diff --git a/apps/builder/app/shared/instance-utils.ts b/apps/builder/app/shared/instance-utils.ts
index fc5961b92e..a33e009b5d 100644
--- a/apps/builder/app/shared/instance-utils.ts
+++ b/apps/builder/app/shared/instance-utils.ts
@@ -18,6 +18,7 @@ import {
   insertInstancesMutable,
   reparentInstanceMutable,
   getAncestorInstanceSelector,
+  insertPropsCopyMutable,
 } from "./tree-utils";
 import { removeByMutable } from "./array-utils";
 
@@ -25,15 +26,17 @@ export const insertNewComponentInstance = (
   component: string,
   dropTarget: DroppableTarget
 ) => {
-  const insertedInstances = createComponentInstance(component);
+  const { instances: insertedInstances, props: insertedProps } =
+    createComponentInstance(component);
   const rootInstanceId = insertedInstances[0].id;
-  store.createTransaction([instancesStore], (instances) => {
+  store.createTransaction([instancesStore, propsStore], (instances, props) => {
     insertInstancesMutable(
       instances,
       insertedInstances,
       [rootInstanceId],
       dropTarget
     );
+    insertPropsCopyMutable(props, insertedProps, new Map());
   });
 
   selectedInstanceSelectorStore.set([
diff --git a/apps/builder/app/shared/tree-utils.ts b/apps/builder/app/shared/tree-utils.ts
index 1d6f42ac51..a3fd1a8d31 100644
--- a/apps/builder/app/shared/tree-utils.ts
+++ b/apps/builder/app/shared/tree-utils.ts
@@ -53,7 +53,7 @@ export const areInstanceSelectorsEqual = (
 
 export const createComponentInstance = (component: Instance["component"]) => {
   const componentMeta = getComponentMeta(component);
-  const { children, instances } = generateDataFromEmbedTemplate(
+  const { children, instances, props } = generateDataFromEmbedTemplate(
     componentMeta?.children ?? []
   );
   // put first to be interpreted as root
@@ -63,7 +63,7 @@ export const createComponentInstance = (component: Instance["component"]) => {
     component,
     children,
   });
-  return instances;
+  return { instances, props };
 };
 
 const isInstanceDroppable = (instance: Instance) => {
diff --git a/packages/react-sdk/src/embed-template.test.ts b/packages/react-sdk/src/embed-template.test.ts
index 4b782a5c04..d1cd339e53 100644
--- a/packages/react-sdk/src/embed-template.test.ts
+++ b/packages/react-sdk/src/embed-template.test.ts
@@ -3,7 +3,7 @@ import { generateDataFromEmbedTemplate } from "./embed-template";
 
 const expectString = expect.any(String) as unknown as string;
 
-test("generate tree from template", () => {
+test("generate data for embedding from instances and text", () => {
   expect(
     generateDataFromEmbedTemplate([
       { type: "text", value: "hello" },
@@ -38,5 +38,68 @@ test("generate tree from template", () => {
         children: [],
       },
     ],
+    props: [],
+  });
+});
+
+test("generate data for embedding from props", () => {
+  expect(
+    generateDataFromEmbedTemplate([
+      {
+        type: "instance",
+        component: "Box1",
+        props: [
+          { type: "string", name: "data-prop1", value: "value1" },
+          { type: "string", name: "data-prop2", value: "value2" },
+        ],
+        children: [
+          {
+            type: "instance",
+            component: "Box2",
+            props: [{ type: "string", name: "data-prop3", value: "value3" }],
+            children: [],
+          },
+        ],
+      },
+    ])
+  ).toEqual({
+    children: [{ type: "id", value: expectString }],
+    instances: [
+      {
+        type: "instance",
+        id: expectString,
+        component: "Box1",
+        children: [{ type: "id", value: expectString }],
+      },
+      {
+        type: "instance",
+        id: expectString,
+        component: "Box2",
+        children: [],
+      },
+    ],
+    props: [
+      {
+        type: "string",
+        id: expectString,
+        instanceId: expectString,
+        name: "data-prop1",
+        value: "value1",
+      },
+      {
+        type: "string",
+        id: expectString,
+        instanceId: expectString,
+        name: "data-prop2",
+        value: "value2",
+      },
+      {
+        type: "string",
+        id: expectString,
+        instanceId: expectString,
+        name: "data-prop3",
+        value: "value3",
+      },
+    ],
   });
 });
diff --git a/packages/react-sdk/src/embed-template.ts b/packages/react-sdk/src/embed-template.ts
index 9f399ac692..b94e6969b3 100644
--- a/packages/react-sdk/src/embed-template.ts
+++ b/packages/react-sdk/src/embed-template.ts
@@ -1,6 +1,10 @@
 import { z } from "zod";
 import { nanoid } from "nanoid";
-import type { Instance, InstancesList } from "@webstudio-is/project-build";
+import {
+  type Instance,
+  type InstancesList,
+  PropsList,
+} from "@webstudio-is/project-build";
 
