diff --git a/backend/e2e-test/routes/v1/secret-replication.spec.ts b/backend/e2e-test/routes/v1/secret-replication.spec.ts
index d28223d2c..f762165a2 100644
--- a/backend/e2e-test/routes/v1/secret-replication.spec.ts
+++ b/backend/e2e-test/routes/v1/secret-replication.spec.ts
@@ -5,9 +5,9 @@ import { createSecretV2, deleteSecretV2, getSecretByNameV2, getSecretsV2 } from
 import { seedData1 } from "@app/db/seed-data";
 
 // dev <- stage <- prod
-describe.each([{ path: "/" }, { path: "/deep" }])(
-  "Secret replication waterfall pattern testing - %path",
-  ({ path: testSuitePath }) => {
+describe.each([{ secretPath: "/" }, { secretPath: "/deep" }])(
+  "Secret replication waterfall pattern testing - %secretPath",
+  ({ secretPath: testSuitePath }) => {
     beforeAll(async () => {
       let prodFolder: { id: string };
       let stagingFolder: { id: string };
@@ -140,6 +140,7 @@ describe.each([{ path: "/" }, { path: "/deep" }])(
         secretPath: testSuitePath,
         authToken: jwtAuthToken
       });
+
       expect(listSecrets.imports).toEqual(
         expect.arrayContaining([
           expect.objectContaining({
diff --git a/backend/e2e-test/routes/v3/secret-reference.spec.ts b/backend/e2e-test/routes/v3/secret-reference.spec.ts
index 42f3b9c14..fb23cdc25 100644
--- a/backend/e2e-test/routes/v3/secret-reference.spec.ts
+++ b/backend/e2e-test/routes/v3/secret-reference.spec.ts
@@ -1,4 +1,5 @@
 import { createFolder, deleteFolder } from "e2e-test/testUtils/folders";
+import { createSecretImport, deleteSecretImport } from "e2e-test/testUtils/secret-imports";
 import { createSecretV2, deleteSecretV2, getSecretByNameV2, getSecretsV2 } from "e2e-test/testUtils/secrets";
 
 import { seedData1 } from "@app/db/seed-data";
@@ -150,4 +151,180 @@ describe("Secret expansion", () => {
 
