diff --git a/api/base/v1alpha1/datasource.go b/api/base/v1alpha1/datasource.go
index ded3e0380..fa00ff10f 100644
--- a/api/base/v1alpha1/datasource.go
+++ b/api/base/v1alpha1/datasource.go
@@ -21,6 +21,15 @@ import (
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 )
 
+func (datasource Datasource) TypedObjectReference() *TypedObjectReference {
+	return &TypedObjectReference{
+		APIGroup:  &GroupVersion.Group,
+		Kind:      "Datasource",
+		Name:      datasource.Name,
+		Namespace: &datasource.Namespace,
+	}
+}
+
 const (
 	LabelDatasourceType = Group + "/datasource-type"
 )
diff --git a/api/base/v1alpha1/embedder.go b/api/base/v1alpha1/embedder.go
index be81ed316..fee03bea0 100644
--- a/api/base/v1alpha1/embedder.go
+++ b/api/base/v1alpha1/embedder.go
@@ -26,6 +26,15 @@ import (
 	"github.com/kubeagi/arcadia/pkg/embeddings"
 )
 
+func (e Embedder) TypedObjectReference() *TypedObjectReference {
+	return &TypedObjectReference{
+		APIGroup:  &GroupVersion.Group,
+		Kind:      "Embedder",
+		Name:      e.Name,
+		Namespace: &e.Namespace,
+	}
+}
+
 func (e Embedder) AuthAPIKey(ctx context.Context, c client.Client) (string, error) {
 	if e.Spec.Endpoint == nil {
 		return "", nil
diff --git a/api/base/v1alpha1/knowledgebase.go b/api/base/v1alpha1/knowledgebase.go
index d2b977862..2cb1ac87c 100644
--- a/api/base/v1alpha1/knowledgebase.go
+++ b/api/base/v1alpha1/knowledgebase.go
@@ -6,6 +6,21 @@ import (
 	"k8s.io/utils/pointer"
 )
 
+const (
+	LabelKnowledgeBaseType = Group + "/knowledgebase-type"
+)
+
+type KnowledgeBaseType string
+
+const (
+	KnowledgeBaseTypeNormal       KnowledgeBaseType = "normal"
+	KnowledgeBaseTypeConversation KnowledgeBaseType = "conversation"
+)
+
+func (kb *KnowledgeBase) IsTypeConversation() bool {
+	return kb.Spec.Type == KnowledgeBaseTypeConversation
+}
+
 const (
 	// UpdateSourceFileAnnotationKey is the key of the update source file annotation
 	UpdateSourceFileAnnotationKey = Group + "/update-source-file-time"
diff --git a/api/base/v1alpha1/knowledgebase_types.go b/api/base/v1alpha1/knowledgebase_types.go
index 2be2fbd2b..40a8119bf 100644
--- a/api/base/v1alpha1/knowledgebase_types.go
+++ b/api/base/v1alpha1/knowledgebase_types.go
@@ -24,6 +24,10 @@ import (
 type KnowledgeBaseSpec struct {
 	CommonSpec `json:",inline"`
 
+	// Type defines the type of knowledgebase
+	// +kubebuilder:default=normal
+	Type KnowledgeBaseType `json:"type,omitempty"`
+
 	// Embedder defines the embedder to embedding files
 	Embedder *TypedObjectReference `json:"embedder,omitempty"`
 
@@ -112,6 +116,7 @@ type KnowledgeBaseStatus struct {
 //+kubebuilder:object:root=true
 //+kubebuilder:subresource:status
 //+kubebuilder:printcolumn:name="display-name",type=string,JSONPath=`.spec.displayName`
+//+kubebuilder:printcolumn:name="type",type=string,JSONPath=`.spec.type`
 
 // KnowledgeBase is the Schema for the knowledgebases API
 type KnowledgeBase struct {
diff --git a/api/base/v1alpha1/vectorstore.go b/api/base/v1alpha1/vectorstore.go
index b86d33fb8..e0f4b3132 100644
--- a/api/base/v1alpha1/vectorstore.go
+++ b/api/base/v1alpha1/vectorstore.go
@@ -21,6 +21,15 @@ import (
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 )
 
