diff --git a/README.md b/README.md
index 7397862..c67a657 100644
--- a/README.md
+++ b/README.md
@@ -87,7 +87,7 @@ Now you can extend the build process explicitly calling additional tasks during
         <AssemblyName>Some.Solution</AssemblyName>
     </PropertyGroup>
     <ItemGroup>
-        <PackageReference Include="TALXIS.SDK.BuildTargets.Dataverse.Tasks" Version="0.*" />
+        <PackageReference Include="TALXIS.DevKit.Build.Dataverse.Tasks" Version="0.*" />
         <!-- Add other project references like plugins, PCFs and scripts here...
         <ProjectReference Include="..\something_else\dependency.csproj" />
          -->
@@ -103,6 +103,7 @@ Now you can extend the build process explicitly calling additional tasks during
 
     <Target Name="BuildDataverseSolution" BeforeTargets="Build" Condition="Exists('$(ProjectDir)$(SolutionRootPath)\Other\Solution.xml')">
         <CallTarget Targets="ValidateSolutionComponentSchema"/>
+        <CallTarget Targets="ValidateConnectionReferences"/>
         <CallTarget Targets="GenerateVersionNumber"/>
         <CallTarget Targets="ApplyVersionNumber"/>
     </Target>
@@ -113,38 +114,75 @@ Now you can extend the build process explicitly calling additional tasks during
 
 We are happy to collaborate with developers and contributors interested in enhancing Power Platform development processes. If you have feedback, suggestions, or would like to contribute, please feel free to submit issues or pull requests.
 
-### Local building and debugging
+### Local debugging
 
-#### Package project
+#### Set up a testing project
 
-Run the following terminal command in the folder `MSBuildTasks`:
+Execute the following commands in PowerShell in a new folder outside of this repo to set up a testing project.
 
-```
-dotnet pack --configuration Release
-```
+```powershell
+# Initialize a VS solution file
+dotnet new sln --name Test
 
-#### Consuming project
+# Instal Power Platform .NET templates
+dotnet new install TALXIS.DevKit.Templates.Dataverse
 
-Add `nuget.config` file to your Dataverse solution project folder:
+# Create a Dataverse solution project
+dotnet new pp-solution `
+--output "src/Solutions.Test" `
+--PublisherName "publisher" `
+--PublisherPrefix "pub" `
+--allow-scripts yes
 
-```xml
+$csprojFilePath = "src/Solutions.Test/Solutions.Test.cdsproj"
+$appendContent = @"
+  <ItemGroup>
+    <PackageReference Include="TALXIS.DevKit.Build.Dataverse.Tasks" Version="0.*" />
+  </ItemGroup>
+  <PropertyGroup>
+    <SolutionRootPath>Declarations</SolutionRootPath>
+  </PropertyGroup>
+  <Target Name="BuildDataverseSolution" BeforeTargets="Build">
+    <CallTarget Targets="ValidateConnectionReferences"/>
+  </Target>
+"@
+
+# Read the existing .cdsproj content
+$csprojContent = Get-Content $csprojFilePath
+
+# Append the content inside the <Project> element
+$csprojContent = $csprojContent -replace '(</Project>)', "$appendContent`n`$1"
+
+# Write the updated content back to the .csproj file
+Set-Content -Path $csprojFilePath -Value $csprojContent
+```
+#### Build and pack the NuGet package with targets
+```powershell
+# !!! Replace with actual talxis/tools-devkit-build repository path
+$repoPath = "/Users/tomasprokop/Desktop/Repos/msbuild-devkit-connrefs/tools-devkit-build"  
+
+# Build and pack the NuGet package
+dotnet pack "$repoPath/src/Dataverse/MSBuildTasks" --configuration Release
+```
+#### Configure NuGet to use the local version of the package
+```powershell
+# Add `nuget.config` file which will point to the locally built .nupkg
+@"
 <configuration>
   <packageSources>
-    <!-- package source is additive -->
-    <add key="LocalBuildTasks" value="/{REPOSITORY PATH}/src/MSBuildTasks/bin/Release/" />
+    <add key="LocalBuildTasks" value="$repoPath/src/Dataverse/MSBuildTasks/bin/Release/" />
   </packageSources>
 </configuration>
+"@ | Set-Content "nuget.config"
 ```
 
-Clear all cached packages:
-
-```
+#### Debug the build targets locally
+Use the following commands to when you want to test build with the local version of the NuGet package:
+```powershell
+# Clear all locally cached NuGet packages
 dotnet nuget locals --clear all
-```
 
-Rebuild the project:
-
-```
+# Rebuild the consuming project
 dotnet build --no-incremental --force
 ```
 
