diff --git a/Cargo.lock b/Cargo.lock
index 082fe9fbd792..e5beda6176a4 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -8236,6 +8236,7 @@ dependencies = [
  "alloy-eips",
  "reth-chainspec",
  "reth-consensus-common",
+ "reth-ethereum-forks",
  "reth-execution-errors",
  "reth-primitives",
  "reth-prune-types",
diff --git a/crates/revm/Cargo.toml b/crates/revm/Cargo.toml
index bbb60b293edd..665d61a37d8a 100644
--- a/crates/revm/Cargo.toml
+++ b/crates/revm/Cargo.toml
@@ -33,6 +33,7 @@ tracing.workspace = true
 
 [dev-dependencies]
 reth-trie.workspace = true
+reth-ethereum-forks.workspace = true
 
 [features]
 default = ["std", "c-kzg"]
diff --git a/crates/revm/src/state_change.rs b/crates/revm/src/state_change.rs
index 519f9704d702..f0ca1255771c 100644
--- a/crates/revm/src/state_change.rs
+++ b/crates/revm/src/state_change.rs
@@ -168,3 +168,230 @@ pub fn insert_post_block_withdrawals_balance_increments(
         }
     }
 }
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+    use reth_ethereum_forks::{ChainHardforks, EthereumHardfork, ForkCondition};
+    use reth_primitives::constants::GWEI_TO_WEI;
+
+    /// Tests that the function correctly inserts balance increments when the Shanghai hardfork is
+    /// active and there are withdrawals.
+    #[test]
+    fn test_insert_post_block_withdrawals_balance_increments_shanghai_active_with_withdrawals() {
+        // Arrange
+        // Create a ChainSpec with the Shanghai hardfork active at timestamp 100
+        let chain_spec = ChainSpec {
+            hardforks: ChainHardforks::new(vec![(
+                Box::new(EthereumHardfork::Shanghai),
+                ForkCondition::Timestamp(100),
+            )]),
+            ..Default::default()
+        };
+
+        // Define the block timestamp and withdrawals
+        let block_timestamp = 1000;
+        let withdrawals = vec![
+            Withdrawal {
+                address: Address::from([1; 20]),
+                amount: 1000,
+                index: 45,
+                validator_index: 12,
+            },
+            Withdrawal {
+                address: Address::from([2; 20]),
+                amount: 500,
+                index: 412,
+                validator_index: 123,
+            },
+        ];
+
+        // Create an empty HashMap to hold the balance increments
+        let mut balance_increments = HashMap::new();
+
+        // Act
+        // Call the function with the prepared inputs
+        insert_post_block_withdrawals_balance_increments(
+            &chain_spec,
+            block_timestamp,
+            Some(&withdrawals),
+            &mut balance_increments,
+        );
+
+        // Assert
+        // Verify that the balance increments map has the correct number of entries
+        assert_eq!(balance_increments.len(), 2);
+        // Verify that the balance increments map contains the correct values for each address
+        assert_eq!(
+            *balance_increments.get(&Address::from([1; 20])).unwrap(),
+            (1000 * GWEI_TO_WEI).into()
+        );
+        assert_eq!(
+            *balance_increments.get(&Address::from([2; 20])).unwrap(),
+            (500 * GWEI_TO_WEI).into()
+        );
+    }
+
+    /// Tests that the function correctly handles the case when Shanghai is active but there are no
+    /// withdrawals.
+    #[test]
+    fn test_insert_post_block_withdrawals_balance_increments_shanghai_active_no_withdrawals() {
+        // Arrange
+        // Create a ChainSpec with the Shanghai hardfork active
+        let chain_spec = ChainSpec {
+            hardforks: ChainHardforks::new(vec![(
+                Box::new(EthereumHardfork::Shanghai),
+                ForkCondition::Timestamp(100),
+            )]),
+            ..Default::default()
+        };
+
+        // Define the block timestamp and an empty list of withdrawals
+        let block_timestamp = 1000;
+        let withdrawals = Vec::<Withdrawal>::new();
+
+        // Create an empty HashMap to hold the balance increments
+        let mut balance_increments = HashMap::new();
+
+        // Act
+        // Call the function with the prepared inputs
+        insert_post_block_withdrawals_balance_increments(
+            &chain_spec,
+            block_timestamp,
+            Some(&withdrawals),
+            &mut balance_increments,
+        );
+
+        // Assert
+        // Verify that the balance increments map is empty
+        assert!(balance_increments.is_empty());
+    }
+
+    /// Tests that the function correctly handles the case when Shanghai is not active even if there
+    /// are withdrawals.
