diff --git a/src/test/unit/AllocationManagerUnit.t.sol b/src/test/unit/AllocationManagerUnit.t.sol
index 473a02a3c..9fb74a17c 100644
--- a/src/test/unit/AllocationManagerUnit.t.sol
+++ b/src/test/unit/AllocationManagerUnit.t.sol
@@ -1569,7 +1569,7 @@ contract AllocationManagerUnitTests_ModifyAllocations is AllocationManagerUnitTe
      * Allocates to `firstMod` magnitude and then deallocate to `secondMod` magnitude
      * Validates the storage
      * - 1. After deallocation is alled
-     * - 2. After the deallocationd elay is hit
+     * - 2. After the deallocationd delay is hit
      * - 3. After the modification queue is cleared
      */
     function testFuzz_allocate_deallocate(uint256 r) public {
@@ -1875,6 +1875,119 @@ contract AllocationManagerUnitTests_ClearModificationQueue is AllocationManagerU
         assertEq(0, mInfos[0].pendingDiff, "pendingMagnitude should be 0");
         assertEq(0, mInfos[0].effectTimestamp, "effectTimestamp should be 0");
     }
+
+    /**
+     * Allocates, deallocates, and then allocates again. Asserts that
+     * - The deallocation does not block state updates from the second allocation, even though the allocation has an earlier
+     *   effect timestamp, but is on the queue before
+     */
+    function test_allocate_deallocate_allocate() public {
+        uint32 allocationDelay = 15 days;
+        // Set allocation delay to be 15 days
+        cheats.prank(defaultOperator);
+        allocationManager.setAllocationDelay(allocationDelay);
+        cheats.warp(block.timestamp + ALLOCATION_CONFIGURATION_DELAY);
+        (,uint32 storedDelay) = allocationManager.getAllocationDelay(defaultOperator);
+        assertEq(allocationDelay, storedDelay, "allocation delay not valid");
+
+        // Allocate half of mag to opset1
+        IAllocationManagerTypes.MagnitudeAllocation[] memory firstAllocation =
+            _generateMagnitudeAllocationCalldataForOpSet(defaultAVS, 1, 5e17, 1e18);
+        cheats.prank(defaultOperator);
+        allocationManager.modifyAllocations(firstAllocation);
+        cheats.warp(block.timestamp + 15 days);
+
+        // Deallocate half from opset1.
+        uint32 t = uint32(block.timestamp);
+        uint32 deallocationEffectTimestamp = uint32(block.timestamp + DEALLOCATION_DELAY);
+        IAllocationManagerTypes.MagnitudeAllocation[] memory firstDeallocation =
+            _generateMagnitudeAllocationCalldataForOpSet(defaultAVS, 1, 25e16, 1e18);
+        cheats.prank(defaultOperator);
+        allocationManager.modifyAllocations(firstDeallocation);
+        MagnitudeInfo[] memory mInfos = allocationManager.getAllocationInfo(defaultOperator, strategyMock, firstDeallocation[0].operatorSets);
+        assertEq(deallocationEffectTimestamp, mInfos[0].effectTimestamp, "effect timestamp not correct");
+        
+        // Allocate 33e16 mag to opset2
+        uint32 allocationEffectTimestamp = uint32(block.timestamp + allocationDelay);
+        IAllocationManagerTypes.MagnitudeAllocation[] memory secondAllocation =
+            _generateMagnitudeAllocationCalldataForOpSet(defaultAVS, 2, 33e16, 1e18);
+        cheats.prank(defaultOperator);
+        allocationManager.modifyAllocations(secondAllocation);
+        mInfos = allocationManager.getAllocationInfo(defaultOperator, strategyMock, secondAllocation[0].operatorSets);
+        console.log("deallocation effect timestamp: ", deallocationEffectTimestamp);
+        console.log("allocation effect timestamp: ", allocationEffectTimestamp);
+        assertEq(allocationEffectTimestamp, mInfos[0].effectTimestamp, "effect timestamp not correct");
+        assertLt(allocationEffectTimestamp, deallocationEffectTimestamp, "invalid test setup");
+
+        // Warp to allocation effect timestamp & clear the queue
+        cheats.warp(allocationEffectTimestamp);
+        allocationManager.clearModificationQueue(defaultOperator, _strategyMockArray(), _maxNumToClear());
+
+        // Validate `getAllocatableMagnitude`. Allocatable magnitude should be the difference between the total magnitude and the encumbered magnitude
+        uint64 allocatableMagnitude = allocationManager.getAllocatableMagnitude(defaultOperator, strategyMock);
+        assertEq(WAD - 33e16 - 5e17, allocatableMagnitude, "allocatableMagnitude not correct");
+
+        // Validate that we can allocate again for opset2. This should not revert
+        IAllocationManagerTypes.MagnitudeAllocation[] memory thirdAllocation =
+            _generateMagnitudeAllocationCalldataForOpSet(defaultAVS, 2, 10e16, 1e18);
+        cheats.prank(defaultOperator);
+        allocationManager.modifyAllocations(thirdAllocation);
+    }
+
+    /**
+     * Allocates to opset1, allocates to opset2, deallocates from opset1. Asserts that the allocation, which has a higher
+     * effect timestamp is not blocking the deallocation.
