diff --git a/bitwarden_license/src/Sso/IdentityServer/DistributedCachePersistedGrantStore.cs b/bitwarden_license/src/Sso/IdentityServer/DistributedCachePersistedGrantStore.cs
new file mode 100644
index 000000000000..ecb2f36cece0
--- /dev/null
+++ b/bitwarden_license/src/Sso/IdentityServer/DistributedCachePersistedGrantStore.cs
@@ -0,0 +1,102 @@
+using Bit.Sso.Utilities;
+using Duende.IdentityServer.Models;
+using Duende.IdentityServer.Stores;
+using ZiggyCreatures.Caching.Fusion;
+
+namespace Bit.Sso.IdentityServer;
+
+/// <summary>
+/// Distributed cache-backed persisted grant store for short-lived grants.
+/// Uses IFusionCache (which wraps IDistributedCache) for horizontal scaling support,
+/// and fall back to in-memory caching if Redis is not configured.
+/// Designed for SSO authorization codes which are short-lived (5 minutes) and single-use.
+/// </summary>
+/// <remarks>
+/// This is purposefully a different implementation from how Identity solves Persisted Grants.
+/// Because even flavored grant store, e.g., AuthorizationCodeGrantStore, can add intermediary
+/// logic to a grant's handling by type, the fact that they all wrap IdentityServer's IPersistedGrantStore
+/// leans on IdentityServer's opinion that all grants, regardless of type, go to the same persistence
+/// mechanism (cache, database).
+/// <seealso href="https://docs.duendesoftware.com/identityserver/reference/stores/persisted-grant-store/"/>
+/// </remarks>
+public class DistributedCachePersistedGrantStore : IPersistedGrantStore
+{
+    private readonly IFusionCache _cache;
+
+    public DistributedCachePersistedGrantStore(
+        [FromKeyedServices(PersistedGrantsDistributedCacheConstants.CacheKey)] IFusionCache cache)
+    {
+        _cache = cache;
+    }
+
+    public async Task<PersistedGrant?> GetAsync(string key)
+    {
+        var result = await _cache.TryGetAsync<PersistedGrant>(key);
+
+        if (!result.HasValue)
+        {
+            return null;
+        }
+
+        var grant = result.Value;
+
+        // Check if grant has expired - remove expired grants from cache
+        if (grant.Expiration.HasValue && grant.Expiration.Value < DateTime.UtcNow)
+        {
+            await RemoveAsync(key);
+            return null;
+        }
+
+        return grant;
+    }
+
+    public Task<IEnumerable<PersistedGrant>> GetAllAsync(PersistedGrantFilter filter)
+    {
+        // Cache stores are key-value based and don't support querying by filter criteria.
+        // This method is typically used for cleanup operations on long-lived grants in databases.
+        // For SSO's short-lived authorization codes, we rely on TTL expiration instead.
+
+        return Task.FromResult(Enumerable.Empty<PersistedGrant>());
+    }
+
+    public Task RemoveAllAsync(PersistedGrantFilter filter)
+    {
+        // Revocation Strategy: SSO's logout flow (AccountController.LogoutAsync) only clears local
+        // authentication cookies and performs federated logout with external IdPs. It does not invoke
+        // Duende's EndSession or TokenRevocation endpoints. Authorization codes are single-use and expire
+        // within 5 minutes, making explicit revocation unnecessary for SSO's security model.
+        // https://docs.duendesoftware.com/identityserver/reference/stores/persisted-grant-store/
+
+        // Cache stores are key-value based and don't support bulk deletion by filter.
+        // This method is typically used for cleanup operations on long-lived grants in databases.
+        // For SSO's short-lived authorization codes, we rely on TTL expiration instead.
+
+        return Task.FromResult(0);
+    }
+
+    public async Task RemoveAsync(string key)
+    {
+        await _cache.RemoveAsync(key);
+    }
+
+    public async Task StoreAsync(PersistedGrant grant)
+    {
+        // Calculate TTL based on grant expiration
+        var duration = grant.Expiration.HasValue
+            ? grant.Expiration.Value - DateTime.UtcNow
+            : TimeSpan.FromMinutes(5); // Default to 5 minutes if no expiration set
+
+        // Ensure positive duration
+        if (duration <= TimeSpan.Zero)
+        {
+            return;
+        }
+
+        // Cache key "sso-grants:" is configured by service registration. Going through the consumed KeyedService will
+        // give us a consistent cache key prefix for these grants.
