diff --git a/Backend/server.py b/Backend/server.py
index 8f4e278..cfcc6ea 100644
--- a/Backend/server.py
+++ b/Backend/server.py
@@ -16,6 +16,8 @@ from flask_socketio import SocketIO, emit, disconnect
 from generator import load_csm_1b, Segment
 from collections import deque
 from threading import Lock
+from transformers import pipeline
+from transformers import AutoModelForCausalLM, AutoTokenizer, pipeline
 
 # Configure logging
 logging.basicConfig(
@@ -84,29 +86,76 @@ logger.info("Initialized simple speech detector")
 
 # Model Loading Functions
 def load_speech_models():
-    """Load speech generation model"""
-    # Load speech generation model (Sesame CSM)
-    try:
-        logger.info(f"Loading Sesame CSM model on {device}...")
-        generator = load_csm_1b(device=device)
-        logger.info("Sesame CSM model loaded successfully")
-    except Exception as e:
-        logger.error(f"Error loading Sesame CSM on {device}: {e}")
-        if device == "cuda":
-            try:
-                logger.info("Trying to load Sesame CSM on CPU instead...")
-                generator = load_csm_1b(device="cpu")
-                logger.info("Sesame CSM model loaded on CPU successfully")
-            except Exception as cpu_error:
-                logger.critical(f"Failed to load speech synthesis model: {cpu_error}")
-                raise RuntimeError("Failed to load speech synthesis model")
-        else:
-            raise RuntimeError("Failed to load speech synthesis model on any device")
+    """Load speech generation and recognition models"""
+    # Load CSM (existing code)
+    generator = load_csm_1b(device=device)
     
-    return generator
+    # Load Whisper model for speech recognition
+    try:
+        logger.info(f"Loading speech recognition model on {device}...")
+        speech_recognizer = pipeline("automatic-speech-recognition", 
+                                    model="openai/whisper-small", 
+                                    device=device)
+        logger.info("Speech recognition model loaded successfully")
+    except Exception as e:
+        logger.error(f"Error loading speech recognition model: {e}")
+        speech_recognizer = None
+    
+    return generator, speech_recognizer
 
-# Load speech model
-generator = load_speech_models()
+# Unpack both models
+generator, speech_recognizer = load_speech_models()
+
+# Initialize Llama 3.2 model for conversation responses
+def load_llm_model():
+    """Load Llama 3.2 model for generating text responses"""
+    try:
+        logger.info("Loading Llama 3.2 model for conversational responses...")
+        model_id = "meta-llama/Llama-3.2-1B-Instruct"
+        tokenizer = AutoTokenizer.from_pretrained(model_id)
+        
+        # Determine compute device for LLM
+        llm_device = "cpu"  # Default to CPU for LLM
+        
+        # Use CUDA if available and there's enough VRAM
+        if device == "cuda" and torch.cuda.is_available():
+            try:
+                free_mem = torch.cuda.get_device_properties(0).total_memory - torch.cuda.memory_allocated(0)
+                # If we have at least 2GB free, use CUDA for LLM
+                if free_mem > 2 * 1024 * 1024 * 1024:
+                    llm_device = "cuda"
+            except:
+                pass
+        
+        logger.info(f"Using {llm_device} for Llama 3.2 model")
+        
+        # Load the model with lower precision for efficiency
+        model = AutoModelForCausalLM.from_pretrained(
+            model_id, 
+            torch_dtype=torch.float16 if llm_device == "cuda" else torch.float32,
+            device_map=llm_device
+        )
+        
+        # Create a pipeline for easier inference
+        llm = pipeline(
+            "text-generation",
+            model=model,
+            tokenizer=tokenizer,
+            max_length=512,
+            do_sample=True,
+            temperature=0.7,
+            top_p=0.9,
+            repetition_penalty=1.1
+        )
+        
+        logger.info("Llama 3.2 model loaded successfully")
+        return llm
+    except Exception as e:
+        logger.error(f"Error loading Llama 3.2 model: {e}")
+        return None
+
+# Load the LLM model
+llm = load_llm_model()
 
 # Set up Flask and Socket.IO
 app = Flask(__name__)
@@ -249,26 +298,116 @@ def encode_audio_data(audio_tensor: torch.Tensor) -> str:
         return f"data:audio/wav;base64,{base64.b64encode(buf.read()).decode('utf-8')}"
 
 def process_speech(audio_tensor: torch.Tensor, client_id: str) -> str:
-    """Process speech and return a simple response"""
-    # In this simplified version, we'll just check if there's sound
-    # and provide basic responses instead of doing actual speech recognition
+    """Process speech with speech recognition"""
+    if not speech_recognizer:
+        # Fallback to basic detection if model failed to load
+        return detect_speech_energy(audio_tensor)
     