+     * The queue looks like (note that the first allocation has been completed):
+     * 1. (allocation, opSet2, mag: 5e17, effectTimestamp: 50th day)
+     * 2. (deallocation, opSet1, mag: 0, effectTimestamp: 42.5 day)
+     */
+    function test_regression_allocationBlocksDeallocation() public {
+        uint32 allocationDelay = 25 days;
+        // Set allocation delay to be 25 days, greater than the deallocation timestamp
+        cheats.prank(defaultOperator);
+        allocationManager.setAllocationDelay(allocationDelay);
+        cheats.warp(block.timestamp + ALLOCATION_CONFIGURATION_DELAY);
+        (,uint32 storedDelay) = allocationManager.getAllocationDelay(defaultOperator);
+        assertEq(allocationDelay, storedDelay, "allocation delay not valid");
+
+        // Allocate half of mag to opset1
+        IAllocationManagerTypes.MagnitudeAllocation[] memory firstAllocation =
+            _generateMagnitudeAllocationCalldataForOpSet(defaultAVS, 1, 5e17, 1e18);
+        cheats.prank(defaultOperator);
+        allocationManager.modifyAllocations(firstAllocation);
+        cheats.warp(block.timestamp + 25 days);
+
+        // Allocate half of mag to opset2
+        IAllocationManagerTypes.MagnitudeAllocation[] memory secondAllocation =
+            _generateMagnitudeAllocationCalldataForOpSet(defaultAVS, 2, 5e17, 1e18);
+        cheats.prank(defaultOperator);
+        allocationManager.modifyAllocations(secondAllocation);
+
+        uint32 allocationEffectTimestamp = uint32(block.timestamp + allocationDelay);
+        MagnitudeInfo[] memory mInfos = allocationManager.getAllocationInfo(defaultOperator, strategyMock, secondAllocation[0].operatorSets);
+        assertEq(allocationEffectTimestamp, mInfos[0].effectTimestamp, "effect timestamp not correct");
+
+        // Deallocate all from opSet1
+        uint32 deallocationEffectTimestamp = uint32(block.timestamp + DEALLOCATION_DELAY);
+        IAllocationManagerTypes.MagnitudeAllocation[] memory firstDeallocation =
+            _generateMagnitudeAllocationCalldataForOpSet(defaultAVS, 1, 0, 1e18);
+        cheats.prank(defaultOperator);
+        allocationManager.modifyAllocations(firstDeallocation);
+        mInfos = allocationManager.getAllocationInfo(defaultOperator, strategyMock, firstDeallocation[0].operatorSets);
+        assertEq(deallocationEffectTimestamp, mInfos[0].effectTimestamp, "effect timestamp not correct");
+        assertLt(deallocationEffectTimestamp, allocationEffectTimestamp, "invalid test setup");
+
+        // Warp to deallocation effect timestamp & clear the queue
+        cheats.warp(deallocationEffectTimestamp);
+        allocationManager.clearModificationQueue(defaultOperator, _strategyMockArray(), _maxNumToClear());
+
+        // At this point, we should be able to allocate again to opSet1 AND have only 5e17 encumbered magnitude
+        assertEq(5e17, allocationManager.encumberedMagnitude(defaultOperator, strategyMock), "encumbered magnitude not correct");
+        IAllocationManagerTypes.MagnitudeAllocation[] memory thirdAllocation =
+            _generateMagnitudeAllocationCalldataForOpSet(defaultAVS, 1, 5e17, 1e18);
+        cheats.prank(defaultOperator);
+        allocationManager.modifyAllocations(thirdAllocation);
+    }
 }
 
 contract AllocationManagerUnitTests_SetAllocationDelay is AllocationManagerUnitTests {