diff --git a/cumulus/parachains/runtimes/assets/asset-hub-rococo/src/lib.rs b/cumulus/parachains/runtimes/assets/asset-hub-rococo/src/lib.rs
index 8163a445220be..367cf8a51f2cf 100644
--- a/cumulus/parachains/runtimes/assets/asset-hub-rococo/src/lib.rs
+++ b/cumulus/parachains/runtimes/assets/asset-hub-rococo/src/lib.rs
@@ -213,6 +213,7 @@ impl pallet_balances::Config for Runtime {
 	type RuntimeFreezeReason = RuntimeFreezeReason;
 	type FreezeIdentifier = ();
 	type MaxFreezes = ConstU32<0>;
+	type DoneSlashHandler = ();
 }
 
 parameter_types! {
diff --git a/cumulus/parachains/runtimes/assets/asset-hub-westend/src/lib.rs b/cumulus/parachains/runtimes/assets/asset-hub-westend/src/lib.rs
index 75aea0eb2c2fd..bb77f576e20da 100644
--- a/cumulus/parachains/runtimes/assets/asset-hub-westend/src/lib.rs
+++ b/cumulus/parachains/runtimes/assets/asset-hub-westend/src/lib.rs
@@ -213,6 +213,7 @@ impl pallet_balances::Config for Runtime {
 	type RuntimeFreezeReason = RuntimeFreezeReason;
 	type FreezeIdentifier = ();
 	type MaxFreezes = ConstU32<0>;
+	type DoneSlashHandler = ();
 }
 
 parameter_types! {
diff --git a/cumulus/parachains/runtimes/bridge-hubs/bridge-hub-rococo/src/lib.rs b/cumulus/parachains/runtimes/bridge-hubs/bridge-hub-rococo/src/lib.rs
index 13c1ab6b625bf..e3435f35f1788 100644
--- a/cumulus/parachains/runtimes/bridge-hubs/bridge-hub-rococo/src/lib.rs
+++ b/cumulus/parachains/runtimes/bridge-hubs/bridge-hub-rococo/src/lib.rs
@@ -342,6 +342,7 @@ impl pallet_balances::Config for Runtime {
 	type RuntimeFreezeReason = RuntimeFreezeReason;
 	type FreezeIdentifier = ();
 	type MaxFreezes = ConstU32<0>;
+	type DoneSlashHandler = ();
 }
 
 parameter_types! {
diff --git a/cumulus/parachains/runtimes/bridge-hubs/bridge-hub-westend/src/lib.rs b/cumulus/parachains/runtimes/bridge-hubs/bridge-hub-westend/src/lib.rs
index 03b69a2180200..b73d8e5c67fae 100644
--- a/cumulus/parachains/runtimes/bridge-hubs/bridge-hub-westend/src/lib.rs
+++ b/cumulus/parachains/runtimes/bridge-hubs/bridge-hub-westend/src/lib.rs
@@ -327,6 +327,7 @@ impl pallet_balances::Config for Runtime {
 	type RuntimeFreezeReason = RuntimeFreezeReason;
 	type FreezeIdentifier = ();
 	type MaxFreezes = ConstU32<0>;
+	type DoneSlashHandler = ();
 }
 
 parameter_types! {
diff --git a/cumulus/parachains/runtimes/collectives/collectives-westend/src/lib.rs b/cumulus/parachains/runtimes/collectives/collectives-westend/src/lib.rs
index a60d3ed66ac67..7f87d4701f962 100644
--- a/cumulus/parachains/runtimes/collectives/collectives-westend/src/lib.rs
+++ b/cumulus/parachains/runtimes/collectives/collectives-westend/src/lib.rs
@@ -223,6 +223,7 @@ impl pallet_balances::Config for Runtime {
 	type RuntimeFreezeReason = RuntimeFreezeReason;
 	type FreezeIdentifier = ();
 	type MaxFreezes = ConstU32<0>;
+	type DoneSlashHandler = ();
 }
 
 parameter_types! {
diff --git a/cumulus/parachains/runtimes/contracts/contracts-rococo/src/lib.rs b/cumulus/parachains/runtimes/contracts/contracts-rococo/src/lib.rs
index 853c8b48dc887..46e2e3e627b30 100644
--- a/cumulus/parachains/runtimes/contracts/contracts-rococo/src/lib.rs
+++ b/cumulus/parachains/runtimes/contracts/contracts-rococo/src/lib.rs
@@ -234,6 +234,7 @@ impl pallet_balances::Config for Runtime {
 	type RuntimeFreezeReason = RuntimeFreezeReason;
 	type FreezeIdentifier = ();
 	type MaxFreezes = ConstU32<0>;
+	type DoneSlashHandler = ();
 }
 
