diff --git a/tests/govtool-frontend/playwright/lib/pages/proposalSubmissionPage.ts b/tests/govtool-frontend/playwright/lib/pages/proposalSubmissionPage.ts
index 3ba8c0331..9496b587b 100644
--- a/tests/govtool-frontend/playwright/lib/pages/proposalSubmissionPage.ts
+++ b/tests/govtool-frontend/playwright/lib/pages/proposalSubmissionPage.ts
@@ -20,7 +20,7 @@ const formErrors = {
 export default class ProposalSubmissionPage {
   // modals
   readonly registrationSuccessModal = this.page.getByTestId(
-    "create-governance-action-submitted-modal"
+    "governance-action-submitted-modal"
   );
   readonly registrationErrorModal = this.page.getByTestId(
     "create-governance-action-error-modal"
diff --git a/tests/govtool-frontend/playwright/lib/walletManager.ts b/tests/govtool-frontend/playwright/lib/walletManager.ts
index c13c9cf42..cd9183269 100644
--- a/tests/govtool-frontend/playwright/lib/walletManager.ts
+++ b/tests/govtool-frontend/playwright/lib/walletManager.ts
@@ -5,11 +5,7 @@ const path = require("path");
 
 const baseFilePath = path.resolve(__dirname, "./_mock");
 
-export type Purpose =
-  | "registerDRep"
-  | "registeredDRep"
-  | "proposalSubmission"
-  | "adaHolder";
+export type Purpose = "registerDRep" | "registeredDRep" | "proposalSubmission";
 
 /**
  * WalletManager class is responsible for managing a list of temporary wallets.
diff --git a/tests/govtool-frontend/playwright/playwright.config.ts b/tests/govtool-frontend/playwright/playwright.config.ts
index 74fbbe1cc..62e7c3287 100644
--- a/tests/govtool-frontend/playwright/playwright.config.ts
+++ b/tests/govtool-frontend/playwright/playwright.config.ts
@@ -52,6 +52,11 @@ export default defineConfig({
       testMatch: "**/dRep.setup.ts",
       dependencies: environments.ci ? ["faucet setup"] : [],
     },
+    {
+      name: "proposal setup",
+      testMatch: "**/proposal.setup.ts",
+      dependencies: environments.ci ? ["faucet setup"] : [],
+    },
     {
       name: "wallet bootstrap",
       testMatch: "**/wallet.bootstrap.ts",
@@ -63,6 +68,14 @@ export default defineConfig({
       testMatch: "**/*.tx.spec.ts",
       dependencies: environments.ci ? ["auth setup", "wallet bootstrap"] : [],
     },
+    {
+      name: "proposal",
+      use: { ...devices["Desktop Chrome"] },
+      testMatch: "**/*.proposal.spec.ts",
+      dependencies: environments.ci
+        ? ["auth setup", "wallet bootstrap", "proposal setup"]
+        : [],
+    },
     {
       name: "loggedin (desktop)",
       use: { ...devices["Desktop Chrome"] },
@@ -92,6 +105,7 @@ export default defineConfig({
         "**/*.loggedin.spec.ts",
         "**/*.dRep.spec.ts",
         "**/*.tx.spec.ts",
+        "**/*.proposal.spec.ts",
       ],
     },
     {
@@ -102,6 +116,7 @@ export default defineConfig({
         "**/*.dRep.spec.ts",
         "**/*.delegation.spec.ts",
         "**/*.tx.spec.ts",
+        "**/*.proposal.spec.ts",
         "**/walletConnect.spec.ts",
       ],
     },
diff --git a/tests/govtool-frontend/playwright/tests/1-wallet-connect/walletConnect.loggedin.spec.ts b/tests/govtool-frontend/playwright/tests/1-wallet-connect/walletConnect.loggedin.spec.ts
index b1a23c363..f073d6cb2 100644
--- a/tests/govtool-frontend/playwright/tests/1-wallet-connect/walletConnect.loggedin.spec.ts
+++ b/tests/govtool-frontend/playwright/tests/1-wallet-connect/walletConnect.loggedin.spec.ts
@@ -8,7 +8,7 @@ test.beforeEach(async () => {
   await setAllureEpic("1. Wallet connect");
 });
 
