diff --git a/beacon-chain/core/blocks/error.go b/beacon-chain/core/blocks/error.go
index 7d968e7d5e..87218529c6 100644
--- a/beacon-chain/core/blocks/error.go
+++ b/beacon-chain/core/blocks/error.go
@@ -6,3 +6,4 @@ var errNilSignedWithdrawalMessage = errors.New("nil SignedBLSToExecutionChange m
 var errNilWithdrawalMessage = errors.New("nil BLSToExecutionChange message")
 var errInvalidBLSPrefix = errors.New("withdrawal credential prefix is not a BLS prefix")
 var errInvalidWithdrawalCredentials = errors.New("withdrawal credentials do not match")
+var ErrInvalidSignature = errors.New("invalid signature")
diff --git a/beacon-chain/core/blocks/signature.go b/beacon-chain/core/blocks/signature.go
index 72a542a8db..1d8ec1dcc1 100644
--- a/beacon-chain/core/blocks/signature.go
+++ b/beacon-chain/core/blocks/signature.go
@@ -114,9 +114,12 @@ func VerifyBlockSignatureUsingCurrentFork(beaconState state.ReadOnlyBeaconState,
 	}
 	proposerPubKey := proposer.PublicKey
 	sig := blk.Signature()
-	return signing.VerifyBlockSigningRoot(proposerPubKey, sig[:], domain, func() ([32]byte, error) {
+	if err := signing.VerifyBlockSigningRoot(proposerPubKey, sig[:], domain, func() ([32]byte, error) {
 		return blkRoot, nil
-	})
+	}); err != nil {
+		return ErrInvalidSignature
+	}
+	return nil
 }
 
 // BlockSignatureBatch retrieves the block signature batch from the provided block and its corresponding state.
diff --git a/beacon-chain/core/blocks/signature_test.go b/beacon-chain/core/blocks/signature_test.go
index 896e531cea..aa86bb8b3c 100644
--- a/beacon-chain/core/blocks/signature_test.go
+++ b/beacon-chain/core/blocks/signature_test.go
@@ -89,3 +89,36 @@ func TestVerifyBlockSignatureUsingCurrentFork(t *testing.T) {
 	require.NoError(t, err)
 	assert.NoError(t, blocks.VerifyBlockSignatureUsingCurrentFork(bState, wsb, blkRoot))
 }
+
+func TestVerifyBlockSignatureUsingCurrentFork_InvalidSignature(t *testing.T) {
+	params.SetupTestConfigCleanup(t)
+	bCfg := params.BeaconConfig()
+	bCfg.AltairForkEpoch = 100
+	bCfg.ForkVersionSchedule[bytesutil.ToBytes4(bCfg.AltairForkVersion)] = 100
+	params.OverrideBeaconConfig(bCfg)
+	bState, keys := util.DeterministicGenesisState(t, 100)
+	altairBlk := util.NewBeaconBlockAltair()
+	altairBlk.Block.ProposerIndex = 0
+	altairBlk.Block.Slot = params.BeaconConfig().SlotsPerEpoch * 100
+	blkRoot, err := altairBlk.Block.HashTreeRoot()
+	assert.NoError(t, err)
+
+	// Sign with wrong key (proposer index 0, but using key 1)
+	fData := &ethpb.Fork{
+		Epoch:           100,
+		CurrentVersion:  params.BeaconConfig().AltairForkVersion,
+		PreviousVersion: params.BeaconConfig().GenesisForkVersion,
+	}
+	domain, err := signing.Domain(fData, 100, params.BeaconConfig().DomainBeaconProposer, bState.GenesisValidatorsRoot())
+	assert.NoError(t, err)
+	rt, err := signing.ComputeSigningRoot(altairBlk.Block, domain)
+	assert.NoError(t, err)
+	wrongSig := keys[1].Sign(rt[:]).Marshal()
+	altairBlk.Signature = wrongSig
+
+	wsb, err := consensusblocks.NewSignedBeaconBlock(altairBlk)
+	require.NoError(t, err)
+
+	err = blocks.VerifyBlockSignatureUsingCurrentFork(bState, wsb, blkRoot)
+	require.ErrorIs(t, err, blocks.ErrInvalidSignature, "Expected ErrInvalidSignature for invalid signature")
+}
diff --git a/beacon-chain/sync/validate_beacon_blocks.go b/beacon-chain/sync/validate_beacon_blocks.go
index 49d101cb17..8418ff9819 100644
--- a/beacon-chain/sync/validate_beacon_blocks.go
+++ b/beacon-chain/sync/validate_beacon_blocks.go
@@ -294,6 +294,9 @@ func (s *Service) validatePhase0Block(ctx context.Context, blk interfaces.ReadOn
 	}
 
 	if err := blocks.VerifyBlockSignatureUsingCurrentFork(parentState, blk, blockRoot); err != nil {
+		if errors.Is(err, blocks.ErrInvalidSignature) {
+			s.setBadBlock(ctx, blockRoot)
+		}
 		return nil, err
 	}
 	// In the event the block is more than an epoch ahead from its
diff --git a/beacon-chain/sync/validate_beacon_blocks_test.go b/beacon-chain/sync/validate_beacon_blocks_test.go
index 6f5acb6915..a64aea417e 100644
--- a/beacon-chain/sync/validate_beacon_blocks_test.go
+++ b/beacon-chain/sync/validate_beacon_blocks_test.go
@@ -103,11 +103,84 @@ func TestValidateBeaconBlockPubSub_InvalidSignature(t *testing.T) {
 		},
 	}
 	res, err := r.validateBeaconBlockPubSub(ctx, "", m)
-	require.ErrorIs(t, err, signing.ErrSigFailedToVerify)
+	require.ErrorContains(t, "invalid signature", err)
 	result := res == pubsub.ValidationReject
 	assert.Equal(t, true, result)
 }
 
