diff --git a/test/e2e/constants/syncing.py b/test/e2e/constants/syncing.py
index 40fa5cf6a0..c7bb1e8b98 100644
--- a/test/e2e/constants/syncing.py
+++ b/test/e2e/constants/syncing.py
@@ -5,3 +5,5 @@ class SyncingSettings(Enum):
     SYNC_A_NEW_DEVICE_INSTRUCTIONS_HEADER = 'Sync a New Device'
     SYNC_A_NEW_DEVICE_INSTRUCTIONS_SUBTITLE = 'You own your data. Sync it among your devices.'
     SYNC_CODE_IS_WRONG_TEXT = 'This does not look like a sync code'
+    SYNC_SETUP_ERROR_PRIMARY = 'Failed to generate sync code'
+    SYNC_SETUP_ERROR_SECONDARY = 'Failed to start pairing server'
diff --git a/test/e2e/gui/components/community/authenticate_popup.py b/test/e2e/gui/components/community/authenticate_popup.py
index 7a59920e9b..8137f2d237 100644
--- a/test/e2e/gui/components/community/authenticate_popup.py
+++ b/test/e2e/gui/components/community/authenticate_popup.py
@@ -14,6 +14,7 @@ class AuthenticatePopup(BasePopup):
         self._content = QObject('keycardSharedPopupContent_KeycardPopupContent')
         self._passwort_text_edit = TextEdit('password_PlaceholderText')
         self._authenticate_button = Button('authenticate_StatusButton')
+        self._close_button = Button('headerCloseButton_StatusFlatRoundButton')
 
     @allure.step('Wait until appears {0}')
     def wait_until_appears(self, timeout_msec: int = configs.timeouts.UI_LOAD_TIMEOUT_MSEC):
@@ -25,3 +26,7 @@ class AuthenticatePopup(BasePopup):
         self._passwort_text_edit.type_text(password)
         self._authenticate_button.click()
         self._authenticate_button.wait_until_hidden()
+
+    @allure.step('Close authenticate popup by close button')
+    def close_authenticate_popup(self):
+        self._close_button.click()
diff --git a/test/e2e/gui/components/settings/sync_new_device_popup.py b/test/e2e/gui/components/settings/sync_new_device_popup.py
index 4c338a2ac3..768a6e2f7c 100644
--- a/test/e2e/gui/components/settings/sync_new_device_popup.py
+++ b/test/e2e/gui/components/settings/sync_new_device_popup.py
@@ -3,6 +3,7 @@ import pyperclip
 
 from gui.components.base_popup import BasePopup
 from gui.elements.button import Button
+from gui.elements.object import QObject
 from gui.elements.text_edit import TextEdit
 
 
@@ -13,6 +14,18 @@ class SyncNewDevicePopup(BasePopup):
         self._copy_button = Button('copy_SyncCodeStatusButton')
         self._done_button = Button('done_SyncCodeStatusButton')
         self._sync_code_field = TextEdit('syncCodeInput_StatusPasswordInput')
+        self._close_button = Button('close_StatusButton')
+        self._error_message = QObject('errorView_SyncingErrorMessage')
+
+    @property
+    @allure.step('Get primary error message')
+    def primary_error_message(self) -> str:
+        return str(self._error_message.object.primaryText)
+
+    @property
+    @allure.step('Get secondary error message')
+    def secondary_error_message(self) -> str:
+        return str(self._error_message.object.secondaryText)
 
     @property
     @allure.step('Get syncing code')
@@ -24,3 +37,8 @@ class SyncNewDevicePopup(BasePopup):
     def done(self):
         self._done_button.click()
         self.wait_until_hidden()
+
+    @allure.step('Click close')
+    def close(self):
+        self._close_button.click()
+        self.wait_until_hidden()
diff --git a/test/e2e/gui/objects_map/component_names.py b/test/e2e/gui/objects_map/component_names.py
index bf24344be0..ecf8c7e939 100644
--- a/test/e2e/gui/objects_map/component_names.py
+++ b/test/e2e/gui/objects_map/component_names.py
@@ -193,6 +193,7 @@ delete_StatusButton = {"checkable": False, "container": statusDesktop_mainWindow
 keycardSharedPopupContent_KeycardPopupContent = {"container": statusDesktop_mainWindow_overlay, "objectName": "KeycardSharedPopupContent", "type": "KeycardPopupContent", "visible": True}
 password_PlaceholderText = {"container": statusDesktop_mainWindow_overlay, "type": "PlaceholderText", "unnamed": 1, "visible": True}
 authenticate_StatusButton = {"container": statusDesktop_mainWindow_overlay, "objectName": "PrimaryButton", "text": "Authenticate", "type": "StatusButton", "visible": True}
+headerCloseButton_StatusFlatRoundButton = {"container": statusDesktop_mainWindow_overlay, "objectName": "headerCloseButton", "type": "StatusFlatRoundButton", "visible": True}
 