 parameter_types! {
diff --git a/cumulus/parachains/runtimes/coretime/coretime-rococo/src/lib.rs b/cumulus/parachains/runtimes/coretime/coretime-rococo/src/lib.rs
index 74569af9ec7a3..f16dae04f217c 100644
--- a/cumulus/parachains/runtimes/coretime/coretime-rococo/src/lib.rs
+++ b/cumulus/parachains/runtimes/coretime/coretime-rococo/src/lib.rs
@@ -249,6 +249,7 @@ impl pallet_balances::Config for Runtime {
 	type RuntimeFreezeReason = RuntimeFreezeReason;
 	type FreezeIdentifier = ();
 	type MaxFreezes = ConstU32<0>;
+	type DoneSlashHandler = ();
 }
 
 parameter_types! {
diff --git a/cumulus/parachains/runtimes/coretime/coretime-westend/src/lib.rs b/cumulus/parachains/runtimes/coretime/coretime-westend/src/lib.rs
index 5e37faf61819b..e909b804587f8 100644
--- a/cumulus/parachains/runtimes/coretime/coretime-westend/src/lib.rs
+++ b/cumulus/parachains/runtimes/coretime/coretime-westend/src/lib.rs
@@ -249,6 +249,7 @@ impl pallet_balances::Config for Runtime {
 	type RuntimeFreezeReason = RuntimeFreezeReason;
 	type FreezeIdentifier = ();
 	type MaxFreezes = ConstU32<0>;
+	type DoneSlashHandler = ();
 }
 
 parameter_types! {
diff --git a/cumulus/parachains/runtimes/people/people-rococo/src/lib.rs b/cumulus/parachains/runtimes/people/people-rococo/src/lib.rs
index bfd31e2b484eb..aa04d01cf0372 100644
--- a/cumulus/parachains/runtimes/people/people-rococo/src/lib.rs
+++ b/cumulus/parachains/runtimes/people/people-rococo/src/lib.rs
@@ -225,6 +225,7 @@ impl pallet_balances::Config for Runtime {
 	type RuntimeHoldReason = RuntimeHoldReason;
 	type FreezeIdentifier = ();
 	type MaxFreezes = ConstU32<0>;
+	type DoneSlashHandler = ();
 }
 
 parameter_types! {
diff --git a/cumulus/parachains/runtimes/people/people-westend/src/lib.rs b/cumulus/parachains/runtimes/people/people-westend/src/lib.rs
index 8258ba0564f93..c8131c94f15b9 100644
--- a/cumulus/parachains/runtimes/people/people-westend/src/lib.rs
+++ b/cumulus/parachains/runtimes/people/people-westend/src/lib.rs
@@ -224,6 +224,7 @@ impl pallet_balances::Config for Runtime {
 	type RuntimeHoldReason = RuntimeHoldReason;
 	type FreezeIdentifier = ();
 	type MaxFreezes = ConstU32<0>;
+	type DoneSlashHandler = ();
 }
 
 parameter_types! {
diff --git a/cumulus/parachains/runtimes/testing/penpal/src/lib.rs b/cumulus/parachains/runtimes/testing/penpal/src/lib.rs
index a98c7b4886fdb..05773846164f6 100644
--- a/cumulus/parachains/runtimes/testing/penpal/src/lib.rs
+++ b/cumulus/parachains/runtimes/testing/penpal/src/lib.rs
@@ -420,6 +420,7 @@ impl pallet_balances::Config for Runtime {
 	type RuntimeFreezeReason = RuntimeFreezeReason;
 	type FreezeIdentifier = ();
 	type MaxFreezes = ConstU32<0>;
+	type DoneSlashHandler = ();
 }
 
 parameter_types! {
diff --git a/cumulus/parachains/runtimes/testing/rococo-parachain/src/lib.rs b/cumulus/parachains/runtimes/testing/rococo-parachain/src/lib.rs
index 4d39728df83cb..5abdc995c00db 100644
--- a/cumulus/parachains/runtimes/testing/rococo-parachain/src/lib.rs
+++ b/cumulus/parachains/runtimes/testing/rococo-parachain/src/lib.rs
@@ -257,6 +257,7 @@ impl pallet_balances::Config for Runtime {
 	type RuntimeFreezeReason = RuntimeFreezeReason;
 	type FreezeIdentifier = ();
 	type MaxFreezes = ConstU32<0>;
+	type DoneSlashHandler = ();
 }
 
