diff --git a/packages/web/src/components/FlowStep/index.jsx b/packages/web/src/components/FlowStep/index.jsx
index 853c24bb..0dee4bbe 100644
--- a/packages/web/src/components/FlowStep/index.jsx
+++ b/packages/web/src/components/FlowStep/index.jsx
@@ -11,9 +11,6 @@ import IconButton from '@mui/material/IconButton';
 import ErrorIcon from '@mui/icons-material/Error';
 import CircularProgress from '@mui/material/CircularProgress';
 import CheckCircleIcon from '@mui/icons-material/CheckCircle';
-import { yupResolver } from '@hookform/resolvers/yup';
-import * as yup from 'yup';
-
 import { EditorContext } from 'contexts/Editor';
 import { StepExecutionsProvider } from 'contexts/StepExecutions';
 import TestSubstep from 'components/TestSubstep';
@@ -33,77 +30,17 @@ import {
   Header,
   Wrapper,
 } from './style';
-import isEmpty from 'helpers/isEmpty';
 import { StepPropType } from 'propTypes/propTypes';
 import useTriggers from 'hooks/useTriggers';
 import useActions from 'hooks/useActions';
 import useTriggerSubsteps from 'hooks/useTriggerSubsteps';
 import useActionSubsteps from 'hooks/useActionSubsteps';
 import useStepWithTestExecutions from 'hooks/useStepWithTestExecutions';
+import { generateValidationSchema } from './validation';
 
 const validIcon = <CheckCircleIcon color="success" />;
 const errorIcon = <ErrorIcon color="error" />;
 
-function generateValidationSchema(substeps) {
-  const fieldValidations = substeps?.reduce(
-    (allValidations, { arguments: args }) => {
-      if (!args || !Array.isArray(args)) return allValidations;
-      const substepArgumentValidations = {};
-      for (const arg of args) {
-        const { key, required } = arg;
-        // base validation for the field if not exists
-        if (!substepArgumentValidations[key]) {
-          substepArgumentValidations[key] = yup.mixed();
-        }
-        if (
-          typeof substepArgumentValidations[key] === 'object' &&
-          (arg.type === 'string' || arg.type === 'dropdown')
-        ) {
-          // if the field is required, add the required validation
-          if (required) {
-            substepArgumentValidations[key] = substepArgumentValidations[key]
-              .required(`${key} is required.`)
-              .test(
-                'empty-check',
-                `${key} must be not empty`,
-                (value) => !isEmpty(value),
-              );
-          }
-          // if the field depends on another field, add the dependsOn required validation
-          if (Array.isArray(arg.dependsOn) && arg.dependsOn.length > 0) {
-            for (const dependsOnKey of arg.dependsOn) {
-              const missingDependencyValueMessage = `We're having trouble loading '${key}' data as required field '${dependsOnKey}' is missing.`;
-              // TODO: make `dependsOnKey` agnostic to the field. However, nested validation schema is not supported.
-              // So the fields under the `parameters` key are subject to their siblings only and thus, `parameters.` is removed.
