diff --git a/node/core/dispute-coordinator/src/initialized.rs b/node/core/dispute-coordinator/src/initialized.rs
index 9229f61f3a78..901a6d863ed2 100644
--- a/node/core/dispute-coordinator/src/initialized.rs
+++ b/node/core/dispute-coordinator/src/initialized.rs
@@ -869,12 +869,21 @@ impl Initialized {
 			}
 		}
 
+		let has_own_vote = new_state.has_own_vote();
+		let is_disputed = new_state.is_disputed();
+		let has_controlled_indices = !env.controlled_indices().is_empty();
+		let is_backed = self.scraper.is_candidate_backed(&candidate_hash);
+		let is_confirmed = new_state.is_confirmed();
+		// We participate only in disputes which are included, backed or confirmed
+		let allow_participation = is_included || is_backed || is_confirmed;
+
 		// Participate in dispute if we did not cast a vote before and actually have keys to cast a
-		// local vote:
-		if !new_state.has_own_vote() &&
-			new_state.is_disputed() &&
-			!env.controlled_indices().is_empty()
-		{
+		// local vote. Disputes should fall in one of the categories below, otherwise we will refrain
+		// from participation:
+		// - `is_included` lands in prioritised queue
+		// - `is_confirmed` | `is_backed` lands in best effort queue
+		// We don't participate in disputes on finalized candidates.
+		if !has_own_vote && is_disputed && has_controlled_indices && allow_participation {
 			let priority = ParticipationPriority::with_priority_if(is_included);
 			gum::trace!(
 				target: LOG_TARGET,
@@ -896,6 +905,23 @@ impl Initialized {
 				)
 				.await;
 			log_error(r)?;
+		} else {
+			gum::trace!(
+				target: LOG_TARGET,
+				?candidate_hash,
+				?is_confirmed,
+				?has_own_vote,
+				?is_disputed,
+				?has_controlled_indices,
+				?allow_participation,
+				?is_included,
+				?is_backed,
+				"Will not queue participation for candidate"
+			);
+
+			if !allow_participation {
+				self.metrics.on_refrained_participation();
+			}
 		}
 
 		// Also send any already existing approval vote on new disputes:
diff --git a/node/core/dispute-coordinator/src/lib.rs b/node/core/dispute-coordinator/src/lib.rs
index 03abd8f59d60..09d6c621b999 100644
--- a/node/core/dispute-coordinator/src/lib.rs
+++ b/node/core/dispute-coordinator/src/lib.rs
@@ -286,7 +286,7 @@ impl DisputeCoordinatorSubsystem {
 
 		let mut participation_requests = Vec::new();
 		let mut unconfirmed_disputes: UnconfirmedDisputes = UnconfirmedDisputes::new();
-		let (mut scraper, votes) = ChainScraper::new(ctx.sender(), initial_head).await?;
+		let (scraper, votes) = ChainScraper::new(ctx.sender(), initial_head).await?;
 		for ((session, ref candidate_hash), status) in active_disputes {
 			let votes: CandidateVotes =
 				match overlay_db.load_candidate_votes(session, candidate_hash) {
diff --git a/node/core/dispute-coordinator/src/metrics.rs b/node/core/dispute-coordinator/src/metrics.rs
index 1fbe7e49e8b8..70cd49ac49d1 100644
--- a/node/core/dispute-coordinator/src/metrics.rs
+++ b/node/core/dispute-coordinator/src/metrics.rs
@@ -30,6 +30,8 @@ struct MetricsInner {
 	queued_participations: prometheus::CounterVec<prometheus::U64>,
 	/// How long vote cleanup batches take.
 	vote_cleanup_time: prometheus::Histogram,
+	/// Number of refrained participations.
+	refrained_participations: prometheus::Counter<prometheus::U64>,
 }
 
