diff --git a/.rubocop_todo/rspec/spec_file_path_format.yml b/.rubocop_todo/rspec/spec_file_path_format.yml
index 0ed9f1b545812887f32d93cddd49077eb0a95d8e..55d22be40e78516c4c3da6723ecf7e9961cdd2bf 100644
--- a/.rubocop_todo/rspec/spec_file_path_format.yml
+++ b/.rubocop_todo/rspec/spec_file_path_format.yml
@@ -34,6 +34,7 @@ RSpec/SpecFilePathFormat:
     - 'spec/requests/api/pages/pages_spec.rb'
     - 'spec/services/ci/create_pipeline_service/artifacts_spec.rb'
     - 'spec/services/ci/create_pipeline_service/cache_spec.rb'
+    - 'spec/services/ci/create_pipeline_service/component_interpolation_spec.rb'
     - 'spec/services/ci/create_pipeline_service/composite_identity_spec.rb'
     - 'spec/services/ci/create_pipeline_service/creation_errors_and_warnings_spec.rb'
     - 'spec/services/ci/create_pipeline_service/cross_project_pipeline_spec.rb'
diff --git a/config/feature_flags/beta/ci_component_context_interpolation.yml b/config/feature_flags/beta/ci_component_context_interpolation.yml
new file mode 100644
index 0000000000000000000000000000000000000000..36cafc6a3d209494be8c83dd5e640b24843fe28e
--- /dev/null
+++ b/config/feature_flags/beta/ci_component_context_interpolation.yml
@@ -0,0 +1,10 @@
+---
+name: ci_component_context_interpolation
+description: Implementing component context interpolation in CI.
+feature_issue_url: https://gitlab.com/gitlab-org/gitlab/-/issues/438275
+introduced_by_url: https://gitlab.com/gitlab-org/gitlab/-/merge_requests/206183
+rollout_issue_url: https://gitlab.com/gitlab-org/gitlab/-/issues/571986
+milestone: '18.5'
+group: group::pipeline authoring
+type: beta
+default_enabled: false
diff --git a/lib/gitlab/ci/config/external/context.rb b/lib/gitlab/ci/config/external/context.rb
index d3f6faee4b86e9faca993e1dfd15f1369095a65e..f7978b5822386dc232ddee35ec0817eccb9e6f49 100644
--- a/lib/gitlab/ci/config/external/context.rb
+++ b/lib/gitlab/ci/config/external/context.rb
@@ -13,7 +13,7 @@ class Context
 
           attr_reader :project, :sha, :user, :parent_pipeline, :variables, :pipeline_config, :parallel_requests,
             :pipeline, :expandset, :execution_deadline, :logger, :max_includes, :max_total_yaml_size_bytes,
-            :pipeline_policy_context
+            :pipeline_policy_context, :component_data
 
           attr_accessor :total_file_size_in_bytes
 
@@ -25,7 +25,7 @@ class Context
           # rubocop:disable Metrics/ParameterLists -- all arguments needed
           def initialize(
             project: nil, pipeline: nil, sha: nil, user: nil, parent_pipeline: nil, variables: nil,
-            pipeline_config: nil, logger: nil, pipeline_policy_context: nil
+            pipeline_config: nil, logger: nil, pipeline_policy_context: nil, component_data: nil
           )
             @project = project
             @pipeline = pipeline
@@ -35,6 +35,7 @@ def initialize(
             @variables = variables || Ci::Variables::Collection.new
             @pipeline_config = pipeline_config
             @pipeline_policy_context = pipeline_policy_context
+            @component_data = component_data || {}
             @expandset = []
             @parallel_requests = []
             @execution_deadline = 0
@@ -86,6 +87,7 @@ def mutate(attrs = {})
               ctx.max_includes = max_includes
               ctx.max_total_yaml_size_bytes = max_total_yaml_size_bytes
               ctx.parallel_requests = parallel_requests
+              ctx.component_data = component_data
             end
           end
 
