diff --git a/app/server/appsmith-server/src/main/java/com/appsmith/server/services/BaseService.java b/app/server/appsmith-server/src/main/java/com/appsmith/server/services/BaseService.java
index 8e584bccc2..7715ba1e97 100644
--- a/app/server/appsmith-server/src/main/java/com/appsmith/server/services/BaseService.java
+++ b/app/server/appsmith-server/src/main/java/com/appsmith/server/services/BaseService.java
@@ -23,6 +23,7 @@ import reactor.core.scheduler.Scheduler;
 
 import javax.validation.Validator;
 import java.io.Serializable;
+import java.time.Instant;
 import java.util.ArrayList;
 import java.util.HashSet;
 import java.util.Iterator;
@@ -82,6 +83,8 @@ public abstract class BaseService<R extends BaseRepository<T, ID> & AppsmithRepo
             resource.setPolicies(null);
         }
 
+        resource.setUpdatedAt(Instant.now());
+
         DBObject update = getDbObject(resource);
 
         Update updateObj = new Update();
diff --git a/app/server/appsmith-server/src/test/java/com/appsmith/server/services/ActionCollectionServiceTest.java b/app/server/appsmith-server/src/test/java/com/appsmith/server/services/ActionCollectionServiceTest.java
index 059a4cc2cd..35e5e31330 100644
--- a/app/server/appsmith-server/src/test/java/com/appsmith/server/services/ActionCollectionServiceTest.java
+++ b/app/server/appsmith-server/src/test/java/com/appsmith/server/services/ActionCollectionServiceTest.java
@@ -521,4 +521,42 @@ public class ActionCollectionServiceTest {
                 .verifyComplete();
 
     }
+
+    /**
+     * For a given collection testActionCollection,
+     * When the collection is updated after creation,
+     * The updatedAt field should have a greater value than the updatedAt value when it was created.
+     */
+    @Test
+    @WithUserDetails(value = "api_user")
+    public void testUpdateActionCollection_verifyUpdatedAtFieldUpdated() {
+        ActionCollectionDTO actionCollectionDTO = new ActionCollectionDTO();
+        actionCollectionDTO.setName("testActionCollection");
+        actionCollectionDTO.setApplicationId(testApp.getId());
+        actionCollectionDTO.setOrganizationId(testApp.getOrganizationId());
+        actionCollectionDTO.setPageId(testPage.getId());
+        actionCollectionDTO.setPluginId(datasource.getPluginId());
+        actionCollectionDTO.setPluginType(PluginType.JS);
+
+        ActionCollection createdActionCollection = layoutCollectionService.createCollection(actionCollectionDTO)
+                .flatMap(createdCollection -> {
+                    // Delay after creating(before updating) record to get different updatedAt time
+                    try {
+                        Thread.sleep(5000);
+                    } catch (InterruptedException e) {
+                        e.printStackTrace();
+                    }
+                    return actionCollectionService.findById(createdCollection.getId(), READ_ACTIONS);
+                }).block();
+
+
+        Mono<ActionCollection> updatedActionCollectionMono = layoutCollectionService.updateUnpublishedActionCollection(createdActionCollection.getId(), actionCollectionDTO, null)
+                .flatMap(createdCollection -> actionCollectionService.findById(createdCollection.getId(), READ_ACTIONS));
+
+        StepVerifier.create(updatedActionCollectionMono)
+                .assertNext(updatedActionCollection -> {
+                    assertThat(updatedActionCollection.getUpdatedAt().isAfter(createdActionCollection.getUpdatedAt())).isTrue();
+                })
+                .verifyComplete();
+    }
 }