diff --git a/api/subscriptions/subscriptions_test.go b/api/subscriptions/subscriptions_test.go
index fb308d3bc..cce2fd8f2 100644
--- a/api/subscriptions/subscriptions_test.go
+++ b/api/subscriptions/subscriptions_test.go
@@ -8,23 +8,28 @@ package subscriptions
 import (
 	"encoding/json"
 	"fmt"
+	"io"
 	"net/http"
 	"net/http/httptest"
 	"net/url"
 	"strings"
 	"testing"
+	"time"
 
 	"github.com/gorilla/mux"
 	"github.com/gorilla/websocket"
 	"github.com/stretchr/testify/assert"
 	"github.com/vechain/thor/v2/block"
 	"github.com/vechain/thor/v2/chain"
+	"github.com/vechain/thor/v2/genesis"
+	"github.com/vechain/thor/v2/muxdb"
+	"github.com/vechain/thor/v2/packer"
+	"github.com/vechain/thor/v2/state"
 	"github.com/vechain/thor/v2/thor"
 	"github.com/vechain/thor/v2/txpool"
 )
 
 var ts *httptest.Server
-var client *http.Client
 var sub *Subscriptions
 var txPool *txpool.TxPool
 var repo *chain.Repository
@@ -220,5 +225,83 @@ func initSubscriptionsServer(t *testing.T) {
 	sub = New(repo, []string{}, 5, txPool)
 	sub.Mount(router, "/subscriptions")
 	ts = httptest.NewServer(router)
-	client = &http.Client{}
+}
+
+func TestSubscriptionsBacktrace(t *testing.T) {
+	r, generatedBlocks, pool := initChainMultipleBlocks(t, 10)
+	repo = r
+	txPool = pool
+	blocks = generatedBlocks
+	router := mux.NewRouter()
+	sub = New(repo, []string{}, 5, txPool)
+	sub.Mount(router, "/subscriptions")
+	ts = httptest.NewServer(router)
+	defer ts.Close()
+
+	t.Run("testHandleSubjectWithTransferBacktraceLimit", testHandleSubjectWithTransferBacktraceLimit)
+}
+func testHandleSubjectWithTransferBacktraceLimit(t *testing.T) {
+	genesisBlock := blocks[0]
+	queryArg := fmt.Sprintf("pos=%s", genesisBlock.Header().ID().String())
+	u := url.URL{Scheme: "ws", Host: strings.TrimPrefix(ts.URL, "http://"), Path: "/subscriptions/transfer", RawQuery: queryArg}
+
+	conn, resp, err := websocket.DefaultDialer.Dial(u.String(), nil)
+	assert.Error(t, err)
+	assert.Equal(t, "websocket: bad handshake", err.Error())
+	defer resp.Body.Close() // Ensure body is closed after reading
+
+	// Read the response body
+	body, err := io.ReadAll(resp.Body)
+	if err != nil {
+		t.Fatalf("failed to read response body: %v", err)
+	}
+	assert.Equal(t, body, []byte("pos: backtrace limit exceeded\n"))
+	assert.Nil(t, conn)
+}
+
+func initChainMultipleBlocks(t *testing.T, blockCount int) (*chain.Repository, []*block.Block, *txpool.TxPool) {
+	db := muxdb.NewMem()
+	stater := state.NewStater(db)
+	gene := genesis.NewDevnet()
+
+	b, _, _, err := gene.Build(stater)
+	if err != nil {
+		t.Fatal(err)
+	}
+	repo, _ := chain.NewRepository(db, b)
+
+	txPool := txpool.New(repo, stater, txpool.Options{
+		Limit:           100,
+		LimitPerAccount: 16,
+		MaxLifetime:     time.Hour,
+	})
+
+	packer := packer.New(repo, stater, genesis.DevAccounts()[0].Address, &genesis.DevAccounts()[0].Address, thor.NoFork)
+
+	tmpBlock := b
+	createdBlocks := []*block.Block{b}
+	for i := 0; i < blockCount; i++ {
+		sum, _ := repo.GetBlockSummary(tmpBlock.Header().ID())
+		flow, err := packer.Schedule(sum, uint64(time.Now().Unix()))
+		if err != nil {
+			t.Fatal(err)
+		}
+		blk, stage, receipts, err := flow.Pack(genesis.DevAccounts()[0].PrivateKey, 0, false)
+		if err != nil {
+			t.Fatal(err)
+		}
+		if _, err := stage.Commit(); err != nil {
+			t.Fatal(err)
+		}
+		if err := repo.AddBlock(blk, receipts, 0); err != nil {
+			t.Fatal(err)
+		}
+		if err := repo.SetBestBlockID(blk.Header().ID()); err != nil {
+			t.Fatal(err)
+		}
+		createdBlocks = append(createdBlocks, blk)
+		tmpBlock = blk
+	}
+
+	return repo, createdBlocks, txPool
 }