diff --git a/apptrust/commands/application/create_app_cmd.go b/apptrust/commands/application/create_app_cmd.go
index c0bd0d7..20802d5 100644
--- a/apptrust/commands/application/create_app_cmd.go
+++ b/apptrust/commands/application/create_app_cmd.go
@@ -1,6 +1,8 @@
 package application
 
 import (
+	"encoding/json"
+
 	pluginsCommon "github.com/jfrog/jfrog-cli-core/v2/plugins/common"
 
 	"github.com/jfrog/jfrog-cli-application/apptrust/commands/utils"
@@ -9,7 +11,9 @@ import (
 	commonCLiCommands "github.com/jfrog/jfrog-cli-core/v2/common/commands"
 	"github.com/jfrog/jfrog-cli-core/v2/plugins/components"
 	coreConfig "github.com/jfrog/jfrog-cli-core/v2/utils/config"
+	"github.com/jfrog/jfrog-cli-core/v2/utils/coreutils"
 	"github.com/jfrog/jfrog-client-go/utils/errorutils"
+	"github.com/jfrog/jfrog-client-go/utils/io/fileutils"
 
 	"github.com/jfrog/jfrog-cli-application/apptrust/app"
 	"github.com/jfrog/jfrog-cli-application/apptrust/commands"
@@ -42,12 +46,31 @@ func (cac *createAppCommand) CommandName() string {
 
 func (cac *createAppCommand) buildRequestPayload(ctx *components.Context) (*model.AppDescriptor, error) {
 	applicationKey := ctx.Arguments[0]
-	applicationName := ctx.GetStringFlagValue(commands.ApplicationNameFlag)
-	if applicationName == "" {
-		// Default to the application key if application name is not provided
-		applicationName = applicationKey
+
+	var appDescriptor *model.AppDescriptor
+	var err error
+
+	if ctx.IsFlagSet(commands.SpecFlag) {
+		appDescriptor, err = cac.loadFromSpec(ctx)
+	} else {
+		appDescriptor, err = cac.buildFromFlags(ctx)
+	}
+
+	if err != nil {
+		return nil, err
+	}
+
+	appDescriptor.ApplicationKey = applicationKey
+	if appDescriptor.ApplicationName == "" {
+		appDescriptor.ApplicationName = applicationKey
 	}
 
+	return appDescriptor, nil
+}
+
+func (cac *createAppCommand) buildFromFlags(ctx *components.Context) (*model.AppDescriptor, error) {
+	applicationName := ctx.GetStringFlagValue(commands.ApplicationNameFlag)
+
 	project := ctx.GetStringFlagValue(commands.ProjectFlag)
 	if project == "" {
 		return nil, errorutils.CheckErrorf("--%s is mandatory", commands.ProjectFlag)
@@ -83,7 +106,6 @@ func (cac *createAppCommand) buildRequestPayload(ctx *components.Context) (*mode
 
 	return &model.AppDescriptor{
 		ApplicationName:     applicationName,
-		ApplicationKey:      applicationKey,
 		Description:         description,
 		ProjectKey:          project,
 		MaturityLevel:       maturityLevel,
@@ -94,9 +116,34 @@ func (cac *createAppCommand) buildRequestPayload(ctx *components.Context) (*mode
 	}, nil
 }
 
+func (cac *createAppCommand) loadFromSpec(ctx *components.Context) (*model.AppDescriptor, error) {
+	specFilePath := ctx.GetStringFlagValue(commands.SpecFlag)
+	spec := new(model.AppDescriptor)
+	specVars := coreutils.SpecVarsStringToMap(ctx.GetStringFlagValue(commands.SpecVarsFlag))
+	content, err := fileutils.ReadFile(specFilePath)
+	if errorutils.CheckError(err) != nil {
+		return nil, err
+	}
+
+	if len(specVars) > 0 {
+		content = coreutils.ReplaceVars(content, specVars)
+	}
+
+	err = json.Unmarshal(content, spec)
+	if errorutils.CheckError(err) != nil {
+		return nil, err
+	}
+
+	if spec.ProjectKey == "" {
+		return nil, errorutils.CheckErrorf("project_key is mandatory in spec file")
+	}
+
+	return spec, nil
+}
+
 func (cac *createAppCommand) prepareAndRunCommand(ctx *components.Context) error {
-	if len(ctx.Arguments) != 1 {
-		return pluginsCommon.WrongNumberOfArgumentsHandler(ctx)
+	if err := validateCreateAppContext(ctx); err != nil {
+		return err
 	}
 
 	var err error
@@ -113,6 +160,37 @@ func (cac *createAppCommand) prepareAndRunCommand(ctx *components.Context) error
 	return commonCLiCommands.Exec(cac)
 }
 
