diff --git a/app/clients/sms/mmg.py b/app/clients/sms/mmg.py
index d0b409db5..70148e2c3 100644
--- a/app/clients/sms/mmg.py
+++ b/app/clients/sms/mmg.py
@@ -6,12 +6,30 @@ from app.clients import (STATISTICS_DELIVERED, STATISTICS_FAILURE)
 from app.clients.sms import (SmsClient, SmsClientException)
 
 mmg_response_map = {
+    '2': {
+        "message": ' Temporary failure',
+        "notification_statistics_status": STATISTICS_FAILURE,
+        "success": False,
+        "notification_status": 'temporary-failure'
+    },
     '3': {
         "message": 'Delivered',
         "notification_statistics_status": STATISTICS_DELIVERED,
         "success": True,
         "notification_status": 'delivered'
     },
+    '4': {
+        "message": ' Temporary failure',
+        "notification_statistics_status": STATISTICS_FAILURE,
+        "success": False,
+        "notification_status": 'temporary-failure'
+    },
+    '5': {
+        "message": 'Permanent failure',
+        "notification_statistics_status": STATISTICS_FAILURE,
+        "success": False,
+        "notification_status": 'permanent-failure'
+    },
     'default': {
         "message": 'Declined',
         "success": False,
diff --git a/tests/app/notifications/test_rest.py b/tests/app/notifications/test_rest.py
index 0ff1b8577..74071bda1 100644
--- a/tests/app/notifications/test_rest.py
+++ b/tests/app/notifications/test_rest.py
@@ -1291,13 +1291,63 @@ def test_process_mmg_response_returns_200_when_cid_is_valid_notification_id(noti
         assert get_notification_by_id(sample_notification.id).status == 'delivered'
 
 
-def test_process_mmg_response_updates_notification_with_failed_status(notify_api, sample_notification):
+def test_process_mmg_response_status_5_updates_notification_with_permanently_failed(notify_api,
+                                                                                    sample_notification):
     with notify_api.test_client() as client:
         data = json.dumps({"reference": "mmg_reference",
                            "CID": str(sample_notification.id),
                            "MSISDN": "447777349060",
-                           "status": 5,
-                           "deliverytime": "2016-04-05 16:01:07"})
+                           "status": 5})
+
+        response = client.post(path='notifications/sms/mmg',
+                               data=data,
+                               headers=[('Content-Type', 'application/json')])
+        assert response.status_code == 200
+        json_data = json.loads(response.data)
+        assert json_data['result'] == 'success'
+        assert json_data['message'] == 'MMG callback succeeded. reference {} updated'.format(sample_notification.id)
+        assert get_notification_by_id(sample_notification.id).status == 'permanent-failure'
+
+
+def test_process_mmg_response_status_2_or_4_updates_notification_with_temporary_failed(notify_api,
+                                                                                       sample_notification):
+    with notify_api.test_client() as client:
+        data = json.dumps({"reference": "mmg_reference",
+                           "CID": str(sample_notification.id),
+                           "MSISDN": "447777349060",
+                           "status": 2})
+
+        response = client.post(path='notifications/sms/mmg',
+                               data=data,
+                               headers=[('Content-Type', 'application/json')])
+        assert response.status_code == 200
+        json_data = json.loads(response.data)
+        assert json_data['result'] == 'success'
+        assert json_data['message'] == 'MMG callback succeeded. reference {} updated'.format(sample_notification.id)
+        assert get_notification_by_id(sample_notification.id).status == 'temporary-failure'
+
+        data = json.dumps({"reference": "mmg_reference",
+                           "CID": str(sample_notification.id),
+                           "MSISDN": "447777349060",
+                           "status": 4})
+
+        response = client.post(path='notifications/sms/mmg',
+                               data=data,
+                               headers=[('Content-Type', 'application/json')])
+        assert response.status_code == 200
+        json_data = json.loads(response.data)
+        assert json_data['result'] == 'success'
+        assert json_data['message'] == 'MMG callback succeeded. reference {} updated'.format(sample_notification.id)
+        assert get_notification_by_id(sample_notification.id).status == 'temporary-failure'
+
+
+def test_process_mmg_response_unknown_status_updates_notification_with_failed(notify_api,
+                                                                              sample_notification):
+    with notify_api.test_client() as client:
+        data = json.dumps({"reference": "mmg_reference",
+                           "CID": str(sample_notification.id),
+                           "MSISDN": "447777349060",
+                           "status": 10})
 
         response = client.post(path='notifications/sms/mmg',
                                data=data,