diff --git a/app/server/appsmith-server/pom.xml b/app/server/appsmith-server/pom.xml
index 1da66de8b5..c333097e52 100644
--- a/app/server/appsmith-server/pom.xml
+++ b/app/server/appsmith-server/pom.xml
@@ -238,6 +238,11 @@
             <scope>test</scope>
         </dependency>
 
+        <dependency>
+            <groupId>org.bouncycastle</groupId>
+            <artifactId>bcprov-jdk18on</artifactId>
+            <version>1.72</version>
+        </dependency>
         <!-- Only required to run junit5 test from IDE -->
         <dependency>
             <groupId>org.junit.platform</groupId>
diff --git a/app/server/appsmith-server/src/main/java/com/appsmith/server/constants/ApiConstants.java b/app/server/appsmith-server/src/main/java/com/appsmith/server/constants/ApiConstants.java
new file mode 100644
index 0000000000..12716eb0b3
--- /dev/null
+++ b/app/server/appsmith-server/src/main/java/com/appsmith/server/constants/ApiConstants.java
@@ -0,0 +1,6 @@
+package com.appsmith.server.constants;
+
+public class ApiConstants {
+    public static final String DATE = "Date";
+    public static final String CLOUD_SERVICES_SIGNATURE = "X-Appsmith-CS-Signature";
+}
diff --git a/app/server/appsmith-server/src/main/java/com/appsmith/server/helpers/SignatureVerifier.java b/app/server/appsmith-server/src/main/java/com/appsmith/server/helpers/SignatureVerifier.java
new file mode 100644
index 0000000000..b744a411b2
--- /dev/null
+++ b/app/server/appsmith-server/src/main/java/com/appsmith/server/helpers/SignatureVerifier.java
@@ -0,0 +1,95 @@
+package com.appsmith.server.helpers;
+
+import lombok.extern.slf4j.Slf4j;
+import org.apache.commons.collections.CollectionUtils;
+import org.bouncycastle.crypto.params.AsymmetricKeyParameter;
+import org.bouncycastle.crypto.signers.Ed25519Signer;
+import org.bouncycastle.crypto.util.OpenSSHPublicKeyUtil;
+import org.pf4j.util.StringUtils;
+import org.springframework.http.HttpHeaders;
+
+import java.nio.charset.StandardCharsets;
+import java.time.Instant;
+import java.time.temporal.ChronoUnit;
+import java.util.Base64;
+
+import static com.appsmith.server.constants.ApiConstants.CLOUD_SERVICES_SIGNATURE;
+import static com.appsmith.server.constants.ApiConstants.DATE;
+
+@Slf4j
+public class SignatureVerifier {
+
+    // Public key for verifying signatures with ED25519 scheme.
+    private static final String PUBLIC_VERIFICATION_KEY =
+            "AAAAC3NzaC1lZDI1NTE5AAAAICNwJ+zx2opXjjOga/YyzRxb2czvNgQ/twA+miCKDIX3";
+
+    private static final String TIMESTAMP = "timestamp";
+
+    private static final String EQUAL = "=";
+
+    private static final AsymmetricKeyParameter publicKeyParameters;
+
+    static {
+        publicKeyParameters =
+                OpenSSHPublicKeyUtil.parsePublicKey(Base64.getDecoder().decode(PUBLIC_VERIFICATION_KEY));
+    }
+
+    /**
+     * Method to verify the API signature from CS.
+     * @param headers   Response headers from CS
+     * @return          If the signature is valid
+     */
+    public static boolean isSignatureValid(HttpHeaders headers) {
+        if (CollectionUtils.isEmpty(headers.get(CLOUD_SERVICES_SIGNATURE))
+                || CollectionUtils.isEmpty(headers.get(DATE))) {
+            return false;
+        }
+        String signature = headers.get(CLOUD_SERVICES_SIGNATURE).get(0);
+        String date = headers.get(DATE).get(0);
+        if (StringUtils.isNullOrEmpty(signature) || StringUtils.isNullOrEmpty(date)) {
+            return false;
+        }
+        try {
+            if (publicKeyParameters == null) {
+                return false;
+            }
+            return isSignatureValid(signature, date);
+        } catch (Exception exception) {
+            log.debug("Error occurred while verifying CS signature.", exception);
+            return false;
+        }
+    }
+
+    private static boolean isSignatureValid(String signature, String dateHeader) {
+        String[] signatureParts = signature.split("\\.", 2);
+        if (signatureParts.length != 2) {
+            return false;
+        }
+        String signingData = signatureParts[0];
+        String encodedSignature = signatureParts[1];
+
+        // Decode base64 signature and signing data to byte arrays
+        byte[] signatureBytes = Base64.getUrlDecoder().decode(encodedSignature);
+        byte[] signingDataBytes = signingData.getBytes(StandardCharsets.UTF_8);
+
+        // Set up Ed25519 verifier
+        Ed25519Signer verifier = new Ed25519Signer();
+        verifier.init(false, publicKeyParameters);
+        verifier.update(signingDataBytes, 0, signingDataBytes.length);
+
+        // Verify the signature to check if the data is tampered
+        if (verifier.verifySignature(signatureBytes)) {
+            String decodedData = new String(Base64.getDecoder().decode(signingData));
+            // To avoid the replay attacks check if the date provided in the header is within 24hrs and matches with
+            // the date used while encoding the data.
+            // Data format for ref: String.format("data=%s_timestamp=%s", dataset.toString(), date)
+            String timestampFieldFormat = TIMESTAMP + EQUAL;
+            String date =
+                    decodedData.substring(decodedData.indexOf(timestampFieldFormat) + timestampFieldFormat.length());
+
+            return dateHeader.equals(date)
+                    && Instant.parse(date).isAfter(Instant.now().minus(24, ChronoUnit.HOURS));
+        }
+        return false;
+    }
+}
diff --git a/app/server/appsmith-server/src/test/java/com/appsmith/server/helpers/SignatureVerifierTest.java b/app/server/appsmith-server/src/test/java/com/appsmith/server/helpers/SignatureVerifierTest.java
new file mode 100644
index 0000000000..cebd31a8ee
--- /dev/null
+++ b/app/server/appsmith-server/src/test/java/com/appsmith/server/helpers/SignatureVerifierTest.java
@@ -0,0 +1,32 @@
+package com.appsmith.server.helpers;
+
+import org.junit.jupiter.api.Assertions;
+import org.junit.jupiter.api.Test;
+import org.springframework.http.HttpHeaders;
+
+import java.time.Instant;
+import java.util.UUID;
+
+import static com.appsmith.server.constants.ApiConstants.CLOUD_SERVICES_SIGNATURE;
+import static com.appsmith.server.constants.ApiConstants.DATE;
+
+class SignatureVerifierTest {
+
+    @Test
+    public void invalidSignature_verifySignatureFormat_returnFalse() {
+
+        HttpHeaders headers = new HttpHeaders();
+        headers.set(DATE, Instant.now().toString());
+        headers.set(CLOUD_SERVICES_SIGNATURE, "");
+        Assertions.assertFalse(SignatureVerifier.isSignatureValid(headers));
+    }
+
+    @Test
+    public void invalidSignature_verifySignature_returnFalse() {
+
+        HttpHeaders headers = new HttpHeaders();
+        headers.set(DATE, Instant.now().toString());
+        headers.set(CLOUD_SERVICES_SIGNATURE, UUID.randomUUID().toString());
+        Assertions.assertFalse(SignatureVerifier.isSignatureValid(headers));
+    }
+}