diff --git a/modules/pubmaticBidAdapter.js b/modules/pubmaticBidAdapter.js
index 6297bd7c066..eb2ad8ccb03 100644
--- a/modules/pubmaticBidAdapter.js
+++ b/modules/pubmaticBidAdapter.js
@@ -630,7 +630,7 @@ function _addJWPlayerSegmentData(imp, bid) {
   ext && ext.key_val === undefined ? ext.key_val = jwPlayerData : ext.key_val += '|' + jwPlayerData;
 }
 
-function _createImpressionObject(bid) {
+function _createImpressionObject(bid, bidderRequest) {
   var impObj = {};
   var bannerObj;
   var videoObj;
@@ -638,6 +638,7 @@ function _createImpressionObject(bid) {
   var sizes = bid.hasOwnProperty('sizes') ? bid.sizes : [];
   var mediaTypes = '';
   var format = [];
+  var isFledgeEnabled = bidderRequest?.fledgeEnabled;
 
   impObj = {
     id: bid.bidId,
@@ -708,11 +709,26 @@ function _createImpressionObject(bid) {
 
   _addFloorFromFloorModule(impObj, bid);
 
+  _addFledgeflag(impObj, bid, isFledgeEnabled)
+
   return impObj.hasOwnProperty(BANNER) ||
           impObj.hasOwnProperty(NATIVE) ||
           (FEATURES.VIDEO && impObj.hasOwnProperty(VIDEO)) ? impObj : UNDEFINED;
 }
 
+function _addFledgeflag(impObj, bid, isFledgeEnabled) {
+  if (isFledgeEnabled) {
+    impObj.ext = impObj.ext || {};
+    if (bid?.ortb2Imp?.ext?.ae !== undefined) {
+      impObj.ext.ae = bid.ortb2Imp.ext.ae;
+    }
+  } else {
+    if (impObj.ext?.ae) {
+      delete impObj.ext.ae;
+    }
+  }
+}
+
 function _addImpressionFPD(imp, bid) {
   const ortb2 = {...deepAccess(bid, 'ortb2Imp.ext.data')};
   Object.keys(ortb2).forEach(prop => {
@@ -1095,7 +1111,7 @@ export const spec = {
       if (bid.params.hasOwnProperty('acat') && isArray(bid.params.acat)) {
         allowedIabCategories = allowedIabCategories.concat(bid.params.acat);
       }
-      var impObj = _createImpressionObject(bid);
+      var impObj = _createImpressionObject(bid, bidderRequest);
       if (impObj) {
         payload.imp.push(impObj);
       }
diff --git a/test/spec/modules/pubmaticBidAdapter_spec.js b/test/spec/modules/pubmaticBidAdapter_spec.js
index 12805c7786d..5d8d762e793 100644
--- a/test/spec/modules/pubmaticBidAdapter_spec.js
+++ b/test/spec/modules/pubmaticBidAdapter_spec.js
@@ -3056,6 +3056,31 @@ describe('PubMatic adapter', function () {
           expect(data.imp[0]['video']['h']).to.equal(videoBidRequests[0].mediaTypes.video.playerSize[1]);
         });
       }
+
+      describe('Fledge', function() {
+        it('should not send imp.ext.ae when FLEDGE is disabled, ', function () {
+          let bidRequest = Object.assign([], bidRequests);
+          bidRequest[0].ortb2Imp = {
+            ext: { ae: 1 }
+          };
+          const req = spec.buildRequests(bidRequest, { ...bidRequest, fledgeEnabled: false });
+          let data = JSON.parse(req.data);
+          if (data.imp[0].ext) {
+            expect(data.imp[0].ext).to.not.have.property('ae');
+          }
+        });
+
+        it('when FLEDGE is enabled, should send whatever is set in ortb2imp.ext.ae in all bid requests', function () {
+          let bidRequest = Object.assign([], bidRequests);
+          delete bidRequest[0].params.test;
+          bidRequest[0].ortb2Imp = {
+            ext: { ae: 1 }
+          };
+          const req = spec.buildRequests(bidRequest, { ...bidRequest, fledgeEnabled: true });
+          let data = JSON.parse(req.data);
+          expect(data.imp[0].ext.ae).to.equal(1);
+        });
+      });
   	});
 
     it('Request params dctr check', function () {