diff --git a/src/audio/module_adapter/module_adapter.c b/src/audio/module_adapter/module_adapter.c
index 7edc018dabb4..9e6ad0850fec 100644
--- a/src/audio/module_adapter/module_adapter.c
+++ b/src/audio/module_adapter/module_adapter.c
@@ -158,7 +158,7 @@ static void module_adapter_mem_free(struct processing_module *mod)
  * \brief Create a module adapter component.
  * \param[in] drv - component driver pointer.
  * \param[in] config - component ipc descriptor pointer.
- * \param[in] spec - passdowned data from driver.
+ * \param[in] const_spec - passdowned data from driver.
  * \param[in] mod_priv - Pointer to private data for processing module.
  *
  * \return: a pointer to newly created module adapter component on success. NULL on error.
@@ -167,13 +167,18 @@ static void module_adapter_mem_free(struct processing_module *mod)
  *	 the create method.
  */
 struct comp_dev *module_adapter_new_ext(const struct comp_driver *drv,
-					const struct comp_ipc_config *config, const void *spec,
-					void *mod_priv, struct userspace_context *user_ctx)
+					const struct comp_ipc_config *config,
+					const void *const_spec, void *mod_priv,
+					struct userspace_context *user_ctx)
 {
 	int ret;
 	struct module_config *dst;
 	const struct module_interface *const interface = drv->adapter_ops;
-
+	struct ipc_config_process spec =
+		*((const struct ipc_config_process *) const_spec);
+#if CONFIG_IPC_MAJOR_4
+	struct module_ext_init_data ext_data = { 0 };
+#endif
 	comp_cl_dbg(drv, "start");
 
 	if (!config) {
@@ -181,6 +186,13 @@ struct comp_dev *module_adapter_new_ext(const struct comp_driver *drv,
 			    (size_t)drv, (size_t)config);
 		return NULL;
 	}
+#if CONFIG_IPC_MAJOR_4
+	if (config->ipc_extended_init) {
+		ret = module_ext_init_decode(drv, &ext_data, &spec);
+		if (ret != 0)
+			return NULL;
+	}
+#endif
 
 	struct processing_module *mod = module_adapter_mem_alloc(drv, config);
 
@@ -204,7 +216,17 @@ struct comp_dev *module_adapter_new_ext(const struct comp_driver *drv,
 #endif /* CONFIG_USERSPACE */
 
 	dst = &mod->priv.cfg;
-	ret = module_adapter_init_data(dev, dst, config, spec);
+	/*
+	 * NOTE: dst->ext_data points to stack variable and contains
+	 *       pointers to IPC payload mailbox, so its only valid in
+	 *       functions that called from this function. This why
+	 *       the pointer is set NULL before the this function
+	 *       exits.
+	 */
+#if CONFIG_IPC_MAJOR_4
+	dst->ext_data = &ext_data;
+#endif
+	ret = module_adapter_init_data(dev, dst, config, &spec);
 	if (ret) {
 		comp_err(dev, "%d: module init data failed",
 			 ret);
@@ -270,6 +292,9 @@ struct comp_dev *module_adapter_new_ext(const struct comp_driver *drv,
 	component_set_nearest_period_frames(dev, params.rate);
 #endif
 
+#if CONFIG_IPC_MAJOR_4
+	dst->ext_data = NULL;
+#endif
 	comp_dbg(dev, "done");
 	return dev;
 
@@ -279,6 +304,9 @@ struct comp_dev *module_adapter_new_ext(const struct comp_driver *drv,
 		schedule_task_free(dev->task);
 #endif
 	module_adapter_mem_free(mod);
+#if CONFIG_IPC_MAJOR_4
+	dst->ext_data = NULL;
+#endif
 
 	return NULL;
 }
diff --git a/src/audio/module_adapter/module_adapter_ipc4.c b/src/audio/module_adapter/module_adapter_ipc4.c
index 54ee3dd94f5e..f29c18cda92e 100644
--- a/src/audio/module_adapter/module_adapter_ipc4.c
+++ b/src/audio/module_adapter/module_adapter_ipc4.c
@@ -25,19 +25,19 @@
 