+func TestValidateBeaconBlockPubSub_InvalidSignature_MarksBlockAsBad(t *testing.T) {
+	db := dbtest.SetupDB(t)
+	p := p2ptest.NewTestP2P(t)
+	ctx := t.Context()
+	beaconState, privKeys := util.DeterministicGenesisState(t, 100)
+	parentBlock := util.NewBeaconBlock()
+	util.SaveBlock(t, ctx, db, parentBlock)
+	bRoot, err := parentBlock.Block.HashTreeRoot()
+	require.NoError(t, err)
+	require.NoError(t, db.SaveState(ctx, beaconState, bRoot))
+	require.NoError(t, db.SaveStateSummary(ctx, &ethpb.StateSummary{Root: bRoot[:]}))
+	copied := beaconState.Copy()
+	require.NoError(t, copied.SetSlot(1))
+	proposerIdx, err := helpers.BeaconProposerIndex(ctx, copied)
+	require.NoError(t, err)
+	msg := util.NewBeaconBlock()
+	msg.Block.ParentRoot = bRoot[:]
+	msg.Block.Slot = 1
+	msg.Block.ProposerIndex = proposerIdx
+	badPrivKeyIdx := proposerIdx + 1 // We generate a valid signature from a wrong private key which fails to verify
+	msg.Signature, err = signing.ComputeDomainAndSign(beaconState, 0, msg.Block, params.BeaconConfig().DomainBeaconProposer, privKeys[badPrivKeyIdx])
+	require.NoError(t, err)
+
+	stateGen := stategen.New(db, doublylinkedtree.New())
+	chainService := &mock.ChainService{Genesis: time.Unix(time.Now().Unix()-int64(params.BeaconConfig().SecondsPerSlot), 0),
+		FinalizedCheckPoint: &ethpb.Checkpoint{
+			Epoch: 0,
+			Root:  make([]byte, 32),
+		},
+		DB: db,
+	}
+	r := &Service{
+		cfg: &config{
+			beaconDB:      db,
+			p2p:           p,
+			initialSync:   &mockSync.Sync{IsSyncing: false},
+			chain:         chainService,
+			clock:         startup.NewClock(chainService.Genesis, chainService.ValidatorsRoot),
+			blockNotifier: chainService.BlockNotifier(),
+			stateGen:      stateGen,
+		},
+		seenBlockCache: lruwrpr.New(10),
+		badBlockCache:  lruwrpr.New(10),
+	}
+
+	blockRoot, err := msg.Block.HashTreeRoot()
+	require.NoError(t, err)
+
+	// Verify block is not marked as bad initially
+	assert.Equal(t, false, r.hasBadBlock(blockRoot), "block should not be marked as bad initially")
+
+	buf := new(bytes.Buffer)
+	_, err = p.Encoding().EncodeGossip(buf, msg)
+	require.NoError(t, err)
+	topic := p2p.GossipTypeMapping[reflect.TypeOf(msg)]
+	digest, err := r.currentForkDigest()
+	assert.NoError(t, err)
+	topic = r.addDigestToTopic(topic, digest)
+	m := &pubsub.Message{
+		Message: &pubsubpb.Message{
+			Data:  buf.Bytes(),
+			Topic: &topic,
+		},
+	}
+	res, err := r.validateBeaconBlockPubSub(ctx, "", m)
+	require.ErrorContains(t, "invalid signature", err)
+	result := res == pubsub.ValidationReject
+	assert.Equal(t, true, result)
+
+	// Verify block is now marked as bad after invalid signature
+	assert.Equal(t, true, r.hasBadBlock(blockRoot), "block should be marked as bad after invalid signature")
+}
+
 func TestValidateBeaconBlockPubSub_BlockAlreadyPresentInDB(t *testing.T) {
 	db := dbtest.SetupDB(t)
 	ctx := t.Context()
@@ -976,7 +1049,7 @@ func TestValidateBeaconBlockPubSub_InvalidParentBlock(t *testing.T) {
 		},
 	}
 	res, err := r.validateBeaconBlockPubSub(ctx, "", m)
-	require.ErrorContains(t, "could not unmarshal bytes into signature", err)
+	require.ErrorContains(t, "invalid signature", err)
 	assert.Equal(t, res, pubsub.ValidationReject, "block with invalid signature should be rejected")
 
 	require.NoError(t, copied.SetSlot(2))
diff --git a/changelog/potuz_invalid_sig.md b/changelog/potuz_invalid_sig.md
new file mode 100644
index 0000000000..756ed7748f
--- /dev/null
+++ b/changelog/potuz_invalid_sig.md
@@ -0,0 +1,3 @@
+### Fixed
+
+- Mark the block as invalid if it has an invalid signature.