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I am setting a sales order to email template in script, and I am sending email to one of the contact of the customer(company). This does not fill in , its blank, the reason I am assuming this is due to entity on SO is company type so there is no field like firstname on this. Works well, but when I do same with UI and select a contact is fills in contact name.

I want to fill in contact name with script

If you're merging the Sales Order to the template, then `entity` is going to be the Customer, not the Contact

You'll need something like `entity.contact` or `entity.primarycontact` in your template