+func validateCreateAppContext(ctx *components.Context) error {
+	if err := validateNoSpecAndFlagsTogether(ctx); err != nil {
+		return err
+	}
+	if len(ctx.Arguments) != 1 {
+		return pluginsCommon.WrongNumberOfArgumentsHandler(ctx)
+	}
+	return nil
+}
+
+func validateNoSpecAndFlagsTogether(ctx *components.Context) error {
+	if ctx.IsFlagSet(commands.SpecFlag) {
+		otherAppFlags := []string{
+			commands.ApplicationNameFlag,
+			commands.ProjectFlag,
+			commands.DescriptionFlag,
+			commands.BusinessCriticalityFlag,
+			commands.MaturityLevelFlag,
+			commands.LabelsFlag,
+			commands.UserOwnersFlag,
+			commands.GroupOwnersFlag,
+		}
+		for _, flag := range otherAppFlags {
+			if ctx.IsFlagSet(flag) {
+				return errorutils.CheckErrorf("the flag --%s is not allowed when --spec is provided.", flag)
+			}
+		}
+	}
+	return nil
+}
+
 func GetCreateAppCommand(appContext app.Context) components.Command {
 	cmd := &createAppCommand{
 		applicationService: appContext.GetApplicationService(),
diff --git a/apptrust/commands/application/create_app_cmd_test.go b/apptrust/commands/application/create_app_cmd_test.go
index cc1b454..bb47e73 100644
--- a/apptrust/commands/application/create_app_cmd_test.go
+++ b/apptrust/commands/application/create_app_cmd_test.go
@@ -15,15 +15,36 @@ import (
 	"go.uber.org/mock/gomock"
 )
 
-func TestCreateAppCommand_Run(t *testing.T) {
+func TestCreateAppCommand_Run_Flags(t *testing.T) {
 	ctrl := gomock.NewController(t)
 	defer ctrl.Finish()
 
-	serverDetails := &config.ServerDetails{Url: "https://example.com"}
+	ctx := &components.Context{
+		Arguments: []string{"app-key"},
+	}
+	ctx.AddStringFlag("application-name", "test-app")
+	ctx.AddStringFlag("project", "test-project")
+	ctx.AddStringFlag("desc", "Test application")
+	ctx.AddStringFlag("business-criticality", "high")
+	ctx.AddStringFlag("maturity-level", "production")
+	ctx.AddStringFlag("labels", "env=prod;region=us-east")
+	ctx.AddStringFlag("user-owners", "john.doe;jane.smith")
+	ctx.AddStringFlag("group-owners", "devops;security")
+	ctx.AddStringFlag("url", "https://example.com")
+
 	requestPayload := &model.AppDescriptor{
-		ApplicationKey:  "app-key",
-		ApplicationName: "app-name",
-		ProjectKey:      "proj-key",
+		ApplicationKey:      "app-key",
+		ApplicationName:     "test-app",
+		ProjectKey:          "test-project",
+		Description:         "Test application",
+		BusinessCriticality: "high",
+		MaturityLevel:       "production",
+		Labels: map[string]string{
+			"env":    "prod",
+			"region": "us-east",
+		},
+		UserOwners:  []string{"john.doe", "jane.smith"},
+		GroupOwners: []string{"devops", "security"},
 	}
 
 	mockAppService := mockapps.NewMockApplicationService(ctrl)
@@ -31,11 +52,10 @@ func TestCreateAppCommand_Run(t *testing.T) {
 
 	cmd := &createAppCommand{
 		applicationService: mockAppService,
-		serverDetails:      serverDetails,
 		requestBody:        requestPayload,
 	}
 
-	err := cmd.Run()
+	err := cmd.prepareAndRunCommand(ctx)
 	assert.NoError(t, err)
 }
 