-    if speech_detector and speech_detector.detect_speech(audio_tensor, generator.sample_rate):
-        # Generate a response based on audio energy
-        energy = torch.mean(torch.abs(audio_tensor)).item()
+    try:
+        # Save audio to temp file for Whisper
+        temp_path = os.path.join(base_dir, f"temp_{time.time()}.wav")
+        torchaudio.save(temp_path, audio_tensor.unsqueeze(0).cpu(), generator.sample_rate)
         
-        if energy > 0.1:  # Louder speech
-            return "I heard you speaking clearly. How can I help you today?"
-        elif energy > 0.05:  # Moderate speech
-            return "I heard you say something. Could you please repeat that?"
-        else:  # Soft speech
-            return "I detected some speech, but it was quite soft. Could you speak up a bit?"
-    else:
+        # Perform speech recognition
+        result = speech_recognizer(temp_path)
+        transcription = result["text"]
+        
+        # Clean up temp file
+        if os.path.exists(temp_path):
+            os.remove(temp_path)
+        
+        # Return empty string if no speech detected
+        if not transcription or transcription.isspace():
+            return "I didn't detect any speech. Could you please try again?"
+        
+        return transcription
+        
+    except Exception as e:
+        logger.error(f"Speech recognition error: {e}")
+        return "Sorry, I couldn't understand what you said. Could you try again?"
+
+def detect_speech_energy(audio_tensor: torch.Tensor) -> str:
+    """Basic speech detection based on audio energy levels"""
+    # Calculate audio energy
+    energy = torch.mean(torch.abs(audio_tensor)).item()
+    
+    logger.debug(f"Audio energy detected: {energy:.6f}")
+    
+    # Generate response based on energy level
+    if energy > 0.1:  # Louder speech
+        return "I heard you speaking clearly. How can I help you today?"
+    elif energy > 0.05:  # Moderate speech
+        return "I heard you say something. Could you please repeat that?"
+    elif energy > 0.02:  # Soft speech
+        return "I detected some speech, but it was quite soft. Could you speak up a bit?"
+    else:  # Very soft or no speech
         return "I didn't detect any speech. Could you please try again?"
 
 def generate_response(text: str, conversation_history: List[Segment]) -> str:
-    """Generate a contextual response based on the transcribed text"""
-    # Simple response logic - can be replaced with a more sophisticated LLM
+    """Generate a contextual response based on the transcribed text using Llama 3.2"""
+    # If LLM is not available, use simple responses
+    if llm is None:
+        return generate_simple_response(text)
+    
+    try:
+        # Create a conversational prompt based on history
+        # Format: recent conversation turns (up to 4) + current user input
+        history_str = ""
+        
+        # Add up to 4 recent conversation turns (excluding the current one)
+        recent_segments = [
+            seg for seg in conversation_history[-8:] 
+            if seg.text and not seg.text.isspace()
+        ]
+        
+        for i, segment in enumerate(recent_segments):
+            speaker_name = "User" if segment.speaker == 0 else "Assistant"
+            history_str += f"{speaker_name}: {segment.text}\n"
+            
+        # Construct the prompt for Llama 3.2
+        prompt = f"""<|system|>
+You are Sesame, a helpful, friendly and concise voice assistant. 
+Keep your responses conversational, natural, and to the point.
+Respond to the user's latest message in the context of the conversation.
+<|end|>
+
+{history_str}
+User: {text}
+Assistant:"""
+
+        logger.debug(f"LLM Prompt: {prompt}")
+        
+        # Generate response with the LLM
+        result = llm(
+            prompt,
+            max_new_tokens=150,
+            do_sample=True,
+            temperature=0.7,
+            top_p=0.9,
+            repetition_penalty=1.1
+        )
+        
+        # Extract the generated text
+        response = result[0]["generated_text"]
+        
+        # Extract just the Assistant's response (after the prompt)
+        response = response.split("Assistant:")[-1].strip()
+        
+        # Clean up and ensure it's not too long for TTS
+        response = response.split("\n")[0].strip()
+        if len(response) > 200:
+            response = response[:197] + "..."
+            
+        logger.info(f"LLM response: {response}")
+        return response
+        
+    except Exception as e:
+        logger.error(f"Error generating LLM response: {e}")
+        # Fall back to simple responses
+        return generate_simple_response(text)
+
+def generate_simple_response(text: str) -> str:
+    """Generate a simple rule-based response as fallback"""
     responses = {
         "hello": "Hello there! How can I help you today?",
         "hi": "Hi there! What can I do for you?",
@@ -295,7 +434,7 @@ def generate_response(text: str, conversation_history: List[Segment]) -> str:
     elif len(text) < 10:
         return "Thanks for your message. Could you elaborate a bit more?"
     else:
-        return f"I heard you speaking. That's interesting! Can you tell me more about that?"
+        return f"I heard you say something about that. Can you tell me more?"
 
 # Flask Routes
 @app.route('/')