diff --git a/src/python_testing/TC_CGEN_2_5.py b/src/python_testing/TC_CGEN_2_5.py
index fb1056805f5bd7..23dfed2485b5a2 100644
--- a/src/python_testing/TC_CGEN_2_5.py
+++ b/src/python_testing/TC_CGEN_2_5.py
@@ -21,113 +21,127 @@
 # test-runner-run/run1/factoryreset: True
 # test-runner-run/run1/quiet: True
 # test-runner-run/run1/app-args: --KVS kvs1
-# test-runner-run/run1/script-args: --commissioning-method on-network --qr-code MT:-24J0AFN00KA0648G00 --tc-version 1 --tc-user-response 1 --trace_file /tmp/chip_trace.log --trace_log 1 --trace_decode 1
+# test-runner-run/run1/script-args: --in-test-commissioning-method on-network --qr-code MT:-24J0AFN00KA0648G00 --trace-to json:log
 # === END CI TEST ARGUMENTS ===
 
-import logging
-import random
-
+import asyncio
+from typing import List
 import chip.clusters as Clusters
-from matter_testing_support import MatterBaseTest, async_test_body, default_matter_test_main
+from chip import ChipDeviceCtrl
+from matter_testing_support import MatterBaseTest, TestStep, async_test_body, default_matter_test_main
 from mobly import asserts
 
 
 class TC_CGEN_2_5(MatterBaseTest):
-    async def verify_tc_attributes(self, expected_tc_version: int, expected_tc_acknowledgements: int):
-        attr = Clusters.GeneralCommissioning.Attributes.TCAcceptedVersion
-        tc_accepted_version = await self.read_single_attribute(dev_ctrl=self.th1, node_id=self.dut_node_id, endpoint=0, attribute=attr)
-        asserts.assert_equal(tc_accepted_version, expected_tc_version,
-                             f"Expected TCAcceptedVersion to be {expected_tc_version}, but got {tc_accepted_version}")
-
-        attr = Clusters.GeneralCommissioning.Attributes.TCAcknowledgements
-        tc_acknowedgements = await self.read_single_attribute(dev_ctrl=self.th1, node_id=self.dut_node_id, endpoint=0, attribute=attr)
-        asserts.assert_equal(tc_acknowedgements, expected_tc_acknowledgements,
-                             f"Expected TCAcknowledgements to be {expected_tc_acknowledgements}, but got {tc_acknowedgements}")
+    def desc_TC_CGEN_2_5(self) -> str:
+        return "[TC-CGEN-2.5] Verification For SetTCAcknowledgements [DUT as Server]"
+
+    def steps_TC_CGEN_2_5(self) -> list[TestStep]:
+        return [
+            TestStep("1", "TH starts commissioning the DUT. It performs all commissioning steps from ArmFailSafe, except SetTCAcknowledgements and CommissioningComplete.", is_commissioning=False),
+            TestStep("2", "TH reads TCAcknowledgementsRequired attribute from the DUT."),
+            TestStep("3", "TH sends SetTCAcknowledgements to DUT with the following values:\nTCVersion: Greater than or equal to TCMinRequiredVersion on DUT\nTCUserResponse: All terms required by DUT accepted"),
+            TestStep("4", "TH sends CommissioningComplete to DUT."),
+            TestStep("5", "TH reads TCAcceptedVersion attribute from the DUT."),
+            TestStep("6", "TH reads TCAcknowledgements attribute from the DUT."),
+            TestStep("7", "TH reads TCMinRequiredVersion attribute from the DUT."),
+            TestStep("8", "TH reads TCAcknowledgementsRequired attribute from the DUT."),
+            TestStep("9", "TH sends the SetTCAcknowledgements command to the DUT with the fields set as follows:\nTCVersion: 0\nTCUserResponse: 0"),
+            TestStep("10", "TH removes all fabrics from DUT with RemoveFabric."),
+            TestStep("11", "DUT is placed into a commissionable state."),
+            TestStep("12", "TH starts commissioning the DUT. It performs all commissioning steps, except for TC configuration with SetTCAcknowledgements."),
+        ]
 
     @async_test_body
     async def test_TC_CGEN_2_5(self):
-        self.th1 = self.default_controller
-        self.discriminator = random.randint(0, 4095)
-
-        logging.info('Step 1 - TH reads the TCAcceptedVersion attribute')
-        attr = Clusters.GeneralCommissioning.Attributes.TCAcceptedVersion
-        tc_accepted_version = await self.read_single_attribute(dev_ctrl=self.th1, node_id=self.dut_node_id, endpoint=0, attribute=attr)
