diff --git a/openapi-cli/src/main/java/io/ballerina/openapi/cmd/Sanitize.java b/openapi-cli/src/main/java/io/ballerina/openapi/cmd/Sanitize.java
index a4c7dc412..70501b633 100644
--- a/openapi-cli/src/main/java/io/ballerina/openapi/cmd/Sanitize.java
+++ b/openapi-cli/src/main/java/io/ballerina/openapi/cmd/Sanitize.java
@@ -54,7 +54,7 @@ public String getDefaultFileName() {
     @Override
     public Optional<OpenAPI> generate(String openAPIFileContent) {
         Optional<OpenAPI> filteredOpenAPI = getFilteredOpenAPI(openAPIFileContent);
-        return filteredOpenAPI.flatMap(this::getFlattenOpenAPI).flatMap(this::sanitizeOpenAPI);
+        return filteredOpenAPI.flatMap(this::sanitizeOpenAPI);
     }
 
     private Optional<OpenAPI> sanitizeOpenAPI(OpenAPI openAPI) {
diff --git a/openapi-cli/src/main/resources/cli-help/ballerina-openapi-sanitize.help b/openapi-cli/src/main/resources/cli-help/ballerina-openapi-sanitize.help
index d2154a38a..cbd6607e6 100644
--- a/openapi-cli/src/main/resources/cli-help/ballerina-openapi-sanitize.help
+++ b/openapi-cli/src/main/resources/cli-help/ballerina-openapi-sanitize.help
@@ -12,10 +12,8 @@ SYNOPSIS
 
 DESCRIPTION
        Sanitize the OpenAPI contract file according to the best naming
-       practices of Ballerina. The OpenAPI contract is flatten and the type
-       schema names are made Ballerina friendly. The Ballerina name
-       extensions are added to the schemas which can not be modified
-       directly.
+       practices of Ballerina. The Ballerina name extensions are added
+       to the schemas which can not be modified directly.
 
 
 OPTIONS
diff --git a/openapi-cli/src/test/resources/cmd/sanitize/sanitized_openapi_composed_schema.json b/openapi-cli/src/test/resources/cmd/sanitize/sanitized_openapi_composed_schema.json
index 0f28589f5..205e5954c 100644
--- a/openapi-cli/src/test/resources/cmd/sanitize/sanitized_openapi_composed_schema.json
+++ b/openapi-cli/src/test/resources/cmd/sanitize/sanitized_openapi_composed_schema.json
@@ -1,116 +1,135 @@
 {
-  "openapi": "3.0.1",
-  "info": {
-    "title": "Api V1",
-    "version": "0.0.0"
+  "openapi" : "3.0.1",
+  "info" : {
+    "title" : "Api V1",
+    "version" : "0.0.0"
   },
-  "servers": [
-    {
-      "url": "http://{server}:{port}/api/v1",
-      "variables": {
-        "server": {
-          "default": "localhost"
-        },
-        "port": {
-          "default": "8080"
-        }
+  "servers" : [ {
+    "url" : "http://{server}:{port}/api/v1",
+    "variables" : {
+      "server" : {
+        "default" : "localhost"
+      },
+      "port" : {
+        "default" : "8080"
       }
     }
-  ],
-  "paths": {
-    "/albums": {
-      "get": {
-        "tags": [
-          "albums"
-        ],
-        "operationId": "getAlbums",
-        "parameters": [
-          {
-            "name": "_artists_",
-            "in": "query",
-            "required": false,
-            "style": "form",
-            "explode": true,
-            "schema": {
-              "type": "array",
-              "items": {
-                "type": "string"
-              },
-              "default": []
+  } ],
+  "paths" : {
+    "/albums" : {
+      "get" : {
+        "tags" : [ "albums" ],
+        "operationId" : "getAlbums",
+        "parameters" : [ {
+          "name" : "_artists_",
+          "in" : "query",
+          "required" : false,
+          "style" : "form",
+          "explode" : true,
+          "schema" : {
+            "type" : "array",
+            "items" : {
+              "type" : "string"
             },
-            "x-ballerina-name": "artists"
+            "default" : [ ]
           },
-          {
-            "name": "X-API-VERSION",
-            "in": "header",
-            "required": false,
-            "style": "simple",
-            "explode": false,
-            "schema": {
-              "type": "string",
-              "default": "v1"
-            },
-            "x-ballerina-name": "xAPIVERSION"
-          }
-        ],
-        "responses": {
-          "200": {
-            "description": "Ok",
-            "content": {
-              "application/json": {
-                "schema": {
-                  "type": "array",
-                  "items": {
-                    "$ref": "#/components/schemas/Album"
+          "x-ballerina-name" : "artists"
+        }, {
+          "name" : "X-API-VERSION",
+          "in" : "header",
+          "required" : false,
+          "style" : "simple",
+          "explode" : false,
+          "schema" : {
+            "type" : "string",
+            "default" : "v1"
+          },
+          "x-ballerina-name" : "xAPIVERSION"
