diff --git a/app/views/admin/products_v3/_variant_row.html.haml b/app/views/admin/products_v3/_variant_row.html.haml
index 54bf2ca861..79340b0f3e 100644
--- a/app/views/admin/products_v3/_variant_row.html.haml
+++ b/app/views/admin/products_v3/_variant_row.html.haml
@@ -88,6 +88,8 @@
   = render(VerticalEllipsisMenuComponent.new) do
     - if variant.persisted?
       = link_to t('admin.products_page.actions.edit'), edit_admin_product_variant_path(variant.product, variant)
+      / TODO: only show if have permission. need to load permissions efficiently please. maybe the PErmissions object can cache result for each enterprise. maybe we preload it with the product query.
+      = link_to t('admin.products_page.actions.create_sourced_variant'), "TODO" # see next commit
       - if variant.product.variants.size > 1
         %a{ "data-controller": "modal-link", "data-action": "click->modal-link#setModalDataSetOnConfirm click->modal-link#open",
             "data-modal-link-target-value": "variant-delete-modal", "class": "delete",
diff --git a/config/locales/en.yml b/config/locales/en.yml
index fffe128a73..f2f0e77c7c 100644
--- a/config/locales/en.yml
+++ b/config/locales/en.yml
@@ -717,6 +717,7 @@ en:
         delete: Delete
         remove: Remove
         preview: Preview
+        create_sourced_variant: Create sourced variant
       image:
         edit: Edit
       product_preview:
diff --git a/spec/system/admin/products_v3/actions_spec.rb b/spec/system/admin/products_v3/actions_spec.rb
index 53079771df..006bce3132 100644
--- a/spec/system/admin/products_v3/actions_spec.rb
+++ b/spec/system/admin/products_v3/actions_spec.rb
@@ -272,6 +272,58 @@ RSpec.describe 'As an enterprise user, I can perform actions on the products scr
       end
     end
 
+    describe "Create sourced variant" do
+      let!(:variant) {
+        create(:variant, display_name: "My box", supplier: producer)
+      }
+      let!(:other_producer) { create(:supplier_enterprise) }
+      let!(:other_variant) {
+        create(:variant, display_name: "My friends box", supplier: other_producer)
+      }
+      let!(:enterprise_relationship) {
+        # Other producer grants me access to manage their variant
+        create(:enterprise_relationship, parent: other_producer, child: producer,
+                                         permissions_list: [:manage_products])
+      }
+
+      before do
+        visit admin_products_url
+      end
+
+      context "with create_sourced_variants permission for my, and other's variants" do
+        it "shows an option to create sourced variant" do
+          create(:enterprise_relationship, parent: producer, child: producer,
+                                           permissions_list: [:create_sourced_variants])
+          enterprise_relationship.permissions.create! name: :create_sourced_variants
+
+          within row_containing_name("My box") do
+            page.find(".vertical-ellipsis-menu").click
+            expect(page).to have_link "Create sourced variant" # , href: admin_clone_product_path(product_a)
+          end
+
+          within row_containing_name("My friends box") do
+            page.find(".vertical-ellipsis-menu").click
+            expect(page).to have_link "Create sourced variant" # , href: admin_clone_product_path(product_a)
+          end
+        end
+      end
+
+      context "without create_sourced_variants permission" do
+        it "does not show the option in the menu" do
+          pending "TODO: hide option if you can't use it."
+          within row_containing_name("My box") do
+            page.find(".vertical-ellipsis-menu").click
+            expect(page).not_to have_link "Create sourced variant"
+          end
+
+          within row_containing_name("My friends box") do
+            page.find(".vertical-ellipsis-menu").click
+            expect(page).not_to have_link "Create sourced variant"
+          end
+        end
+      end
+    end
+
     describe "delete" do
       let!(:product_a) { create(:simple_product, name: "Apples", sku: "APL-00") }
       let(:delete_option_selector) { "a[data-controller='modal-link'].delete" }
@@ -508,4 +560,4 @@ RSpec.describe 'As an enterprise user, I can perform actions on the products scr
   def close_action_menu
     page.find("div#content").click
   end
-end
\ No newline at end of file
+end