 LOG_MODULE_DECLARE(module_adapter, CONFIG_SOF_LOG_LEVEL);
 
-static const struct ipc4_base_module_extended_cfg *
-module_ext_init_decode(struct comp_dev *dev, struct module_config *dst,
-		       const unsigned char *data, size_t *size)
+int module_ext_init_decode(const struct comp_driver *drv, struct module_ext_init_data *ext_data,
+			   struct ipc_config_process *spec)
 {
 	const struct ipc4_module_init_ext_init *ext_init =
-		(const struct ipc4_module_init_ext_init *)data;
+		(const struct ipc4_module_init_ext_init *)spec->data;
 	bool last_object = !ext_init->data_obj_array;
 	const struct ipc4_module_init_ext_object *obj;
 
-	if (*size < sizeof(ext_init)) {
-		comp_err(dev, "Size too small for ext init  %u < %u",
-			 *size, sizeof(ext_init));
-		return NULL;
+	assert(drv->type == SOF_COMP_MODULE_ADAPTER);
+	if (spec->size < sizeof(ext_init)) {
+		comp_cl_err(drv, "Size too small for ext init %zu < %zu",
+			    spec->size, sizeof(ext_init));
+		return -EINVAL;
 	}
 	/* TODO: Handle ext_init->gna_used and ext_init->rtos_domain here */
 	/* Get the first obj struct right after ext_init struct */
@@ -46,18 +46,18 @@ module_ext_init_decode(struct comp_dev *dev, struct module_config *dst,
 		const struct ipc4_module_init_ext_object *next_obj;
 
 		/* Check if there is space for the object header */
-		if ((unsigned char *)(obj + 1) - data > *size) {
-			comp_err(dev, "ext init obj overflow, %u > %u",
-				 (unsigned char *)(obj + 1) - data, *size);
-			return NULL;
+		if ((unsigned char *)(obj + 1) - spec->data > spec->size) {
+			comp_cl_err(drv, "ext init obj overflow, %u > %zu",
+				    (unsigned char *)(obj + 1) - spec->data, spec->size);
+			return -EINVAL;
 		}
 		/* Calculate would be next object position and check if current object fits */
 		next_obj = (const struct ipc4_module_init_ext_object *)
 			(((uint32_t *) (obj + 1)) + obj->object_words);
-		if ((unsigned char *)next_obj - data > *size) {
-			comp_err(dev, "ext init object array overflow, %u > %u",
-				 (unsigned char *)obj - data, *size);
-			return NULL;
+		if ((unsigned char *)next_obj - spec->data > spec->size) {
+			comp_cl_err(drv, "ext init object array overflow, %u > %zu",
+				    (unsigned char *)obj - spec->data, spec->size);
+			return -EINVAL;
 		}
 		switch (obj->object_id) {
 		case IPC4_MOD_INIT_DATA_ID_DP_DATA:
@@ -67,20 +67,22 @@ module_ext_init_decode(struct comp_dev *dev, struct module_config *dst,
 				(const struct ipc4_module_init_ext_obj_dp_data *)(obj + 1);
 
