diff --git a/.changelog/unreleased/testing/3982-test-unshields-multiple-digits.md b/.changelog/unreleased/testing/3982-test-unshields-multiple-digits.md
new file mode 100644
index 0000000000..8f7a13cca3
--- /dev/null
+++ b/.changelog/unreleased/testing/3982-test-unshields-multiple-digits.md
@@ -0,0 +1,3 @@
+- Increase the default masp fee payment gas limit to 65000 in genesis
+  localnet files. Moreover, add additional test cases for MASP fee unshields.
+  ([\#3982](https://github.com/anoma/namada/pull/3982))
\ No newline at end of file
diff --git a/crates/tests/src/integration/masp.rs b/crates/tests/src/integration/masp.rs
index 790756a6bd..9cd8aaf07f 100644
--- a/crates/tests/src/integration/masp.rs
+++ b/crates/tests/src/integration/masp.rs
@@ -28,7 +28,7 @@ use crate::e2e::setup::constants::{
     AA_PAYMENT_ADDRESS, AA_VIEWING_KEY, AB_PAYMENT_ADDRESS, AB_VIEWING_KEY,
     AC_PAYMENT_ADDRESS, AC_VIEWING_KEY, ALBERT, ALBERT_KEY, A_SPENDING_KEY,
     BB_PAYMENT_ADDRESS, BERTHA, BERTHA_KEY, BTC, B_SPENDING_KEY, CHRISTEL,
-    CHRISTEL_KEY, ETH, MASP, NAM,
+    CHRISTEL_KEY, C_SPENDING_KEY, ETH, MASP, NAM,
 };
 use crate::strings::TX_APPLIED_SUCCESS;
 
@@ -696,6 +696,8 @@ fn values_spanning_multiple_masp_digits() -> Result<()> {
 
     // Assert that we have minted NAM rewards
     const EXPECTED_REWARDS: u128 = 6427858447239330;
+    const UNSHIELD_REWARDS_AMT: u128 = EXPECTED_REWARDS / 2;
+    const REMAINING_REWARDS_AMT: u128 = EXPECTED_REWARDS - UNSHIELD_REWARDS_AMT;
 
     let captured = CapturedOutput::of(|| {
         run(
@@ -715,6 +717,185 @@ fn values_spanning_multiple_masp_digits() -> Result<()> {
     assert!(captured.result.is_ok(), "{:?}", captured.result);
     assert!(captured.contains(&format!("nam: {EXPECTED_REWARDS}")));
 
