diff --git a/sway-lib-std/src/identity.sw b/sway-lib-std/src/identity.sw
index 61dff156aed..1fde1654b67 100644
--- a/sway-lib-std/src/identity.sw
+++ b/sway-lib-std/src/identity.sw
@@ -8,3 +8,13 @@ pub enum Identity {
     Address: Address,
     ContractId: ContractId,
 }
+
+impl core::ops::Eq for Identity {
+    fn eq(self, other: Self) -> bool {
+        match (self, other) {
+            (Identity::Address(address1), Identity::Address(address2)) => { address1 == address2 },
+            (Identity::ContractId(asset1), Identity::ContractId(asset2)) => { asset1 == asset2 },
+            _ => { false },
+        }
+    }
+}
diff --git a/test/src/e2e_vm_tests/mod.rs b/test/src/e2e_vm_tests/mod.rs
index b03499a779c..b528ad411cb 100644
--- a/test/src/e2e_vm_tests/mod.rs
+++ b/test/src/e2e_vm_tests/mod.rs
@@ -161,6 +161,7 @@ pub fn run(locked: bool, filter_regex: Option<regex::Regex>) {
             ProgramState::Return(1),
         ), // true
         ("should_pass/stdlib/ge_test", ProgramState::Return(1)), // true
+        ("should_pass/stdlib/identity_eq", ProgramState::Return(1)), // true
         ("should_pass/stdlib/intrinsics", ProgramState::Return(1)), // true
         ("should_pass/stdlib/option", ProgramState::Return(1)),  // true
         ("should_pass/stdlib/require", ProgramState::Return(1)), // true
diff --git a/test/src/e2e_vm_tests/test_programs/should_pass/stdlib/identity_eq/.gitignore b/test/src/e2e_vm_tests/test_programs/should_pass/stdlib/identity_eq/.gitignore
new file mode 100644
index 00000000000..77d3844f58c
--- /dev/null
+++ b/test/src/e2e_vm_tests/test_programs/should_pass/stdlib/identity_eq/.gitignore
@@ -0,0 +1,2 @@
+out
+target
diff --git a/test/src/e2e_vm_tests/test_programs/should_pass/stdlib/identity_eq/Forc.lock b/test/src/e2e_vm_tests/test_programs/should_pass/stdlib/identity_eq/Forc.lock
new file mode 100644
index 00000000000..0ff6c098ef4
--- /dev/null
+++ b/test/src/e2e_vm_tests/test_programs/should_pass/stdlib/identity_eq/Forc.lock
@@ -0,0 +1,14 @@
+[[package]]
+name = 'core'
+source = 'path+from-root-E7BBED1900347958'
+dependencies = []
+
+[[package]]
+name = 'identity_eq'
+source = 'root'
+dependencies = ['std']
+
+[[package]]
+name = 'std'
+source = 'path+from-root-E7BBED1900347958'
+dependencies = ['core']
diff --git a/test/src/e2e_vm_tests/test_programs/should_pass/stdlib/identity_eq/Forc.toml b/test/src/e2e_vm_tests/test_programs/should_pass/stdlib/identity_eq/Forc.toml
new file mode 100644
index 00000000000..31487ea07e2
--- /dev/null
+++ b/test/src/e2e_vm_tests/test_programs/should_pass/stdlib/identity_eq/Forc.toml
@@ -0,0 +1,8 @@
+[project]
+authors = ["Fuel Labs <contact@fuel.sh>"]
+entry = "main.sw"
+license = "Apache-2.0"
+name = "identity_eq"
+
+[dependencies]
+std = { path = "../../../../../../../sway-lib-std" }
diff --git a/test/src/e2e_vm_tests/test_programs/should_pass/stdlib/identity_eq/json_abi_oracle.json b/test/src/e2e_vm_tests/test_programs/should_pass/stdlib/identity_eq/json_abi_oracle.json
new file mode 100644
index 00000000000..f0586b752c7
--- /dev/null
+++ b/test/src/e2e_vm_tests/test_programs/should_pass/stdlib/identity_eq/json_abi_oracle.json
@@ -0,0 +1,14 @@
+[
+  {
+    "inputs": [],
+    "name": "main",
+    "outputs": [
+      {
+        "components": null,
+        "name": "",
+        "type": "bool"
+      }
+    ],
+    "type": "function"
+  }
+]
\ No newline at end of file
diff --git a/test/src/e2e_vm_tests/test_programs/should_pass/stdlib/identity_eq/src/main.sw b/test/src/e2e_vm_tests/test_programs/should_pass/stdlib/identity_eq/src/main.sw
new file mode 100644
index 00000000000..3fa7807463a
--- /dev/null
+++ b/test/src/e2e_vm_tests/test_programs/should_pass/stdlib/identity_eq/src/main.sw
@@ -0,0 +1,43 @@
+script;
+
+use std::{address::Address, assert::assert, contract_id::ContractId, identity::*};
+
+fn main() -> bool {
+    let b1 = 0x0000000000000000000000000000000000000000000000000000000000000001;
+    let b2 = 0x0000000000000000000000000000000000000000000000000000000000000002;
+
+    let address1 = Identity::Address(~Address::from(b1));
+    let address2 = Identity::Address(~Address::from(b2));
+    let contract1 = Identity::ContractId(~ContractId::from(b1));
+    let contract2 = Identity::ContractId(~ContractId::from(b2));
+
+    // Eq is True
+    assert(address1 == address1);
+    assert(contract1 == contract1);
+
+    // Eq is False
+    assert(!(address1 == address2));
+    assert(!(address2 == address1));
+
+    assert(!(contract1 == contract2));
+    assert(!(contract2 == contract1));
+
+    assert(!(address1 == contract1));
+    assert(!(contract1 == address1));
+
+    // Neq is True
+    assert(address1 != address2);
+    assert(address2 != address1);
+
+    assert(contract1 != contract2);
+    assert(contract2 != contract1);
+
+    assert(address1 != contract1);
+    assert(contract1 != address1);
+
+    // Neq is False
+    assert(!(address1 != address1));
+    assert(!(contract1 != contract1));
+
+    true
+}