diff --git a/cypress/e2e/assets_spec/assets_manage.cy.ts b/cypress/e2e/assets_spec/assets_manage.cy.ts
index 34c554b374e..8b440f68761 100644
--- a/cypress/e2e/assets_spec/assets_manage.cy.ts
+++ b/cypress/e2e/assets_spec/assets_manage.cy.ts
@@ -5,6 +5,12 @@ import { AssetSearchPage } from "../../pageobject/Asset/AssetSearch";
 import FacilityPage from "../../pageobject/Facility/FacilityCreation";
 import { AssetFilters } from "../../pageobject/Asset/AssetFilters";
 
+function addDaysToDate(numberOfDays: number) {
+  const inputDate = new Date();
+  inputDate.setDate(inputDate.getDate() + numberOfDays);
+  return inputDate.toISOString().split("T")[0];
+}
+
 describe("Asset", () => {
   const assetPage = new AssetPage();
   const loginPage = new LoginPage();
@@ -26,6 +32,33 @@ describe("Asset", () => {
     cy.awaitUrl("/assets");
   });
 
+  it("Verify Asset Warranty Expiry Label", () => {
+    assetSearchPage.typeSearchKeyword(assetname);
+    assetSearchPage.pressEnter();
+    assetSearchPage.verifyBadgeContent(assetname);
+    assetSearchPage.clickAssetByName(assetname);
+    assetPage.clickupdatedetailbutton();
+    assetPage.scrollintoWarrantyDetails();
+    assetPage.enterWarrantyExpiryDate(addDaysToDate(100)); // greater than 3 months
+    assetPage.clickassetupdatebutton();
+    assetPage.verifyWarrantyExpiryLabel("");
+    assetPage.clickupdatedetailbutton();
+    assetPage.scrollintoWarrantyDetails();
+    assetPage.enterWarrantyExpiryDate(addDaysToDate(80)); // less than 3 months
+    assetPage.clickassetupdatebutton();
+    assetPage.verifyWarrantyExpiryLabel("3 months");
+    assetPage.clickupdatedetailbutton();
+    assetPage.scrollintoWarrantyDetails();
+    assetPage.enterWarrantyExpiryDate(addDaysToDate(20)); // less than 1 month
+    assetPage.clickassetupdatebutton();
+    assetPage.verifyWarrantyExpiryLabel("1 month");
+    assetPage.clickupdatedetailbutton();
+    assetPage.scrollintoWarrantyDetails();
+    assetPage.enterWarrantyExpiryDate(addDaysToDate(100)); // check for greater than 3 months again to verify the label is removed
+    assetPage.clickassetupdatebutton();
+    assetPage.verifyWarrantyExpiryLabel("");
+  });
+
   it("Create & Edit a service history and verify reflection", () => {
     assetSearchPage.typeSearchKeyword(assetname);
     assetSearchPage.pressEnter();
diff --git a/cypress/pageobject/Asset/AssetCreation.ts b/cypress/pageobject/Asset/AssetCreation.ts
index 2c727820292..93bbc87c9ab 100644
--- a/cypress/pageobject/Asset/AssetCreation.ts
+++ b/cypress/pageobject/Asset/AssetCreation.ts
@@ -285,16 +285,39 @@ export class AssetPage {
     cy.get("#notes").scrollIntoView();
   }
 
-  enterAssetNotes(text) {
+  enterAssetNotes(text: string) {
     cy.get("#notes").click().clear();
     cy.get("#notes").click().type(text);
   }
 
-  enterAssetservicedate(text) {
+  enterAssetservicedate(text: string) {
     cy.get("input[name='last_serviced_on']").click();
     cy.get("#date-input").click().type(text);
   }
 
+  scrollintoWarrantyDetails() {
+    cy.get("#warranty-details").scrollIntoView();
+  }
+
+  enterWarrantyExpiryDate(text: string) {
+    cy.get("#WarrantyAMCExpiry").click();
+    cy.get("#WarrantyAMCExpiry").click().type(text);
+  }
+
+  verifyWarrantyExpiryLabel(duration: string) {
+    if (duration === "") {
+      cy.get("#warranty-amc-expired-red").should("not.exist");
+      cy.get("#warranty-amc-expiring-soon-orange").should("not.exist");
+      cy.get("#warranty-amc-expiring-soon-yellow").should("not.exist");
+    } else if (duration === "expired") {
+      cy.get("#warranty-amc-expired-red").should("be.visible");
+    } else if (duration === "1 month") {
+      cy.get("#warranty-amc-expiring-soon-orange").should("be.visible");
+    } else if (duration === "3 months") {
+      cy.get("#warranty-amc-expiring-soon-yellow").should("be.visible");
+    }
+  }
+
   clickassetupdatebutton() {
     cy.get("#submit").click();
   }
diff --git a/src/CAREUI/display/Chip.tsx b/src/CAREUI/display/Chip.tsx
index abc21711551..7bcbd6078e4 100644
--- a/src/CAREUI/display/Chip.tsx
+++ b/src/CAREUI/display/Chip.tsx
@@ -11,6 +11,7 @@ interface Props {
   text: string;
   tooltip?: string;
   className?: string;
+  id?: string;
 }
 
 export default function Chip({
@@ -21,6 +22,7 @@ export default function Chip({
 }: Props) {
   return (
     <span
+      id={props?.id}
       className={classNames(
         "inline-flex items-center gap-2 font-medium leading-4",
 
diff --git a/src/Components/Assets/AssetsList.tsx b/src/Components/Assets/AssetsList.tsx
index 46b4da5283d..1c366a23e7e 100644
--- a/src/Components/Assets/AssetsList.tsx
+++ b/src/Components/Assets/AssetsList.tsx
@@ -516,6 +516,7 @@ export const warrantyAmcValidityChip = (
   if (warrantyAmcEndDate < today) {
     return (
       <Chip
+        id="warranty-amc-expired-red"
         variant="danger"
         startIcon="l-times-circle"
         text="AMC/Warranty Expired"
@@ -524,6 +525,7 @@ export const warrantyAmcValidityChip = (
   } else if (days <= 30) {
     return (
       <Chip
+        id="warranty-amc-expiring-soon-orange"
         variant="custom"
         className="border-orange-300 bg-orange-100 text-orange-900"
         startIcon="l-exclamation-circle"
@@ -533,6 +535,7 @@ export const warrantyAmcValidityChip = (
   } else if (days <= 90) {
     return (
       <Chip
+        id="warranty-amc-expiring-soon-yellow"
         variant="warning"
         startIcon="l-exclamation-triangle"
         text="AMC/Warranty Expiring Soon"