 impl pallet_transaction_payment::Config for Runtime {
diff --git a/cumulus/test/runtime/src/lib.rs b/cumulus/test/runtime/src/lib.rs
index 861d55c77cdc0..92a6ab73a2ebe 100644
--- a/cumulus/test/runtime/src/lib.rs
+++ b/cumulus/test/runtime/src/lib.rs
@@ -269,6 +269,7 @@ impl pallet_balances::Config for Runtime {
 	type RuntimeFreezeReason = RuntimeFreezeReason;
 	type FreezeIdentifier = ();
 	type MaxFreezes = ConstU32<0>;
+	type DoneSlashHandler = ();
 }
 
 impl pallet_transaction_payment::Config for Runtime {
diff --git a/polkadot/runtime/rococo/src/lib.rs b/polkadot/runtime/rococo/src/lib.rs
index e1826e4100b6d..8b9702f43cca9 100644
--- a/polkadot/runtime/rococo/src/lib.rs
+++ b/polkadot/runtime/rococo/src/lib.rs
@@ -400,6 +400,7 @@ impl pallet_balances::Config for Runtime {
 	type RuntimeHoldReason = RuntimeHoldReason;
 	type RuntimeFreezeReason = RuntimeFreezeReason;
 	type MaxFreezes = ConstU32<1>;
+	type DoneSlashHandler = ();
 }
 
 parameter_types! {
@@ -1234,6 +1235,7 @@ impl pallet_balances::Config<NisCounterpartInstance> for Runtime {
 	type RuntimeFreezeReason = RuntimeFreezeReason;
 	type FreezeIdentifier = ();
 	type MaxFreezes = ConstU32<1>;
+	type DoneSlashHandler = ();
 }
 
 parameter_types! {
diff --git a/polkadot/runtime/test-runtime/src/lib.rs b/polkadot/runtime/test-runtime/src/lib.rs
index 30ef2de316514..6ba8e6ad31825 100644
--- a/polkadot/runtime/test-runtime/src/lib.rs
+++ b/polkadot/runtime/test-runtime/src/lib.rs
@@ -234,6 +234,7 @@ impl pallet_balances::Config for Runtime {
 	type RuntimeFreezeReason = RuntimeFreezeReason;
 	type FreezeIdentifier = ();
 	type MaxFreezes = ConstU32<0>;
+	type DoneSlashHandler = ();
 }
 
 parameter_types! {
diff --git a/polkadot/runtime/westend/src/lib.rs b/polkadot/runtime/westend/src/lib.rs
index 7324485256a1a..f3e31dd86177e 100644
--- a/polkadot/runtime/westend/src/lib.rs
+++ b/polkadot/runtime/westend/src/lib.rs
@@ -399,6 +399,7 @@ impl pallet_balances::Config for Runtime {
 	type RuntimeFreezeReason = RuntimeFreezeReason;
 	type FreezeIdentifier = RuntimeFreezeReason;
 	type MaxFreezes = VariantCountOf<RuntimeFreezeReason>;
+	type DoneSlashHandler = ();
 }
 
 parameter_types! {
diff --git a/polkadot/xcm/xcm-builder/src/tests/pay/mock.rs b/polkadot/xcm/xcm-builder/src/tests/pay/mock.rs
index 18bde3aab485a..9f2146fa30e86 100644
--- a/polkadot/xcm/xcm-builder/src/tests/pay/mock.rs
+++ b/polkadot/xcm/xcm-builder/src/tests/pay/mock.rs
@@ -77,6 +77,7 @@ impl pallet_balances::Config for Test {
 	type RuntimeFreezeReason = RuntimeFreezeReason;
 	type FreezeIdentifier = ();
 	type MaxFreezes = ConstU32<0>;
+	type DoneSlashHandler = ();
 }
 
