diff --git a/CHANGELOG.md b/CHANGELOG.md
index 188faf8e..1f9cddc0 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -12,11 +12,11 @@ Description of the upcoming release here.
 ### Added
 
 - [#259](https://github.com/FuelLabs/sway-libs/pull/259) Adds a new upgradability library, including associated tests and documentation.
+- [#265](https://github.com/FuelLabs/sway-libs/pull/265) Adds the `SetMetadataEvent` and emits `SetMetadataEvent` when the `_set_metadata()` function is called.
 
 ### Changed
 
-- Something changed here 1
-- Something changed here 2
+- [#265](https://github.com/FuelLabs/sway-libs/pull/265) Enables the metadata events now that the Rust SDK supports wrapped heap types.
 
 ### Fixed
 
diff --git a/libs/src/asset/metadata.sw b/libs/src/asset/metadata.sw
index ae3a4bd7..4af81c82 100644
--- a/libs/src/asset/metadata.sw
+++ b/libs/src/asset/metadata.sw
@@ -2,6 +2,7 @@ library;
 
 use standards::src7::Metadata;
 use std::{
+    auth::msg_sender,
     bytes::Bytes,
     hash::{
         Hash,
@@ -18,6 +19,18 @@ use std::{
     string::String,
 };
 
+/// The event emitted when metadata is set via the `_set_metadata()` function.
+pub struct SetMetadataEvent {
+    /// The asset for which metadata is set.
+    asset: AssetId,
+    /// The `Identity` of the caller that set the metadata.
+    sender: Identity,
+    /// The Metadata that is set.
+    metadata: Metadata,
+    /// The key used for the metadata.
+    key: String,
+}
+
 /// A persistent storage type to store the SRC-7; Metadata Standard type.
 ///
 /// # Additional Information
@@ -166,6 +179,12 @@ pub fn _set_metadata(
     key: String,
     metadata: Metadata,
 ) {
+    log(SetMetadataEvent {
+        asset,
+        sender: msg_sender().unwrap(),
+        metadata,
+        key,
+    });
     metadata_key.insert(asset, key, metadata);
 }
 
diff --git a/tests/src/native_asset/tests/functions/metadata.rs b/tests/src/native_asset/tests/functions/metadata.rs
index bdaa5773..19a7c5a0 100644
--- a/tests/src/native_asset/tests/functions/metadata.rs
+++ b/tests/src/native_asset/tests/functions/metadata.rs
@@ -8,7 +8,6 @@ mod success {
 
     use super::*;
 
-    #[ignore]
     #[tokio::test]
     async fn gets_one_asset() {
         let (owner_wallet, other_wallet, id, instance_1, _instance_2) = setup().await;
@@ -26,7 +25,6 @@ mod success {
         );
     }
 
-    #[ignore]
     #[tokio::test]
     async fn gets_multiple_assets() {
         let (owner_wallet, other_wallet, id, instance_1, _instance_2) = setup().await;
@@ -60,7 +58,6 @@ mod success {
         );
     }
 
-    #[ignore]
     #[tokio::test]
     async fn gets_multiple_types() {
         let (owner_wallet, other_wallet, id, instance_1, _instance_2) = setup().await;
@@ -68,8 +65,10 @@ mod success {
             defaults(id, owner_wallet, other_wallet.clone());
         let metadata1 = Metadata::String(String::from("Fuel NFT Metadata 1"));
         let metadata2 = Metadata::Int(1);
-        let metadata3 =
-            Metadata::Bytes(Bytes::from_hex_str("bytes").expect("failed to conver to bytes"));
+        let metadata3 = Metadata::Bytes(
+            Bytes::from_hex_str("0101010101010101010101010101010101010101010101010101010101010101")
+                .expect("failed to convert to bytes"),
+        );
         let key1 = String::from("key1");
         let key2 = String::from("key2");
         let key3 = String::from("key3");
diff --git a/tests/src/native_asset/tests/functions/set_metadata.rs b/tests/src/native_asset/tests/functions/set_metadata.rs
index 56bc276d..6b257ca1 100644
--- a/tests/src/native_asset/tests/functions/set_metadata.rs
+++ b/tests/src/native_asset/tests/functions/set_metadata.rs
@@ -1,85 +1,157 @@
 use crate::native_asset::tests::utils::{
     interface::{metadata, set_metadata},
-    setup::{defaults, get_asset_id, setup, Metadata},
+    setup::{defaults, get_asset_id, setup, Metadata, SetMetadataEvent},
 };
-use fuels::types::{Bytes, Bytes32};
+use fuels::types::{Bytes, Bytes32, Identity};
 
 mod success {
 
     use super::*;
 