-test("1B: Should connect wallet with single stake key", async ({ page }) => {
+test("1B. Should connect wallet with single stake key", async ({ page }) => {
   const loginPage = new LoginPage(page);
   await loginPage.goto();
   await loginPage.isLoggedIn();
diff --git a/tests/govtool-frontend/playwright/tests/1-wallet-connect/walletConnect.spec.ts b/tests/govtool-frontend/playwright/tests/1-wallet-connect/walletConnect.spec.ts
index e9ea95072..5e0149494 100644
--- a/tests/govtool-frontend/playwright/tests/1-wallet-connect/walletConnect.spec.ts
+++ b/tests/govtool-frontend/playwright/tests/1-wallet-connect/walletConnect.spec.ts
@@ -28,7 +28,7 @@ test("1A. Should connect wallet and choose stake-key to use", async ({
   await loginPage.login();
 });
 
-test("1C: Should disconnect Wallet When connected", async ({ page }) => {
+test("1C. Should disconnect Wallet When connected", async ({ page }) => {
   await createWallet(page);
 
   const loginPage = new LoginPage(page);
diff --git a/tests/govtool-frontend/playwright/tests/3-drep-registration/dRepRegistration.loggedin.spec.ts b/tests/govtool-frontend/playwright/tests/3-drep-registration/dRepRegistration.loggedin.spec.ts
index 2ee585c5e..ddfcf7e44 100644
--- a/tests/govtool-frontend/playwright/tests/3-drep-registration/dRepRegistration.loggedin.spec.ts
+++ b/tests/govtool-frontend/playwright/tests/3-drep-registration/dRepRegistration.loggedin.spec.ts
@@ -35,7 +35,7 @@ test("3D. Verify DRep registration form", async ({ page }) => {
 });
 
 test.describe("Validation of dRep Registration Form", () => {
-  test("3E_1 Should accept valid data in DRep form", async ({ page }) => {
+  test("3E_1. Should accept valid data in DRep form", async ({ page }) => {
     test.slow();
 
     const dRepRegistrationPage = new DRepRegistrationPage(page);
diff --git a/tests/govtool-frontend/playwright/tests/3-drep-registration/editDRep.dRep.spec.ts b/tests/govtool-frontend/playwright/tests/3-drep-registration/editDRep.dRep.spec.ts
index f543862e0..b5ff1317e 100644
--- a/tests/govtool-frontend/playwright/tests/3-drep-registration/editDRep.dRep.spec.ts
+++ b/tests/govtool-frontend/playwright/tests/3-drep-registration/editDRep.dRep.spec.ts
@@ -13,7 +13,7 @@ test.beforeEach(async () => {
 test.use({ wallet: dRep02Wallet, storageState: ".auth/dRep02.json" });
 
 test.describe("Validation of edit dRep Form", () => {
-  test("3M_1 Should accept valid data in edit dRep form", async ({ page }) => {
+  test("3M_1. Should accept valid data in edit dRep form", async ({ page }) => {
     test.slow();
 
     const editDRepPage = new EditDRepPage(page);
diff --git a/tests/govtool-frontend/playwright/tests/4-proposal-visibility/proposalVisibility.loggedin.spec.ts b/tests/govtool-frontend/playwright/tests/4-proposal-visibility/proposalVisibility.loggedin.spec.ts
index 4053ad471..ebcbdcb4f 100644
--- a/tests/govtool-frontend/playwright/tests/4-proposal-visibility/proposalVisibility.loggedin.spec.ts
+++ b/tests/govtool-frontend/playwright/tests/4-proposal-visibility/proposalVisibility.loggedin.spec.ts
@@ -31,7 +31,7 @@ test.beforeEach(async () => {
   await setAllureEpic("4. Proposal visibility");
 });
 
