diff --git a/lib/workos/webhooks/webhooks.ex b/lib/workos/webhooks.ex
similarity index 96%
rename from lib/workos/webhooks/webhooks.ex
rename to lib/workos/webhooks.ex
index dbb38d7d..cc73a6b7 100644
--- a/lib/workos/webhooks/webhooks.ex
+++ b/lib/workos/webhooks.ex
@@ -1,10 +1,10 @@
 defmodule WorkOS.Webhooks do
   @moduledoc """
-  The Webhooks module provides convenience methods for working with WorkOS webhooks.
-  Creates a WorkOS Webhook Event from the webhook's payload if signature is valid.
+  Manage timestamp and signature validation of Webhooks in WorkOS.
 
   See https://workos.com/docs/webhooks
   """
+
   alias WorkOS.Webhooks.Event
   @three_minute_default_tolerance 60 * 3
 
diff --git a/lib/workos/webhooks/event.ex b/lib/workos/webhooks/event.ex
index df8eead1..35f65ac8 100644
--- a/lib/workos/webhooks/event.ex
+++ b/lib/workos/webhooks/event.ex
@@ -2,6 +2,7 @@ defmodule WorkOS.Webhooks.Event do
   @moduledoc """
   Module to represent a webhook event
   """
+
   defstruct [:id, :event, :data]
 
