diff --git a/src/test/java/com/razorpay/UtilsNegativeTest.java b/src/test/java/com/razorpay/UtilsNegativeTest.java
new file mode 100644
index 00000000..7da7fe18
--- /dev/null
+++ b/src/test/java/com/razorpay/UtilsNegativeTest.java
@@ -0,0 +1,79 @@
+package com.razorpay;
+
+import org.junit.Test;
+
+import javax.crypto.Mac;
+import javax.crypto.spec.SecretKeySpec;
+
+import static org.junit.Assert.*;
+
+public class UtilsNegativeTest {
+
+    private static final String WEBHOOK_PAYLOAD = "{\"event\":\"payment.authorized\"}";
+    private static final String WEBHOOK_SECRET = "test_webhook_secret";
+
+    private String computeSignature(String payload, String secret) throws Exception {
+        Mac sha256_HMAC = Mac.getInstance("HmacSHA256");
+        SecretKeySpec secretKey = new SecretKeySpec(secret.getBytes("UTF-8"), "HmacSHA256");
+        sha256_HMAC.init(secretKey);
+        byte[] hash = sha256_HMAC.doFinal(payload.getBytes("UTF-8"));
+        StringBuilder hexString = new StringBuilder();
+        for (byte b : hash) {
+            String hex = Integer.toHexString(0xff & b);
+            if (hex.length() == 1) hexString.append('0');
+            hexString.append(hex);
+        }
+        return hexString.toString();
+    }
+
+    @Test
+    public void testEmptySignatureRejected() throws RazorpayException {
+        boolean result = Utils.verifyWebhookSignature(WEBHOOK_PAYLOAD, "", WEBHOOK_SECRET);
+        assertFalse("Empty signature should be rejected", result);
+    }
+
+    @Test
+    public void testMismatchedSignatureRejected() throws RazorpayException {
+        // Short string that doesn't match the computed HMAC
+        boolean result = Utils.verifyWebhookSignature(WEBHOOK_PAYLOAD, "abc123", WEBHOOK_SECRET);
+        assertFalse("Mismatched signature should be rejected", result);
+    }
+
+    @Test
+    public void testWrongValueSignatureRejected() throws RazorpayException {
+        // 64-char string with invalid chars - rejected because value doesn't match, not because of hex validation
+        String wrongSig = new String(new char[64]).replace('\0', 'z');
+        boolean result = Utils.verifyWebhookSignature(WEBHOOK_PAYLOAD, wrongSig, WEBHOOK_SECRET);
+        assertFalse("Wrong value signature should be rejected", result);
+    }
+
+    @Test
+    public void testTamperedValidHexSignatureRejected() throws RazorpayException {
+        String tamperedSig = new String(new char[64]).replace('\0', 'a');
+        boolean result = Utils.verifyWebhookSignature(WEBHOOK_PAYLOAD, tamperedSig, WEBHOOK_SECRET);
+        assertFalse("Tampered signature should be rejected", result);
+    }
+
+    @Test
+    public void testValidDynamicSignatureAccepted() throws Exception {
+        String validSig = computeSignature(WEBHOOK_PAYLOAD, WEBHOOK_SECRET);
+        boolean result = Utils.verifyWebhookSignature(WEBHOOK_PAYLOAD, validSig, WEBHOOK_SECRET);
+        assertTrue("Valid signature should be accepted", result);
+    }
+
+    @Test
+    public void testSpecialCharsInPayload() throws Exception {
+        String specialPayload = "{\"event\":\"payment\",\"data\":{\"notes\":\"Test & <script>alert(1)</script>\"}}";
+        String validSig = computeSignature(specialPayload, WEBHOOK_SECRET);
+        boolean result = Utils.verifyWebhookSignature(specialPayload, validSig, WEBHOOK_SECRET);
+        assertTrue("Special chars payload should verify", result);
+    }
+
+    @Test
+    public void testUnicodeInPayload() throws Exception {
+        String unicodePayload = "{\"event\":\"payment\",\"data\":{\"name\":\"日本語テスト\"}}";
+        String validSig = computeSignature(unicodePayload, WEBHOOK_SECRET);
+        boolean result = Utils.verifyWebhookSignature(unicodePayload, validSig, WEBHOOK_SECRET);
+        assertTrue("Unicode payload should verify", result);
+    }
+}