We do have custom components in the retool app and I wanted to confirm if we embed url will display the custom component as well in the website i am trying to embed app in
We do support custom components within Embedded apps, and most should work without any adjustments. However, your custom component will need to be resilient to being run inside of a doubly nested iframe (the embedded app is run inside of an iframe, and the custom component within that is run within a second iframe).
That's assuming you are using the v1 version, and not the new v2 version of custom components that is currently in beta. For v2 we don't support embedded apps yet.