diff --git a/site/src/components/RichParameterInput/RichParameterInput.stories.tsx b/site/src/components/RichParameterInput/RichParameterInput.stories.tsx
index 4dcfda0ccaf4d..cef7f66388b0c 100644
--- a/site/src/components/RichParameterInput/RichParameterInput.stories.tsx
+++ b/site/src/components/RichParameterInput/RichParameterInput.stories.tsx
@@ -19,7 +19,7 @@ const createTemplateVersionParameter = (
     name: "first_parameter",
     description: "This is first parameter.",
     type: "string",
-    mutable: false,
+    mutable: true,
     default_value: "default string",
     icon: "/icon/folder.svg",
     options: [],
@@ -47,6 +47,46 @@ export const Basic: Story = {
   },
 };
 
+export const Optional: Story = {
+  args: {
+    value: "initial-value",
+    id: "project_name",
+    parameter: createTemplateVersionParameter({
+      required: false,
+      name: "project_name",
+      description:
+        "Customize the name of a Google Cloud project that will be created!",
+    }),
+  },
+};
+
+export const Immutable: Story = {
+  args: {
+    value: "initial-value",
+    id: "project_name",
+    parameter: createTemplateVersionParameter({
+      mutable: false,
+      name: "project_name",
+      description:
+        "Customize the name of a Google Cloud project that will be created!",
+    }),
+  },
+};
+
+export const WithError: Story = {
+  args: {
+    id: "number_parameter",
+    parameter: createTemplateVersionParameter({
+      name: "number_parameter",
+      type: "number",
+      description: "Numeric parameter",
+      default_value: "",
+    }),
+    error: true,
+    helperText: "Number must be greater than 5",
+  },
+};
+
 export const NumberType: Story = {
   args: {
     value: "4",
diff --git a/site/src/components/RichParameterInput/RichParameterInput.tsx b/site/src/components/RichParameterInput/RichParameterInput.tsx
index 331c67864ad65..fe9d961d0d7c2 100644
--- a/site/src/components/RichParameterInput/RichParameterInput.tsx
+++ b/site/src/components/RichParameterInput/RichParameterInput.tsx
@@ -10,6 +10,8 @@ import { MemoizedMarkdown } from "components/Markdown/Markdown";
 import { Stack } from "components/Stack/Stack";
 import { MultiTextField } from "./MultiTextField";
 import { ExternalImage } from "components/ExternalImage/ExternalImage";
+import { Pill } from "components/Pill/Pill";
+import ErrorOutline from "@mui/icons-material/ErrorOutline";
 
 const isBoolean = (parameter: TemplateVersionParameter) => {
   return parameter.type === "bool";
@@ -31,7 +33,11 @@ const styles = {
   labelPrimary: (theme) => ({
     fontSize: 16,
     color: theme.palette.text.primary,
-    fontWeight: 600,
+    fontWeight: 500,
+    display: "flex",
+    alignItems: "center",
+    flexWrap: "wrap",
+    gap: 8,
 
     "& p": {
       margin: 0,
@@ -42,6 +48,11 @@ const styles = {
       fontSize: 14,
     },
   }),
+  optionalLabel: (theme) => ({
+    fontSize: 14,
+    color: theme.palette.text.disabled,
+    fontWeight: 500,
+  }),
   textField: {
     ".small & .MuiInputBase-root": {
       height: 36,
@@ -102,6 +113,25 @@ const ParameterLabel: FC<ParameterLabelProps> = ({ parameter }) => {
     ? parameter.display_name
     : parameter.name;
 
+  const labelPrimary = (
+    <span css={styles.labelPrimary}>
+      {displayName}
+
+      {!parameter.required && (
+        <Tooltip title="If no value is specified, the system will default to the value set by the administrator.">
+          <span css={styles.optionalLabel}>(optional)</span>
+        </Tooltip>
+      )}
+      {!parameter.mutable && (
+        <Tooltip title="This value cannot be modified after the workspace has been created.">
+          <Pill type="warning" icon={<ErrorOutline />}>
+            Immutable
+          </Pill>
+        </Tooltip>
+      )}
+    </span>
+  );
+
   return (
     <label htmlFor={parameter.name}>
       <Stack direction="row" alignItems="center">
@@ -117,13 +147,13 @@ const ParameterLabel: FC<ParameterLabelProps> = ({ parameter }) => {
 
