diff --git a/st2common/st2common/util/param.py b/st2common/st2common/util/param.py
index 67fb83e9ac..7f75ac1c5b 100644
--- a/st2common/st2common/util/param.py
+++ b/st2common/st2common/util/param.py
@@ -117,7 +117,7 @@ def _create_graph(action_context, config):
     return G
 
 
-def _process(G, name, value):
+def _process(G, name, value, parameter_schemas=None):
     """
     Determines whether parameter is a template or a value. Adds graph nodes and edges accordingly.
     """
@@ -130,9 +130,20 @@ def _process(G, name, value):
     if isinstance(value, list) or isinstance(value, dict):
         complex_value_str = str(value)
 
-    is_jinja_expr = jinja_utils.is_jinja_expression(
-        value
-    ) or jinja_utils.is_jinja_expression(complex_value_str)
+    # Check if the parameter is of type raw_string
+    is_raw_string = False
+    if parameter_schemas:
+        for schema in parameter_schemas:
+            if name in schema and schema[name].get("type") == "raw_string":
+                is_raw_string = True
+                break
+
+    # Skip Jinja processing for raw_string type parameters
+    is_jinja_expr = False
+    if not is_raw_string:
+        is_jinja_expr = jinja_utils.is_jinja_expression(
+            value
+        ) or jinja_utils.is_jinja_expression(complex_value_str)
 
     if is_jinja_expr:
         try:
@@ -334,8 +345,12 @@ def render_live_params(
     for name, value in six.iteritems(additional_contexts):
         G.add_node(name, value=value)
 
-    [_process(G, name, value) for name, value in six.iteritems(params)]
-    _process_defaults(G, [action_parameters, runner_parameters])
+    parameter_schemas = [action_parameters, runner_parameters]
+    [
+        _process(G, name, value, parameter_schemas)
+        for name, value in six.iteritems(params)
+    ]
+    _process_defaults(G, parameter_schemas)
     _validate(G)
 
     context = _resolve_dependencies(G)
diff --git a/st2common/st2common/util/schema/action_params.json b/st2common/st2common/util/schema/action_params.json
index 3e92536cea..0c4b282469 100644
--- a/st2common/st2common/util/schema/action_params.json
+++ b/st2common/st2common/util/schema/action_params.json
@@ -16,7 +16,7 @@
             "allOf": [ { "$ref": "#/definitions/positiveInteger" }, { "default": 0 } ]
         },
         "simpleTypes": {
-            "enum": [ "array", "boolean", "integer", "null", "number", "object", "string" ]
+            "enum": [ "array", "boolean", "integer", "null", "number", "object", "string", "raw_string" ]
         },
         "stringArray": {
             "type": "array",
diff --git a/st2common/st2common/util/schema/custom.json b/st2common/st2common/util/schema/custom.json
index 05c38d760d..856632b7f5 100644
--- a/st2common/st2common/util/schema/custom.json
+++ b/st2common/st2common/util/schema/custom.json
@@ -16,7 +16,7 @@
             "allOf": [ { "$ref": "#/definitions/positiveInteger" }, { "default": 0 } ]
         },
         "simpleTypes": {
-            "enum": [ "array", "boolean", "integer", "null", "number", "object", "string" ]
+            "enum": [ "array", "boolean", "integer", "null", "number", "object", "string", "raw_string" ]
         },
         "stringArray": {
             "type": "array",
diff --git a/st2common/tests/unit/test_param_utils.py b/st2common/tests/unit/test_param_utils.py
index 0d80e94943..e2467867cb 100644
--- a/st2common/tests/unit/test_param_utils.py
+++ b/st2common/tests/unit/test_param_utils.py
@@ -395,6 +395,39 @@ def test_get_finalized_params_with_casting_unicode_values(self):
         self.assertEqual(r_runner_params, {})
         self.assertEqual(r_action_params, expected_action_params)
 
+    def test_get_finalized_params_with_raw_string_parameter(self):
+        """
+        Tests that parameters with type 'raw_string' are not processed for Jinja expressions.
+        """
+        params = {
+            "a1": "value1",
+            "a2": "{{a1}}",
+            "a3": "{{a1}} and {{a4}}",
+            "a4": "{{a1}}",
+            "a5": "{{a1}}",
+        }
+        runner_param_info = {}
+        action_param_info = {
+            "a1": {"type": "string"},
+            "a2": {"type": "string"},
+            "a3": {"type": "raw_string"},
+            "a4": {"type": "raw_string"},
+            "a5": {"type": "string"},
+        }
+        action_context = {"api_user": "noob"}
+        r_runner_params, r_action_params = param_utils.get_finalized_params(
+            runner_param_info, action_param_info, params, action_context
+        )
+
+        # Regular string parameters should have their Jinja expressions evaluated
+        self.assertEqual(r_action_params["a1"], "value1")
+        self.assertEqual(r_action_params["a2"], "value1")
+        self.assertEqual(r_action_params["a5"], "value1")
+
+        # Parameters with type 'raw_string' should not be processed for Jinja expressions
+        self.assertEqual(r_action_params["a3"], "{{a1}} and {{a4}}")
+        self.assertEqual(r_action_params["a4"], "{{a1}}")
+
     def test_get_finalized_params_with_dict(self):
         # Note : In this test runner_params.r1 has a string value. However per runner_param_info the
         # type is an integer. The expected type is considered and cast is performed accordingly.