@@ -138,7 +140,7 @@ def internal_include?
           protected
 
           attr_writer :pipeline, :expandset, :execution_deadline, :logger, :max_includes, :max_total_yaml_size_bytes,
-            :parallel_requests
+            :parallel_requests, :component_data
 
           private
 
diff --git a/lib/gitlab/ci/config/external/file/base.rb b/lib/gitlab/ci/config/external/file/base.rb
index 9dc77252638b3135ad8129471d4b38d5b9136190..c81186b2fe2ec4750f8d66127cd95496359e8e36 100644
--- a/lib/gitlab/ci/config/external/file/base.rb
+++ b/lib/gitlab/ci/config/external/file/base.rb
@@ -129,7 +129,8 @@ def yaml_context
 
             def yaml_context_attributes
               {
-                variables: context.variables
+                variables: context.variables,
+                component: (ci_component_context_interpolation_enabled? ? context.component_data : {})
               }
             end
 
@@ -160,6 +161,11 @@ def masked_location
                 context.mask_variables_from(location)
               end
             end
+
+            def ci_component_context_interpolation_enabled?
+              ::Feature.enabled?(:ci_component_context_interpolation, context.project)
+            end
+            strong_memoize_attr :ci_component_context_interpolation_enabled?
           end
         end
       end
diff --git a/lib/gitlab/ci/config/external/file/component.rb b/lib/gitlab/ci/config/external/file/component.rb
index b34c303785b7b0a37d4fa0664cb3dd27025a4f08..8d5061c5455947efbd35aa386d9a0d91eb163c37 100644
--- a/lib/gitlab/ci/config/external/file/component.rb
+++ b/lib/gitlab/ci/config/external/file/component.rb
@@ -83,10 +83,16 @@ def expand_context_attrs
                 project: component_payload.fetch(:project),
                 sha: component_payload.fetch(:sha),
                 user: context.user,
-                variables: context.variables
+                variables: context.variables,
+                component_data: component_yaml_context
               }
             end
 
+            override :yaml_context_attributes
+            def yaml_context_attributes
+              super.merge(component: component_yaml_context)
+            end
+
             def masked_blob
               return unless component_payload
 
@@ -114,6 +120,12 @@ def component_attrs
                 name: component_payload.fetch(:name)
               }
             end
+
+            def component_yaml_context
+              return {} unless ci_component_context_interpolation_enabled?
+
+              component_attrs.slice(*Config::Header::Component::ALLOWED_VALUES)
+            end
           end
         end
       end
diff --git a/lib/gitlab/ci/config/header/component.rb b/lib/gitlab/ci/config/header/component.rb
new file mode 100644
index 0000000000000000000000000000000000000000..96ddbd750762fff8e8555d993ecef6d008fcb0fc
--- /dev/null
+++ b/lib/gitlab/ci/config/header/component.rb
@@ -0,0 +1,32 @@
+# frozen_string_literal: true
+
+module Gitlab
+  module Ci
+    class Config
+      module Header
+        ##
+        # Component context configuration used for interpolation with the CI configuration.
+        #
+        # This class defines the available component context information that can be used
+        # in CI configuration interpolation.
+        #
+        class Component < ::Gitlab::Config::Entry::Node
+          include ::Gitlab::Config::Entry::Validatable
+
+          ALLOWED_VALUES = %i[name sha].freeze
+          ALLOWED_VALUES_TO_S = ALLOWED_VALUES.map(&:to_s).freeze
+
+          validations do
+            validates :config, type: Array, array_of_strings: true, allowed_array_values: { in: ALLOWED_VALUES_TO_S }
+          end
+
+          def value
+            return [] unless valid?
+
+            config.uniq.map(&:to_sym)
+          end
+        end
+      end
+    end
+  end
+end
diff --git a/lib/gitlab/ci/config/header/root.rb b/lib/gitlab/ci/config/header/root.rb
index fc5a6fcd95ab66b0d14697b98f2551c788f2450f..ebedd851a97561fef7dd6b329f760d27d031cac0 100644
--- a/lib/gitlab/ci/config/header/root.rb
+++ b/lib/gitlab/ci/config/header/root.rb
@@ -29,6 +29,10 @@ class Root < ::Gitlab::Config::Entry::Node
           def spec_inputs_value
             spec_entry.inputs_value
           end
+
+          def spec_component_value
+            spec_entry.component_value
+          end
         end
       end
     end
diff --git a/lib/gitlab/ci/config/header/spec.rb b/lib/gitlab/ci/config/header/spec.rb
index 4753c1eb4412b158d61fa694051f8ab57031bb15..32e034e319774fe7cc0abbbce3e0ab4a4c882d23 100644
--- a/lib/gitlab/ci/config/header/spec.rb
+++ b/lib/gitlab/ci/config/header/spec.rb
@@ -7,7 +7,7 @@ module Header
         class Spec < ::Gitlab::Config::Entry::Node
           include ::Gitlab::Config::Entry::Configurable
 
