diff --git a/webapp/channels/src/components/advanced_text_editor/LinkCreationModal.tsx b/webapp/channels/src/components/advanced_text_editor/LinkCreationModal.tsx
new file mode 100644
index 00000000000..b1c488eca2f
--- /dev/null
+++ b/webapp/channels/src/components/advanced_text_editor/LinkCreationModal.tsx
@@ -0,0 +1,181 @@
+// Copyright (c) 2015-present Mattermost, Inc. All Rights Reserved.
+// See LICENSE.txt for license information.
+
+import classNames from 'classnames';
+import React, {useCallback, useEffect, useState} from 'react';
+import {Modal} from 'react-bootstrap';
+import {FormattedMessage, useIntl} from 'react-intl';
+
+import './link_creation_modal.scss';
+
+// --- Type Definitions ---
+type Props = {
+    show: boolean;
+    onHide: () => void;
+    onExited: () => void;
+    // Function to call when the user clicks 'Insert', passing the final text and URL
+    onInsert: (text: string, url: string) => void;
+    // Optional initial text (e.g., text selected by the user in the editor)
+    initialText?: string;
+}
+
+// --- Component Definition ---
+
+export default function LinkCreationModal({
+    show,
+    onHide,
+    onExited,
+    onInsert,
+    initialText = '',
+}: Props) {
+    const {formatMessage} = useIntl();
+    const [displayText, setDisplayText] = useState(initialText);
+    const [url, setUrl] = useState('');
+
+    const [urlError, setUrlError] = useState('');
+    const [textError, setTextError] = useState('');
+
+    // Update internal state when the modal is shown with initial text
+    useEffect(() => {
+        if (show) {
+            setDisplayText(initialText);
+            setUrl('');
+            setUrlError('');
+            setTextError('');
+        }
+    }, [show, initialText]);
+
+    const handleHide = useCallback(() => {
+        setDisplayText('');
+        setUrl('');
+        setUrlError('');
+        setTextError('');
+        onHide();
+    }, [onHide]);
+
+    const handleSubmit = useCallback(() => {
+        let valid = true;
+        let newUrlError = '';
+        let newTextError = '';
+
+        if (!url.trim()) {
+            newUrlError = formatMessage({
+                id: 'link_modal.error.url_missing',
+                defaultMessage: 'URL is required.',
+            });
+            valid = false;
+        }
+
+        if (!displayText.trim()) {
+            newTextError = formatMessage({
+                id: 'link_modal.error.text_missing',
+                defaultMessage: 'Display text is required.',
+            });
+            valid = false;
+        }
+
+        setUrlError(newUrlError);
+        setTextError(newTextError);
+
+        if (valid) {
+            onInsert(displayText.trim(), url.trim());
+            handleHide();
+        }
+    }, [url, displayText, onInsert, handleHide, formatMessage]);
+
+    const handleKeyDown = useCallback((e: React.KeyboardEvent<HTMLInputElement>) => {
+        if (e.key === 'Enter') {
+            e.preventDefault();
+            handleSubmit();
+        }
+    }, [handleSubmit]);
+
+    const modalTitle = formatMessage({
+        id: 'link_modal.title',
+        defaultMessage: 'Insert Link',
+    });
+
+    return (
+        <Modal
+            dialogClassName='a11y__modal link-creation-modal'
+            show={show}
+            onHide={handleHide}
+            onExited={onExited}
+            role='dialog'
+            aria-labelledby='linkCreationModalLabel'
+        >
+            <Modal.Header
+                id='linkCreationModalLabel'
+                closeButton={true}
+            >
+                <h5 className='modal-title'>{modalTitle}</h5>
+            </Modal.Header>
+            <Modal.Body>
+                <div className='form-group'>
+                    <label htmlFor='linkModalText'>
+                        <FormattedMessage
+                            id='link_modal.text_label'
+                            defaultMessage='Text to display'
+                        />
+                    </label>
+                    <input
+                        id='linkModalText'
+                        className={classNames('form-control', {'has-error': textError})}
+                        type='text'
+                        value={displayText}
+                        onChange={(e) => setDisplayText(e.target.value)}
+                        onKeyDown={handleKeyDown}
+                        autoFocus={!initialText} // Focus text field if empty
+                        maxLength={100} // Arbitrary limit, adjust as needed
+                        placeholder={formatMessage({id: 'link_modal.text_placeholder', defaultMessage: 'Display Text'})}
+                    />
+                    {textError && <div className='has-error__message'>{textError}</div>}
+                </div>
+                <div className='form-group'>
+                    <label htmlFor='linkModalURL'>
+                        <FormattedMessage
+                            id='link_modal.url_label'
+                            defaultMessage='Link URL'
+                        />
+                    </label>
+                    <input
+                        id='linkModalURL'
+                        className={classNames('form-control', {'has-error': urlError})}
+                        type='url'
+                        value={url}
+                        onChange={(e) => setUrl(e.target.value)}
+                        onKeyDown={handleKeyDown}
+                        autoFocus={Boolean(initialText)} // Focus URL field if text is pre-filled
+                        placeholder='https://example.com'
+                    />
+                    {urlError && <div className='has-error__message'>{urlError}</div>}
+                </div>
+            </Modal.Body>
+            <Modal.Footer>
+                <button
+                    id='linkModalCancelButton'
+                    type='button'
+                    className='btn btn-tertiary'
+                    onClick={handleHide}
+                >
+                    <FormattedMessage
+                        id='link_modal.cancel'
+                        defaultMessage='Cancel'
+                    />
+                </button>
+                <button
+                    id='linkModalInsertButton'
+                    type='button'
+                    className='btn btn-primary'
+                    onClick={handleSubmit}
+                    disabled={!url.trim() || !displayText.trim()}
+                >
+                    <FormattedMessage
+                        id='link_modal.insert'
+                        defaultMessage='Insert'
+                    />
+                </button>
+            </Modal.Footer>
+        </Modal>
+    );
+}
\ No newline at end of file
diff --git a/webapp/channels/src/components/advanced_text_editor/advanced_text_editor.tsx b/webapp/channels/src/components/advanced_text_editor/advanced_text_editor.tsx
index cfb3d208f36..99345427dd3 100644
--- a/webapp/channels/src/components/advanced_text_editor/advanced_text_editor.tsx
+++ b/webapp/channels/src/components/advanced_text_editor/advanced_text_editor.tsx
@@ -88,6 +88,7 @@ import useRewrite from './use_rewrite';
 import useSubmit from './use_submit';
 import useTextboxFocus from './use_textbox_focus';
 import useUploadFiles from './use_upload_files';
+import LinkCreationModal from './LinkCreationModal';
 
