diff --git a/ui/components/multichain-accounts/add-wallet-modal/add-wallet-modal.test.tsx b/ui/components/multichain-accounts/add-wallet-modal/add-wallet-modal.test.tsx
index 6917513efed0..ed0092ffa719 100644
--- a/ui/components/multichain-accounts/add-wallet-modal/add-wallet-modal.test.tsx
+++ b/ui/components/multichain-accounts/add-wallet-modal/add-wallet-modal.test.tsx
@@ -1,6 +1,7 @@
 import React from 'react';
 import { screen, fireEvent } from '@testing-library/react';
-import { renderWithProvider } from '../../../../test/jest';
+import { useSelector } from 'react-redux';
+import { renderWithProvider } from '../../../../test/lib/render-helpers';
 import {
   ADD_WALLET_PAGE_ROUTE,
   CONNECT_HARDWARE_ROUTE,
@@ -10,6 +11,7 @@ import { AddWalletModal } from './add-wallet-modal';
 
 const mockHistoryPush = jest.fn();
 const mockOpenExtensionInBrowser = jest.fn();
+const mockUseSelector = useSelector as jest.MockedFunction<typeof useSelector>;
 
 jest.mock('react-router-dom', () => ({
   ...jest.requireActual('react-router-dom'),
@@ -18,6 +20,15 @@ jest.mock('react-router-dom', () => ({
   }),
 }));
 
+jest.mock('react-redux', () => ({
+  ...jest.requireActual('react-redux'),
+  useSelector: jest.fn(),
+}));
+
+jest.mock('../../../hooks/useI18nContext', () => ({
+  useI18nContext: () => (key: string) => key,
+}));
+
 jest.mock('../../../../app/scripts/lib/util', () => ({
   ...jest.requireActual('../../../../app/scripts/lib/util'),
   getEnvironmentType: () => 'popup',
@@ -31,6 +42,9 @@ describe('AddWalletModal', () => {
     mockHistoryPush.mockClear();
     mockOpenExtensionInBrowser.mockClear();
 
+    // Mock useSelector to return false for manageInstitutionalWallets by default
+    mockUseSelector.mockReturnValue(false);
+
     // @ts-expect-error mocking platform
     global.platform = {
       openExtensionInBrowser: mockOpenExtensionInBrowser,
@@ -40,21 +54,21 @@ describe('AddWalletModal', () => {
   it('renders the modal when isOpen is true', () => {
     renderWithProvider(<AddWalletModal isOpen={true} onClose={mockOnClose} />);
 
-    expect(screen.getByText('Add wallet')).toBeInTheDocument();
+    expect(screen.getByText('addWallet')).toBeInTheDocument();
   });
 
   it('renders all wallet options', () => {
     renderWithProvider(<AddWalletModal isOpen={true} onClose={mockOnClose} />);
 
-    expect(screen.getByText('Import a wallet')).toBeInTheDocument();
-    expect(screen.getByText('Import an account')).toBeInTheDocument();
-    expect(screen.getByText('Add a hardware wallet')).toBeInTheDocument();
+    expect(screen.getByText('importAWallet')).toBeInTheDocument();
+    expect(screen.getByText('importAnAccount')).toBeInTheDocument();
+    expect(screen.getByText('addAHardwareWallet')).toBeInTheDocument();
   });
 
   it('calls onClose and navigates when import wallet option is clicked', () => {
     renderWithProvider(<AddWalletModal isOpen={true} onClose={mockOnClose} />);
 
-    fireEvent.click(screen.getByText('Import a wallet'));
+    fireEvent.click(screen.getByText('importAWallet'));
 
     expect(mockOnClose).toHaveBeenCalledTimes(1);
     expect(mockHistoryPush).toHaveBeenCalledWith(IMPORT_SRP_ROUTE);
@@ -63,7 +77,7 @@ describe('AddWalletModal', () => {
   it('calls onClose and navigates when import account option is clicked', () => {
     renderWithProvider(<AddWalletModal isOpen={true} onClose={mockOnClose} />);
 