 /// Candidate validation metrics.
@@ -88,6 +90,12 @@ impl Metrics {
 	pub(crate) fn time_vote_cleanup(&self) -> Option<prometheus::prometheus::HistogramTimer> {
 		self.0.as_ref().map(|metrics| metrics.vote_cleanup_time.start_timer())
 	}
+
+	pub(crate) fn on_refrained_participation(&self) {
+		if let Some(metrics) = &self.0 {
+			metrics.refrained_participations.inc();
+		}
+	}
 }
 
 impl metrics::Metrics for Metrics {
@@ -147,6 +155,14 @@ impl metrics::Metrics for Metrics {
 				)?,
 				registry,
 			)?,
+			refrained_participations: prometheus::register(
+			prometheus::Counter::with_opts(
+				prometheus::Opts::new(
+					"polkadot_parachain_dispute_refrained_participations",
+					"Number of refrained participations. We refrain from participation if all of the following conditions are met: disputed candidate is not included, not backed and not confirmed.",
+				))?,
+				registry,
+			)?,
 		};
 		Ok(Metrics(Some(metrics)))
 	}
diff --git a/node/core/dispute-coordinator/src/scraping/candidates.rs b/node/core/dispute-coordinator/src/scraping/candidates.rs
new file mode 100644
index 000000000000..2fe797768cc2
--- /dev/null
+++ b/node/core/dispute-coordinator/src/scraping/candidates.rs
@@ -0,0 +1,148 @@
+use polkadot_primitives::v2::{BlockNumber, CandidateHash};
+use std::collections::{BTreeMap, HashMap, HashSet};
+
+/// Keeps `CandidateHash` in reference counted way.
+/// Each `insert` saves a value with `reference count == 1` or increases the reference
+/// count if the value already exists.
+/// Each `remove` decreases the reference count for the corresponding `CandidateHash`.
+/// If the reference count reaches 0 - the value is removed.
+struct RefCountedCandidates {
+	candidates: HashMap<CandidateHash, usize>,
+}
+
+impl RefCountedCandidates {
+	pub fn new() -> Self {
+		Self { candidates: HashMap::new() }
+	}
+	// If `CandidateHash` doesn't exist in the `HashMap` it is created and its reference
+	// count is set to 1.
+	// If `CandidateHash` already exists in the `HashMap` its reference count is increased.
+	pub fn insert(&mut self, candidate: CandidateHash) {
+		*self.candidates.entry(candidate).or_default() += 1;
+	}
+
+	// If a `CandidateHash` with reference count equals to 1 is about to be removed - the
+	// candidate is dropped from the container too.
+	// If a `CandidateHash` with reference count biger than 1 is about to be removed - the
+	// reference count is decreased and the candidate remains in the container.
+	pub fn remove(&mut self, candidate: &CandidateHash) {
+		match self.candidates.get_mut(candidate) {
+			Some(v) if *v > 1 => *v -= 1,
+			Some(v) => {
+				assert!(*v == 1);
+				self.candidates.remove(candidate);
+			},
+			None => {},
+		}
+	}
+
+	pub fn contains(&self, candidate: &CandidateHash) -> bool {
+		self.candidates.contains_key(&candidate)
+	}
+}
+
+#[cfg(test)]
+mod ref_counted_candidates_tests {
+	use super::*;
+	use polkadot_primitives::v2::{BlakeTwo256, HashT};
+
+	#[test]
+	fn element_is_removed_when_refcount_reaches_zero() {
+		let mut container = RefCountedCandidates::new();
+
+		let zero = CandidateHash(BlakeTwo256::hash(&vec![0]));
+		let one = CandidateHash(BlakeTwo256::hash(&vec![1]));
+		// add two separate candidates
+		container.insert(zero); // refcount == 1
+		container.insert(one);
