diff --git a/app/jobs/webhooks/instagram_events_job.rb b/app/jobs/webhooks/instagram_events_job.rb
index eb08f2ebb..3db8b6ba9 100644
--- a/app/jobs/webhooks/instagram_events_job.rb
+++ b/app/jobs/webhooks/instagram_events_job.rb
@@ -24,6 +24,11 @@ class Webhooks::InstagramEventsJob < MutexApplicationJob
   private
 
   def process_single_entry(entry)
+    if test_event?(entry)
+      process_test_event(entry)
+      return
+    end
+
     process_messages(entry)
   end
 
@@ -46,6 +51,20 @@ class Webhooks::InstagramEventsJob < MutexApplicationJob
     messaging[:message].present? && messaging[:message][:is_echo].present?
   end
 
+  def test_event?(entry)
+    entry[:changes].present?
+  end
+
+  def process_test_event(entry)
+    messaging = extract_messaging_from_test_event(entry)
+
+    Instagram::TestEventService.new(messaging).perform if messaging.present?
+  end
+
+  def extract_messaging_from_test_event(entry)
+    entry[:changes].first&.dig(:value) if entry[:changes].present?
+  end
+
   def instagram_id(messaging)
     if agent_message_via_echo?(messaging)
       messaging[:sender][:id]
diff --git a/app/services/instagram/test_event_service.rb b/app/services/instagram/test_event_service.rb
new file mode 100644
index 000000000..6fe242494
--- /dev/null
+++ b/app/services/instagram/test_event_service.rb
@@ -0,0 +1,79 @@
+class Instagram::TestEventService
+  def initialize(messaging)
+    @messaging = messaging
+  end
+
+  def perform
+    Rails.logger.info("Processing Instagram test webhook event, #{@messaging}")
+
+    return false unless test_webhook_event?
+
+    create_test_text
+  end
+
+  private
+
+  def test_webhook_event?
+    @messaging[:sender][:id] == '12334' && @messaging[:recipient][:id] == '23245'
+  end
+
+  def create_test_text
+    # As of now, we are using the last created instagram channel as the test channel,
+    # since we don't have any other channel for testing purpose at the time of meta approval
+    channel = Channel::Instagram.last
+
+    @inbox = ::Inbox.find_by(channel: channel)
+    return unless @inbox
+
+    @contact = create_test_contact
+
+    @conversation ||= create_test_conversation(conversation_params)
+
+    @message = @conversation.messages.create!(test_message_params)
+  end
+
+  def create_test_contact
+    @contact_inbox = @inbox.contact_inboxes.where(source_id: @messaging[:sender][:id]).first
+    unless @contact_inbox
+      @contact_inbox ||= @inbox.channel.create_contact_inbox(
+        'sender_username', 'sender_username'
+      )
+    end
+
+    @contact_inbox.contact
+  end
+
+  def create_test_conversation(conversation_params)
+    Conversation.find_by(conversation_params) || build_conversation(conversation_params)
+  end
+
+  def test_message_params
+    {
+      account_id: @conversation.account_id,
+      inbox_id: @conversation.inbox_id,
+      message_type: 'incoming',
+      source_id: @messaging[:message][:mid],
+      content: @messaging[:message][:text],
+      sender: @contact
+    }
+  end
+
+  def build_conversation(conversation_params)
+    Conversation.create!(
+      conversation_params.merge(
+        contact_inbox_id: @contact_inbox.id
+      )
+    )
+  end
+
+  def conversation_params
+    {
+      account_id: @inbox.account_id,
+      inbox_id: @inbox.id,
+      contact_id: @contact.id,
+      additional_attributes: {
+        type: 'instagram_direct_message'
+      }
+    }
+  end
+end
diff --git a/spec/factories/instagram/instagram_message_create_event.rb b/spec/factories/instagram/instagram_message_create_event.rb
index 99572d620..66d5e8a81 100644
--- a/spec/factories/instagram/instagram_message_create_event.rb
+++ b/spec/factories/instagram/instagram_message_create_event.rb
@@ -361,4 +361,34 @@ FactoryBot.define do
     end
     initialize_with { attributes }
   end
+
+  factory :instagram_test_event, class: Hash do
+    entry do
+      [
+        {
+          'id': '0',
+          'time': '2021-09-08T06:34:04+0000',
+          'changes': [
+            {
+              'field': 'messages',
+              'value': {
+                'sender': {
+                  'id': '12334'
+                },
+                'recipient': {
+                  'id': '23245'
+                },
+                'timestamp': '1527459824',
+                'message': {
+                  'mid': 'random_mid',
+                  'text': 'random_text'
+                }
+              }
+            }
+          ]
+        }
+      ]
+    end
+    initialize_with { attributes }
+  end
 end
diff --git a/spec/services/instagram/test_event_service_spec.rb b/spec/services/instagram/test_event_service_spec.rb
new file mode 100644
index 000000000..a783197e6
--- /dev/null
+++ b/spec/services/instagram/test_event_service_spec.rb
@@ -0,0 +1,71 @@
+require 'rails_helper'
+
+describe Instagram::TestEventService do
+  let(:account) { create(:account) }
+  let(:instagram_channel) { create(:channel_instagram, account: account) }
+  let(:inbox) { create(:inbox, channel: instagram_channel, account: account) }
+
+  describe '#perform' do
+    context 'when validating test webhook event' do
+      let(:test_messaging) do
+        {
+          'sender': {
+            'id': '12334'
+          },
+          'recipient': {
+            'id': '23245'
+          },
+          'timestamp': '1527459824',
+          'message': {
+            'mid': 'random_mid',
+            'text': 'random_text'
+          }
+        }.with_indifferent_access
+      end
+
+      it 'creates test message for valid test webhook event' do
+        # Ensure inbox exists before test
+        inbox
+
+        service = described_class.new(test_messaging)
+
+        expect { service.perform }.to change(Message, :count).by(1)
+
+        message = Message.last
+        expect(message.content).to eq('random_text')
+        expect(message.source_id).to eq('random_mid')
+        expect(message.message_type).to eq('incoming')
+      end
+
+      it 'creates a contact with sender_username' do
+        # Ensure inbox exists before test
+        inbox
+
+        service = described_class.new(test_messaging)
+        service.perform
+
+        contact = Contact.last
+        expect(contact.name).to eq('sender_username')
+      end
+
+      it 'returns false for non-test webhook events' do
+        invalid_messaging = test_messaging.deep_dup
+        invalid_messaging[:sender][:id] = 'different_id'
+
+        service = described_class.new(invalid_messaging)
+
+        expect(service.perform).to be(false)
+      end
+
+      it 'returns nil when no Instagram channel exists' do
+        # Delete all inboxes and channels
+        Inbox.destroy_all
+        Channel::Instagram.destroy_all
+
+        service = described_class.new(test_messaging)
+
+        expect(service.perform).to be_nil
+      end
+    end
+  end
+end