diff --git a/core/src/main/java/com/netflix/conductor/core/storage/DummyPayloadStorage.java b/core/src/main/java/com/netflix/conductor/core/storage/DummyPayloadStorage.java
index 47c94c761f..a04a43710b 100644
--- a/core/src/main/java/com/netflix/conductor/core/storage/DummyPayloadStorage.java
+++ b/core/src/main/java/com/netflix/conductor/core/storage/DummyPayloadStorage.java
@@ -12,28 +12,90 @@
  */
 package com.netflix.conductor.core.storage;
 
+import java.io.File;
+import java.io.FileInputStream;
+import java.io.FileOutputStream;
+import java.io.IOException;
 import java.io.InputStream;
+import java.nio.file.Files;
+import java.util.UUID;
+
+import org.apache.commons.io.IOUtils;
+import org.slf4j.Logger;
+import org.slf4j.LoggerFactory;
 
 import com.netflix.conductor.common.run.ExternalStorageLocation;
 import com.netflix.conductor.common.utils.ExternalPayloadStorage;
 
+import com.fasterxml.jackson.databind.ObjectMapper;
+
 /**
  * A dummy implementation of {@link ExternalPayloadStorage} used when no external payload is
  * configured
  */
 public class DummyPayloadStorage implements ExternalPayloadStorage {
 
+    private static final Logger LOGGER = LoggerFactory.getLogger(DummyPayloadStorage.class);
+
+    private ObjectMapper objectMapper;
+    private File payloadDir;
+
+    public DummyPayloadStorage() {
+        try {
+            this.objectMapper = new ObjectMapper();
+            this.payloadDir = Files.createTempDirectory("payloads").toFile();
+            LOGGER.info(
+                    "{} initialized in directory: {}",
+                    this.getClass().getSimpleName(),
+                    payloadDir.getAbsolutePath());
+        } catch (IOException ioException) {
+            LOGGER.error(
+                    "Exception encountered while creating payloads directory : {}",
+                    ioException.getMessage());
+        }
+    }
+
     @Override
     public ExternalStorageLocation getLocation(
             Operation operation, PayloadType payloadType, String path) {
-        return null;
+        ExternalStorageLocation location = new ExternalStorageLocation();
+        location.setPath(path + UUID.randomUUID() + ".json");
+        return location;
     }
 
     @Override
-    public void upload(String path, InputStream payload, long payloadSize) {}
+    public void upload(String path, InputStream payload, long payloadSize) {
+        File file = new File(payloadDir, path);
+        String filePath = file.getAbsolutePath();
+        try {
+            if (!file.exists() && file.createNewFile()) {
+                LOGGER.debug("Created file: {}", filePath);
+            }
+            IOUtils.copy(payload, new FileOutputStream(file));
+            LOGGER.debug("Written to {}", filePath);
+        } catch (IOException e) {
+            // just handle this exception here and return empty map so that test will fail in case
+            // this exception is thrown
+            LOGGER.error("Error writing to {}", filePath);
+        } finally {
+            try {
+                if (payload != null) {
+                    payload.close();
+                }
+            } catch (IOException e) {
+                LOGGER.warn("Unable to close input stream when writing to file");
+            }
+        }
+    }
 
     @Override
     public InputStream download(String path) {
-        return null;
+        try {
+            LOGGER.debug("Reading from {}", path);
+            return new FileInputStream(new File(payloadDir, path));
+        } catch (IOException e) {
+            LOGGER.error("Error reading {}", path, e);
+            return null;
+        }
     }
 }
diff --git a/core/src/test/java/com/netflix/conductor/core/storage/DummyPayloadStorageTest.java b/core/src/test/java/com/netflix/conductor/core/storage/DummyPayloadStorageTest.java
new file mode 100644
index 0000000000..e5fd2c04d2
--- /dev/null
+++ b/core/src/test/java/com/netflix/conductor/core/storage/DummyPayloadStorageTest.java
@@ -0,0 +1,92 @@
+/*
+ * Copyright 2023 Netflix, Inc.
+ * <p>
+ * Licensed under the Apache License, Version 2.0 (the "License"); you may not use this file except in compliance with
+ * the License. You may obtain a copy of the License at
+ * <p>
+ * http://www.apache.org/licenses/LICENSE-2.0
+ * <p>
+ * Unless required by applicable law or agreed to in writing, software distributed under the License is distributed on
+ * an "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. See the License for the
+ * specific language governing permissions and limitations under the License.
+ */
+package com.netflix.conductor.core.storage;
+
+import java.io.ByteArrayInputStream;
+import java.io.IOException;
+import java.io.InputStream;
+import java.io.UnsupportedEncodingException;
+import java.nio.charset.StandardCharsets;
+import java.util.Map;
+
+import org.apache.commons.io.IOUtils;
+import org.junit.Before;
+import org.junit.Test;
+
+import com.netflix.conductor.common.run.ExternalStorageLocation;
+import com.netflix.conductor.common.utils.ExternalPayloadStorage;
+
+import com.fasterxml.jackson.databind.ObjectMapper;
+
+import static com.netflix.conductor.common.utils.ExternalPayloadStorage.PayloadType;
+
+import static org.junit.Assert.assertEquals;
+import static org.junit.Assert.assertNotNull;
+import static org.junit.Assert.assertNull;
+import static org.junit.Assert.assertTrue;
+
+public class DummyPayloadStorageTest {
+
+    private DummyPayloadStorage dummyPayloadStorage;
+
+    private static final String TEST_STORAGE_PATH = "test-storage";
+
+    private ExternalStorageLocation location;
+
+    private ObjectMapper objectMapper;
+
+    public static final String MOCK_PAYLOAD = "{\n" + "\"output\": \"TEST_OUTPUT\",\n" + "}\n";
+
+    @Before
+    public void setup() {
+        dummyPayloadStorage = new DummyPayloadStorage();
+        objectMapper = new ObjectMapper();
+        location =
+                dummyPayloadStorage.getLocation(
+                        ExternalPayloadStorage.Operation.WRITE,
+                        PayloadType.TASK_OUTPUT,
+                        TEST_STORAGE_PATH);
+        try {
+            byte[] payloadBytes = MOCK_PAYLOAD.getBytes("UTF-8");
+            dummyPayloadStorage.upload(
+                    location.getPath(),
+                    new ByteArrayInputStream(payloadBytes),
+                    payloadBytes.length);
+        } catch (UnsupportedEncodingException unsupportedEncodingException) {
+        }
+    }
+
+    @Test
+    public void testGetLocationNotNull() {
+        assertNotNull(location);
+    }
+
+    @Test
+    public void testDownloadForValidPath() {
+        try (InputStream inputStream = dummyPayloadStorage.download(location.getPath())) {
+            Map<String, Object> payload =
+                    objectMapper.readValue(
+                            IOUtils.toString(inputStream, StandardCharsets.UTF_8), Map.class);
+            assertTrue(payload.containsKey("output"));
+            assertEquals(payload.get("output"), "TEST_OUTPUT");
+        } catch (Exception e) {
+            assertTrue(e instanceof IOException);
+        }
+    }
+
+    @Test
+    public void testDownloadForInvalidPath() {
+        InputStream inputStream = dummyPayloadStorage.download("testPath");
+        assertNull(inputStream);
+    }
+}