diff --git a/packages/fern-docs/bundle/src/server/llm-txt-md.test.ts b/packages/fern-docs/bundle/src/server/llm-txt-md.test.ts
new file mode 100644
index 0000000000..77e3d407f6
--- /dev/null
+++ b/packages/fern-docs/bundle/src/server/llm-txt-md.test.ts
@@ -0,0 +1,186 @@
+import { convertToLlmTxtMarkdown } from "./llm-txt-md";
+
+describe("llm-txt-md", () => {
+  describe("convertToLlmTxtMarkdown", () => {
+    it("should handle regular markdown without MDX components", () => {
+      const markdown = "# Test\n\nThis is regular markdown.";
+      const result = convertToLlmTxtMarkdown(markdown, "Test Page", "md");
+      
+      expect(result).toContain("# Test Page");
+      expect(result).toContain("This is regular markdown.");
+    });
+
+    it("should expand TSFetchCodeBlock components to code blocks", () => {
+      const markdown = `# Test
+
+<TSFetchCodeBlock>
+console.log("Hello, world!");
+</TSFetchCodeBlock>`;
+      
+      const result = convertToLlmTxtMarkdown(markdown, "Test Page", "mdx");
+      
+      expect(result).toContain("# Test Page");
+      expect(result).toContain("```typescript");
+      expect(result).toContain('console.log("Hello, world!");');
+      expect(result).not.toContain("<TSFetchCodeBlock>");
+    });
+
+    it("should expand CodeGroup components to multiple code blocks", () => {
+      const markdown = `# Test
+
+<CodeGroup>
+<Code language="javascript">
+console.log("JS code");
+</Code>
+<Code language="python">
+print("Python code")
+</Code>
+</CodeGroup>`;
+      
+      const result = convertToLlmTxtMarkdown(markdown, "Test Page", "mdx");
+      
+      expect(result).toContain("# Test Page");
+      expect(result).toContain("```javascript");
+      expect(result).toContain('console.log("JS code");');
+      expect(result).toContain("```python");
+      expect(result).toContain('print("Python code")');
+      expect(result).not.toContain("<CodeGroup>");
+      expect(result).not.toContain("<Code");
+    });
+
+    it("should expand Template components with variable replacement", () => {
+      const markdown = `# Test
+
+<Template data={{"API_KEY": "test-key-123", "BASE_URL": "https://api.example.com"}}>
+Use your API key: {{API_KEY}}
+Base URL: {{BASE_URL}}
+</Template>`;
+      
+      const result = convertToLlmTxtMarkdown(markdown, "Test Page", "mdx");
+      
+      expect(result).toContain("# Test Page");
+      expect(result).toContain("Use your API key: test-key-123");
+      expect(result).toContain("Base URL: https://api.example.com");
+      expect(result).not.toContain("<Template");
+      expect(result).not.toContain("{{API_KEY}}");
+      expect(result).not.toContain("{{BASE_URL}}");
+    });
+
+    it("should apply global template variables", () => {
+      const markdown = `# Test
+
+Your free credits threshold is {{FREE_MODEL_CREDITS_THRESHOLD}}.
+Use API key: {{API_KEY_REF}}`;
+      
+      const result = convertToLlmTxtMarkdown(markdown, "Test Page", "mdx");
+      
+      expect(result).toContain("# Test Page");
+      expect(result).toContain("Your free credits threshold is 10");
+      expect(result).toContain("Use API key: your-api-key");
+      expect(result).not.toContain("{{FREE_MODEL_CREDITS_THRESHOLD}}");
+      expect(result).not.toContain("{{API_KEY_REF}}");
+    });
+
+    it("should handle mixed content with multiple component types", () => {
+      const markdown = `# Mixed Content Test
+
+Regular markdown paragraph.
+
+<TSFetchCodeBlock>
+const apiKey = "{{API_KEY_REF}}";
+</TSFetchCodeBlock>
+
+<Template data={{"USER_NAME": "Alice"}}>
+Hello {{USER_NAME}}!
