diff --git a/cmd/zetae2e/local/local.go b/cmd/zetae2e/local/local.go
index 2d404ba391..7e0c6e5a4d 100644
--- a/cmd/zetae2e/local/local.go
+++ b/cmd/zetae2e/local/local.go
@@ -409,6 +409,7 @@ func localE2ETest(cmd *cobra.Command, _ []string) {
 		tonTests := []string{
 			e2etests.TestTONDepositName,
 			e2etests.TestTONDepositAndCallName,
+			e2etests.TestTONWithdrawName,
 		}
 
 		eg.Go(tonTestRoutine(conf, deployerRunner, verbose, tonTests...))
diff --git a/e2e/e2etests/e2etests.go b/e2e/e2etests/e2etests.go
index 2d6eea998f..f027ccb773 100644
--- a/e2e/e2etests/e2etests.go
+++ b/e2e/e2etests/e2etests.go
@@ -67,6 +67,7 @@ const (
 	 */
 	TestTONDepositName        = "ton_deposit"
 	TestTONDepositAndCallName = "ton_deposit_and_call"
+	TestTONWithdrawName       = "ton_withdraw"
 
 	/*
 	 Bitcoin tests
@@ -458,6 +459,14 @@ var AllE2ETests = []runner.E2ETest{
 		},
 		TestTONDepositAndCall,
 	),
+	runner.NewE2ETest(
+		TestTONWithdrawName,
+		"withdraw TON from ZEVM",
+		[]runner.ArgDefinition{
+			{Description: "amount in nano tons", DefaultValue: "2000000000"}, // 2.0 TON
+		},
+		TestTONWithdraw,
+	),
 	/*
 	 Bitcoin tests
 	*/
diff --git a/e2e/e2etests/test_ton_deposit.go b/e2e/e2etests/test_ton_deposit.go
index f80d7f3825..4ee6b4a6fb 100644
--- a/e2e/e2etests/test_ton_deposit.go
+++ b/e2e/e2etests/test_ton_deposit.go
@@ -1,23 +1,19 @@
 package e2etests
 
 import (
-	"time"
-
 	"github.com/ethereum/go-ethereum/accounts/abi/bind"
 	"github.com/stretchr/testify/require"
 
 	"github.com/zeta-chain/node/e2e/runner"
-	"github.com/zeta-chain/node/pkg/chains"
 	toncontracts "github.com/zeta-chain/node/pkg/contracts/ton"
 	"github.com/zeta-chain/node/testutil/sample"
-	cctypes "github.com/zeta-chain/node/x/crosschain/types"
 )
 
 func TestTONDeposit(r *runner.E2ERunner, args []string) {
 	require.Len(r, args, 1)
 
 	// Given deployer
-	ctx, deployer, chain := r.Ctx, r.TONDeployer, chains.TONLocalnet
+	ctx, deployer := r.Ctx, r.TONDeployer
 
 	// Given amount
 	amount := parseUint(r, args[0])
@@ -34,19 +30,11 @@ func TestTONDeposit(r *runner.E2ERunner, args []string) {
 	recipient := sample.EthAddress()
 
 	// ACT
-	err = r.TONDeposit(sender, amount, recipient)
+	cctx, err := r.TONDeposit(sender, amount, recipient)
 
 	// ASSERT
 	require.NoError(r, err)
 
-	// Wait for CCTX mining
-	filter := func(cctx *cctypes.CrossChainTx) bool {
-		return cctx.InboundParams.SenderChainId == chain.ChainId &&
-			cctx.InboundParams.Sender == sender.GetAddress().ToRaw()
-	}
-
-	cctx := r.WaitForSpecificCCTX(filter, time.Minute)
-
 	// Check CCTX
 	expectedDeposit := amount.Sub(depositFee)
 
diff --git a/e2e/e2etests/test_ton_deposit_and_call.go b/e2e/e2etests/test_ton_deposit_and_call.go
index 78452df088..d0b2cac9e0 100644
--- a/e2e/e2etests/test_ton_deposit_and_call.go
+++ b/e2e/e2etests/test_ton_deposit_and_call.go
@@ -1,24 +1,20 @@
 package e2etests
 
 import (
-	"time"
-
 	"github.com/ethereum/go-ethereum/accounts/abi/bind"
 	"github.com/stretchr/testify/require"
 
 	"github.com/zeta-chain/node/e2e/runner"
 	"github.com/zeta-chain/node/e2e/utils"
-	"github.com/zeta-chain/node/pkg/chains"
 	toncontracts "github.com/zeta-chain/node/pkg/contracts/ton"
 	testcontract "github.com/zeta-chain/node/testutil/contracts"
-	cctypes "github.com/zeta-chain/node/x/crosschain/types"
 )
 
 func TestTONDepositAndCall(r *runner.E2ERunner, args []string) {
 	require.Len(r, args, 1)
 
 	// Given deployer
-	ctx, deployer, chain := r.Ctx, r.TONDeployer, chains.TONLocalnet
+	ctx, deployer := r.Ctx, r.TONDeployer
 
 	// Given amount
 	amount := parseUint(r, args[0])
@@ -40,19 +36,11 @@ func TestTONDepositAndCall(r *runner.E2ERunner, args []string) {
 	callData := []byte("hello from TON!")
 
