diff --git a/modules/openvino_code/package-lock.json b/modules/openvino_code/package-lock.json
index 33d55b8d2..02daeccf9 100644
--- a/modules/openvino_code/package-lock.json
+++ b/modules/openvino_code/package-lock.json
@@ -1,12 +1,12 @@
 {
   "name": "openvino-code-completion",
-  "version": "0.0.11",
+  "version": "0.0.13",
   "lockfileVersion": 3,
   "requires": true,
   "packages": {
     "": {
       "name": "openvino-code-completion",
-      "version": "0.0.11",
+      "version": "0.0.13",
       "license": "https://github.com/openvinotoolkit/openvino_contrib/blob/master/LICENSE",
       "workspaces": [
         "side-panel-ui"
diff --git a/modules/openvino_code/package.json b/modules/openvino_code/package.json
index 078a54263..ac6cf03be 100644
--- a/modules/openvino_code/package.json
+++ b/modules/openvino_code/package.json
@@ -1,7 +1,7 @@
 {
   "publisher": "OpenVINO",
   "name": "openvino-code-completion",
-  "version": "0.0.11",
+  "version": "0.0.13",
   "displayName": "OpenVINO Code Completion",
   "description": "VSCode extension for AI code completion with OpenVINO",
   "icon": "media/logo.png",
@@ -195,7 +195,8 @@
               "code-t5",
               "decicoder-1b-openvino",
               "stablecode-completion",
-              "deepseek-coder"
+              "deepseek-coder",
+              "phi-2"
             ],
             "description": "Which model to use for code generation."
           },
diff --git a/modules/openvino_code/shared/model.ts b/modules/openvino_code/shared/model.ts
index 25e42a975..e1c86e657 100644
--- a/modules/openvino_code/shared/model.ts
+++ b/modules/openvino_code/shared/model.ts
@@ -5,6 +5,7 @@ enum ModelId {
   DECICODER_1B_OPENVINO_INT8 = 'chgk13/decicoder-1b-openvino-int8',
   STABLECODE_COMPLETION_ALPHA_3B_4K_OPENVINO_INT8 = 'chgk13/stablecode-completion-alpha-3b-4k-openvino-int8',
   DEEPSEEK_CODER_1_3B = 'kumarijy/deepseek-code-1.3b_base_ov_int8',
+  PHI_2_2_7B = 'kumarijy/phi-2-2.7b_ov_int8',
 }
 
 export enum ModelName {
@@ -12,6 +13,7 @@ export enum ModelName {
   DECICODER_1B_OPENVINO_INT8 = 'decicoder-1b-openvino',
   STABLECODE_COMPLETION_ALPHA_3B_4K_OPENVINO_INT8 = 'stablecode-completion',
   DEEPSEEK_CODER_1_3B = 'deepseek-coder',
+  PHI_2_2_7B = 'phi-2',
 }
 
 export const MODEL_NAME_TO_ID_MAP: Record<ModelName, ModelId> = {
@@ -19,6 +21,7 @@ export const MODEL_NAME_TO_ID_MAP: Record<ModelName, ModelId> = {
   [ModelName.DECICODER_1B_OPENVINO_INT8]: ModelId.DECICODER_1B_OPENVINO_INT8,
   [ModelName.STABLECODE_COMPLETION_ALPHA_3B_4K_OPENVINO_INT8]: ModelId.STABLECODE_COMPLETION_ALPHA_3B_4K_OPENVINO_INT8,
   [ModelName.DEEPSEEK_CODER_1_3B]: ModelId.DEEPSEEK_CODER_1_3B,
+  [ModelName.PHI_2_2_7B]: ModelId.PHI_2_2_7B,
 };
 
 export const MODEL_SUPPORTED_FEATURES: Record<ModelName, Features[]> = {
@@ -26,4 +29,5 @@ export const MODEL_SUPPORTED_FEATURES: Record<ModelName, Features[]> = {
   [ModelName.DECICODER_1B_OPENVINO_INT8]: [Features.CODE_COMPLETION, Features.SUMMARIZATION],
   [ModelName.STABLECODE_COMPLETION_ALPHA_3B_4K_OPENVINO_INT8]: [Features.CODE_COMPLETION, Features.SUMMARIZATION],
   [ModelName.DEEPSEEK_CODER_1_3B]: [Features.CODE_COMPLETION, Features.SUMMARIZATION, Features.FIM],
+  [ModelName.PHI_2_2_7B]: [Features.CODE_COMPLETION],
 };
diff --git a/modules/openvino_code/side-panel-ui/src/components/sections/ServerSection/ModelSelect/ModelSelect.tsx b/modules/openvino_code/side-panel-ui/src/components/sections/ServerSection/ModelSelect/ModelSelect.tsx
index 06a1bc9ff..0d7a073fe 100644
--- a/modules/openvino_code/side-panel-ui/src/components/sections/ServerSection/ModelSelect/ModelSelect.tsx
+++ b/modules/openvino_code/side-panel-ui/src/components/sections/ServerSection/ModelSelect/ModelSelect.tsx
@@ -8,6 +8,7 @@ const options: SelectOptionProps<ModelName>[] = [
   { value: ModelName.DECICODER_1B_OPENVINO_INT8 },
   { value: ModelName.STABLECODE_COMPLETION_ALPHA_3B_4K_OPENVINO_INT8 },
   { value: ModelName.DEEPSEEK_CODER_1_3B },
+  { value: ModelName.PHI_2_2_7B },
 ];
 
 interface ModelSelectProps {