diff --git a/pytest/lib/cluster.py b/pytest/lib/cluster.py
index 2c7eb2bb9a1..cc5ce12eb5b 100644
--- a/pytest/lib/cluster.py
+++ b/pytest/lib/cluster.py
@@ -1014,6 +1014,7 @@ def apply_config_changes(node_dir: str,
                                'save_trie_changes', 'split_storage',
                                'state_sync', 'state_sync_enabled',
                                'store.state_snapshot_enabled',
+                               'store.state_snapshot_config.state_snapshot_type',
                                'tracked_shard_schedule', 'cold_store',
                                'store.load_mem_tries_for_tracked_shards')
 
diff --git a/pytest/tests/sanity/state_sync_decentralized.py b/pytest/tests/sanity/state_sync_decentralized.py
new file mode 100644
index 00000000000..564bfef6092
--- /dev/null
+++ b/pytest/tests/sanity/state_sync_decentralized.py
@@ -0,0 +1,139 @@
+#!/usr/bin/env python3
+# Spins up 4 validating nodes. Let validators track a single shard.
+# Add a dumper node for the state sync headers.
+# Add an RPC node to issue tx and change the state.
+# Send random transactions between accounts in different shards.
+# Shuffle the shard assignment of validators and check if they can sync up.
+
+import unittest
+import sys
+import pathlib
+
+sys.path.append(str(pathlib.Path(__file__).resolve().parents[2] / 'lib'))
+
+from configured_logger import logger
+from cluster import start_cluster
+import state_sync_lib
+from utils import wait_for_blocks
+import simple_test
+
+EPOCH_LENGTH = 10
+
+NUM_VALIDATORS = 4
+
+# Shard layout with 5 roughly equal size shards for convenience.
+SHARD_LAYOUT = {
+    "V1": {
+        "boundary_accounts": [
+            "fff",
+            "lll",
+            "rrr",
+        ],
+        "version": 2,
+        "shards_split_map": [],
+        "to_parent_shard_map": [],
+    }
+}
+
+NUM_SHARDS = len(SHARD_LAYOUT["V1"]["boundary_accounts"]) + 1
+
+ALL_ACCOUNTS_PREFIXES = [
+    "aaa",
+    "ggg",
+    "lll",
+    "sss",
+]
+
+
+class StateSyncValidatorShardSwap(unittest.TestCase):
+
+    def _prepare_cluster(self, with_rpc=False, shuffle_shard_assignment=False):
+        (node_config_dump,
+         node_config_sync) = state_sync_lib.get_state_sync_configs_pair(
+             tracked_shards=None)
+
+        # State snapshot is disabled for dumper. We only want to dump the headers.
+        node_config_dump["store.state_snapshot_enabled"] = False
+        node_config_dump["store.state_snapshot_config.state_snapshot_type"] = "ForReshardingOnly"
+
+        # State snapshot is enabled for validators. They will share parts of the state.
+        node_config_sync["store.state_snapshot_enabled"] = True
+        node_config_sync["tracked_shards"] = []
+
+        # Validators
+        configs = {x: node_config_sync.copy() for x in range(NUM_VALIDATORS)}
+
+        # Dumper
+        configs[NUM_VALIDATORS] = node_config_dump
+
+        if with_rpc:
+            # RPC
+            configs[NUM_VALIDATORS + 1] = node_config_sync.copy()
+            # RPC tracks all shards.
+            configs[NUM_VALIDATORS + 1]["tracked_shards"] = [0]
+            # RPC node does not participate in state parts distribution.
+            configs[NUM_VALIDATORS + 1]["store.state_snapshot_enabled"] = False
+            configs[NUM_VALIDATORS + 1]["store.state_snapshot_config.state_snapshot_type"] = "ForReshardingOnly"
+
+        nodes = start_cluster(
+            num_nodes=NUM_VALIDATORS,
+            num_observers=1 + (1 if with_rpc else 0),
+            num_shards=NUM_SHARDS,
+            config=None,
+            genesis_config_changes=[
+                ["epoch_length", EPOCH_LENGTH], ["shard_layout", SHARD_LAYOUT],
+                [
+                    "shuffle_shard_assignment_for_chunk_producers",
+                    shuffle_shard_assignment
+                ], ["block_producer_kickout_threshold", 0],
+                ["chunk_producer_kickout_threshold", 0]
+            ],
+            client_config_changes=configs)
+
+        for node in nodes:
+            node.stop_checking_store()
+
+        self.dumper_node = nodes[NUM_VALIDATORS]
+        self.rpc_node = nodes[NUM_VALIDATORS +
+                              1] if with_rpc else self.dumper_node
+        self.nodes = nodes
+        self.validators = nodes[:NUM_VALIDATORS]
+
+    def _prepare_simple_transfers(self):
+        self.testcase = simple_test.SimpleTransferBetweenAccounts(
+            nodes=self.nodes,
+            rpc_node=self.rpc_node,
+            account_prefixes=ALL_ACCOUNTS_PREFIXES,
+            epoch_length=EPOCH_LENGTH)
+
+        self.testcase.wait_for_blocks(3)
+
+        self.testcase.create_accounts()
+
+        self.testcase.deploy_contracts()
+
+    def _clear_cluster(self):
+        self.testcase = None
+        for node in self.nodes:
+            node.cleanup()
+
+    def test_state_sync_with_shard_swap(self):
+        # Dumper node will not track any shard. So we need a dedicated RPC node.
+        # TODO: enable shuffle_shard_assignment after decentralized state sync is implemented.
+        self._prepare_cluster(with_rpc=True, shuffle_shard_assignment=False)
+        self._prepare_simple_transfers()
+
+        target_height = 6 * EPOCH_LENGTH
+        self.testcase.random_workload_until(target_height)
+
+        # Wait for all nodes to reach epoch 6.
+        for n in self.validators:
+            wait_for_blocks(n, target=target_height)
+        logger.info("Test ended")
+
+    def tearDown(self):
+        self._clear_cluster()
+
+
+if __name__ == '__main__':
+    unittest.main()