diff --git a/packages/transaction-controller/jest.config.js b/packages/transaction-controller/jest.config.js
index 4a6ed4accc0..b9ce3711df5 100644
--- a/packages/transaction-controller/jest.config.js
+++ b/packages/transaction-controller/jest.config.js
@@ -18,7 +18,7 @@ module.exports = merge(baseConfig, {
   coverageThreshold: {
     global: {
       branches: 91.76,
-      functions: 93.24,
+      functions: 93.09,
       lines: 96.83,
       statements: 96.82,
     },
diff --git a/packages/transaction-controller/package.json b/packages/transaction-controller/package.json
index 63438379f7e..82ec0d96a86 100644
--- a/packages/transaction-controller/package.json
+++ b/packages/transaction-controller/package.json
@@ -64,6 +64,7 @@
     "@metamask/rpc-errors": "^7.0.2",
     "@metamask/utils": "^11.8.1",
     "async-mutex": "^0.5.0",
+    "bignumber.js": "^9.1.2",
     "bn.js": "^5.2.1",
     "eth-method-registry": "^4.0.0",
     "fast-json-patch": "^3.1.1",
diff --git a/packages/transaction-controller/src/TransactionController.test.ts b/packages/transaction-controller/src/TransactionController.test.ts
index e9c865d50e7..3591a166ed3 100644
--- a/packages/transaction-controller/src/TransactionController.test.ts
+++ b/packages/transaction-controller/src/TransactionController.test.ts
@@ -1693,10 +1693,12 @@ describe('TransactionController', () => {
         isFirstTimeInteraction: undefined,
         isGasFeeIncluded: undefined,
         isGasFeeSponsored: undefined,
+        isGasFeeTokenIgnoredIfBalance: false,
         nestedTransactions: undefined,
         networkClientId: NETWORK_CLIENT_ID_MOCK,
         origin: undefined,
         securityAlertResponse: undefined,
+        selectedGasFeeToken: undefined,
         sendFlowHistory: expect.any(Array),
         status: TransactionStatus.unapproved as const,
         time: expect.any(Number),
diff --git a/packages/transaction-controller/src/TransactionController.ts b/packages/transaction-controller/src/TransactionController.ts
index b89a718bafc..a2bbca798c7 100644
--- a/packages/transaction-controller/src/TransactionController.ts
+++ b/packages/transaction-controller/src/TransactionController.ts
@@ -119,6 +119,7 @@ import type {
   GetSimulationConfig,
   AddTransactionOptions,
   PublishHookResult,
+  GetGasFeeTokensRequest,
 } from './types';
 import {
   GasFeeEstimateLevel,
@@ -137,7 +138,10 @@ import {
 import { validateConfirmedExternalTransaction } from './utils/external-transactions';
 import { updateFirstTimeInteraction } from './utils/first-time-interaction';
 import { addGasBuffer, estimateGas, updateGas } from './utils/gas';
-import { getGasFeeTokens } from './utils/gas-fee-tokens';
+import {
+  getGasFeeTokens,
+  processGasFeeTokensNoApproval,
+} from './utils/gas-fee-tokens';
 import { updateGasFees } from './utils/gas-fees';
 import { getGasFeeFlow } from './utils/gas-flow';
 import {
@@ -378,6 +382,11 @@ export type TransactionControllerEmulateTransactionUpdate = {
   handler: TransactionController['emulateTransactionUpdate'];
 };
 
