diff --git a/client/x/evmstaking/keeper/unjail_test.go b/client/x/evmstaking/keeper/unjail_test.go
new file mode 100644
index 00000000..e8f01c24
--- /dev/null
+++ b/client/x/evmstaking/keeper/unjail_test.go
@@ -0,0 +1,109 @@
+package keeper_test
+
+import (
+	"context"
+
+	slashingtypes "github.com/cosmos/cosmos-sdk/x/slashing/types"
+	"github.com/ethereum/go-ethereum/common"
+	gethtypes "github.com/ethereum/go-ethereum/core/types"
+
+	"github.com/piplabs/story/client/x/evmstaking/types"
+	"github.com/piplabs/story/contracts/bindings"
+)
+
+func (s *TestSuite) TestProcessUnjail() {
+	require := s.Require()
+	ctx, slashingKeeper, keeper := s.Ctx, s.SlashingKeeper, s.EVMStakingKeeper
+	pubKeys, _, valAddrs := createAddresses(1)
+	valAddr := valAddrs[0]
+	valPubKey := pubKeys[0]
+
+	tcs := []struct {
+		name        string
+		setupMock   func(c context.Context)
+		unjailEv    *bindings.IPTokenSlashingUnjail
+		expectedErr string
+	}{
+		{
+			name: "pass: valid unjail event",
+			setupMock: func(c context.Context) {
+				slashingKeeper.EXPECT().Unjail(c, valAddr).Return(nil)
+			},
+			unjailEv: &bindings.IPTokenSlashingUnjail{
+				ValidatorCmpPubkey: valPubKey.Bytes(),
+			},
+		},
+		{
+			name: "fail: invalid validator pubkey",
+			unjailEv: &bindings.IPTokenSlashingUnjail{
+				ValidatorCmpPubkey: valPubKey.Bytes()[10:],
+			},
+			expectedErr: "validator pubkey to cosmos: invalid pubkey length",
+		},
+		{
+			name: "fail: validator not jailed",
+			setupMock: func(c context.Context) {
+				// MOCK Unjail to return error.
+				slashingKeeper.EXPECT().Unjail(c, valAddr).Return(slashingtypes.ErrValidatorNotJailed)
+			},
+			unjailEv: &bindings.IPTokenSlashingUnjail{
+				ValidatorCmpPubkey: valPubKey.Bytes(),
+			},
+			expectedErr: slashingtypes.ErrValidatorNotJailed.Error(),
+		},
+	}
+
+	for _, tc := range tcs {
+		s.Run(tc.name, func() {
+			cachedCtx, _ := ctx.CacheContext()
+			if tc.setupMock != nil {
+				tc.setupMock(cachedCtx)
+			}
+			err := keeper.ProcessUnjail(cachedCtx, tc.unjailEv)
+			if tc.expectedErr != "" {
+				require.ErrorContains(err, tc.expectedErr)
+			} else {
+				require.NoError(err)
+			}
+		})
+	}
+}
+
+func (s *TestSuite) TestParseUnjailLog() {
+	require := s.Require()
+	keeper := s.EVMStakingKeeper
+
+	dummyEthAddr := common.HexToAddress("0x1")
+
+	tcs := []struct {
+		name      string
+		log       gethtypes.Log
+		expectErr bool
+	}{
+		{
+			name: "Unknown Topic",
+			log: gethtypes.Log{
+				Topics: []common.Hash{common.HexToHash("0x1111111111111111111111111111111111111111111111111111111111111111")},
+			},
+			expectErr: true,
+		},
+		{
+			name: "Valid Topic",
+			log: gethtypes.Log{
+				Topics: []common.Hash{types.UnjailEvent.ID, common.BytesToHash(dummyEthAddr.Bytes())},
+			},
+			expectErr: false,
+		},
+	}
+
+	for _, tc := range tcs {
+		s.Run(tc.name, func() {
+			_, err := keeper.ParseUnjailLog(tc.log)
+			if tc.expectErr {
+				require.Error(err, "should return error for %s", tc.name)
+			} else {
+				require.NoError(err, "should not return error for %s", tc.name)
+			}
+		})
+	}
+}