 	// ACT
-	err = r.TONDepositAndCall(sender, amount, contractAddr, callData)
+	_, err = r.TONDepositAndCall(sender, amount, contractAddr, callData)
 
 	// ASSERT
 	require.NoError(r, err)
 
-	// Wait for CCTX mining
-	filter := func(cctx *cctypes.CrossChainTx) bool {
-		return cctx.InboundParams.SenderChainId == chain.ChainId &&
-			cctx.InboundParams.Sender == sender.GetAddress().ToRaw()
-	}
-
-	r.WaitForSpecificCCTX(filter, time.Minute)
-
 	expectedDeposit := amount.Sub(depositFee)
 
 	// check if example contract has been called, bar value should be set to amount
diff --git a/e2e/e2etests/test_ton_withdrawals.go b/e2e/e2etests/test_ton_withdrawals.go
new file mode 100644
index 0000000000..2539f63528
--- /dev/null
+++ b/e2e/e2etests/test_ton_withdrawals.go
@@ -0,0 +1,95 @@
+package e2etests
+
+import (
+	"math/big"
+
+	"cosmossdk.io/math"
+	"github.com/ethereum/go-ethereum/accounts/abi/bind"
+	"github.com/stretchr/testify/require"
+
+	"github.com/zeta-chain/node/e2e/runner"
+	toncontracts "github.com/zeta-chain/node/pkg/contracts/ton"
+	"github.com/zeta-chain/node/zetaclient/chains/ton/liteapi"
+)
+
+func TestTONWithdraw(r *runner.E2ERunner, args []string) {
+	// ARRANGE
+	require.Len(r, args, 1)
+
+	// Given a deployer
+	_, deployer := r.Ctx, r.TONDeployer
+
+	// That donates 100 TON to some zEVM sender
+	zevmSender := r.ZEVMAuth.From
+
+	_, err := r.TONDeposit(&deployer.Wallet, toncontracts.Coins(100), zevmSender)
+	require.NoError(r, err)
+
+	// Given his ZRC-20 balance
+	senderZRC20BalanceBefore, err := r.TONZRC20.BalanceOf(&bind.CallOpts{}, zevmSender)
+	require.NoError(r, err)
+	r.Logger.Print("zEVM sender's ZRC20 TON balance before withdraw: %d", senderZRC20BalanceBefore)
+
+	// Given another TON wallet
+	tonRecipient, err := deployer.CreateWallet(r.Ctx, toncontracts.Coins(1))
+	require.NoError(r, err)
+
+	tonRecipientBalanceBefore, err := deployer.GetBalanceOf(r.Ctx, tonRecipient.GetAddress())
+	require.NoError(r, err)
+
+	r.Logger.Print("Recipient's TON balance before withdrawal: %s", toncontracts.FormatCoins(tonRecipientBalanceBefore))
+
+	// Given amount to withdraw (and approved amount in TON ZRC20 to cover the gas fee)
+	amount := parseUint(r, args[0])
+	approvedAmount := amount.Add(toncontracts.Coins(1))
+
+	// ACT
+	cctx := r.WithdrawTONZRC20(tonRecipient.GetAddress(), amount.BigInt(), approvedAmount.BigInt())
+
+	// ASSERT
+	r.Logger.Print(
+		"Withdraw TON ZRC20 transaction (with %s) sent: %+v",
+		toncontracts.FormatCoins(amount),
+		map[string]any{
+			"zevm_sender":   zevmSender.Hex(),
+			"ton_recipient": tonRecipient.GetAddress().ToRaw(),
+			"ton_amount":    toncontracts.FormatCoins(amount),
+			"cctx_index":    cctx.Index,
+			"ton_hash":      cctx.GetCurrentOutboundParam().Hash,
+			"zevm_hash":     cctx.InboundParams.ObservedHash,
+		},
+	)
+
+	// Make sure that recipient's TON balance has increased
+	tonRecipientBalanceAfter, err := deployer.GetBalanceOf(r.Ctx, tonRecipient.GetAddress())
+	require.NoError(r, err)
+
+	r.Logger.Print("Recipient's balance after withdrawal: %s", toncontracts.FormatCoins(tonRecipientBalanceAfter))
+
+	// Make sure that sender's ZRC20 balance has decreased
+	senderZRC20BalanceAfter, err := r.TONZRC20.BalanceOf(&bind.CallOpts{}, zevmSender)
+	require.NoError(r, err)
+	r.Logger.Print("zEVM sender's ZRC20 TON balance after withdraw: %d", senderZRC20BalanceAfter)
+	r.Logger.Print(
+		"zEVM sender's ZRC20 TON balance diff: %d",
+		big.NewInt(0).Sub(senderZRC20BalanceBefore, senderZRC20BalanceAfter),
+	)
+
+	// Make sure that TON withdrawal CCTX contain outgoing message with exact withdrawal amount
+	lt, hash, err := liteapi.TransactionHashFromString(cctx.GetCurrentOutboundParam().Hash)
+	require.NoError(r, err)
+
+	txs, err := r.Clients.TON.GetTransactions(r.Ctx, 1, r.TONGateway.AccountID(), lt, hash)
+	require.NoError(r, err)
+	require.Len(r, txs, 1)
+
+	// TON coins that were withdrawn from GW to the recipient
+	inMsgAmount := math.NewUint(
+		uint64(txs[0].Msgs.OutMsgs.Values()[0].Value.Info.IntMsgInfo.Value.Grams),
+	)
+
+	require.Equal(r, int(amount.Uint64()), int(inMsgAmount.Uint64()))
+}
+
+// TODO: Add "withdraw_many_concurrent" test
+// https://github.com/zeta-chain/node/issues/3044
diff --git a/e2e/runner/setup_ton.go b/e2e/runner/setup_ton.go
index 07d7939977..c7fe136d38 100644
--- a/e2e/runner/setup_ton.go
+++ b/e2e/runner/setup_ton.go
@@ -101,6 +101,11 @@ func (r *E2ERunner) ensureTONChainParams(gw *ton.AccountInit) error {
 		return errors.Wrap(err, "unable to broadcast TON chain params tx")
 	}
 