+export type TransactionControllerGetGasFeeTokensAction = {
+  type: `${typeof controllerName}:getGasFeeTokens`;
+  handler: (request: GetGasFeeTokensRequest) => Promise<GasFeeToken[]>;
+};
+
 /**
  * The internal actions available to the TransactionController.
  */
@@ -386,6 +395,7 @@ export type TransactionControllerActions =
   | TransactionControllerAddTransactionBatchAction
   | TransactionControllerConfirmExternalTransactionAction
   | TransactionControllerEstimateGasAction
+  | TransactionControllerGetGasFeeTokensAction
   | TransactionControllerGetNonceLockAction
   | TransactionControllerGetStateAction
   | TransactionControllerGetTransactionsAction
@@ -1215,6 +1225,7 @@ export class TransactionController extends BaseController<
       batchId,
       deviceConfirmedOn,
       disableGasBuffer,
+      gasFeeToken,
       isGasFeeIncluded,
       isGasFeeSponsored,
       method,
@@ -1315,6 +1326,7 @@ export class TransactionController extends BaseController<
           deviceConfirmedOn,
           disableGasBuffer,
           id: random(),
+          isGasFeeTokenIgnoredIfBalance: Boolean(gasFeeToken),
           isGasFeeIncluded,
           isGasFeeSponsored,
           isFirstTimeInteraction: undefined,
@@ -1322,6 +1334,7 @@ export class TransactionController extends BaseController<
           networkClientId,
           origin,
           securityAlertResponse,
+          selectedGasFeeToken: gasFeeToken,
           status: TransactionStatus.unapproved as const,
           time: Date.now(),
           txParams,
@@ -1406,6 +1419,15 @@ export class TransactionController extends BaseController<
           log('Error while updating first interaction properties', error);
         });
       } else {
+        await processGasFeeTokensNoApproval({
+          ethQuery,
+          fetchGasFeeTokens: async (tx) =>
+            (await this.#getGasFeeTokens(tx)).gasFeeTokens,
+          transaction: addedTransactionMeta,
+          updateTransaction: (transactionId, fn) =>
+            this.#updateTransactionInternal({ transactionId }, fn),
+        });
+
         log(
           'Skipping simulation & first interaction update as approval not required',
         );
@@ -4255,14 +4277,8 @@ export class TransactionController extends BaseController<
         };
       }
 
-      const gasFeeTokensResponse = await getGasFeeTokens({
-        chainId,
-        getSimulationConfig: this.#getSimulationConfig,
-        isEIP7702GasFeeTokensEnabled: this.#isEIP7702GasFeeTokensEnabled,
-        messenger: this.messenger,
-        publicKeyEIP7702: this.#publicKeyEIP7702,
-        transactionMeta,
-      });
+      const gasFeeTokensResponse = await this.#getGasFeeTokens(transactionMeta);
+
       gasFeeTokens = gasFeeTokensResponse?.gasFeeTokens ?? [];
       isGasFeeSponsored = gasFeeTokensResponse?.isGasFeeSponsored ?? false;
     }
@@ -4477,6 +4493,11 @@ export class TransactionController extends BaseController<
       `${controllerName}:emulateTransactionUpdate`,
       this.emulateTransactionUpdate.bind(this),
     );
+
+    this.messenger.registerActionHandler(
+      `${controllerName}:getGasFeeTokens`,
+      this.#getGasFeeTokensAction.bind(this),
+    );
   }
 
   #deleteTransaction(transactionId: string) {
@@ -4637,4 +4658,34 @@ export class TransactionController extends BaseController<
 
     return { transactionHash };
   }
+
+  async #getGasFeeTokens(transaction: TransactionMeta) {
+    const { chainId } = transaction;
+
+    return await getGasFeeTokens({
+      chainId,
+      getSimulationConfig: this.#getSimulationConfig,
+      isEIP7702GasFeeTokensEnabled: this.#isEIP7702GasFeeTokensEnabled,
+      messenger: this.messenger,
+      publicKeyEIP7702: this.#publicKeyEIP7702,
+      transactionMeta: transaction,
+    });
+  }
+
+  async #getGasFeeTokensAction(request: GetGasFeeTokensRequest) {
+    const { chainId, data, from, to, value } = request;
+
+    const ethQuery = this.#getEthQuery({ chainId });
+    const delegationAddress = await getDelegationAddress(from, ethQuery);
+
+    const transactionMeta = {
+      chainId,
+      delegationAddress,
+      txParams: { data, from, to, value },
+    } as TransactionMeta;
+
+    const result = await this.#getGasFeeTokens(transactionMeta);
+
+    return result.gasFeeTokens;
+  }
 }
diff --git a/packages/transaction-controller/src/types.ts b/packages/transaction-controller/src/types.ts
index b23a567785f..837dfcf8942 100644
--- a/packages/transaction-controller/src/types.ts
+++ b/packages/transaction-controller/src/types.ts
@@ -268,6 +268,9 @@ export type TransactionMeta = {
   /** Whether MetaMask will be compensated for the gas fee by the transaction. */
   isGasFeeIncluded?: boolean;
 
