diff --git a/pkg/registry/common/expire/nse_server.go b/pkg/registry/common/expire/nse_server.go
index 0ffcbefec..be0d5edb4 100644
--- a/pkg/registry/common/expire/nse_server.go
+++ b/pkg/registry/common/expire/nse_server.go
@@ -1,6 +1,6 @@
 // Copyright (c) 2020-2022 Doc.ai and/or its affiliates.
 //
-// Copyright (c) 2023 Cisco and/or its affiliates.
+// Copyright (c) 2023-2024 Cisco and/or its affiliates.
 //
 // SPDX-License-Identifier: Apache-2.0
 //
@@ -29,9 +29,11 @@ import (
 	"github.com/networkservicemesh/api/pkg/api/registry"
 
 	"github.com/networkservicemesh/sdk/pkg/registry/common/begin"
+	"github.com/networkservicemesh/sdk/pkg/registry/common/updatepath"
 	"github.com/networkservicemesh/sdk/pkg/registry/core/next"
 	"github.com/networkservicemesh/sdk/pkg/tools/clock"
 	"github.com/networkservicemesh/sdk/pkg/tools/log"
+	"github.com/networkservicemesh/sdk/pkg/tools/token"
 )
 
 type expireNSEServer struct {
@@ -67,9 +69,11 @@ func (s *expireNSEServer) Register(ctx context.Context, nse *registry.NetworkSer
 		requestTimeout = 0
 	}
 
-	expirationTime := nse.GetExpirationTime().AsTime()
-	if nse.GetExpirationTime() == nil {
-		expirationTime = timeClock.Now().Add(s.defaultExpiration).Local()
+	// Select the min(tokenExpirationTime, peerExpirationTime, defaultExpirationTime)
+	expirationTime, expirationTimeSelected := s.selectMinExpirationTime(ctx)
+
+	// Update nse ExpirationTime if expirationTime is before
+	if expirationTimeSelected && (nse.GetExpirationTime() == nil || expirationTime.Before(nse.GetExpirationTime().AsTime().Local())) {
 		nse.ExpirationTime = timestamppb.New(expirationTime)
 		logger.Infof("selected expiration time %v for %v", expirationTime, nse.GetName())
 	}
@@ -79,7 +83,7 @@ func (s *expireNSEServer) Register(ctx context.Context, nse *registry.NetworkSer
 		return nil, err
 	}
 
-	if nseExpirationTime := resp.GetExpirationTime().AsTime().Local(); nseExpirationTime.Before(expirationTime) {
+	if nseExpirationTime := resp.GetExpirationTime().AsTime().Local(); expirationTimeSelected && nseExpirationTime.Before(expirationTime) {
 		expirationTime = nseExpirationTime
 		logger.Infof("selected expiration time %v for %v", expirationTime, resp.GetName())
 	}
@@ -114,3 +118,34 @@ func (s *expireNSEServer) Unregister(ctx context.Context, nse *registry.NetworkS
 	}
 	return next.NetworkServiceEndpointRegistryServer(ctx).Unregister(ctx, nse)
 }
+
+func (s *expireNSEServer) selectMinExpirationTime(ctx context.Context) (time.Time, bool) {
+	timeClock := clock.FromContext(ctx)
+
+	var expirationTime *time.Time
+	if tokenExpirationTime := updatepath.ExpirationTimeFromContext(ctx); tokenExpirationTime != nil {
+		expirationTime = tokenExpirationTime
+	} else {
+		log.FromContext(ctx).Warn("error during getting token expiration time from the context")
+	}
+
+	if _, peerExpirationTime, peerTokenErr := token.FromContext(ctx); peerTokenErr == nil {
+		if expirationTime == nil || peerExpirationTime.Before(*expirationTime) {
+			expirationTime = &peerExpirationTime
+		}
+	} else {
+		log.FromContext(ctx).Warnf("error during getting peer expiration time from the context: %v", peerTokenErr)
+	}
+
+	if s.defaultExpiration != 0 {
+		defaultExpirationTime := timeClock.Now().Add(s.defaultExpiration).Local()
+		if expirationTime == nil || defaultExpirationTime.Before(*expirationTime) {
+			expirationTime = &defaultExpirationTime
+		}
+	}
+	if expirationTime == nil {
+		return time.Time{}, false
+	}
+
+	return *expirationTime, true
+}
diff --git a/pkg/registry/common/expire/nse_server_test.go b/pkg/registry/common/expire/nse_server_test.go
index 82cfe4a4b..774fd3296 100644
--- a/pkg/registry/common/expire/nse_server_test.go
+++ b/pkg/registry/common/expire/nse_server_test.go
@@ -1,6 +1,6 @@
 // Copyright (c) 2020-2022 Doc.ai and/or its affiliates.
 //
-// Copyright (c) 2023 Cisco and/or its affiliates.
+// Copyright (c) 2023-2024 Cisco and/or its affiliates.
 //
 // SPDX-License-Identifier: Apache-2.0
 //
@@ -170,6 +170,28 @@ func TestExpireNSEServer_ShouldSetDefaultExpiration(t *testing.T) {
 	require.Equal(t, expireTimeout, clockMock.Until(resp.ExpirationTime.AsTime()))
 }
 