-    #[ignore]
     #[tokio::test]
     async fn sets_one_asset() {
         let (owner_wallet, other_wallet, id, instance_1, _instance_2) = setup().await;
         let (asset_id_1, _asset_id_2, _sub_id_1, _sub_id_2, _identity1, _other_identity) =
-            defaults(id, owner_wallet, other_wallet.clone());
+            defaults(id, owner_wallet.clone(), other_wallet.clone());
         let metadata1 = Metadata::String(String::from("Fuel NFT Metadata"));
         let key = String::from("key1");
 
         assert_eq!(metadata(&instance_1, asset_id_1, key.clone()).await, None);
 
-        set_metadata(&instance_1, asset_id_1, key.clone(), metadata1.clone()).await;
+        let response = set_metadata(&instance_1, asset_id_1, key.clone(), metadata1.clone()).await;
         assert_eq!(
-            metadata(&instance_1, asset_id_1, key).await,
-            Some(metadata1)
+            metadata(&instance_1, asset_id_1, key.clone()).await,
+            Some(metadata1.clone())
+        );
+
+        let log = response
+            .decode_logs_with_type::<SetMetadataEvent>()
+            .unwrap();
+        let event = log.first().unwrap();
+
+        assert_eq!(
+            *event,
+            SetMetadataEvent {
+                asset: asset_id_1,
+                sender: Identity::Address(owner_wallet.address().into()),
+                metadata: metadata1,
+                key: key
+            }
         );
     }
 
-    #[ignore]
     #[tokio::test]
     async fn sets_multiple_assets() {
         let (owner_wallet, other_wallet, id, instance_1, _instance_2) = setup().await;
         let (asset_id_1, asset_id_2, _sub_id_1, _sub_id_2, _identity1, _other_identity) =
-            defaults(id, owner_wallet, other_wallet.clone());
+            defaults(id, owner_wallet.clone(), other_wallet.clone());
         let metadata1 = Metadata::String(String::from("Fuel NFT Metadata 1"));
         let metadata2 = Metadata::String(String::from("Fuel NFT Metadata 2"));
         let metadata3 = Metadata::String(String::from("Fuel NFT Metadata 3"));
         let key = String::from("key1");
 
         assert_eq!(metadata(&instance_1, asset_id_1, key.clone()).await, None);
-        set_metadata(&instance_1, asset_id_1, key.clone(), metadata1.clone()).await;
+        let response = set_metadata(&instance_1, asset_id_1, key.clone(), metadata1.clone()).await;
         assert_eq!(
             metadata(&instance_1, asset_id_1, key.clone()).await,
-            Some(metadata1)
+            Some(metadata1.clone())
+        );
+
+        let log = response
+            .decode_logs_with_type::<SetMetadataEvent>()
+            .unwrap();
+        let event = log.first().unwrap();
+
+        assert_eq!(
+            *event,
+            SetMetadataEvent {
+                asset: asset_id_1,
+                sender: Identity::Address(owner_wallet.address().into()),
+                metadata: metadata1,
+                key: key.clone()
+            }
         );
 
         assert_eq!(metadata(&instance_1, asset_id_2, key.clone()).await, None);
-        set_metadata(&instance_1, asset_id_2, key.clone(), metadata2.clone()).await;
+        let response = set_metadata(&instance_1, asset_id_2, key.clone(), metadata2.clone()).await;
         assert_eq!(
             metadata(&instance_1, asset_id_2, key.clone()).await,
-            Some(metadata2)
+            Some(metadata2.clone())
+        );
+
+        let log = response
+            .decode_logs_with_type::<SetMetadataEvent>()
+            .unwrap();
+        let event = log.first().unwrap();
+
+        assert_eq!(
+            *event,
+            SetMetadataEvent {
+                asset: asset_id_2,
+                sender: Identity::Address(owner_wallet.address().into()),
+                metadata: metadata2,
+                key: key.clone()
+            }
         );
 
