diff --git a/cmd/zetae2e/local/local.go b/cmd/zetae2e/local/local.go
index 0eee41b744..8b93f2da9c 100644
--- a/cmd/zetae2e/local/local.go
+++ b/cmd/zetae2e/local/local.go
@@ -292,6 +292,7 @@ func localE2ETest(cmd *cobra.Command, _ []string) {
 
 	if testAdmin {
 		eg.Go(adminTestRoutine(conf, deployerRunner, verbose,
+			e2etests.TestWhitelistERC20Name,
 			e2etests.TestRateLimiterName,
 			e2etests.TestPauseZRC20Name,
 			e2etests.TestUpdateBytecodeZRC20Name,
diff --git a/e2e/e2etests/e2etests.go b/e2e/e2etests/e2etests.go
index fc0f0988dc..402eed367e 100644
--- a/e2e/e2etests/e2etests.go
+++ b/e2e/e2etests/e2etests.go
@@ -100,6 +100,7 @@ const (
 	 Admin tests
 	 Test admin functionalities
 	*/
+	TestWhitelistERC20Name            = "whitelist_erc20"
 	TestDepositEtherLiquidityCapName  = "deposit_eth_liquidity_cap"
 	TestMigrateChainSupportName       = "migrate_chain_support"
 	TestPauseZRC20Name                = "pause_zrc20"
@@ -521,6 +522,12 @@ var AllE2ETests = []runner.E2ETest{
 	/*
 	 Admin tests
 	*/
+	runner.NewE2ETest(
+		TestWhitelistERC20Name,
+		"whitelist a new ERC20 token",
+		[]runner.ArgDefinition{},
+		TestWhitelistERC20,
+	),
 	runner.NewE2ETest(
 		TestDepositEtherLiquidityCapName,
 		"deposit Ethers into ZEVM with a liquidity cap",
diff --git a/e2e/e2etests/test_whitelist_erc20.go b/e2e/e2etests/test_whitelist_erc20.go
new file mode 100644
index 0000000000..5a09decd71
--- /dev/null
+++ b/e2e/e2etests/test_whitelist_erc20.go
@@ -0,0 +1,107 @@
+package e2etests
+
+import (
+	"math/big"
+
+	"github.com/ethereum/go-ethereum/accounts/abi/bind"
+	ethcommon "github.com/ethereum/go-ethereum/common"
+	ethtypes "github.com/ethereum/go-ethereum/core/types"
+	"github.com/stretchr/testify/require"
+	"github.com/zeta-chain/protocol-contracts/pkg/contracts/zevm/zrc20.sol"
+
+	"github.com/zeta-chain/zetacore/e2e/contracts/erc20"
+	"github.com/zeta-chain/zetacore/e2e/runner"
+	"github.com/zeta-chain/zetacore/e2e/txserver"
+	"github.com/zeta-chain/zetacore/e2e/utils"
+	"github.com/zeta-chain/zetacore/pkg/chains"
+	crosschaintypes "github.com/zeta-chain/zetacore/x/crosschain/types"
+)
+
+// TestWhitelistERC20 tests the whitelist ERC20 functionality
+func TestWhitelistERC20(r *runner.E2ERunner, _ []string) {
+	// Deploy a new ERC20 on the new EVM chain
+	r.Logger.Info("Deploying new ERC20 contract")
+	erc20Addr, txERC20, _, err := erc20.DeployERC20(r.EVMAuth, r.EVMClient, "NEWERC20", "NEWERC20", 6)
+	require.NoError(r, err)
+
+	// wait for the ERC20 to be mined
+	receipt := utils.MustWaitForTxReceipt(r.Ctx, r.EVMClient, txERC20, r.Logger, r.ReceiptTimeout)
+	require.Equal(r, ethtypes.ReceiptStatusSuccessful, receipt.Status)
