diff --git a/block/manager.go b/block/manager.go
index dd1994bd2..978632ce0 100644
--- a/block/manager.go
+++ b/block/manager.go
@@ -173,6 +173,9 @@ func (m *Manager) Start(ctx context.Context) error {
 		return m.PruningLoop(ctx)
 	})
 
+	// listen to new bonded sequencers events to add them in the sequencer set
+	go uevent.MustSubscribe(ctx, m.Pubsub, "newBondedSequencer", settlement.EventQueryNewBondedSequencer, m.UpdateSequencerSet, m.logger)
+
 	/* ----------------------------- full node mode ----------------------------- */
 	if !isProposer {
 		// Full-nodes can sync from DA but it is not necessary to wait for it, since it can sync from P2P as well in parallel.
diff --git a/block/sequencers.go b/block/sequencers.go
index 4c98c4f3b..6c72d4d22 100644
--- a/block/sequencers.go
+++ b/block/sequencers.go
@@ -8,6 +8,7 @@ import (
 
 	"github.com/dymensionxyz/dymint/settlement"
 	"github.com/dymensionxyz/dymint/types"
+	"github.com/tendermint/tendermint/libs/pubsub"
 )
 
 func (m *Manager) MonitorSequencerRotation(ctx context.Context, rotateC chan string) error {
@@ -179,3 +180,26 @@ func (m *Manager) UpdateProposer() error {
 	m.State.Sequencers.SetProposer(m.SLClient.GetProposer())
 	return nil
 }
+
+// UpdateLastSubmittedHeight will update last height submitted height upon events.
+// This may be necessary in case we crashed/restarted before getting response for our submission to the settlement layer.
+func (m *Manager) UpdateSequencerSet(event pubsub.Message) {
+	eventData, ok := event.Data().(*settlement.EventDataNewBondedSequencer)
+	if !ok {
+		m.logger.Error("onReceivedBatch", "err", "wrong event data received")
+		return
+	}
+
+	if m.State.Sequencers.GetByAddress(eventData.SeqAddr) != nil {
+		m.logger.Debug("Sequencer not added from new bonded sequencer event because already in the list.")
+		return
+	}
+
+	newSequencer, err := m.SLClient.GetSequencerByAddress(eventData.SeqAddr)
+	if err != nil {
+		m.logger.Error("Unable to add new sequencer from event. err:%w", err)
+		return
+	}
+	sequencers := append(m.State.Sequencers.Sequencers, newSequencer)
+	m.State.Sequencers.SetSequencers(sequencers)
+}
diff --git a/mocks/github.com/dymensionxyz/dymint/da/avail/mock_SubstrateApiI.go b/mocks/github.com/dymensionxyz/dymint/da/avail/mock_SubstrateApiI.go
index bba31b087..6a52c1df8 100644
--- a/mocks/github.com/dymensionxyz/dymint/da/avail/mock_SubstrateApiI.go
+++ b/mocks/github.com/dymensionxyz/dymint/da/avail/mock_SubstrateApiI.go
@@ -1,4 +1,4 @@
-// Code generated by mockery v2.46.0. DO NOT EDIT.
+// Code generated by mockery v2.42.3. DO NOT EDIT.
 
 package avail
 
diff --git a/mocks/github.com/dymensionxyz/dymint/da/celestia/types/mock_CelestiaRPCClient.go b/mocks/github.com/dymensionxyz/dymint/da/celestia/types/mock_CelestiaRPCClient.go
index 5994cf817..4935cc66a 100644
--- a/mocks/github.com/dymensionxyz/dymint/da/celestia/types/mock_CelestiaRPCClient.go
+++ b/mocks/github.com/dymensionxyz/dymint/da/celestia/types/mock_CelestiaRPCClient.go
@@ -1,4 +1,4 @@
-// Code generated by mockery v2.46.0. DO NOT EDIT.
+// Code generated by mockery v2.42.3. DO NOT EDIT.
 
 package types
 
diff --git a/mocks/github.com/dymensionxyz/dymint/da/mock_DataAvailabilityLayerClient.go b/mocks/github.com/dymensionxyz/dymint/da/mock_DataAvailabilityLayerClient.go
index 1480d557c..75727dd5e 100644
--- a/mocks/github.com/dymensionxyz/dymint/da/mock_DataAvailabilityLayerClient.go
+++ b/mocks/github.com/dymensionxyz/dymint/da/mock_DataAvailabilityLayerClient.go
@@ -1,4 +1,4 @@
-// Code generated by mockery v2.46.0. DO NOT EDIT.
+// Code generated by mockery v2.42.3. DO NOT EDIT.
 