+
+		// and increase the reference count for the first
+		container.insert(zero); // refcount == 2
+
+		assert!(container.contains(&zero));
+		assert!(container.contains(&one));
+
+		// remove once -> refcount == 1
+		container.remove(&zero);
+		assert!(container.contains(&zero));
+		assert!(container.contains(&one));
+
+		// remove once -> refcount == 0
+		container.remove(&zero);
+		assert!(!container.contains(&zero));
+		assert!(container.contains(&one));
+
+		// remove the other element
+		container.remove(&one);
+		assert!(!container.contains(&zero));
+		assert!(!container.contains(&one));
+	}
+}
+
+/// Keeps track of scraped candidates. Supports `insert`, `remove_up_to_height` and `contains`
+/// operations.
+pub struct ScrapedCandidates {
+	/// Main data structure which keeps the candidates we know about. `contains` does lookups only here.
+	candidates: RefCountedCandidates,
+	/// Keeps track at which block number a candidate was inserted. Used in `remove_up_to_height`.
+	/// Without this tracking we won't be able to remove all candidates before block X.
+	candidates_by_block_number: BTreeMap<BlockNumber, HashSet<CandidateHash>>,
+}
+
+impl ScrapedCandidates {
+	pub fn new() -> Self {
+		Self {
+			candidates: RefCountedCandidates::new(),
+			candidates_by_block_number: BTreeMap::new(),
+		}
+	}
+
+	pub fn contains(&self, candidate_hash: &CandidateHash) -> bool {
+		self.candidates.contains(candidate_hash)
+	}
+
+	// Removes all candidates up to a given height. The candidates at the block height are NOT removed.
+	pub fn remove_up_to_height(&mut self, height: &BlockNumber) {
+		let not_stale = self.candidates_by_block_number.split_off(&height);
+		let stale = std::mem::take(&mut self.candidates_by_block_number);
+		self.candidates_by_block_number = not_stale;
+		for candidates in stale.values() {
+			for c in candidates {
+				self.candidates.remove(c);
+			}
+		}
+	}
+
+	pub fn insert(&mut self, block_number: BlockNumber, candidate_hash: CandidateHash) {
+		self.candidates.insert(candidate_hash);
+		self.candidates_by_block_number
+			.entry(block_number)
+			.or_default()
+			.insert(candidate_hash);
+	}
+
+	// Used only for tests to verify the pruning doesn't leak data.
+	#[cfg(test)]
+	pub fn candidates_by_block_number_is_empty(&self) -> bool {
+		self.candidates_by_block_number.is_empty()
+	}
+}
+
+#[cfg(test)]
+mod scraped_candidates_tests {
+	use super::*;
+	use polkadot_primitives::v2::{BlakeTwo256, HashT};
+
+	#[test]
+	fn stale_candidates_are_removed() {
+		let mut candidates = ScrapedCandidates::new();
+		let target = CandidateHash(BlakeTwo256::hash(&vec![1, 2, 3]));
+		candidates.insert(1, target);
+
+		assert!(candidates.contains(&target));
+
+		candidates.remove_up_to_height(&2);
+		assert!(!candidates.contains(&target));
+		assert!(candidates.candidates_by_block_number_is_empty());
+	}
+}
diff --git a/node/core/dispute-coordinator/src/scraping/mod.rs b/node/core/dispute-coordinator/src/scraping/mod.rs
index 7d5d33e1ff4b..99a6e68cdfb5 100644
--- a/node/core/dispute-coordinator/src/scraping/mod.rs
+++ b/node/core/dispute-coordinator/src/scraping/mod.rs
@@ -14,10 +14,7 @@
 // You should have received a copy of the GNU General Public License
 // along with Polkadot.  If not, see <http://www.gnu.org/licenses/>.
 
