diff --git a/libs/assets/src/lib/constants.ts b/libs/assets/src/lib/constants.ts
index 503e4e460..825df45e1 100644
--- a/libs/assets/src/lib/constants.ts
+++ b/libs/assets/src/lib/constants.ts
@@ -62,3 +62,10 @@ export const DENY_LIST: Record<string, string[]> = {
     'fdf0ec118d98393a7702cf72e46fc87ad680b152f64b2aac59e093ac2d688fbb',
   ],
 };
+
+// We need a record of USDT on mainnet as it needs special handling for
+// deposits and approvals due to the contract not conforming exactly
+// to ERC20
+export const USDT_ID = {
+  MAINNET: 'bf1e88d19db4b3ca0d1d5bdb73718a01686b18cf731ca26adedf3c8b83802bba',
+} as const;
diff --git a/libs/deposits/src/lib/approve-notification.tsx b/libs/deposits/src/lib/approve-notification.tsx
index 9f03c3812..8d4a9499b 100644
--- a/libs/deposits/src/lib/approve-notification.tsx
+++ b/libs/deposits/src/lib/approve-notification.tsx
@@ -1,5 +1,9 @@
-import type { Asset } from '@vegaprotocol/assets';
-import { EtherscanLink } from '@vegaprotocol/environment';
+import { USDT_ID, type Asset } from '@vegaprotocol/assets';
+import {
+  EtherscanLink,
+  Networks,
+  useEnvironment,
+} from '@vegaprotocol/environment';
 import { Intent, Notification } from '@vegaprotocol/ui-toolkit';
 import {
   formatNumber,
@@ -15,7 +19,7 @@ import { useT } from './use-t';
 interface ApproveNotificationProps {
   isActive: boolean;
   selectedAsset?: Asset;
-  onApprove: () => void;
+  onApprove: (amount?: string) => void;
   approved: boolean;
   balances: DepositBalances | null;
   amount: string;
@@ -33,6 +37,7 @@ export const ApproveNotification = ({
   approveTxId,
   intent = Intent.Warning,
 }: ApproveNotificationProps) => {
+  const { VEGA_ENV } = useEnvironment();
   const t = useT();
   const tx = useEthTransactionStore((state) => {
     return state.transactions.find((t) => t?.id === approveTxId);
@@ -64,28 +69,45 @@ export const ApproveNotification = ({
           text: t('Approve {{assetSymbol}}', {
             assetSymbol: selectedAsset?.symbol,
           }),
-          action: onApprove,
+          action: () => onApprove(),
           dataTestId: 'approve-submit',
         }}
       />
     </div>
   );
+
+  let message = t('Approve again to deposit more than {{allowance}}', {
+    allowance: formatNumber(balances.allowance.toString()),
+  });
+  const buttonProps = {
+    size: 'small' as const,
+    text: t('Approve {{assetSymbol}}', {
+      assetSymbol: selectedAsset?.symbol,
+    }),
+    action: () => onApprove(),
+    dataTestId: 'reapprove-submit',
+  };
+
+  if (VEGA_ENV === Networks.MAINNET && selectedAsset.id === USDT_ID[VEGA_ENV]) {
+    message = t(
+      'USDT approved amount cannot be changed, only revoked. Revoke and reapprove to deposit more than {{allowance}}.',
+      {
+        allowance: formatNumber(balances.allowance.toString()),
+      }
+    );
+    buttonProps.text = t('Revoke {{assetSymbol}} approval', {
+      assetSymbol: selectedAsset?.symbol,
+    });
+    buttonProps.action = () => onApprove('0');
+  }
+
   const reApprovePrompt = (
     <div className="mb-4">
       <Notification
         intent={intent}
         testId="reapprove-default"
-        message={t('Approve again to deposit more than {{allowance}}', {
-          allowance: formatNumber(balances.allowance.toString()),
-        })}
-        buttonProps={{
-          size: 'small',
-          text: t('Approve {{assetSymbol}}', {
-            assetSymbol: selectedAsset?.symbol,
-          }),
-          action: onApprove,
-          dataTestId: 'reapprove-submit',
-        }}
+        message={message}
+        buttonProps={buttonProps}
       />
     </div>
   );
diff --git a/libs/deposits/src/lib/deposit-form.tsx b/libs/deposits/src/lib/deposit-form.tsx
index d631e8c4f..16dd48b90 100644
--- a/libs/deposits/src/lib/deposit-form.tsx
+++ b/libs/deposits/src/lib/deposit-form.tsx
@@ -58,7 +58,7 @@ export interface DepositFormProps {