+func (vs VectorStore) TypedObjectReference() *TypedObjectReference {
+	return &TypedObjectReference{
+		APIGroup:  &GroupVersion.Group,
+		Kind:      "VectorStore",
+		Name:      vs.Name,
+		Namespace: &vs.Namespace,
+	}
+}
+
 const (
 	LabelVectorStoreType = Group + "/vectorstore-type"
 )
diff --git a/apiserver/pkg/chat/chat_docs.go b/apiserver/pkg/chat/chat_docs.go
index 5f219cce7..49bcf213c 100644
--- a/apiserver/pkg/chat/chat_docs.go
+++ b/apiserver/pkg/chat/chat_docs.go
@@ -29,13 +29,17 @@ import (
 
 	"github.com/jackc/pgx/v5/pgconn"
 	"github.com/minio/minio-go/v7"
+	v1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 	"k8s.io/apimachinery/pkg/util/uuid"
 	"k8s.io/klog/v2"
+	"sigs.k8s.io/controller-runtime/pkg/controller/controllerutil"
 
 	arcadiav1alpha1 "github.com/kubeagi/arcadia/api/base/v1alpha1"
 	"github.com/kubeagi/arcadia/apiserver/pkg/auth"
 	"github.com/kubeagi/arcadia/apiserver/pkg/chat/storage"
+	pkgclient "github.com/kubeagi/arcadia/apiserver/pkg/client"
 	"github.com/kubeagi/arcadia/apiserver/pkg/common"
+	"github.com/kubeagi/arcadia/pkg/config"
 )
 
 // ReceiveConversationDocs receive and process docs for a conversation
@@ -118,6 +122,13 @@ func (cs *ChatServer) ReceiveConversationFile(ctx context.Context, messageID str
 		Object:         objectPath,
 	}
 
+	// build/update conversation knowledgebase
+	err = cs.BuildConversationKnowledgeBase(ctx, req, document)
+	if err != nil {
+		// only log error
+		klog.Errorf("failed to build conversation knowledgebase %s with error %s", req.ConversationID, err.Error())
+	}
+
 	// process document with map-reduce
 	message := storage.Message{
 		ID:        messageID,
@@ -157,3 +168,60 @@ func (cs *ChatServer) ReceiveConversationFile(ctx context.Context, messageID str
 		},
 	}, nil
 }
+
+// BuildConversationKnowledgeBase create/updates knowledgebase for this conversation.
+// Conversation ID will be the knowledgebase name and document will be placed unde filegroup
+// Knoweledgebase will embed the document into vectorstore which can be used in this conversation as references(similarity search)
+func (cs *ChatServer) BuildConversationKnowledgeBase(ctx context.Context, req ConversationFilesReqBody, document storage.Document) error {
+	// get system embedding suite
+	embedder, vs, err := common.SystemEmbeddingSuite(ctx, cs.cli)
+	if err != nil {
+		return err
+	}
+
+	// new knowledgebase
+	kb := &arcadiav1alpha1.KnowledgeBase{
+		ObjectMeta: v1.ObjectMeta{
+			Name:      req.ConversationID,
+			Namespace: req.AppNamespace,
+			Labels: map[string]string{
+				arcadiav1alpha1.LabelKnowledgeBaseType: string(arcadiav1alpha1.KnowledgeBaseTypeConversation),
+			},
+		},
+		Spec: arcadiav1alpha1.KnowledgeBaseSpec{
+			CommonSpec: arcadiav1alpha1.CommonSpec{
+				DisplayName: "Conversation",
+				Description: "Knowledgebase built for conversation",
+			},
+			Type:        arcadiav1alpha1.KnowledgeBaseTypeConversation,
+			Embedder:    embedder.TypedObjectReference(),
+			VectorStore: vs.TypedObjectReference(),
+			FileGroups:  make([]arcadiav1alpha1.FileGroup, 0),
+		},
+	}
+
+	// app as ownerreference
+	app, _, err := cs.getApp(ctx, req.APPName, req.AppNamespace)
+	if err != nil {
+		return err
+	}
+	// systemDatasource which stores the document
+	systemDatasource, err := config.GetSystemDatasource(ctx, cs.cli)
+	if err != nil {
+		return err
+	}
+	// create or update the conversation knowledgebase
+	_, err = controllerutil.CreateOrUpdate(ctx, cs.cli, kb, func() error {
+		if err := controllerutil.SetControllerReference(app, kb, pkgclient.Scheme); err != nil {
+			return err
+		}
+		// append document path
+		kb.Spec.FileGroups = append(kb.Spec.FileGroups, arcadiav1alpha1.FileGroup{
+			Source: systemDatasource.TypedObjectReference(),
+			Paths:  []string{document.Object},
+		})
+		return nil
+	})
+
+	return err
+}
diff --git a/config/crd/bases/arcadia.kubeagi.k8s.com.cn_knowledgebases.yaml b/config/crd/bases/arcadia.kubeagi.k8s.com.cn_knowledgebases.yaml
index ed3d6ef6e..a21d6ae0a 100644
--- a/config/crd/bases/arcadia.kubeagi.k8s.com.cn_knowledgebases.yaml
+++ b/config/crd/bases/arcadia.kubeagi.k8s.com.cn_knowledgebases.yaml
@@ -19,6 +19,9 @@ spec:
     - jsonPath: .spec.displayName
       name: display-name
       type: string
+    - jsonPath: .spec.type
+      name: type
+      type: string
     name: v1alpha1
     schema:
       openAPIV3Schema:
@@ -117,6 +120,10 @@ spec:
                       type: object
                   type: object
                 type: array
+              type:
+                default: normal
+                description: Type defines the type of knowledgebase
+                type: string
               vectorStore:
                 description: VectorStore defines the vectorstore to store results
                 properties:
diff --git a/controllers/base/knowledgebase_controller.go b/controllers/base/knowledgebase_controller.go
index 26749326c..6a86aa226 100644
--- a/controllers/base/knowledgebase_controller.go
+++ b/controllers/base/knowledgebase_controller.go
@@ -24,6 +24,7 @@ import (
 	"io"
 	"path/filepath"
 	"reflect"
+	"strings"
 	"sync"
 	"time"
 
