diff --git a/contracts/test/GatewayV2.t.sol b/contracts/test/GatewayV2.t.sol
new file mode 100644
index 0000000000..323d2fb326
--- /dev/null
+++ b/contracts/test/GatewayV2.t.sol
@@ -0,0 +1,227 @@
+// SPDX-License-Identifier: Apache-2.0
+pragma solidity 0.8.25;
+
+import {Test} from "forge-std/Test.sol";
+import {Strings} from "openzeppelin/utils/Strings.sol";
+import {console} from "forge-std/console.sol";
+
+import {BeefyClient} from "../src/BeefyClient.sol";
+
+import {IGateway} from "../src/interfaces/IGateway.sol";
+import {IInitializable} from "../src/interfaces/IInitializable.sol";
+import {IUpgradable} from "../src/interfaces/IUpgradable.sol";
+import {Gateway} from "../src/Gateway.sol";
+import {MockGateway} from "./mocks/MockGateway.sol";
+import {MockGatewayV2} from "./mocks/MockGatewayV2.sol";
+import {GatewayProxy} from "../src/GatewayProxy.sol";
+
+import {AgentExecutor} from "../src/AgentExecutor.sol";
+import {Agent} from "../src/Agent.sol";
+import {Verification} from "../src/Verification.sol";
+import {SubstrateTypes} from "./../src/SubstrateTypes.sol";
+import {
+    MultiAddress,
+    multiAddressFromBytes32,
+    multiAddressFromBytes20
+} from "../src/MultiAddress.sol";
+import {
+    OperatingMode,
+    ParaID,
+    CommandV2,
+    CommandKind,
+    InboundMessageV2
+} from "../src/Types.sol";
+
+import {NativeTransferFailed} from "../src/utils/SafeTransfer.sol";
+import {PricingStorage} from "../src/storage/PricingStorage.sol";
+import {IERC20} from "../src/interfaces/IERC20.sol";
+import {TokenLib} from "../src/TokenLib.sol";
+import {Token} from "../src/Token.sol";
+
+import {Initializer} from "../src/Initializer.sol";
+import {Constants} from "../src/Constants.sol";
+
+import {
+    UpgradeParams,
+    SetOperatingModeParams,
+    UnlockNativeTokenParams,
+    RegisterForeignTokenParams,
+    MintForeignTokenParams,
+    CallContractParams
+} from "../src/v2/Types.sol";
+
+import {
+    AgentExecuteCommand,
+    InboundMessage,
+    OperatingMode,
+    ParaID,
+    Command
+} from "../src/v1/Types.sol";
+
+import {WETH9} from "canonical-weth/WETH9.sol";
+import {UD60x18, ud60x18, convert} from "prb/math/src/UD60x18.sol";
+
+contract GatewayV2Test is Test {
+    // Emitted when token minted/burnt/transfered
+    event Transfer(address indexed from, address indexed to, uint256 value);
+
+    address public assetHubAgent;
+
+    address public relayer;
+    bytes32 public relayerRewardAddress = keccak256("relayerRewardAddress");
+
+    bytes32[] public proof =
+        [bytes32(0x2f9ee6cfdf244060dc28aa46347c5219e303fc95062dd672b4e406ca5c29764b)];
+    bytes public parachainHeaderProof = bytes("validProof");
+
+    MockGateway public gatewayLogic;
+    GatewayProxy public gateway;
+
+    WETH9 public token;
+
+    address public account1;
+    address public account2;
+
+    // tokenID for DOT
+    bytes32 public dotTokenID;
+
+    function setUp() public {
+        AgentExecutor executor = new AgentExecutor();
+        gatewayLogic = new MockGateway(address(0), address(executor));
+        Initializer.Config memory config = Initializer.Config({
+            mode: OperatingMode.Normal,
+            deliveryCost: 1e10,
+            registerTokenFee: 0,
+            assetHubCreateAssetFee: 1e10,
+            assetHubReserveTransferFee: 1e10,
+            exchangeRate: ud60x18(0.0025e18),
+            multiplier: ud60x18(1e18),
+            rescueOperator: 0x4B8a782D4F03ffcB7CE1e95C5cfe5BFCb2C8e967,
+            foreignTokenDecimals: 10,
+            maxDestinationFee: 1e11
+        });
+        gateway = new GatewayProxy(address(gatewayLogic), abi.encode(config));
+        MockGateway(address(gateway)).setCommitmentsAreVerified(true);
+
+        SetOperatingModeParams memory params =
+            SetOperatingModeParams({mode: OperatingMode.Normal});
+        MockGateway(address(gateway)).v1_handleSetOperatingMode_public(