+        } ],
+        "responses" : {
+          "200" : {
+            "description" : "Ok",
+            "content" : {
+              "application/json" : {
+                "schema" : {
+                  "type" : "array",
+                  "items" : {
+                    "$ref" : "#/components/schemas/Album"
                   }
                 }
               }
             }
           },
-          "400": {
-            "description": "BadRequest",
-            "content": {
-              "application/json": {
-                "schema": {
-                  "$ref": "#/components/schemas/ErrorPayload"
+          "400" : {
+            "description" : "BadRequest",
+            "content" : {
+              "application/json" : {
+                "schema" : {
+                  "$ref" : "#/components/schemas/ErrorPayload"
                 }
               }
             }
           }
         }
       },
-      "post": {
-        "tags": [
-          "albums"
-        ],
-        "operationId": "postAlbum",
-        "requestBody": {
-          "content": {
-            "application/json": {
-              "schema": {
-                "$ref": "#/components/schemas/AlbumsBody"
+      "post" : {
+        "tags" : [ "albums" ],
+        "operationId" : "postAlbum",
+        "requestBody" : {
+          "content" : {
+            "application/json" : {
+              "schema" : {
+                "oneOf" : [ {
+                  "required" : [ "_id", "artist", "title" ],
+                  "type" : "object",
+                  "properties" : {
+                    "artist" : {
+                      "type" : "string"
+                    },
+                    "_id" : {
+                      "type" : "string",
+                      "x-ballerina-name" : "id"
+                    },
+                    "title" : {
+                      "type" : "string"
+                    }
+                  },
+                  "additionalProperties" : false
+                }, {
+                  "required" : [ "artist", "title" ],
+                  "type" : "object",
+                  "properties" : {
+                    "artist" : {
+                      "type" : "string"
+                    },
+                    "title" : {
+                      "type" : "string"
+                    }
+                  },
+                  "additionalProperties" : false
+                } ]
               }
             }
           },
-          "required": true
+          "required" : true
         },
-        "responses": {
-          "201": {
-            "description": "Created",
-            "content": {
-              "application/json": {
-                "schema": {
-                  "$ref": "#/components/schemas/Album"
+        "responses" : {
+          "201" : {
+            "description" : "Created",
+            "content" : {
+              "application/json" : {
+                "schema" : {
+                  "$ref" : "#/components/schemas/Album"
                 }
               }
             }
           },
-          "400": {
-            "description": "BadRequest",
-            "content": {
-              "application/json": {
-                "schema": {
-                  "$ref": "#/components/schemas/ErrorPayload"
+          "400" : {
+            "description" : "BadRequest",
+            "content" : {
+              "application/json" : {
+                "schema" : {
+                  "$ref" : "#/components/schemas/ErrorPayload"
                 }
               }
             }
@@ -118,51 +137,47 @@
         }
       }
     },
-    "/albums/{id}": {
-      "get": {
-        "tags": [
-          "albums"
-        ],
-        "operationId": "getAlbumById",
-        "parameters": [
-          {
-            "name": "id",
-            "in": "path",
-            "required": true,
-            "style": "simple",
-            "explode": false,
-            "schema": {
-              "type": "string"
-            }
+    "/albums/{id}" : {
+      "get" : {
+        "tags" : [ "albums" ],
+        "operationId" : "getAlbumById",
+        "parameters" : [ {
+          "name" : "id",
+          "in" : "path",
+          "required" : true,
+          "style" : "simple",
+          "explode" : false,
+          "schema" : {
+            "type" : "string"
           }
-        ],
-        "responses": {
-          "200": {
-            "description": "Ok",
-            "content": {
-              "application/json": {
-                "schema": {
-                  "$ref": "#/components/schemas/Album"
+        } ],
+        "responses" : {
