diff --git a/app/app.go b/app/app.go
index 67b0b7800..cd05f8084 100644
--- a/app/app.go
+++ b/app/app.go
@@ -94,6 +94,7 @@ import (
 	"github.com/spf13/cast"
 
 	"github.com/babylonchain/babylon/app/upgrades"
+	"github.com/babylonchain/babylon/app/upgrades/vanilla"
 	bbn "github.com/babylonchain/babylon/types"
 
 	appkeepers "github.com/babylonchain/babylon/app/keepers"
@@ -158,8 +159,10 @@ var (
 	}
 
 	// software upgrades and forks
-	Upgrades = []upgrades.Upgrade{}
-	Forks    = []upgrades.Fork{}
+	Upgrades = []upgrades.Upgrade{
+		vanilla.Upgrade,
+	}
+	Forks = []upgrades.Fork{}
 )
 
 func init() {
diff --git a/app/upgrades/vanilla/upgrades.go b/app/upgrades/vanilla/upgrades.go
index 1cc0c9060..156e5de72 100644
--- a/app/upgrades/vanilla/upgrades.go
+++ b/app/upgrades/vanilla/upgrades.go
@@ -32,7 +32,6 @@ func CreateUpgradeHandler(
 	keepers *keepers.AppKeepers,
 ) upgradetypes.UpgradeHandler {
 	return func(context context.Context, _plan upgradetypes.Plan, fromVM module.VersionMap) (module.VersionMap, error) {
-
 		ctx := sdk.UnwrapSDKContext(context)
 
 		propVanilla(ctx, &keepers.AccountKeeper, &keepers.BTCStakingKeeper)
diff --git a/test/e2e/configurer/base.go b/test/e2e/configurer/base.go
index 6744fff94..d7d474be1 100644
--- a/test/e2e/configurer/base.go
+++ b/test/e2e/configurer/base.go
@@ -19,6 +19,7 @@ import (
 	"github.com/babylonchain/babylon/types"
 	types2 "github.com/babylonchain/babylon/x/btccheckpoint/types"
 	"github.com/stretchr/testify/require"
+	"golang.org/x/sync/errgroup"
 )
 
 // baseConfigurer is the base implementation for the
@@ -39,16 +40,18 @@ const defaultSyncUntilHeight = 3
 func (bc *baseConfigurer) ClearResources() error {
 	bc.t.Log("tearing down e2e integration test suite...")
 
-	if err := bc.containerManager.ClearResources(); err != nil {
-		return err
-	}
+	g := new(errgroup.Group)
+	g.Go(func() error {
+		return bc.containerManager.ClearResources()
+	})
 
 	for _, chainConfig := range bc.chainConfigs {
-		if err := os.RemoveAll(chainConfig.DataDir); err != nil {
-			return err
-		}
+		chainConfig := chainConfig
+		g.Go(func() error {
+			return os.RemoveAll(chainConfig.DataDir)
+		})
 	}
-	return nil
+	return g.Wait()
 }
 
 func (bc *baseConfigurer) GetChainConfig(chainIndex int) *chain.Config {
diff --git a/test/e2e/configurer/chain/chain.go b/test/e2e/configurer/chain/chain.go
index 4d5e1ec03..2c16e9f4b 100644
--- a/test/e2e/configurer/chain/chain.go
+++ b/test/e2e/configurer/chain/chain.go
@@ -2,10 +2,12 @@ package chain
 
 import (
 	"fmt"
-	ibctesting "github.com/cosmos/ibc-go/v8/testing"
 	"testing"
 	"time"
 
