diff --git a/backend/config/__init__.py b/backend/config/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/backend/config/utils.py b/backend/config/utils.py
new file mode 100644
index 0000000..f2aec09
--- /dev/null
+++ b/backend/config/utils.py
@@ -0,0 +1,18 @@
+import openai
+
+def is_valid_api_key(openai_api_key: str):
+    openai.api_key = openai_api_key
+    try:
+        openai.ChatCompletion.create(
+            model="gpt-3.5-turbo",
+            messages=[
+                {"role": "system", "content": "You are a helpful assistant."}
+            ]
+        )
+        return { 'validApiKey': True }
+    except Exception as e:
+        return {
+            'validApiKey': False,
+            'message': e.error.message
+        }
+    
\ No newline at end of file
diff --git a/backend/main.py b/backend/main.py
index 229a67a..c100f0c 100644
--- a/backend/main.py
+++ b/backend/main.py
@@ -9,6 +9,7 @@
 from schemas.question import Question, Document
 from schemas.file import UploadRequestBody
 from schemas.prompt import Prompt
+from config import utils
 from utils import FILE_HANDLERS
 from embeddings.index_files import Genie
 from loaders.website_loader import extract_text_from_website
@@ -67,6 +68,9 @@ async def capture_posthog():
 
     return response
 
+@app.post("/config/validate-api-key/")
+def validate_api_key(config: Config):
+    return utils.is_valid_api_key(config.apiKey)
 
 @app.get("/config/")
 def get_config():
@@ -75,7 +79,6 @@ def get_config():
         return False
     return True
 
-
 @app.post("/config/")
 def add_config(config: Config):
     db = Database().get_session()
diff --git a/frontend/src/renderer/components/ErrorNotification.tsx b/frontend/src/renderer/components/ErrorNotification.tsx
index f6fa026..06df600 100644
--- a/frontend/src/renderer/components/ErrorNotification.tsx
+++ b/frontend/src/renderer/components/ErrorNotification.tsx
@@ -1,9 +1,9 @@
 import { notifications } from '@mantine/notifications';
 
-export function ErrorNotification(endpoint, method) {
+export function ErrorNotification(endpoint, method, customMsg=null, title="Error!") {
     notifications.show({
-        title: "Error!",
-        message: "An error occurred with the " + method + " request to endpoint " + endpoint,
+        title: title,
+        message: customMsg || "An error occurred with the " + method + " request to endpoint " + endpoint,
         color: 'red',
         autoClose: false,
       });
diff --git a/frontend/src/renderer/pages/config/Config.tsx b/frontend/src/renderer/pages/config/Config.tsx
index b9774a0..d76b011 100644
--- a/frontend/src/renderer/pages/config/Config.tsx
+++ b/frontend/src/renderer/pages/config/Config.tsx
@@ -10,7 +10,7 @@ import {connect, disconnect} from '../../store/slices/externalDbSlice';
 import {apiCall} from "../../utils/api";
 import {useState} from "react";
 import PromptConfiguration from "./PromptConfig";
-
+import { ErrorNotification } from "../../../renderer/components/ErrorNotification";
 
 function saveConfig(OPENAI_API_KEY: string, model: string, embeddingsmodel: string) {
     const payload = {
@@ -18,6 +18,35 @@ function saveConfig(OPENAI_API_KEY: string, model: string, embeddingsmodel: stri
         model: model,
         embeddingsModel: embeddingsmodel
     };
+
+    // validate api key before saving config
+    return apiCall('/config/validate-api-key', 'POST', payload).then((response) => {
+        if (response?.data.validApiKey === false) return ErrorNotification('/config/validate-api-key', 'POST', response?.data.message, 'Invalid OpenAI API Key');
+
+        apiCall('/config', 'POST', payload).then((response) => {
+            const fetchedConfig = response.data;
+            console.log(fetchedConfig);
+
+            if (Object.keys(fetchedConfig).length === 0) {
+                return false;
+            }
+
+            // The fetched config is not an empty object, save it and return true
+            localStorage.setItem('config', JSON.stringify(fetchedConfig));
+            console.log(fetchedConfig);
+            window.location.reload();
+
+            return true;
+        })
+        .catch((error) => {
+                console.log('Error fetching config:', error);
+                return false;
+            }
+        );
+    }).catch((error) => {
+        console.log('error:', error)
+        return false;
+    });
 //     return axios.post(`${config.REACT_APP_BACKEND_URL}/config`, payload)
 //         .then((response) => {
 //             const fetchedConfig = response.data;
@@ -38,36 +67,13 @@ function saveConfig(OPENAI_API_KEY: string, model: string, embeddingsmodel: stri
 //             return false;
 //         });
 // }
-    return apiCall('/config', 'POST', payload).then((response) => {
-            const fetchedConfig = response.data;
-            console.log(fetchedConfig);
-
-            if (Object.keys(fetchedConfig).length === 0) {
-                return false;
-            }
-
-            // The fetched config is not an empty object, save it and return true
-            localStorage.setItem('config', JSON.stringify(fetchedConfig));
-            console.log(fetchedConfig);
-            window.location.reload();
-
-            return true;
-        }
-    )
-        .catch((error) => {
-                console.log('Error fetching config:', error);
-                return false;
-            }
-        );
 }
-
 function Config() {
     const isConnected = useSelector((state) => state.connectedExternalDb.value);
     const dispatch = useDispatch();
     const [opened, {open, close}] = useDisclosure(false);
     const [focused, setFocused] = useState(false);
 
-
     const form = useForm({
         initialValues: {
             OPENAI_API_KEY: '',