+  /** Whether the `selectedGasFeeToken` is only used if the user has insufficient native balance. */
+  isGasFeeTokenIgnoredIfBalance?: boolean;
+
   /** Whether the intent of the transaction was achieved via an alternate route or chain. */
   isIntentComplete?: boolean;
 
@@ -1723,6 +1726,9 @@ export type TransactionBatchRequest = {
   /** Address of the account to submit the transaction batch. */
   from: Hex;
 
+  /** Address of an ERC-20 token to pay for the gas fee, if the user has insufficient native balance. */
+  gasFeeToken?: Hex;
+
   /** Whether MetaMask will be compensated for the gas fee by the transaction. */
   isGasFeeIncluded?: boolean;
 
@@ -2061,6 +2067,9 @@ export type AddTransactionOptions = {
   /** Whether to disable the gas estimation buffer. */
   disableGasBuffer?: boolean;
 
+  /** Address of an ERC-20 token to pay for the gas fee, if the user has insufficient native balance. */
+  gasFeeToken?: Hex;
+
   /** Whether MetaMask will be compensated for the gas fee by the transaction. */
   isGasFeeIncluded?: boolean;
 
@@ -2106,3 +2115,11 @@ export type AddTransactionOptions = {
   /** Type of transaction to add, such as 'cancel' or 'swap'. */
   type?: TransactionType;
 };
+
+export type GetGasFeeTokensRequest = {
+  chainId: Hex;
+  data?: Hex;
+  from: Hex;
+  to: Hex;
+  value?: Hex;
+};
diff --git a/packages/transaction-controller/src/utils/balance-changes.test.ts b/packages/transaction-controller/src/utils/balance-changes.test.ts
index 9e92e619209..ed507af2796 100644
--- a/packages/transaction-controller/src/utils/balance-changes.test.ts
+++ b/packages/transaction-controller/src/utils/balance-changes.test.ts
@@ -282,7 +282,7 @@ function mockParseLog({
   }
 }
 
-describe('Simulation Utils', () => {
+describe('Balance Change Utils', () => {
   const simulateTransactionsMock = jest.mocked(simulateTransactions);
   const queryMock = jest.mocked(query);
 
diff --git a/packages/transaction-controller/src/utils/balance-changes.ts b/packages/transaction-controller/src/utils/balance-changes.ts
index c8c01ddc243..a49404535a9 100644
--- a/packages/transaction-controller/src/utils/balance-changes.ts
+++ b/packages/transaction-controller/src/utils/balance-changes.ts
@@ -1,11 +1,12 @@
 import type { Fragment, LogDescription, Result } from '@ethersproject/abi';
 import { Interface } from '@ethersproject/abi';
-import { hexToBN, query, toHex } from '@metamask/controller-utils';
+import { hexToBN, toHex } from '@metamask/controller-utils';
 import type EthQuery from '@metamask/eth-query';
 import { abiERC20, abiERC721, abiERC1155 } from '@metamask/metamask-eth-abis';
 import { createModuleLogger, type Hex } from '@metamask/utils';
 import BN from 'bn.js';
 
+import { getNativeBalance } from './balance';
 import { simulateTransactions } from '../api/simulation-api';
 import type {
   SimulationResponseLog,
@@ -726,11 +727,8 @@ async function baseRequest({
 
   log('Required balance', requiredBalanceHex);
 
-  const currentBalanceHex = (await query(ethQuery, 'getBalance', [
-    from,
-    'latest',
-  ])) as Hex;
-
+  const { balanceRaw } = await getNativeBalance(from, ethQuery);
+  const currentBalanceHex = toHex(balanceRaw);
   const currentBalanceBN = hexToBN(currentBalanceHex);
 
