diff --git a/src/google/adk/utils/instructions_utils.py b/src/google/adk/utils/instructions_utils.py
index c42d674d75..41239c7109 100644
--- a/src/google/adk/utils/instructions_utils.py
+++ b/src/google/adk/utils/instructions_utils.py
@@ -42,6 +42,7 @@
 async def inject_session_state(
     template: str,
     readonly_context: ReadonlyContext,
+    use_jinja2: bool = False,
 ) -> str:
   """Populates values in the instruction template, e.g. state, artifact, etc.
 
@@ -69,13 +70,43 @@ async def build_instruction(
   )
   ```
 
+  To use Jinja2 templating for advanced use cases such as conditionals and
+  loops, set ``use_jinja2=True``:
+
+  ```
+  async def build_instruction(readonly_context: ReadonlyContext) -> str:
+    return await inject_session_state(
+        '{% if user_name %}Hello {{ user_name }}{% endif %}',
+        readonly_context,
+        use_jinja2=True,
+    )
+  ```
+
+  When ``use_jinja2=True`` the session state keys are available directly as
+  template variables.  An async ``artifact(filename)`` callable is also
+  injected so you can load artifacts inline:
+  ``{{ artifact('my_file.txt') }}``.
+
   Args:
     template: The instruction template.
-    readonly_context: The read-only context
+    readonly_context: The read-only context.
+    use_jinja2: When True, render the template with Jinja2 instead of the
+      default regex-based substitution.  Defaults to False to preserve
+      backward compatibility.
 
   Returns:
     The instruction template with values populated.
   """
+  if use_jinja2:
+    return await _render_with_jinja2(template, readonly_context)
+  return await _render_with_regex(template, readonly_context)
+
+
+async def _render_with_regex(
+    template: str,
+    readonly_context: ReadonlyContext,
+) -> str:
+  """Renders the template using the default regex-based substitution."""
 
   # The substitution pattern requires a '{', so a template without one can
   # never match. Return it as-is to avoid the regex scan on every LLM call,
@@ -142,6 +173,54 @@ async def _replace_match(match) -> str:
   return await _async_sub(r'{+[^{}]*}+', _replace_match, template)
 
 
+async def _render_with_jinja2(
+    template: str,
+    readonly_context: ReadonlyContext,
+) -> str:
+  """Renders the template using Jinja2.
+
+  Session state keys are exposed directly as template variables.  An async
+  ``artifact(filename)`` helper is also available inside the template.
+
+  Args:
+    template: A Jinja2 template string.
+    readonly_context: The read-only context.
+
+  Returns:
+    The rendered string.
+  """
+  try:
+    from jinja2 import Environment  # pylint: disable=g-import-not-at-top
+  except ImportError as e:
+    raise ImportError(
+        'Jinja2 is required when use_jinja2=True. '
+        'Install it with: pip install jinja2'
+    ) from e
+
+  invocation_context = readonly_context._invocation_context
+
+  async def _artifact(filename: str) -> str:
+    """Async helper exposed to Jinja2 templates for loading artifacts."""
+    if invocation_context.artifact_service is None:
+      raise ValueError('Artifact service is not initialized.')
+    result = await invocation_context.artifact_service.load_artifact(
+        app_name=invocation_context.session.app_name,
+        user_id=invocation_context.session.user_id,
+        session_id=invocation_context.session.id,
+        filename=filename,
+    )
+    if result is None:
+      raise KeyError(f'Artifact {filename} not found.')
+    return str(result)
+
+  env = Environment(enable_async=True)  # pylint: disable=invalid-name
+  jinja_template = env.from_string(template)
+
+  ctx = dict(invocation_context.session.state)
+  ctx['artifact'] = _artifact
+  return await jinja_template.render_async(**ctx)
+
+
 def _is_valid_state_name(var_name):
   """Checks if the variable name is a valid state name.
 
diff --git a/tests/unittests/utils/test_instructions_utils.py b/tests/unittests/utils/test_instructions_utils.py
index 78e84d8268..99226e3e85 100644
--- a/tests/unittests/utils/test_instructions_utils.py
+++ b/tests/unittests/utils/test_instructions_utils.py
@@ -292,3 +292,87 @@ def test_llm_agent_reexports_same_instruction_provider():
   # Existing importers rely on `from ...llm_agent import InstructionProvider`;
   # it must remain the exact same object after moving the alias here.
   assert LlmAgentInstructionProvider is InstructionProvider
+
+
+# ---------------------------------------------------------------------------
+# Jinja2-based templating (use_jinja2=True)
+# ---------------------------------------------------------------------------
+
+
+@pytest.mark.asyncio
+async def test_inject_session_state_jinja2_basic_variable():
+  invocation_context = await _create_test_readonly_context(
+      state={"user_name": "Alice"}
+  )
+  result = await instructions_utils.inject_session_state(
+      "Hello {{ user_name }}!",
+      invocation_context,
+      use_jinja2=True,
+  )
+  assert result == "Hello Alice!"
+
+
+@pytest.mark.asyncio
+async def test_inject_session_state_jinja2_conditional():
+  invocation_context = await _create_test_readonly_context(
+      state={"is_admin": True}
+  )
+  result = await instructions_utils.inject_session_state(
+      "{% if is_admin %}Admin mode{% else %}User mode{% endif %}",
+      invocation_context,
+      use_jinja2=True,
+  )
+  assert result == "Admin mode"
+
+
+@pytest.mark.asyncio
+async def test_inject_session_state_jinja2_for_loop():
+  invocation_context = await _create_test_readonly_context(
+      state={"items": ["a", "b", "c"]}
+  )
+  result = await instructions_utils.inject_session_state(
+      "{% for item in items %}{{ item }}{% endfor %}",
+      invocation_context,
+      use_jinja2=True,
+  )
+  assert result == "abc"
+
+
+@pytest.mark.asyncio
+async def test_inject_session_state_jinja2_artifact():
+  mock_artifact_service = MockArtifactService({"doc.txt": "file content"})
+  invocation_context = await _create_test_readonly_context(
+      artifact_service=mock_artifact_service
+  )
+  result = await instructions_utils.inject_session_state(
+      "Content: {{ artifact('doc.txt') }}",
+      invocation_context,
+      use_jinja2=True,
+  )
+  assert result == "Content: file content"
+
+
+@pytest.mark.asyncio
+async def test_inject_session_state_jinja2_missing_artifact_raises():
+  mock_artifact_service = MockArtifactService({})
+  invocation_context = await _create_test_readonly_context(
+      artifact_service=mock_artifact_service
+  )
+  with pytest.raises(KeyError, match="Artifact missing.txt not found."):
+    await instructions_utils.inject_session_state(
+        "{{ artifact('missing.txt') }}",
+        invocation_context,
+        use_jinja2=True,
+    )
+
+
+@pytest.mark.asyncio
+async def test_inject_session_state_default_still_uses_regex():
+  """Passing no use_jinja2 flag must still use the regex path."""
+  invocation_context = await _create_test_readonly_context(
+      state={"key": "value"}
+  )
+  result = await instructions_utils.inject_session_state(
+      "The key is {key}.", invocation_context
+  )
+  assert result == "The key is value."