diff --git a/modules/apps/29-fee/keeper/escrow.go b/modules/apps/29-fee/keeper/escrow.go
index 8914279a71d..d64f5354ef4 100644
--- a/modules/apps/29-fee/keeper/escrow.go
+++ b/modules/apps/29-fee/keeper/escrow.go
@@ -167,6 +167,10 @@ func (k Keeper) distributeFee(ctx sdk.Context, receiver, refundAccAddress sdk.Ac
 			k.Logger(ctx).Error("error refunding fee to the original sender", "refund address", refundAccAddress, "fee", fee)
 			return // if sending to the refund address fails, no-op
 		}
+
+		EmitDistributeFeeEvent(ctx, refundAccAddress.String(), fee)
+	} else {
+		EmitDistributeFeeEvent(ctx, receiver.String(), fee)
 	}
 
 	// write the cache
diff --git a/modules/apps/29-fee/keeper/events.go b/modules/apps/29-fee/keeper/events.go
index ae931862fc7..24122b54be7 100644
--- a/modules/apps/29-fee/keeper/events.go
+++ b/modules/apps/29-fee/keeper/events.go
@@ -75,3 +75,18 @@ func EmitRegisterCounterpartyPayeeEvent(ctx sdk.Context, relayer, counterpartyPa
 		),
 	})
 }
+
+// EmitDistributeFeeEvent emits an event containing a distribution fee and receiver address
+func EmitDistributeFeeEvent(ctx sdk.Context, receiver string, fee sdk.Coins) {
+	ctx.EventManager().EmitEvents(sdk.Events{
+		sdk.NewEvent(
+			types.EventTypeDistributeFee,
+			sdk.NewAttribute(types.AttributeKeyReceiver, receiver),
+			sdk.NewAttribute(types.AttributeKeyFee, fee.String()),
+		),
+		sdk.NewEvent(
+			sdk.EventTypeMessage,
+			sdk.NewAttribute(sdk.AttributeKeyModule, types.ModuleName),
+		),
+	})
+}
diff --git a/modules/apps/29-fee/keeper/events_test.go b/modules/apps/29-fee/keeper/events_test.go
index 24d67acdeca..d149479beaa 100644
--- a/modules/apps/29-fee/keeper/events_test.go
+++ b/modules/apps/29-fee/keeper/events_test.go
@@ -5,6 +5,11 @@ import (
 	abcitypes "github.com/tendermint/tendermint/abci/types"
 
 	"github.com/cosmos/ibc-go/v6/modules/apps/29-fee/types"
+	transfertypes "github.com/cosmos/ibc-go/v6/modules/apps/transfer/types"
+	clienttypes "github.com/cosmos/ibc-go/v6/modules/core/02-client/types"
+	channeltypes "github.com/cosmos/ibc-go/v6/modules/core/04-channel/types"
+	host "github.com/cosmos/ibc-go/v6/modules/core/24-host"
+	ibctesting "github.com/cosmos/ibc-go/v6/testing"
 )
 