+	govv1 "cosmossdk.io/api/cosmos/gov/v1"
+	ibctesting "github.com/cosmos/ibc-go/v8/testing"
+
 	coretypes "github.com/cometbft/cometbft/rpc/core/types"
 	sdk "github.com/cosmos/cosmos-sdk/types"
 	"github.com/stretchr/testify/require"
@@ -173,3 +175,10 @@ func (c *Config) GetNodeAtIndex(nodeIndex int) (*NodeConfig, error) {
 	}
 	return c.NodeConfigs[nodeIndex], nil
 }
+
+// TxGovVoteFromAllNodes votes in a gov prop from all nodes wallet.
+func (c *Config) TxGovVoteFromAllNodes(propID int, option govv1.VoteOption, overallFlags ...string) {
+	for _, n := range c.NodeConfigs {
+		n.TxGovVote(n.WalletName, propID, option, overallFlags...)
+	}
+}
diff --git a/test/e2e/configurer/chain/commands.go b/test/e2e/configurer/chain/commands.go
index 8d8c59b1a..bb789ec4b 100644
--- a/test/e2e/configurer/chain/commands.go
+++ b/test/e2e/configurer/chain/commands.go
@@ -12,6 +12,7 @@ import (
 	"strings"
 	"time"
 
+	govv1 "cosmossdk.io/api/cosmos/gov/v1"
 	txformat "github.com/babylonchain/babylon/btctxformatter"
 	"github.com/babylonchain/babylon/test/e2e/containers"
 	"github.com/babylonchain/babylon/test/e2e/initialization"
@@ -349,6 +350,43 @@ func (n *NodeConfig) TxMultisignBroadcast(walletNameMultisig, txFileFullPath str
 	n.TxBroadcast(signedTxToBroadcast)
 }
 
+// TxGovPropSubmitProposal submits a governance proposal from the file inside the container,
+// if the file is local, remind to add it to the mounting point in container.
+func (n *NodeConfig) TxGovPropSubmitProposal(proposalJsonFilePath, from string, overallFlags ...string) int {
+	n.LogActionF("submitting new v1 proposal type %s", proposalJsonFilePath)
+
+	cmd := []string{
+		"babylond", "tx", "gov", "submit-proposal", proposalJsonFilePath,
+		fmt.Sprintf("--from=%s", from),
+	}
+
+	_, _, err := n.containerManager.ExecTxCmd(n.t, n.chainId, n.Name, append(cmd, overallFlags...))
+	require.NoError(n.t, err)
+
+	n.WaitForNextBlock()
+
+	props := n.QueryProposals()
+	require.GreaterOrEqual(n.t, len(props.Proposals), 1)
+
+	n.LogActionF("successfully submitted new v1 proposal type")
+	return int(props.Proposals[len(props.Proposals)-1].ProposalId)
+}
+
+// TxGovVote votes in a governance proposal
+func (n *NodeConfig) TxGovVote(from string, propID int, option govv1.VoteOption, overallFlags ...string) {
+	n.LogActionF("submitting vote %s to prop %d", option, propID)
+
+	cmd := []string{
+		"babylond", "tx", "gov", "vote", fmt.Sprintf("%d", propID), option.String(),
+		fmt.Sprintf("--from=%s", from),
+	}
+
+	_, _, err := n.containerManager.ExecTxCmd(n.t, n.chainId, n.Name, append(cmd, overallFlags...))
+	require.NoError(n.t, err)
+
+	n.LogActionF("successfully submitted vote %s to prop %d", option, propID)
+}
+
 // WriteFile writes a new file in the config dir of the node where it is volume mounted to the
 // babylon home inside the container and returns the full file path inside the container.
 func (n *NodeConfig) WriteFile(fileName, content string) (fullFilePathInContainer string) {
diff --git a/test/e2e/configurer/chain/node.go b/test/e2e/configurer/chain/node.go
index 8e185ec51..2a8f1ccd5 100644
--- a/test/e2e/configurer/chain/node.go
+++ b/test/e2e/configurer/chain/node.go
@@ -153,6 +153,13 @@ func (n *NodeConfig) WaitForNextBlocks(numberOfBlocks uint64) {
 	}, fmt.Sprintf("Timed out waiting for block %d. Current height is: %d", latest, blockToWait))
 }
 