 			if (obj->object_words * sizeof(uint32_t) < sizeof(*dp_data)) {
-				comp_err(dev, "dp_data object too small %u < %u",
-					 obj->object_words * sizeof(uint32_t), sizeof(*dp_data));
-				return NULL;
+				comp_cl_warn(drv, "dp_data object too small %zu < %zu",
+					     obj->object_words * sizeof(uint32_t),
+					     sizeof(*dp_data));
+				break;
 			}
-			dst->domain_id = dp_data->domain_id;
-			dst->stack_bytes = dp_data->stack_bytes;
-			dst->heap_bytes = dp_data->heap_bytes;
-			comp_info(dev, "init_ext_obj_dp_data domain %u stack %u heap %u",
-				  dp_data->domain_id, dp_data->stack_bytes, dp_data->heap_bytes);
+			ext_data->dp_data = dp_data;
+			comp_cl_info(drv,
+				     "init_ext_obj_dp_data domain %u stack %u interim %u lifetime %u shared %u",
+				     dp_data->domain_id, dp_data->stack_bytes,
+				     dp_data->interim_heap_bytes, dp_data->lifetime_heap_bytes,
+				     dp_data->shared_bytes);
 			break;
 		}
 		default:
-			comp_info(dev, "Unknown ext init object id %u of %u words",
-				  obj->object_id, obj->object_words);
+			comp_cl_info(drv, "Unknown ext init object id %u of %u words",
+				     obj->object_id, obj->object_words);
 		}
 		/* Read the last object flag from obj header */
 		last_object = obj->last_object;
@@ -88,11 +90,11 @@ module_ext_init_decode(struct comp_dev *dev, struct module_config *dst,
 		obj = next_obj;
 	}
 
-	/* Remove decoded ext_init payload from the size */
-	*size -= (unsigned char *) obj - data;
+	/* Remove decoded ext_init payload from spec */
+	spec->size -= (unsigned char *)obj - spec->data;
+	spec->data = (const unsigned char *)obj;
 
-	/* return remaining payload */
-	return (const struct ipc4_base_module_extended_cfg *)obj;
+	return 0;
 }
 
 /*
@@ -114,10 +116,7 @@ int module_adapter_init_data(struct comp_dev *dev,
 	size_t cfgsz = args->size;
 
 	assert(dev->drv->type == SOF_COMP_MODULE_ADAPTER);
-	if (config->ipc_extended_init)
-		cfg = module_ext_init_decode(dev, dst, args->data, &cfgsz);
-	else
-		cfg = (const struct ipc4_base_module_extended_cfg *)args->data;
+	cfg = (const struct ipc4_base_module_extended_cfg *)args->data;
 
 	if (cfg == NULL)
 		return -EINVAL;
diff --git a/src/audio/pipeline/pipeline-graph.c b/src/audio/pipeline/pipeline-graph.c
index 678b8095289f..05c89dc85742 100644
--- a/src/audio/pipeline/pipeline-graph.c
+++ b/src/audio/pipeline/pipeline-graph.c
@@ -108,7 +108,8 @@ void pipeline_posn_init(struct sof *sof)
 }
 
 /* create new pipeline - returns pipeline id or negative error */
-struct pipeline *pipeline_new(uint32_t pipeline_id, uint32_t priority, uint32_t comp_id)
+struct pipeline *pipeline_new(uint32_t pipeline_id, uint32_t priority, uint32_t comp_id,
+			      struct create_pipeline_params *pparams)
 {
 	struct sof_ipc_stream_posn posn;
 	struct pipeline *p;
diff --git a/src/include/ipc4/module.h b/src/include/ipc4/module.h
index a73ede0b0bd5..906cbd3e8dda 100644
--- a/src/include/ipc4/module.h
+++ b/src/include/ipc4/module.h
@@ -90,9 +90,11 @@ struct ipc4_module_init_ext_object {
 
 /* Ext init array data object for Data Processing module memory requirements */
 struct ipc4_module_init_ext_obj_dp_data {
-	uint32_t domain_id;	/* userspace domain ID */
-	uint32_t stack_bytes;	/* required stack size in bytes, 0 means default size */
-	uint32_t heap_bytes;	/* required heap size in bytes, 0 means default size */
+	uint32_t domain_id;		/* userspace domain ID */
+	uint32_t stack_bytes;		/* required stack size in bytes */
+	uint32_t interim_heap_bytes;	/* required interim heap size in bytes */
+	uint32_t lifetime_heap_bytes;	/* required lifetime heap size in bytes */
+	uint32_t shared_bytes;		/* required shared memory size in bytes */
 } __attribute__((packed, aligned(4)));
 