   log('Current balance', currentBalanceHex);
diff --git a/packages/transaction-controller/src/utils/balance.test.ts b/packages/transaction-controller/src/utils/balance.test.ts
new file mode 100644
index 00000000000..320fbe1e52b
--- /dev/null
+++ b/packages/transaction-controller/src/utils/balance.test.ts
@@ -0,0 +1,33 @@
+import { query, toHex } from '@metamask/controller-utils';
+import type EthQuery from '@metamask/eth-query';
+
+import { getNativeBalance } from './balance';
+
+jest.mock('@metamask/controller-utils', () => ({
+  ...jest.requireActual('@metamask/controller-utils'),
+  query: jest.fn(),
+}));
+
+const ETH_QUERY_MOCK = {} as EthQuery;
+const BALANCE_MOCK = '123456789123456789123456789';
+
+describe('Balance Utils', () => {
+  const queryMock = jest.mocked(query);
+
+  beforeEach(() => {
+    jest.resetAllMocks();
+
+    queryMock.mockResolvedValue(toHex(BALANCE_MOCK));
+  });
+
+  describe('getNativeBalance', () => {
+    it('returns native balance', async () => {
+      const result = await getNativeBalance('0x1234', ETH_QUERY_MOCK);
+
+      expect(result).toStrictEqual({
+        balanceRaw: BALANCE_MOCK,
+        balanceHuman: '123456789.123456789123456789',
+      });
+    });
+  });
+});
diff --git a/packages/transaction-controller/src/utils/balance.ts b/packages/transaction-controller/src/utils/balance.ts
new file mode 100644
index 00000000000..50caaefbb04
--- /dev/null
+++ b/packages/transaction-controller/src/utils/balance.ts
@@ -0,0 +1,26 @@
+import { query } from '@metamask/controller-utils';
+import type EthQuery from '@metamask/eth-query';
+import type { Hex } from '@metamask/utils';
+import { BigNumber } from 'bignumber.js';
+
+/**
+ * Get the native balance for an address.
+ *
+ * @param address - Address to get the balance for.
+ * @param ethQuery - EthQuery instance to use.
+ * @returns Balance in both human-readable and raw format.
+ */
+export async function getNativeBalance(address: Hex, ethQuery: EthQuery) {
+  const balanceRawHex = (await query(ethQuery, 'getBalance', [
+    address,
+    'latest',
+  ])) as Hex;
+
+  const balanceRaw = new BigNumber(balanceRawHex).toString(10);
+  const balanceHuman = new BigNumber(balanceRaw).shiftedBy(-18).toString(10);
+
+  return {
+    balanceHuman,
+    balanceRaw,
+  };
+}
diff --git a/packages/transaction-controller/src/utils/batch.ts b/packages/transaction-controller/src/utils/batch.ts
index 3e5ead32db8..b0b3385d3b7 100644
--- a/packages/transaction-controller/src/utils/batch.ts
+++ b/packages/transaction-controller/src/utils/batch.ts
@@ -289,6 +289,7 @@ async function addTransactionBatchWith7702(
   const {
     batchId: batchIdOverride,
     from,
+    gasFeeToken,
     networkClientId,
     origin,
     requireApproval,
@@ -400,6 +401,7 @@ async function addTransactionBatchWith7702(
 
   const { result } = await addTransaction(txParams, {
     batchId,
+    gasFeeToken,
     isGasFeeIncluded: userRequest.isGasFeeIncluded,
     isGasFeeSponsored: userRequest.isGasFeeSponsored,
     nestedTransactions,
diff --git a/packages/transaction-controller/src/utils/gas-fee-tokens.test.ts b/packages/transaction-controller/src/utils/gas-fee-tokens.test.ts
index febdf38b2c4..9f78a03b698 100644
--- a/packages/transaction-controller/src/utils/gas-fee-tokens.test.ts
+++ b/packages/transaction-controller/src/utils/gas-fee-tokens.test.ts
@@ -1,10 +1,17 @@
+import type EthQuery from '@metamask/eth-query';
+import type { Hex } from '@metamask/utils';
 import { cloneDeep } from 'lodash';
 
+import { getNativeBalance } from './balance';
 import { doesChainSupportEIP7702 } from './eip7702';
 import { getEIP7702UpgradeContractAddress } from './feature-flags';
 import type { GetGasFeeTokensRequest } from './gas-fee-tokens';
-import { getGasFeeTokens } from './gas-fee-tokens';
+import {
+  getGasFeeTokens,
+  processGasFeeTokensNoApproval,
+} from './gas-fee-tokens';
 import type {
+  GasFeeToken,
   GetSimulationConfig,
   TransactionControllerMessenger,
   TransactionMeta,
@@ -14,10 +21,14 @@ import { simulateTransactions } from '../api/simulation-api';
 jest.mock('../api/simulation-api');
 jest.mock('./eip7702');
 jest.mock('./feature-flags');
+jest.mock('./balance');
 