@@ -84,3 +104,199 @@ func TestCreateAppCommand_WrongNumberOfArguments(t *testing.T) {
 	assert.Error(t, err)
 	assert.Contains(t, err.Error(), "Wrong number of arguments")
 }
+
+func TestCreateAppCommand_MissingProjectFlag(t *testing.T) {
+	ctrl := gomock.NewController(t)
+	defer ctrl.Finish()
+
+	ctx := &components.Context{
+		Arguments: []string{"app-key"},
+	}
+	ctx.AddStringFlag("application-name", "test-app")
+	ctx.AddStringFlag("url", "https://example.com")
+	mockAppService := mockapps.NewMockApplicationService(ctrl)
+
+	cmd := &createAppCommand{
+		applicationService: mockAppService,
+	}
+
+	err := cmd.prepareAndRunCommand(ctx)
+	assert.Error(t, err)
+	assert.Contains(t, err.Error(), "--project is mandatory")
+}
+
+func TestCreateAppCommand_Run_SpecFile(t *testing.T) {
+	tests := []struct {
+		name           string
+		specPath       string
+		args           []string
+		expectsError   bool
+		errorContains  string
+		expectsPayload *model.AppDescriptor
+	}{
+		{
+			name:     "minimal spec file",
+			specPath: "./testfiles/minimal-spec.json",
+			args:     []string{"app-min"},
+			expectsPayload: &model.AppDescriptor{
+				ApplicationKey:  "app-min",
+				ApplicationName: "app-min",
+				ProjectKey:      "test-project",
+			},
+		},
+		{
+			name:     "full spec file",
+			specPath: "./testfiles/full-spec.json",
+			args:     []string{"app-full"},
+			expectsPayload: &model.AppDescriptor{
+				ApplicationKey:      "app-full",
+				ApplicationName:     "test-app-full",
+				ProjectKey:          "test-project",
+				Description:         "A comprehensive test application",
+				MaturityLevel:       "production",
+				BusinessCriticality: "high",
+				Labels: map[string]string{
+					"environment": "production",
+					"region":      "us-east-1",
+					"team":        "devops",
+				},
+				UserOwners:  []string{"john.doe", "jane.smith"},
+				GroupOwners: []string{"devops-team", "security-team"},
+			},
+		},
+		{
+			name:          "invalid spec file",
+			specPath:      "./testfiles/invalid-spec.json",
+			args:          []string{"app-invalid"},
+			expectsError:  true,
+			errorContains: "unexpected end of JSON input",
+		},
+		{
+			name:          "missing project key",
+			specPath:      "./testfiles/missing-project-spec.json",
+			args:          []string{"app-no-project"},
+			expectsError:  true,
+			errorContains: "project_key is mandatory in spec file",
+		},
+		{
+			name:          "non-existent spec file",
+			specPath:      "./testfiles/non-existent.json",
+			args:          []string{"app-nonexistent"},
+			expectsError:  true,
+			errorContains: "no such file or directory",
+		},
+		{
+			name:     "spec with application_key that should be ignored",
+			specPath: "./testfiles/spec-with-app-key.json",
+			args:     []string{"command-line-app-key"},
+			expectsPayload: &model.AppDescriptor{
+				ApplicationKey:  "command-line-app-key",
+				ApplicationName: "test-app",
+				ProjectKey:      "test-project",
+				Description:     "A test application with application_key that should be ignored",
+			},
+		},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			ctrl := gomock.NewController(t)
+			defer ctrl.Finish()
+
+			ctx := &components.Context{
+				Arguments: tt.args,
+			}
+			ctx.AddStringFlag("url", "https://example.com")
+			ctx.AddStringFlag("spec", tt.specPath)
+
+			var actualPayload *model.AppDescriptor
+			mockAppService := mockapps.NewMockApplicationService(ctrl)
+			if !tt.expectsError {
+				mockAppService.EXPECT().CreateApplication(gomock.Any(), gomock.Any()).
+					DoAndReturn(func(_ interface{}, req *model.AppDescriptor) error {
+						actualPayload = req
+						return nil
+					}).Times(1)
+			}
+
+			cmd := &createAppCommand{
+				applicationService: mockAppService,
+			}
+
+			err := cmd.prepareAndRunCommand(ctx)
+			if tt.expectsError {
+				assert.Error(t, err)
+				if tt.errorContains != "" {
+					assert.Contains(t, err.Error(), tt.errorContains)
+				}
+			} else {
+				assert.NoError(t, err)
+				assert.Equal(t, tt.expectsPayload, actualPayload)
+			}
+		})
+	}
+}
+
+func TestCreateAppCommand_Run_SpecVars(t *testing.T) {
+	ctrl := gomock.NewController(t)
+	defer ctrl.Finish()
+
+	expectedPayload := &model.AppDescriptor{
+		ApplicationKey:      "app-with-vars",
+		ApplicationName:     "test-app",
+		ProjectKey:          "test-project",
+		Description:         "A test application for production",
+		MaturityLevel:       "production",
+		BusinessCriticality: "high",
+		Labels: map[string]string{
+			"environment": "production",
+			"region":      "us-east-1",
+		},
+	}
+
+	ctx := &components.Context{
+		Arguments: []string{"app-with-vars"},
+	}
+	ctx.AddStringFlag("spec", "./testfiles/with-vars-spec.json")
+	ctx.AddStringFlag("spec-vars", "PROJECT_KEY=test-project;APP_NAME=test-app;ENVIRONMENT=production;MATURITY_LEVEL=production;CRITICALITY=high;REGION=us-east-1")
+	ctx.AddStringFlag("url", "https://example.com")
+
+	var actualPayload *model.AppDescriptor
+	mockAppService := mockapps.NewMockApplicationService(ctrl)