 /*
diff --git a/src/include/ipc4/pipeline.h b/src/include/ipc4/pipeline.h
index 219c36a89a3d..198918cf8577 100644
--- a/src/include/ipc4/pipeline.h
+++ b/src/include/ipc4/pipeline.h
@@ -69,6 +69,41 @@ enum ipc4_pipeline_state {
 	SOF_IPC4_PIPELINE_STATE_SAVED
 };
 
+/* IDs for all pipeline ext data types in struct ipc4_pipeline_init_ext_object */
+enum ipc4_pipeline_ext_obj_id {
+	IPC4_GLB_PIPE_EXT_OBJ_ID_INVALID = 0,
+	IPC4_GLB_PIPE_EXT_OBJ_ID_MEM_DATA = 1,
+	IPC4_GLB_PIPE_EXT_OBJ_ID_MAX = IPC4_GLB_PIPE_EXT_OBJ_ID_MEM_DATA,
+};
+
+/* data object for vendor bespoke data with ABI growth and backwards compat */
+struct ipc4_pipeline_ext_object {
+	uint32_t last_object : 1;	/* object is last in array if 1 else object follows. */
+	uint32_t object_id : 15;	/* unique ID for this object or globally */
+	uint32_t object_words : 16;	/* size in dwords (excluding this structure) */
+} __packed __aligned(4);
+/* the object data will be placed in memory here and will have size "object_words" */
+
+/* Ext array data object for pipeline instance's memory requirements */
+struct ipc4_pipeline_ext_obj_mem_data {
+	uint32_t domain_id;		/* userspace domain ID */
+	uint32_t stack_bytes;		/* required stack size in bytes */
+	uint32_t interim_heap_bytes;	/* required interim heap size in bytes */
+	uint32_t lifetime_heap_bytes;	/* required lifetime heap size in bytes */
+	uint32_t shared_bytes;		/* required shared memory in bytes */
+} __packed __aligned(4);
+
+/*
+ * Host Driver sends this message to create a new pipeline instance.
+ */
+struct ipc4_pipeline_ext_payload {
+	uint32_t payload_words : 24;	/* size in dwords (excluding this structure) */
+	uint32_t data_obj_array : 1;	/* struct ipc4_pipeline_ext_object data */
+	uint32_t rsvd0		: 7;
+	uint32_t rsvd1;
+	uint32_t rsvd2;
+} __packed __aligned(4);
+
 /*!
  * lp - indicates whether the pipeline should be kept on running in low power
  * mode. On BXT the driver should set this flag to 1 for WoV pipeline.
@@ -106,7 +141,8 @@ struct ipc4_pipeline_create {
 			uint32_t rsvd1          : 3;
 			uint32_t attributes     : 16;
 			uint32_t core_id        : 4;
-			uint32_t rsvd2          : 6;
+			uint32_t rsvd2          : 5;
+			uint32_t payload	: 1;
 			uint32_t _reserved_2    : 2;
 		} r;
 	} extension;
diff --git a/src/include/module/module/base.h b/src/include/module/module/base.h
index 6d7dea657314..f6d1172ddf41 100644
--- a/src/include/module/module/base.h
+++ b/src/include/module/module/base.h
@@ -23,6 +23,18 @@
 #define module_get_private_data(mod) ((mod)->priv.private)
 #define module_set_private_data(mod, data) ((mod)->priv.private = data)
 
+/**
+ * \struct module_ext_init_data
+ * \brief Container for found ext init object pointers
+ * This struct contains pointers that point to IPC payload directly. The
+ * module should store what it needs in its init() callback as the data
+ * is not valid after that.
+ */
+struct ipc4_module_init_ext_obj_dp_data;
+struct module_ext_init_data {
+	const struct ipc4_module_init_ext_obj_dp_data *dp_data;
+};
+
 /**
  * \struct module_config
  * \brief Module config container, used for both config types.
@@ -38,9 +50,7 @@ struct module_config {
 	uint8_t nb_output_pins;
 	struct ipc4_input_pin_format *input_pins;
 	struct ipc4_output_pin_format *output_pins;
-	uint32_t domain_id;	/* userspace domain ID */
-	uint32_t stack_bytes;	/* stack size in bytes, 0 means default value */
-	uint32_t heap_bytes;	/* max heap size in bytes, 0 means default value */
+	struct module_ext_init_data *ext_data; /**< IPC payload pointers, NULL after init() */
 #endif
 };
 