+        await _cache.SetAsync(
+            grant.Key,
+            grant,
+            new FusionCacheEntryOptions { Duration = duration });
+    }
+}
diff --git a/bitwarden_license/src/Sso/Utilities/PersistedGrantsDistributedCacheConstants.cs b/bitwarden_license/src/Sso/Utilities/PersistedGrantsDistributedCacheConstants.cs
new file mode 100644
index 000000000000..3ec45377e3d8
--- /dev/null
+++ b/bitwarden_license/src/Sso/Utilities/PersistedGrantsDistributedCacheConstants.cs
@@ -0,0 +1,10 @@
+namespace Bit.Sso.Utilities;
+
+public static class PersistedGrantsDistributedCacheConstants
+{
+    /// <summary>
+    /// The SSO Persisted Grant cache key. Identifies the keyed service consumed by the SSO Persisted Grant Store as
+    /// well as the cache key/namespace for grant storage.
+    /// </summary>
+    public const string CacheKey = "sso-grants";
+}
diff --git a/bitwarden_license/src/Sso/Utilities/ServiceCollectionExtensions.cs b/bitwarden_license/src/Sso/Utilities/ServiceCollectionExtensions.cs
index a51a04f5c85b..da7a79535ea2 100644
--- a/bitwarden_license/src/Sso/Utilities/ServiceCollectionExtensions.cs
+++ b/bitwarden_license/src/Sso/Utilities/ServiceCollectionExtensions.cs
@@ -9,6 +9,7 @@
 using Bit.Sso.Models;
 using Duende.IdentityServer.Models;
 using Duende.IdentityServer.ResponseHandling;
+using Duende.IdentityServer.Stores;
 using Microsoft.AspNetCore.Authentication.OpenIdConnect;
 using Sustainsys.Saml2.AspNetCore2;
 
@@ -77,6 +78,17 @@ public static IIdentityServerBuilder AddSsoIdentityServerServices(this IServiceC
             })
             .AddIdentityServerCertificate(env, globalSettings);
 
+        // PM-23572
+        // Register named FusionCache for SSO authorization code grants.
+        // Provides separation of concerns and automatic Redis/in-memory negotiation
+        // .AddInMemoryCaching should still persist above; this handles configuration caching, etc.,
+        // and is separate from this keyed service, which only serves grant negotiation.
+        services.AddExtendedCache(PersistedGrantsDistributedCacheConstants.CacheKey, globalSettings);
+
+        // Store authorization codes in distributed cache for horizontal scaling
+        // Uses named FusionCache which gracefully degrades to in-memory when Redis isn't configured
+        services.AddSingleton<IPersistedGrantStore, DistributedCachePersistedGrantStore>();
+
         return identityServerBuilder;
     }
 }
diff --git a/bitwarden_license/test/SSO.Test/IdentityServer/DistributedCachePersistedGrantStoreTests.cs b/bitwarden_license/test/SSO.Test/IdentityServer/DistributedCachePersistedGrantStoreTests.cs
new file mode 100644
index 000000000000..c0aa93f0683f
--- /dev/null
+++ b/bitwarden_license/test/SSO.Test/IdentityServer/DistributedCachePersistedGrantStoreTests.cs
@@ -0,0 +1,257 @@
+using Bit.Sso.IdentityServer;
+using Duende.IdentityServer.Models;
+using Duende.IdentityServer.Stores;
+using NSubstitute;
+using ZiggyCreatures.Caching.Fusion;
+
+namespace Bit.SSO.Test.IdentityServer;
+
+public class DistributedCachePersistedGrantStoreTests
+{
+    private readonly IFusionCache _cache;
+    private readonly DistributedCachePersistedGrantStore _sut;
+
+    public DistributedCachePersistedGrantStoreTests()
+    {
+        _cache = Substitute.For<IFusionCache>();
+        _sut = new DistributedCachePersistedGrantStore(_cache);
+    }
+
+    [Fact]
+    public async Task StoreAsync_StoresGrantWithCalculatedTTL()
+    {
+        // Arrange
+        var grant = CreateTestGrant("test-key", expiration: DateTime.UtcNow.AddMinutes(5));
+
+        // Act
+        await _sut.StoreAsync(grant);
+
