diff --git a/packages/localnet/src/handleOnZEVMWithdrawn.ts b/packages/localnet/src/handleOnZEVMWithdrawn.ts
index 2c61072..3dd8412 100644
--- a/packages/localnet/src/handleOnZEVMWithdrawn.ts
+++ b/packages/localnet/src/handleOnZEVMWithdrawn.ts
@@ -29,12 +29,36 @@ export const handleOnZEVMWithdrawn = async ({
     const amount = args[4];
     const message = args[7];
     (tss as NonceManager).reset();
+    const zrc20Contract = new ethers.Contract(zrc20, ZRC20.abi, deployer);
+    const coinType = await zrc20Contract.COIN_TYPE();
+    const isGasToken = coinType === 1n;
+    const isERC20orZETA = coinType === 2n;
+    const getERC20ByZRC20 = (zrc20: string) => {
+      const foreignCoin = foreignCoins.find(
+        (coin: any) => coin.zrc20_contract_address === zrc20
+      );
+      if (!foreignCoin) {
+        logErr("EVM", `Foreign coin not found for ZRC20 address: ${zrc20}`);
+        return;
+      }
+      return foreignCoin.asset;
+    };
     if (message !== "0x") {
+      // The message is not empty, so this is a withhdrawAndCall operation
       log("EVM", `Calling ${receiver} with message ${message}`);
-      const executeTx = await protocolContracts.gatewayEVM
-        .connect(tss)
-        .execute(receiver, message, deployOpts);
-      await executeTx.wait();
+      if (isGasToken) {
+        const executeTx = await protocolContracts.gatewayEVM
+          .connect(tss)
+          .execute(receiver, message, deployOpts);
+        await executeTx.wait();
+      } else {
+        const erc20 = getERC20ByZRC20(zrc20);
+
+        const executeTx = await protocolContracts.gatewayEVM
+          .connect(tss)
+          .executeWithERC20(erc20, receiver, message, deployOpts);
+        await executeTx.wait();
+      }
       const logs = await provider.getLogs({
         address: receiver,
         fromBlock: "latest",
@@ -42,39 +66,32 @@ export const handleOnZEVMWithdrawn = async ({
       logs.forEach((data) => {
         log("EVM", `Event from contract: ${JSON.stringify(data)}`);
       });
-    }
-    const zrc20Contract = new ethers.Contract(zrc20, ZRC20.abi, deployer);
-    const coinType = await zrc20Contract.COIN_TYPE();
-    if (coinType === 1n) {
-      const tx = await tss.sendTransaction({
-        to: receiver,
-        value: amount,
-        ...deployOpts,
-      });
-      await tx.wait();
-      log(
-        "EVM",
-        `Transferred ${ethers.formatEther(
-          amount
-        )} native gas tokens from TSS to ${receiver}`
-      );
-    } else if (coinType === 2n) {
-      const foreignCoin = foreignCoins.find(
-        (coin: any) => coin.zrc20_contract_address === zrc20
-      );
-      if (!foreignCoin) {
-        logErr("EVM", `Foreign coin not found for ZRC20 address: ${zrc20}`);
-        return;
+    } else {
+      // The message is empty, so this is a withdraw operation
+      if (isGasToken) {
+        const tx = await tss.sendTransaction({
+          to: receiver,
+          value: amount,
+          ...deployOpts,
+        });
+        await tx.wait();
+        log(
+          "EVM",
+          `Transferred ${ethers.formatEther(
+            amount
+          )} native gas tokens from TSS to ${receiver}`
+        );
+      } else if (isERC20orZETA) {
+        const erc20 = getERC20ByZRC20(zrc20);
+        const tx = await protocolContracts.custody
+          .connect(tss)
+          .withdraw(receiver, erc20, amount, deployOpts);
+        await tx.wait();
+        log(
+          "EVM",
+          `Transferred ${amount} ERC-20 tokens from Custody to ${receiver}`
+        );
       }
-      const erc20 = foreignCoin.asset;
-      const tx = await protocolContracts.custody
-        .connect(tss)
-        .withdraw(receiver, erc20, amount, deployOpts);
-      await tx.wait();
-      log(
-        "EVM",
-        `Transferred ${amount} ERC-20 tokens from Custody to ${receiver}`
-      );
     }
   } catch (err) {
     const revertOptions = args[9];