+          "200" : {
+            "description" : "Ok",
+            "content" : {
+              "application/json" : {
+                "schema" : {
+                  "$ref" : "#/components/schemas/Album"
                 }
               }
             }
           },
-          "400": {
-            "description": "BadRequest",
-            "content": {
-              "application/json": {
-                "schema": {
-                  "$ref": "#/components/schemas/ErrorPayload"
+          "400" : {
+            "description" : "BadRequest",
+            "content" : {
+              "application/json" : {
+                "schema" : {
+                  "$ref" : "#/components/schemas/ErrorPayload"
                 }
               }
             }
           },
-          "404": {
-            "description": "NotFound",
-            "content": {
-              "application/json": {
-                "schema": {
-                  "$ref": "#/components/schemas/Message"
+          "404" : {
+            "description" : "NotFound",
+            "content" : {
+              "application/json" : {
+                "schema" : {
+                  "$ref" : "#/components/schemas/Message"
                 }
               }
             }
@@ -170,41 +185,53 @@
         }
       }
     },
-    "/albums/{id}/artist": {
-      "get": {
-        "tags": [
-          "artists"
-        ],
-        "operationId": "getArtistByAlbum",
-        "parameters": [
-          {
-            "name": "id",
-            "in": "path",
-            "required": true,
-            "style": "simple",
-            "explode": false,
-            "schema": {
-              "type": "string"
-            }
+    "/albums/{id}/artist" : {
+      "get" : {
+        "tags" : [ "artists" ],
+        "operationId" : "getArtistByAlbum",
+        "parameters" : [ {
+          "name" : "id",
+          "in" : "path",
+          "required" : true,
+          "style" : "simple",
+          "explode" : false,
+          "schema" : {
+            "type" : "string"
           }
-        ],
-        "responses": {
-          "200": {
-            "description": "Ok",
-            "content": {
-              "application/json": {
-                "schema": {
-                  "$ref": "#/components/schemas/InlineResponse200"
+        } ],
+        "responses" : {
+          "200" : {
+            "description" : "Ok",
+            "content" : {
+              "application/json" : {
+                "schema" : {
+                  "required" : [ "albums", "id", "name" ],
+                  "type" : "object",
+                  "properties" : {
+                    "albums" : {
+                      "type" : "array",
+                      "items" : {
+                        "$ref" : "#/components/schemas/Album"
+                      }
+                    },
+                    "name" : {
+                      "type" : "string"
+                    },
+                    "id" : {
+                      "type" : "string"
+                    }
+                  },
+                  "additionalProperties" : false
                 }
               }
             }
           },
-          "400": {
-            "description": "BadRequest",
-            "content": {
-              "application/json": {
-                "schema": {
-                  "$ref": "#/components/schemas/ErrorPayload"
+          "400" : {
+            "description" : "BadRequest",
+            "content" : {
+              "application/json" : {
+                "schema" : {
+                  "$ref" : "#/components/schemas/ErrorPayload"
                 }
               }
             }
@@ -213,147 +240,63 @@
       }
     }
   },
-  "components": {
-    "schemas": {
-      "ErrorPayload": {
-        "required": [
-          "message",
-          "method",
-          "path",
-          "reason",
-          "status",
-          "timestamp"
-        ],
-        "type": "object",
-        "properties": {
-          "reason": {
-            "type": "string"
+  "components" : {
+    "schemas" : {
+      "ErrorPayload" : {
+        "required" : [ "message", "method", "path", "reason", "status", "timestamp" ],
+        "type" : "object",
+        "properties" : {
+          "reason" : {
+            "type" : "string"
           },
-          "path": {
-            "type": "string"
+          "path" : {
+            "type" : "string"
           },
-          "method": {
-            "type": "string"
+          "method" : {
+            "type" : "string"
           },
-          "message": {
-            "type": "string"
+          "message" : {