 parameter_types! {
diff --git a/prdoc/pr_5623.prdoc b/prdoc/pr_5623.prdoc
new file mode 100644
index 0000000000000..c0701e0e1b518
--- /dev/null
+++ b/prdoc/pr_5623.prdoc
@@ -0,0 +1,89 @@
+# Schema: Polkadot SDK PRDoc Schema (prdoc) v1.0.0
+# See doc at https://raw.githubusercontent.com/paritytech/polkadot-sdk/master/prdoc/schema_user.json
+
+title: Generic slashing side-effects
+
+doc:
+  - audience: Runtime Dev
+    description: |
+      What?
+      Make it possible for other pallets to implement their own logic when a slash on a balance occurs.
+
+      How?
+      First we abstract the done_slash function of holds::Balanced to it's own trait that any pallet can implement.
+      Then we add a config type in pallet-balances that accepts a callback tuple of all the pallets that implement this trait.
+      Finally implement done_slash for pallet-balances such that it calls the config type.
+      Integration
+      The default implementation of done_slash is still an empty function, and the new config type of pallet-balances can be set to an empty tuple, so nothing changes by default.
+
+crates:
+  - name: frame-support
+    bump: major
+
+  - name: pallet-balances
+    bump: major
+
+  - name: pallet-broker
+    bump: minor
+
+  - name: rococo-runtime
+    bump: minor
+
+  - name: pallet-nis
+    bump: minor
+
+  - name: westend-runtime
+    bump: minor
+
+  - name: pallet-assets-freezer
+    bump: minor
+
+  - name: pallet-contracts-mock-network
+    bump: minor
+
+  - name: pallet-revive-mock-network
+    bump: minor
+
+  - name: asset-hub-rococo-runtime
+    bump: minor
+
+  - name: asset-hub-westend-runtime
+    bump: minor
+
+  - name: bridge-hub-rococo-runtime
+    bump: minor
+
+  - name: bridge-hub-westend-runtime
+    bump: minor
+
+  - name: collectives-westend-runtime
+    bump: minor
+
+  - name: coretime-rococo-runtime
+    bump: minor
+
+  - name: coretime-westend-runtime
+    bump: minor
+
+  - name: people-rococo-runtime
+    bump: minor
+
+  - name: people-westend-runtime
+    bump: minor
+
+  - name: penpal-runtime
+    bump: minor
+
+  - name: contracts-rococo-runtime
+    bump: minor
+
+  - name: rococo-parachain-runtime
+    bump: minor
+
+  - name: staging-xcm-builder
+    bump: minor
+
+  - name: polkadot-sdk
+    bump: minor
+
+
diff --git a/substrate/bin/node/runtime/src/lib.rs b/substrate/bin/node/runtime/src/lib.rs
index 784d74973c328..c81921f844bd5 100644
--- a/substrate/bin/node/runtime/src/lib.rs
+++ b/substrate/bin/node/runtime/src/lib.rs
@@ -546,6 +546,7 @@ impl pallet_balances::Config for Runtime {
 	type WeightInfo = pallet_balances::weights::SubstrateWeight<Runtime>;
 	type FreezeIdentifier = RuntimeFreezeReason;
 	type MaxFreezes = VariantCountOf<RuntimeFreezeReason>;
+	type DoneSlashHandler = ();
 }
 
 parameter_types! {
diff --git a/substrate/frame/assets-freezer/src/mock.rs b/substrate/frame/assets-freezer/src/mock.rs
index 5e04dfe8e2b9c..bc903a018f7b8 100644
--- a/substrate/frame/assets-freezer/src/mock.rs
+++ b/substrate/frame/assets-freezer/src/mock.rs
@@ -87,6 +87,7 @@ impl pallet_balances::Config for Test {
 	type MaxFreezes = ();
 	type RuntimeHoldReason = ();
 	type RuntimeFreezeReason = ();
+	type DoneSlashHandler = ();
 }
 
 impl pallet_assets::Config for Test {
diff --git a/substrate/frame/balances/src/impl_fungible.rs b/substrate/frame/balances/src/impl_fungible.rs
index 0f4e51f35012a..cf95a97d191fc 100644
--- a/substrate/frame/balances/src/impl_fungible.rs
+++ b/substrate/frame/balances/src/impl_fungible.rs
@@ -363,6 +363,14 @@ impl<T: Config<I>, I: 'static> fungible::Balanced<T::AccountId> for Pallet<T, I>
 
 impl<T: Config<I>, I: 'static> fungible::BalancedHold<T::AccountId> for Pallet<T, I> {}
 
+impl<T: Config<I>, I: 'static>
+	fungible::hold::DoneSlash<T::RuntimeHoldReason, T::AccountId, T::Balance> for Pallet<T, I>
+{
+	fn done_slash(reason: &T::RuntimeHoldReason, who: &T::AccountId, amount: T::Balance) {
+		T::DoneSlashHandler::done_slash(reason, who, amount);
+	}
+}
+
 impl<T: Config<I>, I: 'static> AccountTouch<(), T::AccountId> for Pallet<T, I> {
 	type Balance = T::Balance;
 	fn deposit_required(_: ()) -> Self::Balance {
diff --git a/substrate/frame/balances/src/lib.rs b/substrate/frame/balances/src/lib.rs
index f6858347f24e8..65e594a904f91 100644
--- a/substrate/frame/balances/src/lib.rs
+++ b/substrate/frame/balances/src/lib.rs
@@ -234,6 +234,7 @@ pub mod pallet {
 			type MaxFreezes = VariantCountOf<Self::RuntimeFreezeReason>;
 
