diff --git a/integrationTests/relayers/slowTests/common.go b/integrationTests/relayers/slowTests/common.go
index dc7a5750..69816d10 100644
--- a/integrationTests/relayers/slowTests/common.go
+++ b/integrationTests/relayers/slowTests/common.go
@@ -646,6 +646,93 @@ func GenerateUnlistedTokenFromMvx() framework.TestTokenParams {
 	}
 }
 
+// GenerateFrozenToken will generate a token that will be frozen
+func GenerateFrozenToken() framework.TestTokenParams {
+	return framework.TestTokenParams{
+		IssueTokenParams: framework.IssueTokenParams{
+			AbstractTokenIdentifier:          "FROZEN",
+			NumOfDecimalsUniversal:           2,
+			NumOfDecimalsChainSpecific:       2,
+			MvxUniversalTokenTicker:          "FROZEN",
+			MvxChainSpecificTokenTicker:      "FROZEN",
+			MvxUniversalTokenDisplayName:     "TestFROZEN",
+			MvxChainSpecificTokenDisplayName: "TestFROZEN",
+			ValueToMintOnMvx:                 "10000000000",
+			IsMintBurnOnMvX:                  true,
+			IsNativeOnMvX:                    false,
+			HasChainSpecificToken:            false,
+			EthTokenName:                     "EthFROZEN",
+			EthTokenSymbol:                   "FROZEN",
+			ValueToMintOnEth:                 "10000000000",
+			IsMintBurnOnEth:                  true,
+			IsNativeOnEth:                    true,
+			IsFrozen:                         true,
+		},
+		TestOperations: []framework.TokenOperations{
+			{
+				ValueToTransferToMvx: big.NewInt(2000),
+				ValueToSendFromMvX:   nil,
+			},
+			{
+				ValueToTransferToMvx: big.NewInt(1500),
+				ValueToSendFromMvX:   nil,
+				MvxSCCallData:        createScCallData("callPayable", 50000000),
+			},
+		},
+		DeltaBalances: map[framework.HalfBridgeIdentifier]framework.DeltaBalancesOnKeys{
+			framework.FirstHalfBridge: map[string]*framework.DeltaBalanceHolder{
+				framework.Alice: {
+					OnEth:    big.NewInt(-2000 - 1500),
+					OnMvx:    big.NewInt(0),
+					MvxToken: framework.UniversalToken,
+				},
+				framework.Bob: {
+					OnEth:    big.NewInt(0),
+					OnMvx:    big.NewInt(0),
+					MvxToken: framework.UniversalToken,
+				},
+				framework.SafeSC: {
+					OnEth:    big.NewInt(0),
+					OnMvx:    big.NewInt(0),
+					MvxToken: framework.ChainSpecificToken,
+				},
+				framework.CalledTestSC: {
+					OnEth:    big.NewInt(0),
+					OnMvx:    big.NewInt(0),
+					MvxToken: framework.UniversalToken,
+				},
+			},
+			framework.SecondHalfBridge: map[string]*framework.DeltaBalanceHolder{
+				framework.Alice: {
+					OnEth:    big.NewInt(-2000 - 1500 + 1950 + 1450),
+					OnMvx:    big.NewInt(0),
+					MvxToken: framework.UniversalToken,
+				},
+				framework.Bob: {
+					OnEth:    big.NewInt(0),
+					OnMvx:    big.NewInt(0),
+					MvxToken: framework.UniversalToken,
+				},
+				framework.Charlie: {
+					OnEth:    big.NewInt(0),
+					OnMvx:    big.NewInt(0),
+					MvxToken: framework.UniversalToken,
+				},
+				framework.SafeSC: {
+					OnEth:    big.NewInt(0),
+					OnMvx:    big.NewInt(50),
+					MvxToken: framework.ChainSpecificToken,
+				},
+				framework.CalledTestSC: {
+					OnEth:    big.NewInt(0),
+					OnMvx:    big.NewInt(0),
+					MvxToken: framework.UniversalToken,
+				},
+			},
+		},
+	}
+}
+
 func createScCallData(function string, gasLimit uint64, args ...string) []byte {
 	codec := testsCommon.TestMultiversXCodec{}
 	callData := parsers.CallData{
diff --git a/integrationTests/relayers/slowTests/framework/multiversxHandler.go b/integrationTests/relayers/slowTests/framework/multiversxHandler.go
index d1746d93..9796c2ad 100644
--- a/integrationTests/relayers/slowTests/framework/multiversxHandler.go
+++ b/integrationTests/relayers/slowTests/framework/multiversxHandler.go
@@ -22,6 +22,7 @@ const (
 	slashAmount              = "00"
 	zeroStringValue          = "0"
 	canAddSpecialRoles       = "canAddSpecialRoles"
+	canFreeze                = "canFreeze"
 	trueStr                  = "true"
 	esdtRoleLocalMint        = "ESDTRoleLocalMint"
 	esdtRoleLocalBurn        = "ESDTRoleLocalBurn"
@@ -59,6 +60,7 @@ const (
 	pauseFunction                                        = "pause"
 	issueFunction                                        = "issue"
 	setSpecialRoleFunction                               = "setSpecialRole"
+	freezeFunction                                       = "freeze"
 	esdtTransferFunction                                 = "ESDTTransfer"
 	setPairDecimalsFunction                              = "setPairDecimals"
 	addWrappedTokenFunction                              = "addWrappedToken"
@@ -564,6 +566,9 @@ func (handler *MultiversxHandler) issueAndWhitelistTokensWithChainSpecific(ctx c
 	if params.PreventWhitelist {
 		return
 	}
+	if params.IsFrozen {
+		handler.freezeToken(ctx, params)
+	}
 	handler.setLocalRolesForUniversalTokenOnWrapper(ctx, params)
 	handler.transferChainSpecificTokenToSCs(ctx, params)
 	handler.addUniversalTokenToWrapper(ctx, params)
@@ -586,6 +591,9 @@ func (handler *MultiversxHandler) issueAndWhitelistTokens(ctx context.Context, p
 	if params.PreventWhitelist {
 		return
 	}
+	if params.IsFrozen {
+		handler.freezeToken(ctx, params)
+	}
 