         {hasDescription ? (
           <Stack spacing={0}>
-            <span css={styles.labelPrimary}>{displayName}</span>
+            {labelPrimary}
             <MemoizedMarkdown css={styles.labelCaption}>
               {parameter.description}
             </MemoizedMarkdown>
           </Stack>
         ) : (
-          <span css={styles.labelPrimary}>{displayName}</span>
+          labelPrimary
         )}
       </Stack>
     </label>
diff --git a/site/src/components/TemplateParameters/TemplateParameters.tsx b/site/src/components/TemplateParameters/TemplateParameters.tsx
index 9befc7c74051f..d01f5b29bf671 100644
--- a/site/src/components/TemplateParameters/TemplateParameters.tsx
+++ b/site/src/components/TemplateParameters/TemplateParameters.tsx
@@ -14,9 +14,11 @@ export type TemplateParametersSectionProps = {
   ) => Omit<RichParameterInputProps, "parameter" | "index">;
 } & Pick<ComponentProps<typeof FormSection>, "classes">;
 
-export const MutableTemplateParametersSection: FC<
-  TemplateParametersSectionProps
-> = ({ templateParameters, getInputProps, ...formSectionProps }) => {
+export const TemplateParametersSection: FC<TemplateParametersSectionProps> = ({
+  templateParameters,
+  getInputProps,
+  ...formSectionProps
+}) => {
   const hasMutableParameters =
     templateParameters.filter((p) => p.mutable).length > 0;
 
@@ -45,40 +47,3 @@ export const MutableTemplateParametersSection: FC<
     </>
   );
 };
-
-export const ImmutableTemplateParametersSection: FC<
-  TemplateParametersSectionProps
-> = ({ templateParameters, getInputProps, ...formSectionProps }) => {
-  const hasImmutableParameters =
-    templateParameters.filter((p) => !p.mutable).length > 0;
-
-  return (
-    <>
-      {hasImmutableParameters && (
-        <FormSection
-          {...formSectionProps}
-          title="Immutable parameters"
-          description={
-            <>
-              These settings <strong>cannot be changed</strong> after creating
-              the workspace.
-            </>
-          }
-        >
-          <FormFields>
-            {templateParameters.map(
-              (parameter, index) =>
-                !parameter.mutable && (
-                  <RichParameterInput
-                    {...getInputProps(parameter, index)}
-                    key={parameter.name}
-                    parameter={parameter}
-                  />
-                ),
-            )}
-          </FormFields>
-        </FormSection>
-      )}
-    </>
-  );
-};
diff --git a/site/src/pages/CreateWorkspacePage/CreateWorkspacePageView.tsx b/site/src/pages/CreateWorkspacePage/CreateWorkspacePageView.tsx
index b6b6968e945d6..a7aabb56a57ae 100644
--- a/site/src/pages/CreateWorkspacePage/CreateWorkspacePageView.tsx
+++ b/site/src/pages/CreateWorkspacePage/CreateWorkspacePageView.tsx
@@ -1,5 +1,4 @@
-import { css } from "@emotion/css";
-import { useTheme, type Interpolation, type Theme } from "@emotion/react";
+import { type Interpolation, type Theme } from "@emotion/react";
 import TextField from "@mui/material/TextField";
 import type * as TypesGen from "api/typesGenerated";
 import { UserAutocomplete } from "components/UserAutocomplete/UserAutocomplete";
@@ -21,10 +20,6 @@ import {
   getInitialRichParameterValues,
   useValidationSchemaForRichParameters,
 } from "utils/richParameters";
-import {
-  ImmutableTemplateParametersSection,
-  MutableTemplateParametersSection,
-} from "components/TemplateParameters/TemplateParameters";
 import { ErrorAlert } from "components/Alert/ErrorAlert";
 import { Stack } from "components/Stack/Stack";
 import {
@@ -44,6 +39,7 @@ import {
   PageHeaderSubtitle,
 } from "components/PageHeader/PageHeader";
 import { Pill } from "components/Pill/Pill";
+import { RichParameterInput } from "components/RichParameterInput/RichParameterInput";
 
 export const Language = {
   duplicationWarning:
@@ -90,7 +86,6 @@ export const CreateWorkspacePageView: FC<CreateWorkspacePageViewProps> = ({
   onSubmit,
   onCancel,
 }) => {
-  const theme = useTheme();
   const [owner, setOwner] = useState(defaultOwner);
   const [searchParams] = useSearchParams();
   const disabledParamsList = searchParams?.get("disable_params")?.split(",");
@@ -222,65 +217,41 @@ export const CreateWorkspacePageView: FC<CreateWorkspacePageViewProps> = ({
             </FormFields>
           </FormSection>
 