diff --git a/src/include/sof/audio/module_adapter/module/generic.h b/src/include/sof/audio/module_adapter/module/generic.h
index f339ac158ab0..ad65cf73cefe 100644
--- a/src/include/sof/audio/module_adapter/module/generic.h
+++ b/src/include/sof/audio/module_adapter/module/generic.h
@@ -412,7 +412,18 @@ int module_adapter_ts_get_op(struct comp_dev *dev, struct timestamp_data *tsd);
 void module_update_buffer_position(struct input_stream_buffer *input_buffers,
 				   struct output_stream_buffer *output_buffers,
 				   uint32_t frames);
-
+struct module_ext_init_data;
+#if CONFIG_IPC_MAJOR_4
+int module_ext_init_decode(const struct comp_driver *drv, struct module_ext_init_data *ext_data,
+			   struct ipc_config_process *spec);
+#else
+static inline
+int module_ext_init_decode(const struct comp_driver *drv, struct module_ext_init_data *ext_data,
+			   struct ipc_config_process *spec)
+{
+	return 0;
+}
+#endif
 int module_adapter_init_data(struct comp_dev *dev,
 			     struct module_config *dst,
 			     const struct comp_ipc_config *config,
diff --git a/src/include/sof/audio/pipeline.h b/src/include/sof/audio/pipeline.h
index 5221d330e0f1..c242865a7cf3 100644
--- a/src/include/sof/audio/pipeline.h
+++ b/src/include/sof/audio/pipeline.h
@@ -134,6 +134,13 @@ struct pipeline_task {
 	struct comp_dev *sched_comp;	/**< pipeline scheduling component */
 };
 
+struct ipc4_pipeline_ext_obj_mem_data;
+
+/** \brief For storing IPC payload data. */
+struct create_pipeline_params {
+	const struct ipc4_pipeline_ext_obj_mem_data *mem_data;
+};
+
 #define pipeline_task_get(t) container_of(t, struct pipeline_task, task)
 
 /*
@@ -148,9 +155,11 @@ struct pipeline_task {
  * \param[in] pipeline_id Pipeline ID number.
  * \param[in] priority Pipeline scheduling priority.
  * \param[in] comp_id Pipeline component ID number.
+ * \param[in] pparams Pipeline parameters from IPC payload, maybe NULL.
  * \return New pipeline pointer or NULL.
  */
-struct pipeline *pipeline_new(uint32_t pipeline_id, uint32_t priority, uint32_t comp_id);
+struct pipeline *pipeline_new(uint32_t pipeline_id, uint32_t priority, uint32_t comp_id,
+			      struct create_pipeline_params *pparams);
 
 /**
  * \brief Free's a pipeline.
diff --git a/src/ipc/ipc3/helper.c b/src/ipc/ipc3/helper.c
index 658ceaa26784..52978dcaa34f 100644
--- a/src/ipc/ipc3/helper.c
+++ b/src/ipc/ipc3/helper.c
@@ -396,7 +396,7 @@ int ipc_pipeline_new(struct ipc *ipc, ipc_pipe_new *_pipe_desc)
 
