diff --git a/x/registry/keeper/msg_server_update_top_level_domain_registration_policy_test.go b/x/registry/keeper/msg_server_update_top_level_domain_registration_policy_test.go
new file mode 100644
index 00000000..6c20b812
--- /dev/null
+++ b/x/registry/keeper/msg_server_update_top_level_domain_registration_policy_test.go
@@ -0,0 +1,92 @@
+package keeper_test
+
+import (
+	"fmt"
+
+	errorsmod "cosmossdk.io/errors"
+
+	"github.com/mycel-domain/mycel/testutil"
+	"github.com/mycel-domain/mycel/x/registry/types"
+)
+
+func (suite *KeeperTestSuite) TestUpdateTopLevelDomainRegistrationPolicy() {
+	testCases := []struct {
+		creator            string
+		name               string
+		registrationPolicy string
+		expErr             error
+		fn                 func()
+	}{
+		{
+			creator:            testutil.Alice,
+			name:               "foo",
+			registrationPolicy: "PUBLIC",
+			expErr:             nil,
+			fn:                 func() {},
+		},
+		{
+			creator:            testutil.Alice,
+			name:               "foo",
+			registrationPolicy: "PRIVATE",
+			expErr:             nil,
+			fn:                 func() {},
+		},
+		{
+			creator:            testutil.Alice,
+			name:               "foo",
+			registrationPolicy: "INVALID",
+			expErr:             errorsmod.Wrapf(types.ErrInvalidRegistrationPolicy, "INVALID"),
+			fn:                 func() {},
+		},
+		{
+			creator:            testutil.Alice,
+			name:               "invalid",
+			registrationPolicy: "PUBLIC",
+			expErr:             errorsmod.Wrapf(types.ErrSecondLevelDomainNotFound, "invalid"),
+			fn:                 func() {},
+		},
+		{
+			creator:            testutil.Bob,
+			name:               "foo",
+			registrationPolicy: "PUBLIC",
+			expErr:             errorsmod.Wrapf(types.ErrSecondLevelDomainNotEditable, "%s", testutil.Bob),
+			fn:                 func() {},
+		},
+	}
+	for i, tc := range testCases {
+		suite.Run(fmt.Sprintf("Case %d", i), func() {
+			suite.SetupTest()
+
+			// NOTE: cel TLD is registered by Alice by default
+
+			// Run test case function
+			tc.fn()
+
+			// Update dns record
+			msgUpdateTopLevelDomainRegistrationPolicy := &types.MsgUpdateTopLevelDomainRegistrationPolicy{
+				Creator:            tc.creator,
+				Name:               tc.name,
+				RegistrationPolicy: tc.registrationPolicy,
+			}
+
+			_, err := suite.msgServer.UpdateTopLevelDomainRegistrationPolicy(suite.ctx, msgUpdateTopLevelDomainRegistrationPolicy)
+
+			if tc.expErr == nil {
+				// Check if the record is updated
+				suite.Require().Nil(err)
+				res, _ := suite.app.RegistryKeeper.GetTopLevelDomain(suite.ctx, "cel")
+				suite.Require().Equal(tc.registrationPolicy, res.GetRegistrationPolicy())
+				// Evalute events
+				events, found := testutil.FindEventsByType(suite.ctx.EventManager().Events(), types.EventTypeUpdateTopLevelDomainRegistrationPolicy)
+				suite.Require().True(found)
+
+				for _, event := range events {
+					suite.Require().Equal(tc.name, event.Attributes[0].Value)
+					suite.Require().Equal(tc.registrationPolicy, event.Attributes[1].Value)
+				}
+			} else {
+				suite.Require().EqualError(err, tc.expErr.Error())
+			}
+		})
+	}
+}