-
-        print(f"tc_accepted_version: {tc_accepted_version}")
-
-        logging.info('Step 2 - TH reads the TCAcknowledgements attribute')
-        attr = Clusters.GeneralCommissioning.Attributes.TCAcknowledgements
-        tc_acknowedgements = await self.read_single_attribute(dev_ctrl=self.th1, node_id=self.dut_node_id, endpoint=0, attribute=attr)
-        print(f"tc_acknowedgements: {tc_acknowedgements}")
-
-        logging.info('Step 3 - TH reads the TCMinRequiredVersion attribute')
-        attr = Clusters.GeneralCommissioning.Attributes.TCMinRequiredVersion
-        tc_min_requried_version = await self.read_single_attribute(dev_ctrl=self.th1, node_id=self.dut_node_id, endpoint=0, attribute=attr)
-        print(f"tc_min_requried_version: {tc_min_requried_version}")
-
-        logging.info('Step 4 - TH reads the TCAcknowledgementsRequired attribute')
-        attr = Clusters.GeneralCommissioning.Attributes.TCAcknowledgementsRequired
-        tc_required = await self.read_single_attribute(dev_ctrl=self.th1, node_id=self.dut_node_id, endpoint=0, attribute=attr)
-        print(f"tc_required: {tc_required}")
-
-        logging.info('Step 5 - TH sends SetTCAcknowledgements with greater values than current and verify set')
-        new_accepted_version = tc_accepted_version + 1
-        new_acknowledgements = 65535
-
-        cmd = Clusters.GeneralCommissioning.Commands.SetTCAcknowledgements(new_accepted_version, new_acknowledgements)
-        resp = await self.th1.SendCommand(nodeid=self.dut_node_id, endpoint=0, payload=cmd, timedRequestTimeoutMs=6000)
-        asserts.assert_equal(resp.errorCode, Clusters.GeneralCommissioning.Enums.CommissioningErrorEnum.kOk, 'Incorrect error code')
-        await self.verify_tc_attributes(new_accepted_version, new_acknowledgements)
-
-        logging.info('Step 6 - TH sends SetTCAcknowledgements with no accepted terms at version 0')
-        cmd = Clusters.GeneralCommissioning.Commands.SetTCAcknowledgements(0, 0)
-        resp = await self.th1.SendCommand(nodeid=self.dut_node_id, endpoint=0, payload=cmd, timedRequestTimeoutMs=6000)
-        asserts.assert_equal(
-            resp.errorCode, Clusters.GeneralCommissioning.Enums.CommissioningErrorEnum.kTCMinVersionNotMet, 'Incorrect error code'
-        )
-        await self.verify_tc_attributes(new_accepted_version, new_acknowledgements)
-
-        logging.info('Step 7 - TH sends SetTCAcknowledgements with no accepted terms at version 1')
-        cmd = Clusters.GeneralCommissioning.Commands.SetTCAcknowledgements(1, 0)
-        resp = await self.th1.SendCommand(nodeid=self.dut_node_id, endpoint=0, payload=cmd, timedRequestTimeoutMs=6000)
-        asserts.assert_equal(
-            resp.errorCode, Clusters.GeneralCommissioning.Enums.CommissioningErrorEnum.kRequiredTCNotAccepted, 'Incorrect error code'
-        )
-        await self.verify_tc_attributes(new_accepted_version, new_acknowledgements)
-
-        logging.info('Step 8 - TH sends ArmFailSafe with ExpiryLengthSeconds set to 60')
-        cmd = Clusters.GeneralCommissioning.Commands.ArmFailSafe(60)
-        resp = await self.th1.SendCommand(nodeid=self.dut_node_id, endpoint=0, payload=cmd, timedRequestTimeoutMs=6000)
-        asserts.assert_equal(resp.errorCode, Clusters.GeneralCommissioning.Enums.CommissioningErrorEnum.kOk,
-                             'Incorrect error code')
-
-        logging.info('Step 9 - TH sends SetTCAcknowledgements with incremented TCVersion')
-        cmd = Clusters.GeneralCommissioning.Commands.SetTCAcknowledgements(new_accepted_version + 1, new_acknowledgements)
-        resp = await self.th1.SendCommand(nodeid=self.dut_node_id, endpoint=0, payload=cmd, timedRequestTimeoutMs=6000)
-        asserts.assert_equal(resp.errorCode, Clusters.GeneralCommissioning.Enums.CommissioningErrorEnum.kOk,
-                             'Incorrect error code')
-
-        logging.info('Step 10 - TH sends ArmFailSafe with ExpiryLengthSeconds set to 0')