+func (n *NodeConfig) WaitForBlockHeight(blkHeight uint64) {
+	n.WaitForCondition(func() bool {
+		newLatest := n.LatestBlockNumber()
+		return newLatest > blkHeight
+	}, fmt.Sprintf("Timed out waiting for block %d.", blkHeight))
+}
+
 func (n *NodeConfig) extractOperatorAddressIfValidator() error {
 	if !n.IsValidator {
 		n.t.Logf("node (%s) is not a validator, skipping", n.Name)
diff --git a/test/e2e/configurer/chain/queries.go b/test/e2e/configurer/chain/queries.go
index c0bb049f8..f7b2c9cb5 100644
--- a/test/e2e/configurer/chain/queries.go
+++ b/test/e2e/configurer/chain/queries.go
@@ -19,6 +19,7 @@ import (
 	"github.com/cosmos/cosmos-sdk/types/query"
 	authtypes "github.com/cosmos/cosmos-sdk/x/auth/types"
 	banktypes "github.com/cosmos/cosmos-sdk/x/bank/types"
+	govtypesv1 "github.com/cosmos/cosmos-sdk/x/gov/types/v1beta1"
 	"github.com/stretchr/testify/require"
 
 	"github.com/babylonchain/babylon/test/e2e/util"
@@ -406,6 +407,29 @@ func (n *NodeConfig) QueryWasmSmart(contract string, msg string, result any) err
 	return nil
 }
 
+func (n *NodeConfig) QueryProposal(proposalNumber int) govtypesv1.QueryProposalResponse {
+	path := fmt.Sprintf("cosmos/gov/v1beta1/proposals/%d", proposalNumber)
+	bz, err := n.QueryGRPCGateway(path, url.Values{})
+	require.NoError(n.t, err)
+
+	var resp govtypesv1.QueryProposalResponse
+	err = util.Cdc.UnmarshalJSON(bz, &resp)
+	require.NoError(n.t, err)
+
+	return resp
+}
+
+func (n *NodeConfig) QueryProposals() govtypesv1.QueryProposalsResponse {
+	bz, err := n.QueryGRPCGateway("cosmos/gov/v1beta1/proposals", url.Values{})
+	require.NoError(n.t, err)
+
+	var resp govtypesv1.QueryProposalsResponse
+	err = util.Cdc.UnmarshalJSON(bz, &resp)
+	require.NoError(n.t, err)
+
+	return resp
+}
+
 func (n *NodeConfig) QueryWasmSmartObject(contract string, msg string) (resultObject map[string]interface{}, err error) {
 	err = n.QueryWasmSmart(contract, msg, &resultObject)
 	if err != nil {
@@ -413,3 +437,19 @@ func (n *NodeConfig) QueryWasmSmartObject(contract string, msg string) (resultOb
 	}
 	return resultObject, nil
 }
+
+func (n *NodeConfig) QueryTx(txHash string, overallFlags ...string) sdk.TxResponse {
+	cmd := []string{
+		"babylond", "q", "tx", "--type=hash", txHash, "--output=json",
+		n.FlagChainID(),
+	}
+
+	out, _, err := n.containerManager.ExecCmd(n.t, n.Name, append(cmd, overallFlags...), "")
+	require.NoError(n.t, err)
+
+	var txResp sdk.TxResponse
+	err = util.Cdc.UnmarshalJSON(out.Bytes(), &txResp)
+	require.NoError(n.t, err)
+
+	return txResp
+}
diff --git a/test/e2e/configurer/factory.go b/test/e2e/configurer/factory.go
index bcac549e5..0182a40dc 100644
--- a/test/e2e/configurer/factory.go
+++ b/test/e2e/configurer/factory.go
@@ -195,3 +195,20 @@ func NewBTCStakingConfigurer(t *testing.T, isDebugLogEnabled bool) (Configurer,
 		containerManager,
 	), nil
 }
+
+// NewSoftwareUpgradeTest returns a new Configurer for Software Upgrade testing
+func NewSoftwareUpgradeTest(t *testing.T, isDebugLogEnabled bool) (Configurer, error) {
+	containerManager, err := containers.NewManager(isDebugLogEnabled, false)
+	if err != nil {
+		return nil, err
+	}
+
+	return NewCurrentBranchConfigurer(t,
+		[]*chain.Config{
+			// we only need 1 chain for testing upgrade
+			chain.New(t, containerManager, initialization.ChainAID, validatorConfigsChainA, nil),
+		},
+		baseSetup, // base set up
+		containerManager,
+	), nil
+}
diff --git a/test/e2e/containers/containers.go b/test/e2e/containers/containers.go
index 09782d7f1..737af78ea 100644
--- a/test/e2e/containers/containers.go
+++ b/test/e2e/containers/containers.go
@@ -13,6 +13,7 @@ import (
 	"github.com/ory/dockertest/v3"
 	"github.com/ory/dockertest/v3/docker"
 	"github.com/stretchr/testify/require"
+	"golang.org/x/sync/errgroup"
 )
 
