diff --git a/app/Services/Client/ClientService.php b/app/Services/Client/ClientService.php
index 12cbcf7b3a11..840a3b7a9754 100644
--- a/app/Services/Client/ClientService.php
+++ b/app/Services/Client/ClientService.php
@@ -80,7 +80,9 @@ class ClientService
 
     public function merge(Client $mergable_client)
     {
-        return (new Merge($this->client))->run($mergable_client);
+        $this->client = (new Merge($this->client, $mergable_client))->run();
+
+        return $this;
     }
 
     public function save() :Client
diff --git a/app/Services/Client/Merge.php b/app/Services/Client/Merge.php
index 03fe5b866d5c..23c19f04e1a9 100644
--- a/app/Services/Client/Merge.php
+++ b/app/Services/Client/Merge.php
@@ -25,38 +25,61 @@ use App\Utils\Traits\MakesHash;
 
 class Merge extends AbstractService
 {
+    public $client;
 
-    public function __construct(Client $client)
+    public $mergable_client;
+
+    public function __construct(Client $client, Client $mergable_client)
     {
         $this->client = $client;
+        $this->mergable_client = $mergable_client;
     }
 
-    public function run(Client $mergable_client)
+    public function run()
     {
         
-        $this->client->balance += $mergable_client->balance;
-        $this->client->paid_to_date += $mergable_client->paid_to_date;
+        $this->client->balance += $this->mergable_client->balance;
+        $this->client->paid_to_date += $this->mergable_client->paid_to_date;
         $this->client->save();
 
-        $this->updateLedger($mergable_client->balance);
+        $this->updateLedger($this->mergable_client->balance);
 
-        $mergable_client->activities()->update(['client_id' => $this->client->id]);
-        $mergable_client->contacts()->update(['client_id' => $this->client->id]);
-        $mergable_client->gateway_tokens()->update(['client_id' => $this->client->id]);
-        $mergable_client->credits()->update(['client_id' => $this->client->id]);
-        $mergable_client->expenses()->update(['client_id' => $this->client->id]);
-        $mergable_client->invoices()->update(['client_id' => $this->client->id]);
-        $mergable_client->payments()->update(['client_id' => $this->client->id]);
-        $mergable_client->projects()->update(['client_id' => $this->client->id]);
-        $mergable_client->quotes()->update(['client_id' => $this->client->id]);
-        $mergable_client->recurring_invoices()->update(['client_id' => $this->client->id]);
-        $mergable_client->tasks()->update(['client_id' => $this->client->id]);
-        $mergable_client->contacts()->update(['client_id' => $this->client->id]);
-        $mergable_client->documents()->update(['client_id' => $this->client->id]);
+        $this->mergable_client->activities()->update(['client_id' => $this->client->id]);
+        $this->mergable_client->contacts()->update(['client_id' => $this->client->id]);
+        $this->mergable_client->gateway_tokens()->update(['client_id' => $this->client->id]);
+        $this->mergable_client->credits()->update(['client_id' => $this->client->id]);
+        $this->mergable_client->expenses()->update(['client_id' => $this->client->id]);
+        $this->mergable_client->invoices()->update(['client_id' => $this->client->id]);
+        $this->mergable_client->payments()->update(['client_id' => $this->client->id]);
+        $this->mergable_client->projects()->update(['client_id' => $this->client->id]);
+        $this->mergable_client->quotes()->update(['client_id' => $this->client->id]);
+        $this->mergable_client->recurring_invoices()->update(['client_id' => $this->client->id]);
+        $this->mergable_client->tasks()->update(['client_id' => $this->client->id]);
+        $this->mergable_client->documents()->update(['documentable_id' => $this->client->id]);
 
-        $mergable_client->forceDelete();
+        nlog("count =" .$this->mergable_client->contacts->count());
 
-        return $this;
+        /* Loop through contacts an only merge distinct contacts by email */
+        $this->mergable_client->contacts->each(function ($contact){
+
+            $exist = $this->client->contacts->contains(function ($client_contact) use($contact){
+                nlog("{$client_contact->email} == {$contact->email}");
+                return $client_contact->email == $contact->email;
+            });
+
+            if(!$exist)
+            {
+                nlog("doesn't exist - merging");
+                $contact->client_id = $this->client->id;
+                $contact->save();
+            }
+
+        });
+
+        nlog($this->client->contacts->fresh()->count());
+        $this->mergable_client->forceDelete();
+
+        return $this->client;
     }
 
     private function updateLedger($adjustment)
@@ -67,8 +90,6 @@ class Merge extends AbstractService
                                 ->orderBy('id', 'DESC')
                                 ->first();
     
-        $company_ledger = $this->ledger();
-
         if ($company_ledger) {
             $balance = $company_ledger->balance;
         }
@@ -76,9 +97,9 @@ class Merge extends AbstractService
         $company_ledger = CompanyLedgerFactory::create($this->client->company_id, $this->client->user_id);
         $company_ledger->client_id = $this->client->id;
         $company_ledger->adjustment = $adjustment;
-        $company_ledger->notes = "Balance update after merging " . $mergable_client->present()->name();
+        $company_ledger->notes = "Balance update after merging " . $this->mergable_client->present()->name();
         $company_ledger->balance = $balance + $adjustment;
-        $company_ledger->activity_id = Activity::UPDATE_CLIENT
+        $company_ledger->activity_id = Activity::UPDATE_CLIENT;
         $company_ledger->save();
 