-test("4A_1: Should access Governance Actions page with connecting wallet", async ({
+test("4A_1. Should access Governance Actions page with connecting wallet", async ({
   page,
 }) => {
   await page.goto("/");
@@ -43,7 +43,7 @@ test("4A_1: Should access Governance Actions page with connecting wallet", async
   await expect(page.getByText(/Governance Actions/i)).toHaveCount(2);
 });
 
-test("4B_1: Should restrict voting for users who are not registered as DReps (with wallet connected)", async ({
+test("4B_1. Should restrict voting for users who are not registered as DReps (with wallet connected)", async ({
   page,
 }) => {
   const govActionsPage = new GovernanceActionsPage(page);
@@ -53,7 +53,7 @@ test("4B_1: Should restrict voting for users who are not registered as DReps (wi
   await expect(govActionDetailsPage.voteBtn).not.toBeVisible();
 });
 
-test("4C_1: Should filter Governance Action Type on governance actions page", async ({
+test("4C_1. Should filter Governance Action Type on governance actions page", async ({
   page,
 }) => {
   test.slow();
@@ -80,7 +80,7 @@ test("4C_1: Should filter Governance Action Type on governance actions page", as
   }
 });
 
-test("4C_2: Should sort Governance Action Type on governance actions page", async ({
+test("4C_2. Should sort Governance Action Type on governance actions page", async ({
   page,
 }) => {
   test.slow();
@@ -106,7 +106,7 @@ test("4C_2: Should sort Governance Action Type on governance actions page", asyn
   );
 });
 
-test("4C_3: Should filter and sort Governance Action Type on governance actions page", async ({
+test("4C_3. Should filter and sort Governance Action Type on governance actions page", async ({
   page,
 }) => {
   test.slow();
@@ -128,7 +128,7 @@ test("4C_3: Should filter and sort Governance Action Type on governance actions
   await govActionsPage.validateFilters([filterOptionNames[0]]);
 });
 
-test("4L: Should search governance actions", async ({ page }) => {
+test("4L. Should search governance actions", async ({ page }) => {
   const governanceActionTitle = "TreasuryTitle";
   const governanceActionPage = new GovernanceActionsPage(page);
 
@@ -145,7 +145,7 @@ test("4L: Should search governance actions", async ({ page }) => {
   }
 });
 
-test("4M: Should show view-all categorized governance actions", async ({
+test("4M. Should show view-all categorized governance actions", async ({
   page,
 }) => {
   await page.route("**/proposal/list?**", async (route) =>
diff --git a/tests/govtool-frontend/playwright/tests/4-proposal-visibility/proposalVisibility.spec.ts b/tests/govtool-frontend/playwright/tests/4-proposal-visibility/proposalVisibility.spec.ts
index 56dd8e9ff..9f98d47f6 100644
--- a/tests/govtool-frontend/playwright/tests/4-proposal-visibility/proposalVisibility.spec.ts
+++ b/tests/govtool-frontend/playwright/tests/4-proposal-visibility/proposalVisibility.spec.ts
@@ -8,7 +8,7 @@ test.beforeEach(async () => {
   await setAllureEpic("4. Proposal visibility");
 });
 
-test("4A.2: Should access Governance Actions page without connecting wallet", async ({
+test("4A.2. Should access Governance Actions page without connecting wallet", async ({
   page,
 }) => {
   await page.goto("/");
@@ -17,7 +17,7 @@ test("4A.2: Should access Governance Actions page without connecting wallet", as
   await expect(page.getByText(/Governance actions/i)).toHaveCount(2);
 });
 
