diff --git a/src/Microsoft.SqlTools.ServiceLayer/DacFx/Contracts/SavePublishProfileRequest.cs b/src/Microsoft.SqlTools.ServiceLayer/DacFx/Contracts/SavePublishProfileRequest.cs
new file mode 100644
index 00000000..132e1163
--- /dev/null
+++ b/src/Microsoft.SqlTools.ServiceLayer/DacFx/Contracts/SavePublishProfileRequest.cs
@@ -0,0 +1,53 @@
+//
+// Copyright (c) Microsoft. All rights reserved.
+// Licensed under the MIT license. See LICENSE file in the project root for full license information.
+//
+using System.Collections.Generic;
+using Microsoft.SqlTools.Hosting.Protocol.Contracts;
+using Microsoft.SqlTools.ServiceLayer.Utility;
+
+namespace Microsoft.SqlTools.ServiceLayer.DacFx.Contracts
+{
+    /// <summary>
+    /// Parameters for a DacFx save publish profile request.
+    /// </summary>
+    public class SavePublishProfileParams
+    {
+        /// <summary>
+        /// Gets or sets the profile path
+        /// </summary>
+        public string ProfilePath { get; set; }
+
+        /// <summary>
+        /// Gets or sets name for database
+        /// </summary>
+        public string? DatabaseName { get; set; }
+
+        /// <summary>
+        /// Gets or sets target connection string
+        /// </summary>
+        public string? ConnectionString { get; set; }
+
+        /// <summary>
+        /// Gets or sets SQLCMD variables for deployment
+        /// </summary>
+        public IDictionary<string, string>? SqlCommandVariableValues { get; set; }
+
+        /// <summary>
+        /// Gets or sets the options for deployment
+        /// </summary>
+        public DeploymentOptions? DeploymentOptions { get; set; }
+    }
+
+    /// <summary>
+    /// Defines the DacFx save publish profile request type
+    /// </summary>
+    class SavePublishProfileRequest
+    {
+        public static readonly RequestType<SavePublishProfileParams, ResultStatus> Type =
+            RequestType<SavePublishProfileParams, ResultStatus>.Create("dacfx/savePublishProfile");
+    }
+}
+
+
+
diff --git a/src/Microsoft.SqlTools.ServiceLayer/DacFx/DacFxService.cs b/src/Microsoft.SqlTools.ServiceLayer/DacFx/DacFxService.cs
index 8c43438d..879539b3 100644
--- a/src/Microsoft.SqlTools.ServiceLayer/DacFx/DacFxService.cs
+++ b/src/Microsoft.SqlTools.ServiceLayer/DacFx/DacFxService.cs
@@ -15,6 +15,7 @@ using Microsoft.SqlTools.ServiceLayer.Hosting;
 using Microsoft.SqlTools.ServiceLayer.TaskServices;
 using Microsoft.SqlServer.Dac.Model;
 using DacTableDesigner = Microsoft.Data.Tools.Sql.DesignServices.TableDesigner.TableDesigner;
+using Microsoft.SqlTools.ServiceLayer.Utility;
 
 namespace Microsoft.SqlTools.ServiceLayer.DacFx
 {
@@ -60,6 +61,7 @@ namespace Microsoft.SqlTools.ServiceLayer.DacFx
             serviceHost.SetRequestHandler(ParseTSqlScriptRequest.Type, this.HandleParseTSqlScriptRequest, true);
             serviceHost.SetRequestHandler(GenerateTSqlModelRequest.Type, this.HandleGenerateTSqlModelRequest, true);
             serviceHost.SetRequestHandler(GetObjectsFromTSqlModelRequest.Type, this.HandleGetObjectsFromTSqlModelRequest, true);
+            serviceHost.SetRequestHandler(SavePublishProfileRequest.Type, this.HandleSavePublishProfileRequest, true);
         }
 
         /// <summary>
@@ -311,6 +313,36 @@ namespace Microsoft.SqlTools.ServiceLayer.DacFx
             return;
         }
 