+            "type" : "string"
           },
-          "timestamp": {
-            "type": "string"
+          "timestamp" : {
+            "type" : "string"
           },
-          "status": {
-            "type": "integer",
-            "format": "int64"
+          "status" : {
+            "type" : "integer",
+            "format" : "int64"
           }
         }
       },
-      "AlbumsBody": {
-        "oneOf": [
-          {
-            "$ref": "#/components/schemas/AlbumsOneOf1"
-          },
-          {
-            "$ref": "#/components/schemas/AlbumsalbumsOneOf12"
-          }
-        ]
-      },
-      "Message": {
-        "required": [
-          "code",
-          "message"
-        ],
-        "type": "object",
-        "properties": {
-          "code": {
-            "type": "integer",
-            "format": "int64"
-          },
-          "message": {
-            "type": "string"
-          }
-        },
-        "additionalProperties": false
-      },
-      "AlbumsalbumsOneOf12": {
-        "required": [
-          "artist",
-          "title"
-        ],
-        "type": "object",
-        "properties": {
-          "artist": {
-            "type": "string"
-          },
-          "title": {
-            "type": "string"
-          }
-        },
-        "additionalProperties": false
-      },
-      "Album": {
-        "required": [
-          "_id",
-          "artist",
-          "title"
-        ],
-        "type": "object",
-        "properties": {
-          "artist": {
-            "type": "string"
-          },
-          "_id": {
-            "type": "string",
-            "x-ballerina-name": "id"
-          },
-          "title": {
-            "type": "string"
-          }
-        },
-        "additionalProperties": false
-      },
-      "InlineResponse200": {
-        "required": [
-          "albums",
-          "id",
-          "name"
-        ],
-        "type": "object",
-        "properties": {
-          "albums": {
-            "type": "array",
-            "items": {
-              "$ref": "#/components/schemas/Album"
-            }
-          },
-          "name": {
-            "type": "string"
+      "Message" : {
+        "required" : [ "code", "message" ],
+        "type" : "object",
+        "properties" : {
+          "code" : {
+            "type" : "integer",
+            "format" : "int64"
           },
-          "id": {
-            "type": "string"
+          "message" : {
+            "type" : "string"
           }
         },
-        "additionalProperties": false
+        "additionalProperties" : false
       },
-      "AlbumsOneOf1": {
-        "required": [
-          "_id",
-          "artist",
-          "title"
-        ],
-        "type": "object",
-        "properties": {
-          "artist": {
-            "type": "string"
+      "Album" : {
+        "required" : [ "_id", "artist", "title" ],
+        "type" : "object",
+        "properties" : {
+          "artist" : {
+            "type" : "string"
           },
-          "_id": {
-            "type": "string",
-            "x-ballerina-name": "id"
+          "_id" : {
+            "type" : "string",
+            "x-ballerina-name" : "id"
           },
-          "title": {
-            "type": "string"
+          "title" : {
+            "type" : "string"
           }
         },
-        "additionalProperties": false
+        "additionalProperties" : false
       }
     }
   }
diff --git a/openapi-core/src/main/java/io/ballerina/openapi/core/generators/common/OASModifier.java b/openapi-core/src/main/java/io/ballerina/openapi/core/generators/common/OASModifier.java
index cfb8cf831..677686bcb 100644
--- a/openapi-core/src/main/java/io/ballerina/openapi/core/generators/common/OASModifier.java
+++ b/openapi-core/src/main/java/io/ballerina/openapi/core/generators/common/OASModifier.java
@@ -32,6 +32,7 @@
 import io.swagger.v3.oas.models.media.ObjectSchema;
 import io.swagger.v3.oas.models.media.Schema;
 import io.swagger.v3.oas.models.parameters.Parameter;
+import io.swagger.v3.oas.models.responses.ApiResponse;
 import io.swagger.v3.parser.core.models.ParseOptions;
 import io.swagger.v3.parser.core.models.SwaggerParseResult;
 
@@ -114,9 +115,111 @@ public OpenAPI modifyWithBallerinaConventions(OpenAPI openapi, Map<String, Strin
         openapi = modifyOASWithSchemaName(openapi, nameMap);
         modifyOASWithParameterName(openapi);
         modifyOASWithObjectPropertyName(openapi);
+        modifyOASWithInlineObjectPropertyName(openapi);
         return openapi;
     }
 
+    private void modifyOASWithInlineObjectPropertyName(OpenAPI openAPI) {
