diff --git a/cl/abstract/beacon_state.go b/cl/abstract/beacon_state.go
index be22f118827..67b1e8bb3ba 100644
--- a/cl/abstract/beacon_state.go
+++ b/cl/abstract/beacon_state.go
@@ -63,6 +63,7 @@ type BeaconStateExtension interface {
 	GetDepositBalanceToConsume() uint64
 	GetPendingDeposits() *solid.ListSSZ[*solid.PendingDeposit]
 	GetDepositRequestsStartIndex() uint64
+	GetPendingConsolidations() *solid.ListSSZ[*solid.PendingConsolidation]
 }
 
 type BeaconStateBasic interface {
@@ -131,6 +132,7 @@ type BeaconStateMutator interface {
 	SetPendingPartialWithdrawals(*solid.ListSSZ[*solid.PendingPartialWithdrawal])
 	SetPendingDeposits(*solid.ListSSZ[*solid.PendingDeposit])
 	SetDepositBalanceToConsume(uint64)
+	SetPendingConsolidations(consolidations *solid.ListSSZ[*solid.PendingConsolidation])
 
 	AddEth1DataVote(vote *cltypes.Eth1Data)
 	AddValidator(validator solid.Validator, balance uint64)
diff --git a/cl/phase1/core/state/raw/setters.go b/cl/phase1/core/state/raw/setters.go
index 4c36466871d..e00df933d7e 100644
--- a/cl/phase1/core/state/raw/setters.go
+++ b/cl/phase1/core/state/raw/setters.go
@@ -541,6 +541,11 @@ func (b *BeaconState) SetPendingDeposits(deposits *solid.ListSSZ[*solid.PendingD
 	b.markLeaf(PendingDepositsLeafIndex)
 }
 
+func (b *BeaconState) SetPendingConsolidations(consolidations *solid.ListSSZ[*solid.PendingConsolidation]) {
+	b.pendingConsolidations = consolidations
+	b.markLeaf(PendingConsolidationsLeafIndex)
+}
+
 func (b *BeaconState) SetDepositBalanceToConsume(balance uint64) {
 	b.depositBalanceToConsume = balance
 	b.markLeaf(DepositBalanceToConsumeLeafIndex)
diff --git a/cl/phase1/core/state/raw/state.go b/cl/phase1/core/state/raw/state.go
index 8f4df4b941b..7ffab7bba25 100644
--- a/cl/phase1/core/state/raw/state.go
+++ b/cl/phase1/core/state/raw/state.go
@@ -260,3 +260,7 @@ func (b *BeaconState) GetPendingDeposits() *solid.ListSSZ[*solid.PendingDeposit]
 func (b *BeaconState) GetDepositRequestsStartIndex() uint64 {
 	return b.depositRequestsStartIndex
 }
+
+func (b *BeaconState) GetPendingConsolidations() *solid.ListSSZ[*solid.PendingConsolidation] {
+	return b.pendingConsolidations
+}
diff --git a/cl/transition/impl/eth2/statechange/process_pending_consolidations.go b/cl/transition/impl/eth2/statechange/process_pending_consolidations.go
index f0ef77245f6..aecff774d94 100644
--- a/cl/transition/impl/eth2/statechange/process_pending_consolidations.go
+++ b/cl/transition/impl/eth2/statechange/process_pending_consolidations.go
@@ -1,11 +1,45 @@
 package statechange
 
 import (
-	"errors"
-
+	"github.com/erigontech/erigon-lib/log/v3"
 	"github.com/erigontech/erigon/cl/abstract"
+	"github.com/erigontech/erigon/cl/cltypes/solid"
+	"github.com/erigontech/erigon/cl/phase1/core/state"
 )
 
-func ProcessPendingConsolidations(s abstract.BeaconState) error {
-	return errors.New("not implemented")
+func ProcessPendingConsolidations(s abstract.BeaconState) {
+	nextEpoch := s.Slot()/s.BeaconConfig().SlotsPerEpoch + 1
+	nextConsolidationIndex := 0
+	s.GetPendingConsolidations().Range(func(i int, c *solid.PendingConsolidation, length int) bool {
+		sourceValidator, err := s.ValidatorForValidatorIndex(int(c.SourceIndex))
+		if err != nil {
+			log.Warn("Failed to get source validator for consolidation", "index", c.SourceIndex)
+			nextConsolidationIndex++
+			return true
+		}
+		if sourceValidator.Slashed() {
+			nextConsolidationIndex++
+			return true
+		}
+		if sourceValidator.WithdrawableEpoch() > nextEpoch {
+			return false // stop processing
+		}
+		// Calculate the consolidated balance
+		maxEffectiveBalance := state.GetMaxEffectiveBalanceByVersion(sourceValidator, s.BeaconConfig(), s.Version())
+		vBalance, err := s.ValidatorBalance(int(c.SourceIndex))
+		if err != nil {
+			log.Warn("Failed to get validator balance for consolidation", "index", c.SourceIndex)
+			nextConsolidationIndex++
+			return true
+		}
+		sourceEffectiveBalance := min(vBalance, maxEffectiveBalance)
+		// Move active balance to target. Excess balance is withdrawable.
+		state.DecreaseBalance(s, c.SourceIndex, sourceEffectiveBalance)
+		state.IncreaseBalance(s, c.TargetIndex, sourceEffectiveBalance)
+		nextConsolidationIndex++
+		return true
+	})
+	pendingConsolidations := s.GetPendingConsolidations().ShallowCopy()
+	pendingConsolidations.Cut(nextConsolidationIndex)
+	s.SetPendingConsolidations(pendingConsolidations)
 }