-    fireEvent.click(screen.getByText('Import an account'));
+    fireEvent.click(screen.getByText('importAnAccount'));
 
     expect(mockOnClose).toHaveBeenCalledTimes(1);
     expect(mockHistoryPush).toHaveBeenCalledWith(ADD_WALLET_PAGE_ROUTE);
@@ -72,7 +86,7 @@ describe('AddWalletModal', () => {
   it('calls onClose and opens hardware wallet route in expanded view', () => {
     renderWithProvider(<AddWalletModal isOpen={true} onClose={mockOnClose} />);
 
-    fireEvent.click(screen.getByText('Add a hardware wallet'));
+    fireEvent.click(screen.getByText('addAHardwareWallet'));
 
     expect(mockOnClose).toHaveBeenCalledTimes(1);
     expect(mockOpenExtensionInBrowser).toHaveBeenCalledWith(
@@ -84,6 +98,26 @@ describe('AddWalletModal', () => {
   it('does not render when isOpen is false', () => {
     renderWithProvider(<AddWalletModal isOpen={false} onClose={mockOnClose} />);
 
-    expect(screen.queryByText('Add wallet')).not.toBeInTheDocument();
+    expect(screen.queryByText('addWallet')).not.toBeInTheDocument();
+  });
+
+  it('does not render the institutional wallet option if institutional wallets are disabled', () => {
+    // Mock useSelector to return false for manageInstitutionalWallets
+    mockUseSelector.mockReturnValue(false);
+
+    renderWithProvider(<AddWalletModal isOpen={true} onClose={mockOnClose} />);
+
+    expect(
+      screen.queryByText('manageInstitutionalWallets'),
+    ).not.toBeInTheDocument();
+  });
+
+  it('renders the institutional wallet option if institutional wallets are enabled', () => {
+    // Mock useSelector to return true for manageInstitutionalWallets
+    mockUseSelector.mockReturnValue(true);
+
+    renderWithProvider(<AddWalletModal isOpen={true} onClose={mockOnClose} />);
+
+    expect(screen.getByText('manageInstitutionalWallets')).toBeInTheDocument();
   });
 });
diff --git a/ui/components/multichain-accounts/add-wallet-modal/add-wallet-modal.tsx b/ui/components/multichain-accounts/add-wallet-modal/add-wallet-modal.tsx
index 5ff848752430..27efb6e2144b 100644
--- a/ui/components/multichain-accounts/add-wallet-modal/add-wallet-modal.tsx
+++ b/ui/components/multichain-accounts/add-wallet-modal/add-wallet-modal.tsx
@@ -16,6 +16,7 @@ import {
   BoxBorderColor,
 } from '@metamask/design-system-react';
 
+import { useSelector } from 'react-redux';
 import {
   Modal,
   ModalOverlay,
@@ -35,6 +36,8 @@ import { ENVIRONMENT_TYPE_POPUP } from '../../../../shared/constants/app';
 // TODO: Remove restricted import
 // eslint-disable-next-line import/no-restricted-paths
 import { getEnvironmentType } from '../../../../app/scripts/lib/util';
+import { getManageInstitutionalWallets } from '../../../selectors';
+import { INSTITUTIONAL_WALLET_SNAP_ID } from '../../../../shared/lib/accounts';
 
 export type AddWalletModalProps = Omit<
   ModalProps,
@@ -58,6 +61,9 @@ export const AddWalletModal: React.FC<AddWalletModalProps> = ({
 }) => {
   const t = useI18nContext();
   const history = useHistory();
+  const institutionalWalletsEnabled = useSelector(
+    getManageInstitutionalWallets,
+  );
 
   const walletOptions: WalletOption[] = [
     {
@@ -78,6 +84,18 @@ export const AddWalletModal: React.FC<AddWalletModalProps> = ({
       iconName: IconName.Hardware,
       route: CONNECT_HARDWARE_ROUTE,
     },
+    ...(institutionalWalletsEnabled
+      ? [
+          {
+            id: 'institutional-wallet',
+            titleKey: 'manageInstitutionalWallets',
+            iconName: IconName.Add,
+            route: `/snaps/view/${encodeURIComponent(
+              INSTITUTIONAL_WALLET_SNAP_ID,
+            )}`,
+          },
+        ]
+      : []),
   ];
 
   const handleOptionClick = (option: WalletOption) => {