diff --git a/packages/agent/src/hooks/index.ts b/packages/agent/src/hooks/index.ts
index 0d2173b3..cae88a71 100644
--- a/packages/agent/src/hooks/index.ts
+++ b/packages/agent/src/hooks/index.ts
@@ -1,5 +1,5 @@
 export * from './useCredentialsForDisplay'
 export * from './useCredentialForDisplayById'
-export * from './useAcceptDidCommCredential'
-export * from './useAcceptDidCommPresentation'
+export * from './useDidCommCredentialActions'
+export * from './useDidCommPresentationActions'
 export * from './useInboxNotifications'
diff --git a/packages/agent/src/hooks/useAcceptDidCommCredential.ts b/packages/agent/src/hooks/useDidCommCredentialActions.ts
similarity index 68%
rename from packages/agent/src/hooks/useAcceptDidCommCredential.ts
rename to packages/agent/src/hooks/useDidCommCredentialActions.ts
index 632d9f3a..b5380d52 100644
--- a/packages/agent/src/hooks/useAcceptDidCommCredential.ts
+++ b/packages/agent/src/hooks/useDidCommCredentialActions.ts
@@ -36,13 +36,13 @@ function useOfferAttributes(credentialExchangeId: string) {
   }
 }
 
-export function useAcceptDidCommCredential(credentialExchangeId: string) {
+export function useDidCommCredentialActions(credentialExchangeId: string) {
   const { agent } = useAgent()
 
   const credentialExchange = useCredentialById(credentialExchangeId)
   const { data } = useOfferAttributes(credentialExchangeId)
 
-  const { mutateAsync, status } = useMutation({
+  const { mutateAsync: acceptCredentialMutation, status: acceptStatus } = useMutation({
     mutationKey: ['acceptDidCommCredential', credentialExchangeId],
     mutationFn: async () => {
       const credentialDone$ = agent.events
@@ -68,13 +68,41 @@ export function useAcceptDidCommCredential(credentialExchangeId: string) {
     },
   })
 
+  const { mutateAsync: declineCredentialMutation, status: declineStatus } = useMutation({
+    mutationKey: ['declineDidCommCredential', credentialExchangeId],
+    mutationFn: async () => {
+      const credentialDone$ = agent.events
+        .observable<CredentialStateChangedEvent>(CredentialEventTypes.CredentialStateChanged)
+        .pipe(
+          // Correct record with id and state
+          filter(
+            (event) =>
+              event.payload.credentialRecord.id === credentialExchangeId &&
+              event.payload.credentialRecord.state === CredentialState.Declined
+          ),
+          // 10 seconds to complete exchange
+          timeout(10000),
+          first()
+        )
+
+      const credentialDonePromise = firstValueFrom(credentialDone$)
+
+      await agent.credentials.declineOffer(credentialExchangeId, {
+        sendProblemReport: true,
+      })
+      await credentialDonePromise
+    },
+  })
+
   const didcommDisplayMetadata = credentialExchange
     ? getDidCommCredentialExchangeDisplayMetadata(credentialExchange)
     : undefined
 
   return {
-    acceptCredential: mutateAsync,
-    status,
+    acceptCredential: acceptCredentialMutation,
+    declineCredential: declineCredentialMutation,
+    acceptStatus,
+    declineStatus,
     credentialExchange,
     display: {
       issuer: {
diff --git a/packages/agent/src/hooks/useAcceptDidCommPresentation.ts b/packages/agent/src/hooks/useDidCommPresentationActions.ts
similarity index 85%
rename from packages/agent/src/hooks/useAcceptDidCommPresentation.ts
rename to packages/agent/src/hooks/useDidCommPresentationActions.ts
index 886213c5..e23bf8dd 100644
--- a/packages/agent/src/hooks/useAcceptDidCommPresentation.ts
+++ b/packages/agent/src/hooks/useDidCommPresentationActions.ts
@@ -16,7 +16,7 @@ import { filter, first, timeout } from 'rxjs/operators'
 import { useAgent } from '../agent'
 import { getDidCommCredentialExchangeDisplayMetadata } from '../didcomm/metadata'
 
-export function useAcceptDidCommPresentation(proofExchangeId: string) {
+export function useDidCommPresentationActions(proofExchangeId: string) {
   const { agent } = useAgent()
 
   const proofExchange = useProofById(proofExchangeId)
@@ -131,7 +131,7 @@ export function useAcceptDidCommPresentation(proofExchangeId: string) {
     },
   })
 
-  const { mutateAsync, status } = useMutation({
+  const { mutateAsync: acceptMutateAsync, status: acceptStatus } = useMutation({
     mutationKey: ['acceptDidCommPresentation', proofExchangeId],
     mutationFn: async () => {
       const presentationDone$ = agent.events
@@ -157,9 +157,34 @@ export function useAcceptDidCommPresentation(proofExchangeId: string) {
     },
   })
 
