diff --git a/src/test/app/Sponsor_test.cpp b/src/test/app/Sponsor_test.cpp
index 1ffcf23e8a..74d6e772a1 100644
--- a/src/test/app/Sponsor_test.cpp
+++ b/src/test/app/Sponsor_test.cpp
@@ -2299,16 +2299,16 @@ public:
         BEAST_EXPECT(sponsoredOwnerCount(env, alice) == 1);
         BEAST_EXPECT(sponsoringOwnerCount(env, sponsor) == 1);
 
-        // // transfer sponsor
-        // env(sponsor::transfer(alice, keylet::signers(alice).key),
-        //     sponsor::as(sponsor2, tfSponsorReserve),
-        //     sponsor::sig(sponsor2));
-        // env.close();
+        // transfer sponsor
+        env(sponsor::transfer(alice, keylet::signers(alice).key),
+            sponsor::as(sponsor2, tfSponsorReserve),
+            sponsor::sig(sponsor2));
+        env.close();
 
-        // BEAST_EXPECT(ownerCount(env, alice) == 1);
-        // BEAST_EXPECT(sponsoredOwnerCount(env, alice) == 1);
-        // BEAST_EXPECT(sponsoringOwnerCount(env, sponsor) == 0);
-        // BEAST_EXPECT(sponsoringOwnerCount(env, sponsor2) == 1);
+        BEAST_EXPECT(ownerCount(env, alice) == 1);
+        BEAST_EXPECT(sponsoredOwnerCount(env, alice) == 1);
+        BEAST_EXPECT(sponsoringOwnerCount(env, sponsor) == 0);
+        BEAST_EXPECT(sponsoringOwnerCount(env, sponsor2) == 1);
 
         // Delete
         env(signers(alice, none));
@@ -2329,8 +2329,9 @@ public:
         Account const alice("alice");
         Account const bob("bob");
         Account const sponsor("sponsor");
+        Account const sponsor2("sponsor2");
 
-        env.fund(XRP(1000000), alice, bob, sponsor);
+        env.fund(XRP(1000000), alice, bob, sponsor, sponsor2);
         env.close();
 
         auto const& highAcc = alice > bob ? alice : bob;
@@ -2352,11 +2353,33 @@ public:
             BEAST_EXPECT(sponsoredOwnerCount(env, user) == 1);
             BEAST_EXPECT(sponsoringOwnerCount(env, sponsor) == 1);
 
+            auto const line = env.le(keylet::line(user, issuer, USD.currency));
             BEAST_EXPECT(
-                env.le(keylet::line(user, issuer, USD.currency))
-                    ->getAccountID(
-                        isIssuerHigh ? sfLowSponsorAccount
-                                     : sfHighSponsorAccount) == sponsor.id());
+                line->getAccountID(
+                    isIssuerHigh ? sfLowSponsorAccount
+                                 : sfHighSponsorAccount) == sponsor.id());
+            BEAST_EXPECT(!line->isFieldPresent(
+                isIssuerHigh ? sfHighSponsorAccount : sfLowSponsorAccount));
+
+            // transfer sponsor
+            env(sponsor::transfer(
+                    user, keylet::line(user, issuer, USD.currency).key),
+                sponsor::as(sponsor2, tfSponsorReserve),
+                sponsor::sig(sponsor2));
+            env.close();
+
+            BEAST_EXPECT(ownerCount(env, user) == 1);
+            BEAST_EXPECT(sponsoredOwnerCount(env, user) == 1);
+            BEAST_EXPECT(sponsoringOwnerCount(env, sponsor) == 0);
+            BEAST_EXPECT(sponsoringOwnerCount(env, sponsor2) == 1);
+
+            auto const line2 = env.le(keylet::line(user, issuer, USD.currency));
+            BEAST_EXPECT(
+                line2->getAccountID(
+                    isIssuerHigh ? sfLowSponsorAccount
+                                 : sfHighSponsorAccount) == sponsor2.id());
+            BEAST_EXPECT(!line2->isFieldPresent(
+                isIssuerHigh ? sfHighSponsorAccount : sfLowSponsorAccount));
 
             // delete TrustLine
             env(trust(user, USD(0)));
@@ -2368,7 +2391,6 @@ public:
 