   @spec new(payload :: String.t()) :: __MODULE__
diff --git a/mix.exs b/mix.exs
index b4506f64..40eac881 100755
--- a/mix.exs
+++ b/mix.exs
@@ -86,6 +86,7 @@ defmodule WorkOS.MixProject do
         WorkOS.SSO,
         WorkOS.Organizations,
         WorkOS.Portal,
+        WorkOS.Webhooks,
       ],
       "Response Structs": [
         WorkOS.SSO.Connection,
@@ -95,6 +96,7 @@ defmodule WorkOS.MixProject do
         WorkOS.Organizations.Organization,
         WorkOS.Organizations.Organization.Domain,
         WorkOS.Portal.Link,
+        WorkOS.Webhooks.Event,
         WorkOS.Empty,
         WorkOS.Error,
         WorkOS.List
diff --git a/test/workos/webhooks_test.exs b/test/workos/webhooks_test.exs
new file mode 100644
index 00000000..1b582c95
--- /dev/null
+++ b/test/workos/webhooks_test.exs
@@ -0,0 +1,149 @@
+defmodule WorkOS.WebhooksTest do
+  use ExUnit.Case
+
+  alias WorkOS.Webhooks
+
+  @secret "secret"
+  @timestamp DateTime.utc_now() |> DateTime.add(30) |> DateTime.to_unix(:millisecond)
+  @payload """
+  {"id": "wh_123","data":{"id":"directory_user_01FAEAJCR3ZBZ30D8BD1924TVG","state":"active","emails":[{"type":"work","value":"blair@foo-corp.com","primary":true}],"idp_id":"00u1e8mutl6wlH3lL4x7","object":"directory_user","username":"blair@foo-corp.com","last_name":"Lunchford","first_name":"Blair","job_title":"Software Engineer","directory_id":"directory_01F9M7F68PZP8QXP8G7X5QRHS7","raw_attributes":{"name":{"givenName":"Blair","familyName":"Lunchford","middleName":"Elizabeth","honorificPrefix":"Ms."},"title":"Software Engineer","active":true,"emails":[{"type":"work","value":"blair@foo-corp.com","primary":true}],"groups":[],"locale":"en-US","schemas":["urn:ietf:params:scim:schemas:core:2.0:User","urn:ietf:params:scim:schemas:extension:enterprise:2.0:User"],"userName":"blair@foo-corp.com","addresses":[{"region":"CA","primary":true,"locality":"San Francisco","postalCode":"94016"}],"externalId":"00u1e8mutl6wlH3lL4x7","displayName":"Blair Lunchford","urn:ietf:params:scim:schemas:extension:enterprise:2.0:User":{"manager":{"value":"2","displayName":"Kate Chapman"},"division":"Engineering","department":"Customer Success"}}},"event":"dsync.user.created"}
+  """
+  @unhashed_string "#{@timestamp}.#{@payload}"
+  @signature_hash :crypto.mac(:hmac, :sha256, @secret, @unhashed_string)
+                  |> Base.encode16(case: :lower)
+  @expectated_data_map %{
+    id: "directory_user_01FAEAJCR3ZBZ30D8BD1924TVG",
+    state: "active",
+    emails: [
+      %{
+        type: "work",
+        value: "blair@foo-corp.com",
+        primary: true
+      }
+    ],
+    idp_id: "00u1e8mutl6wlH3lL4x7",
+    object: "directory_user",
+    username: "blair@foo-corp.com",
+    last_name: "Lunchford",
+    first_name: "Blair",
+    job_title: "Software Engineer",
+    directory_id: "directory_01F9M7F68PZP8QXP8G7X5QRHS7",
+    raw_attributes: %{
+      name: %{
+        givenName: "Blair",
+        familyName: "Lunchford",
+        middleName: "Elizabeth",
+        honorificPrefix: "Ms."
+      },
+      title: "Software Engineer",
+      active: true,
+      emails: [
+        %{
+          type: "work",
+          value: "blair@foo-corp.com",
+          primary: true
+        }
+      ],
+      groups: [],
+      locale: "en-US",
+      schemas: [
+        "urn:ietf:params:scim:schemas:core:2.0:User",
+        "urn:ietf:params:scim:schemas:extension:enterprise:2.0:User"
+      ],
+      userName: "blair@foo-corp.com",
+      addresses: [
+        %{
+          region: "CA",
+          primary: true,
+          locality: "San Francisco",
+          postalCode: "94016"
+        }
+      ],
+      externalId: "00u1e8mutl6wlH3lL4x7",
+      displayName: "Blair Lunchford",
+      "urn:ietf:params:scim:schemas:extension:enterprise:2.0:User": %{
+        manager: %{
+          value: "2",
+          displayName: "Kate Chapman"
+        },
+        division: "Engineering",
+        department: "Customer Success"
+      }
+    }
+  }
+
+  describe "construct_event/4 - valid inputs" do
+    setup do
+      %{sig_header: "t=#{@timestamp}, v1=#{@signature_hash}"}
+    end
+
+    test "returns a webhook event with a valid payload, sig_header, and secret", %{
+      sig_header: sig_header
+    } do
+      {:ok, %WorkOS.Webhooks.Event{} = webhook} =
+        Webhooks.construct_event(@payload, sig_header, @secret)
+
+      assert webhook.data == @expectated_data_map
+      assert webhook.event == "dsync.user.created"
+      assert webhook.id == "wh_123"
+    end
+
+    test "returns a webhook event with a valid payload, sig_header, secret, and tolerance", %{
+      sig_header: sig_header
+    } do
+      {:ok, webhook} = Webhooks.construct_event(@payload, sig_header, @secret, 100)
+
+      assert webhook.data == @expectated_data_map
+      assert webhook.event == "dsync.user.created"
+      assert webhook.id == "wh_123"
+    end
+  end
+
+  describe "construct_event/4 - invalid inputs" do
+    setup do
+      %{sig_header: "t=#{@timestamp}, v1=#{@signature_hash}"}
+    end
+
+    test "returns an error with an empty header" do
+      empty_sig_header = ""
+
+      assert {:error, "Signature or timestamp missing"} ==
+               Webhooks.construct_event(@payload, empty_sig_header, @secret)
+    end
+
+    test "returns an error with an empty signature hash" do
+      missing_sig_hash = "t=#{@timestamp}, v1="
+
+      assert {:error, "Signature or timestamp missing"} ==
+               Webhooks.construct_event(@payload, missing_sig_hash, @secret)
+    end
+
+    test "returns an error with an incorrect signature hash" do
+      incorrect_sig_hash = "t=#{@timestamp}, v1=99999"
+
+      assert {:error, "Signature hash does not match the expected signature hash for payload"} ==
+               Webhooks.construct_event(@payload, incorrect_sig_hash, @secret)
+    end
+
+    test "returns an error with an incorrect payload", %{sig_header: sig_header} do
+      invalid_payload = "invalid"
+
+      assert {:error, "Signature hash does not match the expected signature hash for payload"} ==
+               Webhooks.construct_event(invalid_payload, sig_header, @secret)
+    end
+
+    test "returns an error with an incorrect secret", %{sig_header: sig_header} do
+      invalid_secret = "invalid"
+
+      assert {:error, "Signature hash does not match the expected signature hash for payload"} ==
+               Webhooks.construct_event(@payload, sig_header, invalid_secret)
+    end
+
+    test "returns an error with a timestamp outside tolerance" do
+      sig_header = "t=9999, v1=#{@signature_hash}"
+
+      assert {:error, "Timestamp outside the tolerance zone"} ==
+               Webhooks.construct_event(@payload, sig_header, @secret)
+    end
+  end
+end