-test("4B.2: Should restrict voting for users who are not registered as DReps (without wallet connected)", async ({
+test("4B.2. Should restrict voting for users who are not registered as DReps (without wallet connected)", async ({
   page,
 }) => {
   const govActionsPage = new GovernanceActionsPage(page);
diff --git a/tests/govtool-frontend/playwright/tests/7-proposal-submission/proposalSubmission.loggedin.spec.ts b/tests/govtool-frontend/playwright/tests/7-proposal-submission/proposalSubmission.loggedin.spec.ts
index 6a04169e3..a78cbd007 100644
--- a/tests/govtool-frontend/playwright/tests/7-proposal-submission/proposalSubmission.loggedin.spec.ts
+++ b/tests/govtool-frontend/playwright/tests/7-proposal-submission/proposalSubmission.loggedin.spec.ts
@@ -2,6 +2,7 @@ import { user01Wallet } from "@constants/staticWallets";
 import { faker } from "@faker-js/faker";
 import { test } from "@fixtures/walletExtension";
 import { setAllureEpic } from "@helpers/allure";
+import { ShelleyWallet } from "@helpers/crypto";
 import { invalid } from "@mock/index";
 import ProposalSubmissionPage from "@pages/proposalSubmissionPage";
 import { expect } from "@playwright/test";
@@ -72,6 +73,37 @@ test.describe("Reject invalid  data", () => {
   });
 });
 
+test.describe("Proposal submission check", () => {
+  Object.values(ProposalType).map((type: ProposalType, index) => {
+    test(`7G_${index + 1}. Should open wallet connection popup, when registered with proper ${type.toLowerCase()} data`, async ({
+      page,
+      wallet,
+    }) => {
+      const proposalSubmissionPage = new ProposalSubmissionPage(page);
+
+      await proposalSubmissionPage.goto();
+
+      await page.getByTestId(`${type}-radio`).click();
+      await proposalSubmissionPage.continueBtn.click();
+
+      const walletAddressBech32 =
+        ShelleyWallet.fromJson(wallet).rewardAddressBech32(0);
+
+      const proposal: IProposalForm =
+        proposalSubmissionPage.generateValidProposalFormFields(
+          type,
+          walletAddressBech32
+        );
+      await proposalSubmissionPage.register({ ...proposal });
+      await expect(
+        proposalSubmissionPage.registrationErrorModal.getByText(
+          "UTxO Balance Insufficient"
+        )
+      ).toBeVisible();
+    });
+  });
+});
+
 test.describe("Review fillup form", () => {
   Object.values(ProposalType).map((type: ProposalType, index) => {
     test(`7I_${index + 1}. Should valid review submission in ${type.toLowerCase()} Proposal form`, async ({
@@ -111,7 +143,7 @@ test.describe("Review fillup form", () => {
   });
 });
 
-test("7I. Should reject invalid proposal metadata", async ({ page }) => {
+test("7L. Should reject invalid proposal metadata", async ({ page }) => {
   const invalidMetadataAnchor = "https://www.google.com";
 
   const proposalSubmissionPage = new ProposalSubmissionPage(page);
@@ -184,7 +216,9 @@ test.describe("Edit proposal form", () => {
   });
 });
 
-test("7K_1. Should accept valid anchor proposal metadata", async ({ page }) => {
+test("7K_1. Should accept valid metadata anchor on proposal submission", async ({
+  page,
+}) => {
   const invalidMetadataAnchor = "https://www.google.com";
 
   const proposalSubmissionPage = new ProposalSubmissionPage(page);
@@ -208,7 +242,9 @@ test("7K_1. Should accept valid anchor proposal metadata", async ({ page }) => {
   }
 });
 
-test("7K_2. Should reject valid anchor proposal metadata", async ({ page }) => {
+test("7K_2. Should reject invalid metadata anchor on proposal submission", async ({
+  page,
+}) => {
   const invalidMetadataAnchor = "https://www.google.com";
 