-use std::{
-	collections::{BTreeMap, HashSet},
-	num::NonZeroUsize,
-};
+use std::num::NonZeroUsize;
 
 use futures::channel::oneshot;
 use lru::LruCache;
@@ -40,6 +37,8 @@ use crate::{
 #[cfg(test)]
 mod tests;
 
+mod candidates;
+
 /// Number of hashes to keep in the LRU.
 ///
 ///
@@ -58,18 +57,21 @@ const LRU_OBSERVED_BLOCKS_CAPACITY: NonZeroUsize = match NonZeroUsize::new(20) {
 ///
 /// Concretely:
 ///
-/// - Monitors for inclusion events to keep track of candidates that have been included on chains.
+/// - Monitors for `CandidateIncluded` events to keep track of candidates that have been
+///   included on chains.
+/// - Monitors for `CandidateBacked` events to keep track of all backed candidates.
 /// - Calls `FetchOnChainVotes` for each block to gather potentially missed votes from chain.
 ///
 /// With this information it provides a `CandidateComparator` and as a return value of
 /// `process_active_leaves_update` any scraped votes.
+///
+/// Scraped candidates are available `CANDIDATE_LIFETIME_AFTER_FINALIZATION` more blocks
+/// after finalization as a precaution not to prune them prematurely.
 pub struct ChainScraper {
 	/// All candidates we have seen included, which not yet have been finalized.
-	included_candidates: HashSet<CandidateHash>,
-	/// including block -> `CandidateHash`
-	///
-	/// We need this to clean up `included_candidates` on finalization.
-	candidates_by_block_number: BTreeMap<BlockNumber, HashSet<CandidateHash>>,
+	included_candidates: candidates::ScrapedCandidates,
+	/// All candidates we have seen backed
+	backed_candidates: candidates::ScrapedCandidates,
 	/// Latest relay blocks observed by the provider.
 	///
 	/// We assume that ancestors of cached blocks are already processed, i.e. we have saved
@@ -85,6 +87,16 @@ impl ChainScraper {
 	/// As long as we have `MAX_FINALITY_LAG` this makes sense as a value.
 	pub(crate) const ANCESTRY_SIZE_LIMIT: u32 = MAX_FINALITY_LAG;
 
+	/// How many blocks after finalization a backed/included candidate should be kept.
+	/// We don't want to remove scraped candidates on finalization because we want to
+	/// be sure that disputes will conclude on abandoned forks.
+	/// Removing the candidate on finalization creates a possibility for an attacker to
+	/// avoid slashing. If a bad fork is abandoned too quickly because in the same another
+	/// better one gets finalized the entries for the bad fork will be pruned and we
+	/// will never participate in a dispute for it. We want such disputes to conclude
+	/// in a timely manner so that the offenders are slashed.
+	pub(crate) const CANDIDATE_LIFETIME_AFTER_FINALIZATION: BlockNumber = 2;
+
 	/// Create a properly initialized `OrderingProvider`.
 	///
 	/// Returns: `Self` and any scraped votes.
@@ -96,8 +108,8 @@ impl ChainScraper {
 		Sender: overseer::DisputeCoordinatorSenderTrait,
 	{
 		let mut s = Self {
-			included_candidates: HashSet::new(),
-			candidates_by_block_number: BTreeMap::new(),
+			included_candidates: candidates::ScrapedCandidates::new(),
+			backed_candidates: candidates::ScrapedCandidates::new(),
 			last_observed_blocks: LruCache::new(LRU_OBSERVED_BLOCKS_CAPACITY),
 		};
 		let update =
@@ -107,10 +119,15 @@ impl ChainScraper {
 	}
 
 	/// Check whether we have seen a candidate included on any chain.
-	pub fn is_candidate_included(&mut self, candidate_hash: &CandidateHash) -> bool {
+	pub fn is_candidate_included(&self, candidate_hash: &CandidateHash) -> bool {
 		self.included_candidates.contains(candidate_hash)
 	}
 