+        // Assert
+        await _cache.Received(1).SetAsync(
+            "test-key",
+            grant,
+            Arg.Is<FusionCacheEntryOptions>(opts =>
+                opts.Duration >= TimeSpan.FromMinutes(4.9) &&
+                opts.Duration <= TimeSpan.FromMinutes(5)));
+    }
+
+    [Fact]
+    public async Task StoreAsync_WithNoExpiration_UsesDefaultFiveMinuteTTL()
+    {
+        // Arrange
+        var grant = CreateTestGrant("no-expiry-key", expiration: null);
+
+        // Act
+        await _sut.StoreAsync(grant);
+
+        // Assert
+        await _cache.Received(1).SetAsync(
+            "no-expiry-key",
+            grant,
+            Arg.Is<FusionCacheEntryOptions>(opts => opts.Duration == TimeSpan.FromMinutes(5)));
+    }
+
+    [Fact]
+    public async Task StoreAsync_WithAlreadyExpiredGrant_DoesNotStore()
+    {
+        // Arrange
+        var expiredGrant = CreateTestGrant("expired-key", expiration: DateTime.UtcNow.AddMinutes(-1));
+
+        // Act
+        await _sut.StoreAsync(expiredGrant);
+
+        // Assert
+        await _cache.DidNotReceive().SetAsync(
+            Arg.Any<string>(),
+            Arg.Any<PersistedGrant>(),
+            Arg.Any<FusionCacheEntryOptions?>());
+    }
+
+    [Fact]
+    public async Task StoreAsync_EnablesDistributedCache()
+    {
+        // Arrange
+        var grant = CreateTestGrant("distributed-key", expiration: DateTime.UtcNow.AddMinutes(5));
+
+        // Act
+        await _sut.StoreAsync(grant);
+
+        // Assert
+        await _cache.Received(1).SetAsync(
+            "distributed-key",
+            grant,
+            Arg.Is<FusionCacheEntryOptions>(opts =>
+                opts.SkipDistributedCache == false &&
+                opts.SkipDistributedCacheReadWhenStale == false));
+    }
+
+    [Fact]
+    public async Task GetAsync_WithValidGrant_ReturnsGrant()
+    {
+        // Arrange
+        var grant = CreateTestGrant("valid-key", expiration: DateTime.UtcNow.AddMinutes(5));
+        _cache.TryGetAsync<PersistedGrant>("valid-key")
+            .Returns(MaybeValue<PersistedGrant>.FromValue(grant));
+
+        // Act
+        var result = await _sut.GetAsync("valid-key");
+
+        // Assert
+        Assert.NotNull(result);
+        Assert.Equal("valid-key", result.Key);
+        Assert.Equal("authorization_code", result.Type);
+        Assert.Equal("test-subject", result.SubjectId);
+        await _cache.DidNotReceive().RemoveAsync(Arg.Any<string>());
+    }
+
+    [Fact]
+    public async Task GetAsync_WithNonExistentKey_ReturnsNull()
+    {
+        // Arrange
+        _cache.TryGetAsync<PersistedGrant>("nonexistent-key")
+            .Returns(MaybeValue<PersistedGrant>.None);
+
+        // Act
+        var result = await _sut.GetAsync("nonexistent-key");
+
+        // Assert
+        Assert.Null(result);
+        await _cache.DidNotReceive().RemoveAsync(Arg.Any<string>());
+    }
+
+    [Fact]
+    public async Task GetAsync_WithExpiredGrant_RemovesAndReturnsNull()
+    {
+        // Arrange
+        var expiredGrant = CreateTestGrant("expired-key", expiration: DateTime.UtcNow.AddMinutes(-1));
+        _cache.TryGetAsync<PersistedGrant>("expired-key")
+            .Returns(MaybeValue<PersistedGrant>.FromValue(expiredGrant));
+
+        // Act
+        var result = await _sut.GetAsync("expired-key");
+
+        // Assert
+        Assert.Null(result);
+        await _cache.Received(1).RemoveAsync("expired-key");
+    }
+
+    [Fact]
+    public async Task GetAsync_WithNoExpiration_ReturnsGrant()
+    {
+        // Arrange
+        var grant = CreateTestGrant("no-expiry-key", expiration: null);