-          {parameters && (
-            <>
-              <MutableTemplateParametersSection
-                templateParameters={parameters}
-                getInputProps={(parameter, index) => {
-                  return {
-                    ...getFieldHelpers(
-                      "rich_parameter_values[" + index + "].value",
-                    ),
-                    onChange: async (value) => {
-                      await form.setFieldValue(
-                        "rich_parameter_values." + index,
-                        {
-                          name: parameter.name,
-                          value: value,
-                        },
-                      );
-                    },
-                    disabled:
-                      disabledParamsList?.includes(
-                        parameter.name.toLowerCase().replace(/ /g, "_"),
-                      ) || creatingWorkspace,
-                  };
-                }}
-              />
-              <ImmutableTemplateParametersSection
-                templateParameters={parameters}
-                classes={{
-                  root: css`
-                    border: 1px solid ${theme.palette.warning.light};
-                    border-radius: 8px;
-                    background-color: ${theme.palette.background.paper};
-                    padding: 80px;
-                    margin-left: -80px;
-                    margin-right: -80px;
-                  `,
-                }}
-                getInputProps={(parameter, index) => {
-                  return {
-                    ...getFieldHelpers(
-                      "rich_parameter_values[" + index + "].value",
-                    ),
-                    onChange: async (value) => {
-                      await form.setFieldValue(
-                        "rich_parameter_values." + index,
-                        {
+          {parameters.length > 0 && (
+            <FormSection
+              title="Parameters"
+              description="These are the settings used by your template. Please note that immutable parameters cannot be modified once the workspace is created."
+            >
+              {/*
+                Opted not to use FormFields in order to increase spacing.
+                This decision was made because rich parameter inputs are more visually dense than standard text fields.
+              */}
+              <div css={{ display: "flex", flexDirection: "column", gap: 36 }}>
+                {parameters.map((parameter, index) => {
+                  const parameterField = `rich_parameter_values.${index}`;
+                  const parameterInputName = `${parameterField}.value`;
+                  const isDisabled =
+                    disabledParamsList?.includes(
+                      parameter.name.toLowerCase().replace(/ /g, "_"),
+                    ) || creatingWorkspace;
+
+                  return (
+                    <RichParameterInput
+                      {...getFieldHelpers(parameterInputName)}
+                      onChange={async (value) => {
+                        await form.setFieldValue(parameterField, {
                           name: parameter.name,
-                          value: value,
-                        },
-                      );
-                    },
-                    disabled:
-                      disabledParamsList?.includes(
-                        parameter.name.toLowerCase().replace(/ /g, "_"),
-                      ) || creatingWorkspace,
-                  };
-                }}
-              />
-            </>
+                          value,
+                        });
+                      }}
+                      key={parameter.name}
+                      parameter={parameter}
+                      disabled={isDisabled}
+                    />
+                  );
+                })}
+              </div>
+            </FormSection>
           )}
 
           <FormFooter
diff --git a/site/src/pages/TemplatePage/TemplateEmbedPage/TemplateEmbedPage.tsx b/site/src/pages/TemplatePage/TemplateEmbedPage/TemplateEmbedPage.tsx
index d88aaa48b568c..7335d87dfdb05 100644
--- a/site/src/pages/TemplatePage/TemplateEmbedPage/TemplateEmbedPage.tsx
+++ b/site/src/pages/TemplatePage/TemplateEmbedPage/TemplateEmbedPage.tsx
@@ -10,17 +10,13 @@ import { Template, TemplateVersionParameter } from "api/typesGenerated";
 import { FormSection, VerticalForm } from "components/Form/Form";
 import { Loader } from "components/Loader/Loader";
 import { useTemplateLayoutContext } from "pages/TemplatePage/TemplateLayout";
-import {
-  ImmutableTemplateParametersSection,
-  MutableTemplateParametersSection,
-  TemplateParametersSectionProps,
-} from "components/TemplateParameters/TemplateParameters";
 import { useClipboard } from "hooks/useClipboard";
 import { type FC, useEffect, useState } from "react";
 import { Helmet } from "react-helmet-async";
 import { pageTitle } from "utils/page";
 import { getInitialRichParameterValues } from "utils/richParameters";
 import { paramsUsedToCreateWorkspace } from "utils/workspace";
+import { RichParameterInput } from "components/RichParameterInput/RichParameterInput";
 
 type ButtonValues = Record<string, string>;
 