   const proposalSubmissionPage = new ProposalSubmissionPage(page);
diff --git a/tests/govtool-frontend/playwright/tests/7-proposal-submission/proposalSubmissionFunctionality.proposal.spec.ts b/tests/govtool-frontend/playwright/tests/7-proposal-submission/proposalSubmissionFunctionality.proposal.spec.ts
new file mode 100644
index 000000000..1cbf2d8ef
--- /dev/null
+++ b/tests/govtool-frontend/playwright/tests/7-proposal-submission/proposalSubmissionFunctionality.proposal.spec.ts
@@ -0,0 +1,44 @@
+import environments from "@constants/environments";
+import { createTempUserAuth } from "@datafactory/createAuth";
+import { test } from "@fixtures/walletExtension";
+import { setAllureEpic } from "@helpers/allure";
+import { createNewPageWithWallet } from "@helpers/page";
+import { waitForTxConfirmation } from "@helpers/transaction";
+import ProposalSubmissionPage from "@pages/proposalSubmissionPage";
+import { expect } from "@playwright/test";
+import { IProposalForm, ProposalType } from "@types";
+import walletManager from "lib/walletManager";
+
+test.beforeEach(async () => {
+  await setAllureEpic("7. Proposal submission");
+});
+
+test("7H. should submit a proposal", async ({ page, browser }, testInfo) => {
+  test.setTimeout(testInfo.timeout + environments.txTimeOut);
+
+  const wallet = await walletManager.popWallet("proposalSubmission");
+
+  const tempUserAuth = await createTempUserAuth(page, wallet);
+
+  const userPage = await createNewPageWithWallet(browser, {
+    storageState: tempUserAuth,
+    wallet,
+  });
+
+  const proposalSubmissionPage = new ProposalSubmissionPage(userPage);
+  await proposalSubmissionPage.goto();
+
+  await userPage.getByTestId(`${ProposalType.info}-radio`).click();
+  await proposalSubmissionPage.continueBtn.click();
+
+  const proposal: IProposalForm =
+    proposalSubmissionPage.generateValidProposalFormFields(ProposalType.info);
+
+  await proposalSubmissionPage.register({ ...proposal });
+
+  await expect(proposalSubmissionPage.registrationSuccessModal).toBeVisible({
+    timeout: 10_000,
+  });
+
+  await waitForTxConfirmation(userPage);
+});
diff --git a/tests/govtool-frontend/playwright/tests/7-proposal-submission/proposalSubmissionFunctionality.tx.spec.ts b/tests/govtool-frontend/playwright/tests/7-proposal-submission/proposalSubmissionFunctionality.tx.spec.ts
deleted file mode 100644
index c2ed11e8d..000000000
--- a/tests/govtool-frontend/playwright/tests/7-proposal-submission/proposalSubmissionFunctionality.tx.spec.ts
+++ /dev/null
@@ -1,92 +0,0 @@
-import environments from "@constants/environments";
-import { createTempUserAuth } from "@datafactory/createAuth";
-import { test } from "@fixtures/walletExtension";
-import { setAllureEpic } from "@helpers/allure";
-import { ShelleyWallet } from "@helpers/crypto";
-import { createNewPageWithWallet } from "@helpers/page";
-import { waitForTxConfirmation } from "@helpers/transaction";
-import ProposalSubmissionPage from "@pages/proposalSubmissionPage";
-import { Page, expect } from "@playwright/test";
-import { IProposalForm, ProposalType, StaticWallet } from "@types";
-import walletManager from "lib/walletManager";
-
-test.beforeEach(async () => {
-  await setAllureEpic("7. Proposal submission");
-});
-
-test.describe("Proposal submission check", () => {
-  let userPage: Page;
-  let wallet: StaticWallet;
-
-  test.beforeEach(async ({ browser, page }, testInfo) => {
-    wallet = await walletManager.popWallet("adaHolder");
-
-    const tempUserAuth = await createTempUserAuth(page, wallet);
-
-    userPage = await createNewPageWithWallet(browser, {
-      storageState: tempUserAuth,
-      wallet,
-    });
-  });
-
-  Object.values(ProposalType).map((type: ProposalType, index) => {
