diff --git a/eng/design-notes/recipes/2026-05-direct-recipe-modules.md b/eng/design-notes/recipes/2026-05-direct-recipe-modules.md
new file mode 100644
index 0000000000..da4384014f
--- /dev/null
+++ b/eng/design-notes/recipes/2026-05-direct-recipe-modules.md
@@ -0,0 +1,224 @@
+# Topic: Direct Recipe Modules
+
+* **Author**: Reshma Abdul Rahim (@Reshrahim)
+
+## Topic Summary
+
+Direct Recipe Module Support enables platform engineers to use any standard Bicep or Terraform module as a Radius Recipe without writing a Radius-specific wrapper. Today, using a module as a Radius Recipe requires a wrapper that conforms to Radius conventions (a `context` input variable, a structured `result` output). This feature eliminates the wrapper: point `location` directly at a standard module, and the system handles input resolution (injecting Radius context) and output resolution (mapping module outputs to resource properties) externally.
+
+### Top level goals
+
+- Enable platform engineers to leverage community owned Terraform registry modules and Azure Verified Modules directly as Radius Recipes
+- Eliminate the need to write a Recipe wrapper, publish, and maintain these Recipes separately from the underlying module
+- Eliminate the need for Radius to maintain a catalog of wrapped Recipes in the `resource-types-contrib` repository thus reducing maintenance overhead and surface area for supply chain attacks
+  
+### Non-goals (out of scope)
+
+- Local filesystem paths as `location` sources
+- Chained/nested ternary expressions (V1 supports single-level only)
+- Automatic module version bumping
+- Custom retry logic for module fetch failures (delegated to underlying IaC engine)
+- New observability infrastructure (uses existing logging, tracing, metrics)
+
+## User profile and challenges
+
+### User persona(s)
+
+**Platform Engineer**: Responsible for defining infrastructure recipes that application developers consume. Manages recipe packs, environments, and provider configurations. Typically works across multiple teams and maintains a catalog of infrastructure patterns.
+
+**Application Developer**: Consumes recipes by declaring resources with properties (e.g., `database: 'mydb'`, `size: 's'`). Does not need to understand the underlying IaC module or infrastructure details.
+
+### Challenge(s) faced by the user
+
+1. **Adoption friction** — Every module requires a custom recipe wrapper that must be published and versioned separately before it can be used. Using a community Terraform module requires writing a Recipe wrapper, publishing the wrapper to a distribution source and then adding it to Recipe packs for consumption.
+
+2. **Maintenance burden** — Upstream module updates require wrapper changes, validation, and republishing, creating version drift over time. Platform engineers must track upstream releases and update wrappers accordingly.
+
+3. **Ecosystem lockout** — Thousands of production-ready community modules (Terraform registry, Azure Verified Modules) cannot be used directly, limiting the value proposition of Radius recipes.
+
+### Positive user outcome
+
+Platform engineers can easily configure a recipe using any existing module setting `location` directly — zero wrapping, zero republishing. The entire Terraform and Bicep module ecosystem becomes immediately usable as Radius recipes.
+
+## Key scenarios
+
+### Scenario 1: Terraform Registry Module
+
+A platform engineer sets `location` to a Terraform registry path (e.g., `terraform-aws-modules/rds/aws`) and the system deploys it by automatically resolving developer set properties via `context` as Terraform input variables, and mapping module outputs to resource properties via the `outputs` field.
+
+### Scenario 2: Azure Verified Modules (OCI)
+
+A platform engineer sets `location` to an Azure Verified Module OCI reference (e.g., `br:mcr.microsoft.com/bicep/avm/res/storage/storage-account:0.14.3`) and the system deploys it via ARM, passing resolved parameters and mapping outputs to resource properties via the `outputs` field.
+
+### Scenario 3: Git-hosted Terraform Module
+
+A platform engineer references a private or public Git-hosted module (`git::https://github.com/org/module.git//subdir?ref=v2.0`) and the system clones and executes it.
+
+## Key dependencies and risks
+
+- **Community module coverage** — Not every Radius resource type will have a suitable community module available. Platform engineers may still need to author custom modules for resource types without community coverage or where community modules don't align with organizational requirements.
+- **Terraform version compatibility** — Direct modules may use features from newer Terraform versions. Mitigation: Terraform settings feature enables specifying the Terraform version.
+- **Module API stability** — Direct modules expose platform engineers to upstream breaking changes. Mitigation: version pinning via `?ref=` for Git or registry version constraints.
+- **Expression resolution correctness** — Unresolved `{{context.*}}` expressions are left as literal strings, which may cause cryptic downstream errors from the IaC engine. Mitigation: clear documentation of available expression paths.
+
+## Current state
+
+Radius currently supports recipes through wrapped modules that conform to specific conventions:
+- **Terraform**: Module must declare a `context` input variable and produce a structured `result` output
+- **Bicep**: Module must accept a `context` parameter and produce a `result` output
+
+Recipe Packs (`Radius.Core/recipePacks`) were introduced to group recipe definitions by resource type. This feature builds on Recipe Packs by extending `RecipeDefinition` with `outputs` mapping and broadening `location` to accept standard module sources.
+
+## Details of user problem
+
+When I want to use a community Terraform module (like `terraform-aws-modules/rds/aws`) as a Radius recipe, I have to write a wrapper module that adds the `context` variable and `result` output, publish my wrapper to a Git repository or OCI registry based on the IaC engine, and then reference my wrapper in the recipe definition. If the upstream module releases a new version, I have to update my wrapper, test it, and republish. This creates a maintenance burden that scales with the number of modules in my catalog.