 			type WeightInfo = ();
+			type DoneSlashHandler = ();
 		}
 	}
 
@@ -312,6 +313,14 @@ pub mod pallet {
 		/// The maximum number of individual freeze locks that can exist on an account at any time.
 		#[pallet::constant]
 		type MaxFreezes: Get<u32>;
+
+		/// Allows callbacks to other pallets so they can update their bookkeeping when a slash
+		/// occurs.
+		type DoneSlashHandler: fungible::hold::DoneSlash<
+			Self::RuntimeHoldReason,
+			Self::AccountId,
+			Self::Balance,
+		>;
 	}
 
 	/// The in-code storage version.
diff --git a/substrate/frame/broker/src/test_fungibles.rs b/substrate/frame/broker/src/test_fungibles.rs
index b0a06fc1a326d..1015e1fac252e 100644
--- a/substrate/frame/broker/src/test_fungibles.rs
+++ b/substrate/frame/broker/src/test_fungibles.rs
@@ -269,6 +269,20 @@ where
 {
 }
 
+impl<
+		Instance: Get<u32>,
+		AccountId: Encode,
+		AssetId: tokens::AssetId + Copy,
+		MinimumBalance: TypedGet,
+		HoldReason: Encode + Decode + TypeInfo + 'static,
+		Balance: tokens::Balance,
+	> fungibles::hold::DoneSlash<AssetId, HoldReason, AccountId, Balance>
+	for TestFungibles<Instance, AccountId, AssetId, MinimumBalance, HoldReason>
+where
+	MinimumBalance::Type: tokens::Balance,
+{
+}
+
 impl<
 		Instance: Get<u32>,
 		AccountId: Encode,
diff --git a/substrate/frame/contracts/mock-network/src/parachain.rs b/substrate/frame/contracts/mock-network/src/parachain.rs
index 5a06cc6748b8a..6edbfb0e7e86a 100644
--- a/substrate/frame/contracts/mock-network/src/parachain.rs
+++ b/substrate/frame/contracts/mock-network/src/parachain.rs
@@ -94,6 +94,7 @@ impl pallet_balances::Config for Runtime {
 	type RuntimeHoldReason = RuntimeHoldReason;
 	type RuntimeFreezeReason = RuntimeFreezeReason;
 	type WeightInfo = ();
+	type DoneSlashHandler = ();
 }
 
 parameter_types! {
diff --git a/substrate/frame/contracts/mock-network/src/relay_chain.rs b/substrate/frame/contracts/mock-network/src/relay_chain.rs
index 705578cde1d96..5fed061f80b45 100644
--- a/substrate/frame/contracts/mock-network/src/relay_chain.rs
+++ b/substrate/frame/contracts/mock-network/src/relay_chain.rs
@@ -89,6 +89,7 @@ impl pallet_balances::Config for Runtime {
 	type MaxFreezes = ConstU32<0>;
 	type RuntimeHoldReason = RuntimeHoldReason;
 	type RuntimeFreezeReason = RuntimeFreezeReason;
+	type DoneSlashHandler = ();
 }
 
 impl shared::Config for Runtime {
diff --git a/substrate/frame/nis/src/mock.rs b/substrate/frame/nis/src/mock.rs
index f3320a306df73..2b008f8ec2a41 100644
--- a/substrate/frame/nis/src/mock.rs
+++ b/substrate/frame/nis/src/mock.rs
@@ -64,6 +64,7 @@ impl pallet_balances::Config<Instance1> for Test {
 	type MaxFreezes = ();
 	type RuntimeHoldReason = RuntimeHoldReason;
 	type RuntimeFreezeReason = RuntimeFreezeReason;
+	type DoneSlashHandler = ();
 }
 
 impl pallet_balances::Config<Instance2> for Test {
@@ -84,6 +85,7 @@ impl pallet_balances::Config<Instance2> for Test {
 	type MaxFreezes = ();
 	type RuntimeHoldReason = ();
 	type RuntimeFreezeReason = ();
+	type DoneSlashHandler = ();
 }
 
