diff --git a/ballerina-tests/http-dispatching-tests/tests/service_dispatching_query_param_binding_test.bal b/ballerina-tests/http-dispatching-tests/tests/service_dispatching_query_param_binding_test.bal
index 1ce2f6b41..c442d6ec0 100644
--- a/ballerina-tests/http-dispatching-tests/tests/service_dispatching_query_param_binding_test.bal
+++ b/ballerina-tests/http-dispatching-tests/tests/service_dispatching_query_param_binding_test.bal
@@ -15,9 +15,9 @@
 // under the License.
 
 import ballerina/http;
+import ballerina/http_test_common as common;
 import ballerina/test;
 import ballerina/url;
-import ballerina/http_test_common as common;
 
 listener http:Listener QueryBindingEP = new (queryParamBindingTestPort, httpVersion = http:HTTP_1_1);
 final http:Client queryBindingClient = check new ("http://localhost:" + queryParamBindingTestPort.toString(), httpVersion = http:HTTP_1_1);
@@ -167,8 +167,29 @@ service /queryparamservice on QueryBindingEP {
     resource function get studentRest(StudentRest studentRest) returns StudentRest {
         return studentRest;
     }
+
+    resource function get queryAnnotation(@http:Query {name: "first"} string firstName, @http:Query {name: "last-name"} string lastName) returns string {
+        return string `Hello, ${firstName} ${lastName}`;
+    }
+
+    resource function get queryAnnotation/negative/q1(@http:Query {name: ""} string firstName) returns string {
+        return string `Hello, ${firstName}`;
+    }
+
+    resource function get queryAnnotation/negative/q2(@http:Query {name: ()} string lastName) returns string {
+        return string `Hello, ${lastName}`;
+    }
+
+    resource function get queryAnnotation/mapQueries(@http:Query {name: "rMq"} Mq mq) returns string {
+        return string `Hello, ${mq.name} ${mq.age}`;
+    }
 }
 
+public type Mq record {
+    string name;
+    int age;
+};
+
 service /default on QueryBindingEP {
     resource function get checkstring(string foo = "hello") returns json {
         json responseJson = {value1: foo};
@@ -353,7 +374,7 @@ function testNegativeStringQueryBindingCaseSensitivity() returns error? {
     if response is http:Response {
         test:assertEquals(response.statusCode, 400);
         check common:assertJsonErrorPayload(check response.getJsonPayload(), "no query param value found for 'foo'",
-            "Bad Request", 400, "/queryparamservice/?FOO=WSO2&bar=go", "GET");
+                "Bad Request", 400, "/queryparamservice/?FOO=WSO2&bar=go", "GET");
     } else {
         test:assertFail(msg = "Found unexpected output type: " + response.message());
     }
@@ -365,7 +386,7 @@ function testNegativeIntQueryBindingCastingError() returns error? {
     if response is http:Response {
         test:assertEquals(response.statusCode, 400);
         check common:assertJsonErrorPayload(check response.getJsonPayload(), "error in casting query param : 'bar'",
-            "Bad Request", 400, "/queryparamservice/?foo=WSO2&bar=go", "GET");
+                "Bad Request", 400, "/queryparamservice/?foo=WSO2&bar=go", "GET");
     } else {
         test:assertFail(msg = "Found unexpected output type: " + response.message());
     }
@@ -374,7 +395,7 @@ function testNegativeIntQueryBindingCastingError() returns error? {
     if response is http:Response {
         test:assertEquals(response.statusCode, 400);
         check common:assertJsonErrorPayload(check response.getJsonPayload(), "error in casting query param : 'bar'",
-            "Bad Request", 400, "/queryparamservice/?foo=WSO2&bar=", "GET");
+                "Bad Request", 400, "/queryparamservice/?foo=WSO2&bar=", "GET");
     } else {
         test:assertFail(msg = "Found unexpected output type: " + response.message());
     }
@@ -549,7 +570,7 @@ function testEmptyQueryParamBinding() returns error? {
     if response is http:Response {
         test:assertEquals(response.statusCode, 400);
         check common:assertJsonErrorPayload(check response.getJsonPayload(), "no query param value found for 'x-Type'",
-            "Bad Request", 400, "/queryparamservice/q9?x-Type", "GET");
+                "Bad Request", 400, "/queryparamservice/q9?x-Type", "GET");
     } else {
         test:assertFail(msg = "Found unexpected output type: " + response.message());
     }
@@ -736,3 +757,27 @@ function testMapOfJsonTypedQueryParamBinding3() returns error? {
     response = check queryBindingClient->get("/queryparamservice/q13?obj=" + mapOfJsonsEncoded);
     test:assertEquals(response.statusCode, 400, msg = "Found unexpected output");
 }
+
+@test:Config {}
+function testforQueryParamterNameOverwrite() returns error? {
+    string result = check queryBindingClient->get("/queryparamservice/queryAnnotation?first=Harry&last-name=Potter");
+    test:assertEquals(result, "Hello, Harry Potter", msg = string `Found ${result}, expected Harry`);
+
+    map<json> mapOfJsons = {
+        name: "Ron",
+        age: 10
+    };
+    string mapOfQueries = check url:encode(mapOfJsons.toJsonString(), "UTF-8");
+
+    result = check queryBindingClient->get("/queryparamservice/queryAnnotation/mapQueries?rMq=" + mapOfQueries);
+    test:assertEquals(result, "Hello, Ron 10", msg = string `Found ${result}, expected Harry`);
+}
+
+@test:Config {}
+function testforNegativeQueryParamterNameOverwrite() returns error? {
+    string result = check queryBindingClient->get("/queryparamservice/queryAnnotation/negative/q1?firstName=Harry");
+    test:assertEquals(result, "Hello, Harry");
+
+    result = check queryBindingClient->get("/queryparamservice/queryAnnotation/negative/q2?lastName=Anne");
+    test:assertEquals(result, "Hello, Anne");
+}
diff --git a/changelog.md b/changelog.md
index 83dd8125f..e86f17166 100644
--- a/changelog.md
+++ b/changelog.md
@@ -11,6 +11,7 @@ The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/),
 