-        cmd = Clusters.GeneralCommissioning.Commands.ArmFailSafe(0)
-        resp = await self.th1.SendCommand(nodeid=self.dut_node_id, endpoint=0, payload=cmd, timedRequestTimeoutMs=6000)
-        asserts.assert_equal(resp.errorCode, Clusters.GeneralCommissioning.Enums.CommissioningErrorEnum.kOk,
-                             'Incorrect error code')
-
-        # Verify that the TC attributes have been reset to the pre-failsafe state
-        await self.verify_tc_attributes(new_accepted_version, new_acknowledgements)
-
-        logging.info('Step 11 - TH removes all fabrics from the device')
-        fabrics = await self.read_single_attribute(dev_ctrl=self.th1, node_id=self.dut_node_id, endpoint=0, attribute=Clusters.OperationalCredentials.Attributes.Fabrics)
+        is_ci = self.check_pics('PICS_SDK_CI_ONLY')
+        commissioner: ChipDeviceCtrl.ChipDeviceController = self.default_controller
+
+        # Don't set TCs for the next commissioning and skip CommissioningComplete so we can manually call CommissioningComplete in order to check the response error code
+        self.step("1")
+        commissioner.SetTCRequired(False)
+        commissioner.SetSkipCommissioningComplete(True)
+        self.matter_test_config.commissioning_method = self.matter_test_config.in_test_commissioning_method
+        await self.commission_devices()
+
+        self.step("2")
+        # Verify that TCAcknowledgementsRequired value is representable in the 'Bool' type
+        # Verify that TCAcknowledgementsRequired value is True
+
+        self.step("3")
+        response: Clusters.GeneralCommissioning.Commands.SetTCAcknowledgementsResponse = await commissioner.SendCommand(
+            nodeid=self.dut_node_id,
+            endpoint=0,
+            payload=Clusters.GeneralCommissioning.Commands.SetTCAcknowledgements(TCVersion=2**16 - 1, TCUserResponse=2**16 - 1),
+            timedRequestTimeoutMs=1000)
+        # Verify that DUT sends SetTCAcknowledgementsResponse Command to TH With ErrorCode as 'OK'(0).
+        asserts.assert_equal(response.errorCode, Clusters.GeneralCommissioning.Enums.CommissioningErrorEnum.kOk, 'Incorrect error code')
+
+        self.step("4")
+        response: Clusters.GeneralCommissioning.Commands.CommissioningCompleteResponse = await commissioner.SendCommand(
+            nodeid=self.dut_node_id,
+            endpoint=0,
+            payload=Clusters.GeneralCommissioning.Commands.CommissioningComplete(),
+            timedRequestTimeoutMs=1000)
+        # Verify that DUT sends CommissioningCompleteResponse Command to TH With ErrorCode as 'OK'(0).
+        asserts.assert_equal(response.errorCode, Clusters.GeneralCommissioning.Enums.CommissioningErrorEnum.kOk, 'Incorrect error code')
+
+        self.step("5")
+        # Verify that TCAcceptedVersion value fits in the 'uint16' type
+        # Verify that TCAcceptedVersion is the value sent in step 3
+
+        self.step("6")
+        # Verify that TCAcknowledgements is a value representable in the map16 type
+        # Verify that TCAcknowledgements is the value sent in step 3
+
+        self.step("7")
+        # Verify that TCMinRequiredVersion value fits in the 'uint16' type
+
+        self.step("8")
+        # Verify that TCAcknowledgementsRequired value is False
+
+        self.step("9")
+        response: Clusters.GeneralCommissioning.Commands.SetTCAcknowledgementsResponse = await commissioner.SendCommand(
+            nodeid=self.dut_node_id,
+            endpoint=0,
+            payload=Clusters.GeneralCommissioning.Commands.SetTCAcknowledgements(TCVersion=0, TCUserResponse=0),
+            timedRequestTimeoutMs=1000)
+        # Verify that DUT sends SetTCAcknowledgementsResponse Command to TH With ErrorCode as 'TCMinVersionNotMet'(7)
+        asserts.assert_equal(response.errorCode, Clusters.GeneralCommissioning.Enums.CommissioningErrorEnum.kTCMinVersionNotMet, 'Incorrect error code')
+        # Verify that TCAcceptedVersion and TCAcknowledgements still contain the values sent in step 3.