+func TestExpireNSEServer_ShouldUseLessExpirationTime_DefaultExpireTimeout(t *testing.T) {
+	t.Cleanup(func() { goleak.VerifyNone(t) })
+
+	ctx, cancel := context.WithCancel(context.Background())
+	defer cancel()
+
+	clockMock := clockmock.New(ctx)
+	ctx = clock.WithClock(ctx, clockMock)
+
+	s := next.NewNetworkServiceEndpointRegistryServer(
+		injectpeertoken.NewNetworkServiceEndpointRegistryServer(generateTestToken(ctx, expireTimeout)),
+		updatepath.NewNetworkServiceEndpointRegistryServer(generateTestToken(ctx, expireTimeout)),
+		begin.NewNetworkServiceEndpointRegistryServer(),
+		expire.NewNetworkServiceEndpointRegistryServer(ctx, expire.WithDefaultExpiration(expireTimeout/2)),
+	)
+
+	resp, err := s.Register(ctx, &registry.NetworkServiceEndpoint{Name: "nse-1"})
+	require.NoError(t, err)
+
+	require.Equal(t, expireTimeout/2, clockMock.Until(resp.ExpirationTime.AsTime()))
+}
+
 func TestExpireNSEServer_ShouldUseLessExpirationTimeFromResponse(t *testing.T) {
 	t.Cleanup(func() { goleak.VerifyNone(t) })
 
@@ -187,6 +209,7 @@ func TestExpireNSEServer_ShouldUseLessExpirationTimeFromResponse(t *testing.T) {
 		new(remoteNSEServer), // <-- GRPC invocation
 		begin.NewNetworkServiceEndpointRegistryServer(),
 		updatepath.NewNetworkServiceEndpointRegistryServer(generateTestToken(ctx, expireTimeout/2)),
+		expire.NewNetworkServiceEndpointRegistryServer(ctx),
 	)
 
 	resp, err := s.Register(ctx, &registry.NetworkServiceEndpoint{Name: "nse-1"})
diff --git a/pkg/registry/common/updatepath/context.go b/pkg/registry/common/updatepath/context.go
new file mode 100644
index 000000000..ce63d78a9
--- /dev/null
+++ b/pkg/registry/common/updatepath/context.go
@@ -0,0 +1,37 @@
+// Copyright (c) 2024 Cisco and/or its affiliates.
+//
+// SPDX-License-Identifier: Apache-2.0
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at:
+//
+//     http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+package updatepath
+
+import (
+	"context"
+	"time"
+)
+
+type key struct{}
+
+// ExpirationTimeFromContext returns the expiration time stored in context
+func ExpirationTimeFromContext(ctx context.Context) *time.Time {
+	if value, ok := ctx.Value(key{}).(*time.Time); ok {
+		return value
+	}
+	return nil
+}
+
+// withExpirationTime sets the expiration time stored in context
+func withExpirationTime(ctx context.Context, t *time.Time) context.Context {
+	return context.WithValue(ctx, key{}, t)
+}
diff --git a/pkg/registry/common/updatepath/nse_server.go b/pkg/registry/common/updatepath/nse_server.go
index e9e5bf2ce..86e182f55 100644
--- a/pkg/registry/common/updatepath/nse_server.go
+++ b/pkg/registry/common/updatepath/nse_server.go
@@ -1,4 +1,4 @@
-// Copyright (c) 2022 Cisco and/or its affiliates.
+// Copyright (c) 2022-2024 Cisco and/or its affiliates.
 //
 // SPDX-License-Identifier: Apache-2.0
 //
@@ -21,7 +21,6 @@ import (
 
 	"github.com/golang/protobuf/ptypes/empty"
 	"github.com/pkg/errors"
-	"google.golang.org/protobuf/types/known/timestamppb"
 
 	"github.com/networkservicemesh/api/pkg/api/registry"
 
@@ -46,7 +45,7 @@ func (s *updatePathNSEServer) Register(ctx context.Context, nse *registry.Networ
 	path := grpcmetadata.PathFromContext(ctx)
 
 	// Update path
-	peerTok, peerExpirationTime, peerTokenErr := token.FromContext(ctx)
+	peerTok, _, peerTokenErr := token.FromContext(ctx)
 	if peerTokenErr != nil {
 		log.FromContext(ctx).Warnf("an error during getting peer token from the context: %+v", peerTokenErr)
 	}
@@ -71,12 +70,7 @@ func (s *updatePathNSEServer) Register(ctx context.Context, nse *registry.Networ
 	nse.PathIds = updatePathIds(nse.PathIds, int(path.Index-1), peerID.String())
 	nse.PathIds = updatePathIds(nse.PathIds, int(path.Index), id.String())
 
-	if nse.GetExpirationTime() == nil || expirationTime.Before(nse.GetExpirationTime().AsTime().Local()) {
-		nse.ExpirationTime = timestamppb.New(expirationTime)
-	}
-	if peerTokenErr == nil && peerExpirationTime.Before(nse.GetExpirationTime().AsTime().Local()) {
-		nse.ExpirationTime = timestamppb.New(peerExpirationTime)
-	}
+	ctx = withExpirationTime(ctx, &expirationTime)
 
 	nse, err = next.NetworkServiceEndpointRegistryServer(ctx).Register(ctx, nse)
 	if err != nil {
diff --git a/pkg/tools/token/context.go b/pkg/tools/token/context.go
index 6b0d15a81..451cc458b 100644
--- a/pkg/tools/token/context.go
+++ b/pkg/tools/token/context.go
@@ -1,6 +1,6 @@
 // Copyright (c) 2021 Doc.ai and/or its affiliates.
 //
-// Copyright (c) 2023 Cisco and/or its affiliates.
+// Copyright (c) 2023-2024 Cisco and/or its affiliates.
 //
 // SPDX-License-Identifier: Apache-2.0
 //
@@ -37,7 +37,7 @@ func FromContext(ctx context.Context) (string, time.Time, error) {
 	md, ok := metadata.FromIncomingContext(ctx)
 
 	if !ok {
-		return "", time.Time{}, errors.New("metadata is missed in ctx")
+		return "", time.Time{}, errors.New("grpc metadata is missed in ctx")
 	}
 
 	token, err := getSingleValue(md, tokenKey)