+	/// Check whether the candidate is backed
+	pub fn is_candidate_backed(&self, candidate_hash: &CandidateHash) -> bool {
+		self.backed_candidates.contains(candidate_hash)
+	}
+
 	/// Query active leaves for any candidate `CandidateEvent::CandidateIncluded` events.
 	///
 	/// and updates current heads, so we can query candidates for all non finalized blocks.
@@ -120,7 +137,7 @@ impl ChainScraper {
 		&mut self,
 		sender: &mut Sender,
 		update: &ActiveLeavesUpdate,
-	) -> crate::error::Result<Vec<ScrapedOnChainVotes>>
+	) -> Result<Vec<ScrapedOnChainVotes>>
 	where
 		Sender: overseer::DisputeCoordinatorSenderTrait,
 	{
@@ -158,21 +175,27 @@ impl ChainScraper {
 
 	/// Prune finalized candidates.
 	///
-	/// Once a candidate lives in a relay chain block that's behind the finalized chain/got
-	/// finalized, we can treat it as low priority.
-	pub fn process_finalized_block(&mut self, finalized: &BlockNumber) {
-		let not_finalized = self.candidates_by_block_number.split_off(finalized);
-		let finalized = std::mem::take(&mut self.candidates_by_block_number);
-		self.candidates_by_block_number = not_finalized;
-		// Clean up finalized:
-		for finalized_candidate in finalized.into_values().flatten() {
-			self.included_candidates.remove(&finalized_candidate);
+	/// We keep each candidate for `CANDIDATE_LIFETIME_AFTER_FINALIZATION` blocks after finalization.
+	/// After that we treat it as low priority.
+	pub fn process_finalized_block(&mut self, finalized_block_number: &BlockNumber) {
+		// `CANDIDATE_LIFETIME_AFTER_FINALIZATION - 1` because `finalized_block_number`counts to the
+		// candidate lifetime.
+		match finalized_block_number.checked_sub(Self::CANDIDATE_LIFETIME_AFTER_FINALIZATION - 1) {
+			Some(key_to_prune) => {
+				self.backed_candidates.remove_up_to_height(&key_to_prune);
+				self.included_candidates.remove_up_to_height(&key_to_prune);
+			},
+			None => {
+				// Nothing to prune. We are still in the beginning of the chain and there are not
+				// enough finalized blocks yet.
+			},
 		}
+		{}
 	}
 
 	/// Process candidate events of a block.
 	///
-	/// Keep track of all included candidates.
+	/// Keep track of all included and backed candidates.
 	async fn process_candidate_events<Sender>(
 		&mut self,
 		sender: &mut Sender,
@@ -182,28 +205,33 @@ impl ChainScraper {
 	where
 		Sender: overseer::DisputeCoordinatorSenderTrait,
 	{
-		// Get included events:
-		let included =
-			get_candidate_events(sender, block_hash)
-				.await?
-				.into_iter()
-				.filter_map(|ev| match ev {
-					CandidateEvent::CandidateIncluded(receipt, _, _, _) => Some(receipt),
-					_ => None,
-				});
-		for receipt in included {
-			let candidate_hash = receipt.hash();
-			gum::trace!(
-				target: LOG_TARGET,
-				?candidate_hash,
-				?block_number,
-				"Processing included event"
-			);
-			self.included_candidates.insert(candidate_hash);
-			self.candidates_by_block_number
-				.entry(block_number)
-				.or_default()
-				.insert(candidate_hash);
+		// Get included and backed events:
+		for ev in get_candidate_events(sender, block_hash).await? {
+			match ev {
+				CandidateEvent::CandidateIncluded(receipt, _, _, _) => {
+					let candidate_hash = receipt.hash();
+					gum::trace!(
+						target: LOG_TARGET,
+						?candidate_hash,
+						?block_number,
+						"Processing included event"
+					);
+					self.included_candidates.insert(block_number, candidate_hash);
+				},
+				CandidateEvent::CandidateBacked(receipt, _, _, _) => {
+					let candidate_hash = receipt.hash();
+					gum::trace!(
+						target: LOG_TARGET,
+						?candidate_hash,
+						?block_number,
+						"Processing backed event"
+					);
+					self.backed_candidates.insert(block_number, candidate_hash);
+				},
+				_ => {
+					// skip the rest
+				},
+			}
 		}
 		Ok(())
 	}
diff --git a/node/core/dispute-coordinator/src/scraping/tests.rs b/node/core/dispute-coordinator/src/scraping/tests.rs
index b6b5a1f633bf..6251891af5a3 100644
--- a/node/core/dispute-coordinator/src/scraping/tests.rs
+++ b/node/core/dispute-coordinator/src/scraping/tests.rs
@@ -73,7 +73,12 @@ impl TestState {
 			assert_finalized_block_number_request(&mut ctx_handle, finalized_block_number).await;
 			gum::trace!(target: LOG_TARGET, "After assert_finalized_block_number");
 			// No ancestors requests, as list would be empty.
-			assert_candidate_events_request(&mut ctx_handle, &chain).await;
+			assert_candidate_events_request(
+				&mut ctx_handle,
+				&chain,
+				get_backed_and_included_candidate_events,
+			)
+			.await;
 			assert_chain_vote_request(&mut ctx_handle, &chain).await;
 		};
 
