diff --git a/apps/backend/src/applications/applications.controller.ts b/apps/backend/src/applications/applications.controller.ts
index a8c894a..7b5a17d 100644
--- a/apps/backend/src/applications/applications.controller.ts
+++ b/apps/backend/src/applications/applications.controller.ts
@@ -12,7 +12,7 @@ import {
   NotFoundException,
   UnauthorizedException,
 } from '@nestjs/common';
-import { Response } from './types';
+import { Decision, Response } from './types';
 import { ApplicationsService } from './applications.service';
 import { CurrentUserInterceptor } from '../interceptors/current-user.interceptor';
 import { AuthGuard } from '@nestjs/passport';
@@ -40,6 +40,27 @@ export class ApplicationsController {
     return await this.applicationsService.submitApp(application, user);
   }
 
+  @Post('/decision/:appId')
+  @UseGuards(AuthGuard('jwt'))
+  async makeDecision(
+    @Param('appId', ParseIntPipe) applicantId: number,
+    @Body('decision') decision: Decision,
+    @Request() req,
+  ): Promise<void> {
+    //Authorization check for admin and recruiters
+    if (![UserStatus.ADMIN, UserStatus.RECRUITER].includes(req.user.status)) {
+      throw new UnauthorizedException();
+    }
+
+    //Check if the string decision matches with the Decision enum
+    const decisionEnum: Decision = Decision[decision];
+    if (!decisionEnum) {
+      throw new BadRequestException('Invalid decision value');
+    }
+
+    //Delegate the decision making to the service.
+    await this.applicationsService.processDecision(applicantId, decisionEnum);
+  }
   @UseGuards(AuthGuard('jwt'))
   @Get('/')
   async getApplications(
diff --git a/apps/backend/src/applications/applications.service.ts b/apps/backend/src/applications/applications.service.ts
index 45868f6..593a4ea 100644
--- a/apps/backend/src/applications/applications.service.ts
+++ b/apps/backend/src/applications/applications.service.ts
@@ -13,11 +13,12 @@ import {
   getCurrentSemester,
   getCurrentYear,
 } from './utils';
-import { Response } from './types';
+import { Decision, Response } from './types';
 import * as crypto from 'crypto';
 import { User } from '../users/user.entity';
 import { Position, ApplicationStage, ApplicationStep } from './types';
 import { GetAllApplicationResponseDTO } from './dto/get-all-application.response.dto';
+import { stagesMap } from './applications.constants';
 
 @Injectable()
 export class ApplicationsService {
@@ -94,6 +95,37 @@ export class ApplicationsService {
     throw new UnauthorizedException();
   }
 
+  /**
+   * Updates the application stage of the applicant.
+   * Moves the stage to either the next stage or to rejected.
+   *
+   * @param applicantId the id of the applicant.
+   * @param decision enum that contains either the applicant was 'ACCEPT' or 'REJECT'
+   * @returns { void } only updates the stage of the applicant.
+   */
+  async processDecision(
+    applicantId: number,
+    decision: Decision,
+  ): Promise<void> {
+    const application = await this.findCurrent(applicantId);
+
+    let newStage: ApplicationStage;
+    if (decision === Decision.REJECT) {
+      newStage = ApplicationStage.REJECTED;
+    } else {
+      const stagesArr = stagesMap[application.position];
+      const stageIndex = stagesArr.indexOf(application.stage);
+      if (stageIndex === -1) {
+        return;
+      }
+      newStage = stagesArr[stageIndex + 1];
+    }
+    application.stage = newStage;
+
+    //Save the updated stage
+    await this.applicationsRepository.save(application);
+  }
+
   async findAll(userId: number): Promise<Application[]> {
     const apps = await this.applicationsRepository.find({
       where: { user: { id: userId } },
diff --git a/apps/backend/src/applications/types.ts b/apps/backend/src/applications/types.ts
index 3ae67ab..ebc0a69 100644
--- a/apps/backend/src/applications/types.ts
+++ b/apps/backend/src/applications/types.ts
@@ -30,3 +30,8 @@ export enum Position {
   PM = 'PRODUCT_MANAGER',
   DESIGNER = 'DESIGNER',
 }
+
+export enum Decision {
+  ACCEPT = 'ACCEPT',
+  REJECT = 'REJECT',
+}