+        openAPI.getPaths().forEach((path, pathItem) -> processPathItem(pathItem));
+    }
+
+    private void processPathItem(PathItem pathItem) {
+        pathItem.readOperationsMap().forEach((method, operation) -> processOperationWithInlineObjectSchema(operation));
+    }
+
+    private void processOperationWithInlineObjectSchema(Operation operation) {
+        if (Objects.nonNull(operation.getRequestBody())) {
+            updateInlineObjectInContent(operation.getRequestBody().getContent());
+        }
+        processParametersWithInlineObjectSchema(operation.getParameters());
+        processResponsesWithInlineObjectSchema(operation.getResponses());
+    }
+
+    private void processParametersWithInlineObjectSchema(List<Parameter> parameters) {
+        if (Objects.isNull(parameters)) {
+            return;
+        }
+
+        for (Parameter parameter : parameters) {
+            if (Objects.nonNull(parameter.getSchema())) {
+                updateInlineObjectSchema(parameter.getSchema());
+            }
+        }
+    }
+
+    private void processResponsesWithInlineObjectSchema(Map<String, ApiResponse> responses) {
+        responses.forEach((status, response) -> {
+            if (Objects.nonNull(response.getContent())) {
+                updateInlineObjectInContent(response.getContent());
+            }
+        });
+    }
+
+    private void updateInlineObjectSchema(Schema<?> schema) {
+        if (Objects.isNull(schema)) {
+            return;
+        }
+        handleInlineObjectSchemaInComposedSchema(schema);
+        handleInlineObjectSchema(schema);
+        handleInlineObjectSchemaItems(schema);
+        handleInlineObjectSchemaInAdditionalProperties(schema);
+        handleInlineObjectSchemaProperties(schema);
+    }
+
+    private void handleInlineObjectSchemaInComposedSchema(Schema<?> schema) {
+        if (schema instanceof ComposedSchema composedSchema) {
+            processSubSchemas(composedSchema.getAllOf());
+            processSubSchemas(composedSchema.getAnyOf());
+            processSubSchemas(composedSchema.getOneOf());
+        }
+    }
+
+    private void processSubSchemas(List<Schema> subSchemas) {
+        if (Objects.nonNull(subSchemas)) {
+            subSchemas.forEach(this::updateInlineObjectSchema);
+        }
+    }
+
+    private static void handleInlineObjectSchema(Schema<?> schema) {
+        if (isInlineObjectSchema(schema)) {
+            Map<String, Schema> properties = schema.getProperties();
+            if (Objects.nonNull(properties) && !properties.isEmpty()) {
+                schema.setProperties(getPropertiesWithBallerinaNameExtension(properties));
+            }
+        }
+    }
+
+    private static boolean isInlineObjectSchema(Schema<?> schema) {
+        return schema instanceof ObjectSchema ||
+                (Objects.isNull(schema.getType()) && Objects.isNull(schema.get$ref()) &&
+                        Objects.nonNull(schema.getProperties()));
+    }
+
+    private void handleInlineObjectSchemaItems(Schema<?> schema) {
+        if (Objects.nonNull(schema.getItems())) {
+            updateInlineObjectSchema(schema.getItems());
+        }
+    }
+
+    private void handleInlineObjectSchemaInAdditionalProperties(Schema<?> schema) {
+        if (schema.getAdditionalProperties() instanceof Schema) {
+            updateInlineObjectSchema((Schema) schema.getAdditionalProperties());
+        }
+    }
+
+    private void handleInlineObjectSchemaProperties(Schema<?> schema) {
+        if (Objects.nonNull(schema.getProperties())) {
+            schema.getProperties().values().forEach(this::updateInlineObjectSchema);
+        }
+    }
+
+    private void updateInlineObjectInContent(Map<String, io.swagger.v3.oas.models.media.MediaType> content) {
+        for (Map.Entry<String, io.swagger.v3.oas.models.media.MediaType> entry : content.entrySet()) {
+            Schema schema = entry.getValue().getSchema();
+            updateInlineObjectSchema(schema);
+        }
+    }
+
     private static void modifyOASWithObjectPropertyName(OpenAPI openapi) {
         Components components = openapi.getComponents();
         if (Objects.isNull(components) || Objects.isNull(components.getSchemas())) {
@@ -338,7 +441,7 @@ private static Schema getSchemaWithBallerinaNameExtension(String propertyName, S
         }
 
         if (Objects.nonNull(propertySchema.get$ref())) {
-            Schema refSchema = new Schema<>();
+            Schema<Object> refSchema = new Schema<>();
             refSchema.set$ref(propertySchema.get$ref());
             propertySchema.set$ref(null);
             propertySchema.addAllOfItem(refSchema);