 import './advanced_text_editor.scss';
 
@@ -136,6 +137,7 @@ const AdvancedTextEditor = ({
     const getChannelSelector = useMemo(makeGetChannel, []);
     const getDraftSelector = useMemo(makeGetDraft, []);
     const getDisplayName = useMemo(makeGetDisplayName, []);
+    
 
     let textboxId: string;
     if (isInEditMode) {
@@ -225,6 +227,8 @@ const AdvancedTextEditor = ({
     const [isMessageLong, setIsMessageLong] = useState(false);
     const [renderScrollbar, setRenderScrollbar] = useState(false);
     const [keepEditorInFocus, setKeepEditorInFocus] = useState(false);
+    const [showLinkModal, setShowLinkModal] = useState(false);
+    const [initialLinkText, setInitialLinkText] = useState('');
 
     const readOnlyChannel = !canPost;
     const hasDraftMessage = Boolean(draft.message);
@@ -298,6 +302,41 @@ const AdvancedTextEditor = ({
         });
     }, [showPreview, handleDraftChange, draft]);
 
+    const getCurrentValue = useCallback(() => textboxRef.current?.getInputBox().value, [textboxRef]);
+
+    const getCurrentSelection = useCallback(() => {
+        const input = textboxRef.current?.getInputBox();
+
+        return {
+            start: input?.selectionStart || 0,
+            end: input?.selectionEnd || 0,
+        };
+    }, [textboxRef]);
+
+
+
+const insertLink = useCallback((text: string, url: string) => {
+    const linkMarkdown = `[${text}](${url})`;
+    
+    insertRawMarkdown({markdown: linkMarkdown}); 
+
+    setShowLinkModal(false);
+}, [insertRawMarkdown, setShowLinkModal]);
+
+    const openLinkModal = useCallback(() => {
+        if (showPreview) {
+            return;
+        }
+
+        const selection = getCurrentSelection();
+        const fullMessage = getCurrentValue() || '';
+        const selectedText = fullMessage.substring(selection.start, selection.end) || '';
+
+        setInitialLinkText(selectedText);
+        
+        setShowLinkModal(true);
+    }, [showPreview, getCurrentSelection, getCurrentValue]);
+
     const toggleAdvanceTextEditor = useCallback(() => {
         dispatch(savePreferences(currentUserId, [{
             category: Preferences.ADVANCED_TEXT_EDITOR,
@@ -450,6 +489,7 @@ const AdvancedTextEditor = ({
         toggleEmojiPicker,
         isInEditMode,
         handleCancel,
+        openLinkModal,
     );
 
     const handleSubmitWithEvent = useCallback((e: React.FormEvent) => {
@@ -493,16 +533,7 @@ const AdvancedTextEditor = ({
      * down the current message value that came from the parents state was not optimal,
      * although still working as expected
      */
-    const getCurrentValue = useCallback(() => textboxRef.current?.getInputBox().value, [textboxRef]);
-
-    const getCurrentSelection = useCallback(() => {
-        const input = textboxRef.current?.getInputBox();
-
-        return {
-            start: input.selectionStart,
-            end: input.selectionEnd,
-        };
-    }, [textboxRef]);
+   
 
