diff --git a/cypress/e2e/finance/funds/making-an-existing-fund-restricted-by-location.cy.js b/cypress/e2e/finance/funds/making-an-existing-fund-restricted-by-location.cy.js
new file mode 100644
index 0000000000..ab0239a7f6
--- /dev/null
+++ b/cypress/e2e/finance/funds/making-an-existing-fund-restricted-by-location.cy.js
@@ -0,0 +1,76 @@
+import permissions from '../../../support/dictionary/permissions';
+import FinanceHelp from '../../../support/fragments/finance/financeHelper';
+import FiscalYears from '../../../support/fragments/finance/fiscalYears/fiscalYears';
+import Funds from '../../../support/fragments/finance/funds/funds';
+import Ledgers from '../../../support/fragments/finance/ledgers/ledgers';
+import TopMenu from '../../../support/fragments/topMenu';
+import Users from '../../../support/fragments/users/users';
+import NewLocation from '../../../support/fragments/settings/tenant/locations/newLocation';
+import ServicePoints from '../../../support/fragments/settings/tenant/servicePoints/servicePoints';
+
+describe('ui-finance: Funds', () => {
+  const defaultFund = { ...Funds.defaultUiFund };
+  const defaultFiscalYear = { ...FiscalYears.defaultUiFiscalYear };
+  const defaultLedger = { ...Ledgers.defaultUiLedger };
+  let user;
+  let servicePointId;
+  let location;
+
+  before(() => {
+    cy.getAdminToken();
+
+    FiscalYears.createViaApi(defaultFiscalYear).then((response) => {
+      defaultFiscalYear.id = response.id;
+      defaultLedger.fiscalYearOneId = defaultFiscalYear.id;
+
+      Ledgers.createViaApi(defaultLedger).then((ledgerResponse) => {
+        defaultLedger.id = ledgerResponse.id;
+        defaultFund.ledgerId = defaultLedger.id;
+        Funds.createViaApi(defaultFund).then((fundResponse) => {
+          defaultFund.id = fundResponse.fund.id;
+        });
+      });
+    });
+
+    ServicePoints.getViaApi().then((servicePoint) => {
+      servicePointId = servicePoint[0].id;
+      NewLocation.createViaApi(NewLocation.getDefaultLocation(servicePointId)).then((res) => {
+        location = res;
+      });
+    });
+
+    cy.createTempUser([permissions.uiFinanceViewEditCreateFundAndBudget.gui]).then(
+      (userProperties) => {
+        user = userProperties;
+        cy.login(userProperties.username, userProperties.password, {
+          path: TopMenu.fundPath,
+          waiter: Funds.waitLoading,
+        });
+      },
+    );
+  });
+
+  after(() => {
+    cy.getAdminToken();
+    Funds.deleteFundViaApi(defaultFund.id);
+    Ledgers.deleteledgerViaApi(defaultLedger.id);
+    FiscalYears.deleteFiscalYearViaApi(defaultFiscalYear.id);
+    Users.deleteViaApi(user.userId);
+  });
+
+  it(
+    'C423530 Marking Fund as restricted by location when create a fund (thunderjet)',
+    { tags: ['criticalPath', 'thunderjet'] },
+    () => {
+      FinanceHelp.searchByName(defaultFund.name);
+      Funds.selectFund(defaultFund.name);
+      Funds.editBudget();
+      Funds.clickRestrictByLocationsCheckbox();
+      Funds.varifyLocationSectionExist();
+      Funds.addLocationToFund(location.name);
+      Funds.save();
+      Funds.varifyFundIsSaved();
+      Funds.waitForFundDetailsLoading();
+    },
+  );
+});
diff --git a/cypress/support/fragments/finance/funds/funds.js b/cypress/support/fragments/finance/funds/funds.js
index d312fe65f7..074d6561da 100644
--- a/cypress/support/fragments/finance/funds/funds.js
+++ b/cypress/support/fragments/finance/funds/funds.js
@@ -69,6 +69,8 @@ const addExpenseClassButton = Button({ id: 'budget-status-expense-classes-add-bu
 const saveAndClose = Button('Save & close');
 const fundFormSection = Section({ id: 'pane-fund-form' });
 const locationSection = Section({ id: 'locations' });
+const editButton = Button('Edit');
+const selectLocationsModal = Modal('Select locations');
 
 export default {
   defaultUiFund: {
@@ -166,6 +168,19 @@ export default {
     cy.wait(4000);
   },
 
+  addLocationToFund(locationName) {
+    cy.do([
+      locationSection.find(Button({ id: 'fund-locations' })).click(),
+      selectLocationsModal.find(SearchField({ id: 'input-record-search' })).fillIn(locationName),
+      Button('Search').click(),
+    ]);
+    cy.wait(2000);
+    cy.do([
+      selectLocationsModal.find(Checkbox({ ariaLabel: 'Select all' })).click(),
+      selectLocationsModal.find(Button('Save')).click(),
+    ]);
+  },
+
   varifyLocationSectionExist() {
     cy.expect(fundFormSection.find(locationSection).exists());
   },
@@ -212,7 +227,7 @@ export default {
   addGroupToFund: (group) => {
     cy.do([
       actionsButton.click(),
-      Button('Edit').click(),
+      editButton.click(),
       MultiSelect({ label: 'Group' }).select([group]),
       saveAndCloseButton.click(),
     ]);
@@ -222,7 +237,7 @@ export default {
   addTransferTo: (fund) => {
     cy.do([
       actionsButton.click(),
-      Button('Edit').click(),
+      editButton.click(),
       MultiSelect({ label: 'Transfer to' }).select([fund]),
       saveAndCloseButton.click(),
     ]);
@@ -856,7 +871,7 @@ export default {
 
   editBudget: () => {
     cy.wait(4000);
-    cy.do([actionsButton.click(), Button('Edit').click()]);
+    cy.do([actionsButton.click(), editButton.click()]);
   },
 
   changeStatusOfBudget: (statusName, fund, fiscalYear) => {
@@ -1051,7 +1066,7 @@ export default {
   },
 
   addAUToFund: (AUName) => {
-    cy.do([actionsButton.click(), Button('Edit').click()]);
+    cy.do([actionsButton.click(), editButton.click()]);
     // eslint-disable-next-line cypress/no-unnecessary-waiting
     cy.wait(4000);
     cy.do([