@@ -64,22 +60,6 @@ export const TemplateEmbedPageView: FC<TemplateEmbedPageViewProps> = ({
   const buttonUrl = `${createWorkspaceUrl}?${createWorkspaceParams.toString()}`;
   const buttonMkdCode = `[![Open in Coder](${deploymentUrl}/open-in-coder.svg)](${buttonUrl})`;
   const clipboard = useClipboard(buttonMkdCode);
-  const getInputProps: TemplateParametersSectionProps["getInputProps"] = (
-    parameter,
-  ) => {
-    if (!buttonValues) {
-      throw new Error("buttonValues is undefined");
-    }
-    return {
-      value: buttonValues[`param.${parameter.name}`] ?? "",
-      onChange: (value) => {
-        setButtonValues((buttonValues) => ({
-          ...buttonValues,
-          [`param.${parameter.name}`]: value,
-        }));
-      },
-    };
-  };
 
   // template parameters is async so we need to initialize the values after it
   // is loaded
@@ -135,16 +115,28 @@ export const TemplateEmbedPageView: FC<TemplateEmbedPageViewProps> = ({
               </FormSection>
 
               {templateParameters.length > 0 && (
-                <>
-                  <MutableTemplateParametersSection
-                    templateParameters={templateParameters}
-                    getInputProps={getInputProps}
-                  />
-                  <ImmutableTemplateParametersSection
-                    templateParameters={templateParameters}
-                    getInputProps={getInputProps}
-                  />
-                </>
+                <div
+                  css={{ display: "flex", flexDirection: "column", gap: 36 }}
+                >
+                  {templateParameters.map((parameter) => {
+                    const parameterValue =
+                      buttonValues[`param.${parameter.name}`] ?? "";
+
+                    return (
+                      <RichParameterInput
+                        value={parameterValue}
+                        onChange={async (value) => {
+                          setButtonValues((buttonValues) => ({
+                            ...buttonValues,
+                            [`param.${parameter.name}`]: value,
+                          }));
+                        }}
+                        key={parameter.name}
+                        parameter={parameter}
+                      />
+                    );
+                  })}
+                </div>
               )}
             </VerticalForm>
           </div>
diff --git a/site/src/pages/WorkspaceSettingsPage/WorkspaceParametersPage/WorkspaceParametersForm.tsx b/site/src/pages/WorkspaceSettingsPage/WorkspaceParametersPage/WorkspaceParametersForm.tsx
index 12ea287acfb84..f5a03304b9eac 100644
--- a/site/src/pages/WorkspaceSettingsPage/WorkspaceParametersPage/WorkspaceParametersForm.tsx
+++ b/site/src/pages/WorkspaceSettingsPage/WorkspaceParametersPage/WorkspaceParametersForm.tsx
@@ -69,9 +69,6 @@ export const WorkspaceParametersForm: FC<WorkspaceParameterFormProps> = ({
   const hasNonEphemeralParameters = templateVersionRichParameters.some(
     (parameter) => !parameter.ephemeral,
   );
-  const hasImmutableParameters = templateVersionRichParameters.some(
-    (parameter) => !parameter.mutable,
-  );
 
   const disabled =
     workspace.outdated &&
@@ -97,12 +94,12 @@ export const WorkspaceParametersForm: FC<WorkspaceParameterFormProps> = ({
               {templateVersionRichParameters.map((parameter, index) =>
                 // Since we are adding the values to the form based on the index
                 // we can't filter them to not loose the right index position
-                parameter.mutable && !parameter.ephemeral ? (
+                !parameter.ephemeral ? (
                   <RichParameterInput
                     {...getFieldHelpers(
                       "rich_parameter_values[" + index + "].value",
                     )}
-                    disabled={isSubmitting || disabled}
+                    disabled={isSubmitting || disabled || !parameter.mutable}
                     key={parameter.name}
                     onChange={async (value) => {
                       await form.setFieldValue(
@@ -152,36 +149,7 @@ export const WorkspaceParametersForm: FC<WorkspaceParameterFormProps> = ({
             </FormFields>
           </FormSection>
         )}
-        {/* They are displayed here only for visibility purposes */}
-        {hasImmutableParameters && (
-          <FormSection
-            title="Immutable parameters"
-            description={
-              <>
-                These settings <strong>cannot be changed</strong> after creating
-                the workspace.
-              </>
-            }
-          >
-            <FormFields>
-              {templateVersionRichParameters.map((parameter, index) =>
-                !parameter.mutable ? (
-                  <RichParameterInput
-                    disabled
-                    {...getFieldHelpers(
-                      "rich_parameter_values[" + index + "].value",
-                    )}
-                    key={parameter.name}
-                    parameter={parameter}
-                    onChange={() => {
-                      throw new Error("Immutable parameters cannot be changed");
-                    }}
-                  />
-                ) : null,
-              )}
-            </FormFields>
-          </FormSection>
-        )}
+
         <FormFooter
           onCancel={onCancel}
           isLoading={isSubmitting}