+
+	// ERC20 test
+
+	// whitelist erc20 zrc20
+	r.Logger.Info("whitelisting ERC20 on new network")
+	res, err := r.ZetaTxServer.BroadcastTx(utils.AdminPolicyName, crosschaintypes.NewMsgWhitelistERC20(
+		r.ZetaTxServer.MustGetAccountAddressFromName(utils.AdminPolicyName),
+		erc20Addr.Hex(),
+		chains.GoerliLocalnet.ChainId,
+		"NEWERC20",
+		"NEWERC20",
+		6,
+		100000,
+	))
+	require.NoError(r, err)
+
+	// retrieve zrc20 and cctx from event
+	whitelistCCTXIndex, err := txserver.FetchAttributeFromTxResponse(res, "whitelist_cctx_index")
+	require.NoError(r, err)
+
+	erc20zrc20Addr, err := txserver.FetchAttributeFromTxResponse(res, "zrc20_address")
+	require.NoError(r, err)
+
+	// ensure CCTX created
+	resCCTX, err := r.CctxClient.Cctx(r.Ctx, &crosschaintypes.QueryGetCctxRequest{Index: whitelistCCTXIndex})
+	require.NoError(r, err)
+
+	cctx := resCCTX.CrossChainTx
+	r.Logger.CCTX(*cctx, "whitelist_cctx")
+
+	// wait for the whitelist cctx to be mined
+	r.WaitForMinedCCTXFromIndex(whitelistCCTXIndex)
+
+	// save old ERC20 attribute to set it back after the test
+	oldERC20Addr := r.ERC20Addr
+	oldERC20 := r.ERC20
+	oldERC20ZRC20Addr := r.ERC20ZRC20Addr
+	oldERC20ZRC20 := r.ERC20ZRC20
+	defer func() {
+		r.ERC20Addr = oldERC20Addr
+		r.ERC20 = oldERC20
+		r.ERC20ZRC20Addr = oldERC20ZRC20Addr
+		r.ERC20ZRC20 = oldERC20ZRC20
+	}()
+
+	// set erc20 and zrc20 in runner
+	require.True(r, ethcommon.IsHexAddress(erc20zrc20Addr), "invalid contract address: %s", erc20zrc20Addr)
+	erc20zrc20AddrHex := ethcommon.HexToAddress(erc20zrc20Addr)
+	erc20ZRC20, err := zrc20.NewZRC20(erc20zrc20AddrHex, r.ZEVMClient)
+	require.NoError(r, err)
+	r.ERC20ZRC20Addr = erc20zrc20AddrHex
+	r.ERC20ZRC20 = erc20ZRC20
+
+	erc20ERC20, err := erc20.NewERC20(erc20Addr, r.EVMClient)
+	require.NoError(r, err)
+	r.ERC20Addr = erc20Addr
+	r.ERC20 = erc20ERC20
+
+	// get balance
+	balance, err := r.ERC20.BalanceOf(&bind.CallOpts{}, r.Account.EVMAddress())
+	require.NoError(r, err)
+	r.Logger.Info("ERC20 balance: %s", balance.String())
+
+	// run deposit and withdraw ERC20 test
+	txHash := r.DepositERC20WithAmountAndMessage(r.EVMAddress(), balance, []byte{})
+	r.WaitForMinedCCTX(txHash)
+
+	// approve 1 unit of the gas token to cover the gas fee
+	tx, err := r.ETHZRC20.Approve(r.ZEVMAuth, r.ERC20ZRC20Addr, big.NewInt(1e18))
+	require.NoError(r, err)
+
+	receipt = utils.MustWaitForTxReceipt(r.Ctx, r.ZEVMClient, tx, r.Logger, r.ReceiptTimeout)
+	utils.RequireTxSuccessful(r, receipt)
+	r.Logger.Info("eth zrc20 approve receipt: status %d", receipt.Status)
+
+	tx = r.WithdrawERC20(balance)
+	r.WaitForMinedCCTX(tx.Hash())
+}