+
+## Desired user experience outcome
+
+After this feature, I can set `location` directly to `terraform-aws-modules/rds/aws` on my recipe definition, configure `parameters` with `{{context.*}}` expressions for dynamic values, and set `outputs` to map the module's outputs to my resource type's properties. The module doesn't need to know about Radius. When my application developer deploys a `Radius.Data/mySqlDatabases` resource, the system resolves expressions, passes parameters to the module, executes it, and maps outputs — all without any wrapper.
+
+### Detailed user experience
+
+1. Platform engineer creates a RecipePack pointing directly at an upstream module:
+
+   ```bicep
+   resource recipepack 'Radius.Core/recipePacks@2025-08-01-preview' = {
+     name: 'data-pack'
+     properties: {
+       recipes: {
+         'Radius.Data/mySqlDatabases': {
+           kind: 'terraform'
+           location: 'terraform-aws-modules/rds/aws'
+           parameters: {
+             identifier: '{{context.resource.name}}'
+             db_name: '{{context.resource.properties.database}}'
+             engine: 'mysql'
+             instance_class: 'db.t3.micro'
+           }
+           outputs: {
+             host: 'db_instance_address'
+             port: 'db_instance_port'
+             database: 'db_instance_name'
+           }
+         }
+       }
+     }
+   }
+   ```
+
+2. Application developer deploys a resource with properties:
+
+   ```bicep
+   resource mysql 'Radius.Data/mySqlDatabases@2025-08-01-preview' = {
+     name: 'orders-db'
+     properties: {
+       environment: environment
+       application: app.id
+       database: 'ordersdb'
+     }
+   }
+   ```
+
+3. System resolves expressions (`{{context.resource.name}}` → `'orders-db'`, `{{context.resource.properties.database}}` → `'ordersdb'`), merges parameters, and executes Terraform against the upstream module
+4. Module outputs are mapped to resource properties via the `outputs` definition
+5. Application developer reads `resource.properties.host`, `resource.properties.port` etc.
+
+## Key investments
+
+### Feature 1: Direct Module Execution
+
+Use any standard Bicep or Terraform module directly as a recipe by pointing `location` at the module source. The system automatically detects that the module is not a Radius wrapper (no `context` variable), downloads it, and executes it through the existing driver — no wrapper needed.
+
+### Feature 2: Template Expression Resolution
+
+A `{{context.*}}` expression system that resolves Radius application runtime context values into recipe parameters at deploy time. Supports resource metadata, application/environment info, Kubernetes runtime, Azure, and AWS provider context. Includes single-level ternary expressions for conditional value mapping.
+
+### Feature 3: Output Mapping
+
+An `outputs` field on `RecipeDefinition` that maps module output names to resource property names. Provides a stable property interface for resource consumers regardless of the underlying module's output naming. Sensitive outputs are automatically routed to the Secrets map.
+
+---
+
+## Usage Examples
+
+### Terraform Registry Module (AWS RDS)
+
+```bicep
+resource recipepack 'Radius.Core/recipePacks@2025-08-01-preview' = {
+  name: 'aws-data-pack'
+  properties: {
+    recipes: {
+      'Radius.Data/mySqlDatabases': {
+        kind: 'terraform'
+        location: 'terraform-aws-modules/rds/aws'
+        parameters: {
+          identifier: '{{context.resource.name}}'
+          db_name: '{{context.resource.properties.database}}'
+          engine: 'mysql'
+          engine_version: '8.0'
+          instance_class: 'db.t3.micro'
+          manage_master_user_password: true
+          create_db_subnet_group: true
+          subnet_ids: subnetIds
+          vpc_security_group_ids: vpcSecurityGroupIds
+        }
+        outputs: {
+          host: 'db_instance_address'
+          port: 'db_instance_port'
+          database: 'db_instance_name'
+          secretName: 'db_instance_master_user_secret_arn'
+        }
+      }
+    }
+  }
+}
+```
+
+### Azure Verified Module (PostgreSQL) with T-Shirt Sizing
+
+```bicep
+resource recipepack 'Radius.Core/recipePacks@2025-08-01-preview' = {
+  name: 'azure-postgres-pack'
+  properties: {
+    recipes: {
+      'Radius.Data/postgreSqlDatabases': {
+        kind: 'terraform'
+        location: 'Azure/avm-res-dbforpostgresql-flexibleserver/azurerm'
+        parameters: {
+          name: 'pg-{{context.resource.name}}'
+          location: 'eastus2'
+          sku_name: '{{context.resource.properties.size == "s" ? "B_Standard_B1ms" : "GP_Standard_D2s_v3"}}'
+          storage_mb: '{{context.resource.properties.size == "s" ? "32768" : "65536"}}'
+          tags: {
+            environment: '{{context.environment.name}}'
+            application: '{{context.application.name}}'
+          }
+        }
+        outputs: {
+          host: 'fqdn'
+          port: 'port'
+          database: 'database_name'
+          username: 'administrator_login'
+        }
+      }
+    }
+  }
+}
+```
+
+### Environment-Level Parameter Overrides
+
+```bicep
+resource devenv 'Radius.Core/environments@2025-08-01-preview' = {
+  name: 'dev'
+  properties: {
+    recipePacks: [recipepack.id]
+    recipeParameters: {
+      backup_retention_days: '2'
+      geo_redundant_backup_enabled: 'false'
+    }
+  }
+}
+```
+
+Environment parameters merge with recipe-level parameters. Environment takes precedence for overlapping keys.