 const (
@@ -264,6 +265,7 @@ func (m *Manager) RunNodeResource(chainId string, containerName, valCondifDir st
 		Mounts: []string{
 			fmt.Sprintf("%s/:%s", valCondifDir, BabylonHomePath),
 			fmt.Sprintf("%s/bytecode:/bytecode", pwd),
+			fmt.Sprintf("%s/upgrades:/upgrades", pwd),
 		},
 	}
 
@@ -321,17 +323,20 @@ func (m *Manager) RemoveNodeResource(containerName string) error {
 }
 
 // ClearResources removes all outstanding Docker resources created by the Manager.
-func (m *Manager) ClearResources() error {
+func (m *Manager) ClearResources() (e error) {
+	g := new(errgroup.Group)
 	for _, resource := range m.resources {
-		if err := m.pool.Purge(resource); err != nil {
-			return err
-		}
+		resource := resource
+		g.Go(func() error {
+			return m.pool.Purge(resource)
+		})
 	}
 
-	if err := m.pool.RemoveNetwork(m.network); err != nil {
-		return err
-	}
-	return nil
+	g.Go(func() error {
+		return m.pool.RemoveNetwork(m.network)
+	})
+
+	return g.Wait()
 }
 
 func noRestart(config *docker.HostConfig) {
diff --git a/test/e2e/e2e_test.go b/test/e2e/e2e_test.go
index 4c877c6c8..0eb9240dd 100644
--- a/test/e2e/e2e_test.go
+++ b/test/e2e/e2e_test.go
@@ -35,3 +35,8 @@ func TestBTCTimestampingPhase2RlyTestSuite(t *testing.T) {
 func TestBTCStakingTestSuite(t *testing.T) {
 	suite.Run(t, new(BTCStakingTestSuite))
 }
+
+// TestSoftwareUpgradeCurrentBranchTestSuite tests software upgrade protocol end-to-end
+func TestSoftwareUpgradeCurrentBranchTestSuite(t *testing.T) {
+	suite.Run(t, new(SoftwareUpgradeCurrentBranchTestSuite))
+}
diff --git a/test/e2e/initialization/config.go b/test/e2e/initialization/config.go
index 9e5f95a16..9af54728e 100644
--- a/test/e2e/initialization/config.go
+++ b/test/e2e/initialization/config.go
@@ -6,7 +6,7 @@ import (
 	"path/filepath"
 	"time"
 