@@ -112,6 +117,10 @@ async fn process_active_leaves_update(
 		.unwrap();
 }
 
+fn process_finalized_block(scraper: &mut ChainScraper, finalized: &BlockNumber) {
+	scraper.process_finalized_block(&finalized)
+}
+
 fn make_candidate_receipt(relay_parent: Hash) -> CandidateReceipt {
 	let zeros = dummy_hash();
 	let descriptor = CandidateDescriptor {
@@ -145,16 +154,66 @@ fn get_block_number_hash(n: BlockNumber) -> Hash {
 }
 
 /// Get a dummy event that corresponds to candidate inclusion for the given block number.
-fn get_candidate_included_events(block_number: BlockNumber) -> Vec<CandidateEvent> {
-	vec![CandidateEvent::CandidateIncluded(
-		make_candidate_receipt(get_block_number_hash(block_number)),
+fn get_backed_and_included_candidate_events(block_number: BlockNumber) -> Vec<CandidateEvent> {
+	let candidate_receipt = make_candidate_receipt(get_block_number_hash(block_number));
+	vec![
+		CandidateEvent::CandidateIncluded(
+			candidate_receipt.clone(),
+			HeadData::default(),
+			CoreIndex::from(0),
+			GroupIndex::from(0),
+		),
+		CandidateEvent::CandidateBacked(
+			candidate_receipt,
+			HeadData::default(),
+			CoreIndex::from(0),
+			GroupIndex::from(0),
+		),
+	]
+}
+
+fn get_backed_candidate_event(block_number: BlockNumber) -> Vec<CandidateEvent> {
+	let candidate_receipt = make_candidate_receipt(get_block_number_hash(block_number));
+	vec![CandidateEvent::CandidateBacked(
+		candidate_receipt,
 		HeadData::default(),
 		CoreIndex::from(0),
 		GroupIndex::from(0),
 	)]
 }
+/// Hash for a 'magic' candidate. This is meant to be a special candidate used to verify special cases.
+fn get_magic_candidate_hash() -> Hash {
+	BlakeTwo256::hash(&"abc".encode())
+}
+/// Get a dummy event that corresponds to candidate inclusion for a hardcoded block number.
+/// Used to simulate candidates included multiple times at different block heights.
+fn get_backed_and_included_magic_candidate_events(
+	_block_number: BlockNumber,
+) -> Vec<CandidateEvent> {
+	let candidate_receipt = make_candidate_receipt(get_magic_candidate_hash());
+	vec![
+		CandidateEvent::CandidateIncluded(
+			candidate_receipt.clone(),
+			HeadData::default(),
+			CoreIndex::from(0),
+			GroupIndex::from(0),
+		),
+		CandidateEvent::CandidateBacked(
+			candidate_receipt,
+			HeadData::default(),
+			CoreIndex::from(0),
+			GroupIndex::from(0),
+		),
+	]
+}
 