-          ALLOWED_KEYS = %i[inputs].freeze
+          ALLOWED_KEYS = %i[inputs component].freeze
 
           validations do
             validates :config, allowed_keys: ALLOWED_KEYS
@@ -17,6 +17,11 @@ class Spec < ::Gitlab::Config::Entry::Node
             description: 'Allowed input parameters used for interpolation.',
             inherit: false,
             metadata: { composable_class: ::Gitlab::Ci::Config::Header::Input }
+
+          entry :component, Header::Component,
+            description: 'The available component context used for interpolation.',
+            inherit: false,
+            default: []
         end
       end
     end
diff --git a/lib/gitlab/ci/config/interpolation/interpolator.rb b/lib/gitlab/ci/config/interpolation/interpolator.rb
index 9a5ce5b415023cd57cfb9a48288eec96be5ce804..4589be2a45208243284c2ff3cf76b2388889d8aa 100644
--- a/lib/gitlab/ci/config/interpolation/interpolator.rb
+++ b/lib/gitlab/ci/config/interpolation/interpolator.rb
@@ -89,13 +89,17 @@ def inputs
 
           def context
             @context ||= Context.new(
-              { inputs: inputs.to_hash }, variables: yaml_context.variables
+              { inputs: inputs.to_hash, component: component_data }, variables: yaml_context.variables
             )
           end
 
           def template
             @template ||= Template.new(content, context)
           end
+
+          def component_data
+            yaml_context.component.slice(*header.spec_component_value)
+          end
         end
       end
     end
diff --git a/lib/gitlab/ci/config/yaml/context.rb b/lib/gitlab/ci/config/yaml/context.rb
index 84c29eac76603248e1e929e95e7149590f69c85a..79922c478690cf38638326a83e3fe84e36094770 100644
--- a/lib/gitlab/ci/config/yaml/context.rb
+++ b/lib/gitlab/ci/config/yaml/context.rb
@@ -5,10 +5,11 @@ module Ci
     class Config
       module Yaml
         class Context
-          attr_reader :variables
+          attr_reader :variables, :component
 
-          def initialize(variables: [])
+          def initialize(variables: [], component: {})
             @variables = variables
+            @component = component
           end
         end
       end
diff --git a/spec/lib/gitlab/ci/config/external/context_spec.rb b/spec/lib/gitlab/ci/config/external/context_spec.rb
index 13cb3ae613093b4fd59147603aaf1d8c59deb8fc..1ad7febaca81e7382ec9ecfce12ef284b29bfae1 100644
--- a/spec/lib/gitlab/ci/config/external/context_spec.rb
+++ b/spec/lib/gitlab/ci/config/external/context_spec.rb
@@ -31,6 +31,7 @@
       it { expect(subject.variables_hash).to be_instance_of(ActiveSupport::HashWithIndifferentAccess) }
       it { expect(subject.variables_hash).to include('a' => 'b') }
       it { expect(subject.pipeline_config).to eq(pipeline_config) }
+      it { expect(subject.component_data).to eq({}) }
     end
 
     context 'without values' do
@@ -42,6 +43,21 @@
       it { expect(subject.variables).to be_instance_of(Gitlab::Ci::Variables::Collection) }
       it { expect(subject.variables_hash).to be_instance_of(ActiveSupport::HashWithIndifferentAccess) }
       it { expect(subject.pipeline_config).to be_nil }
+      it { expect(subject.component_data).to eq({}) }
+    end
+
+    context 'with component_data' do
+      let(:component_data) { { name: 'my-component', sha: 'abc123' } }
+      let(:attributes) do
+        {
+          project: project,
+          user: user,
+          sha: sha,
+          component_data: component_data
+        }
+      end
+
+      it { expect(subject.component_data).to eq(component_data) }
     end
 
