Natural language processing models have shown lots of advancements in generating coherent and contextually relevant responses, yet they often struggle with retrieving precise and upto-date information due to the static nature of their training data. Introducing Federated Retrieval-Augmented Generation (RAG) represents a novel and significant approach by integrating federated learning with dynamic retrieval mechanisms to enhance information retrieval and response generation. This article presents the implementation of Federated RAG on Mistral 8x7b, an open-source large language model, demonstrating substantial improvements in retrieval quality and response accuracy. The federated learning framework facilitated distributed training across multiple nodes, ensuring data privacy while enabling the model to leverage diverse information sources. Comprehensive evaluation on the MMLU benchmark revealed that the Federated RAG model consistently outperformed the baseline RAG model, achieving higher accuracy and relevance in the generated responses. Detailed analysis and optimization of the retrieval mechanisms and training processes contributed to the model’s enhanced performance, highlighting the potential of Federated RAG as a scalable solution for knowledge-intensive applications.