diff --git a/crates/blockifier/src/blockifier/transaction_executor_test.rs b/crates/blockifier/src/blockifier/transaction_executor_test.rs
index 3089818a87..9a954fb999 100644
--- a/crates/blockifier/src/blockifier/transaction_executor_test.rs
+++ b/crates/blockifier/src/blockifier/transaction_executor_test.rs
@@ -227,13 +227,17 @@ fn test_invoke(
 }
 
 #[rstest]
-fn test_l1_handler(block_context: BlockContext) {
+fn test_l1_handler(
+    block_context: BlockContext,
+    #[values(TransactionVersion::ZERO, TransactionVersion::THREE)] version: TransactionVersion,
+) {
     let test_contract = FeatureContract::TestContract(CairoVersion::Cairo1);
     let state = test_state(&block_context.chain_info, BALANCE, &[(test_contract, 1)]);
 
     let tx = Transaction::L1Handler(l1handler_tx(
         Fee(1908000000000000),
         test_contract.get_instance_address(0),
+        version,
     ));
     let expected_bouncer_weights = BouncerWeights {
         state_diff_size: 4,
diff --git a/crates/blockifier/src/test_utils/l1_handler.rs b/crates/blockifier/src/test_utils/l1_handler.rs
index a57d08b8b6..8471a32657 100644
--- a/crates/blockifier/src/test_utils/l1_handler.rs
+++ b/crates/blockifier/src/test_utils/l1_handler.rs
@@ -7,7 +7,11 @@ use starknet_api::transaction::fields::Fee;
 use starknet_api::transaction::TransactionVersion;
 use starknet_types_core::felt::Felt;
 
-pub fn l1handler_tx(l1_fee: Fee, contract_address: ContractAddress) -> L1HandlerTransaction {
+pub fn l1handler_tx(
+    l1_fee: Fee,
+    contract_address: ContractAddress,
+    version: TransactionVersion,
+) -> L1HandlerTransaction {
     let calldata = calldata![
         Felt::from(0x123), // from_address.
         Felt::from(0x876), // key.
@@ -15,7 +19,7 @@ pub fn l1handler_tx(l1_fee: Fee, contract_address: ContractAddress) -> L1Handler
     ];
 
     executable_l1_handler_tx(L1HandlerTxArgs {
-        version: TransactionVersion::ZERO,
+        version,
         contract_address,
         entry_point_selector: selector_from_name("l1_handler_set_value"),
         calldata,
diff --git a/crates/blockifier/src/transaction/transactions_test.rs b/crates/blockifier/src/transaction/transactions_test.rs
index 7ee175ec79..cf1c8db5b0 100644
--- a/crates/blockifier/src/transaction/transactions_test.rs
+++ b/crates/blockifier/src/transaction/transactions_test.rs
@@ -2242,7 +2242,10 @@ fn test_only_query_flag(
 }
 
 #[rstest]
-fn test_l1_handler(#[values(false, true)] use_kzg_da: bool) {
+fn test_l1_handler(
+    #[values(false, true)] use_kzg_da: bool,
+    #[values(TransactionVersion::ZERO, TransactionVersion::THREE)] version: TransactionVersion,
+) {
     let gas_mode = GasVectorComputationMode::NoL2Gas;
     let test_contract = FeatureContract::TestContract(CairoVersion::Cairo1);
     let chain_info = &ChainInfo::create_for_testing();
@@ -2250,7 +2253,7 @@ fn test_l1_handler(#[values(false, true)] use_kzg_da: bool) {
     let block_context = &BlockContext::create_for_account_testing_with_kzg(use_kzg_da);
     let contract_address = test_contract.get_instance_address(0);
     let versioned_constants = &block_context.versioned_constants;
-    let tx = l1handler_tx(Fee(1), contract_address);
+    let tx = l1handler_tx(Fee(1), contract_address, version);
     let calldata = tx.tx.calldata.clone();
     let key = calldata.0[1];
     let value = calldata.0[2];
@@ -2384,9 +2387,9 @@ fn test_l1_handler(#[values(false, true)] use_kzg_da: bool) {
 
     // set the storage back to 0, so the fee will also include the storage write.
     // TODO(Meshi, 15/6/2024): change the l1_handler_set_value cairo function to
-    // always uptade the storage instad.
+    // always update the storage instead.
     state.set_storage_at(contract_address, StorageKey::try_from(key).unwrap(), Felt::ZERO).unwrap();
-    let tx_no_fee = l1handler_tx(Fee(0), contract_address);
+    let tx_no_fee = l1handler_tx(Fee(0), contract_address, version);
     let error = tx_no_fee.execute(state, block_context, false, true).unwrap_err(); // Do not charge fee as L1Handler's resource bounds (/max fee) is 0.
     // Today, we check that the paid_fee is positive, no matter what was the actual fee.
     let expected_actual_fee =
diff --git a/crates/starknet_api/src/test_utils/l1_handler.rs b/crates/starknet_api/src/test_utils/l1_handler.rs
index e977469b11..0610ac8711 100644
--- a/crates/starknet_api/src/test_utils/l1_handler.rs
+++ b/crates/starknet_api/src/test_utils/l1_handler.rs
@@ -48,15 +48,9 @@ macro_rules! l1_handler_tx_args {
 pub fn executable_l1_handler_tx(
     l1_handler_tx_args: L1HandlerTxArgs,
 ) -> ExecutableL1HandlerTransaction {
-    let tx_version = l1_handler_tx_args.version;
-    // TODO(Arni): Re-enable this validation.
-    // if tx_version != TransactionVersion::THREE {
-    //     panic!("Unsupported transaction version: {:?}.", l1_handler_tx_args.version);
-    // }
-
     ExecutableL1HandlerTransaction {
         tx: L1HandlerTransaction {
-            version: tx_version,
+            version: l1_handler_tx_args.version,
             nonce: l1_handler_tx_args.nonce,
             contract_address: l1_handler_tx_args.contract_address,
             entry_point_selector: l1_handler_tx_args.entry_point_selector,