diff --git a/src/main/java/budgetbuddy/parser/Parser.java b/src/main/java/budgetbuddy/parser/Parser.java
index c3c5b37582..3e94f8b803 100644
--- a/src/main/java/budgetbuddy/parser/Parser.java
+++ b/src/main/java/budgetbuddy/parser/Parser.java
@@ -4,6 +4,7 @@
 import budgetbuddy.categories.Category;
 
 import budgetbuddy.exceptions.EmptyArgumentException;
+import budgetbuddy.exceptions.InvalidAddTransactionSyntax;
 import budgetbuddy.exceptions.InvalidArgumentSyntaxException;
 import budgetbuddy.exceptions.InvalidCategoryException;
 import budgetbuddy.exceptions.InvalidEditTransactionData;
@@ -33,7 +34,7 @@ public static int parseAccountNumber(String input) throws InvalidArgumentSyntaxE
 
     public Transaction parseUserInputToTransaction(String input, Account account)
             throws InvalidTransactionTypeException, NumberFormatException,
-            EmptyArgumentException, InvalidCategoryException {
+            EmptyArgumentException, InvalidCategoryException, InvalidAddTransactionSyntax {
         String data = input.substring(ADD_COMMAND_INDEX + 1);
         String[] parseData = data.split("/");
         String type = null;
@@ -78,6 +79,9 @@ public Transaction parseUserInputToTransaction(String input, Account account)
             throw new InvalidCategoryException("Category Index out of bounds");
         }
 
+        if (Double.parseDouble(amount) < 0) {
+            throw new InvalidAddTransactionSyntax("Amount cannot be negative");
+        }
 
         if (description.trim().isEmpty() || type.trim().isEmpty()) {
             throw new EmptyArgumentException("data for the arguments ");
diff --git a/src/test/java/budgetbuddy/parser/ParserTest.java b/src/test/java/budgetbuddy/parser/ParserTest.java
index 63476d5911..d55e57ffcc 100644
--- a/src/test/java/budgetbuddy/parser/ParserTest.java
+++ b/src/test/java/budgetbuddy/parser/ParserTest.java
@@ -1,6 +1,7 @@
 package budgetbuddy.parser;
 import budgetbuddy.account.Account;
 import budgetbuddy.exceptions.EmptyArgumentException;
+import budgetbuddy.exceptions.InvalidAddTransactionSyntax;
 import budgetbuddy.exceptions.InvalidCategoryException;
 import budgetbuddy.exceptions.InvalidEditTransactionData;
 import budgetbuddy.exceptions.InvalidTransactionTypeException;
@@ -16,7 +17,7 @@ public class ParserTest {
 
     @Test
     public void testParseTransaction() throws InvalidTransactionTypeException, EmptyArgumentException,
-            InvalidCategoryException {
+            InvalidCategoryException, InvalidAddTransactionSyntax {
         Parser parser = new Parser();
         Account account = new Account(1);
         String input = "add /t/Income /n/Shopping /$/50 /d/14-03-2024 /c/1";