diff --git a/kedro-datasets/kedro_datasets/api/api_dataset.py b/kedro-datasets/kedro_datasets/api/api_dataset.py
index fe061e0af..5e5cdfade 100644
--- a/kedro-datasets/kedro_datasets/api/api_dataset.py
+++ b/kedro-datasets/kedro_datasets/api/api_dataset.py
@@ -3,15 +3,20 @@
 """
 from __future__ import annotations
 
-import json as json_  # make pylint happy
 from copy import deepcopy
-from typing import Any
+from typing import Any, Type
 
 import requests
 from kedro.io.core import AbstractDataset, DatasetError
+from kedro.io.memory_dataset import MemoryDataset
 from requests import Session, sessions
 from requests.auth import AuthBase
 
+import json as json_  # make pylint happy
+from kedro_datasets.json import JSONDataset
+from kedro_datasets.pickle.pickle_dataset import PickleDataset
+from kedro_datasets.text import TextDataset
+
 
 class APIDataset(AbstractDataset[None, requests.Response]):
     """``APIDataset`` loads/saves data from/to HTTP(S) APIs.
@@ -97,6 +102,8 @@ def __init__(  # noqa: PLR0913
         save_args: dict[str, Any] | None = None,
         credentials: tuple[str, str] | list[str] | AuthBase | None = None,
         metadata: dict[str, Any] | None = None,
+        extension: str | None = None,
+        wrapped_dataset: dict[str, Any] | None = None,
     ) -> None:
         """Creates a new instance of ``APIDataset`` to fetch data from an API endpoint.
 
@@ -155,6 +162,9 @@ def __init__(  # noqa: PLR0913
         }
 
         self.metadata = metadata
+        self._extension = extension
+        self._wrapped_dataset_args = wrapped_dataset
+        self._wrapped_dataset = None
 
     @staticmethod
     def _convert_type(value: Any):
@@ -171,6 +181,8 @@ def _describe(self) -> dict[str, Any]:
         # prevent auth from logging
         request_args_cp = self._request_args.copy()
         request_args_cp.pop("auth", None)
+        if self._extension:
+            request_args_cp["wrapped_dataset"] = self.wrapped_dataset._describe()
         return request_args_cp
 
     def _execute_request(self, session: Session) -> requests.Response:
@@ -184,10 +196,12 @@ def _execute_request(self, session: Session) -> requests.Response:
 
         return response
 
-    def load(self) -> requests.Response:
+    def load(self) -> requests.Response | str | Any:
         if self._request_args["method"] == "GET":
             with sessions.Session() as session:
                 return self._execute_request(session)
+        elif self._request_args["method"] in ["PUT", "POST"] and self.wrapped_dataset is not None:
+            return self.wrapped_dataset.load()
 
         raise DatasetError("Only GET method is supported for load")
 
@@ -222,9 +236,19 @@ def _execute_save_request(self, json_data: Any) -> requests.Response:
     def save(self, data: Any) -> requests.Response:  # type: ignore[override]
         if self._request_args["method"] in ["PUT", "POST"]:
             if isinstance(data, list):
-                return self._execute_save_with_chunks(json_data=data)
-
-            return self._execute_save_request(json_data=data)
+                response: requests.Response = self._execute_save_with_chunks(json_data=data)
+            else:
+                response: requests.Response = self._execute_save_request(json_data=data)
+
+            if self._wrapped_dataset is None:
+                return response
+            if self._extension == "json":
+                self.wrapped_dataset.save(response.json()) #TODO(npfp): expose json loads arguments
+            elif self._extension == "text":
+                self.wrapped_dataset.save(response.text)
+            elif self._extension:
+                self.wrapped_dataset.save(response)
+            return response
 
         raise DatasetError("Use PUT or POST methods for save")
 
@@ -232,3 +256,32 @@ def _exists(self) -> bool:
         with sessions.Session() as session:
             response = self._execute_request(session)
         return response.ok
+
+    @property
+    def _nested_dataset_type(
+        self,
+    ) -> Type[JSONDataset | PickleDataset | MemoryDataset]:
+        if self._extension == "json":
+            return JSONDataset
+        elif self._extension == "text":
+            return TextDataset
+        elif self._extension == "pickle":
+            return PickleDataset
+        elif self._extension == "memory":
+            #I'm not sure we need this
+            return MemoryDataset
+        else:
+            raise DatasetError(
+                f"Unknown extension for WrappedDataset: {self._extension}"
+            )
+
+    @property
+    def wrapped_dataset(
+        self,
+    ) -> JSONDataset | PickleDataset | MemoryDataset | None:
+        """The wrapped dataset where response data is stored."""
+        if self._wrapped_dataset is None and self._extension is not None:
+            self._wrapped_dataset = self._nested_dataset_type(
+                **self._wrapped_dataset_args
+            )
+        return self._wrapped_dataset