@@ -353,34 +354,64 @@ func (r *KnowledgeBaseReconciler) reconcileFileGroup(ctx context.Context, log lo
 	if group.Source == nil {
 		return errNoSource
 	}
-	versionedDataset := &arcadiav1alpha1.VersionedDataset{}
+
 	ns := kb.Namespace
 	if group.Source.Namespace != nil {
 		ns = *group.Source.Namespace
 	}
-	if err = r.Get(ctx, types.NamespacedName{Name: group.Source.Name, Namespace: ns}, versionedDataset); err != nil {
-		if apierrors.IsNotFound(err) {
-			return errNoSource
-		}
-		return err
-	}
-	if !versionedDataset.Status.IsReady() {
-		return errDataSourceNotReady
-	}
 
-	system, err := config.GetSystemDatasource(ctx, r.Client)
-	if err != nil {
-		return err
-	}
-	endpoint := system.Spec.Endpoint.DeepCopy()
-	if endpoint != nil && endpoint.AuthSecret != nil {
-		endpoint.AuthSecret.WithNameSpace(system.Namespace)
-	}
-	ds, err := datasource.NewLocal(ctx, r.Client, endpoint)
-	if err != nil {
-		return err
-	}
+	var ds datasource.Datasource
 	info := &arcadiav1alpha1.OSS{Bucket: ns}
+	var vsBasePath string
+	switch strings.ToLower(group.Source.Kind) {
+	case "versioneddataset":
+		versionedDataset := &arcadiav1alpha1.VersionedDataset{}
+		if err = r.Get(ctx, types.NamespacedName{Name: group.Source.Name, Namespace: ns}, versionedDataset); err != nil {
+			if apierrors.IsNotFound(err) {
+				return errNoSource
+			}
+			return err
+		}
+		if versionedDataset.Spec.Dataset == nil {
+			return fmt.Errorf("versionedDataset.Spec.Dataset is nil")
+		}
+		if !versionedDataset.Status.IsReady() {
+			return errDataSourceNotReady
+		}
+		system, err := config.GetSystemDatasource(ctx, r.Client)
+		if err != nil {
+			return err
+		}
+		endpoint := system.Spec.Endpoint.DeepCopy()
+		if endpoint != nil && endpoint.AuthSecret != nil {
+			endpoint.AuthSecret.WithNameSpace(system.Namespace)
+		}
+		ds, err = datasource.NewLocal(ctx, r.Client, endpoint)
+		if err != nil {
+			return err
+		}
+		// basepath for this versioneddataset
+		vsBasePath = filepath.Join("dataset", versionedDataset.Spec.Dataset.Name, versionedDataset.Spec.Version)
+	case "datasource":
+		dsObj := &arcadiav1alpha1.Datasource{}
+		if err = r.Get(ctx, types.NamespacedName{Name: group.Source.Name, Namespace: ns}, dsObj); err != nil {
+			if apierrors.IsNotFound(err) {
+				return errNoSource
+			}
+			return err
+		}
+		if !dsObj.Status.IsReady() {
+			return errDataSourceNotReady
+		}
+		ds, err = datasource.NewOSS(ctx, r.Client, &dsObj.Spec.Endpoint)
+		if err != nil {
+			return err
+		}
+		// for none-conversation knowledgebase, bucket is the same as datasource.
+		if kb.Spec.Type != arcadiav1alpha1.KnowledgeBaseTypeConversation {
+			info.Bucket = dsObj.Spec.OSS.Bucket
+		}
+	}
 