+
+        self.step("10")
+        fabrics: List[Clusters.OperationalCredentials.Structs.FabricDescriptorStruct] = await self.read_single_attribute(
+            dev_ctrl=commissioner,
+            node_id=self.dut_node_id, 
+            endpoint=0, 
+            attribute=Clusters.OperationalCredentials.Attributes.Fabrics)
+        
+        # Re-order the list of fabrics so that the test harness admin fabric is removed last
+        commissioner_fabric = next((fabric for fabric in fabrics if fabric.fabricIndex == commissioner.fabricId), None)
+        fabrics.remove(commissioner_fabric)
+        fabrics.append(commissioner_fabric)
+
         for fabric in fabrics:
-            if fabric.fabricIndex == self.th1.fabricId:
-                continue
-            cmd = Clusters.OperationalCredentials.Commands.RemoveFabric(fabric.fabricIndex)
-            resp = await self.th1.SendCommand(nodeid=self.dut_node_id, endpoint=0, payload=cmd, timedRequestTimeoutMs=6000)
-            asserts.assert_equal(resp.statusCode, Clusters.OperationalCredentials.Enums.NodeOperationalCertStatusEnum.kOk)
-
-        # Remove TH1 fabric last
-        cmd = Clusters.OperationalCredentials.Commands.RemoveFabric(self.th1.fabricId)
-        resp = await self.th1.SendCommand(nodeid=self.dut_node_id, endpoint=0, payload=cmd, timedRequestTimeoutMs=6000)
+            response: Clusters.OperationalCredentials.Commands.NOCResponse = await commissioner.SendCommand(
+                nodeid=self.dut_node_id,
+                endpoint=0,
+                payload=Clusters.OperationalCredentials.Commands.RemoveFabric(fabric.fabricIndex),
+                timedRequestTimeoutMs=1000)
+            asserts.assert_equal(response.statusCode, Clusters.OperationalCredentials.Enums.NodeOperationalCertStatusEnum.kOk)
+
+        self.step("11")
+        self.wait_for_user_input(prompt_msg="Set the DUT into commissioning mode")
+        await asyncio.sleep(5)
+
+        self.step("12")
+        response: Clusters.GeneralCommissioning.Commands.CommissioningCompleteResponse = await commissioner.SendCommand(
+            nodeid=self.dut_node_id,
+            endpoint=0,
+            payload=Clusters.GeneralCommissioning.Commands.CommissioningComplete(),
+            timedRequestTimeoutMs=1000)
+        # Verify that DUT sends CommissioningCompleteResponse Command to TH With ErrorCode as 'TCAcknowledgementsNotReceived'(6).
+        asserts.assert_equal(response.errorCode, Clusters.GeneralCommissioning.Enums.CommissioningErrorEnum.kTCAcknowledgementsNotReceived, 'Incorrect error code')
 
 
 if __name__ == "__main__":
diff --git a/src/python_testing/TC_CGEN_2_5.py.bak b/src/python_testing/TC_CGEN_2_5.py.bak
new file mode 100644
index 00000000000000..fb1056805f5bd7
--- /dev/null
+++ b/src/python_testing/TC_CGEN_2_5.py.bak
@@ -0,0 +1,134 @@
+#
+#    Copyright (c) 2024 Project CHIP Authors
+#    All rights reserved.
+#
+#    Licensed under the Apache License, Version 2.0 (the "License");
+#    you may not use this file except in compliance with the License.
+#    You may obtain a copy of the License at
+#
+#        http://www.apache.org/licenses/LICENSE-2.0
+#
+#    Unless required by applicable law or agreed to in writing, software
+#    distributed under the License is distributed on an "AS IS" BASIS,
+#    WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+#    See the License for the specific language governing permissions and
+#    limitations under the License.