-	"cosmossdk.io/math"
+	sdkmath "cosmossdk.io/math"
 
 	cryptocodec "github.com/cosmos/cosmos-sdk/crypto/codec"
 	"github.com/cosmos/cosmos-sdk/crypto/keys/ed25519"
@@ -17,6 +17,8 @@ import (
 	crisistypes "github.com/cosmos/cosmos-sdk/x/crisis/types"
 	"github.com/cosmos/cosmos-sdk/x/genutil"
 	genutiltypes "github.com/cosmos/cosmos-sdk/x/genutil/types"
+	govtypes "github.com/cosmos/cosmos-sdk/x/gov/types"
+	govv1 "github.com/cosmos/cosmos-sdk/x/gov/types/v1"
 	minttypes "github.com/cosmos/cosmos-sdk/x/mint/types"
 	staketypes "github.com/cosmos/cosmos-sdk/x/staking/types"
 	"github.com/cosmos/gogoproto/proto"
@@ -67,9 +69,9 @@ const (
 )
 
 var (
-	StakeAmountIntA  = math.NewInt(StakeAmountA)
+	StakeAmountIntA  = sdkmath.NewInt(StakeAmountA)
 	StakeAmountCoinA = sdk.NewCoin(BabylonDenom, StakeAmountIntA)
-	StakeAmountIntB  = math.NewInt(StakeAmountB)
+	StakeAmountIntB  = sdkmath.NewInt(StakeAmountB)
 	StakeAmountCoinB = sdk.NewCoin(BabylonDenom, StakeAmountIntB)
 
 	InitBalanceStrA = fmt.Sprintf("%d%s", BabylonBalanceA, BabylonDenom)
@@ -216,6 +218,11 @@ func initGenesis(chain *internalChain, votingPeriod, expeditedVotingPeriod time.
 		return err
 	}
 
+	err = updateModuleGenesis(appGenState, govtypes.ModuleName, &govv1.GenesisState{}, updateGovGenesis)
+	if err != nil {
+		return err
+	}
+
 	err = updateModuleGenesis(appGenState, minttypes.ModuleName, &minttypes.GenesisState{}, updateMintGenesis)
 	if err != nil {
 		return err
@@ -288,6 +295,13 @@ func updateBankGenesis(bankGenState *banktypes.GenesisState) {
 	})
 }
 
+func updateGovGenesis(govGenState *govv1.GenesisState) {
+	govGenState.Params.MinDeposit = sdk.NewCoins(sdk.NewCoin(BabylonDenom, sdkmath.NewInt(100)))
+
+	votingPeriod := time.Duration(time.Second * 10)
+	govGenState.Params.VotingPeriod = &votingPeriod
+}
+
 func updateMintGenesis(mintGenState *minttypes.GenesisState) {
 	mintGenState.Params.MintDenom = BabylonDenom
 }
@@ -299,7 +313,7 @@ func updateStakeGenesis(stakeGenState *staketypes.GenesisState) {
 		MaxEntries:        7,
 		HistoricalEntries: 10000,
 		UnbondingTime:     staketypes.DefaultUnbondingTime,
-		MinCommissionRate: math.LegacyZeroDec(),
+		MinCommissionRate: sdkmath.LegacyZeroDec(),
 	}
 }
 
