diff --git a/tests/parallel_test/cases.task b/tests/parallel_test/cases.task
index ef286729dba25ea7d90198a4b2e76782082bf6e7..ddf5e7fce93fc9c1d4fe5cc4058899178f4191b9 100644
--- a/tests/parallel_test/cases.task
+++ b/tests/parallel_test/cases.task
@@ -822,6 +822,7 @@
 ,,y,system-test,./pytest.sh python3 ./test.py -f 2-query/projectionDesc.py
 ,,y,system-test,./pytest.sh python3 ./test.py -f 2-query/ts_3398.py -N 3 -n 3
 ,,y,system-test,./pytest.sh python3 ./test.py -f 2-query/ts_3405.py -N 3 -n 3
+,,y,system-test,./pytest.sh python3 ./test.py -f 2-query/ts_3423.py -N 3 -n 3
 
 ,,n,system-test,python3 ./test.py -f 2-query/queryQnode.py
 ,,y,system-test,./pytest.sh python3 ./test.py -f 6-cluster/5dnode1mnode.py
diff --git a/tests/system-test/2-query/ts_3423.py b/tests/system-test/2-query/ts_3423.py
new file mode 100644
index 0000000000000000000000000000000000000000..97298b96be04b155dcbe54b097b98ad50cd40fe8
--- /dev/null
+++ b/tests/system-test/2-query/ts_3423.py
@@ -0,0 +1,69 @@
+from util.log import *
+from util.sql import *
+from util.cases import *
+from util.sqlset import *
+import datetime
+import random
+
+class TDTestCase:
+    """This test case is used to verify last(*) query result is correct when the data
+    is group by tag for stable
+    """
+    def init(self, conn, logSql, replicaVar=1):
+        self.replicaVar = int(replicaVar)
+        tdLog.debug("start to execute %s" % __file__)
+        tdSql.init(conn.cursor(), False)
+
+    def run(self):
+        # test case for https://jira.taosdata.com:18080/browse/TS-3423:
+        # create db
+        ret = tdSql.execute("CREATE DATABASE IF NOT EXISTS ts_3423 REPLICA {} DURATION 14400m KEEP 5256000m,5256000m,5256000m PRECISION 'ms' MINROWS 100 MAXROWS 4096 COMP 2;".format(self.replicaVar))
+        tdSql.execute("use ts_3423;")
+
+        # create stable
+        ret = tdSql.execute("CREATE STABLE IF NOT EXISTS ts_3423.`st_last`(`ts` timestamp,`n1` int,`n2` float) TAGS(`groupname` binary(32));")
+
+        # insert the data to table
+        insertRows = 10
+        child_table_num = 10
+        for i in range(insertRows):
+            ts = datetime.datetime.strptime('2023-05-01 00:00:00.000', '%Y-%m-%d %H:%M:%S.%f') + datetime.timedelta(seconds=i)
+            for j in range(child_table_num):
+                ret = tdSql.execute("insert into {} using ts_3423.`st_last` tags('{}') values ('{}', {}, {})".format("d" + str(j), "group" + str(j), str(ts), str(i+1), random.random()))
+        tdLog.info("insert %d rows for every child table" % (insertRows))
+
+        # cache model list
+        cache_model = ["none", "last_row", "last_value", "both"]
+        query_res = []
+        
+        # execute the sql statements first
+        ret = tdSql.query("select `cachemodel` from information_schema.ins_databases where name='ts_3423'")
+        current_cache_model = tdSql.queryResult[0][0]
+        tdLog.info("query on cache model {}".format(current_cache_model))
+        ret = tdSql.query("select last(*) from st_last group by groupname;")
+        # save the results
+        query_res.append(len(tdSql.queryResult))
+        # remove the current cache model
+        cache_model.remove(current_cache_model)
+        
+        for item in cache_model:
+            tdSql.execute("alter database ts_3423 cachemodel '{}';".format(item))
+            # execute the sql statements
+            ret = tdSql.query("select last(*) from st_last group by groupname;")
+            tdLog.info("query on cache model {}".format(item))
+            query_res.append(len(tdSql.queryResult))
+        # check the result
+        res = True if query_res.count(child_table_num) == 4 else False
+        if res:
+            tdLog.info("query result is correct and same among different cache model")
+        else:
+            tdLog.info("query result is wrong")
+
+    def stop(self):
+        # clear the db
+        tdSql.execute("drop database if exists ts_3423;")
+        tdSql.close()
+        tdLog.success("%s successfully executed" % __file__)
+
+tdCases.addWindows(__file__, TDTestCase())
+tdCases.addLinux(__file__, TDTestCase())