+#
+
+# === BEGIN CI TEST ARGUMENTS ===
+# test-runner-runs: run1
+# test-runner-run/run1/app: ${TERMS_AND_CONDITIONS_APP}
+# test-runner-run/run1/factoryreset: True
+# test-runner-run/run1/quiet: True
+# test-runner-run/run1/app-args: --KVS kvs1
+# test-runner-run/run1/script-args: --commissioning-method on-network --qr-code MT:-24J0AFN00KA0648G00 --tc-version 1 --tc-user-response 1 --trace_file /tmp/chip_trace.log --trace_log 1 --trace_decode 1
+# === END CI TEST ARGUMENTS ===
+
+import logging
+import random
+
+import chip.clusters as Clusters
+from matter_testing_support import MatterBaseTest, async_test_body, default_matter_test_main
+from mobly import asserts
+
+
+class TC_CGEN_2_5(MatterBaseTest):
+    async def verify_tc_attributes(self, expected_tc_version: int, expected_tc_acknowledgements: int):
+        attr = Clusters.GeneralCommissioning.Attributes.TCAcceptedVersion
+        tc_accepted_version = await self.read_single_attribute(dev_ctrl=self.th1, node_id=self.dut_node_id, endpoint=0, attribute=attr)
+        asserts.assert_equal(tc_accepted_version, expected_tc_version,
+                             f"Expected TCAcceptedVersion to be {expected_tc_version}, but got {tc_accepted_version}")
+
+        attr = Clusters.GeneralCommissioning.Attributes.TCAcknowledgements
+        tc_acknowedgements = await self.read_single_attribute(dev_ctrl=self.th1, node_id=self.dut_node_id, endpoint=0, attribute=attr)
+        asserts.assert_equal(tc_acknowedgements, expected_tc_acknowledgements,
+                             f"Expected TCAcknowledgements to be {expected_tc_acknowledgements}, but got {tc_acknowedgements}")
+
+    @async_test_body
+    async def test_TC_CGEN_2_5(self):
+        self.th1 = self.default_controller
+        self.discriminator = random.randint(0, 4095)
+
+        logging.info('Step 1 - TH reads the TCAcceptedVersion attribute')
+        attr = Clusters.GeneralCommissioning.Attributes.TCAcceptedVersion
+        tc_accepted_version = await self.read_single_attribute(dev_ctrl=self.th1, node_id=self.dut_node_id, endpoint=0, attribute=attr)
+
+        print(f"tc_accepted_version: {tc_accepted_version}")
+
+        logging.info('Step 2 - TH reads the TCAcknowledgements attribute')
+        attr = Clusters.GeneralCommissioning.Attributes.TCAcknowledgements
+        tc_acknowedgements = await self.read_single_attribute(dev_ctrl=self.th1, node_id=self.dut_node_id, endpoint=0, attribute=attr)
+        print(f"tc_acknowedgements: {tc_acknowedgements}")
+
+        logging.info('Step 3 - TH reads the TCMinRequiredVersion attribute')
+        attr = Clusters.GeneralCommissioning.Attributes.TCMinRequiredVersion
+        tc_min_requried_version = await self.read_single_attribute(dev_ctrl=self.th1, node_id=self.dut_node_id, endpoint=0, attribute=attr)
+        print(f"tc_min_requried_version: {tc_min_requried_version}")
+
+        logging.info('Step 4 - TH reads the TCAcknowledgementsRequired attribute')
+        attr = Clusters.GeneralCommissioning.Attributes.TCAcknowledgementsRequired
+        tc_required = await self.read_single_attribute(dev_ctrl=self.th1, node_id=self.dut_node_id, endpoint=0, attribute=attr)
+        print(f"tc_required: {tc_required}")
+
+        logging.info('Step 5 - TH sends SetTCAcknowledgements with greater values than current and verify set')
+        new_accepted_version = tc_accepted_version + 1
+        new_acknowledgements = 65535
+
+        cmd = Clusters.GeneralCommissioning.Commands.SetTCAcknowledgements(new_accepted_version, new_acknowledgements)
+        resp = await self.th1.SendCommand(nodeid=self.dut_node_id, endpoint=0, payload=cmd, timedRequestTimeoutMs=6000)