+    // Unshield half of the rewards. Pay for gas transparently
+    let captured = CapturedOutput::of(|| {
+        run(
+            &node,
+            Bin::Client,
+            vec![
+                "unshield",
+                "--source",
+                A_SPENDING_KEY,
+                "--target",
+                BERTHA,
+                "--token",
+                NAM,
+                "--amount",
+                &UNSHIELD_REWARDS_AMT.to_string(),
+                "--signing-keys",
+                BERTHA_KEY,
+                "--node",
+                RPC,
+                "--gas-limit",
+                "65000",
+            ],
+        )
+    });
+    assert!(captured.result.is_ok(), "{:?}", captured.result);
+    assert!(captured.contains(TX_APPLIED_SUCCESS));
+
+    // Fetch latest shielded state
+    run(
+        &node,
+        Bin::Client,
+        vec![
+            "shielded-sync",
+            "--viewing-keys",
+            AA_VIEWING_KEY,
+            "--node",
+            RPC,
+        ],
+    )?;
+
+    // Check that we now have half of the rewards
+    let captured = CapturedOutput::of(|| {
+        run(
+            &node,
+            Bin::Client,
+            vec![
+                "balance",
+                "--owner",
+                AA_VIEWING_KEY,
+                "--token",
+                NAM,
+                "--node",
+                RPC,
+            ],
+        )
+    });
+    assert!(captured.result.is_ok(), "{:?}", captured.result);
+    assert!(captured.contains(&format!("nam: {REMAINING_REWARDS_AMT}")));
+
+    // Shield 1 NAM to cover fees
+    let captured = CapturedOutput::of(|| {
+        run(
+            &node,
+            Bin::Client,
+            vec![
+                "shield",
+                "--source",
+                BERTHA_KEY,
+                "--target",
+                AC_PAYMENT_ADDRESS,
+                "--token",
+                NAM,
+                "--amount",
+                "1",
+                "--gas-payer",
+                BERTHA_KEY,
+                "--node",
+                RPC,
+            ],
+        )
+    });
+    assert!(captured.result.is_ok(), "{:?}", captured.result);
+    assert!(captured.contains(TX_APPLIED_SUCCESS));
+
+    // Fetch latest shielded state
+    run(
+        &node,
+        Bin::Client,
+        vec![
+            "shielded-sync",
+            "--viewing-keys",
+            AA_VIEWING_KEY,
+            AC_VIEWING_KEY,
+            "--node",
+            RPC,
+        ],
+    )?;
+
+    // Check the shielded NAM balance
+    let captured = CapturedOutput::of(|| {
+        run(
+            &node,
+            Bin::Client,
+            vec![
+                "balance",
+                "--owner",
+                AC_VIEWING_KEY,
+                "--token",
+                NAM,
+                "--node",
+                RPC,
+            ],
+        )
+    });
+    assert!(captured.result.is_ok(), "{:?}", captured.result);
+    assert!(captured.contains("nam: 1"));
+
+    // Unshield the other half of the rewards. Pay for gas using
+    // a spending key
+    let captured = CapturedOutput::of(|| {
+        run(
+            &node,
+            Bin::Client,
+            vec![
+                "unshield",
+                "--source",
+                A_SPENDING_KEY,
+                "--target",
+                BERTHA,
+                "--token",
+                NAM,
+                "--amount",
+                &REMAINING_REWARDS_AMT.to_string(),
+                "--node",
+                RPC,
+                "--disposable-gas-payer",
+                "--gas-spending-key",
+                C_SPENDING_KEY,
+                "--gas-limit",
+                "65000",
+            ],
+        )
+    });
+    assert!(captured.result.is_ok(), "{:?}", captured.result);
+    assert!(captured.contains(TX_APPLIED_SUCCESS));
+
+    // Fetch latest shielded state
+    run(
+        &node,
+        Bin::Client,
+        vec![
+            "shielded-sync",
+            "--viewing-keys",
+            AA_VIEWING_KEY,
+            AC_VIEWING_KEY,
+            "--node",
+            RPC,
+        ],
+    )?;
+
+    // Check that we now have a null NAM balance
+    let captured = CapturedOutput::of(|| {
+        run(
+            &node,
+            Bin::Client,
+            vec![
+                "balance",
+                "--owner",
+                AA_VIEWING_KEY,
+                "--token",
+                NAM,
+                "--node",
+                RPC,
+            ],
+        )
+    });
+    assert!(captured.result.is_ok(), "{:?}", captured.result);
+    assert!(captured.contains("nam: 0"));
+
     Ok(())
 }
 
diff --git a/genesis/hardware/parameters.toml b/genesis/hardware/parameters.toml
index 1bf0dfd65a..5b9caade99 100644
--- a/genesis/hardware/parameters.toml
+++ b/genesis/hardware/parameters.toml
@@ -21,7 +21,7 @@ masp_epoch_multiplier = 2
 # Max gas for block
 max_block_gas = 3_000_000
 # Masp fee payment gas limit
-masp_fee_payment_gas_limit = 50_000
+masp_fee_payment_gas_limit = 65_000
 # Gas scale
 gas_scale = 50_000
 
diff --git a/genesis/localnet/parameters.toml b/genesis/localnet/parameters.toml
index cb07d138b1..0d9db2961a 100644
--- a/genesis/localnet/parameters.toml
+++ b/genesis/localnet/parameters.toml
@@ -21,7 +21,7 @@ masp_epoch_multiplier = 2
 # Max gas for block
 max_block_gas = 3_000_000
 # Masp fee payment gas limit
-masp_fee_payment_gas_limit = 50_000
+masp_fee_payment_gas_limit = 65_000
 # Gas scale
 gas_scale = 50_000
 
diff --git a/genesis/starter/parameters.toml b/genesis/starter/parameters.toml
index a034213be4..2336ea9304 100644
--- a/genesis/starter/parameters.toml
+++ b/genesis/starter/parameters.toml
@@ -21,7 +21,7 @@ masp_epoch_multiplier = 2
 # Max gas for block
 max_block_gas = 3_000_000
 # Masp fee payment gas limit
-masp_fee_payment_gas_limit = 50_000
+masp_fee_payment_gas_limit = 65_000
 # Gas scale
 gas_scale = 50_000