+	resetMsg := observertypes.NewMsgResetChainNonces(creator, chainID, 0, 0)
+	if _, err := r.ZetaTxServer.BroadcastTx(utils.OperationalPolicyName, resetMsg); err != nil {
+		return errors.Wrap(err, "unable to broadcast TON chain nonce reset tx")
+	}
+
 	r.Logger.Print("💎Voted for adding TON chain params (localnet). Waiting for confirmation")
 
 	query := &observertypes.QueryGetChainParamsForChainRequest{ChainId: chainID}
diff --git a/e2e/runner/ton.go b/e2e/runner/ton.go
index 8746e25977..eb8e5346ac 100644
--- a/e2e/runner/ton.go
+++ b/e2e/runner/ton.go
@@ -1,12 +1,20 @@
 package runner
 
 import (
+	"math/big"
+	"time"
+
 	"cosmossdk.io/math"
 	eth "github.com/ethereum/go-ethereum/common"
+	"github.com/pkg/errors"
 	"github.com/stretchr/testify/require"
+	"github.com/tonkeeper/tongo/ton"
 	"github.com/tonkeeper/tongo/wallet"
 
+	"github.com/zeta-chain/node/e2e/utils"
+	"github.com/zeta-chain/node/pkg/chains"
 	toncontracts "github.com/zeta-chain/node/pkg/contracts/ton"
+	cctypes "github.com/zeta-chain/node/x/crosschain/types"
 )
 
 // we need to use this send mode due to how wallet V5 works
@@ -16,7 +24,13 @@ import (
 const tonDepositSendCode = toncontracts.SendFlagSeparateFees + toncontracts.SendFlagIgnoreErrors
 
 // TONDeposit deposit TON to Gateway contract
-func (r *E2ERunner) TONDeposit(sender *wallet.Wallet, amount math.Uint, zevmRecipient eth.Address) error {
+func (r *E2ERunner) TONDeposit(
+	sender *wallet.Wallet,
+	amount math.Uint,
+	zevmRecipient eth.Address,
+) (*cctypes.CrossChainTx, error) {
+	chain := chains.TONLocalnet
+
 	require.NotNil(r, r.TONGateway, "TON Gateway is not initialized")
 
 	require.NotNil(r, sender, "Sender wallet is nil")
@@ -30,7 +44,21 @@ func (r *E2ERunner) TONDeposit(sender *wallet.Wallet, amount math.Uint, zevmReci
 		zevmRecipient.Hex(),
 	)
 