+        asserts.assert_equal(resp.errorCode, Clusters.GeneralCommissioning.Enums.CommissioningErrorEnum.kOk, 'Incorrect error code')
+        await self.verify_tc_attributes(new_accepted_version, new_acknowledgements)
+
+        logging.info('Step 6 - TH sends SetTCAcknowledgements with no accepted terms at version 0')
+        cmd = Clusters.GeneralCommissioning.Commands.SetTCAcknowledgements(0, 0)
+        resp = await self.th1.SendCommand(nodeid=self.dut_node_id, endpoint=0, payload=cmd, timedRequestTimeoutMs=6000)
+        asserts.assert_equal(
+            resp.errorCode, Clusters.GeneralCommissioning.Enums.CommissioningErrorEnum.kTCMinVersionNotMet, 'Incorrect error code'
+        )
+        await self.verify_tc_attributes(new_accepted_version, new_acknowledgements)
+
+        logging.info('Step 7 - TH sends SetTCAcknowledgements with no accepted terms at version 1')
+        cmd = Clusters.GeneralCommissioning.Commands.SetTCAcknowledgements(1, 0)
+        resp = await self.th1.SendCommand(nodeid=self.dut_node_id, endpoint=0, payload=cmd, timedRequestTimeoutMs=6000)
+        asserts.assert_equal(
+            resp.errorCode, Clusters.GeneralCommissioning.Enums.CommissioningErrorEnum.kRequiredTCNotAccepted, 'Incorrect error code'
+        )
+        await self.verify_tc_attributes(new_accepted_version, new_acknowledgements)
+
+        logging.info('Step 8 - TH sends ArmFailSafe with ExpiryLengthSeconds set to 60')
+        cmd = Clusters.GeneralCommissioning.Commands.ArmFailSafe(60)
+        resp = await self.th1.SendCommand(nodeid=self.dut_node_id, endpoint=0, payload=cmd, timedRequestTimeoutMs=6000)
+        asserts.assert_equal(resp.errorCode, Clusters.GeneralCommissioning.Enums.CommissioningErrorEnum.kOk,
+                             'Incorrect error code')
+
+        logging.info('Step 9 - TH sends SetTCAcknowledgements with incremented TCVersion')
+        cmd = Clusters.GeneralCommissioning.Commands.SetTCAcknowledgements(new_accepted_version + 1, new_acknowledgements)
+        resp = await self.th1.SendCommand(nodeid=self.dut_node_id, endpoint=0, payload=cmd, timedRequestTimeoutMs=6000)
+        asserts.assert_equal(resp.errorCode, Clusters.GeneralCommissioning.Enums.CommissioningErrorEnum.kOk,
+                             'Incorrect error code')
+
+        logging.info('Step 10 - TH sends ArmFailSafe with ExpiryLengthSeconds set to 0')
+        cmd = Clusters.GeneralCommissioning.Commands.ArmFailSafe(0)
+        resp = await self.th1.SendCommand(nodeid=self.dut_node_id, endpoint=0, payload=cmd, timedRequestTimeoutMs=6000)
+        asserts.assert_equal(resp.errorCode, Clusters.GeneralCommissioning.Enums.CommissioningErrorEnum.kOk,
+                             'Incorrect error code')
+
+        # Verify that the TC attributes have been reset to the pre-failsafe state
+        await self.verify_tc_attributes(new_accepted_version, new_acknowledgements)
+
+        logging.info('Step 11 - TH removes all fabrics from the device')
+        fabrics = await self.read_single_attribute(dev_ctrl=self.th1, node_id=self.dut_node_id, endpoint=0, attribute=Clusters.OperationalCredentials.Attributes.Fabrics)
+        for fabric in fabrics:
+            if fabric.fabricIndex == self.th1.fabricId:
+                continue
+            cmd = Clusters.OperationalCredentials.Commands.RemoveFabric(fabric.fabricIndex)
+            resp = await self.th1.SendCommand(nodeid=self.dut_node_id, endpoint=0, payload=cmd, timedRequestTimeoutMs=6000)
+            asserts.assert_equal(resp.statusCode, Clusters.OperationalCredentials.Enums.NodeOperationalCertStatusEnum.kOk)
+
+        # Remove TH1 fabric last
+        cmd = Clusters.OperationalCredentials.Commands.RemoveFabric(self.th1.fabricId)