     describe 'max_includes' do
@@ -177,6 +193,7 @@
       it { expect(mutated.execution_deadline).to eq(subject.execution_deadline) }
       it { expect(mutated.logger).to eq(subject.logger) }
       it { expect(mutated.parallel_requests).to eq(subject.parallel_requests) }
+      it { expect(mutated.component_data).to eq(subject.component_data) }
     end
 
     context 'with attributes' do
diff --git a/spec/lib/gitlab/ci/config/external/file/component_spec.rb b/spec/lib/gitlab/ci/config/external/file/component_spec.rb
index d254c276dfc8c1c58ca83b5f89ed5af2a378d04e..075bd7665b580ca6e8c0e1a7e3c69d24177c983d 100644
--- a/spec/lib/gitlab/ci/config/external/file/component_spec.rb
+++ b/spec/lib/gitlab/ci/config/external/file/component_spec.rb
@@ -184,7 +184,28 @@
         project: project,
         sha: 'my_component_sha',
         user: context.user,
-        variables: context.variables)
+        variables: context.variables,
+        component_data: {
+          name: 'my_component',
+          sha: 'my_component_sha'
+        }
+      )
+    end
+
+    context 'when the FF ci_component_context_interpolation is disabled' do
+      before do
+        stub_feature_flags(ci_component_context_interpolation: false)
+      end
+
+      it 'inherits user and variables while changes project and sha without component_data' do
+        is_expected.to include(
+          project: project,
+          sha: 'my_component_sha',
+          user: context.user,
+          variables: context.variables,
+          component_data: {}
+        )
+      end
     end
   end
 
