diff --git a/app/client/cypress/e2e/Regression/ClientSide/Widgets/Switch/SwitchGroup1_spec.ts b/app/client/cypress/e2e/Regression/ClientSide/Widgets/Switch/SwitchGroup1_spec.ts
index 8905e7ed4d..2e965258b0 100644
--- a/app/client/cypress/e2e/Regression/ClientSide/Widgets/Switch/SwitchGroup1_spec.ts
+++ b/app/client/cypress/e2e/Regression/ClientSide/Widgets/Switch/SwitchGroup1_spec.ts
@@ -217,7 +217,7 @@ describe(
       agHelper.TypeText(widgetsLoc.RadioInput, "{{BLUE}}", 1);
       propPane.ToggleJSMode("Options", true);
       agHelper.AssertElementAbsence(locators._toastMsg);
-      agHelper.GetNAssertElementText(widgets.textWidget, "RED");
+      agHelper.GetNAssertElementText(widgets.textWidget, "");
     });
 
     it("4. Set Label, Tooltip, Inline and check switch group", () => {
@@ -278,7 +278,7 @@ describe(
         0,
         true,
       );
-      agHelper.AssertElementVisibility(locators._visibleTextSpan("RED"));
+      agHelper.AssertElementVisibility(locators._visibleTextSpan("BLUE"));
     });
   },
 );
diff --git a/app/client/src/widgets/CheckboxGroupWidget/widget/index.test.tsx b/app/client/src/widgets/CheckboxGroupWidget/widget/index.test.tsx
index add2c666c8..0fe974b07c 100644
--- a/app/client/src/widgets/CheckboxGroupWidget/widget/index.test.tsx
+++ b/app/client/src/widgets/CheckboxGroupWidget/widget/index.test.tsx
@@ -61,4 +61,21 @@ describe("<CheckboxGroup />", () => {
 
     expect(result).toStrictEqual({ isValid: true, parsed: ["blue"] });
   });
+
+  test("should return empty array when default value is not in options", async () => {
+    const result = defaultSelectedValuesValidation(`["blue"]`, {
+      options: [
+        {
+          label: "Apple",
+          value: "1",
+        },
+        {
+          label: "Orange",
+          value: "2",
+        },
+      ],
+    });
+
+    expect(result).toStrictEqual({ isValid: true, parsed: [] });
+  });
 });
diff --git a/app/client/src/widgets/CheckboxGroupWidget/widget/index.tsx b/app/client/src/widgets/CheckboxGroupWidget/widget/index.tsx
index 7a882633f4..fe4090a208 100644
--- a/app/client/src/widgets/CheckboxGroupWidget/widget/index.tsx
+++ b/app/client/src/widgets/CheckboxGroupWidget/widget/index.tsx
@@ -35,12 +35,18 @@ import { FlexVerticalAlignment } from "layoutSystems/common/utils/constants";
 
 export function defaultSelectedValuesValidation(
   value: unknown,
+  props: any,
 ): ValidationResponse {
   let values: string[] = [];
+  const options: OptionProps[] = props.options || [];
 
   if (typeof value === "string") {
     try {
       values = JSON.parse(value);
+      values = values.filter((value: string) =>
+        options.some((option: OptionProps) => option.value === value),
+      );
+
       if (!Array.isArray(values)) {
         throw new Error();
       }
@@ -154,6 +160,12 @@ class CheckboxGroupWidget extends BaseWidget<
     };
   }
 
+  static getDependencyMap(): Record<string, string[]> {
+    return {
+      defaultSelectedValues: ["options"],
+    };
+  }
+
   static getAutocompleteDefinitions(): AutocompletionDefinitions {
     return {
       "!doc":
@@ -614,6 +626,17 @@ class CheckboxGroupWidget extends BaseWidget<
   }
 
   componentDidUpdate(prevProps: CheckboxGroupWidgetProps) {
+    const validSelectedValues = prevProps.selectedValues.filter(
+      (value: string) =>
+        prevProps.options.some((option) => option.value === value),
+    );
+    if (validSelectedValues.length !== prevProps.selectedValues.length) {
+      this.props.updateWidgetMetaProperty(
+        "selectedValues",
+        validSelectedValues,
+      );
+    }
+
     // Reset isDirty to false whenever defaultSelectedValues changes
     if (
       xor(this.props.defaultSelectedValues, prevProps.defaultSelectedValues)