undefined}
+                />
               </div>
             )}
           >
diff --git a/web/app/components/plugins/marketplace/utils.ts b/web/app/components/plugins/marketplace/utils.ts
index e7131e6283..19d9d591e6 100644
--- a/web/app/components/plugins/marketplace/utils.ts
+++ b/web/app/components/plugins/marketplace/utils.ts
@@ -58,6 +58,14 @@ export const getPluginIconInMarketplace = (plugin: Plugin) => {
   return `${MARKETPLACE_API_PREFIX}/plugins/${plugin.org}/${plugin.name}/icon`
 }
 
+export const getTemplateIconUrl = (template: { id: string, icon?: string, icon_file_key?: string }): string => {
+  if (template.icon?.startsWith('http'))
+    return template.icon
+  if (template.icon_file_key)
+    return `${MARKETPLACE_API_PREFIX}/templates/${template.id}/icon`
+  return ''
+}
+
 export const getCreatorAvatarUrl = (uniqueHandle: string) => {
   return `${MARKETPLACE_API_PREFIX}/creators/${uniqueHandle}/avatar`
 }