 parameter_types! {
diff --git a/substrate/frame/revive/mock-network/src/parachain.rs b/substrate/frame/revive/mock-network/src/parachain.rs
index 0fd2248db5722..26a8fdcada27e 100644
--- a/substrate/frame/revive/mock-network/src/parachain.rs
+++ b/substrate/frame/revive/mock-network/src/parachain.rs
@@ -94,6 +94,7 @@ impl pallet_balances::Config for Runtime {
 	type RuntimeHoldReason = RuntimeHoldReason;
 	type RuntimeFreezeReason = RuntimeFreezeReason;
 	type WeightInfo = ();
+	type DoneSlashHandler = ();
 }
 
 parameter_types! {
diff --git a/substrate/frame/revive/mock-network/src/relay_chain.rs b/substrate/frame/revive/mock-network/src/relay_chain.rs
index 705578cde1d96..5fed061f80b45 100644
--- a/substrate/frame/revive/mock-network/src/relay_chain.rs
+++ b/substrate/frame/revive/mock-network/src/relay_chain.rs
@@ -89,6 +89,7 @@ impl pallet_balances::Config for Runtime {
 	type MaxFreezes = ConstU32<0>;
 	type RuntimeHoldReason = RuntimeHoldReason;
 	type RuntimeFreezeReason = RuntimeFreezeReason;
+	type DoneSlashHandler = ();
 }
 
 impl shared::Config for Runtime {
diff --git a/substrate/frame/support/src/traits/tokens/fungible/hold.rs b/substrate/frame/support/src/traits/tokens/fungible/hold.rs
index 28ece25c91d42..6737cfe707ac3 100644
--- a/substrate/frame/support/src/traits/tokens/fungible/hold.rs
+++ b/substrate/frame/support/src/traits/tokens/fungible/hold.rs
@@ -430,7 +430,11 @@ pub trait Mutate<AccountId>:
 }
 
 /// Trait for slashing a fungible asset which can be place on hold.
-pub trait Balanced<AccountId>: super::Balanced<AccountId> + Unbalanced<AccountId> {
+pub trait Balanced<AccountId>:
+	super::Balanced<AccountId>
+	+ Unbalanced<AccountId>
+	+ DoneSlash<Self::Reason, AccountId, Self::Balance>
+{
 	/// Reduce the balance of some funds on hold in an account.
 	///
 	/// The resulting imbalance is the first item of the tuple returned.
@@ -449,6 +453,16 @@ pub trait Balanced<AccountId>: super::Balanced<AccountId> + Unbalanced<AccountId
 		Self::done_slash(reason, who, decrease);
 		(credit, amount.saturating_sub(decrease))
 	}
+}
 
-	fn done_slash(_reason: &Self::Reason, _who: &AccountId, _amount: Self::Balance) {}
+/// Trait for optional bookkeeping callbacks after a slash.
+pub trait DoneSlash<Reason, AccountId, Balance> {
+	fn done_slash(_reason: &Reason, _who: &AccountId, _amount: Balance) {}
+}
+
+#[impl_trait_for_tuples::impl_for_tuples(30)]
+impl<Reason, AccountId, Balance: Copy> DoneSlash<Reason, AccountId, Balance> for Tuple {
+	fn done_slash(reason: &Reason, who: &AccountId, amount: Balance) {
+		for_tuples!( #( Tuple::done_slash(reason, who, amount); )* );
+	}
 }
diff --git a/substrate/frame/support/src/traits/tokens/fungible/item_of.rs b/substrate/frame/support/src/traits/tokens/fungible/item_of.rs
index c9f366911a8b6..309288d8278fd 100644
--- a/substrate/frame/support/src/traits/tokens/fungible/item_of.rs
+++ b/substrate/frame/support/src/traits/tokens/fungible/item_of.rs
@@ -30,6 +30,7 @@ use crate::traits::{
 		WithdrawConsequence,
 	},
 };
+use frame_support::traits::fungible::hold::DoneSlash;
 use sp_core::Get;
 use sp_runtime::{DispatchError, DispatchResult};
 
@@ -467,5 +468,21 @@ impl<
 	}
 }
 
+impl<
+		F: fungibles::BalancedHold<AccountId>,
+		A: Get<<F as fungibles::Inspect<AccountId>>::AssetId>,
+		AccountId,
+	> DoneSlash<F::Reason, AccountId, F::Balance> for ItemOf<F, A, AccountId>
+{
+	fn done_slash(reason: &F::Reason, who: &AccountId, amount: F::Balance) {
+		<F as fungibles::hold::DoneSlash<F::AssetId, F::Reason, AccountId, F::Balance>>::done_slash(
+			A::get(),
+			reason,
+			who,
+			amount,
+		)
+	}
+}
+
 #[test]
 fn test() {}
diff --git a/substrate/frame/support/src/traits/tokens/fungible/union_of.rs b/substrate/frame/support/src/traits/tokens/fungible/union_of.rs
index 3adbbdda31431..5cb1d0a9e7b07 100644
--- a/substrate/frame/support/src/traits/tokens/fungible/union_of.rs
+++ b/substrate/frame/support/src/traits/tokens/fungible/union_of.rs
@@ -844,8 +844,10 @@ impl<
 }
 