diff --git a/src/Dataverse/MSBuildTasks/TALXIS.DevKit.Build.Dataverse.Tasks.csproj b/src/Dataverse/MSBuildTasks/TALXIS.DevKit.Build.Dataverse.Tasks.csproj
index b140e4e..ca3d764 100644
--- a/src/Dataverse/MSBuildTasks/TALXIS.DevKit.Build.Dataverse.Tasks.csproj
+++ b/src/Dataverse/MSBuildTasks/TALXIS.DevKit.Build.Dataverse.Tasks.csproj
@@ -16,7 +16,7 @@
     <PackageReference Include="Microsoft.Build.Tasks.Core" Version="$(MicrosoftBuildTasksCoreVersion)" />
     <!-- <PackageReference Include="Microsoft.PowerApps.CLI.Core.osx-x64" Version="*" /> -->
     <PackageReference Include="Newtonsoft.Json.Schema" Version="3.0.15" />
-
+    <PackageReference Include="System.Text.Json" Version="5.0.2" />
     <!-- TODO: Package Deployer embedding WIP, for now we call PAC CLI -->
     <!-- <Reference Include="Microsoft.Xrm.Tooling.PackageDeployment.CrmPackageExtentionBase">
       <HintPath>$(PkgMicrosoft_PowerApps_CLI)\tools\Microsoft.Xrm.Tooling.PackageDeployment.CrmPackageExtentionBase.dll</HintPath>
diff --git a/src/Dataverse/MSBuildTasks/TALXIS.DevKit.Build.Dataverse.Tasks.nuspec b/src/Dataverse/MSBuildTasks/TALXIS.DevKit.Build.Dataverse.Tasks.nuspec
index 1152789..81e13f1 100644
--- a/src/Dataverse/MSBuildTasks/TALXIS.DevKit.Build.Dataverse.Tasks.nuspec
+++ b/src/Dataverse/MSBuildTasks/TALXIS.DevKit.Build.Dataverse.Tasks.nuspec
@@ -30,5 +30,6 @@
     <file src="bin\release\**\TALXIS.*" target="build/" />
     <file src="bin\release\**\System.IO.Packaging.dll" target="build/" />
     <file src="bin\release\**\Newtonsoft.Json.Schema.dll" target="build/" />
+    <file src="bin\release\**\System.Text.Json.dll" target="build/" />
   </files>
 </package>
\ No newline at end of file
diff --git a/src/Dataverse/MSBuildTasks/TALXIS.DevKit.Build.Dataverse.Tasks.tasks b/src/Dataverse/MSBuildTasks/TALXIS.DevKit.Build.Dataverse.Tasks.tasks
index ebd21e2..2179e6c 100644
--- a/src/Dataverse/MSBuildTasks/TALXIS.DevKit.Build.Dataverse.Tasks.tasks
+++ b/src/Dataverse/MSBuildTasks/TALXIS.DevKit.Build.Dataverse.Tasks.tasks
@@ -6,4 +6,5 @@
     <UsingTask TaskName="ValidateXmlFiles" AssemblyFile="$(TasksAssembly)"/>
     <UsingTask TaskName="ValidateJsonFiles" AssemblyFile="$(TasksAssembly)"/>
     <UsingTask TaskName="RetrieveProjectReferences" AssemblyFile="$(TasksAssembly)"/>
+    <UsingTask TaskName="ValidateConnectionReferences" AssemblyFile="$(TasksAssembly)"/>
 </Project>
\ No newline at end of file
diff --git a/src/Dataverse/MSBuildTasks/Targets/ValidateConnectionReferences.targets b/src/Dataverse/MSBuildTasks/Targets/ValidateConnectionReferences.targets
new file mode 100644
index 0000000..d9f4932
--- /dev/null
+++ b/src/Dataverse/MSBuildTasks/Targets/ValidateConnectionReferences.targets
@@ -0,0 +1,10 @@
+<Project>
+    <Target Name="ValidateConnectionReferences">
+        <PropertyGroup>
+            <ConnectionReferencesSolutionPath Condition="'$(ConnectionReferencesSolutionPath)' == ''">$(DataverseSolutionSourceFolderFullPath)</ConnectionReferencesSolutionPath>
+        </PropertyGroup>
+        <Message Text="Starting connection references validation ..." Importance="high" />  
+        <ValidateConnectionReferences ConnectionReferencesSolutionPath="$(ConnectionReferencesSolutionPath)" WorkflowDefinitions="@(Flows)" WorkflowMetadataFiles="@(WorkflowMetadataFiles)"/>
+        <Message Text="Connection references validation finished!" Importance="high" />
+    </Target>
+</Project>
\ No newline at end of file
diff --git a/src/Dataverse/MSBuildTasks/Tasks/ValidateConnectionReferences.cs b/src/Dataverse/MSBuildTasks/Tasks/ValidateConnectionReferences.cs
new file mode 100644
index 0000000..f8d4307
--- /dev/null
+++ b/src/Dataverse/MSBuildTasks/Tasks/ValidateConnectionReferences.cs
@@ -0,0 +1,132 @@
+using Microsoft.Build.Framework;
+using Microsoft.Build.Utilities;
+using System.Collections.Generic;
+using System.IO;
+using System.Linq;
+using System.Xml.Linq;
+using System.Text.Json;
+
+public class ValidateConnectionReferences : Task
+{
+    [Required]
+    public string ConnectionReferencesSolutionPath { get; set; } = string.Empty;
+
+    [Required]
+    public ITaskItem[] WorkflowDefinitions { get; set; }
+
+    [Required]
+    public ITaskItem[] WorkflowMetadataFiles { get; set; }
+
+    public override bool Execute()
+    {
+        List<string> errorMessages;
+
+        bool validationResult = ValidateAllFlowConnectionReferences(ConnectionReferencesSolutionPath, out errorMessages);