+        resp = await self.th1.SendCommand(nodeid=self.dut_node_id, endpoint=0, payload=cmd, timedRequestTimeoutMs=6000)
+
+
+if __name__ == "__main__":
+    default_matter_test_main()
diff --git a/src/python_testing/TC_CGEN_2_6.py b/src/python_testing/TC_CGEN_2_6.py
index 3ab3a83f2506b0..731761d8c7bd12 100644
--- a/src/python_testing/TC_CGEN_2_6.py
+++ b/src/python_testing/TC_CGEN_2_6.py
@@ -24,8 +24,6 @@
 # test-runner-run/run1/script-args: --in-test-commissioning-method on-network --qr-code MT:-24J0AFN00KA0648G00 --trace-to json:log
 # === END CI TEST ARGUMENTS ===
 
-import random
-
 import chip.clusters as Clusters
 from chip import ChipDeviceCtrl
 from matter_testing_support import MatterBaseTest, TestStep, async_test_body, default_matter_test_main
@@ -43,31 +41,24 @@ def steps_TC_CGEN_2_6(self) -> list[TestStep]:
 
     @async_test_body
     async def test_TC_CGEN_2_6(self):
-        th1: ChipDeviceCtrl.ChipDeviceController = self.default_controller
-        self.discriminator = random.randint(0, 4095)
-
-        self.step("1")
+        commissioner: ChipDeviceCtrl.ChipDeviceController = self.default_controller
 
         # Don't set TCs for the next commissioning and skip CommissioningComplete so we can manually call CommissioningComplete in order to check the response error code
-        th1.SetTCRequired(False)
-        th1.SetSkipCommissioningComplete(True)
+        commissioner.SetTCRequired(False)
+        commissioner.SetSkipCommissioningComplete(True)
         self.matter_test_config.commissioning_method = self.matter_test_config.in_test_commissioning_method
-        await self.commission_devices()
 
-        cmd = Clusters.GeneralCommissioning.Commands.CommissioningComplete()
-        resp = await th1.SendCommand(nodeid=self.dut_node_id, endpoint=0, payload=cmd, timedRequestTimeoutMs=6000)
-        asserts.assert_equal(
-            resp.errorCode, Clusters.GeneralCommissioning.Enums.CommissioningErrorEnum.kTCAcknowledgementsNotReceived, 'Incorrect error code')
-
-        cmd = Clusters.GeneralCommissioning.Commands.SetTCAcknowledgements(1, 0)
-        resp = await th1.SendCommand(nodeid=self.dut_node_id, endpoint=0, payload=cmd, timedRequestTimeoutMs=6000)
-        asserts.assert_equal(
-            resp.errorCode, Clusters.GeneralCommissioning.Enums.CommissioningErrorEnum.kRequiredTCNotAccepted, 'Incorrect error code')
+        self.step("1")
+        await self.commission_devices()
+        response: Clusters.GeneralCommissioning.Commands.CommissioningCompleteResponse = await commissioner.SendCommand(
+            nodeid=self.dut_node_id,
+            endpoint=0,
+            payload=Clusters.GeneralCommissioning.Commands.CommissioningComplete(),
+            timedRequestTimeoutMs=1000)
 
-        cmd = Clusters.GeneralCommissioning.Commands.CommissioningComplete()
-        resp = await th1.SendCommand(nodeid=self.dut_node_id, endpoint=0, payload=cmd, timedRequestTimeoutMs=6000)
+        # Verify that DUT sends CommissioningCompleteResponse Command to TH With ErrorCode as 'TCAcknowledgementsNotReceived'(6).
         asserts.assert_equal(
-            resp.errorCode, Clusters.GeneralCommissioning.Enums.CommissioningErrorEnum.kTCAcknowledgementsNotReceived, 'Incorrect error code')
+            response.errorCode, Clusters.GeneralCommissioning.Enums.CommissioningErrorEnum.kTCAcknowledgementsNotReceived, 'Incorrect error code')
 
 
 if __name__ == "__main__":
diff --git a/src/python_testing/TC_CGEN_2_7.py b/src/python_testing/TC_CGEN_2_7.py
new file mode 100644
index 00000000000000..9338bc5ae55108
--- /dev/null
+++ b/src/python_testing/TC_CGEN_2_7.py
@@ -0,0 +1,79 @@
+#
+#    Copyright (c) 2024 Project CHIP Authors
+#    All rights reserved.
