diff --git a/app/client/src/widgets/wds/WDSRadioGroupWidget/widget/config/propertyPaneConfig/validations/defaultOptionValidation.ts b/app/client/src/widgets/wds/WDSRadioGroupWidget/widget/config/propertyPaneConfig/validations/defaultOptionValidation.ts
index 542e1b4f28..e7640d8491 100644
--- a/app/client/src/widgets/wds/WDSRadioGroupWidget/widget/config/propertyPaneConfig/validations/defaultOptionValidation.ts
+++ b/app/client/src/widgets/wds/WDSRadioGroupWidget/widget/config/propertyPaneConfig/validations/defaultOptionValidation.ts
@@ -5,6 +5,8 @@ export function defaultOptionValidation(
   props: any,
   _: any,
 ): ValidationResponse {
+  let { options } = props;
+
   //Checks if the value is not of object type in {{}}
   if (_.isObject(value)) {
     return {
@@ -33,6 +35,36 @@ export function defaultOptionValidation(
     };
   }
 
+  if (!Array.isArray(options) && typeof options === "string") {
+    try {
+      const parsedOptions = JSON.parse(options);
+
+      if (Array.isArray(parsedOptions)) {
+        options = parsedOptions;
+      } else {
+        options = [];
+      }
+    } catch (e) {
+      options = [];
+    }
+  }
+
+  // @ts-expect-error type mismatch
+  const valueIndex = _.findIndex(options, (option) => option.value === value);
+
+  if (valueIndex === -1) {
+    return {
+      isValid: false,
+      parsed: value,
+      messages: [
+        {
+          name: "ValidationError",
+          message: `Default value is missing in options. Please update the value.`,
+        },
+      ],
+    };
+  }
+
   return {
     isValid: true,
     parsed: value,