+    #[test]
+    fn test_insert_post_block_withdrawals_balance_increments_shanghai_not_active_with_withdrawals()
+    {
+        // Arrange
+        // Create a ChainSpec without the Shanghai hardfork active
+        let chain_spec = ChainSpec::default(); // Mock chain spec with Shanghai not active
+
+        // Define the block timestamp and withdrawals
+        let block_timestamp = 1000;
+        let withdrawals = vec![
+            Withdrawal {
+                address: Address::from([1; 20]),
+                amount: 1000,
+                index: 45,
+                validator_index: 12,
+            },
+            Withdrawal {
+                address: Address::from([2; 20]),
+                amount: 500,
+                index: 412,
+                validator_index: 123,
+            },
+        ];
+
+        // Create an empty HashMap to hold the balance increments
+        let mut balance_increments = HashMap::new();
+
+        // Act
+        // Call the function with the prepared inputs
+        insert_post_block_withdrawals_balance_increments(
+            &chain_spec,
+            block_timestamp,
+            Some(&withdrawals),
+            &mut balance_increments,
+        );
+
+        // Assert
+        // Verify that the balance increments map is empty
+        assert!(balance_increments.is_empty());
+    }
+
+    /// Tests that the function correctly handles the case when Shanghai is active but all
+    /// withdrawals have zero amounts.
+    #[test]
+    fn test_insert_post_block_withdrawals_balance_increments_shanghai_active_with_zero_withdrawals()
+    {
+        // Arrange
+        // Create a ChainSpec with the Shanghai hardfork active
+        let chain_spec = ChainSpec {
+            hardforks: ChainHardforks::new(vec![(
+                Box::new(EthereumHardfork::Shanghai),
+                ForkCondition::Timestamp(100),
+            )]),
+            ..Default::default()
+        };
+
+        // Define the block timestamp and withdrawals with zero amounts
+        let block_timestamp = 1000;
+        let withdrawals = vec![
+            Withdrawal {
+                address: Address::from([1; 20]),
+                amount: 0, // Zero withdrawal amount
+                index: 45,
+                validator_index: 12,
+            },
+            Withdrawal {
+                address: Address::from([2; 20]),
+                amount: 0, // Zero withdrawal amount
+                index: 412,
+                validator_index: 123,
+            },
+        ];
+
+        // Create an empty HashMap to hold the balance increments
+        let mut balance_increments = HashMap::new();
+
+        // Act
+        // Call the function with the prepared inputs
+        insert_post_block_withdrawals_balance_increments(
+            &chain_spec,
+            block_timestamp,
+            Some(&withdrawals),
+            &mut balance_increments,
+        );
+
+        // Assert
+        // Verify that the balance increments map is empty
+        assert!(balance_increments.is_empty());
+    }
+
+    /// Tests that the function correctly handles the case when Shanghai is active but there are no
+    /// withdrawals provided.
+    #[test]
+    fn test_insert_post_block_withdrawals_balance_increments_shanghai_active_with_empty_withdrawals(
+    ) {
+        // Arrange
+        // Create a ChainSpec with the Shanghai hardfork active
+        let chain_spec = ChainSpec {
+            hardforks: ChainHardforks::new(vec![(
+                Box::new(EthereumHardfork::Shanghai),
+                ForkCondition::Timestamp(100),
+            )]),
+            ..Default::default()
+        };
+
+        // Define the block timestamp and no withdrawals
+        let block_timestamp = 1000;
+        let withdrawals = None; // No withdrawals provided
+
+        // Create an empty HashMap to hold the balance increments
+        let mut balance_increments = HashMap::new();
+
+        // Act
+        // Call the function with the prepared inputs
+        insert_post_block_withdrawals_balance_increments(
+            &chain_spec,
+            block_timestamp,
+            withdrawals,
+            &mut balance_increments,
+        );
+
+        // Assert
+        // Verify that the balance increments map is empty
+        assert!(balance_increments.is_empty());
+    }
+}