-	return r.TONGateway.SendDeposit(r.Ctx, sender, amount, zevmRecipient, tonDepositSendCode)
+	// Send TX
+	err := r.TONGateway.SendDeposit(r.Ctx, sender, amount, zevmRecipient, tonDepositSendCode)
+	if err != nil {
+		return nil, errors.Wrap(err, "failed to send TON deposit")
+	}
+
+	filter := func(cctx *cctypes.CrossChainTx) bool {
+		return cctx.InboundParams.SenderChainId == chain.ChainId &&
+			cctx.InboundParams.Sender == sender.GetAddress().ToRaw()
+	}
+
+	// Wait for cctx
+	cctx := r.WaitForSpecificCCTX(filter, time.Minute)
+
+	return cctx, nil
 }
 
 // TONDepositAndCall deposit TON to Gateway contract with call data.
@@ -39,7 +67,9 @@ func (r *E2ERunner) TONDepositAndCall(
 	amount math.Uint,
 	zevmRecipient eth.Address,
 	callData []byte,
-) error {
+) (*cctypes.CrossChainTx, error) {
+	chain := chains.TONLocalnet
+
 	require.NotNil(r, r.TONGateway, "TON Gateway is not initialized")
 
 	require.NotNil(r, sender, "Sender wallet is nil")
@@ -55,5 +85,43 @@ func (r *E2ERunner) TONDepositAndCall(
 		string(callData),
 	)
 
-	return r.TONGateway.SendDepositAndCall(r.Ctx, sender, amount, zevmRecipient, callData, tonDepositSendCode)
+	err := r.TONGateway.SendDepositAndCall(r.Ctx, sender, amount, zevmRecipient, callData, tonDepositSendCode)
+	if err != nil {
+		return nil, errors.Wrap(err, "failed to send TON deposit and call")
+	}
+
+	filter := func(cctx *cctypes.CrossChainTx) bool {
+		return cctx.InboundParams.SenderChainId == chain.ChainId &&
+			cctx.InboundParams.Sender == sender.GetAddress().ToRaw()
+	}
+
+	// Wait for cctx
+	cctx := r.WaitForSpecificCCTX(filter, time.Minute)
+
+	return cctx, nil
+}
+
+// WithdrawTONZRC20 withdraws an amount of ZRC20 TON tokens
+func (r *E2ERunner) WithdrawTONZRC20(to ton.AccountID, amount *big.Int, approveAmount *big.Int) *cctypes.CrossChainTx {
+	// approve
+	tx, err := r.TONZRC20.Approve(r.ZEVMAuth, r.TONZRC20Addr, approveAmount)
+	require.NoError(r, err)
+	receipt := utils.MustWaitForTxReceipt(r.Ctx, r.ZEVMClient, tx, r.Logger, r.ReceiptTimeout)
+	utils.RequireTxSuccessful(r, receipt, "approve")
+
+	// withdraw
+	tx, err = r.TONZRC20.Withdraw(r.ZEVMAuth, []byte(to.ToRaw()), amount)
+	require.NoError(r, err)
+	r.Logger.EVMTransaction(*tx, "withdraw")
+
+	// wait for tx receipt
+	receipt = utils.MustWaitForTxReceipt(r.Ctx, r.ZEVMClient, tx, r.Logger, r.ReceiptTimeout)
+	utils.RequireTxSuccessful(r, receipt, "withdraw")
+	r.Logger.Info("Receipt txhash %s status %d", receipt.TxHash, receipt.Status)
+
+	// wait for the cctx to be mined
+	cctx := utils.WaitCctxMinedByInboundHash(r.Ctx, tx.Hash().Hex(), r.CctxClient, r.Logger, r.CctxTimeout)
+	utils.RequireCCTXStatus(r, cctx, cctypes.CctxStatus_OutboundMined)
+
+	return cctx
 }
diff --git a/pkg/chains/chain.go b/pkg/chains/chain.go
index 665251eb39..0102e74517 100644
--- a/pkg/chains/chain.go
+++ b/pkg/chains/chain.go
@@ -81,6 +81,12 @@ func (chain Chain) EncodeAddress(b []byte) (string, error) {
 			return "", err
 		}
 		return pk.String(), nil
+	case Consensus_catchain_consensus:
+		acc, err := ton.ParseAccountID(string(b))
+		if err != nil {
+			return "", err
+		}
+		return acc.ToRaw(), nil
 	default:
 		return "", fmt.Errorf("chain id %d not supported", chain.ChainId)
 	}