+        _cache.TryGetAsync<PersistedGrant>("no-expiry-key")
+            .Returns(MaybeValue<PersistedGrant>.FromValue(grant));
+
+        // Act
+        var result = await _sut.GetAsync("no-expiry-key");
+
+        // Assert
+        Assert.NotNull(result);
+        Assert.Equal("no-expiry-key", result.Key);
+        Assert.Null(result.Expiration);
+        await _cache.DidNotReceive().RemoveAsync(Arg.Any<string>());
+    }
+
+    [Fact]
+    public async Task RemoveAsync_RemovesGrantFromCache()
+    {
+        // Act
+        await _sut.RemoveAsync("remove-key");
+
+        // Assert
+        await _cache.Received(1).RemoveAsync("remove-key");
+    }
+
+    [Fact]
+    public async Task GetAllAsync_ReturnsEmptyCollection()
+    {
+        // Arrange
+        var filter = new PersistedGrantFilter
+        {
+            SubjectId = "test-subject",
+            SessionId = "test-session",
+            ClientId = "test-client",
+            Type = "authorization_code"
+        };
+
+        // Act
+        var result = await _sut.GetAllAsync(filter);
+
+        // Assert
+        Assert.NotNull(result);
+        Assert.Empty(result);
+    }
+
+    [Fact]
+    public async Task RemoveAllAsync_CompletesWithoutError()
+    {
+        // Arrange
+        var filter = new PersistedGrantFilter
+        {
+            SubjectId = "test-subject",
+            ClientId = "test-client"
+        };
+
+        // Act & Assert - should not throw
+        await _sut.RemoveAllAsync(filter);
+
+        // Verify no cache operations were performed
+        await _cache.DidNotReceive().RemoveAsync(Arg.Any<string>());
+    }
+
+    [Fact]
+    public async Task StoreAsync_PreservesAllGrantProperties()
+    {
+        // Arrange
+        var grant = new PersistedGrant
+        {
+            Key = "full-grant-key",
+            Type = "authorization_code",
+            SubjectId = "user-123",
+            SessionId = "session-456",
+            ClientId = "client-789",
+            Description = "Test grant",
+            CreationTime = DateTime.UtcNow.AddMinutes(-1),
+            Expiration = DateTime.UtcNow.AddMinutes(5),
+            ConsumedTime = null,
+            Data = "{\"test\":\"data\"}"
+        };
+
+        PersistedGrant? capturedGrant = null;
+        await _cache.SetAsync(
+            Arg.Any<string>(),
+            Arg.Do<PersistedGrant>(g => capturedGrant = g),
+            Arg.Any<FusionCacheEntryOptions?>());
+
+        // Act
+        await _sut.StoreAsync(grant);
+
+        // Assert
+        Assert.NotNull(capturedGrant);
+        Assert.Equal(grant.Key, capturedGrant.Key);
+        Assert.Equal(grant.Type, capturedGrant.Type);
+        Assert.Equal(grant.SubjectId, capturedGrant.SubjectId);
+        Assert.Equal(grant.SessionId, capturedGrant.SessionId);
+        Assert.Equal(grant.ClientId, capturedGrant.ClientId);
+        Assert.Equal(grant.Description, capturedGrant.Description);
+        Assert.Equal(grant.CreationTime, capturedGrant.CreationTime);
+        Assert.Equal(grant.Expiration, capturedGrant.Expiration);
+        Assert.Equal(grant.ConsumedTime, capturedGrant.ConsumedTime);
+        Assert.Equal(grant.Data, capturedGrant.Data);
+    }
+
+    private static PersistedGrant CreateTestGrant(string key, DateTime? expiration)
+    {
+        return new PersistedGrant
+        {
+            Key = key,
+            Type = "authorization_code",
+            SubjectId = "test-subject",
+            ClientId = "test-client",
+            CreationTime = DateTime.UtcNow,
+            Expiration = expiration,
+            Data = "{\"test\":\"data\"}"
+        };
+    }
+}