 package da
 
diff --git a/mocks/github.com/dymensionxyz/dymint/settlement/dymension/mock_CosmosClient.go b/mocks/github.com/dymensionxyz/dymint/settlement/dymension/mock_CosmosClient.go
index bebd10ade..4b14a3eaf 100644
--- a/mocks/github.com/dymensionxyz/dymint/settlement/dymension/mock_CosmosClient.go
+++ b/mocks/github.com/dymensionxyz/dymint/settlement/dymension/mock_CosmosClient.go
@@ -1,4 +1,4 @@
-// Code generated by mockery v2.46.0. DO NOT EDIT.
+// Code generated by mockery v2.42.3. DO NOT EDIT.
 
 package dymension
 
diff --git a/mocks/github.com/dymensionxyz/dymint/settlement/mock_ClientI.go b/mocks/github.com/dymensionxyz/dymint/settlement/mock_ClientI.go
index e71cc9d27..784febab1 100644
--- a/mocks/github.com/dymensionxyz/dymint/settlement/mock_ClientI.go
+++ b/mocks/github.com/dymensionxyz/dymint/settlement/mock_ClientI.go
@@ -1,4 +1,4 @@
-// Code generated by mockery v2.46.0. DO NOT EDIT.
+// Code generated by mockery v2.42.3. DO NOT EDIT.
 
 package settlement
 
@@ -417,6 +417,62 @@ func (_c *MockClientI_GetProposer_Call) RunAndReturn(run func() *types.Sequencer
 	return _c
 }
 
+// GetSequencerByAddress provides a mock function with given fields: address
+func (_m *MockClientI) GetSequencerByAddress(address string) (types.Sequencer, error) {
+	ret := _m.Called(address)
+
+	if len(ret) == 0 {
+		panic("no return value specified for GetSequencerByAddress")
+	}
+
+	var r0 types.Sequencer
+	var r1 error
+	if rf, ok := ret.Get(0).(func(string) (types.Sequencer, error)); ok {
+		return rf(address)
+	}
+	if rf, ok := ret.Get(0).(func(string) types.Sequencer); ok {
+		r0 = rf(address)
+	} else {
+		r0 = ret.Get(0).(types.Sequencer)
+	}
+
+	if rf, ok := ret.Get(1).(func(string) error); ok {
+		r1 = rf(address)
+	} else {
+		r1 = ret.Error(1)
+	}
+
+	return r0, r1
+}
+
+// MockClientI_GetSequencerByAddress_Call is a *mock.Call that shadows Run/Return methods with type explicit version for method 'GetSequencerByAddress'
+type MockClientI_GetSequencerByAddress_Call struct {
+	*mock.Call
+}
+
+// GetSequencerByAddress is a helper method to define mock.On call
+//   - address string
+func (_e *MockClientI_Expecter) GetSequencerByAddress(address interface{}) *MockClientI_GetSequencerByAddress_Call {
+	return &MockClientI_GetSequencerByAddress_Call{Call: _e.mock.On("GetSequencerByAddress", address)}
+}
+
+func (_c *MockClientI_GetSequencerByAddress_Call) Run(run func(address string)) *MockClientI_GetSequencerByAddress_Call {
+	_c.Call.Run(func(args mock.Arguments) {
+		run(args[0].(string))
+	})
+	return _c
+}
+
+func (_c *MockClientI_GetSequencerByAddress_Call) Return(_a0 types.Sequencer, _a1 error) *MockClientI_GetSequencerByAddress_Call {
+	_c.Call.Return(_a0, _a1)
+	return _c
+}
+
+func (_c *MockClientI_GetSequencerByAddress_Call) RunAndReturn(run func(string) (types.Sequencer, error)) *MockClientI_GetSequencerByAddress_Call {
+	_c.Call.Return(run)
+	return _c
+}
+
 // Init provides a mock function with given fields: config, rollappId, _a2, logger, options
 func (_m *MockClientI) Init(config settlement.Config, rollappId string, _a2 *pubsub.Server, logger types.Logger, options ...settlement.Option) error {
 	_va := make([]interface{}, len(options))
diff --git a/mocks/github.com/dymensionxyz/dymint/store/mock_Store.go b/mocks/github.com/dymensionxyz/dymint/store/mock_Store.go
index 3a1678d0a..010d1c41c 100644
--- a/mocks/github.com/dymensionxyz/dymint/store/mock_Store.go
+++ b/mocks/github.com/dymensionxyz/dymint/store/mock_Store.go
@@ -1,4 +1,4 @@
-// Code generated by mockery v2.46.0. DO NOT EDIT.
+// Code generated by mockery v2.42.3. DO NOT EDIT.
 
