diff --git a/Cargo.lock b/Cargo.lock
index 046e5991ba762..8412781c682e3 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -1566,9 +1566,9 @@ dependencies = [
 
 [[package]]
 name = "ed25519"
-version = "1.0.3"
+version = "1.5.2"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "37c66a534cbb46ab4ea03477eae19d5c22c01da8258030280b7bd9d8433fb6ef"
+checksum = "1e9c280362032ea4203659fc489832d0204ef09f247a0506f170dafcac08c369"
 dependencies = [
  "signature",
 ]
@@ -9181,6 +9181,7 @@ name = "sp-io"
 version = "7.0.0"
 dependencies = [
  "bytes",
+ "ed25519",
  "ed25519-dalek",
  "futures",
  "libsecp256k1",
diff --git a/primitives/io/Cargo.toml b/primitives/io/Cargo.toml
index 57dc3604de73f..d83c82c02227b 100644
--- a/primitives/io/Cargo.toml
+++ b/primitives/io/Cargo.toml
@@ -31,7 +31,11 @@ futures = { version = "0.3.21", features = ["thread-pool"], optional = true }
 secp256k1 = { version = "0.24.0", features = ["recovery", "global-context"], optional = true }
 tracing = { version = "0.1.29", default-features = false }
 tracing-core = { version = "0.1.28", default-features = false}
+
+# Required for backwards compatibility reason, but only used for verifying when `UseDalekExt` is set.
 ed25519-dalek = { version = "1.0.1", default-features = false, optional = true }
+# Force the usage of ed25519, this is being used in `ed25519-dalek`.
+ed25519 = { version = "1.5.2", optional = true }
 
 [features]
 default = ["std"]
@@ -53,6 +57,7 @@ std = [
 	"log",
 	"futures",
 	"ed25519-dalek",
+	"ed25519",
 ]
 
 with-tracing = [
diff --git a/primitives/io/src/lib.rs b/primitives/io/src/lib.rs
index 600d76b3b4300..bb06c00ee2c6f 100644
--- a/primitives/io/src/lib.rs
+++ b/primitives/io/src/lib.rs
@@ -783,13 +783,13 @@ pub trait Crypto {
 		{
 			use ed25519_dalek::Verifier;
 
-			let public_key = if let Ok(vk) = ed25519_dalek::PublicKey::from_bytes(&pub_key.0) {
-				vk
-			} else {
+			let Ok(public_key) = ed25519_dalek::PublicKey::from_bytes(&pub_key.0) else {
 				return false
 			};
 
-			let sig = ed25519_dalek::Signature::from(sig.0);
+			let Ok(sig) = ed25519_dalek::Signature::from_bytes(&sig.0) else {
+				return false
+			};
 
 			public_key.verify(msg, &sig).is_ok()
 		} else {
@@ -1946,4 +1946,22 @@ mod tests {
 			assert!(crypto::ed25519_verify(&zero_ed_sig(), &Vec::new(), &zero_ed_pub()));
 		})
 	}
+
+	#[test]
+	fn dalek_should_not_panic_on_invalid_signature() {
+		let mut ext = BasicExternalities::default();
+		ext.register_extension(UseDalekExt::default());
+
+		ext.execute_with(|| {
+			let mut bytes = [0u8; 64];
+			// Make it invalid
+			bytes[63] = 0b1110_0000;
+
+			assert!(!crypto::ed25519_verify(
+				&ed25519::Signature::from_raw(bytes),
+				&Vec::new(),
+				&zero_ed_pub()
+			));
+		});
+	}
 }