+        /// <summary>
+        /// Handles request to save a publish profile
+        /// </summary>
+        /// <returns></returns>
+        public async Task HandleSavePublishProfileRequest(SavePublishProfileParams parameters, RequestContext<ResultStatus> requestContext)
+        {
+            await BaseService.RunWithErrorHandling(() =>
+            {
+                if (parameters.ProfilePath != null)
+                {
+                    DacProfile profile = new DacProfile();
+                    profile.TargetDatabaseName = parameters.DatabaseName;
+                    profile.TargetConnectionString = parameters.ConnectionString;
+                    //TODO: Set deploy options to pass on to DacFx
+
+                    if (parameters.SqlCommandVariableValues != null)
+                    {
+                        foreach (string key in parameters.SqlCommandVariableValues.Keys)
+                        {
+                            profile.DeployOptions.SqlCommandVariableValues[key] = parameters.SqlCommandVariableValues[key];
+                        }
+                    }
+                    //TODO: Add return from Save with success/fail status
+                    profile.Save(parameters.ProfilePath);
+                }
+            }, requestContext);
+ 
+            return;
+        }
+
         private void ExecuteOperation(DacFxOperation operation, DacFxParams parameters, string taskName, RequestContext<DacFxResult> requestContext)
         {
             Task.Run(async () =>
diff --git a/test/Microsoft.SqlTools.ServiceLayer.IntegrationTests/DacFx/DacFxServiceTests.cs b/test/Microsoft.SqlTools.ServiceLayer.IntegrationTests/DacFx/DacFxServiceTests.cs
index debff933..1993a651 100644
--- a/test/Microsoft.SqlTools.ServiceLayer.IntegrationTests/DacFx/DacFxServiceTests.cs
+++ b/test/Microsoft.SqlTools.ServiceLayer.IntegrationTests/DacFx/DacFxServiceTests.cs
@@ -23,6 +23,8 @@ using Microsoft.SqlServer.Dac.Model;
 using NUnit.Framework;
 using Moq;
 using System.Reflection;
+using Microsoft.SqlTools.ServiceLayer.Utility;
+using Microsoft.SqlTools.ServiceLayer.Test.Common.RequestContextMocking;
 
 namespace Microsoft.SqlTools.ServiceLayer.IntegrationTests.DacFx
 {
@@ -868,6 +870,37 @@ Streaming query statement contains a reference to missing output stream 'Missing
             }
         }
 
+        // <summary>
+        /// Verify that publish profile gets created and saved
+        /// </summary>
+        [Test]
+        public async Task ValidateSavePublishProfile()
+        {
+            DacFxService service = new DacFxService();
+            string fileName = "validateSavePublishProfile.publish.xml";
+            string folderPath = Path.Combine(Environment.GetFolderPath(Environment.SpecialFolder.LocalApplicationData), "DacFxTest");
+            string profileFilePath = Path.Combine(folderPath, fileName);
+            string expectedFile = Path.Combine(publishProfileFolder, fileName);
+
+            var savePublishProfileParams = new SavePublishProfileParams
+            {
+                ProfilePath = profileFilePath,
+                DatabaseName = "testDb",
+                ConnectionString = "testConnString",
+                SqlCommandVariableValues = new Dictionary<string, string>()
+                    {
+                        { "testvar", "testval" }
+                    }
+            };
+
+            MockRequest<ResultStatus> requestMock = new();
+
+            await service.HandleSavePublishProfileRequest(savePublishProfileParams, requestMock.Object);
+            requestMock.AssertSuccess(nameof(service.HandleSavePublishProfileRequest));
+
+            await VerifyContentAndCleanupAsync(expectedFile, profileFilePath);
+        }
+
         private bool ValidateStreamingJobErrors(ValidateStreamingJobResult expected, ValidateStreamingJobResult actual)
         {
             return expected.Success == actual.Success
@@ -942,6 +975,24 @@ Streaming query statement contains a reference to missing output stream 'Missing
             }
         }
 
+        private async Task VerifyContentAndCleanupAsync(string baselineFilePath, string outputFilePath)
+        {
+            // Verify it was created
+            Assert.True(File.Exists(outputFilePath), "The output file did not get generated.");
+
+            //Verify the contents are same
+            string baseline = await File.ReadAllTextAsync(baselineFilePath);
+            string output = await File.ReadAllTextAsync(outputFilePath);
+
+            Assert.That(output, Is.EqualTo(baseline), $"The output doesn't match the baseline. Expected {Environment.NewLine} {baseline} {Environment.NewLine} Actual {Environment.NewLine} {output}");
+
+            // Remove the file
+            if (File.Exists(outputFilePath))
+            {
+                File.Delete(outputFilePath);
+            }
+        }
+
         /// <summary>
         /// Verify expected and actual DeploymentOptions BooleanOptionsDictionary values
         /// </summary>
diff --git a/test/Microsoft.SqlTools.ServiceLayer.IntegrationTests/DacFx/PublishProfiles/validateSavePublishProfile.publish.xml b/test/Microsoft.SqlTools.ServiceLayer.IntegrationTests/DacFx/PublishProfiles/validateSavePublishProfile.publish.xml
new file mode 100644
index 00000000..1d000656
--- /dev/null
+++ b/test/Microsoft.SqlTools.ServiceLayer.IntegrationTests/DacFx/PublishProfiles/validateSavePublishProfile.publish.xml
@@ -0,0 +1,13 @@
+<?xml version="1.0" encoding="utf-8"?>
+<Project ToolsVersion="15.0" xmlns="http://schemas.microsoft.com/developer/msbuild/2003">
+  <PropertyGroup>
+    <TargetDatabaseName>testDb</TargetDatabaseName>
+    <TargetConnectionString>testConnString</TargetConnectionString>
+    <ProfileVersionNumber>1</ProfileVersionNumber>
+  </PropertyGroup>
+  <ItemGroup>
+    <SqlCmdVariable Include="testvar">
+      <Value>testval</Value>
+    </SqlCmdVariable>
+  </ItemGroup>
+</Project>
\ No newline at end of file