 package store
 
@@ -579,27 +579,27 @@ func (_c *MockStore_NewBatch_Call) RunAndReturn(run func() store.KVBatch) *MockS
 	return _c
 }
 
-// PruneBlocks provides a mock function with given fields: from, to
-func (_m *MockStore) PruneBlocks(from uint64, to uint64) (uint64, error) {
-	ret := _m.Called(from, to)
+// PruneStore provides a mock function with given fields: from, to, logger
+func (_m *MockStore) PruneStore(from uint64, to uint64, logger types.Logger) (uint64, error) {
+	ret := _m.Called(from, to, logger)
 
 	if len(ret) == 0 {
-		panic("no return value specified for PruneBlocks")
+		panic("no return value specified for PruneStore")
 	}
 
 	var r0 uint64
 	var r1 error
-	if rf, ok := ret.Get(0).(func(uint64, uint64) (uint64, error)); ok {
-		return rf(from, to)
+	if rf, ok := ret.Get(0).(func(uint64, uint64, types.Logger) (uint64, error)); ok {
+		return rf(from, to, logger)
 	}
-	if rf, ok := ret.Get(0).(func(uint64, uint64) uint64); ok {
-		r0 = rf(from, to)
+	if rf, ok := ret.Get(0).(func(uint64, uint64, types.Logger) uint64); ok {
+		r0 = rf(from, to, logger)
 	} else {
 		r0 = ret.Get(0).(uint64)
 	}
 
-	if rf, ok := ret.Get(1).(func(uint64, uint64) error); ok {
-		r1 = rf(from, to)
+	if rf, ok := ret.Get(1).(func(uint64, uint64, types.Logger) error); ok {
+		r1 = rf(from, to, logger)
 	} else {
 		r1 = ret.Error(1)
 	}
@@ -607,31 +607,32 @@ func (_m *MockStore) PruneBlocks(from uint64, to uint64) (uint64, error) {
 	return r0, r1
 }
 
-// MockStore_PruneBlocks_Call is a *mock.Call that shadows Run/Return methods with type explicit version for method 'PruneBlocks'
-type MockStore_PruneBlocks_Call struct {
+// MockStore_PruneStore_Call is a *mock.Call that shadows Run/Return methods with type explicit version for method 'PruneStore'
+type MockStore_PruneStore_Call struct {
 	*mock.Call
 }
 
-// PruneBlocks is a helper method to define mock.On call
+// PruneStore is a helper method to define mock.On call
 //   - from uint64
 //   - to uint64
-func (_e *MockStore_Expecter) PruneBlocks(from interface{}, to interface{}) *MockStore_PruneBlocks_Call {
-	return &MockStore_PruneBlocks_Call{Call: _e.mock.On("PruneBlocks", from, to)}
+//   - logger types.Logger
+func (_e *MockStore_Expecter) PruneStore(from interface{}, to interface{}, logger interface{}) *MockStore_PruneStore_Call {
+	return &MockStore_PruneStore_Call{Call: _e.mock.On("PruneStore", from, to, logger)}
 }
 
-func (_c *MockStore_PruneBlocks_Call) Run(run func(from uint64, to uint64)) *MockStore_PruneBlocks_Call {
+func (_c *MockStore_PruneStore_Call) Run(run func(from uint64, to uint64, logger types.Logger)) *MockStore_PruneStore_Call {
 	_c.Call.Run(func(args mock.Arguments) {
-		run(args[0].(uint64), args[1].(uint64))
+		run(args[0].(uint64), args[1].(uint64), args[2].(types.Logger))
 	})
 	return _c
 }
 