 impl<
-		Left: fungible::BalancedHold<AccountId>,
-		Right: fungibles::BalancedHold<AccountId, Balance = Left::Balance, Reason = Left::Reason>,
+		Left: fungible::BalancedHold<AccountId>
+			+ fungible::hold::DoneSlash<Self::Reason, AccountId, Self::Balance>,
+		Right: fungibles::BalancedHold<AccountId, Balance = Left::Balance, Reason = Left::Reason>
+			+ fungibles::hold::DoneSlash<AssetKind, Left::Reason, AccountId, Left::Balance>,
 		Criterion: Convert<AssetKind, Either<(), Right::AssetId>>,
 		AssetKind: AssetId,
 		AccountId,
@@ -871,6 +873,29 @@ impl<
 		}
 	}
 }
+impl<
+		Reason,
+		Balance,
+		Left: fungible::hold::DoneSlash<Reason, AccountId, Balance>,
+		Right: fungibles::hold::DoneSlash<Right::AssetId, Reason, AccountId, Balance>
+			+ fungibles::Inspect<AccountId>,
+		Criterion: Convert<AssetKind, Either<(), Right::AssetId>>,
+		AssetKind: AssetId,
+		AccountId,
+	> fungibles::hold::DoneSlash<AssetKind, Reason, AccountId, Balance>
+	for UnionOf<Left, Right, Criterion, AssetKind, AccountId>
+{
+	fn done_slash(asset: AssetKind, reason: &Reason, who: &AccountId, amount: Balance) {
+		match Criterion::convert(asset.clone()) {
+			Left(()) => {
+				Left::done_slash(reason, who, amount);
+			},
+			Right(a) => {
+				Right::done_slash(a, reason, who, amount);
+			},
+		}
+	}
+}
 
 impl<
 		Left: fungible::Inspect<AccountId>,
diff --git a/substrate/frame/support/src/traits/tokens/fungibles/hold.rs b/substrate/frame/support/src/traits/tokens/fungibles/hold.rs
index ef3fef7a300d9..026bfc872e0c4 100644
--- a/substrate/frame/support/src/traits/tokens/fungibles/hold.rs
+++ b/substrate/frame/support/src/traits/tokens/fungibles/hold.rs
@@ -214,7 +214,11 @@ pub trait Unbalanced<AccountId>: Inspect<AccountId> {
 }
 
 /// Trait for slashing a fungible asset which can be place on hold.
-pub trait Balanced<AccountId>: super::Balanced<AccountId> + Unbalanced<AccountId> {
+pub trait Balanced<AccountId>:
+	super::Balanced<AccountId>
+	+ Unbalanced<AccountId>
+	+ DoneSlash<Self::AssetId, Self::Reason, AccountId, Self::Balance>
+{
 	/// Reduce the balance of some funds on hold in an account.
 	///
 	/// The resulting imbalance is the first item of the tuple returned.
@@ -238,13 +242,19 @@ pub trait Balanced<AccountId>: super::Balanced<AccountId> + Unbalanced<AccountId
 		Self::done_slash(asset, reason, who, decrease);
 		(credit, amount.saturating_sub(decrease))
 	}
+}
 
-	fn done_slash(
-		_asset: Self::AssetId,
-		_reason: &Self::Reason,
-		_who: &AccountId,
-		_amount: Self::Balance,
-	) {
+/// Trait for optional bookkeeping callbacks after a slash
+pub trait DoneSlash<AssetId, Reason, AccountId, Balance> {
+	fn done_slash(_asset: AssetId, _reason: &Reason, _who: &AccountId, _amount: Balance) {}
+}
+
+#[impl_trait_for_tuples::impl_for_tuples(30)]
+impl<AssetId: Copy, Reason, AccountId, Balance: Copy> DoneSlash<AssetId, Reason, AccountId, Balance>
+	for Tuple
+{
+	fn done_slash(asset_id: AssetId, reason: &Reason, who: &AccountId, amount: Balance) {
+		for_tuples!( #( Tuple::done_slash(asset_id, reason, who, amount); )* );
 	}
 }
 