 	/* create the pipeline */
 	pipe = pipeline_new(pipe_desc->pipeline_id, pipe_desc->priority,
-			    pipe_desc->comp_id);
+			    pipe_desc->comp_id, NULL);
 	if (!pipe) {
 		tr_err(&ipc_tr, "pipeline_new() failed");
 		return -ENOMEM;
diff --git a/src/ipc/ipc4/helper.c b/src/ipc/ipc4/helper.c
index bdfac278bbc9..46c204368ee6 100644
--- a/src/ipc/ipc4/helper.c
+++ b/src/ipc/ipc4/helper.c
@@ -139,10 +139,10 @@ __cold struct comp_dev *comp_new_ipc4(struct ipc4_module_init_instance *module_i
 	ipc_config.ipc_config_size = module_init->extension.r.param_block_size * sizeof(uint32_t);
 	ipc_config.ipc_extended_init = module_init->extension.r.extended_init;
 
-	dcache_invalidate_region((__sparse_force void __sparse_cache *)MAILBOX_HOSTBOX_BASE,
-				 MAILBOX_HOSTBOX_SIZE);
-
 	data = ipc4_get_comp_new_data();
+	if (!IS_ENABLED(CONFIG_LIBRARY))
+		sys_cache_data_invd_range((__sparse_force void __sparse_cache *)data,
+					  ipc_config.ipc_config_size);
 
 #if CONFIG_LIBRARY
 	ipc_config.ipc_config_size -= sizeof(struct sof_uuid);
@@ -229,7 +229,102 @@ struct ipc_comp_dev *ipc_get_comp_by_ppl_id(struct ipc *ipc, uint16_t type,
 	return NULL;
 }
 
-__cold static int ipc4_create_pipeline(struct ipc4_pipeline_create *pipe_desc)
+/*
+ * This function currently only decodes the payload and prints out
+ * data it finds, but it does not store it anywhere.
+ */
+__cold static int ipc4_create_pipeline_payload_decode(char *data,
+						      struct create_pipeline_params *pparams)
+{
+	const struct ipc4_pipeline_ext_payload *hdr =
+		(struct ipc4_pipeline_ext_payload *)data;
+	const struct ipc4_pipeline_ext_object *obj;
+#ifdef CONFIG_DCACHE_LINE_SIZE
+	size_t cache_line_size = CONFIG_DCACHE_LINE_SIZE;
+	size_t hdr_cache_size = ALIGN_UP(sizeof(*hdr), cache_line_size);
+#endif
+	bool last_object;
+	size_t size;
+
+#ifdef CONFIG_DCACHE_LINE_SIZE
+	if (!IS_ENABLED(CONFIG_LIBRARY))
+		sys_cache_data_invd_range((__sparse_force void __sparse_cache *)data,
+					  hdr_cache_size);
+#endif
+	size = hdr->payload_words * sizeof(uint32_t);
+	last_object = !hdr->data_obj_array;
+
+	if (size < sizeof(*hdr)) {
+		tr_err(&ipc_tr, "Payload size too small: %u : %#x", hdr->payload_words,
+		       *((uint32_t *)hdr));
+		return -EINVAL;
+	}
+
+	tr_info(&ipc_tr, "payload size %u array %u: %#x", hdr->payload_words, hdr->data_obj_array,
+		*((uint32_t *)hdr));
+
+#ifdef CONFIG_DCACHE_LINE_SIZE
+	if (!IS_ENABLED(CONFIG_LIBRARY) && ALIGN_UP(size, cache_line_size) > hdr_cache_size)
+		sys_cache_data_invd_range((__sparse_force void __sparse_cache *)
+					  ((char *)data + hdr_cache_size),
+					  ALIGN_UP(size, cache_line_size) - hdr_cache_size);
+#endif
+
+	obj = (const struct ipc4_pipeline_ext_object *)(hdr + 1);
+	while (!last_object) {
+		const struct ipc4_pipeline_ext_object *next_obj;
+
+		/* Check if there is space for the object header */
+		if ((char *)(obj + 1) - data > size) {
+			tr_err(&ipc_tr, "obj header overflow, %u > %zu",
+			       (char *)(obj + 1) - data, size);
+			return -EINVAL;
+		}
+
+		/* Calculate would be next object position and check if current object fits */
+		next_obj = (const struct ipc4_pipeline_ext_object *)
+			(((const uint32_t *)(obj + 1)) + obj->object_words);
+		if ((char *)next_obj - data > size) {
+			tr_err(&ipc_tr, "object size overflow, %u > %zu",
+			       (char *)next_obj - data, size);
+			return -EINVAL;
+		}
+
+		switch (obj->object_id) {
+		case IPC4_GLB_PIPE_EXT_OBJ_ID_MEM_DATA:
+		{
+			/* Get mem_data struct that follows the obj struct */
+			const struct ipc4_pipeline_ext_obj_mem_data *mem_data =
+				(const struct ipc4_pipeline_ext_obj_mem_data *)(obj + 1);
+
+			if (obj->object_words * sizeof(uint32_t) < sizeof(*mem_data)) {
+				tr_err(&ipc_tr, "mem_data object does not fit %zu < %zu",
+				       obj->object_words * sizeof(uint32_t), sizeof(*mem_data));
+				break;
+			}
+			pparams->mem_data = mem_data;
+			tr_info(&ipc_tr,
+				"init_ext_obj_mem_data domain %u stack %u interim %u lifetime %u shared %u",
+				mem_data->domain_id, mem_data->stack_bytes,
+				mem_data->interim_heap_bytes, mem_data->lifetime_heap_bytes,
+				mem_data->shared_bytes);
+			break;
+		}
+		default:
+			tr_warn(&ipc_tr, "Unknown ext init object id %u of %u words",
+				obj->object_id, obj->object_words);
+		}
+		/* Read the last object flag from obj header */
+		last_object = obj->last_object;
+		/* Move to next object */
+		obj = next_obj;
+	}
+
+	return 0;
+}
+
+__cold static int ipc4_create_pipeline(struct ipc4_pipeline_create *pipe_desc,
+				       struct create_pipeline_params *pparams)
 {
 	struct ipc_comp_dev *ipc_pipe;
 	struct pipeline *pipe;
@@ -246,7 +341,8 @@ __cold static int ipc4_create_pipeline(struct ipc4_pipeline_create *pipe_desc)
 	}
 
