diff --git a/server/src-lib/Hasura/Server/Types.hs b/server/src-lib/Hasura/Server/Types.hs
index 26463cd6df0f5..33669272e9c15 100644
--- a/server/src-lib/Hasura/Server/Types.hs
+++ b/server/src-lib/Hasura/Server/Types.hs
@@ -328,8 +328,8 @@ instance ToJSON ExtQueryReqs where
 instance FromJSON ExtQueryReqs where
   parseJSON arr@Array {} = EqrGQLReq <$> (GH.GQLBatchedReqs <$> parseJSON arr)
   parseJSON json
-    -- The APQ requests, have a special key called as Extensions
-    | isJust (json Lens.^? key "extensions") = EqrAPQReq <$> parseJSON json
+    -- The APQ requests, have a special object in the key `Extentions` called as `persistedQuery`
+    | isJust (json Lens.^? key "extensions" . key "persistedQuery") = EqrAPQReq <$> parseJSON json
     | otherwise = EqrGQLReq <$> (GH.GQLSingleRequest <$> parseJSON json)
 
 class (Monad m) => MonadGetPolicies m where
diff --git a/server/tests-py/queries/graphql_query/basic/select_query_with_extensions.yaml b/server/tests-py/queries/graphql_query/basic/select_query_with_extensions.yaml
new file mode 100644
index 0000000000000..650e0776a3fe5
--- /dev/null
+++ b/server/tests-py/queries/graphql_query/basic/select_query_with_extensions.yaml
@@ -0,0 +1,49 @@
+- description: Simple GraphQL object query on author, where the request includes extensions (normal request).
+  url: /v1/graphql
+  headers:
+    X-Hasura-Role: admin
+  status: 200
+  response:
+    data:
+      author:
+      - id: 1
+        name: Author 1
+      - id: 2
+        name: Author 2
+  query:
+    # https://graphql.org/learn/serving-over-http/#post-request
+    operationName: chooseThisOne
+    extensions: null
+    query: |
+      query chooseThisOne {
+        author {
+          id
+          name
+        }
+      }
+
+- description: Simple GraphQL object query on author, where the request includes persisted query extension.
+  url: /v1/graphql
+  headers:
+    X-Hasura-Role: admin
+  status: 200
+  response:
+    errors:
+    - extensions:
+        path: $
+        code: not-supported
+      message: Automatic Persisted Queries is not enabled
+  query:
+    # https://graphql.org/learn/serving-over-http/#post-request
+    operationName: chooseThisOne
+    extensions: 
+      persistedQuery: 
+        version: 1
+        sha256Hash: randomhash
+    query: |
+      query chooseThisOne {
+        author {
+          id
+          name
+        }
+      }
diff --git a/server/tests-py/test_graphql_queries.py b/server/tests-py/test_graphql_queries.py
index 5fd1cc59aa55d..13a4c611326e3 100644
--- a/server/tests-py/test_graphql_queries.py
+++ b/server/tests-py/test_graphql_queries.py
@@ -180,6 +180,10 @@ def test_select_query_batching_with_one_error(self, hge_ctx, transport):
     def test_create_invalid_fkey_relationship(self, hge_ctx, transport):
         resp = hge_ctx.v1q_f(self.dir() + '/setup_invalid_fkey_relationship.yaml', expected_status_code = 400)
         assert resp['error'] == "Expecting object { table, columns }."
+    
+    def test_select_query_with_extensions(self, hge_ctx, transport):
+        transport = 'http'
+        check_query_f(hge_ctx, self.dir() + "/select_query_with_extensions.yaml", transport)
 
     @classmethod
     def dir(cls):