diff --git a/CHANGELOG.md b/CHANGELOG.md
index 42b6b46b1..47c9ae46b 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -34,6 +34,7 @@ Release built: _not released yet_
   - `/state/entity/page/non-fungibles/` (when using `explicit_metadata` opt-in) 
   - `/state/entity/page/fungibles/` (when using `explicit_metadata` opt-in)
 - Added missing `total_count` property to `/state/validators/list` response.
+- Fix `/transaction/account-deposit-pre-validation` for virtual, non persisted accounts. It no longer returns error with code 404 `Entity not found`. 
 
 ### API Changes
 - Restored previously removed `total_count` property to `/state/key-value-store/keys` endpoint.
diff --git a/src/RadixDlt.NetworkGateway.PostgresIntegration/Services/AccountDepositSettings/DepositPreValidationQuerier.cs b/src/RadixDlt.NetworkGateway.PostgresIntegration/Services/AccountDepositSettings/DepositPreValidationQuerier.cs
index 92edb72b2..c29e9c8b4 100644
--- a/src/RadixDlt.NetworkGateway.PostgresIntegration/Services/AccountDepositSettings/DepositPreValidationQuerier.cs
+++ b/src/RadixDlt.NetworkGateway.PostgresIntegration/Services/AccountDepositSettings/DepositPreValidationQuerier.cs
@@ -110,8 +110,25 @@ public DepositPreValidationQuerier(
         CancellationToken token = default
     )
     {
-        var accountEntity = await _entityQuerier.GetNonVirtualEntity<GlobalAccountEntity>(_dbContext, accountAddress, ledgerState, token);
         var xrdResourceAddress = (await _networkConfigurationProvider.GetNetworkConfiguration(token)).WellKnownAddresses.Xrd;
+        var accountEntity = await _entityQuerier.GetEntity<GlobalAccountEntity>(accountAddress, ledgerState, token);
+        if (accountEntity is VirtualAccountComponentEntity)
+        {
+            var resourceItems = resourceAddresses
+                .Select(
+                    resourceAddress => new GatewayModel.AccountDepositPreValidationDecidingFactorsResourceSpecificDetailsItem(
+                        resourceAddress,
+                        false,
+                        resourceAddress == xrdResourceAddress))
+                .ToList();
+
+            return new GatewayModel.AccountDepositPreValidationDecidingFactors(
+                badgeResourceAddress.HasValue ? false : null,
+                AccountDefaultDepositRule.Accept.ToGatewayModel(),
+                resourceItems
+            );
+        }
+
         var addressesToResolve = resourceAddresses.ToList();
         if (badgeResourceAddress.HasValue)
         {