             BEAST_EXPECT(!env.le(keylet::line(user, issuer, USD.currency)));
         }
-        // TODO: transfer sponsor
     }
 
     void
@@ -2598,6 +2620,7 @@ public:
     void
     testSponsorReserve()
     {
+        // TODO: add checks fo InsufficientReserve for Sponsoring ledger entry
         testRequireFlag();
         testCheck();
         testOffer();
diff --git a/src/xrpld/app/tx/detail/SponsorshipTransfer.cpp b/src/xrpld/app/tx/detail/SponsorshipTransfer.cpp
index c9ce928572..84442ae362 100644
--- a/src/xrpld/app/tx/detail/SponsorshipTransfer.cpp
+++ b/src/xrpld/app/tx/detail/SponsorshipTransfer.cpp
@@ -95,7 +95,23 @@ getLedgerEntryOwner(
             uint256 const& key = sle->key();
             return AccountID::fromVoid(key.data());
         }
-            // case ltRIPPLE_STATE:
+        case ltRIPPLE_STATE: {
+            if (sle->isFlag(lsfHighReserve))
+            {
+                auto const highAccount =
+                    sle->getFieldAmount(sfHighLimit).getIssuer();
+                if (highAccount == account)
+                    return highAccount;
+            }
+            if (sle->isFlag(lsfLowReserve))
+            {
+                auto const lowAccount =
+                    sle->getFieldAmount(sfLowLimit).getIssuer();
+                if (lowAccount == account)
+                    return lowAccount;
+            }
+            return std::nullopt;
+        }
         case ltACCOUNT_ROOT: {
             // AccountRoot is not supported for object sponsorship
             return std::nullopt;
@@ -126,6 +142,37 @@ getLedgerEntryOwnerCount(T const& sle)
     }
 };
 
+template <typename T>
+inline SF_ACCOUNT const&
+getLedgerEntrySponsorField(T const& sle, AccountID const& owner)
+{
+    switch (sle->getType())
+    {
+        case ltRIPPLE_STATE: {
+            if (sle->isFlag(lsfHighReserve))
+            {
+                auto const highAccount =
+                    sle->getFieldAmount(sfHighLimit).getIssuer();
+                if (highAccount == owner)
+                    return sfHighSponsorAccount;
+            }
+            if (sle->isFlag(lsfLowReserve))
+            {
+                auto const lowAccount =
+                    sle->getFieldAmount(sfLowLimit).getIssuer();
+                if (lowAccount == owner)
+                    return sfLowSponsorAccount;
+            }
+            XRPL_ASSERT(
+                false,
+                "Should not happen. Owner should be checked before calling "
+                "this function.");
+        }
+        default:
+            return sfSponsorAccount;
+    }
+};
+
 TER
 SponsorshipTransfer::preclaim(PreclaimContext const& ctx)
 {
@@ -151,11 +198,14 @@ SponsorshipTransfer::preclaim(PreclaimContext const& ctx)
         if (!owner || owner != ctx.tx[sfAccount])
             return tecNO_PERMISSION;
 
+        auto const& sponsorField = getLedgerEntrySponsorField(sle, *owner);
+
         if (newSponsor)
         {
-            if (sle->isFieldPresent(sfSponsorAccount))
+            if (sle->isFieldPresent(sponsorField))
             {
                 // transfer sponsor
+                // check if the object owner isn't the same as the new sponsor
                 if ((*newSponsor)->getAccountID(sfAccount) == owner)
                     return tecNO_PERMISSION;
             }
@@ -164,7 +214,7 @@ SponsorshipTransfer::preclaim(PreclaimContext const& ctx)
         {
             // dissolve sponsor
             // check object is sponsored
-            if (!sle->isFieldPresent(sfSponsorAccount))
+            if (!sle->isFieldPresent(sponsorField))
                 return tecNO_PERMISSION;
         }
 
@@ -242,10 +292,12 @@ SponsorshipTransfer::doApply()
 
         auto const ownerCountDelta = getLedgerEntryOwnerCount(objSle);
 
+        auto const& sponsorField = getLedgerEntrySponsorField(objSle, *owner);
+
         if (tx.isFieldPresent(sfSponsor))
         {
             auto const sponsorObj = tx.getFieldObject(sfSponsor);
-            auto const oldSponsor = objSle->getAccountID(sfSponsorAccount);
+            auto const oldSponsor = objSle->getAccountID(sponsorField);
             auto const newSponsor = sponsorObj[sfAccount];
             // decrement old sponsoring count if exists
             if (auto const oldSponsorSle =
@@ -279,7 +331,7 @@ SponsorshipTransfer::doApply()
                     ownerCountDelta);
             view().update(newSponsorSle);
 
-            objSle->setAccountID(sfSponsorAccount, newSponsor);
+            objSle->setAccountID(sponsorField, newSponsor);
             view().update(objSle);
         }
         else