diff --git a/cardano_node_tests/tests/test_delegation.py b/cardano_node_tests/tests/test_delegation.py
index 3d448529b..991f436eb 100644
--- a/cardano_node_tests/tests/test_delegation.py
+++ b/cardano_node_tests/tests/test_delegation.py
@@ -395,6 +395,123 @@ def _get_pool_id(idx: int) -> str:
 
         # TODO: check delegation in db-sync
 
+    @allure.link(helpers.get_vcs_link())
+    @common.PARAM_USE_BUILD_CMD
+    @pytest.mark.dbsync
+    @pytest.mark.smoke
+    def test_deregister_registered(
+        self,
+        cluster: clusterlib.ClusterLib,
+        pool_users: tp.List[clusterlib.PoolUser],
+        pool_users_disposable: tp.List[clusterlib.PoolUser],
+        use_build_cmd: bool,
+    ):
+        """Deregister a registered stake address.
+
+        * create stake address registration cert
+        * register and stake address
+        * create stake address deregistration cert
+        * deregister stake address
+        * check that the balance for source address was correctly updated
+        * (optional) check records in db-sync
+        """
+        temp_template = f"{common.get_test_id(cluster)}_{use_build_cmd}"
+
+        user_registered = pool_users_disposable[0]
+        user_payment = pool_users[0].payment
+        src_init_balance = cluster.g_query.get_address_balance(user_payment.address)
+
+        # Create stake address registration cert
+        stake_addr_reg_cert_file = cluster.g_stake_address.gen_stake_addr_registration_cert(
+            addr_name=f"{temp_template}_addr0", stake_vkey_file=user_registered.stake.vkey_file
+        )
+
+        # Register stake address
+        tx_files_reg = clusterlib.TxFiles(
+            certificate_files=[stake_addr_reg_cert_file],
+            signing_key_files=[user_payment.skey_file, user_registered.stake.skey_file],
+        )
+
+        if use_build_cmd:
+            tx_raw_output_reg = cluster.g_transaction.build_tx(
+                src_address=user_payment.address,
+                tx_name=f"{temp_template}_reg",
+                tx_files=tx_files_reg,
+                fee_buffer=2_000_000,
+                witness_override=len(tx_files_reg.signing_key_files),
+            )
+            tx_signed = cluster.g_transaction.sign_tx(
+                tx_body_file=tx_raw_output_reg.out_file,
+                signing_key_files=tx_files_reg.signing_key_files,
+                tx_name=f"{temp_template}_reg",
+            )
+            cluster.g_transaction.submit_tx(tx_file=tx_signed, txins=tx_raw_output_reg.txins)
+        else:
+            tx_raw_output_reg = cluster.g_transaction.send_tx(
+                src_address=user_payment.address,
+                tx_name=f"{temp_template}_reg",
+                tx_files=tx_files_reg,
+            )
+
+        assert cluster.g_query.get_stake_addr_info(
+            user_registered.stake.address
+        ).address, f"Stake address is NOT registered: {user_registered.stake.address}"
+
+        # Create stake address deregistration cert
+        stake_addr_dereg_cert_file = cluster.g_stake_address.gen_stake_addr_deregistration_cert(
+            addr_name=f"{temp_template}_addr0", stake_vkey_file=user_registered.stake.vkey_file
+        )
+
+        # Deregister stake address
+        tx_files_dereg = clusterlib.TxFiles(
+            certificate_files=[stake_addr_dereg_cert_file],
+            signing_key_files=[user_payment.skey_file, user_registered.stake.skey_file],
+        )
+
+        if use_build_cmd:
+            tx_raw_output_dereg = cluster.g_transaction.build_tx(
+                src_address=user_payment.address,
+                tx_name=f"{temp_template}_dereg",
+                tx_files=tx_files_dereg,
+                fee_buffer=2_000_000,
+                witness_override=len(tx_files_dereg.signing_key_files),
+            )
+            tx_signed = cluster.g_transaction.sign_tx(
+                tx_body_file=tx_raw_output_dereg.out_file,
+                signing_key_files=tx_files_dereg.signing_key_files,
+                tx_name=f"{temp_template}_dereg",  # TODO: should be reg_dereg
+            )
+            cluster.g_transaction.submit_tx(tx_file=tx_signed, txins=tx_raw_output_dereg.txins)
+        else:
+            tx_raw_output_dereg = cluster.g_transaction.send_tx(
+                src_address=user_payment.address,
+                tx_name=f"{temp_template}_reg_dereg",
+                tx_files=tx_files_dereg,
+            )
+
+        assert not cluster.g_query.get_stake_addr_info(
+            user_registered.stake.address
+        ).address, f"Stake address is registered: {user_registered.stake.address}"
+
+        # Check that the balance for source address was correctly updated
+        assert (
+            cluster.g_query.get_address_balance(user_payment.address)
+            == src_init_balance - tx_raw_output_reg.fee - tx_raw_output_dereg.fee
+        ), f"Incorrect balance for source address `{user_payment.address}`"
+
+        # Check records in db-sync
+        tx_db_record_reg = dbsync_utils.check_tx(
+            cluster_obj=cluster, tx_raw_output=tx_raw_output_reg
+        )
+        if tx_db_record_reg:
+            assert user_registered.stake.address in tx_db_record_reg.stake_registration
+
+        tx_db_record_dereg = dbsync_utils.check_tx(
+            cluster_obj=cluster, tx_raw_output=tx_raw_output_dereg
+        )
+        if tx_db_record_dereg:
+            assert user_registered.stake.address in tx_db_record_dereg.stake_deregistration
+
     @allure.link(helpers.get_vcs_link())
     @pytest.mark.order(7)
     @pytest.mark.dbsync