-              substepArgumentValidations[key] = substepArgumentValidations[
-                key
-              ].when(`${dependsOnKey.replace('parameters.', '')}`, {
-                is: (value) => Boolean(value) === false,
-                then: (schema) =>
-                  schema
-                    .notOneOf([''], missingDependencyValueMessage)
-                    .required(missingDependencyValueMessage),
-              });
-            }
-          }
-        }
-      }
-
-      return {
-        ...allValidations,
-        ...substepArgumentValidations,
-      };
-    },
-    {},
-  );
-
-  const validationSchema = yup.object({
-    parameters: yup.object(fieldValidations),
-  });
-
-  return yupResolver(validationSchema);
-}
-
 function FlowStep(props) {
   const { collapsed, onChange, onContinue, flowId } = props;
   const editorContext = React.useContext(EditorContext);
diff --git a/packages/web/src/components/FlowStep/validation.js b/packages/web/src/components/FlowStep/validation.js
new file mode 100644
index 00000000..134a4f62
--- /dev/null
+++ b/packages/web/src/components/FlowStep/validation.js
@@ -0,0 +1,114 @@
+import * as yup from 'yup';
+import { yupResolver } from '@hookform/resolvers/yup';
+import isEmpty from 'helpers/isEmpty';
+
+function addRequiredValidation({ required, schema, key }) {
+  // if the field is required, add the required validation
+  if (required) {
+    return schema
+      .required(`${key} is required.`)
+      .test(
+        'empty-check',
+        `${key} must be not empty`,
+        (value) => !isEmpty(value),
+      );
+  }
+  return schema;
+}
+
+function addDependsOnValidation({ schema, dependsOn, key, args }) {
+  // if the field depends on another field, add the dependsOn required validation
+  if (Array.isArray(dependsOn) && dependsOn.length > 0) {
+    for (const dependsOnKey of dependsOn) {
+      const dependsOnKeyShort = dependsOnKey.replace('parameters.', '');
+      const dependsOnField = args.find(({ key }) => key === dependsOnKeyShort);
+
+      if (dependsOnField?.required) {
+        const missingDependencyValueMessage = `We're having trouble loading '${key}' data as required field '${dependsOnKey}' is missing.`;
+
+        // TODO: make `dependsOnKey` agnostic to the field. However, nested validation schema is not supported.
+        // So the fields under the `parameters` key are subject to their siblings only and thus, `parameters.` is removed.
+        return schema.when(dependsOnKeyShort, {
+          is: (dependsOnValue) => Boolean(dependsOnValue) === false,
+          then: (schema) =>
+            schema
+              .notOneOf([''], missingDependencyValueMessage)
+              .required(missingDependencyValueMessage),
+        });
+      }
+    }
+  }
+  return schema;
+}
+
+export function generateValidationSchema(substeps) {
+  const fieldValidations = substeps?.reduce(
+    (allValidations, { arguments: args }) => {
+      if (!args || !Array.isArray(args)) return allValidations;
+
+      const substepArgumentValidations = {};
+
+      for (const arg of args) {
+        const { key, required } = arg;
+
+        // base validation for the field if not exists
+        if (!substepArgumentValidations[key]) {
+          substepArgumentValidations[key] = yup.mixed();
+        }
+
+        if (arg.type === 'dynamic') {
+          const fieldsSchema = {};
+
+          for (const field of arg.fields) {
+            fieldsSchema[field.key] = yup.mixed();
+
+            fieldsSchema[field.key] = addRequiredValidation({
+              required: field.required,
+              schema: fieldsSchema[field.key],
+              key: field.key,
+            });
+
+            fieldsSchema[field.key] = addDependsOnValidation({
+              schema: fieldsSchema[field.key],
+              dependsOn: field.dependsOn,
+              key: field.key,
+              args,
+            });
+          }
+
+          substepArgumentValidations[key] = yup
+            .array()
+            .of(yup.object(fieldsSchema));
+        } else if (
+          typeof substepArgumentValidations[key] === 'object' &&
+          (arg.type === 'string' || arg.type === 'dropdown')
+        ) {
+          substepArgumentValidations[key] = addRequiredValidation({
+            required,
+            schema: substepArgumentValidations[key],
+            key,
+          });
+
+          substepArgumentValidations[key] = addDependsOnValidation({
+            schema: substepArgumentValidations[key],
+            dependsOn: arg.dependsOn,
+            key,
+            args,
+          });
+        }
+      }
+
+      return {
+        ...allValidations,
+        ...substepArgumentValidations,
+      };
+    },
+    {},
+  );
+
+  const validationSchema = yup.object({
+    parameters: yup.object(fieldValidations),
+  });
+
+  return yupResolver(validationSchema);
+}