 	/* create the pipeline */
-	pipe = pipeline_new(pipe_desc->primary.r.instance_id, pipe_desc->primary.r.ppl_priority, 0);
+	pipe = pipeline_new(pipe_desc->primary.r.instance_id, pipe_desc->primary.r.ppl_priority, 0,
+			    pparams);
 	if (!pipe) {
 		tr_err(&ipc_tr, "ipc: pipeline_new() failed");
 		return IPC4_OUT_OF_MEMORY;
@@ -280,11 +376,29 @@ __cold static int ipc4_create_pipeline(struct ipc4_pipeline_create *pipe_desc)
 	return IPC4_SUCCESS;
 }
 
+#if CONFIG_LIBRARY
+static inline char *ipc4_get_pipe_create_data(void)
+{
+	struct ipc *ipc = ipc_get();
+	char *data = (char *)ipc->comp_data + sizeof(struct ipc4_pipeline_create);
+
+	return data;
+}
+#else
+__cold static inline char *ipc4_get_pipe_create_data(void)
+{
+	assert_can_be_cold();
+
+	return (char *)MAILBOX_HOSTBOX_BASE;
+}
+#endif
+
 /* Only called from ipc4_new_pipeline(), which is __cold */
 __cold int ipc_pipeline_new(struct ipc *ipc, ipc_pipe_new *_pipe_desc)
 {
 	struct ipc4_pipeline_create *pipe_desc = ipc_from_pipe_new(_pipe_desc);
-
+	struct create_pipeline_params pparams = { 0 };
+	bool valid_pparams = false;
 	assert_can_be_cold();
 
 	tr_dbg(&ipc_tr, "ipc: pipeline id = %u", (uint32_t)pipe_desc->primary.r.instance_id);
@@ -293,7 +407,18 @@ __cold int ipc_pipeline_new(struct ipc *ipc, ipc_pipe_new *_pipe_desc)
 	if (!cpu_is_me(pipe_desc->extension.r.core_id))
 		return ipc4_process_on_core(pipe_desc->extension.r.core_id, false);
 