+	mockAppService.EXPECT().CreateApplication(gomock.Any(), gomock.Any()).
+		DoAndReturn(func(_ interface{}, req *model.AppDescriptor) error {
+			actualPayload = req
+			return nil
+		}).Times(1)
+
+	cmd := &createAppCommand{
+		applicationService: mockAppService,
+	}
+
+	err := cmd.prepareAndRunCommand(ctx)
+	assert.NoError(t, err)
+	assert.Equal(t, expectedPayload, actualPayload)
+}
+
+func TestCreateAppCommand_Error_SpecAndFlags(t *testing.T) {
+	ctrl := gomock.NewController(t)
+	defer ctrl.Finish()
+
+	testSpecPath := "./testfiles/minimal-spec.json"
+	ctx := &components.Context{
+		Arguments: []string{"app-key"},
+	}
+	ctx.AddStringFlag("spec", testSpecPath)
+	ctx.AddStringFlag("project", "test-project")
+	ctx.AddStringFlag("url", "https://example.com")
+
+	mockAppService := mockapps.NewMockApplicationService(ctrl)
+
+	cmd := &createAppCommand{
+		applicationService: mockAppService,
+	}
+
+	err := cmd.prepareAndRunCommand(ctx)
+	assert.Error(t, err)
+	assert.Contains(t, err.Error(), "the flag --project is not allowed when --spec is provided")
+}
diff --git a/apptrust/commands/application/testfiles/full-spec.json b/apptrust/commands/application/testfiles/full-spec.json
new file mode 100644
index 0000000..b65aefc
--- /dev/null
+++ b/apptrust/commands/application/testfiles/full-spec.json
@@ -0,0 +1,20 @@
+{
+  "project_key": "test-project",
+  "application_name": "test-app-full",
+  "description": "A comprehensive test application",
+  "maturity_level": "production",
+  "criticality": "high",
+  "labels": {
+    "environment": "production",
+    "region": "us-east-1",
+    "team": "devops"
+  },
+  "user_owners": [
+    "john.doe",
+    "jane.smith"
+  ],
+  "group_owners": [
+    "devops-team",
+    "security-team"
+  ]
+} 
\ No newline at end of file
diff --git a/apptrust/commands/application/testfiles/invalid-spec.json b/apptrust/commands/application/testfiles/invalid-spec.json
new file mode 100644
index 0000000..d2de572
--- /dev/null
+++ b/apptrust/commands/application/testfiles/invalid-spec.json
@@ -0,0 +1,5 @@
+{
+  "project_key": "test-project",
+  "application_name": "test-app",
+  "description": "A test application with invalid JSON",
+  "unclosed": "value" 
\ No newline at end of file
diff --git a/apptrust/commands/application/testfiles/minimal-spec.json b/apptrust/commands/application/testfiles/minimal-spec.json
new file mode 100644
index 0000000..3b6bcd9
--- /dev/null
+++ b/apptrust/commands/application/testfiles/minimal-spec.json
@@ -0,0 +1,3 @@
+{
+  "project_key": "test-project"
+}
\ No newline at end of file
diff --git a/apptrust/commands/application/testfiles/missing-project-spec.json b/apptrust/commands/application/testfiles/missing-project-spec.json
new file mode 100644
index 0000000..e1904cd
--- /dev/null
+++ b/apptrust/commands/application/testfiles/missing-project-spec.json
@@ -0,0 +1,4 @@
+{
+  "application_name": "test-app",
+  "description": "A test application without project key"
+} 
\ No newline at end of file
diff --git a/apptrust/commands/application/testfiles/spec-with-app-key.json b/apptrust/commands/application/testfiles/spec-with-app-key.json
new file mode 100644
index 0000000..995d0cb
--- /dev/null
+++ b/apptrust/commands/application/testfiles/spec-with-app-key.json
@@ -0,0 +1,6 @@
+{
+  "application_key": "ignored-app-key",
+  "project_key": "test-project",
+  "application_name": "test-app",
+  "description": "A test application with application_key that should be ignored"
+} 
\ No newline at end of file
diff --git a/apptrust/commands/application/testfiles/with-vars-spec.json b/apptrust/commands/application/testfiles/with-vars-spec.json
new file mode 100644
index 0000000..ebbbce5
--- /dev/null
+++ b/apptrust/commands/application/testfiles/with-vars-spec.json
@@ -0,0 +1,11 @@
+{
+  "project_key": "${PROJECT_KEY}",
+  "application_name": "${APP_NAME}",
+  "description": "A test application for ${ENVIRONMENT}",
+  "maturity_level": "${MATURITY_LEVEL}",
+  "criticality": "${CRITICALITY}",
+  "labels": {
+    "environment": "${ENVIRONMENT}",
+    "region": "${REGION}"
+  }
+} 
\ No newline at end of file
diff --git a/apptrust/commands/flags.go b/apptrust/commands/flags.go
index 083b259..ec39b79 100644
--- a/apptrust/commands/flags.go
+++ b/apptrust/commands/flags.go
@@ -66,7 +66,7 @@ var flagsMap = map[string]components.Flag{
 	url:         components.NewStringFlag(url, "JFrog Platform URL.", func(f *components.StringFlag) { f.Mandatory = false }),
 	user:        components.NewStringFlag(user, "JFrog username.", func(f *components.StringFlag) { f.Mandatory = false }),
 	accessToken: components.NewStringFlag(accessToken, "JFrog access token.", func(f *components.StringFlag) { f.Mandatory = false }),
-	ProjectFlag: components.NewStringFlag(ProjectFlag, "Project key associated with the application.", func(f *components.StringFlag) { f.Mandatory = true }),
+	ProjectFlag: components.NewStringFlag(ProjectFlag, "Project key associated with the application.", func(f *components.StringFlag) { f.Mandatory = false }),
 
