diff --git a/core/contracts/staking/TokenStaking.sol b/core/contracts/staking/TokenStaking.sol
index aa61fc59d..d1b9d2ccd 100644
--- a/core/contracts/staking/TokenStaking.sol
+++ b/core/contracts/staking/TokenStaking.sol
@@ -11,9 +11,13 @@ import "@openzeppelin/contracts/token/ERC20/utils/SafeERC20.sol";
 ///         and recover the stake after undelegation period is over.
 contract TokenStaking {
     using SafeERC20 for IERC20;
-    
+
+    event Staked(address indexed account, uint256 amount);
+
     IERC20 internal immutable token;
 
+    mapping(address => uint256) public balanceOf;
+
     constructor(IERC20 _token) {
         require(
             address(_token) != address(0),
@@ -22,4 +26,15 @@ contract TokenStaking {
 
         token = _token;
     }
+
+    /// @notice Stakes the owner's tokens in the staking contract.
+    /// @param amount Approved amount for the transfer and stake.
+    function stake(uint256 amount) external {
+        require(amount > 0, "Amount is less than minimum");
+
+        balanceOf[msg.sender] += amount;
+
+        emit Staked(msg.sender, amount);
+        token.safeTransferFrom(msg.sender, address(this), amount);
+    }
 }
diff --git a/core/contracts/test/TestToken.sol b/core/contracts/test/TestToken.sol
new file mode 100644
index 000000000..749165b4c
--- /dev/null
+++ b/core/contracts/test/TestToken.sol
@@ -0,0 +1,13 @@
+// SPDX-License-Identifier: GPL-3.0-or-later
+
+pragma solidity 0.8.20;
+
+import "@openzeppelin/contracts/token/ERC20/ERC20.sol";
+
+contract Token is ERC20 {
+    constructor() ERC20("Test Token", "TEST") {}
+
+    function mint(address account, uint256 value) external {
+        _mint(account, value);
+    }
+}
diff --git a/core/test/staking/TokenStaking.test.ts b/core/test/staking/TokenStaking.test.ts
new file mode 100644
index 000000000..fb2e8655a
--- /dev/null
+++ b/core/test/staking/TokenStaking.test.ts
@@ -0,0 +1,67 @@
+import { loadFixture } from "@nomicfoundation/hardhat-toolbox/network-helpers"
+import { ethers } from "hardhat"
+import { expect } from "chai"
+import { Token, TokenStaking } from "../../typechain"
+import { WeiPerEther } from "ethers"
+import { HardhatEthersSigner } from "@nomicfoundation/hardhat-ethers/signers"
+import { before } from "mocha"
+
+async function tokenStakingFixture() {
+  const [deployer, tokenHolder] = await ethers.getSigners()
+  const StakingToken = await ethers.getContractFactory("Token")
+  const token = await StakingToken.deploy()
+
+  const amountToMint = WeiPerEther * 10000n
+
+  token.mint(tokenHolder, amountToMint)
+
+  const TokenStaking = await ethers.getContractFactory("TokenStaking")
+  const tokenStaking = await TokenStaking.deploy(await token.getAddress())
+
+  return { tokenStaking, token, tokenHolder }
+}
+
+describe("TokenStaking", () => {
+  let tokenStaking: TokenStaking
+  let token: Token
+  let tokenHolder: HardhatEthersSigner
+
+  beforeEach(async () => {
+    const {
+      tokenStaking: _tokenStaking,
+      token: _token,
+      tokenHolder: _tokenHolder,
+    } = await loadFixture(tokenStakingFixture)
+
+    tokenStaking = _tokenStaking
+    token = _token
+    tokenHolder = _tokenHolder
+  })
+
+  describe("staking", () => {
+    beforeEach(async () => {
+      // Infinite approval for staking contract.
+      await token
+        .connect(tokenHolder)
+        .approve(await tokenStaking.getAddress(), ethers.MaxUint256)
+    })
+
+    it("should stake tokens", async () => {
+      const tokenHolderAddress = await tokenHolder.getAddress()
+      const tokenBalance = await token.balanceOf(tokenHolderAddress)
+
+      await expect(tokenStaking.connect(tokenHolder).stake(tokenBalance))
+        .to.emit(tokenStaking, "Staked")
+        .withArgs(tokenHolderAddress, tokenBalance)
+      expect(await tokenStaking.balanceOf(tokenHolderAddress)).to.be.eq(
+        tokenBalance,
+      )
+      expect(await token.balanceOf(tokenHolderAddress)).to.be.eq(0)
+    })
+
+    it("should revert if the staked amount is less than required minimum", async () => {
+        await expect(tokenStaking.connect(tokenHolder).stake(0))
+        .to.be.revertedWith("Amount is less than minimum")
+    })
+  })
+})