diff --git a/packages/Telephony/Actions/CallTransfer.cs b/packages/Telephony/Actions/CallTransfer.cs
index bca5c0661c..d89250c1f5 100644
--- a/packages/Telephony/Actions/CallTransfer.cs
+++ b/packages/Telephony/Actions/CallTransfer.cs
@@ -5,9 +5,9 @@
 using System.Threading;
 using System.Threading.Tasks;
 using AdaptiveExpressions.Properties;
-using Microsoft.Bot.Builder;
 using Microsoft.Bot.Builder.Dialogs;
 using Microsoft.Bot.Builder.Dialogs.Adaptive.Actions;
+using Microsoft.Bot.Connector;
 using Newtonsoft.Json;
 
 namespace Microsoft.Bot.Components.Telephony.Actions
@@ -55,12 +55,17 @@ public CallTransfer([CallerFilePath] string sourceFilePath = "", [CallerLineNumb
         /// <returns>A <see cref="Task"/> representing the asynchronous operation.</returns>
         public async override Task<DialogTurnResult> BeginDialogAsync(DialogContext dc, object options = null, CancellationToken cancellationToken = default(CancellationToken))
         {
-            var phoneNumber = this.PhoneNumber?.GetValue(dc.State);
+            if (dc.Context.Activity.ChannelId == Channels.Telephony)
+            {
+                var phoneNumber = this.PhoneNumber?.GetValue(dc.State);
 
-            // Create handoff event, passing the phone number to transfer to as context.
-            HandoffContext = new { TargetPhoneNumber = phoneNumber };
-            
-            return await base.BeginDialogAsync(dc, options, cancellationToken).ConfigureAwait(false);
+                // Create handoff event, passing the phone number to transfer to as context.
+                HandoffContext = new { TargetPhoneNumber = phoneNumber };
+
+                return await base.BeginDialogAsync(dc, options, cancellationToken).ConfigureAwait(false);
+            }
+
+            return await dc.EndDialogAsync(cancellationToken: cancellationToken).ConfigureAwait(false);
         }
     }
 }
\ No newline at end of file
diff --git a/packages/Telephony/Readme.md b/packages/Telephony/Readme.md
index 89d67ad6fe..2f193a46a5 100644
--- a/packages/Telephony/Readme.md
+++ b/packages/Telephony/Readme.md
@@ -13,19 +13,18 @@ Like any other channel, Telephony channel allows you to transfer call to an agen
 * PhoneNumber
 
 #### Usage
-* Phone Number is not empty and in the E.164 format. 
+* Phone Number should not be empty and should be in the E.164 format. 
 * The call transfer action is only valid when called in a conversation on the Telephony channel. The action can be considered a No-op for all other channels.
 
 #### Dialog Flow
-* Once the call transfer is completed, the bot is removed from the current conversation and control is transferred to the extenal phone nunber.
-* [Open] Do we get back a handoff status on success? Should we wait for the status in our package?
+* Once the call transfer is completed, the bot is removed from the current conversation and control is transferred to the external phone number.
+* The bot will not get any handoff status on success.
 * Any actions specified after call transfer will not be executed. Treat it like a call end.
 
 #### Failures
-* [Open] How should the package fail when Phone Number is Empty - should we throw an exception? How can we make sure that the exception message is localize properly?
-* [Open] When the phone number is not in a valid E.164 format, how does the call transfer fail?
-* [Open] Do we get back a handoff status on failure?
-
+* For all failure cases where the connection is not established, either due to Phone Number being empty, invalid, bogus or just connection failure, an asynchronous "handoff.status" event is sent with value "failed". More details [here](https://docs.microsoft.com/en-us/azure/bot-service/bot-service-design-pattern-handoff-human?view=azure-bot-service-4.0).
+* This can be handled either in code as per [this](https://github.com/microsoft/botframework-telephony/blob/main/TransferCallOut.md) or in Composer by adding a trigger -> Activities -> Event Received (Event Activity), with this condition, turn.activity.name == "handoff.status", following which @turn.activity.value can be used for handling the failure case.
+* In the failure case, subsequent actions will be executed.
 