-	return ipc4_create_pipeline(pipe_desc);
+	if (pipe_desc->extension.r.payload) {
+		char *data;
+		int ret;
+
+		data = ipc4_get_pipe_create_data();
+
+		ret = ipc4_create_pipeline_payload_decode(data, &pparams);
+		if (ret == 0)
+			valid_pparams = true;
+	}
+
+	return ipc4_create_pipeline(pipe_desc, valid_pparams ? &pparams : NULL);
 }
 
 __cold static inline int ipc_comp_free_remote(struct comp_dev *dev)
diff --git a/test/cmocka/src/audio/pipeline/pipeline_new.c b/test/cmocka/src/audio/pipeline/pipeline_new.c
index c08e499a5a05..fd5145ef6d99 100644
--- a/test/cmocka/src/audio/pipeline/pipeline_new.c
+++ b/test/cmocka/src/audio/pipeline/pipeline_new.c
@@ -51,7 +51,8 @@ static void test_audio_pipeline_pipeline_new_creation(void **state)
 	/*Testing component*/
 	struct pipeline *result = pipeline_new(test_data->pipe_id,
 					       test_data->priority,
-					       test_data->comp_id);
+					       test_data->comp_id,
+					       NULL);
 
 	/*Pipeline should have been created so pointer can't be null*/
 	assert_non_null(result);
diff --git a/tools/topology/topology2/include/common/tokens.conf b/tools/topology/topology2/include/common/tokens.conf
index d1b986ab01d4..7c4f31b319ab 100644
--- a/tools/topology/topology2/include/common/tokens.conf
+++ b/tools/topology/topology2/include/common/tokens.conf
@@ -28,7 +28,9 @@ Object.Base.VendorToken {
 		scheduler_domain	418
 		domain_id		419
 		stack_bytes_requirement	420
-		heap_bytes_requirement	421
+		interim_heap_bytes_requirement	421
+		lifetime_heap_bytes_requirement 422
+		shared_bytes_requirement 423
 	}
 
 	"2" {
diff --git a/tools/topology/topology2/include/components/widget-common.conf b/tools/topology/topology2/include/components/widget-common.conf
index 851e78ae1721..43ac5691c778 100644
--- a/tools/topology/topology2/include/components/widget-common.conf
+++ b/tools/topology/topology2/include/components/widget-common.conf
@@ -149,9 +149,33 @@ DefineAttribute."stack_bytes_requirement" {
 	token_ref	"comp.word"
 }
 
-## Heap size requirement in bytes for this component. Zero indicates default heap size.
-DefineAttribute."heap_bytes_requirement" {
+## Interim Heap size requirement in bytes for this component.
+## Used for resources that may change in size or be freed during the lifetime of the component.
+## In practice this means anything allocated outside module's init() call-back.
+DefineAttribute."interim_heap_bytes_requirement" {
 	# Token set reference name and type
 	token_ref	"comp.word"
 }
 
+## Lifetime heap memory allocation requirement in bytes for this component.
+## This token's value indicates the amount of allocated memory needed at component init phase
+## and used over the lifetime of the component until the component is destroyed.
+## In practice this means anything allocated in init() call-back.
+DefineAttribute."lifetime_heap_bytes_requirement" {
+	# Token set reference name and type
+	token_ref	"comp.word"
+}
+
+## Shared memory allocation requirement in bytes for this component.
+## This token's value indicates the amount of shared memory the component may need to allocated.
+## Shared memory may be shared to other components.
+DefineAttribute."shared_bytes_requirement" {
+	# Token set reference name and type
+	token_ref	"comp.word"
+}
+
+# These default values are here until we have measured module specific numbers
+stack_bytes_requirement		8192
+interim_heap_bytes_requirement	4096
+lifetime_heap_bytes_requirement	16384
+shared_bytes_requirement	4096
\ No newline at end of file