 const EmbedTemplateText = z.object({
   type: z.literal("text"),
@@ -9,32 +13,73 @@ const EmbedTemplateText = z.object({
 
 type EmbedTemplateText = z.infer<typeof EmbedTemplateText>;
 
+const EmbedTemplateProp = z.union([
+  z.object({
+    type: z.literal("number"),
+    name: z.string(),
+    value: z.number(),
+  }),
+  z.object({
+    type: z.literal("string"),
+    name: z.string(),
+    value: z.string(),
+  }),
+  z.object({
+    type: z.literal("boolean"),
+    name: z.string(),
+    value: z.boolean(),
+  }),
+  z.object({
+    type: z.literal("string[]"),
+    name: z.string(),
+    value: z.array(z.string()),
+  }),
+]);
+
+type EmbedTemplateProp = z.infer<typeof EmbedTemplateProp>;
+
 type EmbedTemplateInstance = {
   type: "instance";
   component: string;
+  props?: EmbedTemplateProp[];
   children: Array<EmbedTemplateInstance | EmbedTemplateText>;
 };
 
-const EmbedTemplateInstancen: z.ZodType<EmbedTemplateInstance> = z.object({
+const EmbedTemplateInstance: z.ZodType<EmbedTemplateInstance> = z.object({
   type: z.literal("instance"),
   component: z.string(),
+  props: z.optional(z.array(EmbedTemplateProp)),
   children: z.lazy(() => WsEmbedTemplate),
 });
 
 export const WsEmbedTemplate = z.array(
-  z.union([z.lazy(() => EmbedTemplateInstancen), EmbedTemplateText])
+  z.union([z.lazy(() => EmbedTemplateInstance), EmbedTemplateText])
 );
 
 export type WsEmbedTemplate = z.infer<typeof WsEmbedTemplate>;
 
 const createInstancesFromTemplate = (
   treeTemplate: WsEmbedTemplate,
-  instances: InstancesList
+  instances: InstancesList,
+  props: PropsList
 ) => {
   const parentChildren: Instance["children"] = [];
   for (const item of treeTemplate) {
     if (item.type === "instance") {
       const instanceId = nanoid();
+
+      // populate props
+      if (item.props) {
+        for (const prop of item.props) {
+          props.push({
+            id: nanoid(),
+            instanceId,
+            ...prop,
+          });
+        }
+      }
+
+      // populate instances
       const instance: Instance = {
         type: "instance",
         id: instanceId,
@@ -43,7 +88,11 @@ const createInstancesFromTemplate = (
       };
       instances.push(instance);
       // traverse children after to preserve top down order
-      instance.children = createInstancesFromTemplate(item.children, instances);
+      instance.children = createInstancesFromTemplate(
+        item.children,
+        instances,
+        props
+      );
       parentChildren.push({
         type: "id",
         value: instanceId,
@@ -63,6 +112,7 @@ export const generateDataFromEmbedTemplate = (
   treeTemplate: WsEmbedTemplate
 ) => {
   const instances: InstancesList = [];
-  const children = createInstancesFromTemplate(treeTemplate, instances);
-  return { children, instances };
+  const props: PropsList = [];
+  const children = createInstancesFromTemplate(treeTemplate, instances, props);
+  return { children, instances, props };
 };