diff --git a/specs/electra/beacon-chain.md b/specs/electra/beacon-chain.md
index 0c5649190..0d6fc0b4e 100644
--- a/specs/electra/beacon-chain.md
+++ b/specs/electra/beacon-chain.md
@@ -778,23 +778,25 @@ def process_epoch(state: BeaconState) -> None:
 
 #### Modified `process_registry_updates`
 
-*Note*: The function `process_registry_updates` is modified to use the updated definition of `initiate_validator_exit`
+*Note*: The function `process_registry_updates` is modified to
+use the updated definitions of `initiate_validator_exit` and `is_eligible_for_activation_queue`
 and changes how the activation epochs are computed for eligible validators.
 
 ```python
 def process_registry_updates(state: BeaconState) -> None:
     # Process activation eligibility and ejections
     for index, validator in enumerate(state.validators):
-        if is_eligible_for_activation_queue(validator):
+        if is_eligible_for_activation_queue(validator):  # [Modified in Electra:EIP7251]
             validator.activation_eligibility_epoch = get_current_epoch(state) + 1
 
         if (
             is_active_validator(validator, get_current_epoch(state))
             and validator.effective_balance <= EJECTION_BALANCE
         ):
-            initiate_validator_exit(state, ValidatorIndex(index))
+            initiate_validator_exit(state, ValidatorIndex(index))  # [Modified in Electra:EIP7251]
 
     # Activate all eligible validators
+    # [Modified in Electra:EIP7251]
     activation_epoch = compute_activation_exit_epoch(get_current_epoch(state))
     for validator in state.validators:
         if is_eligible_for_activation(state, validator):
diff --git a/tests/core/pyspec/eth2spec/test/deneb/epoch_processing/test_process_registry_updates.py b/tests/core/pyspec/eth2spec/test/deneb/epoch_processing/test_process_registry_updates.py
index 9d5a2e5d9..0914bc1fb 100644
--- a/tests/core/pyspec/eth2spec/test/deneb/epoch_processing/test_process_registry_updates.py
+++ b/tests/core/pyspec/eth2spec/test/deneb/epoch_processing/test_process_registry_updates.py
@@ -23,6 +23,8 @@ def run_test_activation_churn_limit(spec, state):
 
     validator_count_0 = len(state.validators)
 
+    balance = spec.MIN_ACTIVATION_BALANCE if is_post_electra(spec) else spec.MAX_EFFECTIVE_BALANCE
+
     for i in range(mock_activations):
         index = validator_count_0 + i
         validator = spec.Validator(
@@ -32,10 +34,10 @@ def run_test_activation_churn_limit(spec, state):
             activation_epoch=spec.FAR_FUTURE_EPOCH,
             exit_epoch=spec.FAR_FUTURE_EPOCH,
             withdrawable_epoch=spec.FAR_FUTURE_EPOCH,
-            effective_balance=spec.MAX_EFFECTIVE_BALANCE,
+            effective_balance=balance,
         )
         state.validators.append(validator)
-        state.balances.append(spec.MAX_EFFECTIVE_BALANCE)
+        state.balances.append(balance)
         state.previous_epoch_participation.append(spec.ParticipationFlags(0b0000_0000))
         state.current_epoch_participation.append(spec.ParticipationFlags(0b0000_0000))
         state.inactivity_scores.append(0)
diff --git a/tests/core/pyspec/eth2spec/test/electra/epoch_processing/test_process_registry_updates.py b/tests/core/pyspec/eth2spec/test/electra/epoch_processing/test_process_registry_updates.py
new file mode 100644
index 000000000..ce5915269
--- /dev/null
+++ b/tests/core/pyspec/eth2spec/test/electra/epoch_processing/test_process_registry_updates.py
@@ -0,0 +1,92 @@
+from eth2spec.test.helpers.deposits import mock_deposit
+from eth2spec.test.helpers.state import next_epoch
+from eth2spec.test.context import spec_state_test, with_electra_and_later
+from eth2spec.test.helpers.epoch_processing import run_epoch_processing_with
+from eth2spec.test.helpers.withdrawals import (
+    set_eth1_withdrawal_credential_with_balance,
+    set_compounding_withdrawal_credential_with_balance
+)
+
+
+def run_test_activation_queue_eligibility(spec, state, validator_index, balance):
+    # move past first two irregular epochs wrt finality
+    next_epoch(spec, state)
+    next_epoch(spec, state)
+
+    state.balances[validator_index] = balance
+    state.validators[validator_index].effective_balance = balance
+
+    # ready for entrance into activation queue
+    mock_deposit(spec, state, validator_index)
+    
+    yield from run_epoch_processing_with(spec, state, 'process_registry_updates')
+
+    # validator moved into activation queue if eligible
+    validator = state.validators[validator_index]
+    if validator.effective_balance < spec.MIN_ACTIVATION_BALANCE:
+        assert validator.activation_eligibility_epoch == spec.FAR_FUTURE_EPOCH
+    else:
+        assert validator.activation_eligibility_epoch < spec.FAR_FUTURE_EPOCH
+
+
+@with_electra_and_later
+@spec_state_test
+def test_activation_queue_eligibility__less_than_min_activation_balance(spec, state):
+    # move past first two irregular epochs wrt finality
+    next_epoch(spec, state)
+    next_epoch(spec, state)
+
+    index = 3
+    balance = spec.MIN_ACTIVATION_BALANCE - spec.EFFECTIVE_BALANCE_INCREMENT
+    yield from run_test_activation_queue_eligibility(spec, state, index, balance)
+
+
+@with_electra_and_later
+@spec_state_test
+def test_activation_queue_eligibility__min_activation_balance(spec, state):
+    # move past first two irregular epochs wrt finality
+    next_epoch(spec, state)
+    next_epoch(spec, state)
+
+    index = 5
+    balance = spec.MIN_ACTIVATION_BALANCE
+    yield from run_test_activation_queue_eligibility(spec, state, index, balance)
+
+
+@with_electra_and_later
+@spec_state_test
+def test_activation_queue_eligibility__min_activation_balance_eth1_creds(spec, state):
+    # move past first two irregular epochs wrt finality
+    next_epoch(spec, state)
+    next_epoch(spec, state)
+
+    index = 7
+    balance = spec.MIN_ACTIVATION_BALANCE
+    set_eth1_withdrawal_credential_with_balance(spec, state, index)
+    yield from run_test_activation_queue_eligibility(spec, state, index, balance)
+
+
+@with_electra_and_later
+@spec_state_test
+def test_activation_queue_eligibility__min_activation_balance_compounding_creds(spec, state):
+    # move past first two irregular epochs wrt finality
+    next_epoch(spec, state)
+    next_epoch(spec, state)
+
+    index = 11
+    balance = spec.MIN_ACTIVATION_BALANCE
+    set_compounding_withdrawal_credential_with_balance(spec, state, index)
+    yield from run_test_activation_queue_eligibility(spec, state, index, balance)
+
+
+@with_electra_and_later
+@spec_state_test
+def test_activation_queue_eligibility__greater_than_min_activation_balance(spec, state):
+    # move past first two irregular epochs wrt finality
+    next_epoch(spec, state)
+    next_epoch(spec, state)
+
+    index = 13
+    balance = spec.MIN_ACTIVATION_BALANCE + spec.EFFECTIVE_BALANCE_INCREMENT
+    set_compounding_withdrawal_credential_with_balance(spec, state, index)
+    yield from run_test_activation_queue_eligibility(spec, state, index, balance)