diff --git a/builders/container-apps-internal-registry-demo/Dockerfile b/builders/container-apps-internal-registry-demo/Dockerfile
index 25c019a2dc..1135ce721d 100644
--- a/builders/container-apps-internal-registry-demo/Dockerfile
+++ b/builders/container-apps-internal-registry-demo/Dockerfile
@@ -38,6 +38,7 @@ RUN set -eux; \
 		sudo \
 		curl \
 		unzip \
+		grep \
 	; \
 	rm -rf /var/lib/apt/lists/*
 
diff --git a/builders/container-apps-internal-registry-demo/startup-script.sh b/builders/container-apps-internal-registry-demo/startup-script.sh
index e2b68588c6..07aa7c74e2 100644
--- a/builders/container-apps-internal-registry-demo/startup-script.sh
+++ b/builders/container-apps-internal-registry-demo/startup-script.sh
@@ -11,6 +11,7 @@ file_upload_endpoint="$FILE_UPLOAD_CONTAINER_URL/$FILE_UPLOAD_BLOB_NAME"
 
 temp_app_source_dir="/tmp/appsource"
 temp_app_source_path="$temp_app_source_dir/$FILE_UPLOAD_BLOB_NAME"
+temp_app_header_path="$temp_app_source_dir/header.txt"
 mkdir $temp_app_source_dir
 
 # List all the environment variables and filter the environment variable with prefix "ACA_CLOUD_BUILD_USER_ENV_", then write them to folder "/platform/env", 
@@ -25,13 +26,24 @@ done
 
 # write environment variable CORRELATION_ID to folder "/platform/env", 
 if [ -n "$CORRELATION_ID" ]; then
-  echo "$CORRELATION_ID" > "$build_env_dir/CORRELATION_ID"
+  echo -n "$CORRELATION_ID" > "$build_env_dir/CORRELATION_ID"
 fi
 
+file_extension=""
 while [[ ! -f "$temp_app_source_path" || ! "$(file $temp_app_source_path)" =~ "compressed data" ]]
 do
   echo "Waiting for app source to be uploaded. Please upload the app source to the endpoint specified in the Build resource's 'uploadEndpoint' property."
-  curl -H "$auth_header" -H "$version_header" -H "$date_header" -X GET "$file_upload_endpoint" -o "$temp_app_source_path" -s
+  curl -H "$auth_header" -H "$version_header" -H "$date_header" -X GET "$file_upload_endpoint" -o "$temp_app_source_path" -D "$temp_app_header_path" -s
+  if [[ -f "$temp_app_header_path" ]]; then
+    file_extension=$(grep -i x-ms-meta-FileExtension "$temp_app_header_path" | cut -d ' ' -f2)
+    # Check if the original file extension is .jar, .war, .zip or .tar.gz
+    if [[ "$file_extension" =~ ".tar.gz" 
+          || "$file_extension" =~ ".jar" 
+          || "$file_extension" =~ ".war" 
+          || "$file_extension" =~ ".zip"  ]]; then
+      break
+    fi
+  fi
   sleep 5
 done
 
@@ -39,7 +51,15 @@ done
 echo "Found app source at '$temp_app_source_path'. Extracting to $CNB_APP_DIR"
 mkdir -p $CNB_APP_DIR
 cd $CNB_APP_DIR
-tar -xzf "$temp_app_source_path"
+
+if [[ "$file_extension" =~ ".jar" 
+      || "$file_extension" =~ ".war" 
+      || "$file_extension" =~ ".zip"  ]]; then
+  unzip -qq "$temp_app_source_path"
+else
+# Keep compatibility with old logic
+  tar -xzf "$temp_app_source_path"
+fi
 
 fileCount=$(ls | wc -l)
 if [ "$fileCount" = "1" ]; then