diff --git a/toolkit/offchain/src/reserve/init.rs b/toolkit/offchain/src/reserve/init.rs
index ef49f5648..e8afb7f06 100644
--- a/toolkit/offchain/src/reserve/init.rs
+++ b/toolkit/offchain/src/reserve/init.rs
@@ -116,6 +116,11 @@ async fn initialize_script<
 	let governance = get_governance_data(genesis_utxo, client).await?;
 	let version_oracle = scripts_data::version_oracle(genesis_utxo, ctx.network)?;
 
+	if script_is_initialized(&script, &version_oracle, &ctx, client).await? {
+		log::info!("Script '{}' is already initialized", script.name);
+		return Ok(None);
+	}
+
 	let tx_to_evaluate = init_script_tx(
 		&script,
 		&governance,
@@ -271,3 +276,44 @@ fn match_costs(
 		Err(anyhow!("Could not build transaction to submit, evaluate response has wrong number of mint keys."))
 	}
 }
+
+// There exist UTXO at Version Oracle Validator with Datum that contains
+// * script id of the script being initialized
+// * Version Oracle Policy Id
+async fn script_is_initialized<
+	T: QueryLedgerState + Transactions + QueryNetwork + QueryUtxoByUtxoId,
+>(
+	script: &ScriptData,
+	version_oracle: &VersionOracleData,
+	ctx: &TransactionContext,
+	client: &T,
+) -> Result<bool, anyhow::Error> {
+	let validator_address = version_oracle.validator.address(ctx.network).to_bech32(None)?;
+	let validator_utxos = client.query_utxos(&[validator_address]).await?;
+	// Decode datum from utxos and check if it contains script id
+	Ok(validator_utxos.into_iter().any(|utxo| {
+		utxo.datum
+			.map(|d| d.bytes)
+			.and_then(|bytes| PlutusData::from_bytes(bytes).ok())
+			.and_then(decode_version_oracle_validator_datum)
+			.filter(|datum| {
+				datum.script_id == script.id
+					&& datum.version_oracle_policy_id == version_oracle.policy_id().0
+			})
+			.is_some()
+	}))
+}
+
+pub(crate) struct VersionOracleValidatorDatum {
+	pub(crate) script_id: u32,
+	pub(crate) version_oracle_policy_id: [u8; 28],
+}
+
+fn decode_version_oracle_validator_datum(data: PlutusData) -> Option<VersionOracleValidatorDatum> {
+	let list = data.as_list()?;
+	let mut list_iter = list.into_iter();
+	let script_id = list_iter.next()?.as_integer()?;
+	let script_id: u32 = script_id.as_u64()?.try_into().ok()?;
+	let version_oracle_policy_id: [u8; 28] = list_iter.next()?.as_bytes()?.try_into().ok()?;
+	Some(VersionOracleValidatorDatum { script_id, version_oracle_policy_id })
+}
diff --git a/toolkit/offchain/tests/integration_tests.rs b/toolkit/offchain/tests/integration_tests.rs
index dadba930c..db0d01a26 100644
--- a/toolkit/offchain/tests/integration_tests.rs
+++ b/toolkit/offchain/tests/integration_tests.rs
@@ -83,26 +83,10 @@ async fn init_reserve() {
 	let container = client.run(image);
 	let client = initialize(&container).await;
 	let genesis_utxo = run_init_goveranance(&client).await;
-	let txs = reserve::init::init_reserve_management(
-		genesis_utxo,
-		GOVERNANCE_AUTHORITY_PAYMENT_KEY.0,
-		&client,
-		&FixedDelayRetries::new(Duration::from_millis(500), 100),
-	)
-	.await
-	.unwrap();
+	let txs = run_init_reserve_management(genesis_utxo, &client).await;
 	assert_eq!(txs.len(), 3);
-
-	// TODO: Implement idempotency in the following PR
-	// let txs = reserve::init::init_reserve_management(
-	// 	genesis_utxo,
-	// 	GOVERNANCE_AUTHORITY_PAYMENT_KEY.0,
-	// 	&client,
-	// 	&FixedDelayRetries::new(Duration::from_millis(500), 100),
-	// )
-	// .await
-	// .unwrap();
-	// assert_eq!(txs.len(), 0)
+	let txs = run_init_reserve_management(genesis_utxo, &client).await;
+	assert_eq!(txs.len(), 0)
 }
 
 #[tokio::test]
@@ -208,6 +192,22 @@ async fn run_upsert_d_param<
 	tx_hash
 }
 
+async fn run_init_reserve_management<
+	T: QueryLedgerState + Transactions + QueryNetwork + QueryUtxoByUtxoId,
+>(
+	genesis_utxo: UtxoId,
+	client: &T,
+) -> Vec<McTxHash> {
+	reserve::init::init_reserve_management(
+		genesis_utxo,
+		GOVERNANCE_AUTHORITY_PAYMENT_KEY.0,
+		client,
+		&FixedDelayRetries::new(Duration::from_millis(500), 100),
+	)
+	.await
+	.unwrap()
+}
+
 async fn run_register<T: QueryLedgerState + Transactions + QueryNetwork + QueryUtxoByUtxoId>(
 	genesis_utxo: UtxoId,
 	partnerchain_signature: SidechainSignature,