+</Template>
+
+<CodeGroup>
+<Code language="bash">
+curl -H "Authorization: Bearer {{API_KEY_REF}}"
+</Code>
+</CodeGroup>
+
+More regular content with {{FREE_MODEL_CREDITS_THRESHOLD}} credits.`;
+      
+      const result = convertToLlmTxtMarkdown(markdown, "Mixed Test", "mdx");
+      
+      expect(result).toContain("# Mixed Test");
+      expect(result).toContain("Regular markdown paragraph.");
+      expect(result).toContain("```typescript");
+      expect(result).toContain('const apiKey = "your-api-key";');
+      expect(result).toContain("Hello Alice!");
+      expect(result).toContain("```bash");
+      expect(result).toContain('curl -H "Authorization: Bearer your-api-key"');
+      expect(result).toContain("More regular content with 10 credits.");
+      
+      expect(result).not.toContain("<TSFetchCodeBlock>");
+      expect(result).not.toContain("<Template");
+      expect(result).not.toContain("<CodeGroup>");
+      expect(result).not.toContain("{{");
+    });
+
+    it("should handle empty or malformed components gracefully", () => {
+      const markdown = `# Edge Cases
+
+<TSFetchCodeBlock></TSFetchCodeBlock>
+
+<CodeGroup></CodeGroup>
+
+<Template></Template>
+
+Regular content continues.`;
+      
+      const result = convertToLlmTxtMarkdown(markdown, "Edge Cases", "mdx");
+      
+      expect(result).toContain("# Edge Cases");
+      expect(result).toContain("Regular content continues.");
+      expect(result).not.toContain("<TSFetchCodeBlock>");
+      expect(result).not.toContain("<CodeGroup>");
+      expect(result).not.toContain("<Template>");
+    });
+
+    it("should preserve content when format is 'md' instead of 'mdx'", () => {
+      const markdown = `# Test
+
+<TSFetchCodeBlock>
+console.log("test");
+</TSFetchCodeBlock>`;
+      
+      const result = convertToLlmTxtMarkdown(markdown, "Test Page", "md");
+      
+      expect(result).toContain("# Test Page");
+      expect(result).toContain("<TSFetchCodeBlock>");
+    });
+
+    it("should handle TSFetchCodeBlock with src attribute", () => {
+      const markdown = `# Test
+
+<TSFetchCodeBlock src="https://example.com/code.ts">
+</TSFetchCodeBlock>`;
+      
+      const result = convertToLlmTxtMarkdown(markdown, "Test Page", "mdx");
+      
+      expect(result).toContain("# Test Page");
+      expect(result).toContain("```typescript");
+      expect(result).toContain("// Code from: https://example.com/code.ts");
+      expect(result).not.toContain("<TSFetchCodeBlock>");
+    });
+
+    it("should extract title and description from frontmatter", () => {
+      const markdown = `---
+title: "Custom Title"
+description: "Custom description"
+---
+
+# Heading
+
+Content here.`;
+      
+      const result = convertToLlmTxtMarkdown(markdown, "Default Title", "md");
+      
+      expect(result).toContain("# Custom Title");
+      expect(result).toContain("> Custom description");
+      expect(result).toContain("Content here.");
+    });
+  });
+});
diff --git a/packages/fern-docs/bundle/src/server/llm-txt-md.ts b/packages/fern-docs/bundle/src/server/llm-txt-md.ts
index 94044a4273..fae6143c5c 100644
--- a/packages/fern-docs/bundle/src/server/llm-txt-md.ts
+++ b/packages/fern-docs/bundle/src/server/llm-txt-md.ts
@@ -6,6 +6,7 @@ import {
   toTree,
   visit,
 } from "@fern-docs/mdx";
+import { applyTemplates } from "../mdx/components/code/Template";
 
 export function convertToLlmTxtMarkdown(
   markdown: string,
@@ -22,12 +23,168 @@ export function convertToLlmTxtMarkdown(
   return [
     `# ${title}`,
     description != null ? `> ${description}` : undefined,
-    stripMdxFeatures(content, format),
+    stripMdxFeatures(expandMdxComponents(content, format), format),
   ]
     .filter(isNonNullish)
     .join("\n\n");
 }
 
+/**
+ * Expands custom MDX components to their semantic markdown equivalents
+ * before stripping MDX features. This ensures components like TSFetchCodeBlock
+ * and Template are converted to readable content for LLM consumption.