 # Shared Popup
 sharedPopup_Popup_Content = {"container": statusDesktop_mainWindow, "objectName": "KeycardSharedPopupContent", "type": "Item"}
@@ -311,6 +312,8 @@ mainWindow_secureYourSeedPhraseBanner_Button = {"container": statusDesktop_mainW
 copy_SyncCodeStatusButton = {"container": statusDesktop_mainWindow_overlay, "objectName": "syncCodeCopyButton", "type": "StatusButton", "visible": True}
 done_SyncCodeStatusButton = {"container": statusDesktop_mainWindow_overlay, "objectName": "syncAnewDeviceNextButton", "type": "StatusButton", "visible": True}
 syncCodeInput_StatusPasswordInput = {"container": statusDesktop_mainWindow_overlay, "id": "syncCodeInput", "type": "StatusPasswordInput", "unnamed": 1, "visible": True}
+close_StatusButton = {"checkable": False, "container": statusDesktop_mainWindow_overlay, "objectName": "syncAnewDeviceNextButton", "type": "StatusButton", "visible": True}
+errorView_SyncingErrorMessage = {"container": statusDesktop_mainWindow_overlay, "id": "errorView", "type": "SyncingErrorMessage", "unnamed": 1, "visible": True}
 
 # Edit group name and image popup
 groupChatEdit_name_TextEdit = {"container": statusDesktop_mainWindow_overlay, "objectName": "groupChatEdit_name", "type": "TextEdit", "visible": True}
diff --git a/test/e2e/gui/screens/settings_syncing.py b/test/e2e/gui/screens/settings_syncing.py
index 0281d87384..5e3a614cb3 100644
--- a/test/e2e/gui/screens/settings_syncing.py
+++ b/test/e2e/gui/screens/settings_syncing.py
@@ -33,6 +33,11 @@ class SyncingSettingsView(QObject):
 
     @allure.step('Setup syncing')
     def set_up_syncing(self, password: str):
-        self._setup_syncing_button.click()
+        self.click_setup_syncing()
         AuthenticatePopup().wait_until_appears().authenticate(password)
         return SyncNewDevicePopup().wait_until_appears()
+
+    @allure.step('Click setup syncing')
+    def click_setup_syncing(self):
+        self._setup_syncing_button.click()
+        return AuthenticatePopup().wait_until_appears()
diff --git a/test/e2e/tests/onboarding/test_onboarding_syncing.py b/test/e2e/tests/onboarding/test_onboarding_syncing.py
index 51ca655d2a..e0752b2743 100644
--- a/test/e2e/tests/onboarding/test_onboarding_syncing.py
+++ b/test/e2e/tests/onboarding/test_onboarding_syncing.py
@@ -10,8 +10,10 @@ import constants
 import driver
 from constants import UserAccount
 from constants.syncing import SyncingSettings
+from gui.components.community.authenticate_popup import AuthenticatePopup
 from gui.components.onboarding.before_started_popup import BeforeStartedPopUp
 from gui.components.onboarding.beta_consent_popup import BetaConsentPopup
+from gui.components.settings.sync_new_device_popup import SyncNewDevicePopup
 from gui.components.splash_screen import SplashScreen
 from gui.main_window import MainWindow
 from gui.screens.onboarding import AllowNotificationsView, WelcomeToStatusView, SyncResultView, \
@@ -106,3 +108,21 @@ def test_wrong_sync_code(sync_screen, wrong_sync_code):
         pyperclip.copy(wrong_sync_code)
         sync_view.paste_sync_code()
         assert SyncingSettings.SYNC_CODE_IS_WRONG_TEXT.value == sync_view.sync_code_error_message, f'Wrong sync code message did not appear'
+
+
+@allure.testcase('https://ethstatus.testrail.net/index.php?/cases/view/703591', 'Generate sync code. Negative')
+@pytest.mark.case(703591)
+def test_cancel_setup_syncing(main_screen: MainWindow):
+    with step('Open syncing settings'):
+        sync_settings_view = main_screen.left_panel.open_settings().left_panel.open_syncing_settings()
+        sync_settings_view.is_instructions_header_present()
+        sync_settings_view.is_instructions_subtitle_present()
+        if configs.DEV_BUILD:
+            sync_settings_view.is_backup_button_present()
+    with step('Click setup syncing and close authenticate popup'):
+        main_screen.left_panel.open_settings().left_panel.open_syncing_settings().click_setup_syncing().close_authenticate_popup()
+        sync_new_device_popup = SyncNewDevicePopup().wait_until_appears()
+
+    with step('Verify error messages appear'):
+        assert sync_new_device_popup.primary_error_message == SyncingSettings.SYNC_SETUP_ERROR_PRIMARY.value
+        assert sync_new_device_popup.secondary_error_message == SyncingSettings.SYNC_SETUP_ERROR_SECONDARY.value