 	if len(kb.Status.FileGroupDetail) == 0 {
 		// brand new knowledgebase, init status.
@@ -391,7 +422,7 @@ func (r *KnowledgeBaseReconciler) reconcileFileGroup(ctx context.Context, log lo
 	var fileGroupDetail *arcadiav1alpha1.FileGroupDetail
 	pathMap := make(map[string]*arcadiav1alpha1.FileDetails, 1)
 	for i, detail := range kb.Status.FileGroupDetail {
-		if detail.Source != nil && detail.Source.Name == versionedDataset.Name && detail.Source.GetNamespace(kb.GetNamespace()) == versionedDataset.GetNamespace() {
+		if detail.Source != nil && detail.Source.Name == group.Source.Name && detail.Source.GetNamespace(kb.GetNamespace()) == ns {
 			fileGroupDetail = &kb.Status.FileGroupDetail[i]
 			for i, detail := range fileGroupDetail.FileDetails {
 				pathMap[detail.Path] = &fileGroupDetail.FileDetails[i]
@@ -430,13 +461,15 @@ func (r *KnowledgeBaseReconciler) reconcileFileGroup(ctx context.Context, log lo
 			})
 			fileDetail = &fileGroupDetail.FileDetails[len(fileGroupDetail.FileDetails)-1]
 		}
-		if versionedDataset.Spec.Dataset == nil {
-			err = fmt.Errorf("versionedDataset.Spec.Dataset is nil")
-			errs = append(errs, err)
-			fileDetail.UpdateErr(err, arcadiav1alpha1.FileProcessPhaseFailed)
-			continue
+
+		switch strings.ToLower(group.Source.Kind) {
+		case "versioneddataset":
+			// info.Object has been
+			info.Object = filepath.Join(vsBasePath, path)
+		case "datasource":
+			info.Object = path
 		}
-		info.Object = filepath.Join("dataset", versionedDataset.Spec.Dataset.Name, versionedDataset.Spec.Version, path)
+
 		stat, err := ds.StatFile(ctx, info)
 		log.V(5).Info(fmt.Sprintf("raw StatFile:%#v", stat), "path", path)
 		if err != nil {
diff --git a/deploy/charts/arcadia/Chart.yaml b/deploy/charts/arcadia/Chart.yaml
index ee2ddbe6d..5615037a5 100644
--- a/deploy/charts/arcadia/Chart.yaml
+++ b/deploy/charts/arcadia/Chart.yaml
@@ -2,7 +2,7 @@ apiVersion: v2
 name: arcadia
 description: A Helm chart(Also a KubeBB Component) for KubeAGI Arcadia
 type: application
-version: 0.3.16
+version: 0.3.17
 appVersion: "0.2.0"
 
 keywords:
diff --git a/deploy/charts/arcadia/crds/arcadia.kubeagi.k8s.com.cn_knowledgebases.yaml b/deploy/charts/arcadia/crds/arcadia.kubeagi.k8s.com.cn_knowledgebases.yaml
index ed3d6ef6e..a21d6ae0a 100644
--- a/deploy/charts/arcadia/crds/arcadia.kubeagi.k8s.com.cn_knowledgebases.yaml
+++ b/deploy/charts/arcadia/crds/arcadia.kubeagi.k8s.com.cn_knowledgebases.yaml
@@ -19,6 +19,9 @@ spec:
     - jsonPath: .spec.displayName
       name: display-name
       type: string
+    - jsonPath: .spec.type
+      name: type
+      type: string
     name: v1alpha1
     schema:
       openAPIV3Schema:
@@ -117,6 +120,10 @@ spec:
                       type: object
                   type: object
                 type: array
+              type:
+                default: normal
+                description: Type defines the type of knowledgebase
+                type: string
               vectorStore:
                 description: VectorStore defines the vectorstore to store results
                 properties: