diff --git a/app/services/whatsapp/incoming_message_baileys_service.rb b/app/services/whatsapp/incoming_message_baileys_service.rb
index fe4ba67b1..34a0fc296 100644
--- a/app/services/whatsapp/incoming_message_baileys_service.rb
+++ b/app/services/whatsapp/incoming_message_baileys_service.rb
@@ -46,6 +46,7 @@ class Whatsapp::IncomingMessageBaileysService < Whatsapp::IncomingMessageBaseSer
   end
 
   def handle_message
+    return if jid_type != 'user'
     return if find_message_by_source_id(message_id) || message_under_process?
 
     cache_message_source_id_in_redis
@@ -62,16 +63,23 @@ class Whatsapp::IncomingMessageBaileysService < Whatsapp::IncomingMessageBaseSer
   end
 
   def set_contact
-    phone_number_from_jid = @raw_message[:key][:remoteJid].split('@').first.split(':').first
-
+    # NOTE: jid shape is `<user>_<agent>:<device>@<server>`
+    # https://github.com/WhiskeySockets/Baileys/blob/v6.7.16/src/WABinary/jid-utils.ts#L19
+    phone_number_from_jid = @raw_message[:key][:remoteJid].split('@').first.split(':').first.split('_').first
+    phone_number_formatted = "+#{phone_number_from_jid}"
+    # NOTE: We're assuming `pushName` will always be present when `fromMe: false`.
+    # This assumption might be incorrect, so let's keep an eye out for contacts being created with empty name.
+    push_name = @raw_message[:key][:fromMe] ? phone_number_formatted : @raw_message[:pushName].to_s
     contact_inbox = ::ContactInboxWithContactBuilder.new(
       source_id: phone_number_from_jid,
       inbox: inbox,
-      contact_attributes: { name: @raw_message[:pushName], phone_number: "+#{phone_number_from_jid}" }
+      contact_attributes: { name: push_name, phone_number: phone_number_formatted }
     ).perform
 
     @contact_inbox = contact_inbox
     @contact = contact_inbox.contact
+
+    @contact.update!(name: push_name) if @contact.name == phone_number_formatted && !@raw_message[:key][:fromMe]
   end
 
   def handle_create_message
@@ -83,9 +91,34 @@ class Whatsapp::IncomingMessageBaileysService < Whatsapp::IncomingMessageBaseSer
     end
   end
 
+  def jid_type # rubocop:disable Metrics/CyclomaticComplexity
+    jid = @raw_message[:key][:remoteJid]
+    server = jid.split('@').last
+
+    # NOTE: Based on Baileys internal functions
+    # https://github.com/WhiskeySockets/Baileys/blob/v6.7.16/src/WABinary/jid-utils.ts#L48-L58
+    case server
+    when 's.whatsapp.net', 'c.us'
+      'user'
+    when 'g.us'
+      'group'
+    when 'lid'
+      'lid'
+    when 'broadcast'
+      jid.start_with?('status@') ? 'status' : 'broadcast'
+    when 'newsletter'
+      'newsletter'
+    when 'call'
+      'call'
+    else
+      'unknown'
+    end
+  end
+
   def message_type # rubocop:disable Metrics/CyclomaticComplexity,Metrics/PerceivedComplexity
     msg = @raw_message[:message]
-    return 'text' if msg.key?(:conversation) || msg.dig(:extendedTextMessage, :text)
+
+    return 'text' if msg.key?(:conversation) || msg.dig(:extendedTextMessage, :text).present?
     return 'contacts' if msg.key?(:contactMessage)
     return 'image' if msg.key?(:imageMessage)
     return 'audio' if msg.key?(:audioMessage)
diff --git a/spec/services/whatsapp/incoming_message_baileys_service_spec.rb b/spec/services/whatsapp/incoming_message_baileys_service_spec.rb
index 88411fff0..4bc7ab5bd 100644
--- a/spec/services/whatsapp/incoming_message_baileys_service_spec.rb
+++ b/spec/services/whatsapp/incoming_message_baileys_service_spec.rb
@@ -173,6 +173,32 @@ describe Whatsapp::IncomingMessageBaileysService do
         end
       end
 
+      context 'when message is not from a user' do
+        let(:raw_message) do
+          {
+            key: { id: 'msg_123', remoteJid: 'status@broadcast', participant: '5511912345678@s.whatsapp.net', fromMe: false },
+            message: { extendedTextMessage: { text: 'message' } },
+            pushName: 'John Doe'
+          }
+        end
+        let(:params) do
+          {
+            webhookVerifyToken: webhook_verify_token,
+            event: 'messages.upsert',
+            data: {
+              type: 'notify',
+              messages: [raw_message]
+            }
+          }
+        end
+
+        it 'does not create a conversation' do
+          described_class.new(inbox: inbox, params: params).perform
+
+          expect(inbox.conversations).to be_empty
+        end
+      end
+
       context 'when message type is text' do
         let(:raw_message) do
           {
@@ -206,8 +232,9 @@ describe Whatsapp::IncomingMessageBaileysService do
           end
 
           it 'creates an outgoing message' do
+            number = '5511912345678'
             raw_message_outgoing = raw_message.merge(
-              key: { id: 'msg_123', remoteJid: '5511912345678@s.whatsapp.net', fromMe: true }
+              key: { id: 'msg_123', remoteJid: "#{number}@s.whatsapp.net", fromMe: true }
             )
             params_outgoing = params.merge(data: { type: 'notify', messages: [raw_message_outgoing] })
             create(:account_user, account: inbox.account)
@@ -219,6 +246,15 @@ describe Whatsapp::IncomingMessageBaileysService do
             expect(message).to be_present
             expect(message.content).to eq('Hello from Baileys')
             expect(message.message_type).to eq('outgoing')
+            expect(conversation.contact.name).to eq("+#{number}")
+          end
+
+          it 'updates the contact name if the current name is a phone number when a incoming message is received' do
+            create(:contact, account: inbox.account, name: '+5511912345678', phone_number: '+5511912345678')
+            described_class.new(inbox: inbox, params: params).perform
+
+            conversation = inbox.conversations.last
+            expect(conversation.contact.name).to eq('John Doe')
           end
 
           it 'creates a message on an existing conversation' do
@@ -265,7 +301,7 @@ describe Whatsapp::IncomingMessageBaileysService do
           let(:raw_message) do
             {
               key: { id: 'msg_123', remoteJid: '5511912345678@s.whatsapp.net', fromMe: false },
-              message: { 'extendedTextMessage': { text: 'Hello from Baileys' } },
+              message: { extendedTextMessage: { text: 'Hello from Baileys' } },
               pushName: 'John Doe'
             }
           end