diff --git a/nns/nns_contract.go b/nns/nns_contract.go
index 7396cc3..94432e3 100644
--- a/nns/nns_contract.go
+++ b/nns/nns_contract.go
@@ -234,13 +234,10 @@ func IsAvailable(name string) bool {
 	ctx := storage.GetReadOnlyContext()
 	l := len(fragments)
 	if storage.Get(ctx, append([]byte{prefixRoot}, []byte(fragments[l-1])...)) == nil {
-		if l != 1 {
-			panic("TLD not found")
-		}
 		return true
 	}
 
-	checkParentExists(ctx, fragments)
+	checkParent(ctx, fragments)
 	checkAvailableGlobalDomain(ctx, name)
 	return storage.Get(ctx, append([]byte{prefixName}, getTokenKey([]byte(name))...)) == nil
 }
@@ -304,33 +301,27 @@ func extractCnametgt(ctx storage.Context, name, domain string) string {
 	return fragments[0] + "." + globalDomain
 }
 
-// checkParentExists panics if any domain from fragments doesn't exist or is expired.
-func checkParentExists(ctx storage.Context, fragments []string) {
-	if dom := parentExpired(ctx, fragments); dom != "" {
-		panic("domain does not exist or is expired: " + dom)
-	}
-}
-
-// parentExpired returns domain from fragments that doesn't exist or is expired.
-// first denotes the deepest subdomain to check.
-func parentExpired(ctx storage.Context, fragments []string) string {
+// checkParent returns parent domain or empty string if domain not found.
+func checkParent(ctx storage.Context, fragments []string) string {
 	now := int64(runtime.GetTime())
 	last := len(fragments) - 1
 	name := fragments[last]
+	parent := ""
 	for i := last; i > 0; i-- {
 		if i != last {
 			name = fragments[i] + "." + name
 		}
 		nsBytes := storage.Get(ctx, append([]byte{prefixName}, getTokenKey([]byte(name))...))
 		if nsBytes == nil {
-			return name
+			continue
 		}
 		ns := std.Deserialize(nsBytes.([]byte)).(NameState)
 		if now >= ns.Expiration {
-			return name
+			panic("domain expired: " + name)
 		}
+		parent = name
 	}
-	return ""
+	return parent
 }
 
 // Register registers a new domain with the specified owner and name if it's available.
@@ -353,13 +344,17 @@ func register(ctx storage.Context, name string, owner interop.Hash160, email str
 		}
 		storage.Put(ctx, tldKey, 0)
 	} else {
-		if tldBytes == nil {
-			panic("TLD not found")
+		parent := checkParent(ctx, fragments)
+		if parent == "" {
+			parent = fragments[len(fragments)-1]
+			register(ctx, parent, owner, email, refresh, retry, expire, ttl)
 		}
-		checkParentExists(ctx, fragments)
 
-		parentKey := getTokenKey([]byte(name[len(fragments[0])+1:]))
+		parentKey := getTokenKey([]byte(parent))
 		nsBytes := storage.Get(ctx, append([]byte{prefixName}, parentKey...))
+		if nsBytes == nil {
+			panic("parent does not exist:" + parent)
+		}
 		ns := std.Deserialize(nsBytes.([]byte)).(NameState)
 		ns.checkAdmin()
 
@@ -681,7 +676,7 @@ func getNameState(ctx storage.Context, tokenID []byte) NameState {
 	tokenKey := getTokenKey(tokenID)
 	ns := getNameStateWithKey(ctx, tokenKey)
 	fragments := std.StringSplit(string(tokenID), ".")
-	checkParentExists(ctx, fragments)
+	checkParent(ctx, fragments)
 	return ns
 }
 
diff --git a/tests/nns_test.go b/tests/nns_test.go
index 3e2dcf6..e3e6072 100644
--- a/tests/nns_test.go
+++ b/tests/nns_test.go
@@ -266,6 +266,18 @@ func TestDeleteDomain(t *testing.T) {
 	c2.Invoke(t, true, "register",
 		"cn", acc2.ScriptHash(),
 		"myemail@frostfs.info", defaultRefresh, defaultRetry, defaultExpire, defaultTTL)
+
+	c1.Invoke(t, true, "register",
+		"gu.bububu.bubu.bu", c.CommitteeHash,
+		"myemail@frostfs.info", defaultRefresh, defaultRetry, defaultExpire, defaultTTL)
+
+	c1.Invoke(t, true, "register",
+		"buu.gu.bububu.bubu.bu", c.CommitteeHash,
+		"myemail@frostfs.info", defaultRefresh, defaultRetry, defaultExpire, defaultTTL)
+
+	c1.Invoke(t, true, "register",
+		"bubu.bu", c.CommitteeHash,
+		"myemail@frostfs.info", defaultRefresh, defaultRetry, defaultExpire, defaultTTL)
 }
 
 func TestGlobalDomain(t *testing.T) {
@@ -335,11 +347,6 @@ func TestNNSRegisterMulti(t *testing.T) {
 	cBoth.Invoke(t, true, "register", args...)
 
 	c1 := c.WithSigners(acc)
-	t.Run("parent domain is missing", func(t *testing.T) {
-		msg := "domain does not exist or is expired: fs.neo.com"
-		args[0] = "testnet.fs.neo.com"
-		c1.InvokeFail(t, msg, "register", args...)
-	})
 
 	args[0] = "fs.neo.com"
 	c1.Invoke(t, true, "register", args...)
@@ -499,7 +506,6 @@ func TestNNSIsAvailable(t *testing.T) {
 	c := newNNSInvoker(t, false)
 
 	c.Invoke(t, true, "isAvailable", "com")
-	c.InvokeFail(t, "TLD not found", "isAvailable", "domain.com")
 
 	refresh, retry, expire, ttl := int64(101), int64(102), int64(103), int64(104)
 	c.Invoke(t, true, "register",
@@ -512,7 +518,6 @@ func TestNNSIsAvailable(t *testing.T) {
 	acc := c.NewAccount(t)
 	c1 := c.WithSigners(c.Committee, acc)
 
-	c1.InvokeFail(t, "domain does not exist or is expired: domain.com", "isAvailable", "dom.domain.com")
 	c1.Invoke(t, true, "register",
 		"domain.com", acc.ScriptHash(),
 		"myemail@frostfs.info", refresh, retry, expire, ttl)
@@ -524,7 +529,6 @@ func TestNNSIsAvailable(t *testing.T) {
 	c.Invoke(t, false, "isAvailable", "domain.com")
 
 	c.Invoke(t, true, "isAvailable", "dom.domain.com")
-	c.InvokeFail(t, "domain does not exist or is expired: dom.domain.com", "isAvailable", "dom.dom.domain.com")
 
 	c1.Invoke(t, true, "register",
 		"dom.domain.com", acc.ScriptHash(),