 - [Add `anydata` support for `setPayload` methods in the request and response objects](https://github.com/ballerina-platform/ballerina-library/issues/6954)
 - [Improve `@http:Query` annotation to overwrite the query parameter name in client] (https://github.com/ballerina-platform/ballerina-library/issues/6983)
+- [Improve `@http:Query` annotation to overwrite the query parameter name in service] (https://github.com/ballerina-platform/ballerina-library/issues/7006)
 
 ## [2.12.0] - 2024-08-20
 
diff --git a/native/src/main/java/io/ballerina/stdlib/http/api/service/signature/ParamHandler.java b/native/src/main/java/io/ballerina/stdlib/http/api/service/signature/ParamHandler.java
index 2bca7fdd5..213d80318 100644
--- a/native/src/main/java/io/ballerina/stdlib/http/api/service/signature/ParamHandler.java
+++ b/native/src/main/java/io/ballerina/stdlib/http/api/service/signature/ParamHandler.java
@@ -47,6 +47,7 @@
 import static io.ballerina.stdlib.http.api.HttpConstants.ANN_NAME_CALLER_INFO;
 import static io.ballerina.stdlib.http.api.HttpConstants.ANN_NAME_HEADER;
 import static io.ballerina.stdlib.http.api.HttpConstants.ANN_NAME_PAYLOAD;
+import static io.ballerina.stdlib.http.api.HttpConstants.ANN_NAME_QUERY;
 import static io.ballerina.stdlib.http.api.HttpConstants.COLON;
 import static io.ballerina.stdlib.http.api.HttpConstants.PROTOCOL_HTTP;
 import static io.ballerina.stdlib.http.api.HttpUtil.getParameterTypes;
@@ -89,6 +90,7 @@ public class ParamHandler {
             + ANN_NAME_CALLER_INFO;
     public static final String CACHE_ANNOTATION = ModuleUtils.getHttpPackageIdentifier() + COLON
             + ANN_NAME_CACHE;
+    public static final String QUERY_ANNOTATION = ModuleUtils.getHttpPackageIdentifier() + COLON + ANN_NAME_QUERY;
 
     public ParamHandler(ResourceMethodType resource, int pathParamCount, boolean constraintValidation) {
         this.resource = resource;
@@ -272,11 +274,28 @@ private void createHeaderParam(String paramName, BMap annotations) {
 
     private void createQueryParam(int index, ResourceMethodType balResource, Type originalType) {
         io.ballerina.runtime.api.types.Parameter parameter = balResource.getParameters()[index];
-        QueryParam queryParam = new QueryParam(originalType, HttpUtil.unescapeAndEncodeValue(parameter.name), index,
-                parameter.isDefault, constraintValidation);
+        String paramName = parameter.name;
+        BMap annotations = (BMap) balResource.getAnnotation(
+                StringUtils.fromString(PARAM_ANNOT_PREFIX + IdentifierUtils.escapeSpecialCharacters(paramName)));
+        if (annotations != null) {
+            String queryParamName = getQueryParamName(paramName, annotations);
+            paramName = queryParamName.isBlank() ? paramName : queryParamName;
+        }
+        paramName = HttpUtil.unescapeAndEncodeValue(paramName);
+        QueryParam queryParam = new QueryParam(originalType, paramName, index, parameter.isDefault,
+                constraintValidation);
         this.queryParams.add(queryParam);
     }
 
+    private static String getQueryParamName(String paramName, BMap annotations) {
+        BMap mapValue = annotations.getMapValue(StringUtils.fromString(QUERY_ANNOTATION));
+        Object queryName = mapValue.get(HttpConstants.ANN_FIELD_NAME);
+        if (queryName instanceof BString query) {
+            return query.getValue();
+        }
+        return paramName;
+    }
+
     public boolean isPayloadBindingRequired() {
         return payloadParam != null;
     }