diff --git a/tests/e2e_tests/test_set_subnet_identity_extrinsic.py b/tests/e2e_tests/test_set_subnet_identity_extrinsic.py
new file mode 100644
index 0000000000..e60cc69db3
--- /dev/null
+++ b/tests/e2e_tests/test_set_subnet_identity_extrinsic.py
@@ -0,0 +1,104 @@
+import pytest
+
+from bittensor.core.chain_data import SubnetIdentity
+from bittensor.utils.btlogging import logging
+
+
+@pytest.mark.asyncio
+async def test_set_subnet_identity_extrinsic_happy_pass(subtensor, alice_wallet):
+    logging.console.info(
+        "[magenta]Testing `set_subnet_identity_extrinsic` with success result.[/magenta]"
+    )
+
+    netuid = 2
+
+    # Register a subnet, netuid 2
+    assert subtensor.register_subnet(alice_wallet), "Subnet wasn't created"
+
+    # Verify subnet <netuid> created successfully
+    assert subtensor.subnet_exists(netuid), "Subnet wasn't created successfully"
+
+    # make sure subnet_identity is empty
+    assert (
+        subtensor.subnet(netuid).subnet_identity is None
+    ), "Subnet identity should be None before set"
+
+    # prepare SubnetIdentity for subnet
+    subnet_identity = SubnetIdentity(
+        subnet_name="e2e test subnet",
+        github_repo="e2e test repo",
+        subnet_contact="e2e test contact",
+        subnet_url="e2e test url",
+        discord="e2e test discord",
+        description="e2e test description",
+        additional="e2e test additional",
+    )
+
+    # set SubnetIdentity to subnet
+    assert (
+        subtensor.set_subnet_identity(
+            wallet=alice_wallet,
+            netuid=netuid,
+            subnet_identity=subnet_identity,
+        )[0]
+        is True
+    ), "Set subnet identity failed"
+
+    # check SubnetIdentity of the subnet
+    assert subtensor.subnet(netuid).subnet_identity == subnet_identity
+
+
+@pytest.mark.asyncio
+async def test_set_subnet_identity_extrinsic_failed(
+    subtensor, alice_wallet, bob_wallet
+):
+    """
+    Test case for verifying the behavior of the `set_subnet_identity_extrinsic` function in the
+    scenario where the result of the function is expected to fail. It ensures proper handling
+    and validation when attempting to set the subnet identity under specific conditions.
+
+    Args:
+        subtensor: The instance of the subtensor class under test.
+        alice_wallet: A mock or test wallet associated with Alice, used for creating a subnet.
+        bob_wallet: A mock or test wallet associated with Bob, used for setting the subnet identity.
+
+    Decorators:
+        @pytest.mark.asyncio: Marks this test as an asynchronous test.
+    """
+    logging.console.info(
+        "[magenta]Testing `set_subnet_identity_extrinsic` with failed result.[/magenta]"
+    )
+
+    netuid = 2
+
+    # Register a subnet, netuid 2
+    assert subtensor.register_subnet(alice_wallet), "Subnet wasn't created"
+
+    # Verify subnet <netuid> created successfully
+    assert subtensor.subnet_exists(netuid), "Subnet wasn't created successfully"
+
+    # make sure subnet_identity is empty
+    assert (
+        subtensor.subnet(netuid).subnet_identity is None
+    ), "Subnet identity should be None before set"
+
+    # prepare SubnetIdentity for subnet
+    subnet_identity = SubnetIdentity(
+        subnet_name="e2e test subnet",
+        github_repo="e2e test repo",
+        subnet_contact="e2e test contact",
+        subnet_url="e2e test url",
+        discord="e2e test discord",
+        description="e2e test description",
+        additional="e2e test additional",
+    )
+
+    # set SubnetIdentity to subnet
+    assert (
+        subtensor.set_subnet_identity(
+            wallet=bob_wallet,
+            netuid=netuid,
+            subnet_identity=subnet_identity,
+        )[0]
+        is False
+    ), "Set subnet identity failed"