diff --git a/package-lock.json b/package-lock.json
index 24ab0a9d2..7eef65ff9 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -17,7 +17,7 @@
         "protobufjs": "^7.4.0"
       },
       "devDependencies": {
-        "@hashgraph/hedera-local": "^2.33.0",
+        "@hashgraph/hedera-local": "^2.34.0",
         "@hashgraph/sdk": "^2.56.0",
         "@nomicfoundation/hardhat-chai-matchers": "^2.0.8",
         "@nomicfoundation/hardhat-foundry": "^1.1.3",
@@ -1411,10 +1411,11 @@
       }
     },
     "node_modules/@hashgraph/hedera-local": {
-      "version": "2.33.0",
-      "resolved": "https://registry.npmjs.org/@hashgraph/hedera-local/-/hedera-local-2.33.0.tgz",
-      "integrity": "sha512-zrsHkEVK7tbQC1wKeEo8VhsIKcKnjLgoVV15DzvZy1V4h0QeaOuaDF177y3EP76/4s0wJG0FPk48X80TrkNvyw==",
+      "version": "2.34.0",
+      "resolved": "https://registry.npmjs.org/@hashgraph/hedera-local/-/hedera-local-2.34.0.tgz",
+      "integrity": "sha512-agqGJeZ/IoM3BAXftgUwkxqjdiUUnvwl3YCQXun8VenuDdLE0OHZJ6vO089YtMQbkRX1S3K6v9xTgeZ/nSdP8w==",
       "dev": true,
+      "license": "Apache-2.0",
       "dependencies": {
         "@hashgraph/sdk": "^2.49.2",
         "csv-parser": "^3.0.0",
@@ -8512,9 +8513,9 @@
       }
     },
     "@hashgraph/hedera-local": {
-      "version": "2.33.0",
-      "resolved": "https://registry.npmjs.org/@hashgraph/hedera-local/-/hedera-local-2.33.0.tgz",
-      "integrity": "sha512-zrsHkEVK7tbQC1wKeEo8VhsIKcKnjLgoVV15DzvZy1V4h0QeaOuaDF177y3EP76/4s0wJG0FPk48X80TrkNvyw==",
+      "version": "2.34.0",
+      "resolved": "https://registry.npmjs.org/@hashgraph/hedera-local/-/hedera-local-2.34.0.tgz",
+      "integrity": "sha512-agqGJeZ/IoM3BAXftgUwkxqjdiUUnvwl3YCQXun8VenuDdLE0OHZJ6vO089YtMQbkRX1S3K6v9xTgeZ/nSdP8w==",
       "dev": true,
       "requires": {
         "@hashgraph/sdk": "^2.49.2",
diff --git a/package.json b/package.json
index 9ee07f935..e34660285 100644
--- a/package.json
+++ b/package.json
@@ -33,7 +33,7 @@
     "freeze-network-node": "hardhat run scripts/freeze-network-node.js"
   },
   "devDependencies": {
-    "@hashgraph/hedera-local": "^2.33.0",
+    "@hashgraph/hedera-local": "^2.34.0",
     "@hashgraph/sdk": "^2.56.0",
     "@nomicfoundation/hardhat-chai-matchers": "^2.0.8",
     "@nomicfoundation/hardhat-foundry": "^1.1.3",
diff --git a/test/system-contracts/hedera-token-service/hrc-904/AirdropContract.js b/test/system-contracts/hedera-token-service/hrc-904/AirdropContract.js
index d9e2bdf10..5feaeec30 100644
--- a/test/system-contracts/hedera-token-service/hrc-904/AirdropContract.js
+++ b/test/system-contracts/hedera-token-service/hrc-904/AirdropContract.js
@@ -202,9 +202,7 @@ describe('HIP904 AirdropContract Test Suite', function () {
     expect(nftOwner).to.equal(receiver);
   });
 
-  // TODO: Test skipped due to missing error code support in services implementation
-  // See: https://github.com/hashgraph/hedera-services/issues/17409
-  it.skip('should airdrop non-fungible tokens (NFT) to multiple accounts', async function () {
+  it('should airdrop non-fungible tokens (NFT) to multiple accounts', async function () {
     const nftTokenAddress = await utils.setupNft(
       tokenCreateContract,
       owner,
diff --git a/test/system-contracts/hedera-token-service/hrc-904/CancelAirdropContract.js b/test/system-contracts/hedera-token-service/hrc-904/CancelAirdropContract.js
index 000b7f648..029844669 100644
--- a/test/system-contracts/hedera-token-service/hrc-904/CancelAirdropContract.js
+++ b/test/system-contracts/hedera-token-service/hrc-904/CancelAirdropContract.js
@@ -239,7 +239,7 @@ describe('HIP904 CancelAirdropContract Test Suite', function () {
       Constants.GAS_LIMIT_2_000_000
     );
     const responseCode = await utils.getHTSResponseCode(tx.hash);
-    expect(responseCode).to.eq('15'); // INVALID_ACCOUNT_ID code
+    expect(responseCode).to.eq('367'); // INVALID_PENDING_AIRDROP_ID code
   });
 
   it('should fail when receiver account is invalid', async function () {