         let asset_id_3 = get_asset_id(Bytes32::from([3u8; 32]), id);
         assert_eq!(metadata(&instance_1, asset_id_3, key.clone()).await, None);
-        set_metadata(&instance_1, asset_id_3, key.clone(), metadata3.clone()).await;
+        let response = set_metadata(&instance_1, asset_id_3, key.clone(), metadata3.clone()).await;
+        assert_eq!(
+            metadata(&instance_1, asset_id_3, key.clone()).await,
+            Some(metadata3.clone())
+        );
+
+        let log = response
+            .decode_logs_with_type::<SetMetadataEvent>()
+            .unwrap();
+        let event = log.first().unwrap();
+
         assert_eq!(
-            metadata(&instance_1, asset_id_3, key).await,
-            Some(metadata3)
+            *event,
+            SetMetadataEvent {
+                asset: asset_id_3,
+                sender: Identity::Address(owner_wallet.address().into()),
+                metadata: metadata3,
+                key: key
+            }
         );
     }
 
-    #[ignore]
     #[tokio::test]
     async fn does_not_overwrite_other_names() {
         let (owner_wallet, other_wallet, id, instance_1, _instance_2) = setup().await;
         let (asset_id_1, asset_id_2, _sub_id_1, _sub_id_2, _identity1, _other_identity) =
-            defaults(id, owner_wallet, other_wallet.clone());
+            defaults(id, owner_wallet.clone(), other_wallet.clone());
         let metadata1 = Metadata::String(String::from("Fuel NFT Metadata 1"));
         let metadata2 = Metadata::String(String::from("Fuel NFT Metadata 2"));
         let metadata3 = Metadata::String(String::from("Fuel NFT Metadata 3"));
         let key = String::from("key1");
 
         assert_eq!(metadata(&instance_1, asset_id_1, key.clone()).await, None);
-        set_metadata(&instance_1, asset_id_1, key.clone(), metadata1.clone()).await;
+        let response = set_metadata(&instance_1, asset_id_1, key.clone(), metadata1.clone()).await;
         assert_eq!(
             metadata(&instance_1, asset_id_1.clone(), key.clone()).await,
             Some(metadata1.clone())
         );
 
+        let log = response
+            .decode_logs_with_type::<SetMetadataEvent>()
+            .unwrap();
+        let event = log.first().unwrap();
+
+        assert_eq!(
+            *event,
+            SetMetadataEvent {
+                asset: asset_id_1,
+                sender: Identity::Address(owner_wallet.address().into()),
+                metadata: metadata1.clone(),
+                key: key.clone()
+            }
+        );
+
         assert_eq!(metadata(&instance_1, asset_id_2, key.clone()).await, None);
-        set_metadata(&instance_1, asset_id_2, key.clone(), metadata2.clone()).await;
+        let response = set_metadata(&instance_1, asset_id_2, key.clone(), metadata2.clone()).await;
 
         assert_eq!(
             metadata(&instance_1, asset_id_1, key.clone()).await,
@@ -90,9 +162,24 @@ mod success {
             Some(metadata2.clone())
         );
 
+        let log = response
+            .decode_logs_with_type::<SetMetadataEvent>()
+            .unwrap();
+        let event = log.first().unwrap();
+
+        assert_eq!(
+            *event,
+            SetMetadataEvent {
+                asset: asset_id_2,
+                sender: Identity::Address(owner_wallet.address().into()),
+                metadata: metadata2.clone(),
+                key: key.clone()
+            }
+        );
+
         let asset_id_3 = get_asset_id(Bytes32::from([3u8; 32]), id);
         assert_eq!(metadata(&instance_1, asset_id_3, key.clone()).await, None);
-        set_metadata(&instance_1, asset_id_3, key.clone(), metadata3.clone()).await;
+        let response = set_metadata(&instance_1, asset_id_3, key.clone(), metadata3.clone()).await;
 
         assert_eq!(
             metadata(&instance_1, asset_id_1, key.clone()).await,
@@ -103,34 +190,65 @@ mod success {
             Some(metadata2)
         );
         assert_eq!(
-            metadata(&instance_1, asset_id_3, key).await,
-            Some(metadata3)
+            metadata(&instance_1, asset_id_3, key.clone()).await,
+            Some(metadata3.clone())
+        );
+
+        let log = response
+            .decode_logs_with_type::<SetMetadataEvent>()
+            .unwrap();
+        let event = log.first().unwrap();
+
+        assert_eq!(
+            *event,
+            SetMetadataEvent {
+                asset: asset_id_3,
+                sender: Identity::Address(owner_wallet.address().into()),
+                metadata: metadata3,
+                key: key
+            }
         );
     }
 
