diff --git a/app/controllers/epp/domains_controller.rb b/app/controllers/epp/domains_controller.rb
index 2b708d66c..1295f558e 100644
--- a/app/controllers/epp/domains_controller.rb
+++ b/app/controllers/epp/domains_controller.rb
@@ -311,6 +311,7 @@ module Epp
 
     def status_editing_disabled
       return true if Setting.client_status_editing_enabled
+      return true if check_client_hold
       return true if params[:parsed_frame].css('status').empty?
       epp_errors << {
         code: '2306',
@@ -318,6 +319,11 @@ module Epp
       }
     end
 
+    def check_client_hold
+      statuses = params[:parsed_frame].css('status').map { |element| element['s'] }
+      statuses == [::DomainStatus::CLIENT_HOLD]
+    end
+
     def balance_ok?(operation, period = nil, unit = nil)
       @domain_pricelist = @domain.pricelist(operation, period.try(:to_i), unit)
       if @domain_pricelist.try(:price) # checking if price list is not found
diff --git a/test/integration/epp/domain/update/base_test.rb b/test/integration/epp/domain/update/base_test.rb
index 41c451373..3cdae2d52 100644
--- a/test/integration/epp/domain/update/base_test.rb
+++ b/test/integration/epp/domain/update/base_test.rb
@@ -303,6 +303,56 @@ class EppDomainUpdateBaseTest < EppTestCase
     assert @domain.inactive?
   end
 
+  def test_update_domain_allows_add_of_client_hold
+    request_xml = <<-XML
+      <?xml version="1.0" encoding="UTF-8" standalone="no"?>
+      <epp xmlns="https://epp.tld.ee/schema/epp-ee-1.0.xsd">
+        <command>
+          <update>
+            <domain:update xmlns:domain="https://epp.tld.ee/schema/domain-eis-1.0.xsd">
+              <domain:name>shop.test</domain:name>
+                <domain:add>
+                  <domain:status s="clientHold" lang="en">Test</domain:status>
+                </domain:add>
+              </domain:update>
+          </update>
+        </command>
+      </epp>
+    XML
+
+    post epp_update_path, params: { frame: request_xml },
+         headers: { 'HTTP_COOKIE' => 'session=api_bestnames' }
+    @domain.reload
+    assert_epp_response :completed_successfully
+    assert_includes(@domain.statuses, DomainStatus::CLIENT_HOLD)
+  end
+
+  def test_update_domain_allows_remove_of_client_hold
+    @domain.update!(statuses: [DomainStatus::CLIENT_HOLD])
+
+    request_xml = <<-XML
+      <?xml version="1.0" encoding="UTF-8" standalone="no"?>
+      <epp xmlns="https://epp.tld.ee/schema/epp-ee-1.0.xsd">
+        <command>
+          <update>
+            <domain:update xmlns:domain="https://epp.tld.ee/schema/domain-eis-1.0.xsd">
+              <domain:name>shop.test</domain:name>
+                <domain:rem>
+                  <domain:status s="clientHold" lang="en">Test</domain:status>
+                </domain:rem>
+              </domain:update>
+          </update>
+        </command>
+      </epp>
+    XML
+
+    post epp_update_path, params: { frame: request_xml },
+         headers: { 'HTTP_COOKIE' => 'session=api_bestnames' }
+    @domain.reload
+    assert_epp_response :completed_successfully
+    assert_not_includes(@domain.statuses, DomainStatus::CLIENT_HOLD)
+  end
+
   private
 
   def assert_verification_and_notification_emails