diff --git a/spec/lib/gitlab/ci/config/header/component_spec.rb b/spec/lib/gitlab/ci/config/header/component_spec.rb
new file mode 100644
index 0000000000000000000000000000000000000000..927e1f23d178176f662f4f2d8cb213e7067476a7
--- /dev/null
+++ b/spec/lib/gitlab/ci/config/header/component_spec.rb
@@ -0,0 +1,103 @@
+# frozen_string_literal: true
+
+require 'spec_helper'
+
+RSpec.describe Gitlab::Ci::Config::Header::Component, feature_category: :pipeline_composition do
+  let(:component) { described_class.new(config) }
+
+  describe 'validations' do
+    context 'when config is an array of valid strings' do
+      let(:config) { %w[name sha] }
+
+      it 'passes validations' do
+        expect(component).to be_valid
+        expect(component.errors).to be_empty
+      end
+    end
+
+    context 'when config is an empty array' do
+      let(:config) { [] }
+
+      it 'passes validations' do
+        expect(component).to be_valid
+        expect(component.errors).to be_empty
+      end
+    end
+
+    context 'when config contains invalid values' do
+      let(:config) { %w[name invalid_key] }
+
+      it 'fails validations' do
+        expect(component).not_to be_valid
+        expect(component.errors).to include(/component config contains unknown values: invalid_key/)
+      end
+    end
+
+    context 'when config is not an array' do
+      let(:config) { 'name' }
+
+      it 'fails validations' do
+        expect(component).not_to be_valid
+        expect(component.errors).to include(/component config should be an array/)
+      end
+    end
+
+    context 'when config is a hash' do
+      let(:config) { { name: true } }
+
+      it 'fails validations' do
+        expect(component).not_to be_valid
+        expect(component.errors).to include(/component config should be an array/)
+      end
+    end
+
+    context 'when config contains non-string values' do
+      let(:config) { ['name', 123] }
+
+      it 'fails validations' do
+        expect(component).not_to be_valid
+        expect(component.errors).to include(/component config should be an array of strings/)
+      end
+    end
+  end
+
+  describe '#value' do
+    subject(:value) { component.value }
+
+    context 'when config is valid' do
+      let(:config) { %w[name sha] }
+
+      it { is_expected.to match_array([:name, :sha]) }
+    end
+
+    context 'when config has duplicate values' do
+      let(:config) { %w[name name sha] }
+
+      it { is_expected.to match_array([:name, :sha]) }
+    end
+
+    context 'when config has invalid values' do
+      let(:config) { %w[name invalid] }
+
+      it { is_expected.to be_empty }
+    end
+
+    context 'when config is empty array' do
+      let(:config) { [] }
+
+      it { is_expected.to be_empty }
+    end
+
+    context 'when config is not an array' do
+      let(:config) { 'invalid' }
+
+      it { is_expected.to be_empty }
+    end
+
+    context 'when config is nil' do
+      let(:config) { nil }
+
+      it { is_expected.to be_empty }
+    end
+  end
+end
diff --git a/spec/lib/gitlab/ci/config/header/root_spec.rb b/spec/lib/gitlab/ci/config/header/root_spec.rb
index a481d3f2c096217bb7f3ce82735f9805f6d1f954..2fa9ab98d1385ef1b6fb61b875ff8b4887d2ea5b 100644
--- a/spec/lib/gitlab/ci/config/header/root_spec.rb
+++ b/spec/lib/gitlab/ci/config/header/root_spec.rb
@@ -130,4 +130,68 @@
       })
     end
   end
+
+  describe '#spec_component_value' do
+    context 'when component is specified' do
+      let(:header_hash) do
+        {
+          spec: {
+            component: %w[name sha]
+          }
+        }
+      end
+
+      it 'returns the component value as symbols' do
+        expect(config.spec_component_value).to match_array([:name, :sha])
+      end
+    end
+
+    context 'when component is empty' do
+      let(:header_hash) do
+        {
+          spec: {
+            component: []
+          }
+        }
+      end
+
+      it 'returns empty array' do
+        expect(config.spec_component_value).to be_empty
+      end
+    end
+
+    context 'when component is not specified' do
+      let(:header_hash) do
+        {
+          spec: {
+            inputs: {
+              foo: { default: 'bar' }
+            }
+          }
+        }
+      end
+
+      it 'returns empty array by default' do
+        expect(config.spec_component_value).to be_empty
+      end
+    end
+
+    context 'when both inputs and component are specified' do
+      let(:header_hash) do
+        {
+          spec: {
+            inputs: {
+              foo: { default: 'bar' }
+            },
+            component: %w[name]
+          }
+        }
+      end
+
+      it 'returns both values correctly' do
+        expect(config.spec_inputs_value).to eq({ foo: { default: 'bar' } })
+        expect(config.spec_component_value).to match_array([:name])
+      end
+    end
+  end
 end
diff --git a/spec/lib/gitlab/ci/config/header/spec_spec.rb b/spec/lib/gitlab/ci/config/header/spec_spec.rb
index 74cfb39dfd509cf17b76c60ab70e2df6933d928c..8c1b081cc4caec227801e8969140f802c80163d2 100644
--- a/spec/lib/gitlab/ci/config/header/spec_spec.rb
+++ b/spec/lib/gitlab/ci/config/header/spec_spec.rb
@@ -28,6 +28,79 @@
     end
   end
 
+  context 'when spec contains component configuration' do
+    let(:spec_hash) do
+      {
+        component: %w[name sha]
+      }
+    end
+
+    it 'passes validations' do
+      expect(config).to be_valid
+      expect(config.errors).to be_empty
+    end
+
+    it 'returns the component value' do
+      expect(config.component_value).to match_array([:name, :sha])
+    end
+  end
+
+  context 'when spec contains both inputs and component' do
+    let(:spec_hash) do
+      {
+        inputs: {
+          foo: {
+            default: 'bar'
+          }
+        },
+        component: %w[name]
+      }
+    end
+
+    it 'passes validations' do
+      expect(config).to be_valid
+      expect(config.errors).to be_empty
+    end
+
+    it 'returns both values correctly' do
+      expect(config.inputs_value).to eq({ foo: { default: 'bar' } })
+      expect(config.component_value).to match_array([:name])
+    end
+  end
+
+  context 'when spec contains empty component array' do
+    let(:spec_hash) do
+      {
+        component: []
+      }
+    end
+
+    it 'passes validations' do
+      expect(config).to be_valid
+      expect(config.errors).to be_empty
+    end
+
+    it 'returns empty component value' do
+      expect(config.component_value).to eq([])
+    end
+  end
+
+  context 'when spec component is not specified' do
+    let(:spec_hash) do
+      {
+        inputs: {
+          foo: {
+            default: 'bar'
+          }
+        }
+      }
+    end
+
+    it 'returns default empty array for component' do
+      expect(config.component_value).to eq([])
+    end
+  end
+
   context 'when spec contains a required value' do
     let(:spec_hash) do
       { inputs: { foo: nil } }
diff --git a/spec/lib/gitlab/ci/config/interpolation/interpolator_spec.rb b/spec/lib/gitlab/ci/config/interpolation/interpolator_spec.rb
index 6ed4d70c9abd3831036c9ac571b130fa57304084..5d7be700073cfb3ad55c32a7a62cf5d3b408cac7 100644
--- a/spec/lib/gitlab/ci/config/interpolation/interpolator_spec.rb
+++ b/spec/lib/gitlab/ci/config/interpolation/interpolator_spec.rb
@@ -172,6 +172,76 @@
     end
   end
 
