diff --git a/src/libs/ui/forms/form-validation-rules.ts b/src/libs/ui/forms/form-validation-rules.ts
index cb19c0e27..ed1f33c9c 100644
--- a/src/libs/ui/forms/form-validation-rules.ts
+++ b/src/libs/ui/forms/form-validation-rules.ts
@@ -369,7 +369,10 @@ export const useCSPRStakeAmountRule = (
     });
 };
 
-export const useValidatorPublicKeyRule = (delegatorsNumber?: number) => {
+export const useValidatorPublicKeyRule = (
+  stakesType: AuctionManagerEntryPoint,
+  delegatorsNumber?: number
+) => {
   const { t } = useTranslation();
 
   return Yup.string()
@@ -381,7 +384,16 @@ export const useValidatorPublicKeyRule = (delegatorsNumber?: number) => {
     })
     .test({
       name: 'maxDelegators',
-      test: () => !(delegatorsNumber && delegatorsNumber >= MAX_DELEGATORS),
+      test: () => {
+        if (stakesType === AuctionManagerEntryPoint.undelegate) {
+          return true;
+        }
+        if (delegatorsNumber) {
+          return delegatorsNumber < MAX_DELEGATORS;
+        }
+
+        return false;
+      },
       message: t(
         'This validator has reached the network limit for total delegators and therefore cannot be delegated to by new accounts. Please select another validator with fewer than 1200 total delegators'
       )
diff --git a/src/libs/ui/forms/stakes-form.ts b/src/libs/ui/forms/stakes-form.ts
index 5a96a6ab7..f066e39b9 100644
--- a/src/libs/ui/forms/stakes-form.ts
+++ b/src/libs/ui/forms/stakes-form.ts
@@ -24,7 +24,7 @@ export const useStakesForm = (
   delegatorsNumber?: number
 ) => {
   const validatorFormSchema = Yup.object().shape({
-    validatorPublicKey: useValidatorPublicKeyRule(delegatorsNumber)
+    validatorPublicKey: useValidatorPublicKeyRule(stakesType, delegatorsNumber)
   });
 
   const validatorFormOptions: UseFormProps<StakeValidatorFormValues> = {