diff --git a/.golangci.yml b/.golangci.yml
index 56f4fbcf3c9..4e07742d050 100644
--- a/.golangci.yml
+++ b/.golangci.yml
@@ -63,4 +63,4 @@ linters-settings:
   revive:
     rules:
       - name: if-return
-        disabled: true
\ No newline at end of file
+        disabled: true
diff --git a/modules/core/04-channel/keeper/events.go b/modules/core/04-channel/keeper/events.go
index e790e4ae120..4ec0d324ee0 100644
--- a/modules/core/04-channel/keeper/events.go
+++ b/modules/core/04-channel/keeper/events.go
@@ -382,3 +382,24 @@ func emitErrorReceiptEvent(ctx sdk.Context, portID string, channelID string, cur
 		),
 	})
 }
+
+// emitChannelUpgradeCancelEvent emits an upgraded cancelled event.
+func emitChannelUpgradeCancelEvent(ctx sdk.Context, portID string, channelID string, currentChannel types.Channel, upgrade types.Upgrade) {
+	ctx.EventManager().EmitEvents(sdk.Events{
+		sdk.NewEvent(
+			types.EventTypeChannelUpgradeCancel,
+			sdk.NewAttribute(types.AttributeKeyPortID, portID),
+			sdk.NewAttribute(types.AttributeKeyChannelID, channelID),
+			sdk.NewAttribute(types.AttributeCounterpartyPortID, currentChannel.Counterparty.PortId),
+			sdk.NewAttribute(types.AttributeCounterpartyChannelID, currentChannel.Counterparty.ChannelId),
+			sdk.NewAttribute(types.AttributeKeyUpgradeConnectionHops, upgrade.Fields.ConnectionHops[0]),
+			sdk.NewAttribute(types.AttributeKeyUpgradeVersion, upgrade.Fields.Version),
+			sdk.NewAttribute(types.AttributeKeyUpgradeOrdering, upgrade.Fields.Ordering.String()),
+			sdk.NewAttribute(types.AttributeKeyUpgradeSequence, fmt.Sprintf("%d", currentChannel.UpgradeSequence)),
+		),
+		sdk.NewEvent(
+			sdk.EventTypeMessage,
+			sdk.NewAttribute(sdk.AttributeKeyModule, types.AttributeValueCategory),
+		),
+	})
+}
diff --git a/modules/core/04-channel/keeper/upgrade.go b/modules/core/04-channel/keeper/upgrade.go
index b0e38453443..fdc1d872c69 100644
--- a/modules/core/04-channel/keeper/upgrade.go
+++ b/modules/core/04-channel/keeper/upgrade.go
@@ -230,6 +230,26 @@ func (k Keeper) WriteUpgradeAckChannel(
 	emitChannelUpgradeAckEvent(ctx, portID, channelID, channel, proposedUpgrade)
 }
 
+// WriteUpgradeCancelChannel writes a channel which has canceled the upgrade process.Auxiliary upgrade state is
+// also deleted.
+func (k Keeper) WriteUpgradeCancelChannel(ctx sdk.Context, portID, channelID string) {
+	defer telemetry.IncrCounter(1, "ibc", "channel", "upgrade-cancel")
+
+	upgrade, found := k.GetUpgrade(ctx, portID, channelID)
+	if !found {
+		panic(fmt.Sprintf("could not find upgrade when updating channel state, channelID: %s, portID: %s", channelID, portID))
+	}
+
+	channel, found := k.GetChannel(ctx, portID, channelID)
+	if !found {
+		panic(fmt.Sprintf("could not find existing channel when updating channel state, channelID: %s, portID: %s", channelID, portID))
+	}
+
+	k.restoreChannel(ctx, portID, channelID, channel)
+
+	emitChannelUpgradeCancelEvent(ctx, portID, channelID, channel, upgrade)
+}
+
 // ChanUpgradeAck is called by a module to accept the ACKUPGRADE handshake step of the channel upgrade protocol.
 // This method should only be called by the IBC core msg server.
 // This method will verify that the counterparty has entered TRYUPGRADE
diff --git a/modules/core/04-channel/types/events.go b/modules/core/04-channel/types/events.go
index e47a8e4d2af..d82703c40f3 100644
--- a/modules/core/04-channel/types/events.go
+++ b/modules/core/04-channel/types/events.go
@@ -51,17 +51,18 @@ const (
 
 // IBC channel events vars
 var (
-	EventTypeChannelOpenInit     = "channel_open_init"
-	EventTypeChannelOpenTry      = "channel_open_try"
-	EventTypeChannelOpenAck      = "channel_open_ack"
-	EventTypeChannelOpenConfirm  = "channel_open_confirm"
-	EventTypeChannelCloseInit    = "channel_close_init"
-	EventTypeChannelCloseConfirm = "channel_close_confirm"
-	EventTypeChannelClosed       = "channel_close"
-	EventTypeChannelUpgradeInit  = "channel_upgrade_init"
-	EventTypeChannelUpgradeTry   = "channel_upgrade_try"
-	EventTypeChannelUpgradeAck   = "channel_upgrade_ack"
-	EventTypeChannelUpgradeOpen  = "channel_upgrade_open"
+	EventTypeChannelOpenInit      = "channel_open_init"
+	EventTypeChannelOpenTry       = "channel_open_try"
+	EventTypeChannelOpenAck       = "channel_open_ack"
+	EventTypeChannelOpenConfirm   = "channel_open_confirm"
+	EventTypeChannelCloseInit     = "channel_close_init"
+	EventTypeChannelCloseConfirm  = "channel_close_confirm"
+	EventTypeChannelClosed        = "channel_close"
+	EventTypeChannelUpgradeInit   = "channel_upgrade_init"
+	EventTypeChannelUpgradeTry    = "channel_upgrade_try"
+	EventTypeChannelUpgradeAck    = "channel_upgrade_ack"
+	EventTypeChannelUpgradeOpen   = "channel_upgrade_open"
+	EventTypeChannelUpgradeCancel = "channel_upgrade_cancelled"
 
 	AttributeValueCategory = fmt.Sprintf("%s_%s", ibcexported.ModuleName, SubModuleName)
 )