-func (_c *MockStore_PruneBlocks_Call) Return(_a0 uint64, _a1 error) *MockStore_PruneBlocks_Call {
+func (_c *MockStore_PruneStore_Call) Return(_a0 uint64, _a1 error) *MockStore_PruneStore_Call {
 	_c.Call.Return(_a0, _a1)
 	return _c
 }
 
-func (_c *MockStore_PruneBlocks_Call) RunAndReturn(run func(uint64, uint64) (uint64, error)) *MockStore_PruneBlocks_Call {
+func (_c *MockStore_PruneStore_Call) RunAndReturn(run func(uint64, uint64, types.Logger) (uint64, error)) *MockStore_PruneStore_Call {
 	_c.Call.Return(run)
 	return _c
 }
diff --git a/mocks/github.com/dymensionxyz/dymint/third_party/dymension/sequencer/types/mock_QueryClient.go b/mocks/github.com/dymensionxyz/dymint/third_party/dymension/sequencer/types/mock_QueryClient.go
index 6b16285aa..fed52c6c5 100644
--- a/mocks/github.com/dymensionxyz/dymint/third_party/dymension/sequencer/types/mock_QueryClient.go
+++ b/mocks/github.com/dymensionxyz/dymint/third_party/dymension/sequencer/types/mock_QueryClient.go
@@ -1,4 +1,4 @@
-// Code generated by mockery v2.46.0. DO NOT EDIT.
+// Code generated by mockery v2.42.3. DO NOT EDIT.
 
 package types
 
diff --git a/mocks/github.com/dymensionxyz/dymint/types/pb/dymensionxyz/dymension/rollapp/mock_QueryClient.go b/mocks/github.com/dymensionxyz/dymint/types/pb/dymensionxyz/dymension/rollapp/mock_QueryClient.go
index f182218a5..83c174f72 100644
--- a/mocks/github.com/dymensionxyz/dymint/types/pb/dymensionxyz/dymension/rollapp/mock_QueryClient.go
+++ b/mocks/github.com/dymensionxyz/dymint/types/pb/dymensionxyz/dymension/rollapp/mock_QueryClient.go
@@ -1,4 +1,4 @@
-// Code generated by mockery v2.46.0. DO NOT EDIT.
+// Code generated by mockery v2.42.3. DO NOT EDIT.
 
 package rollapp
 
diff --git a/mocks/github.com/tendermint/tendermint/abci/types/mock_Application.go b/mocks/github.com/tendermint/tendermint/abci/types/mock_Application.go
index 45011bdc9..7393ef94e 100644
--- a/mocks/github.com/tendermint/tendermint/abci/types/mock_Application.go
+++ b/mocks/github.com/tendermint/tendermint/abci/types/mock_Application.go
@@ -1,4 +1,4 @@
-// Code generated by mockery v2.46.0. DO NOT EDIT.
+// Code generated by mockery v2.42.3. DO NOT EDIT.
 
 package types
 
diff --git a/mocks/github.com/tendermint/tendermint/proxy/mock_AppConnConsensus.go b/mocks/github.com/tendermint/tendermint/proxy/mock_AppConnConsensus.go
index 9a28054e1..9ec6b2d18 100644
--- a/mocks/github.com/tendermint/tendermint/proxy/mock_AppConnConsensus.go
+++ b/mocks/github.com/tendermint/tendermint/proxy/mock_AppConnConsensus.go
@@ -1,4 +1,4 @@
-// Code generated by mockery v2.46.0. DO NOT EDIT.
+// Code generated by mockery v2.42.3. DO NOT EDIT.
 
 package proxy
 
diff --git a/mocks/github.com/tendermint/tendermint/proxy/mock_AppConns.go b/mocks/github.com/tendermint/tendermint/proxy/mock_AppConns.go
index 120c2f698..affc90a4e 100644
--- a/mocks/github.com/tendermint/tendermint/proxy/mock_AppConns.go
+++ b/mocks/github.com/tendermint/tendermint/proxy/mock_AppConns.go
@@ -1,4 +1,4 @@
-// Code generated by mockery v2.46.0. DO NOT EDIT.
+// Code generated by mockery v2.42.3. DO NOT EDIT.
 