diff --git a/test/e2e/software_upgrade_current_branch_e2e_test.go b/test/e2e/software_upgrade_current_branch_e2e_test.go
new file mode 100644
index 000000000..298285437
--- /dev/null
+++ b/test/e2e/software_upgrade_current_branch_e2e_test.go
@@ -0,0 +1,85 @@
+package e2e
+
+import (
+	"fmt"
+
+	govv1 "cosmossdk.io/api/cosmos/gov/v1"
+	"github.com/stretchr/testify/suite"
+
+	"github.com/babylonchain/babylon/test/e2e/configurer"
+)
+
+const (
+	// Mount path in container is fmt.Sprintf("%s/upgrades:/upgrades", pwd)
+	vanillaUpgradeFilePath = "/upgrades/vanilla.json"
+)
+
+type SoftwareUpgradeCurrentBranchTestSuite struct {
+	suite.Suite
+
+	configurer configurer.Configurer
+}
+
+func (s *SoftwareUpgradeCurrentBranchTestSuite) SetupSuite() {
+	s.T().Log("setting up e2e integration test suite...")
+	var err error
+
+	// The e2e test flow is as follows:
+	//
+	// 1. Configure 1 chain with some validator nodes
+	// 2. Execute various e2e tests
+	s.configurer, err = configurer.NewSoftwareUpgradeTest(s.T(), true)
+	s.NoError(err)
+	err = s.configurer.ConfigureChains()
+	s.NoError(err)
+	err = s.configurer.RunSetup()
+	s.NoError(err)
+}
+
+func (s *SoftwareUpgradeCurrentBranchTestSuite) TearDownSuite() {
+	err := s.configurer.ClearResources()
+	s.Require().NoError(err)
+}
+
+// Test1UpgradeVanilla is an end-to-end test for
+// running a software upgrade proposal
+func (s *SoftwareUpgradeCurrentBranchTestSuite) Test1UpgradeVanilla() {
+	// chain is already start the chain with software upgrade available
+	chainA := s.configurer.GetChainConfig(0)
+	chainA.WaitUntilHeight(1)
+
+	nonValidatorNode, err := chainA.GetNodeAtIndex(2)
+	s.NoError(err)
+
+	fpsBeforeUpgrade := nonValidatorNode.QueryFinalityProviders()
+
+	// software upgrade gov prop
+	propID := nonValidatorNode.TxGovPropSubmitProposal(vanillaUpgradeFilePath, nonValidatorNode.WalletName)
+	s.Equal(1, propID)
+
+	// vote from all nodes
+	chainA.TxGovVoteFromAllNodes(propID, govv1.VoteOption_VOTE_OPTION_YES)
+
+	tx := nonValidatorNode.QueryProposal(propID)
+	fmt.Printf("\n prop %+v", tx)
+
+	// waits for block to reach from plan + 1
+	// tricky to get current heigth and set it in the json, because the file is
+	// load at the mounting point of the node it could be created at runtime and
+	// stored in the filesystem of the container
+	nonValidatorNode.WaitForBlockHeight(21)
+
+	tx = nonValidatorNode.QueryProposal(propID)
+	fmt.Printf("\n prop %+v", tx)
+
+	// verifies vanilla upgrade was completed
+	fpsAfterUpgrade := nonValidatorNode.QueryFinalityProviders()
+	s.Equal(len(fpsBeforeUpgrade)+1, len(fpsAfterUpgrade))
+
+	// docker logs -f
+	// 2:09AM ERR BINARY UPDATED BEFORE TRIGGER! UPGRADE "vanilla" - in binary but not executed on chain. Downgrade your binary module=x/upgrade
+	// 2:09AM ERR error in proxyAppConn.FinalizeBlock err="BINARY UPDATED BEFORE TRIGGER! UPGRADE \"vanilla\" - in binary but not executed on chain. Downgrade your binary" module=state
+	tx = nonValidatorNode.QueryProposal(propID)
+	fmt.Printf("\n prop %+v", tx)
+
+}
diff --git a/test/e2e/upgrades/vanilla.json b/test/e2e/upgrades/vanilla.json
new file mode 100644
index 000000000..c9fd6c9d3
--- /dev/null
+++ b/test/e2e/upgrades/vanilla.json
@@ -0,0 +1,14 @@
+{
+  "title": "any title",
+  "summary": "any summary",
+  "messages": [
+    {
+      "@type": "/cosmos.upgrade.v1beta1.MsgSoftwareUpgrade",
+      "authority": "bbn10d07y265gmmuvt4z0w9aw880jnsr700jduz5f2",
+      "plan": { "name": "vanilla", "info": "Msg info", "height": 20 }
+    }
+  ],
+  "deposit": "500000000ubbn",
+  "initial_deposit": "500000000ubbn",
+  "initialDeposit": "500000000ubbn"
+}