diff --git a/x/staking/keeper/msg_server_test.go b/x/staking/keeper/msg_server_test.go
index 545365ee5cff..501ecfb8264f 100644
--- a/x/staking/keeper/msg_server_test.go
+++ b/x/staking/keeper/msg_server_test.go
@@ -1221,3 +1221,131 @@ func TestICADelegateUndelegate(t *testing.T) {
 	require.True(t, found, "validator should have been found")
 	require.Equal(t, sdk.ZeroDec(), validator.LiquidShares, "validator liquid shares after undelegation")
 }
+
+func TestCancelUnbondingDelegation(t *testing.T) {
+	// setup the app
+	_, app, ctx := createTestInput()
+	msgServer := keeper.NewMsgServerImpl(app.StakingKeeper)
+	bondDenom := app.StakingKeeper.BondDenom(ctx)
+
+	// set the not bonded pool module account
+	notBondedPool := app.StakingKeeper.GetNotBondedPool(ctx)
+	startTokens := app.StakingKeeper.TokensFromConsensusPower(ctx, 5)
+	startCoin := sdk.NewCoins(sdk.NewCoin(app.StakingKeeper.BondDenom(ctx), startTokens))
+
+	require.NoError(t, simapp.FundModuleAccount(app.BankKeeper, ctx, notBondedPool.GetName(), startCoin))
+	app.AccountKeeper.SetModuleAccount(ctx, notBondedPool)
+
+	moduleBalance := app.BankKeeper.GetBalance(ctx, notBondedPool.GetAddress(), app.StakingKeeper.BondDenom(ctx))
+	require.Equal(t, sdk.NewInt64Coin(bondDenom, startTokens.Int64()), moduleBalance)
+
+	// create a  validator
+	validatorPubKey := simapp.CreateTestPubKeys(1)[0]
+	validatorAddr := sdk.ValAddress(validatorPubKey.Address())
+
+	validator := teststaking.NewValidator(t, validatorAddr, validatorPubKey)
+	validator.Tokens = startTokens
+	validator.DelegatorShares = sdk.NewDecFromInt(startTokens)
+	validator.Status = types.Bonded
+	app.StakingKeeper.SetValidator(ctx, validator)
+
+	// create a delegator
+	delAddrs := simapp.AddTestAddrsIncremental(app, ctx, 2, sdk.NewInt(10000))
+	delegatorAddr := delAddrs[0]
+
+	// setting the ubd entry
+	unbondingAmount := sdk.NewInt64Coin(app.StakingKeeper.BondDenom(ctx), 5)
+	ubd := types.NewUnbondingDelegation(
+		delegatorAddr, validatorAddr, 10,
+		ctx.BlockTime().Add(time.Minute*10),
+		unbondingAmount.Amount,
+		1,
+	)
+
+	// set and retrieve a record
+	app.StakingKeeper.SetUnbondingDelegation(ctx, ubd)
+	resUnbond, found := app.StakingKeeper.GetUnbondingDelegation(ctx, delegatorAddr, validatorAddr)
+	require.True(t, found)
+	require.Equal(t, ubd, resUnbond)
+
+	testCases := []struct {
+		Name      string
+		ExceptErr bool
+		req       types.MsgCancelUnbondingDelegation
+	}{
+		{
+			Name:      "invalid height",
+			ExceptErr: true,
+			req: types.MsgCancelUnbondingDelegation{
+				DelegatorAddress: resUnbond.DelegatorAddress,
+				ValidatorAddress: resUnbond.ValidatorAddress,
+				Amount:           sdk.NewCoin(app.StakingKeeper.BondDenom(ctx), sdk.NewInt(4)),
+				CreationHeight:   0,
+			},
+		},
+		{
+			Name:      "validator not exists",
+			ExceptErr: true,
+			req: types.MsgCancelUnbondingDelegation{
+				DelegatorAddress: resUnbond.DelegatorAddress,
+				ValidatorAddress: sdk.ValAddress(sdk.AccAddress("asdsad")).String(),
+				Amount:           unbondingAmount,
+				CreationHeight:   0,
+			},
+		},
+		{
+			Name:      "invalid delegator address",
+			ExceptErr: true,
+			req: types.MsgCancelUnbondingDelegation{
+				DelegatorAddress: "invalid_delegator_addrtess",
+				ValidatorAddress: resUnbond.ValidatorAddress,
+				Amount:           unbondingAmount,
+				CreationHeight:   0,
+			},
+		},
+		{
+			Name:      "invalid amount",
+			ExceptErr: true,
+			req: types.MsgCancelUnbondingDelegation{
+				DelegatorAddress: resUnbond.DelegatorAddress,
+				ValidatorAddress: resUnbond.ValidatorAddress,
+				Amount:           unbondingAmount.Add(sdk.NewInt64Coin(bondDenom, 10)),
+				CreationHeight:   10,
+			},
+		},
+		{
+			Name:      "success",
+			ExceptErr: false,
+			req: types.MsgCancelUnbondingDelegation{
+				DelegatorAddress: resUnbond.DelegatorAddress,
+				ValidatorAddress: resUnbond.ValidatorAddress,
+				Amount:           unbondingAmount.Sub(sdk.NewInt64Coin(bondDenom, 1)),
+				CreationHeight:   10,
+			},
+		},
+		{
+			Name:      "success",
+			ExceptErr: false,
+			req: types.MsgCancelUnbondingDelegation{
+				DelegatorAddress: resUnbond.DelegatorAddress,
+				ValidatorAddress: resUnbond.ValidatorAddress,
+				Amount:           unbondingAmount.Sub(unbondingAmount.Sub(sdk.NewInt64Coin(bondDenom, 1))),
+				CreationHeight:   10,
+			},
+		},
+	}
+
+	for _, testCase := range testCases {
+		t.Run(testCase.Name, func(t *testing.T) {
+			_, err := msgServer.CancelUnbondingDelegation(sdk.WrapSDKContext(ctx), &testCase.req)
+			if testCase.ExceptErr {
+				require.Error(t, err)
+			} else {
+				require.NoError(t, err)
+				balanceForNotBondedPool := app.BankKeeper.GetBalance(ctx, sdk.AccAddress(notBondedPool.GetAddress()), bondDenom)
+				require.Equal(t, balanceForNotBondedPool, moduleBalance.Sub(testCase.req.Amount))
+				moduleBalance = moduleBalance.Sub(testCase.req.Amount)
+			}
+		})
+	}
+}