diff --git a/integration-tests/contract-originate-and-call-contract-lambda-rec.spec.ts b/integration-tests/contract-originate-and-call-contract-lambda-rec.spec.ts
new file mode 100644
index 0000000000..7c580730fb
--- /dev/null
+++ b/integration-tests/contract-originate-and-call-contract-lambda-rec.spec.ts
@@ -0,0 +1,49 @@
+import { Protocols } from "@taquito/taquito";
+import { CONFIGS } from "./config";
+import { recFactApplyStore, recursiveLambda, reduceMap } from "./data/lambda-rec";
+
+CONFIGS().forEach(({ lib, rpc, setup, protocol }) => {
+    const Tezos = lib;
+    const limanetAndAlpha = protocol === Protocols.PtLimaPtL || protocol === Protocols.ProtoALpha ? test : test.skip;
+
+    describe(`Test deploying and interacting with contracts having recursive lambda through the contract api using: ${rpc}`, () => {
+
+        beforeEach(async (done) => {
+            await setup(true);
+            done();
+        })
+
+        limanetAndAlpha('Verify that a contract having the LAMBDA_REC instruction in its code can be deployed', async (done) => {
+            const deployContract = await Tezos.contract.originate({
+                code: recFactApplyStore,
+                storage: { 0: 3 }
+            });
+
+            await deployContract.confirmation();
+            expect(deployContract.hash).toBeDefined();
+            expect(deployContract.status).toEqual('applied');
+
+            done();
+        });
+
+        limanetAndAlpha('Verify that a contract entrypoint having a type lambda can be called with a recursive lambda', async (done) => {
+            const deployContract = await Tezos.contract.originate({
+                code: reduceMap,
+                storage: [1]
+            });
+
+            const contract = await deployContract.contract();
+
+            const op = await contract.methodsObject.default({
+                0: { prim: "Lambda_rec", args: recursiveLambda },
+                1: [1]
+            }).send();
+
+            await op.confirmation();
+            expect(op.hash).toBeDefined();
+            expect(op.status).toEqual('applied');
+
+            done();
+        });
+    });
+})
diff --git a/integration-tests/data/lambda-rec.ts b/integration-tests/data/lambda-rec.ts
new file mode 100644
index 0000000000..988c53eeb2
--- /dev/null
+++ b/integration-tests/data/lambda-rec.ts
@@ -0,0 +1,128 @@
+export const recFactApplyStore = `{ storage (or int (lambda int int));
+    parameter (or (unit %gen) (int %exec));
+    code { UNPAIR;
+           IF_LEFT{ DROP 2;
+                    LAMBDA_REC (pair unit int) int
+                               { UNPAIR;
+                                 DUP 2;
+                                 EQ;
+                                 IF { PUSH int 1 }
+                                    { DUP 2;
+                                      DUP 4;
+                                      DUP 3;
+                                      APPLY;
+                                      PUSH int 1;
+                                      DUP 3;
+                                      SUB;
+                                      EXEC;
+                                      MUL};
+                                 DIP { DROP 3 }};
+                    UNIT;
+                    APPLY;
+                    RIGHT int}
+                  { DIP { ASSERT_RIGHT };
+                    EXEC;
+                    LEFT (lambda int int)};
+           NIL operation;
+           PAIR}}`
+
+export const reduceMap = `parameter (pair (lambda int int) (list int));
+storage (list int);
+code { DIP{NIL int};
+       CAR;
+       DUP;
+       DIP{CAR; PAIR};          # Unpack data and setup accumulator
+       CDR;
+       ITER {PAIR;
+             DUP; CDAR;
+             DIP{ DUP; DIP{CDAR}; DUP;
+                  CAR; DIP{CDDR; SWAP}; EXEC; CONS};
+             PAIR};
+       CDR; DIP{NIL int}; # First reduce
+       ITER {CONS}; # Reverse
+       NIL operation; PAIR}     # Calling convention`
+
+export const recursiveLambda = [
+    [
+        {
+            "prim": "DUP"
+        },
+        {
+            "prim": "EQ"
+        },
+        {
+            "prim": "IF",
+            "args": [
+                [
+                    {
+                        "prim": "PUSH",
+                        "args": [
+                            {
+                                "prim": "int"
+                            },
+                            {
+                                "int": "1"
+                            }
+                        ]
+                    }
+                ],
+                [
+                    {
+                        "prim": "DUP"
+                    },
+                    {
+                        "prim": "DUP",
+                        "args": [
+                            {
+                                "int": "3"
+                            }
+                        ]
+                    },
+                    {
+                        "prim": "PUSH",
+                        "args": [
+                            {
+                                "prim": "int"
+                            },
+                            {
+                                "int": "1"
+                            }
+                        ]
+                    },
+                    {
+                        "prim": "DUP",
+                        "args": [
+                            {
+                                "int": "4"
+                            }
+                        ]
+                    },
+                    {
+                        "prim": "SUB"
+                    },
+                    {
+                        "prim": "EXEC"
+                    },
+                    {
+                        "prim": "MUL"
+                    }
+                ]
+            ]
+        },
+        {
+            "prim": "DIP",
+            "args": [
+                [
+                    {
+                        "prim": "DROP",
+                        "args": [
+                            {
+                                "int": "2"
+                            }
+                        ]
+                    }
+                ]
+            ]
+        }
+    ]
+];
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