diff --git a/src/fmeval/eval_algorithms/util.py b/src/fmeval/eval_algorithms/util.py
index f7bde99e..0a0089d2 100644
--- a/src/fmeval/eval_algorithms/util.py
+++ b/src/fmeval/eval_algorithms/util.py
@@ -140,6 +140,23 @@ def validate_dataset(dataset: Dataset, column_names: List[str]):
         )
 
 
+def validate_prompt_template(prompt_template: str, placeholders: List[str]):
+    """
+    Util function to validate that prompt_template contains the keywords.
+
+    :param prompt_template: A template used to compose prompts. Ex: '{"Question":$question, "Answer": $answer}'
+    :param placeholders: Placeholder keyword list. This keyword appears
+            in `prompt_template` with a $ sign prepended. In the above example,
+            the placeholders are ["question", "answer"].
+    :raises: EvalAlgorithmClientError for an invalid prompt_template
+    """
+    for placeholder in placeholders:
+        util.require(
+            f"${placeholder}" in prompt_template,
+            f"Unable to find placeholder ${placeholder} in prompt_template.",
+        )
+
+
 def aggregate_evaluation_scores(
     dataset: Dataset, score_column_names: List[str], agg_method: str
 ) -> Tuple[List[EvalScore], Optional[List[CategoryScore]]]:
diff --git a/test/unit/eval_algorithms/test_util.py b/test/unit/eval_algorithms/test_util.py
index 85bb7b04..df8d8ba4 100644
--- a/test/unit/eval_algorithms/test_util.py
+++ b/test/unit/eval_algorithms/test_util.py
@@ -1,6 +1,7 @@
 import json
 import multiprocessing as mp
 import os
+import re
 
 import numpy as np
 import pandas as pd
@@ -51,8 +52,9 @@
     get_dataset_configs,
     aggregate_evaluation_scores,
     create_model_invocation_pipeline,
+    validate_prompt_template,
 )
-from fmeval.exceptions import EvalAlgorithmInternalError
+from fmeval.exceptions import EvalAlgorithmInternalError, EvalAlgorithmClientError
 from fmeval.transforms.common import GeneratePrompt, GetModelOutputs
 from fmeval.util import camel_to_snake, get_num_actors
 
@@ -287,6 +289,29 @@ def test_generate_prompt_column_for_dataset(test_case):
     assert sorted(returned_dataset.take(test_case.num_rows), key=lambda x: x["id"]) == test_case.expected_dataset
 
 
+def test_validate_prompt_template_success():
+    """
+    GIVEN a prompt_template and required placeholder keywords
+    WHEN validate_prompt_template is called
+    THEN no exception is raised
+    """
+    validate_prompt_template(
+        prompt_template='{"Question":$question, "Answer": $answer}', placeholders=["question", "answer"]
+    )
+
+
+def test_validate_prompt_template_raise_error():
+    """
+    GIVEN placeholder keywords and a prompt_template doesn't contain required placeholder
+    WHEN validate_prompt_template is called
+    THEN raise EvalAlgorithmClientError with correct error message
+    """
+    with pytest.raises(EvalAlgorithmClientError, match=re.escape("Unable to find placeholder")):
+        validate_prompt_template(
+            prompt_template='{"Question":$question, "Answer": $answer}', placeholders=["model_input"]
+        )
+
+
 @patch("ray.data.ActorPoolStrategy")
 @patch("ray.data.Dataset")
 def test_num_actors_in_generate_prompt_column_for_dataset(dataset, actor_pool_strategy):