     await Promise.all(secrets.map((el) => deleteSecretV2(el)));
   });
+
+  test("Non replicated secret import secret expansion on local reference and nested reference", async () => {
+    const secrets = [
+      {
+        environmentSlug: "prod",
+        workspaceId: projectId,
+        secretPath: "/deep",
+        authToken: jwtAuthToken,
+        key: "DEEP_KEY_1",
+        value: "testing"
+      },
+      {
+        environmentSlug: "prod",
+        workspaceId: projectId,
+        secretPath: "/deep/nested",
+        authToken: jwtAuthToken,
+        key: "NESTED_KEY_1",
+        value: "reference"
+      },
+      {
+        environmentSlug: "prod",
+        workspaceId: projectId,
+        secretPath: "/deep/nested",
+        authToken: jwtAuthToken,
+        key: "NESTED_KEY_2",
+        // eslint-disable-next-line
+        value: "secret ${NESTED_KEY_1} ${prod.deep.DEEP_KEY_1}"
+      },
+      {
+        environmentSlug: seedData1.environment.slug,
+        workspaceId: projectId,
+        secretPath: "/",
+        authToken: jwtAuthToken,
+        key: "KEY",
+        // eslint-disable-next-line
+        value: "hello world"
+      }
+    ];
+
+    await Promise.all(secrets.map((el) => createSecretV2(el)));
+    const secretImportFromProdToDev = await createSecretImport({
+      environmentSlug: seedData1.environment.slug,
+      workspaceId: projectId,
+      secretPath: "/",
+      authToken: jwtAuthToken,
+      importEnv: "prod",
+      importPath: "/deep/nested"
+    });
+
+    const listSecrets = await getSecretsV2({
+      environmentSlug: seedData1.environment.slug,
+      workspaceId: projectId,
+      secretPath: "/",
+      authToken: jwtAuthToken
+    });
+    expect(listSecrets.imports).toEqual(
+      expect.arrayContaining([
+        expect.objectContaining({
+          secretPath: "/deep/nested",
+          environment: "prod",
+          secrets: expect.arrayContaining([
+            expect.objectContaining({
+              secretKey: "NESTED_KEY_1",
+              secretValue: "reference"
+            }),
+            expect.objectContaining({
+              secretKey: "NESTED_KEY_2",
+              secretValue: "secret reference testing"
+            })
+          ])
+        })
+      ])
+    );
+
+    await Promise.all(secrets.map((el) => deleteSecretV2(el)));
+    await deleteSecretImport({
+      environmentSlug: seedData1.environment.slug,
+      workspaceId: projectId,
+      authToken: jwtAuthToken,
+      id: secretImportFromProdToDev.id,
+      secretPath: "/"
+    });
+  });
+
+  test(
+    "Replicated secret import secret expansion on local reference and nested reference",
+    async () => {
+      const secrets = [
+        {
+          environmentSlug: "prod",
+          workspaceId: projectId,
+          secretPath: "/deep",
+          authToken: jwtAuthToken,
+          key: "DEEP_KEY_1",
+          value: "testing"
+        },
+        {
+          environmentSlug: "prod",
+          workspaceId: projectId,
+          secretPath: "/deep/nested",
+          authToken: jwtAuthToken,
+          key: "NESTED_KEY_1",
+          value: "reference"
+        },
+        {
+          environmentSlug: "prod",
+          workspaceId: projectId,
+          secretPath: "/deep/nested",
+          authToken: jwtAuthToken,
+          key: "NESTED_KEY_2",
+          // eslint-disable-next-line
+          value: "secret ${NESTED_KEY_1} ${prod.deep.DEEP_KEY_1}"
+        },
+        {
+          environmentSlug: seedData1.environment.slug,
+          workspaceId: projectId,
+          secretPath: "/",
+          authToken: jwtAuthToken,
+          key: "KEY",
+          // eslint-disable-next-line
+          value: "hello world"
+        }
+      ];
+
+      await Promise.all(secrets.map((el) => createSecretV2(el)));
+      const secretImportFromProdToDev = await createSecretImport({
+        environmentSlug: seedData1.environment.slug,
+        workspaceId: projectId,
+        secretPath: "/",
+        authToken: jwtAuthToken,
+        importEnv: "prod",
+        importPath: "/deep/nested",
+        isReplication: true
+      });
+
+      // wait for 5 second for  replication to finish
+      await new Promise((resolve) => {
+        setTimeout(resolve, 5000); // time to breathe for db
+      });
+
+      const listSecrets = await getSecretsV2({
+        environmentSlug: seedData1.environment.slug,
+        workspaceId: projectId,
+        secretPath: "/",
+        authToken: jwtAuthToken
+      });
+      expect(listSecrets.imports).toEqual(
+        expect.arrayContaining([
+          expect.objectContaining({
+            secretPath: `/__reserve_replication_${secretImportFromProdToDev.id}`,
+            environment: seedData1.environment.slug,
+            secrets: expect.arrayContaining([
+              expect.objectContaining({
+                secretKey: "NESTED_KEY_1",
+                secretValue: "reference"
+              }),
+              expect.objectContaining({
+                secretKey: "NESTED_KEY_2",
+                secretValue: "secret reference testing"
+              })
+            ])
+          })
+        ])
+      );
+
+      await Promise.all(secrets.map((el) => deleteSecretV2(el)));
+      await deleteSecretImport({
+        environmentSlug: seedData1.environment.slug,
+        workspaceId: projectId,
+        authToken: jwtAuthToken,
+        id: secretImportFromProdToDev.id,
+        secretPath: "/"
+      });
+    },
+    { timeout: 10000 }
+  );
 });
diff --git a/backend/e2e-test/vitest-environment-knex.ts b/backend/e2e-test/vitest-environment-knex.ts
index f57e54373..7be0b860f 100644
--- a/backend/e2e-test/vitest-environment-knex.ts
+++ b/backend/e2e-test/vitest-environment-knex.ts
@@ -30,7 +30,7 @@ export default {
     });
 
     const redis = new Redis(cfg.REDIS_URL);
-    await redis.flushdb("ASYNC");
+    await redis.flushdb("SYNC");
 
     try {
       await db.migrate.rollback(