 	ApplicationKeyFlag:      components.NewStringFlag(ApplicationKeyFlag, "Application key.", func(f *components.StringFlag) { f.Mandatory = false }),
 	PackageTypeFlag:         components.NewStringFlag(PackageTypeFlag, "Package type.", func(f *components.StringFlag) { f.Mandatory = false }),
@@ -78,8 +78,8 @@ var flagsMap = map[string]components.Flag{
 	StageVarsFlag:           components.NewStringFlag(StageVarsFlag, "Promotion stage.", func(f *components.StringFlag) { f.Mandatory = true }),
 	ApplicationNameFlag:     components.NewStringFlag(ApplicationNameFlag, "The display name of the application.", func(f *components.StringFlag) { f.Mandatory = false }),
 	DescriptionFlag:         components.NewStringFlag(DescriptionFlag, "The description of the application.", func(f *components.StringFlag) { f.Mandatory = false }),
-	BusinessCriticalityFlag: components.NewStringFlag(BusinessCriticalityFlag, "The business criticality level. The following values are supported: "+coreutils.ListToText(model.BusinessCriticalityValues), func(f *components.StringFlag) { f.DefaultValue = model.BusinessCriticalityValues[0] }),
-	MaturityLevelFlag:       components.NewStringFlag(MaturityLevelFlag, "The maturity level.", func(f *components.StringFlag) { f.DefaultValue = model.MaturityLevelValues[0] }),
+	BusinessCriticalityFlag: components.NewStringFlag(BusinessCriticalityFlag, "The business criticality level. The following values are supported: "+coreutils.ListToText(model.BusinessCriticalityValues), func(f *components.StringFlag) { f.Mandatory = false }),
+	MaturityLevelFlag:       components.NewStringFlag(MaturityLevelFlag, "The maturity level.", func(f *components.StringFlag) { f.Mandatory = false }),
 	LabelsFlag:              components.NewStringFlag(LabelsFlag, "List of semicolon-separated (;) labels in the form of \"key1=value1;key2=value2;...\" (wrapped by quotes).", func(f *components.StringFlag) { f.Mandatory = false }),
 	UserOwnersFlag:          components.NewStringFlag(UserOwnersFlag, "Comma-separated list of user owners.", func(f *components.StringFlag) { f.Mandatory = false }),
 	GroupOwnersFlag:         components.NewStringFlag(GroupOwnersFlag, "Comma-separated list of group owners.", func(f *components.StringFlag) { f.Mandatory = false }),