+  const { mutateAsync: declineMutateAsync, status: declineStatus } = useMutation({
+    mutationKey: ['declineDidCommPresentation', proofExchangeId],
+    mutationFn: async () => {
+      const presentationDeclined$ = agent.events
+        .observable<ProofStateChangedEvent>(ProofEventTypes.ProofStateChanged)
+        .pipe(
+          // Correct record with id and state
+          filter(
+            (event) =>
+              event.payload.proofRecord.id === proofExchangeId &&
+              [ProofState.Declined].includes(event.payload.proofRecord.state)
+          ),
+          // 10 seconds to complete exchange
+          timeout(10000),
+          first()
+        )
+
+      const presentationDeclinePromise = firstValueFrom(presentationDeclined$)
+      await agent.proofs.declineRequest({ proofRecordId: proofExchangeId, sendProblemReport: true })
+      await presentationDeclinePromise
+    },
+  })
+
   return {
-    acceptPresentation: mutateAsync,
-    status,
+    acceptPresentation: acceptMutateAsync,
+    declinePresentation: declineMutateAsync,
+    acceptStatus,
+    declineStatus,
     proofExchange,
     submission: data,
     verifierName: connection?.theirLabel,
diff --git a/packages/app/features/notifications/DidCommCredentialNotificationScreen.tsx b/packages/app/features/notifications/DidCommCredentialNotificationScreen.tsx
index a2724c89..f33f7fa8 100644
--- a/packages/app/features/notifications/DidCommCredentialNotificationScreen.tsx
+++ b/packages/app/features/notifications/DidCommCredentialNotificationScreen.tsx
@@ -1,4 +1,4 @@
-import { useAcceptDidCommCredential, useAgent } from '@internal/agent'
+import { useDidCommCredentialActions, useAgent } from '@internal/agent'
 import { useToastController } from '@internal/ui'
 import React from 'react'
 import { useRouter } from 'solito/router'
@@ -18,8 +18,14 @@ export function DidCommCredentialNotificationScreen({
   const router = useRouter()
   const toast = useToastController()
 
-  const { acceptCredential, status, credentialExchange, attributes, display } =
-    useAcceptDidCommCredential(credentialExchangeId)
+  const {
+    acceptCredential,
+    acceptStatus,
+    declineCredential,
+    credentialExchange,
+    attributes,
+    display,
+  } = useDidCommCredentialActions(credentialExchangeId)
 
   const pushToWallet = () => {
     router.back()
@@ -44,7 +50,9 @@ export function DidCommCredentialNotificationScreen({
   }
 
   const onCredentialDecline = () => {
-    void agent.credentials.deleteById(credentialExchange.id)
+    declineCredential().finally(() => {
+      void agent.credentials.deleteById(credentialExchange.id)
+    })
 
     toast.show('Credential has been declined.')
     pushToWallet()
@@ -59,7 +67,7 @@ export function DidCommCredentialNotificationScreen({
       }}
       onDecline={onCredentialDecline}
       // If state is not idle, it means we have pressed accept
-      isAccepting={status !== 'idle'}
+      isAccepting={acceptStatus !== 'idle'}
     />
   )
 }
diff --git a/packages/app/features/notifications/DidCommPresentationNotificationScreen.tsx b/packages/app/features/notifications/DidCommPresentationNotificationScreen.tsx
index 7ef87413..4a38846d 100644
--- a/packages/app/features/notifications/DidCommPresentationNotificationScreen.tsx
+++ b/packages/app/features/notifications/DidCommPresentationNotificationScreen.tsx
@@ -1,4 +1,4 @@
-import { useAcceptDidCommPresentation, useAgent } from '@internal/agent'
+import { useDidCommPresentationActions, useAgent } from '@internal/agent'
 import { useToastController } from '@internal/ui'
 import React from 'react'
 import { useRouter } from 'solito/router'
@@ -18,8 +18,14 @@ export function DidCommPresentationNotificationScreen({
   const router = useRouter()
   const toast = useToastController()
 
-  const { acceptPresentation, proofExchange, status, submission, verifierName } =
-    useAcceptDidCommPresentation(proofExchangeId)
+  const {
+    acceptPresentation,
+    declinePresentation,
+    proofExchange,
+    acceptStatus,
+    submission,
+    verifierName,
+  } = useDidCommPresentationActions(proofExchangeId)
 
   const pushToWallet = () => {
     router.back()
@@ -44,7 +50,9 @@ export function DidCommPresentationNotificationScreen({
   }
 
   const onProofDecline = () => {
-    void agent.proofs.deleteById(proofExchange.id)
+    declinePresentation().finally(() => {
+      void agent.proofs.deleteById(proofExchange.id)
+    })
 
     toast.show('Information request has been declined.')
     pushToWallet()
@@ -56,7 +64,7 @@ export function DidCommPresentationNotificationScreen({
       onDecline={onProofDecline}
       submission={submission}
       // If state is not idle, it means we have pressed accept
-      isAccepting={status !== 'idle'}
+      isAccepting={acceptStatus !== 'idle'}
       verifierName={verifierName}
     />
   )