diff --git a/substrate/frame/support/src/traits/tokens/fungibles/union_of.rs b/substrate/frame/support/src/traits/tokens/fungibles/union_of.rs
index 77047150e00ce..ec066dddcfac8 100644
--- a/substrate/frame/support/src/traits/tokens/fungibles/union_of.rs
+++ b/substrate/frame/support/src/traits/tokens/fungibles/union_of.rs
@@ -825,8 +825,10 @@ impl<
 }
 
 impl<
-		Left: fungibles::BalancedHold<AccountId>,
-		Right: fungibles::BalancedHold<AccountId, Balance = Left::Balance, Reason = Left::Reason>,
+		Left: fungibles::BalancedHold<AccountId>
+			+ fungibles::hold::DoneSlash<Self::AssetId, Self::Reason, AccountId, Self::Balance>,
+		Right: fungibles::BalancedHold<AccountId, Balance = Left::Balance, Reason = Left::Reason>
+			+ fungibles::hold::DoneSlash<Self::AssetId, Self::Reason, AccountId, Self::Balance>,
 		Criterion: Convert<AssetKind, Either<Left::AssetId, Right::AssetId>>,
 		AssetKind: AssetId,
 		AccountId,
@@ -853,6 +855,31 @@ impl<
 	}
 }
 
+impl<
+		Reason,
+		Balance,
+		Left: fungibles::Inspect<AccountId>
+			+ fungibles::hold::DoneSlash<Left::AssetId, Reason, AccountId, Balance>,
+		Right: fungibles::Inspect<AccountId>
+			+ fungibles::hold::DoneSlash<Right::AssetId, Reason, AccountId, Balance>,
+		Criterion: Convert<AssetKind, Either<Left::AssetId, Right::AssetId>>,
+		AssetKind: AssetId,
+		AccountId,
+	> fungibles::hold::DoneSlash<AssetKind, Reason, AccountId, Balance>
+	for UnionOf<Left, Right, Criterion, AssetKind, AccountId>
+{
+	fn done_slash(asset: AssetKind, reason: &Reason, who: &AccountId, amount: Balance) {
+		match Criterion::convert(asset.clone()) {
+			Left(a) => {
+				Left::done_slash(a, reason, who, amount);
+			},
+			Right(a) => {
+				Right::done_slash(a, reason, who, amount);
+			},
+		}
+	}
+}
+
 impl<
 		Left: fungibles::Inspect<AccountId> + fungibles::Create<AccountId>,
 		Right: fungibles::Inspect<AccountId, Balance = Left::Balance> + fungibles::Create<AccountId>,
diff --git a/substrate/test-utils/runtime/src/lib.rs b/substrate/test-utils/runtime/src/lib.rs
index 840081003b848..74965264c0343 100644
--- a/substrate/test-utils/runtime/src/lib.rs
+++ b/substrate/test-utils/runtime/src/lib.rs
@@ -391,6 +391,7 @@ impl pallet_balances::Config for Runtime {
 	type MaxFreezes = ();
 	type RuntimeHoldReason = RuntimeHoldReason;
 	type RuntimeFreezeReason = RuntimeFreezeReason;
+	type DoneSlashHandler = ();
 }
 
 impl substrate_test_pallet::Config for Runtime {}
diff --git a/templates/parachain/runtime/src/configs/mod.rs b/templates/parachain/runtime/src/configs/mod.rs
index 456187337121b..43ab63bd0b678 100644
--- a/templates/parachain/runtime/src/configs/mod.rs
+++ b/templates/parachain/runtime/src/configs/mod.rs
@@ -158,6 +158,7 @@ impl pallet_balances::Config for Runtime {
 	type RuntimeFreezeReason = RuntimeFreezeReason;
 	type FreezeIdentifier = RuntimeFreezeReason;
 	type MaxFreezes = VariantCountOf<RuntimeFreezeReason>;
+	type DoneSlashHandler = ();
 }
 
 parameter_types! {
diff --git a/templates/solochain/runtime/src/configs/mod.rs b/templates/solochain/runtime/src/configs/mod.rs
index a5c12fbd79ab0..4f77ad37fe640 100644
--- a/templates/solochain/runtime/src/configs/mod.rs
+++ b/templates/solochain/runtime/src/configs/mod.rs
@@ -134,6 +134,7 @@ impl pallet_balances::Config for Runtime {
 	type MaxFreezes = VariantCountOf<RuntimeFreezeReason>;
 	type RuntimeHoldReason = RuntimeHoldReason;
 	type RuntimeFreezeReason = RuntimeHoldReason;
+	type DoneSlashHandler = ();
 }
 
 parameter_types! {