 func (suite *KeeperTestSuite) TestIncentivizePacketEvent() {
@@ -81,3 +86,83 @@ func (suite *KeeperTestSuite) TestIncentivizePacketEvent() {
 		}
 	}
 }
+
+func (suite *KeeperTestSuite) TestDistributeFeeEvent() {
+	// create an incentivized transfer path
+	path := ibctesting.NewPath(suite.chainA, suite.chainB)
+	feeTransferVersion := string(types.ModuleCdc.MustMarshalJSON(&types.Metadata{FeeVersion: types.Version, AppVersion: transfertypes.Version}))
+	path.EndpointA.ChannelConfig.Version = feeTransferVersion
+	path.EndpointB.ChannelConfig.Version = feeTransferVersion
+	path.EndpointA.ChannelConfig.PortID = transfertypes.PortID
+	path.EndpointB.ChannelConfig.PortID = transfertypes.PortID
+
+	suite.coordinator.Setup(path)
+
+	// send a new MsgPayPacketFee and MsgTransfer to chainA
+	fee := types.NewFee(defaultRecvFee, defaultAckFee, defaultTimeoutFee)
+	msgPayPacketFee := types.NewMsgPayPacketFee(
+		fee,
+		path.EndpointA.ChannelConfig.PortID,
+		path.EndpointA.ChannelID,
+		suite.chainA.SenderAccount.GetAddress().String(),
+		nil,
+	)
+
+	msgTransfer := transfertypes.NewMsgTransfer(
+		path.EndpointA.ChannelConfig.PortID, path.EndpointA.ChannelID,
+		sdk.NewCoin(sdk.DefaultBondDenom, sdk.NewInt(100)), suite.chainA.SenderAccount.GetAddress().String(), suite.chainB.SenderAccount.GetAddress().String(),
+		clienttypes.NewHeight(1, 100), 0, "",
+	)
+
+	res, err := suite.chainA.SendMsgs(msgPayPacketFee, msgTransfer)
+	suite.Require().NoError(err)
+	suite.Require().NotNil(res)
+
+	// parse the packet from result events and recv packet on chainB
+	packet, err := ibctesting.ParsePacketFromEvents(res.GetEvents())
+	suite.Require().NoError(err)
+	suite.Require().NotNil(packet)
+
+	err = path.EndpointB.UpdateClient()
+	suite.Require().NoError(err)
+
+	res, err = path.EndpointB.RecvPacketWithResult(packet)
+	suite.Require().NoError(err)
+	suite.Require().NotNil(res)
+
+	// parse the acknowledgement from result events and acknowledge packet on chainA
+	ack, err := ibctesting.ParseAckFromEvents(res.GetEvents())
+	suite.Require().NoError(err)
+	suite.Require().NotNil(ack)
+
+	packetKey := host.PacketAcknowledgementKey(packet.GetDestPort(), packet.GetDestChannel(), packet.GetSequence())
+	proof, proofHeight := path.EndpointA.Counterparty.QueryProof(packetKey)
+
+	msgAcknowledgement := channeltypes.NewMsgAcknowledgement(packet, ack, proof, proofHeight, path.EndpointA.Chain.SenderAccount.GetAddress().String())
+	res, err = suite.chainA.SendMsgs(msgAcknowledgement)
+	suite.Require().NoError(err)
+	suite.Require().NotNil(res)
+
+	events := res.GetEvents()
+	expectedEvents := sdk.Events{
+		sdk.NewEvent(
+			types.EventTypeDistributeFee,
+			sdk.NewAttribute(types.AttributeKeyReceiver, suite.chainA.SenderAccount.GetAddress().String()),
+			sdk.NewAttribute(types.AttributeKeyFee, defaultRecvFee.String()),
+		),
+		sdk.NewEvent(
+			types.EventTypeDistributeFee,
+			sdk.NewAttribute(types.AttributeKeyReceiver, suite.chainA.SenderAccount.GetAddress().String()),
+			sdk.NewAttribute(types.AttributeKeyFee, defaultAckFee.String()),
+		),
+		sdk.NewEvent(
+			types.EventTypeDistributeFee,
+			sdk.NewAttribute(types.AttributeKeyReceiver, suite.chainA.SenderAccount.GetAddress().String()),
+			sdk.NewAttribute(types.AttributeKeyFee, defaultTimeoutFee.String()),
+		),
+	}
+
+	for _, evt := range expectedEvents {
+		suite.Require().Contains(events, evt)
+	}
+}
diff --git a/modules/apps/29-fee/types/events.go b/modules/apps/29-fee/types/events.go
index cffca5dabdd..ea9cdd0f870 100644
--- a/modules/apps/29-fee/types/events.go
+++ b/modules/apps/29-fee/types/events.go
@@ -5,6 +5,7 @@ const (
 	EventTypeIncentivizedPacket        = "incentivized_ibc_packet"
 	EventTypeRegisterPayee             = "register_payee"
 	EventTypeRegisterCounterpartyPayee = "register_counterparty_payee"
+	EventTypeDistributeFee             = "distribute_fee"
 
 	AttributeKeyRecvFee           = "recv_fee"
 	AttributeKeyAckFee            = "ack_fee"
@@ -13,4 +14,6 @@ const (
 	AttributeKeyRelayer           = "relayer"
 	AttributeKeyPayee             = "payee"
 	AttributeKeyCounterpartyPayee = "counterparty_payee"
+	AttributeKeyReceiver          = "receiver"
+	AttributeKeyFee               = "fee"
 )