+  context 'when using component interpolation' do
+    let(:yaml_context) do
+      ::Gitlab::Ci::Config::Yaml::Context.new(
+        variables: [],
+        component: { name: 'my-component', sha: 'abc123' }
+      )
+    end
+
+    context 'when component values are specified in spec' do
+      let(:header) do
+        { spec: { component: %w[name sha] } }
+      end
+
+      let(:content) do
+        { test: 'Component $[[ component.name ]] at $[[ component.sha ]]' }
+      end
+
+      let(:arguments) { {} }
+
+      it 'correctly interpolates component data' do
+        subject.interpolate!
+
+        expect(subject).to be_interpolated
+        expect(subject).to be_valid
+        expect(subject.to_hash).to eq({ test: 'Component my-component at abc123' })
+      end
+    end
+
+    context 'when component value not in spec is accessed' do
+      let(:header) do
+        { spec: { component: %w[name] } }
+      end
+
+      let(:content) do
+        { test: 'Component $[[ component.name ]] at $[[ component.sha ]]' }
+      end
+
+      let(:arguments) { {} }
+
+      it 'returns an error for unspecified component value' do
+        subject.interpolate!
+
+        expect(subject).not_to be_valid
+        expect(subject.errors).to include 'unknown interpolation provided: `sha` in `component.sha`'
+      end
+    end
+
+    context 'when both inputs and component are used' do
+      let(:header) do
+        { spec: { inputs: { env: nil }, component: %w[name] } }
+      end
+
+      let(:content) do
+        {
+          test: 'Deploy to $[[ inputs.env ]] using $[[ component.name ]]'
+        }
+      end
+
+      let(:arguments) { { env: 'production' } }
+
+      it 'correctly interpolates both inputs and component data' do
+        subject.interpolate!
+
+        expect(subject).to be_interpolated
+        expect(subject).to be_valid
+        expect(subject.to_hash).to eq({ test: 'Deploy to production using my-component' })
+      end
+    end
+  end
+
   describe '#to_hash' do
     context 'when interpolation is not used' do
       let(:result) do
diff --git a/spec/lib/gitlab/ci/config/yaml/context_spec.rb b/spec/lib/gitlab/ci/config/yaml/context_spec.rb
index eca928f8bc5f51f923d6276b9cf5c237b0a07d57..ccb535ba327c18797f706ae4d02290e480e3e4c8 100644
--- a/spec/lib/gitlab/ci/config/yaml/context_spec.rb
+++ b/spec/lib/gitlab/ci/config/yaml/context_spec.rb
@@ -26,6 +26,18 @@
         expect(context.variables).to eq([])
       end
     end
+
+    context 'with component data provided' do
+      let(:component_data) do
+        { name: 'my-component', sha: 'abc123' }
+      end
+
+      subject(:context) { described_class.new(component: component_data) }
+
+      it 'stores the component data' do
+        expect(context.component).to eq(component_data)
+      end
+    end
   end
 