     const handleWidthChange = useCallback((width: number) => {
         const input = textboxRef.current?.getInputBox();
@@ -702,6 +733,7 @@ const AdvancedTextEditor = ({
                     disableControls={showPreview}
                     additionalControls={additionalControls}
                     location={location}
+                    openLinkModal={openLinkModal}
                 />
             )}
             slot2={null}
@@ -753,6 +785,15 @@ const AdvancedTextEditor = ({
                     postId={rootId}
                 />
             )}
+            <LinkCreationModal
+                show={showLinkModal}
+                onHide={() => setShowLinkModal(false)}
+                onExited={() => {
+                    // Placeholder for cleanup if needed
+                }}
+                onInsert={insertLink}
+                initialText={initialLinkText}
+            />
             <div
                 className={classNames('AdvancedTextEditor', {
                     'AdvancedTextEditor__attachment-disabled': !canUploadFiles,
diff --git a/webapp/channels/src/components/advanced_text_editor/formatting_bar/formatting_bar.tsx b/webapp/channels/src/components/advanced_text_editor/formatting_bar/formatting_bar.tsx
index b8012ad273b..57d0292adee 100644
--- a/webapp/channels/src/components/advanced_text_editor/formatting_bar/formatting_bar.tsx
+++ b/webapp/channels/src/components/advanced_text_editor/formatting_bar/formatting_bar.tsx
@@ -130,6 +130,8 @@ interface FormattingBarProps {
      * e.g: message priority picker
      */
     additionalControls?: React.ReactNodeArray;
+
+    openLinkModal: () => void;
 }
 
 const DEFAULT_MIN_MODE_X_COORD = 55;
@@ -183,6 +185,15 @@ const FormattingBar = (props: FormattingBarProps): JSX.Element => {
         if (disableControls) {
             return;
         }
+        if (mode === 'link') {
+        props.openLinkModal();
+        
+        // If hidden controls are open, close them after opening the modal
+        if (showHiddenControls) {
+            setShowHiddenControls(false); // Set to FALSE to close
+        }
+        return; 
+    }
 
         // get the current selection values and return early (doing nothing) when we don't get valid values
         const {start, end} = getCurrentSelection();
diff --git a/webapp/channels/src/components/advanced_text_editor/use_key_handler.tsx b/webapp/channels/src/components/advanced_text_editor/use_key_handler.tsx
index 70c68797bc8..dc8d86bb3d1 100644
--- a/webapp/channels/src/components/advanced_text_editor/use_key_handler.tsx
+++ b/webapp/channels/src/components/advanced_text_editor/use_key_handler.tsx
@@ -48,6 +48,7 @@ const useKeyHandler = (
     toggleEmojiPicker: () => void,
     isInEditMode?: boolean,
     onCancel?: () => void,
+    openLinkModal?: () => void,
 ): [
         (e: React.KeyboardEvent<TextboxElement>) => void,
         (e: React.KeyboardEvent<TextboxElement>) => void,
@@ -238,26 +239,18 @@ const useKeyHandler = (
                     selectionEnd,
                     message: value,
                 });
-            } else if (Utils.isTextSelectedInPostOrReply(e) && Keyboard.isKeyPressed(e, KeyCodes.K)) {
+            } else if (Keyboard.isKeyPressed(e, KeyCodes.K)) {
                 e.stopPropagation();
                 e.preventDefault();
-                applyMarkdown({
-                    markdownMode: 'link',
-                    selectionStart,
-                    selectionEnd,
-                    message: value,
-                });
+
+
+                openLinkModal?.();
             }
         } else if (ctrlAltCombo && !caretIsWithinCodeBlock) {
             if (Keyboard.isKeyPressed(e, KeyCodes.K)) {
                 e.stopPropagation();
                 e.preventDefault();
-                applyMarkdown({
-                    markdownMode: 'link',
-                    selectionStart,
-                    selectionEnd,
-                    message: value,
-                });
+                openLinkModal?.();
             } else if (Keyboard.isKeyPressed(e, KeyCodes.C)) {
                 e.stopPropagation();
                 e.preventDefault();
@@ -366,6 +359,7 @@ const useKeyHandler = (
         toggleShowPreview,
         isInEditMode,
         location,
+        openLinkModal,
     ]);
 
     // Register paste events
diff --git a/webapp/channels/src/utils/markdown/apply_markdown.ts b/webapp/channels/src/utils/markdown/apply_markdown.ts
index fa09056dd03..cc12d7c0544 100644
--- a/webapp/channels/src/utils/markdown/apply_markdown.ts
+++ b/webapp/channels/src/utils/markdown/apply_markdown.ts
@@ -517,3 +517,14 @@ function findWordStart(text: string, start: number) {
 function isSelectionMultiline(message: string, selectionStart: number, selectionEnd: number) {
     return message.slice(selectionStart, selectionEnd).includes('\n');
 }
+export type ApplyRawMarkdownOptions = {
+    markdown: string;
+}
+
+export function insertRawMarkdown({markdown}: ApplyRawMarkdownOptions): ApplyMarkdownReturnValue {
+    return {
+        message: markdown,
+        selectionStart: markdown.length,
+        selectionEnd: markdown.length,
+    };
+}
\ No newline at end of file