diff --git a/src/lightning/pytorch/CHANGELOG.md b/src/lightning/pytorch/CHANGELOG.md
index 46501a1b459cc..c65ef27bb93e1 100644
--- a/src/lightning/pytorch/CHANGELOG.md
+++ b/src/lightning/pytorch/CHANGELOG.md
@@ -20,6 +20,8 @@ The format is based on [Keep a Changelog](http://keepachangelog.com/en/1.0.0/).
 
 - Added support for multiple optimizer parameter groups when using the FSDP strategy ([#17309](https://github.com/Lightning-AI/lightning/pull/17309))
 
+- Enabled saving the full model state dict when using the `FSDPStrategy` ([#16558](https://github.com/Lightning-AI/lightning/pull/16558))
+
 
 ### Changed
 
diff --git a/src/lightning/pytorch/strategies/fsdp.py b/src/lightning/pytorch/strategies/fsdp.py
index 319cecca69ca2..0de1f5852d3af 100644
--- a/src/lightning/pytorch/strategies/fsdp.py
+++ b/src/lightning/pytorch/strategies/fsdp.py
@@ -55,7 +55,13 @@
 _distributed_available = torch.distributed.is_available()
 _fsdp_available = _TORCH_GREATER_EQUAL_1_12 and _distributed_available
 if _fsdp_available:
-    from torch.distributed.fsdp import CPUOffload, FullyShardedDataParallel, MixedPrecision
+    from torch.distributed.fsdp import (
+        CPUOffload,
+        FullStateDictConfig,
+        FullyShardedDataParallel,
+        MixedPrecision,
+        StateDictType,
+    )
     from torch.distributed.fsdp.wrap import enable_wrap
 else:
     FullyShardedDataParallel = None  # type: ignore[misc,assignment]
@@ -139,6 +145,22 @@ def __init__(
             # `self.trainer.model.parameters()` and enables support for multiple parameter groups.
             self.kwargs.setdefault("use_orig_params", True)
 
+    def lightning_module_state_dict(self) -> Dict[str, Any]:
+        """Gathers the full state dict by unsharding all the parameters.
+
+        To avoid OOM, the returned parameters will only be returned on rank 0 and on CPU. All other ranks get an empty
+        dict.
+        """
+        assert self.model is not None
+
+        with FullyShardedDataParallel.state_dict_type(
+            module=self.model,
+            state_dict_type=StateDictType.FULL_STATE_DICT,
+            state_dict_config=FullStateDictConfig(offload_to_cpu=(self.world_size > 1), rank0_only=True),
+        ):
+            state_dict = self.model.state_dict()
+            return _strip_prefix_from_state_dict(state_dict, prefix="_forward_module.")
+
     @property
     def root_device(self) -> torch.device:
         assert self.parallel_devices is not None
@@ -390,3 +412,8 @@ def register_strategies(cls, strategy_registry: Dict) -> None:
             cpu_offload=True,
         )
         cls._registered_strategies.append("fsdp_cpu_offload")
+
+
+def _strip_prefix_from_state_dict(state_dict: Dict[str, Any], prefix: str) -> Dict[str, Any]:
+    prefix_len = len(prefix)
+    return {k[prefix_len:]: v for k, v in state_dict.items()}
diff --git a/tests/tests_pytorch/strategies/test_fsdp.py b/tests/tests_pytorch/strategies/test_fsdp.py
index 65990ac9cb849..58e4c1a4123f7 100644
--- a/tests/tests_pytorch/strategies/test_fsdp.py
+++ b/tests/tests_pytorch/strategies/test_fsdp.py
@@ -86,9 +86,11 @@ def _assert_layer_fsdp_instance(self) -> None:
 
 
 class TestFSDPModelAutoWrapped(BoringModel):
-    def __init__(self):
+    def __init__(self, wrap_min_params: int = 2):
         super().__init__()
+        self.save_hyperparameters()
         self.layer = torch.nn.Sequential(torch.nn.Linear(32, 32), torch.nn.ReLU(), torch.nn.Linear(32, 2))
+        self.should_be_wrapped = [(32 * 32 + 32) > wrap_min_params, None, (32 * 2 + 2) > wrap_min_params]
 
     def configure_optimizers(self):
         parameters = self.parameters() if _TORCH_GREATER_EQUAL_2_0 else self.trainer.model.parameters()
@@ -112,6 +114,10 @@ def _assert_layer_fsdp_instance(self) -> None:
 
         precision = torch.float16 if self.trainer.precision == "16-mixed" else torch.bfloat16
         for layer_num in [0, 2]:
+            if not self.should_be_wrapped[layer_num]:
+                # this layer is not wrapped
+                assert not isinstance(self.layer[layer_num], FullyShardedDataParallel)
+                continue
             assert isinstance(self.layer[layer_num], FullyShardedDataParallel)
             assert self.layer[layer_num].mixed_precision.param_dtype == precision
             assert self.layer[layer_num].mixed_precision.reduce_dtype == precision
@@ -224,7 +230,6 @@ def policy(self):
 
 custom_fsdp_policy = CustomWrapPolicy(min_num_params=2)
 
-
 if _TORCH_GREATER_EQUAL_2_0:
 
     def custom_auto_wrap_policy(
@@ -244,6 +249,34 @@ def custom_auto_wrap_policy(
         return unwrapped_params >= 2
 
 
+@RunIf(min_cuda_gpus=2, skip_windows=True, standalone=True, min_torch="1.12")
+@pytest.mark.parametrize("wrap_min_params", (2, 1024, 100000000))
+def test_fsdp_strategy_full_state_dict(tmpdir, wrap_min_params):
+    """Test to ensure that the full state dict is extracted when using FSDP strategy.
+
+    Based on `wrap_min_params`, the model will be fully wrapped, half wrapped, and not wrapped at all.
+    """
+    model = TestFSDPModelAutoWrapped(wrap_min_params=wrap_min_params)
+    correct_state_dict = model.state_dict()  # State dict before wrapping
+
+    strategy = FSDPStrategy(auto_wrap_policy=partial(size_based_auto_wrap_policy, min_num_params=wrap_min_params))
+    trainer = Trainer(
+        default_root_dir=tmpdir, accelerator="gpu", devices=2, strategy=strategy, precision="16-mixed", max_epochs=1
+    )
+    trainer.fit(model)
+
+    full_state_dict = trainer.strategy.lightning_module_state_dict()
+
+    if trainer.global_rank != 0:
+        assert len(full_state_dict) == 0
+        return
+
+    # State dict should contain same number of keys
+    assert len(correct_state_dict) == len(full_state_dict)
+    # OrderedDict should return the same keys in the same order
+    assert all(_ex == _co for _ex, _co in zip(full_state_dict.keys(), correct_state_dict.keys()))
+
+
 @RunIf(min_cuda_gpus=2, skip_windows=True, standalone=True, min_torch="1.12")
 @pytest.mark.parametrize(
     "model, strategy, strategy_cfg",