diff --git a/pallets/funding/src/tests/1_application.rs b/pallets/funding/src/tests/1_application.rs
index db64ff3c6..1ca0596bc 100644
--- a/pallets/funding/src/tests/1_application.rs
+++ b/pallets/funding/src/tests/1_application.rs
@@ -557,6 +557,68 @@ mod create_project_extrinsic {
 				);
 			});
 		}
+
+		#[test]
+		fn unaccepted_decimal_ranges() {
+			let mut inst = MockInstantiator::new(Some(RefCell::new(new_test_ext())));
+
+			let mut fail_with_decimals = |decimals: u8| {
+				let mut project_metadata = default_project_metadata(ISSUER_1);
+				project_metadata.token_information.decimals = decimals;
+				let jwt = get_mock_jwt_with_cid(
+					ISSUER_1,
+					InvestorType::Institutional,
+					generate_did_from_account(ISSUER_1),
+					project_metadata.clone().policy_ipfs_cid.unwrap(),
+				);
+				inst.execute(|| {
+					assert_noop!(
+						Pallet::<TestRuntime>::create_project(
+							RuntimeOrigin::signed(ISSUER_1),
+							jwt.clone(),
+							project_metadata.clone()
+						),
+						Error::<TestRuntime>::BadMetadata(MetadataError::BadDecimals)
+					);
+				});
+			};
+
+			// less than 4 should fail
+			for i in 0..=3 {
+				fail_with_decimals(i);
+			}
+
+			// more than 20 should fail
+			for i in 21..=30 {
+				fail_with_decimals(i);
+			}
+
+			let mut issuer = ISSUER_2;
+			let mut succeed_with_decimals = |decimals: u8| {
+				let mut project_metadata = default_project_metadata(issuer);
+				project_metadata.token_information.decimals = decimals;
+				let jwt = get_mock_jwt_with_cid(
+					issuer,
+					InvestorType::Institutional,
+					generate_did_from_account(issuer),
+					project_metadata.clone().policy_ipfs_cid.unwrap(),
+				);
+
+				inst.mint_plmc_to(vec![(issuer, 1000 * PLMC).into()]);
+				inst.execute(|| {
+					assert_ok!(Pallet::<TestRuntime>::create_project(
+						RuntimeOrigin::signed(issuer),
+						jwt.clone(),
+						project_metadata.clone()
+					));
+				});
+				issuer +=1 ;
+			};
+			// 5 to 20 succeeds
+			for i in 5..=20 {
+				succeed_with_decimals(i);
+			}
+		}
 	}
 }
 
diff --git a/pallets/funding/src/tests/4_community.rs b/pallets/funding/src/tests/4_community.rs
index e7ff2e3bb..dde7fde70 100644
--- a/pallets/funding/src/tests/4_community.rs
+++ b/pallets/funding/src/tests/4_community.rs
@@ -292,7 +292,7 @@ mod round_flow {
 			for decimals in 0..25 {
 				decimal_test(decimals);
 			}
-gt
+
 			// Since we use the same original price and allocation size and adjust for decimals,
 			// the USD and PLMC amounts should be the same
 			assert!(total_fundings_usd.iter().all(|x| *x == total_fundings_usd[0]));
diff --git a/pallets/funding/src/types.rs b/pallets/funding/src/types.rs
index 1803eb1b1..4b761ad21 100644
--- a/pallets/funding/src/types.rs
+++ b/pallets/funding/src/types.rs
@@ -244,6 +244,10 @@ pub mod storage_types {
 			if target_funding < (1000u64 * 10u64.pow(USD_DECIMALS.into())).into() {
 				return Err(MetadataError::FundingTargetTooLow);
 			}
+
+			if self.token_information.decimals < 4 || self.token_information.decimals > 20 {
+				return Err(MetadataError::BadDecimals);
+			}
 			Ok(())
 		}
 	}
@@ -758,6 +762,8 @@ pub mod inner_types {
 		FundingTargetTooLow,
 		/// The project's metadata hash is not provided while starting the evaluation round.
 		CidNotProvided,
+		/// The ct decimals specified for the CT is outside the 4 to 20 range.
+		BadDecimals,
 	}
 
 	/// Errors related to the project's migration process.