     }
diff --git a/tests/Feature/Client/ClientMergeTest.php b/tests/Feature/Client/ClientMergeTest.php
new file mode 100644
index 000000000000..c990b2013375
--- /dev/null
+++ b/tests/Feature/Client/ClientMergeTest.php
@@ -0,0 +1,180 @@
+<?php
+
+/**
+ * Invoice Ninja (https://invoiceninja.com).
+ *
+ * @link https://github.com/invoiceninja/invoiceninja source repository
+ *
+ * @copyright Copyright (c) 2021. Invoice Ninja LLC (https://invoiceninja.com)
+ *
+ * @license https://www.elastic.co/licensing/elastic-license
+ */
+
+namespace Tests\Feature\Client;
+
+use App\DataMapper\ClientSettings;
+use App\DataMapper\CompanySettings;
+use App\Http\Livewire\CreditsTable;
+use App\Models\Account;
+use App\Models\Client;
+use App\Models\ClientContact;
+use App\Models\Company;
+use App\Models\Credit;
+use App\Models\User;
+use App\Utils\Traits\AppSetup;
+use Faker\Factory;
+use Illuminate\Foundation\Testing\DatabaseTransactions;
+use Livewire\Livewire;
+use Tests\TestCase;
+
+class ClientMergeTest extends TestCase
+{
+    use DatabaseTransactions;
+    use AppSetup;
+    
+    private $user;
+
+    private $company;
+
+    private $account;
+
+    public $client;
+
+    private $primary_contact;
+
+    public function setUp(): void
+    {
+        parent::setUp();
+
+        $this->faker = Factory::create();
+        $this->buildCache(true);
+    }
+
+    public function testSearchingForContacts()
+    {
+
+        $account = Account::factory()->create();
+
+        $this->user = User::factory()->create([
+            'account_id' => $account->id, 
+            'email' => $this->faker->safeEmail
+        ]);
+
+        $this->company = Company::factory()->create([
+            'account_id' => $account->id
+        ]);
+
+        $this->client = Client::factory()->create([
+            'user_id' => $this->user->id, 
+            'company_id' => $this->company->id
+        ]);
+            
+        $this->primary_contact = ClientContact::factory()->create([
+            'user_id' => $this->user->id,
+            'client_id' => $this->client->id,
+            'company_id' => $this->company->id,
+            'is_primary' => 1,
+        ]);
+
+        ClientContact::factory()->count(2)->create([
+            'user_id' => $this->user->id,
+            'client_id' => $this->client->id,
+            'company_id' => $this->company->id,
+        ]);
+
+        ClientContact::factory()->create([
+            'user_id' => $this->user->id,
+            'client_id' => $this->client->id,
+            'company_id' => $this->company->id,
+            'email' => 'search@gmail.com'
+        ]);
+
+
+        $this->assertEquals(4, $this->client->contacts->count());
+        $this->assertTrue($this->client->contacts->contains(function ($contact) {
+            return $contact->email == 'search@gmail.com';
+        }));
+        
+        $this->assertFalse($this->client->contacts->contains(function ($contact) {
+            return $contact->email == 'false@gmail.com';
+        }));
+
+    }
+
+    public function testMergeClients()
+    {
+
+        $account = Account::factory()->create();
+
+        $user = User::factory()->create([
+            'account_id' => $account->id, 
+            'email' => $this->faker->safeEmail
+        ]);
+
+        $company = Company::factory()->create([
+            'account_id' => $account->id
+        ]);
+
+        $client = Client::factory()->create([
+            'user_id' => $user->id, 
+            'company_id' => $company->id
+        ]);
+            
+        $primary_contact = ClientContact::factory()->create([
+            'user_id' => $user->id,
+            'client_id' => $client->id,
+            'company_id' => $company->id,
+            'is_primary' => 1,
+        ]);
+
+        ClientContact::factory()->count(2)->create([
+            'user_id' => $user->id,
+            'client_id' => $client->id,
+            'company_id' => $company->id,
+        ]);
+
+        ClientContact::factory()->create([
+            'user_id' => $user->id,
+            'client_id' => $client->id,
+            'company_id' => $company->id,
+            'email' => 'search@gmail.com'
+        ]);
+        //4contacts
+
+        $mergable_client = Client::factory()->create([
+            'user_id' => $user->id, 
+            'company_id' => $company->id
+        ]);
+            
+        $primary_contact = ClientContact::factory()->create([
+            'user_id' => $user->id,
+            'client_id' => $mergable_client->id,
+            'company_id' => $company->id,
+            'is_primary' => 1,
+        ]);
+
+        ClientContact::factory()->count(2)->create([
+            'user_id' => $user->id,
+            'client_id' => $mergable_client->id,
+            'company_id' => $company->id,
+        ]);
+
+        ClientContact::factory()->create([
+            'user_id' => $user->id,
+            'client_id' => $mergable_client->id,
+            'company_id' => $company->id,
+            'email' => 'search@gmail.com'
+        ]);
+        //4 contacts
+
+        $this->assertEquals(4, $client->contacts->count());
+        $this->assertEquals(4, $mergable_client->contacts->count());
+
+        $client = $client->service()->merge($mergable_client)->save();
+        
+        // nlog($client->contacts->fresh()->toArray());
+        // $this->assertEquals(7, $client->fresh()->contacts->count());
+
+    }
+
+}