diff --git a/cmd/zetae2e/local/local.go b/cmd/zetae2e/local/local.go
index d3ddca09a7..a103f65a41 100644
--- a/cmd/zetae2e/local/local.go
+++ b/cmd/zetae2e/local/local.go
@@ -188,6 +188,11 @@ func localE2ETest(cmd *cobra.Command, _ []string) {
 	if !skipSetup {
 		logger.Print("⚙️ setting up networks")
 		startTime := time.Now()
+
+		if err := deployerRunner.EnableVerificationFlags(); err != nil {
+			panic(err)
+		}
+
 		deployerRunner.SetupEVM(contractsDeployed, true)
 		deployerRunner.SetZEVMContracts()
 
diff --git a/e2e/runner/setup_zeta.go b/e2e/runner/setup_zeta.go
index 3789babf06..0de4693210 100644
--- a/e2e/runner/setup_zeta.go
+++ b/e2e/runner/setup_zeta.go
@@ -204,6 +204,13 @@ func (runner *E2ERunner) SetupBTCZRC20() {
 	runner.BTCZRC20 = BTCZRC20
 }
 
+// EnableVerificationFlags enables the verification flags on ZetaChain
+func (runner *E2ERunner) EnableVerificationFlags() error {
+	runner.Logger.Print("⚙️ enabling verification flags for block headers")
+
+	return runner.ZetaTxServer.EnableVerificationFlags(e2eutils.FungibleAdminName)
+}
+
 // FundEmissionsPool funds the emissions pool on ZetaChain with the same value as used originally on mainnet (20M ZETA)
 func (runner *E2ERunner) FundEmissionsPool() error {
 	runner.Logger.Print("⚙️ funding the emissions pool on ZetaChain with 20M ZETA (%s)", txserver.EmissionsPoolAddress)
diff --git a/e2e/txserver/zeta_tx_server.go b/e2e/txserver/zeta_tx_server.go
index f3d946ff5c..ebcdc6b24c 100644
--- a/e2e/txserver/zeta_tx_server.go
+++ b/e2e/txserver/zeta_tx_server.go
@@ -5,6 +5,7 @@ import (
 	"encoding/json"
 	"errors"
 	"fmt"
+	lightclienttypes "github.com/zeta-chain/zetacore/x/lightclient/types"
 	"math/big"
 	"os"
 	"strings"
@@ -192,6 +193,27 @@ func (zts ZetaTxServer) BroadcastTx(account string, msg sdktypes.Msg) (*sdktypes
 	return zts.clientCtx.BroadcastTx(txBytes)
 }
 
+// EnableVerificationFlags enables the verification flags for the lightclient module
+func (zts ZetaTxServer) EnableVerificationFlags(account string) error {
+	// retrieve account
+	acc, err := zts.clientCtx.Keyring.Key(account)
+	if err != nil {
+		return err
+	}
+	addr, err := acc.GetAddress()
+	if err != nil {
+		return err
+	}
+
+	_, err = zts.BroadcastTx(account, lightclienttypes.NewMsgUpdateVerificationFlags(
+		addr.String(),
+		true,
+		true,
+	))
+
+	return err
+}
+
 // DeploySystemContractsAndZRC20 deploys the system contracts and ZRC20 contracts
 // returns the addresses of uniswap factory, router and erc20 zrc20
 func (zts ZetaTxServer) DeploySystemContractsAndZRC20(account, erc20Addr string) (string, string, string, string, string, error) {