diff --git a/packages/controller-utils/src/util.test.ts b/packages/controller-utils/src/util.test.ts
index 8c2e1594bd5..ae8c002b39d 100644
--- a/packages/controller-utils/src/util.test.ts
+++ b/packages/controller-utils/src/util.test.ts
@@ -600,7 +600,7 @@ describe('util', () => {
       expect(invalid).toBeNull();
       invalid = util.normalizeEnsName('@metamask.eth');
       expect(invalid).toBeNull();
-      invalid = util.normalizeEnsName('foobar.eth');
+      invalid = util.normalizeEnsName('fo.eth');
       expect(invalid).toBeNull();
     });
 
@@ -617,9 +617,9 @@ describe('util', () => {
       expect(invalid).toBeNull();
     });
 
-    it('should return null with invalid 2LD and valid 3LD', async () => {
-      const invalid = util.normalizeEnsName('foo.barbaz.eth');
-      expect(invalid).toBeNull();
+    it('should normalize with valid 3LD', async () => {
+      const valid = util.normalizeEnsName('foo.barbaz.eth');
+      expect(valid).toBe('foo.barbaz.eth');
     });
 
     it('should return null with invalid TLD', async () => {
diff --git a/packages/controller-utils/src/util.ts b/packages/controller-utils/src/util.ts
index 193c37c62c8..d8ce910c3d0 100644
--- a/packages/controller-utils/src/util.ts
+++ b/packages/controller-utils/src/util.ts
@@ -541,8 +541,7 @@ export function normalizeEnsName(ensName: string): string | null {
     try {
       const normalized = ensNamehash.normalize(ensName.trim());
       // this regex is only sufficient with the above call to ensNamehash.normalize
-      // TODO: change 7 in regex to 3 when shorter ENS domains are live
-      if (normalized.match(/^(([\w\d-]+)\.)*[\w\d-]{7,}\.(eth|test)$/u)) {
+      if (normalized.match(/^(([\w\d-]+)\.)*[\w\d-]{3,}\.(eth|test)$/u)) {
         return normalized;
       }
     } catch {
diff --git a/packages/ens-controller/src/EnsController.test.ts b/packages/ens-controller/src/EnsController.test.ts
index 05e523a44e5..e113c914061 100644
--- a/packages/ens-controller/src/EnsController.test.ts
+++ b/packages/ens-controller/src/EnsController.test.ts
@@ -403,11 +403,26 @@ describe('EnsController', () => {
       messenger: ensControllerMessenger,
     });
     expect(() => {
-      controller.set('0x1', 'foo.eth', address1);
-    }).toThrow('Invalid ENS name: foo.eth');
+      controller.set('0x1', 'fo.eth', address1);
+    }).toThrow('Invalid ENS name: fo.eth');
     expect(controller.state).toStrictEqual(defaultState);
   });
 
+  it('should allow 3 character ENS names', () => {
+    const rootMessenger = getRootMessenger();
+    const ensControllerMessenger = getEnsControllerMessenger(rootMessenger);
+    const controller = new EnsController({
+      messenger: ensControllerMessenger,
+    });
+
+    expect(controller.set('0x1', 'foo.eth', address1)).toBe(true);
+    expect(controller.state.ensEntries['0x1']['foo.eth']).toStrictEqual({
+      address: address1Checksum,
+      chainId: '0x1',
+      ensName: 'foo.eth',
+    });
+  });
+
   it('should throw on attempt to set invalid ENS entry: address', () => {
     const rootMessenger = getRootMessenger();
     const ensControllerMessenger = getEnsControllerMessenger(rootMessenger);