diff --git a/test/e2e/tests/ipfs-toggle.spec.js b/test/e2e/tests/ipfs-toggle.spec.js
new file mode 100644
index 000000000..0fc6392e5
--- /dev/null
+++ b/test/e2e/tests/ipfs-toggle.spec.js
@@ -0,0 +1,67 @@
+const { strict: assert } = require('assert');
+const {
+  withFixtures,
+  defaultGanacheOptions,
+  unlockWallet,
+} = require('../helpers');
+const FixtureBuilder = require('../fixture-builder');
+const { SMART_CONTRACTS } = require('../seeder/smart-contracts');
+
+describe('Settings', function () {
+  const smartContract = SMART_CONTRACTS.ERC1155;
+  it('Shows nft default image when IPFS toggle is off and restore image once we toggle the ipfs modal', async function () {
+    await withFixtures(
+      {
+        dapp: true,
+        fixtures: new FixtureBuilder().withNftControllerERC1155().build(),
+        defaultGanacheOptions,
+        smartContract,
+        title: this.test.title,
+      },
+      async ({ driver }) => {
+        await driver.navigate();
+        await unlockWallet(driver);
+
+        await driver.clickElement(
+          '[data-testid="account-options-menu-button"]',
+        );
+        await driver.clickElement({ text: 'Settings', tag: 'div' });
+        await driver.clickElement({ text: 'Security & privacy', tag: 'div' });
+
+        await driver.clickElement('[data-testid="setting-ipfs-gateway"] label');
+        await driver.clickElement(
+          '.settings-page__header__title-container__close-button',
+        );
+        await driver.clickElement('[data-testid="home__nfts-tab"]');
+        const importedNftImage = await driver.findVisibleElement(
+          '.nft-item__container',
+        );
+        await importedNftImage.click();
+
+        // check for default image
+        const nftDefaultImage = await driver.findElement(
+          '[data-testid=nft-default-image]',
+        );
+        assert.equal(await nftDefaultImage.isDisplayed(), true);
+
+        // check for show button on default image
+        await driver.clickElement({
+          text: 'Show',
+          tag: 'button',
+        });
+        const toggleIpfsModal = await driver.findElement('.toggle-ipfs-modal');
+        assert.equal(await toggleIpfsModal.isDisplayed(), true);
+
+        // Toggle on ipfs when click on confirm button in modal
+        await driver.clickElement({
+          text: 'Confirm',
+          tag: 'button',
+        });
+
+        // should render image now
+        const nftImage = await driver.findElement('[data-testid="nft-image"]');
+        assert.equal(await nftImage.isDisplayed(), true);
+      },
+    );
+  });
+});