+const ETH_QUERY_MOCK = {} as EthQuery;
 const CHAIN_ID_MOCK = '0x1';
 const TOKEN_ADDRESS_1_MOCK = '0x1234567890abcdef1234567890abcdef12345678';
 const TOKEN_ADDRESS_2_MOCK = '0xabcdef1234567890abcdef1234567890abcdef12';
+const GAS_FEE_TOKEN_MOCK = { amount: '0x123' as Hex } as GasFeeToken;
+
 const UPGRADE_CONTRACT_ADDRESS_MOCK =
   '0xabcdefabcdefabcdefabcdefabcdefabcdefabcdef';
 
@@ -37,6 +48,13 @@ const REQUEST_MOCK: GetGasFeeTokensRequest = {
   } as TransactionMeta,
 };
 
+const TRANSACTION_META_MOCK = {
+  selectedGasFeeToken: '0x1234567890abcdef1234567890abcdef12345678' as Hex,
+  txParams: {
+    from: '0x456',
+  },
+} as TransactionMeta;
+
 describe('Gas Fee Tokens Utils', () => {
   const simulateTransactionsMock = jest.mocked(simulateTransactions);
   const doesChainSupportEIP7702Mock = jest.mocked(doesChainSupportEIP7702);
@@ -376,4 +394,77 @@ describe('Gas Fee Tokens Utils', () => {
       );
     });
   });
+
+  describe('processGasFeeTokensNoApproval', () => {
+    const fetchGasFeeTokensMock = jest.fn();
+    const updateTransactionMock = jest.fn();
+    const getNativeBalanceMock = jest.mocked(getNativeBalance);
+
+    let request: Parameters<typeof processGasFeeTokensNoApproval>[0];
+
+    beforeEach(() => {
+      fetchGasFeeTokensMock.mockResolvedValue([GAS_FEE_TOKEN_MOCK]);
+
+      getNativeBalanceMock.mockResolvedValue({
+        balanceRaw: '1000',
+        balanceHuman: '0',
+      });
+
+      request = {
+        ethQuery: ETH_QUERY_MOCK,
+        fetchGasFeeTokens: fetchGasFeeTokensMock,
+        transaction: cloneDeep(TRANSACTION_META_MOCK),
+        updateTransaction: updateTransactionMock,
+      };
+    });
+
+    it('updates gas fee tokens if selected gas fee token', async () => {
+      await processGasFeeTokensNoApproval(request);
+
+      const txDraft = {};
+      updateTransactionMock.mock.calls[0][1](txDraft);
+
+      expect(txDraft).toStrictEqual({
+        gasFeeTokens: [GAS_FEE_TOKEN_MOCK],
+      });
+    });
+
+    it('does nothing if no selected gas fee token', async () => {
+      request.transaction.selectedGasFeeToken = undefined;
+
+      await processGasFeeTokensNoApproval(request);
+
+      expect(updateTransactionMock).not.toHaveBeenCalled();
+    });
+
+    it('removes selected gas fee token if sufficient balance and isGasFeeTokenIgnoredIfBalance is true', async () => {
+      request.transaction.isGasFeeTokenIgnoredIfBalance = true;
+      request.transaction.txParams.gas = '0x2';
+      request.transaction.txParams.gasPrice = '0x1f4';
+
+      await processGasFeeTokensNoApproval(request);
+
+      const txDraft = {};
+      updateTransactionMock.mock.calls[0][1](txDraft);
+
+      expect(txDraft).toStrictEqual({
+        selectedGasFeeToken: undefined,
+      });
+    });
+
+    it('updates gas fee tokens if insufficient balance and isGasFeeTokenIgnoredIfBalance is true', async () => {
+      request.transaction.isGasFeeTokenIgnoredIfBalance = true;
+      request.transaction.txParams.gas = '0x1';
+      request.transaction.txParams.maxFeePerGas = '0x3e9';
+
+      await processGasFeeTokensNoApproval(request);
+
+      const txDraft = {};
+      updateTransactionMock.mock.calls[0][1](txDraft);
+
+      expect(txDraft).toStrictEqual({
+        gasFeeTokens: [GAS_FEE_TOKEN_MOCK],
+      });
+    });
+  });
 });
diff --git a/packages/transaction-controller/src/utils/gas-fee-tokens.ts b/packages/transaction-controller/src/utils/gas-fee-tokens.ts
index b317bec336e..99cf82bdc45 100644
--- a/packages/transaction-controller/src/utils/gas-fee-tokens.ts
+++ b/packages/transaction-controller/src/utils/gas-fee-tokens.ts
@@ -1,7 +1,10 @@
+import type EthQuery from '@metamask/eth-query';
 import { rpcErrors } from '@metamask/rpc-errors';
 import type { Hex } from '@metamask/utils';
 import { createModuleLogger } from '@metamask/utils';
+import { BigNumber } from 'bignumber.js';
 