   onSelectAsset: (assetId: string) => void;
   handleAmountChange: (amount: string) => void;
   onDisconnect: () => void;
-  submitApprove: () => void;
+  submitApprove: (amount?: string) => void;
   approveTxId: number | null;
   submitFaucet: () => void;
   faucetTxId: number | null;
@@ -423,8 +423,8 @@ export const DepositForm = ({
         isActive={isActive}
         approveTxId={approveTxId}
         selectedAsset={selectedAsset}
-        onApprove={() => {
-          submitApprove();
+        onApprove={(amount) => {
+          submitApprove(amount);
           setApproveNotificationIntent(Intent.Warning);
         }}
         balances={balances}
diff --git a/libs/deposits/src/lib/use-submit-approval.ts b/libs/deposits/src/lib/use-submit-approval.ts
index 81290155f..e24a76da6 100644
--- a/libs/deposits/src/lib/use-submit-approval.ts
+++ b/libs/deposits/src/lib/use-submit-approval.ts
@@ -35,11 +35,11 @@ export const useSubmitApproval = (
     reset: () => {
       setId(null);
     },
-    perform: () => {
+    perform: (amount?: string) => {
       if (!asset || !config) return;
       const id = createEthTransaction(contract, 'approve', [
         config?.collateral_bridge_contract.address,
-        MaxUint256.toString(),
+        amount ? amount : MaxUint256.toString(),
       ]);
       setId(id);
     },
diff --git a/libs/i18n/src/locales/en/deposits.json b/libs/i18n/src/locales/en/deposits.json
index c1c5d6dc8..c360e195e 100644
--- a/libs/i18n/src/locales/en/deposits.json
+++ b/libs/i18n/src/locales/en/deposits.json
@@ -4,6 +4,7 @@
   "Approval failed": "Approval failed",
   "Approve {{assetSymbol}}": "Approve {{assetSymbol}}",
   "Approve again to deposit more than {{allowance}}": "Approve again to deposit more than {{allowance}}",
+  "USDT approved amount cannot be changed, only revoked. Revoke and reapprove to deposit more than {{allowance}}.": "USDT approved amount cannot be changed, only revoked. Revoke and reapprove to deposit more than {{allowance}}.",
   "Asset": "Asset",
   "Balance available": "Balance available",
   "Before you can make a deposit of your chosen asset, {{assetSymbol}}, you need to approve its use in your Ethereum wallet": "Before you can make a deposit of your chosen asset, {{assetSymbol}}, you need to approve its use in your Ethereum wallet",
@@ -23,6 +24,7 @@
   "Please select": "Please select",
   "Please select an asset": "Please select an asset",
   "Remaining deposit allowance": "Remaining deposit allowance",
+  "Revoke {{assetSymbol}} approval": "Revoke {{assetSymbol}} approval",
   "Select from wallet": "Select from wallet",
   "The {{symbol}} faucet is not available at this time": "The {{symbol}} faucet is not available at this time",
   "The deposit cap is set when you approve an asset for use with this app. To increase this cap, approve {{assetSymbol}} again and choose a higher cap. Check the documentation for your Ethereum wallet app for details.": "The deposit cap is set when you approve an asset for use with this app. To increase this cap, approve {{assetSymbol}} again and choose a higher cap. Check the documentation for your Ethereum wallet app for details.",
diff --git a/libs/web3/src/lib/use-ethereum-transaction-manager.tsx b/libs/web3/src/lib/use-ethereum-transaction-manager.tsx
index 8bcc136ae..501bc93cc 100644
--- a/libs/web3/src/lib/use-ethereum-transaction-manager.tsx
+++ b/libs/web3/src/lib/use-ethereum-transaction-manager.tsx
@@ -27,6 +27,7 @@ export const useEthTransactionManager = () => {
       confirmations: 0,
       notify: true,
     });
+
     const {
       contract,
       methodName,
@@ -44,6 +45,7 @@ export const useEthTransactionManager = () => {
         ) {
           throw new Error('method not found on contract');
         }
+
         await contract.contract.callStatic[methodName](...args);
       } catch (err) {
         update(transaction.id, {