-    test(`7G_${index + 1}. Should open wallet connection popup, when registered with proper ${type.toLowerCase()} data`, async ({
-      page,
-      browser,
-    }, testInfo) => {
-      const proposalSubmissionPage = new ProposalSubmissionPage(userPage);
-
-      await proposalSubmissionPage.goto();
-
-      await userPage.getByTestId(`${type}-radio`).click();
-      await proposalSubmissionPage.continueBtn.click();
-
-      const walletAddressBech32 =
-        ShelleyWallet.fromJson(wallet).rewardAddressBech32(0);
-
-      const proposal: IProposalForm =
-        proposalSubmissionPage.generateValidProposalFormFields(
-          type,
-          walletAddressBech32
-        );
-      await proposalSubmissionPage.register({ ...proposal });
-      await expect(
-        proposalSubmissionPage.registrationErrorModal.getByText(
-          "UTxO Balance Insufficient"
-        )
-      ).toBeVisible();
-    });
-  });
-});
-
-test("7H. should submit a proposal", async ({ page, browser }, testInfo) => {
-  test.setTimeout(testInfo.timeout + environments.txTimeOut);
-
-  const wallet = await walletManager.popWallet("proposalSubmission");
-
-  const tempUserAuth = await createTempUserAuth(page, wallet);
-
-  const userPage = await createNewPageWithWallet(browser, {
-    storageState: tempUserAuth,
-    wallet,
-  });
-
-  const proposalSubmissionPage = new ProposalSubmissionPage(userPage);
-  await proposalSubmissionPage.goto();
-
-  await userPage.getByTestId(`${ProposalType.info}-radio`).click();
-  await proposalSubmissionPage.continueBtn.click();
-
-  const proposal: IProposalForm =
-    proposalSubmissionPage.generateValidProposalFormFields(ProposalType.info);
-
-  await proposalSubmissionPage.register({ ...proposal });
-
-  await expect(
-    userPage.getByTestId("governance-action-submitted-modal")
-  ).toBeVisible();
-
-  await userPage.getByTestId("confirm-modal-button").click();
-
-  await waitForTxConfirmation(userPage);
-});
diff --git a/tests/govtool-frontend/playwright/tests/proposal.setup.ts b/tests/govtool-frontend/playwright/tests/proposal.setup.ts
new file mode 100644
index 000000000..9f7111499
--- /dev/null
+++ b/tests/govtool-frontend/playwright/tests/proposal.setup.ts
@@ -0,0 +1,49 @@
+import environments from "@constants/environments";
+import { setAllureEpic, setAllureStory } from "@helpers/allure";
+import { ShelleyWallet } from "@helpers/crypto";
+import { pollTransaction } from "@helpers/transaction";
+import { test as setup } from "@playwright/test";
+import kuberService from "@services/kuberService";
+import walletManager from "lib/walletManager";
+
+const PROPOSAL_SUBMISSIONS_WALLETS_COUNT = 1;
+
+setup.beforeEach(async () => {
+  await setAllureEpic("Setup");
+  await setAllureStory("proposal");
+});
+
+async function generateWallets(num: number) {
+  return await Promise.all(
+    Array.from({ length: num }, () =>
+      ShelleyWallet.generate().then((wallet) => wallet.json())
+    )
+  );
+}
+
+setup("Setup temporary proposal wallets", async () => {
+  setup.setTimeout(2 * environments.txTimeOut);
+
+  const proposalSubmissionsWallets = await generateWallets(
+    PROPOSAL_SUBMISSIONS_WALLETS_COUNT
+  );
+
+  // initialize wallets
+  const initializeRes = await kuberService.initializeWallets([
+    ...proposalSubmissionsWallets,
+  ]);
+  await pollTransaction(initializeRes.txId, initializeRes.lockInfo);
+
+  // transfer 51_000 ADA for dRep registration
+  const amountOutputs = proposalSubmissionsWallets.map((wallet) => {
+    return { address: wallet.address, value: `${51_000}A` };
+  });
+  const transferRes = await kuberService.multipleTransferADA(amountOutputs);
+  await pollTransaction(transferRes.txId, transferRes.lockInfo);
+
+  // save to file
+  await walletManager.writeWallets(
+    proposalSubmissionsWallets,
+    "proposalSubmission"
+  );
+});