+import { getNativeBalance } from './balance';
 import { ERROR_MESSAGE_NO_UPGRADE_CONTRACT } from './batch';
 import { ERROR_MESSGE_PUBLIC_KEY, doesChainSupportEIP7702 } from './eip7702';
 import { getEIP7702UpgradeContractAddress } from './feature-flags';
@@ -115,6 +118,81 @@ export async function getGasFeeTokens({
   }
 }
 
+/**
+ * Process gas fee tokens for a transaction without approval.
+ *
+ * @param request - Request object.
+ * @param request.ethQuery - EthQuery instance.
+ * @param request.fetchGasFeeTokens - Function to fetch gas fee tokens.
+ * @param request.transaction - Transaction metadata.
+ * @param request.updateTransaction - Function to update the transaction.
+ */
+export async function processGasFeeTokensNoApproval({
+  ethQuery,
+  fetchGasFeeTokens,
+  transaction,
+  updateTransaction,
+}: {
+  ethQuery: EthQuery;
+  fetchGasFeeTokens: (transaction: TransactionMeta) => Promise<GasFeeToken[]>;
+  transaction: TransactionMeta;
+  updateTransaction: (
+    transactionId: string,
+    fn: (tx: TransactionMeta) => void,
+  ) => void;
+}) {
+  const {
+    id: transactionId,
+    isGasFeeTokenIgnoredIfBalance,
+    selectedGasFeeToken,
+    txParams: { from },
+  } = transaction;
+
+  if (!selectedGasFeeToken) {
+    return;
+  }
+
+  if (isGasFeeTokenIgnoredIfBalance) {
+    const gasCostRawValue = new BigNumber(
+      transaction.txParams.gas ?? '0x0',
+    ).multipliedBy(
+      transaction.txParams.maxFeePerGas ??
+        transaction.txParams.gasPrice ??
+        '0x0',
+    );
+
+    const gasCostRaw = gasCostRawValue.toString(10);
+
+    const { balanceRaw } = await getNativeBalance(from as Hex, ethQuery);
+
+    if (gasCostRawValue.isLessThanOrEqualTo(balanceRaw)) {
+      log('Ignoring gas fee token as sufficient native balance', {
+        balanceRaw,
+        gasCostRaw,
+      });
+
+      updateTransaction(transactionId, (tx) => {
+        tx.selectedGasFeeToken = undefined;
+      });
+
+      return;
+    }
+
+    log('Using gas fee token as insufficient native balance', {
+      balanceRaw,
+      gasCostRaw,
+    });
+  }
+
+  const gasFeeTokens = await fetchGasFeeTokens(transaction);
+
+  log('Fetched gas fee tokens for transaction without approval', gasFeeTokens);
+
+  updateTransaction(transactionId, (tx) => {
+    tx.gasFeeTokens = gasFeeTokens;
+  });
+}
+
 /**
  * Extract gas fee tokens from a simulation response.
  *
diff --git a/yarn.lock b/yarn.lock
index 31a31d7499e..926d0ac6d57 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -5071,6 +5071,7 @@ __metadata:
     "@types/jest": "npm:^27.4.1"
     "@types/node": "npm:^16.18.54"
     async-mutex: "npm:^0.5.0"
+    bignumber.js: "npm:^9.1.2"
     bn.js: "npm:^5.2.1"
     deepmerge: "npm:^4.2.2"
     eth-method-registry: "npm:^4.0.0"