+
+        if (!validationResult)
+        {
+            foreach (var error in errorMessages)
+            {
+                Log.LogError(error);
+            }
+
+            Log.LogError("Connection reference validation failed. See output for details.");
+        }
+
+        return validationResult;
+    }
+
+    private bool ValidateAllFlowConnectionReferences(string connectionReferencesPath, out List<string> errorMessages)
+    {
+        errorMessages = new List<string>();
+
+        var flowFiles = WorkflowDefinitions.Select(item => item.ItemSpec).ToList();
+
+        if (flowFiles.Count == 0)
+        {
+            Log.LogMessage(MessageImportance.Normal, "No Power Automate flows found.");
+            return true; // No flows to validate
+        }
+
+        // Load connection references from Customizations.xml
+        var customizationsPath = Path.Combine(connectionReferencesPath, "Other", "Customizations.xml");
+        if (!File.Exists(customizationsPath))
+        {
+            errorMessages.Add($"Error: Customizations.xml not found at: {customizationsPath}");
+            return false;
+        }
+
+        var definedConnectionReferences = ExtractDefinedConnectionReferences(customizationsPath);
+
+        // Validate connection references for each flow
+        bool allValid = true;
+        foreach (var flowFile in flowFiles)
+        {
+            if (!ValidateFlowConnectionReferences(flowFile, definedConnectionReferences, out var flowErrors))
+            {
+                allValid = false;
+                errorMessages.AddRange(flowErrors); // Accumulate errors for this flow
+            }
+        }
+
+        return allValid;
+    }
+
+    private HashSet<string> ExtractDefinedConnectionReferences(string customizationsPath)
+    {
+        var doc = XDocument.Load(customizationsPath);
+        return new HashSet<string>(
+            doc.Descendants("connectionreference")
+               .Select(cr => cr.Attribute("connectionreferencelogicalname")?.Value)
+               .Where(name => !string.IsNullOrEmpty(name))
+        );
+    }
+
+    private bool ValidateFlowConnectionReferences(string flowJsonPath, HashSet<string> definedConnectionReferences, out List<string> errorMessages)
+    {
+        errorMessages = new List<string>();
+
+        if (!File.Exists(flowJsonPath))
+        {
+            errorMessages.Add($"Error: JSON definition not found for flow: {flowJsonPath}");
+            return false;
+        }
+
+        var jsonContent = File.ReadAllText(flowJsonPath);
+        try
+        {
+            using (JsonDocument document = JsonDocument.Parse(jsonContent))
+            {
+                JsonElement root = document.RootElement;
+
+                if (root.TryGetProperty("properties", out JsonElement propertiesElement) &&
+                    propertiesElement.TryGetProperty("connectionReferences", out JsonElement connectionReferencesElement) &&
+                    connectionReferencesElement.ValueKind == JsonValueKind.Object)
+                {
+                    bool allValid = true;
+                    foreach (JsonProperty connectionReference in connectionReferencesElement.EnumerateObject())
+                    {
+                        if (connectionReference.Value.TryGetProperty("connection", out JsonElement connectionElement) &&
+                            connectionElement.TryGetProperty("connectionReferenceLogicalName", out JsonElement logicalNameElement))
+                        {
+                            string logicalName = logicalNameElement.GetString();
+                            if (string.IsNullOrEmpty(logicalName) || !definedConnectionReferences.Contains(logicalName))
+                            {
+                                errorMessages.Add($"Error: Invalid connection reference '{logicalName}' in flow {flowJsonPath}");
+                                allValid = false;
+                            }
+                        }
+                    }
+                    return allValid;
+                }
+            }
+            Log.LogMessage(MessageImportance.High, $"No connection references found in flow: {flowJsonPath}");
+            return true;
+        }
+        catch (JsonException ex)
+        {
+            errorMessages.Add($"Error: Failed to parse JSON for flow {flowJsonPath}: {ex.Message}");
+            return false;
+        }
+    }
+}