 	handler.setRolesForSpecificTokenOnSafe(ctx, params)
 	handler.addMappingInMultisig(ctx, params)
@@ -609,6 +617,8 @@ func (handler *MultiversxHandler) issueUniversalToken(ctx context.Context, param
 		hex.EncodeToString([]byte(params.MvxUniversalTokenTicker)),
 		hex.EncodeToString(valueToMintInt.Bytes()),
 		fmt.Sprintf("%02x", params.NumOfDecimalsUniversal),
+		hex.EncodeToString([]byte(canFreeze)),
+		hex.EncodeToString([]byte(trueStr)),
 		hex.EncodeToString([]byte(canAddSpecialRoles)),
 		hex.EncodeToString([]byte(trueStr))}
 
@@ -635,6 +645,8 @@ func (handler *MultiversxHandler) issueChainSpecificToken(ctx context.Context, p
 		hex.EncodeToString([]byte(params.MvxChainSpecificTokenTicker)),
 		hex.EncodeToString(valueToMintInt.Bytes()),
 		fmt.Sprintf("%02x", params.NumOfDecimalsChainSpecific),
+		hex.EncodeToString([]byte(canFreeze)),
+		hex.EncodeToString([]byte(trueStr)),
 		hex.EncodeToString([]byte(canAddSpecialRoles)),
 		hex.EncodeToString([]byte(trueStr))}
 
@@ -940,6 +952,26 @@ func (handler *MultiversxHandler) setMaxBridgeAmountOnMultitransfer(ctx context.
 	log.Info("multi-transfer set max bridge amount for token tx executed", "hash", hash, "status", txResult.Status)
 }
 
+func (handler *MultiversxHandler) freezeToken(ctx context.Context, params IssueTokenParams) {
+	tkData := handler.TokensRegistry.GetTokenData(params.AbstractTokenIdentifier)
+
+	scCallParams := []string{
+		hex.EncodeToString([]byte(tkData.MvxUniversalToken)),
+		handler.BobKeys.MvxAddress.Hex(),
+	}
+
+	hash, txResult := handler.scCallAndCheckTx(
+		ctx,
+		handler.OwnerKeys,
+		handler.ESDTSystemContractAddress,
+		zeroStringValue,
+		setCallsGasLimit,
+		freezeFunction,
+		scCallParams)
+
+	log.Info("freeze token tx executed", "hash", hash, "status", txResult.Status)
+}
+
 func (handler *MultiversxHandler) getTokenNameFromResult(txResult data.TransactionOnNetwork) string {
 	for _, event := range txResult.Logs.Events {
 		if event.Identifier == issueFunction {
diff --git a/integrationTests/relayers/slowTests/framework/types.go b/integrationTests/relayers/slowTests/framework/types.go
index f5a0dca9..40bd55ce 100644
--- a/integrationTests/relayers/slowTests/framework/types.go
+++ b/integrationTests/relayers/slowTests/framework/types.go
@@ -14,6 +14,7 @@ type IssueTokenParams struct {
 	InitialSupplyParams
 	AbstractTokenIdentifier string
 	PreventWhitelist        bool
+	IsFrozen                bool
 
 	// MultiversX
 	NumOfDecimalsUniversal           int
diff --git a/integrationTests/relayers/slowTests/refundWithChainSimulator_test.go b/integrationTests/relayers/slowTests/refundWithChainSimulator_test.go
index 116385c5..37bfea33 100644
--- a/integrationTests/relayers/slowTests/refundWithChainSimulator_test.go
+++ b/integrationTests/relayers/slowTests/refundWithChainSimulator_test.go
@@ -367,6 +367,15 @@ func TestRelayersShouldExecuteTransfersWithRefund(t *testing.T) {
 			mexToken,
 		)
 	})
+	t.Run("frozen token for receiver should refund", func(t *testing.T) {
+		frozenToken := GenerateFrozenToken()
+
+		testRelayersWithChainSimulatorAndTokensAndRefund(
+			t,
+			make(chan error),
+			frozenToken,
+		)
+	})
 }
 
 func testRelayersWithChainSimulatorAndTokensAndRefund(tb testing.TB, manualStopChan chan error, tokens ...framework.TestTokenParams) {