+            abi.encode(params)
+        );
+
+        assetHubAgent = IGateway(address(gateway)).agentOf(Constants.ASSET_HUB_AGENT_ID);
+
+        // fund the message relayer account
+        relayer = makeAddr("relayer");
+
+        // Features
+
+        token = new WETH9();
+
+        account1 = makeAddr("account1");
+        account2 = makeAddr("account2");
+
+        // create tokens for account 1
+        hoax(account1);
+        token.deposit{value: 500}();
+
+        // create tokens for account 2
+        token.deposit{value: 500}();
+
+        dotTokenID = bytes32(uint256(1));
+    }
+
+    function recipientAddress32() internal pure returns (MultiAddress memory) {
+        return multiAddressFromBytes32(keccak256("recipient"));
+    }
+
+    function recipientAddress20() internal pure returns (MultiAddress memory) {
+        return multiAddressFromBytes20(bytes20(keccak256("recipient")));
+    }
+
+    function makeMockProof() public pure returns (Verification.Proof memory) {
+        return Verification.Proof({
+            header: Verification.ParachainHeader({
+                parentHash: bytes32(0),
+                number: 0,
+                stateRoot: bytes32(0),
+                extrinsicsRoot: bytes32(0),
+                digestItems: new Verification.DigestItem[](0)
+            }),
+            headProof: Verification.HeadProof({pos: 0, width: 0, proof: new bytes32[](0)}),
+            leafPartial: Verification.MMRLeafPartial({
+                version: 0,
+                parentNumber: 0,
+                parentHash: bytes32(0),
+                nextAuthoritySetID: 0,
+                nextAuthoritySetLen: 0,
+                nextAuthoritySetRoot: 0
+            }),
+            leafProof: new bytes32[](0),
+            leafProofOrder: 0
+        });
+    }
+
+    function makeMockCommand() public pure returns (CommandV2[] memory) {
+        CommandV2[] memory commands = new CommandV2[](1);
+        commands[0] =
+            CommandV2({kind: CommandKind.CreateAgent, gas: 500_000, payload: ""});
+        return commands;
+    }
+
+    /**
+     * Message Verification
+     */
+    function testSubmitHappyPath() public {
+        // Expect the gateway to emit `InboundMessageDispatched`
+        vm.expectEmit(true, false, false, true);
+        emit IGateway.InboundMessageDispatched(1, true, relayerRewardAddress);
+
+        hoax(relayer, 1 ether);
+        IGateway(address(gateway)).v2_submit(
+            InboundMessageV2({
+                origin: keccak256("666"),
+                nonce: 1,
+                commands: makeMockCommand()
+            }),
+            proof,
+            makeMockProof(),
+            relayerRewardAddress
+        );
+    }
+
+    function testSubmitFailInvalidNonce() public {
+        InboundMessageV2 memory message = InboundMessageV2({
+            origin: keccak256("666"),
+            nonce: 1,
+            commands: makeMockCommand()
+        });
+
+        hoax(relayer, 1 ether);
+        IGateway(address(gateway)).v2_submit(
+            message, proof, makeMockProof(), relayerRewardAddress
+        );
+
+        vm.expectRevert(IGateway.InvalidNonce.selector);
+        hoax(relayer, 1 ether);
+        IGateway(address(gateway)).v2_submit(
+            message, proof, makeMockProof(), relayerRewardAddress
+        );
+    }
+
+    function testSubmitFailInvalidProof() public {
+        InboundMessageV2 memory message = InboundMessageV2({
+            origin: keccak256("666"),
+            nonce: 1,
+            commands: makeMockCommand()
+        });
+
+        MockGateway(address(gateway)).setCommitmentsAreVerified(false);
+        vm.expectRevert(IGateway.InvalidProof.selector);
+
+        hoax(relayer, 1 ether);
+        IGateway(address(gateway)).v2_submit(
+            message, proof, makeMockProof(), relayerRewardAddress
+        );
+    }
+}