 ## **Call Recording**
 The call recording commands enable bots to request that calls are recorded by the phone provider. The bot can control when to start, stop, pause and resume the recording with these commands. For more information about the call recording capabilities, see [Telephony Advanced Features - Call Recording](https://github.com/microsoft/botframework-telephony/blob/main/CallRecording.md).
diff --git a/packages/Telephony/Schemas/Microsoft.Telephony.CallTransfer.uischema b/packages/Telephony/Schemas/Microsoft.Telephony.CallTransfer.uischema
index a510ec23fa..2cc45aa58b 100644
--- a/packages/Telephony/Schemas/Microsoft.Telephony.CallTransfer.uischema
+++ b/packages/Telephony/Schemas/Microsoft.Telephony.CallTransfer.uischema
@@ -1,8 +1,8 @@
 {
   "$schema": "https://schemas.botframework.com/schemas/ui/v1.0/ui.schema",
   "form": {
-    "label": "Transfer a call",
-    "subtitle": "Call Transfer",
+    "label": "Call Transfer",
+    "subtitle": "Transfers call to the phone number specified (in E.164 format such as +1425123456)",
     "order": [
       "phoneNumber",
       "*"
@@ -16,7 +16,7 @@
     }
   },
   "menu": {
-    "label": "Transfer a call",
+    "label": "Call Transfer",
     "submenu": [ "Telephony" ]
   },
   "flow": {
diff --git a/tests/packages/Microsoft.Bot.Components.Telephony.Tests/CallTransferTests.cs b/tests/packages/Microsoft.Bot.Components.Telephony.Tests/CallTransferTests.cs
index 4dd5a18c4e..5893cadc09 100644
--- a/tests/packages/Microsoft.Bot.Components.Telephony.Tests/CallTransferTests.cs
+++ b/tests/packages/Microsoft.Bot.Components.Telephony.Tests/CallTransferTests.cs
@@ -21,5 +21,11 @@ public async Task CallTransfer_HappyPath()
         {
             await TestUtils.RunTestScript(_resourceExplorerFixture.ResourceExplorer, adapterChannel: Channels.Telephony);
         }
+        
+        [Fact]
+        public async Task CallTransfer_IgnoredInNonTelephonyChannel()
+        {
+            await TestUtils.RunTestScript(_resourceExplorerFixture.ResourceExplorer, adapterChannel: Channels.Msteams);
+        }
     }
 }
diff --git a/tests/packages/Microsoft.Bot.Components.Telephony.Tests/Integration/CallTransferTests/CallTransfer_BaseScenario.test.dialog b/tests/packages/Microsoft.Bot.Components.Telephony.Tests/Integration/CallTransferTests/CallTransfer_BaseScenario.test.dialog
index 1472a80cca..3ff4ede604 100644
--- a/tests/packages/Microsoft.Bot.Components.Telephony.Tests/Integration/CallTransferTests/CallTransfer_BaseScenario.test.dialog
+++ b/tests/packages/Microsoft.Bot.Components.Telephony.Tests/Integration/CallTransferTests/CallTransfer_BaseScenario.test.dialog
@@ -6,11 +6,15 @@
         {
             "$kind": "Microsoft.OnBeginDialog",
             "actions": [
-                {
-                    "$kind": "Microsoft.Telephony.CallTransfer",
-                    "phoneNumber": "+1555443443"
-                }
-            ]
+            {
+              "$kind": "Microsoft.Telephony.CallTransfer",
+              "phoneNumber": "+15554434432"
+            },
+            {
+              "$kind": "Microsoft.SendActivity",
+              "activity": "Transfer Initiated!"
+            }
+          ]
         }
     ]
 }
\ No newline at end of file
diff --git a/tests/packages/Microsoft.Bot.Components.Telephony.Tests/Integration/CallTransferTests/CallTransfer_HappyPath.test.dialog b/tests/packages/Microsoft.Bot.Components.Telephony.Tests/Integration/CallTransferTests/CallTransfer_HappyPath.test.dialog
index f97dc05f83..f052fd85f0 100644
--- a/tests/packages/Microsoft.Bot.Components.Telephony.Tests/Integration/CallTransferTests/CallTransfer_HappyPath.test.dialog
+++ b/tests/packages/Microsoft.Bot.Components.Telephony.Tests/Integration/CallTransferTests/CallTransfer_HappyPath.test.dialog
@@ -2,17 +2,22 @@
     "$schema": "../../../tests.schema",
     "$kind": "Microsoft.Test.Script",
     "dialog": "CallTransfer_BaseScenario.test",
-    "script": [
-        {
-            "$kind": "Microsoft.Test.UserSays",
-            "text": "Hello I'm Calculon"
-        },
-        {
-            "$kind": "Microsoft.Test.AssertReplyActivity",
-            "assertions": [
-                "type == 'event'",
-                "value.TargetPhoneNumber == '+1555443443'"
-            ]
-        }
-    ]
+  "script": [
+    {
+      "$kind": "Microsoft.Test.UserSays",
+      "text": "Hello I'm Calculon"
+    },
+    {
+      "$kind": "Microsoft.Test.AssertReplyActivity",
+      "assertions": [
+        "type == 'event'",
+        "value.TargetPhoneNumber == '+15554434432'"
+      ]
+    },
+    // Due to this being a mock, after actual call transfer this will not execute 
+    {
+      "$kind": "Microsoft.Test.AssertReply",
+      "text": "Transfer Initiated!"
+    }
+  ]
 }
\ No newline at end of file
diff --git a/tests/packages/Microsoft.Bot.Components.Telephony.Tests/Integration/CallTransferTests/CallTransfer_IgnoredInNonTelephonyChannel.test.dialog b/tests/packages/Microsoft.Bot.Components.Telephony.Tests/Integration/CallTransferTests/CallTransfer_IgnoredInNonTelephonyChannel.test.dialog
new file mode 100644
index 0000000000..49e8b15658
--- /dev/null
+++ b/tests/packages/Microsoft.Bot.Components.Telephony.Tests/Integration/CallTransferTests/CallTransfer_IgnoredInNonTelephonyChannel.test.dialog
@@ -0,0 +1,15 @@
+{
+  "$schema": "../../../tests.schema",
+  "$kind": "Microsoft.Test.Script",
+  "dialog": "CallTransfer_BaseScenario.test",
+  "script": [
+    {
+      "$kind": "Microsoft.Test.UserSays",
+      "text": "Hello I'm Calculon"
+    },
+    {
+      "$kind": "Microsoft.Test.AssertReply",
+      "text": "Transfer Initiated!"
+    }
+  ]
+}
\ No newline at end of file