   describe '#variables' do
@@ -41,4 +53,16 @@
       expect(context.variables).to eq(variables)
     end
   end
+
+  describe '#component' do
+    let(:component_data) do
+      { name: 'test-component', sha: 'def456' }
+    end
+
+    subject(:context) { described_class.new(component: component_data) }
+
+    it 'returns the component data' do
+      expect(context.component).to eq(component_data)
+    end
+  end
 end
diff --git a/spec/services/ci/create_pipeline_service/component_interpolation_spec.rb b/spec/services/ci/create_pipeline_service/component_interpolation_spec.rb
new file mode 100644
index 0000000000000000000000000000000000000000..39e9c1c645da268487f038e7a71216175b232560
--- /dev/null
+++ b/spec/services/ci/create_pipeline_service/component_interpolation_spec.rb
@@ -0,0 +1,127 @@
+# frozen_string_literal: true
+
+require 'spec_helper'
+
+RSpec.describe Ci::CreatePipelineService, feature_category: :pipeline_composition do
+  context 'for spec:component' do
+    let_it_be(:project) { create(:project, :small_repo) }
+    let_it_be(:user)    { project.first_owner }
+
+    let_it_be(:components_project) do
+      create(:project, :small_repo, creator: user, namespace: user.namespace)
+    end
+
+    let_it_be(:catalog_resource) { create(:ci_catalog_resource, :published, project: components_project) }
+
+    let_it_be(:component_name) { 'my-component' }
+    let_it_be(:component_version) { '0.1.1' }
+    let_it_be(:component_file_path) { "templates/#{component_name}/template.yml" }
+
+    let_it_be(:component_yaml) do
+      <<~YAML
+      spec:
+        component: [name, sha]
+        inputs:
+          compiler:
+            default: gcc
+          optimization_level:
+            type: number
+            default: 2
+
+      ---
+
+      test:
+        script:
+          - echo "Building with $[[ inputs.compiler ]] and optimization level $[[ inputs.optimization_level ]]"
+          - echo "Component $[[ component.name ]] / $[[ component.sha ]]"
+      YAML
+    end
+
+    let_it_be(:component_sha) do
+      components_project.repository.create_file(
+        user, component_file_path, component_yaml, message: 'Add my first CI component', branch_name: 'master'
+      )
+    end
+
+    let(:service) { described_class.new(project, user, { ref: 'refs/heads/master' }) }
+
+    subject(:execute) { service.execute(:push, content: project_ci_yaml) }
+
+    before_all do
+      components_project.repository.add_tag(user, component_version, component_sha)
+
+      create(:release, :with_catalog_resource_version,
+        tag: component_version, author: user, project: components_project, sha: component_sha
+      )
+    end
+
+    context 'when the component file is included as include:component' do
+      let(:project_ci_yaml) do
+        <<~YAML
+        include:
+          - component: #{component_path}
+        YAML
+      end
+
+      context 'when the component path is with a full version' do
+        let_it_be(:component_path) do
+          "#{Gitlab.config.gitlab.host}/#{components_project.full_path}/#{component_name}@#{component_version}"
+        end
+
+        it 'creates a pipeline with correct jobs' do
+          response = execute
+          pipeline = response.payload
+
+          expect(response).to be_success
+          expect(pipeline).to be_created_successfully
+
+          expect(pipeline.builds.map(&:name)).to contain_exactly('test')
+
+          test_job = pipeline.builds.find { |build| build.name == 'test' }
+          expect(test_job.options[:script]).to eq([
+            'echo "Building with gcc and optimization level 2"',
+            "echo \"Component #{component_name} / #{component_sha}\""
+          ])
+        end
+
+        context 'when the FF ci_component_context_interpolation is disabled' do
+          before do
+            stub_feature_flags(ci_component_context_interpolation: false)
+          end
+
+          it 'does not create a pipeline' do
+            response = execute
+            pipeline = response.payload
+
+            expect(response).to be_error
+            expect(response.message).to include('unknown interpolation provided: `name` in `component.name`')
+
+            expect(pipeline).not_to be_created_successfully
+          end
+        end
+      end
+    end
+
+    context 'when the component file is included as include:project:file' do
+      let(:project_ci_yaml) do
+        <<~YAML
+        include:
+          - project: #{components_project.full_path}
+            file: #{component_file_path}
+        YAML
+      end
+
+      it 'does not interpolate and returns errors' do
+        response = execute
+        pipeline = response.payload
+
+        expect(response).not_to be_success
+        expect(pipeline).not_to be_created_successfully
+
+        expect(response.message).to eq(
+          "`templates/my-component/template.yml`: unknown interpolation provided: `name` in `component.name`"
+        )
+      end
+    end
+  end
+end