+#
+#    Licensed under the Apache License, Version 2.0 (the "License");
+#    you may not use this file except in compliance with the License.
+#    You may obtain a copy of the License at
+#
+#        http://www.apache.org/licenses/LICENSE-2.0
+#
+#    Unless required by applicable law or agreed to in writing, software
+#    distributed under the License is distributed on an "AS IS" BASIS,
+#    WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+#    See the License for the specific language governing permissions and
+#    limitations under the License.
+#
+
+# === BEGIN CI TEST ARGUMENTS ===
+# test-runner-runs: run1
+# test-runner-run/run1/app: ${TERMS_AND_CONDITIONS_APP}
+# test-runner-run/run1/factoryreset: True
+# test-runner-run/run1/quiet: True
+# test-runner-run/run1/app-args: --KVS kvs1
+# test-runner-run/run1/script-args: --in-test-commissioning-method on-network --qr-code MT:-24J0AFN00KA0648G00 --trace-to json:log
+# === END CI TEST ARGUMENTS ===
+
+import chip.clusters as Clusters
+from chip import ChipDeviceCtrl
+from matter_testing_support import MatterBaseTest, TestStep, async_test_body, default_matter_test_main
+from mobly import asserts
+
+
+class TC_CGEN_2_7(MatterBaseTest):
+    def desc_TC_CGEN_2_7(self) -> str:
+        return "[TC-CGEN-2.7] Verification For CommissioningComplete when SetTCAcknowledgements provides invalid terms [DUT as Server]"
+
+    def steps_TC_CGEN_2_7(self) -> list[TestStep]:
+        return [
+            TestStep("1",  "TH starts commissioning the DUT. It performs all commissioning steps from ArmFailSafe, except SetTCAcknowledgements and CommissioningComplete.", is_commissioning=False),
+            TestStep("2",  "TH sends SetTCAcknowledgements to DUT with the following values:\nTCVersion: Greater than or equal to TCMinRequiredVersion on DUT\nTCUserResponse: 0"),
+            TestStep("3",  "TH sends CommissioningComplete to DUT."),
+        ]
+
+    @async_test_body
+    async def test_TC_CGEN_2_7(self):
+        commissioner: ChipDeviceCtrl.ChipDeviceController = self.default_controller
+
+        # Don't set TCs for the next commissioning and skip CommissioningComplete so we can manually call CommissioningComplete in order to check the response error code
+        commissioner.SetTCRequired(False)
+        commissioner.SetSkipCommissioningComplete(True)
+        self.matter_test_config.commissioning_method = self.matter_test_config.in_test_commissioning_method
+
+        self.step("1")
+        await self.commission_devices()
+
+        self.step("2")
+        response: Clusters.GeneralCommissioning.Commands.SetTCAcknowledgementsResponse = await commissioner.SendCommand(
+            nodeid=self.dut_node_id,
+            endpoint=0,
+            payload=Clusters.GeneralCommissioning.Commands.SetTCAcknowledgements(TCVersion=2**16 - 1, TCUserResponse=0),
+            timedRequestTimeoutMs=1000)
+
+        # Verify that DUT sends SetTCAcknowledgementsResponse Command to TH With ErrorCode as 'RequiredTCNotAccepted'(5).
+        asserts.assert_equal(response.errorCode, Clusters.GeneralCommissioning.Enums.CommissioningErrorEnum.kRequiredTCNotAccepted, 'Incorrect error code')
+        
+        self.step("3")
+        await self.commission_devices()
+        response: Clusters.GeneralCommissioning.Commands.CommissioningCompleteResponse = await commissioner.SendCommand(
+            nodeid=self.dut_node_id,
+            endpoint=0,
+            payload=Clusters.GeneralCommissioning.Commands.CommissioningComplete(),
+            timedRequestTimeoutMs=1000)
+
+        # Verify that DUT sends CommissioningCompleteResponse Command to TH With ErrorCode as 'TCAcknowledgementsNotReceived'(6).
+        asserts.assert_equal(response.errorCode, Clusters.GeneralCommissioning.Enums.CommissioningErrorEnum.kTCAcknowledgementsNotReceived, 'Incorrect error code')
+
+
+if __name__ == "__main__":
+    default_matter_test_main()