diff --git a/docs/docs/specs/engineering/engine.md b/docs/docs/specs/engineering/engine.md
new file mode 100644
index 0000000000..d25fdfc041
--- /dev/null
+++ b/docs/docs/specs/engineering/engine.md
@@ -0,0 +1,60 @@
+---
+title: Engine
+slug: /specs/engine
+---
+
+:::caution
+
+Currently Under Development
+
+:::
+
+## Overview
+
+In the Jan application, engines serve as primary entities with the following capabilities:
+
+- Engine will be installed through `inference-extensions`.
+- Models will depend on engines to do [inference](https://en.wikipedia.org/wiki/Inference_engine).
+- Engine configuration and required metadata will be stored in a json file.
+
+## Folder Structure
+
+- Default parameters for engines are stored in JSON files located in the `/engines` folder.
+- These parameter files are named uniquely with `engine_id`.
+- Engines are referenced directly using `engine_id` in the `model.json` file.
+
+```yaml
+jan/
+    engines/
+        nitro.json
+        openai.json
+        .....
+```
+
+## Engine Default Parameter Files
+
+- Each inference engine requires default parameters to function in cases where user-provided parameters are absent.
+- These parameters are stored in JSON files, structured as simple key-value pairs.
+
+### Example
+
+Here is an example of an engine file for `engine_id` `nitro`:
+
+```js
+{
+    "ctx_len": 512,
+    "ngl": 100,
+    "embedding": false,
+    "n_parallel": 1,
+    "cont_batching": false
+    "prompt_template": "<|im_start|>system\n{system_message}<|im_end|>\n<|im_start|>user\n{prompt}<|im_end|>\n<|im_start|>assistant"
+}
+```
+
+For detailed engine parameters, refer to: [Nitro's Model Settings](https://nitro.jan.ai/features/load-unload#table-of-parameters)
+
+## Adding an Engine
+
+- Engine parameter files are automatically generated upon installing an `inference-extension` in the Jan application.
+
+---
diff --git a/docs/docs/specs/engineering/models.md b/docs/docs/specs/engineering/models.md
index decf8f5e98..9d97244e7b 100644
--- a/docs/docs/specs/engineering/models.md
+++ b/docs/docs/specs/engineering/models.md
@@ -53,9 +53,9 @@ jan/                               # Jan root folder
 
 Here's a standard example `model.json` for a GGUF model.
 
-- `source_url`: https://huggingface.co/TheBloke/zephyr-7B-beta-GGUF/.
 
 ```js
+{
 "id": "zephyr-7b",                  // Defaults to foldername
 "object": "model",                  // Defaults to "model"
 "source_url": "https://huggingface.co/TheBloke/zephyr-7B-beta-GGUF/blob/main/zephyr-7b-beta.Q4_K_M.gguf",
@@ -64,15 +64,16 @@ Here's a standard example `model.json` for a GGUF model.
 "version": "1",                     // Defaults to 1
 "created": 1231231,                 // Defaults to file creation time
 "description": null,                // Defaults to null
-"state": enum[null, "downloading", "ready", "starting", "stopping", ...]
+"state": enum[null, ready"]
 "format": "ggufv3",                 // Defaults to "ggufv3"
-"settings": {                       // Models are initialized with settings
-    "ctx_len": 2048,
+"egine": "nitro",                // engine_id specified in jan/engine folder 
+"engine_parameters": {              // Engine parameters inside model.json can override 
+    "ctx_len": 2048,                // the value inside the base engine.json
     "ngl": 100,
     "embedding": true,
     "n_parallel": 4,
 },
-"parameters": {                     // Models are called parameters
+"model_parameters": {                     // Models are called parameters
     "stream": true,
     "max_tokens": 2048,
     "stop": ["<endofstring>"],      // This usually can be left blank, only used with specific need from model author
@@ -85,9 +86,10 @@ Here's a standard example `model.json` for a GGUF model.
 "assets": [                         // Defaults to current dir
     "file://.../zephyr-7b-q4_k_m.bin",
 ]
+}
 ```
 
-The model settings in the example can be found at: [Nitro's model settings](https://nitro.jan.ai/features/load-unload#table-of-parameters)
+The engine parameters in the example can be found at: [Nitro's model settings](https://nitro.jan.ai/features/load-unload#table-of-parameters)
 
 The model parameters in the example can be found at: [Nitro's model parameters](https://nitro.jan.ai/api-reference#tag/Chat-Completion)
 
diff --git a/docs/sidebars.js b/docs/sidebars.js
index edef458cd7..384f47e9dd 100644
--- a/docs/sidebars.js
+++ b/docs/sidebars.js
@@ -81,6 +81,7 @@ const sidebars = {
       items: [
         "specs/engineering/chats",
         "specs/engineering/models",
+        "specs/engineering/engine",
         "specs/engineering/threads",
         "specs/engineering/messages",
         "specs/engineering/assistants",