-    #[ignore]
     #[tokio::test]
     async fn sets_multiple_types() {
         let (owner_wallet, other_wallet, id, instance_1, _instance_2) = setup().await;
         let (asset_id_1, _asset_id_2, _sub_id_1, _sub_id_2, _identity1, _other_identity) =
-            defaults(id, owner_wallet, other_wallet.clone());
+            defaults(id, owner_wallet.clone(), other_wallet.clone());
         let metadata1 = Metadata::String(String::from("Fuel NFT Metadata 1"));
         let metadata2 = Metadata::Int(1);
-        let metadata3 =
-            Metadata::Bytes(Bytes::from_hex_str("bytes").expect("failed to conver to bytes"));
+        let metadata3 = Metadata::Bytes(
+            Bytes::from_hex_str("0101010101010101010101010101010101010101010101010101010101010101")
+                .expect("failed to convert to bytes"),
+        );
         let key1 = String::from("key1");
         let key2 = String::from("key2");
         let key3 = String::from("key3");
 
         assert_eq!(metadata(&instance_1, asset_id_1, key1.clone()).await, None);
-        set_metadata(&instance_1, asset_id_1, key1.clone(), metadata1.clone()).await;
+        let response = set_metadata(&instance_1, asset_id_1, key1.clone(), metadata1.clone()).await;
         assert_eq!(
             metadata(&instance_1, asset_id_1, key1.clone()).await,
             Some(metadata1.clone())
         );
 
+        let log = response
+            .decode_logs_with_type::<SetMetadataEvent>()
+            .unwrap();
+        let event = log.first().unwrap();
+
+        assert_eq!(
+            *event,
+            SetMetadataEvent {
+                asset: asset_id_1,
+                sender: Identity::Address(owner_wallet.address().into()),
+                metadata: metadata1.clone(),
+                key: key1.clone()
+            }
+        );
+
         assert_eq!(metadata(&instance_1, asset_id_1, key2.clone()).await, None);
-        set_metadata(&instance_1, asset_id_1, key2.clone(), metadata2.clone()).await;
+        let response = set_metadata(&instance_1, asset_id_1, key2.clone(), metadata2.clone()).await;
         assert_eq!(
             metadata(&instance_1, asset_id_1, key2.clone()).await,
             Some(metadata2.clone())
@@ -140,11 +258,26 @@ mod success {
             Some(metadata1.clone())
         );
 
+        let log = response
+            .decode_logs_with_type::<SetMetadataEvent>()
+            .unwrap();
+        let event = log.first().unwrap();
+
+        assert_eq!(
+            *event,
+            SetMetadataEvent {
+                asset: asset_id_1,
+                sender: Identity::Address(owner_wallet.address().into()),
+                metadata: metadata2.clone(),
+                key: key2.clone()
+            }
+        );
+
         assert_eq!(metadata(&instance_1, asset_id_1, key3.clone()).await, None);
-        set_metadata(&instance_1, asset_id_1, key3.clone(), metadata3.clone()).await;
+        let response = set_metadata(&instance_1, asset_id_1, key3.clone(), metadata3.clone()).await;
         assert_eq!(
-            metadata(&instance_1, asset_id_1, key3).await,
-            Some(metadata3)
+            metadata(&instance_1, asset_id_1, key3.clone()).await,
+            Some(metadata3.clone())
         );
         assert_eq!(
             metadata(&instance_1, asset_id_1, key2.clone()).await,
@@ -154,5 +287,20 @@ mod success {
             metadata(&instance_1, asset_id_1, key1.clone()).await,
             Some(metadata1)
         );
+
+        let log = response
+            .decode_logs_with_type::<SetMetadataEvent>()
+            .unwrap();
+        let event = log.first().unwrap();
+
+        assert_eq!(
+            *event,
+            SetMetadataEvent {
+                asset: asset_id_1,
+                sender: Identity::Address(owner_wallet.address().into()),
+                metadata: metadata3,
+                key: key3
+            }
+        );
     }
 }