 package proxy
 
diff --git a/settlement/dymension/dymension.go b/settlement/dymension/dymension.go
index f1987c9c0..b0ab5c2dd 100644
--- a/settlement/dymension/dymension.go
+++ b/settlement/dymension/dymension.go
@@ -318,6 +318,45 @@ func (c *Client) GetProposer() *types.Sequencer {
 	return &seqs[index]
 }
 
+// GetSequencerByAddress returns a sequencer by its address.
+func (c *Client) GetSequencerByAddress(address string) (types.Sequencer, error) {
+	var res *sequencertypes.QueryGetSequencerResponse
+	req := &sequencertypes.QueryGetSequencerRequest{
+		SequencerAddress: address,
+	}
+
+	err := c.RunWithRetry(func() error {
+		var err error
+		res, err = c.sequencerQueryClient.Sequencer(c.ctx, req)
+		if err == nil {
+			return nil
+		}
+
+		if status.Code(err) == codes.NotFound {
+			return retry.Unrecoverable(errors.Join(gerrc.ErrNotFound, err))
+		}
+		return err
+	})
+	if err != nil {
+		return types.Sequencer{}, err
+	}
+
+	var pubKey cryptotypes.PubKey
+	err = c.protoCodec.UnpackAny(res.Sequencer.DymintPubKey, &pubKey)
+	if err != nil {
+		return types.Sequencer{}, err
+	}
+
+	tmPubKey, err := cryptocodec.ToTmPubKeyInterface(pubKey)
+	if err != nil {
+		return types.Sequencer{}, err
+	}
+
+	sequencer := *types.NewSequencer(tmPubKey, res.Sequencer.Address)
+
+	return sequencer, nil
+}
+
 // GetAllSequencers returns all sequencers of the given rollapp.
 func (c *Client) GetAllSequencers() ([]types.Sequencer, error) {
 	var res *sequencertypes.QueryGetSequencersByRollappResponse
diff --git a/settlement/grpc/grpc.go b/settlement/grpc/grpc.go
index 67c62e0d3..a4889d80a 100644
--- a/settlement/grpc/grpc.go
+++ b/settlement/grpc/grpc.go
@@ -228,6 +228,11 @@ func (c *Client) GetProposer() *types.Sequencer {
 	return types.NewSequencer(tmPubKey, pubKey.Address().String())
 }
 
+// GetSequencerByAddress returns all sequencer information by its address. Not implemented since it will not be used in grpc SL
+func (c *Client) GetSequencerByAddress(address string) (types.Sequencer, error) {
+	panic("GetSequencerByAddress not implemented in grpc SL")
+}
+
 // GetAllSequencers implements settlement.ClientI.
 func (c *Client) GetAllSequencers() ([]types.Sequencer, error) {
 	return c.GetBondedSequencers()
diff --git a/settlement/local/local.go b/settlement/local/local.go
index b085a567b..579ddfb0f 100644
--- a/settlement/local/local.go
+++ b/settlement/local/local.go
@@ -206,6 +206,11 @@ func (c *Client) GetProposer() *types.Sequencer {
 	return types.NewSequencer(tmPubKey, pubKey.Address().String())
 }
 
+// GetSequencerByAddress returns all sequencer information by its address. Not implemented since it will not be used in mock SL
+func (c *Client) GetSequencerByAddress(address string) (types.Sequencer, error) {
+	panic("GetSequencerByAddress not implemented in local SL")
+}
+
 // GetAllSequencers implements settlement.ClientI.
 func (c *Client) GetAllSequencers() ([]types.Sequencer, error) {
 	return c.GetBondedSequencers()
diff --git a/settlement/settlement.go b/settlement/settlement.go
index 91dea7fdb..66b78e604 100644
--- a/settlement/settlement.go
+++ b/settlement/settlement.go
@@ -73,7 +73,8 @@ type ClientI interface {
 	GetLatestBatch() (*ResultRetrieveBatch, error)
 	// GetBatchAtIndex returns the batch at the given index.
 	GetBatchAtIndex(index uint64) (*ResultRetrieveBatch, error)
-
+	// GetSequencerByAddress returns all sequencer information by its address.
+	GetSequencerByAddress(address string) (types.Sequencer, error)
 	// GetAllSequencers returns all sequencers for this rollapp (bonded and not bonded).
 	GetAllSequencers() ([]types.Sequencer, error)
 	// GetBondedSequencers returns the list of the bonded sequencers for this rollapp.