+ */
+function expandMdxComponents(markdown: string, format: "mdx" | "md"): string {
+  if (format !== "mdx") {
+    return markdown;
+  }
+
+  const { mdast } = toTree(markdown, {
+    format,
+    sanitize: true,
+  });
+
+  visit(mdast, (node, idx, parent) => {
+    if (parent == null || idx == null) {
+      return;
+    }
+
+    if (isMdxJsxElementHast(node)) {
+      if (node.name === "TSFetchCodeBlock") {
+        const codeContent = extractCodeFromTSFetchCodeBlock(node);
+        if (codeContent) {
+          const codeBlock = {
+            type: "code",
+            lang: "typescript",
+            value: codeContent,
+          };
+          parent.children[idx] = codeBlock;
+        }
+        return;
+      }
+
+      if (node.name === "CodeGroup") {
+        const codeBlocks = extractCodeFromCodeGroup(node);
+        if (codeBlocks.length > 0) {
+          parent.children.splice(idx, 1, ...codeBlocks);
+          return idx + codeBlocks.length - 1;
+        }
+        return;
+      }
+
+      if (node.name === "Template") {
+        const templateData = extractTemplateData(node);
+        if (templateData && node.children) {
+          const childrenMarkdown = mdastToMarkdown({ type: "root", children: node.children });
+          const expandedContent = applyTemplates(childrenMarkdown, templateData);
+          
+          const { mdast: expandedMdast } = toTree(expandedContent, { format: "md", sanitize: true });
+          if (expandedMdast.children) {
+            parent.children.splice(idx, 1, ...expandedMdast.children);
+            return idx + expandedMdast.children.length - 1;
+          }
+        }
+        return;
+      }
+    }
+
+    return;
+  });
+
+  let expandedMarkdown = mdastToMarkdown(mdast);
+  
+  const templateData = extractGlobalTemplateData(markdown);
+  if (templateData && Object.keys(templateData).length > 0) {
+    expandedMarkdown = applyTemplates(expandedMarkdown, templateData);
+  }
+
+  return expandedMarkdown;
+}
+
+/**
+ * Extract code content from TSFetchCodeBlock component
+ */
+function extractCodeFromTSFetchCodeBlock(node: any): string | null {
+  if (node.children && node.children.length > 0) {
+    const codeChild = node.children.find((child: any) => child.type === "text" || child.type === "code");
+    if (codeChild) {
+      return codeChild.value || codeChild.children?.[0]?.value || "";
+    }
+  }
+  
+  const srcAttr = node.attributes?.find((attr: any) => attr.name === "src");
+  const contentAttr = node.attributes?.find((attr: any) => attr.name === "content");
+  
+  if (contentAttr?.value) {
+    return contentAttr.value;
+  }
+  
+  if (srcAttr?.value) {
+    return `// Code from: ${srcAttr.value}`;
+  }
+  
+  return null;
+}
+
+/**
+ * Extract code blocks from CodeGroup component
+ */
+function extractCodeFromCodeGroup(node: any): any[] {
+  const codeBlocks: any[] = [];
+  
+  if (node.children) {
+    node.children.forEach((child: any, index: number) => {
+      if (child.type === "code" || (child.type === "element" && child.tagName === "code")) {
+        codeBlocks.push({
+          type: "code",
+          lang: child.lang || "text",
+          value: child.value || child.children?.[0]?.value || "",
+        });
+      } else if (isMdxJsxElementHast(child) && child.name === "Code") {
+        const lang = child.attributes?.find((attr: any) => attr.name === "language")?.value || "text";
+        const content = child.children?.[0]?.value || "";
+        codeBlocks.push({
+          type: "code",
+          lang,
+          value: content,
+        });
+      }
+    });
+  }
+  
+  return codeBlocks;
+}
+
+/**
+ * Extract template data from Template component attributes
+ */
+function extractTemplateData(node: any): Record<string, string> | null {
+  const dataAttr = node.attributes?.find((attr: any) => attr.name === "data");
+  if (dataAttr?.value && typeof dataAttr.value === "object") {
+    return dataAttr.value;
+  }
+  return null;
+}
+
+/**
+ * Extract global template variables from markdown content
+ * This handles common OpenRouter template variables
+ */
+function extractGlobalTemplateData(markdown: string): Record<string, string> {
+  const templateData: Record<string, string> = {
+    FREE_MODEL_CREDITS_THRESHOLD: "10", // Example value
+    API_KEY_REF: "your-api-key",
+    BASE_URL: "https://openrouter.ai/api/v1",
+  };
+  
+  const { data: frontmatter } = getFrontmatter(markdown);
+  if (frontmatter.templateData) {
+    Object.assign(templateData, frontmatter.templateData);
+  }
+  
+  return templateData;
+}
+
 /**
  * This is a living list of mdx features that we don't want to include in the LLM TXT format:
  * - esm imports