-async fn assert_candidate_events_request(virtual_overseer: &mut VirtualOverseer, chain: &[Hash]) {
+async fn assert_candidate_events_request<F>(
+	virtual_overseer: &mut VirtualOverseer,
+	chain: &[Hash],
+	event_generator: F,
+) where
+	F: Fn(u32) -> Vec<CandidateEvent>,
+{
 	assert_matches!(
 		overseer_recv(virtual_overseer).await,
 		AllMessages::RuntimeApi(RuntimeApiMessage::Request(
@@ -163,7 +222,7 @@ async fn assert_candidate_events_request(virtual_overseer: &mut VirtualOverseer,
 		)) => {
 			let maybe_block_number = chain.iter().position(|h| *h == hash);
 			let response = maybe_block_number
-				.map(|num| get_candidate_included_events(num as u32))
+				.map(|num| event_generator(num as u32))
 				.unwrap_or_default();
 			tx.send(Ok(response)).unwrap();
 		}
@@ -207,12 +266,15 @@ async fn assert_block_ancestors_request(virtual_overseer: &mut VirtualOverseer,
 	);
 }
 
-async fn overseer_process_active_leaves_update(
+async fn overseer_process_active_leaves_update<F>(
 	virtual_overseer: &mut VirtualOverseer,
 	chain: &[Hash],
 	finalized_block: BlockNumber,
 	expected_ancestry_len: usize,
-) {
+	event_generator: F,
+) where
+	F: Fn(u32) -> Vec<CandidateEvent> + Clone,
+{
 	// Before walking through ancestors provider requests latest finalized block number.
 	assert_finalized_block_number_request(virtual_overseer, finalized_block).await;
 	// Expect block ancestors requests with respect to the ancestry step.
@@ -221,7 +283,7 @@ async fn overseer_process_active_leaves_update(
 	}
 	// For each ancestry and the head return corresponding candidates inclusions.
 	for _ in 0..expected_ancestry_len {
-		assert_candidate_events_request(virtual_overseer, chain).await;
+		assert_candidate_events_request(virtual_overseer, chain, event_generator.clone()).await;
 		assert_chain_vote_request(virtual_overseer, chain).await;
 	}
 }
@@ -236,7 +298,9 @@ fn scraper_provides_included_state_when_initialized() {
 		let TestState { mut chain, mut scraper, mut ctx } = state;
 
 		assert!(!scraper.is_candidate_included(&candidate_2.hash()));
+		assert!(!scraper.is_candidate_backed(&candidate_2.hash()));
 		assert!(scraper.is_candidate_included(&candidate_1.hash()));
+		assert!(scraper.is_candidate_backed(&candidate_1.hash()));
 
 		// After next active leaves update we should see the candidate included.
 		let next_update = next_leaf(&mut chain);
@@ -248,11 +312,13 @@ fn scraper_provides_included_state_when_initialized() {
 			&chain,
 			finalized_block_number,
 			expected_ancestry_len,
+			get_backed_and_included_candidate_events,
 		);
 		join(process_active_leaves_update(ctx.sender(), &mut scraper, next_update), overseer_fut)
 			.await;
 
 		assert!(scraper.is_candidate_included(&candidate_2.hash()));
+		assert!(scraper.is_candidate_backed(&candidate_2.hash()));
 	});
 }
 
@@ -274,6 +340,7 @@ fn scraper_requests_candidates_of_leaf_ancestors() {
 			&chain,
 			finalized_block_number,
 			BLOCKS_TO_SKIP,
+			get_backed_and_included_candidate_events,
 		);
 		join(process_active_leaves_update(ctx.sender(), &mut scraper, next_update), overseer_fut)
 			.await;
@@ -282,6 +349,7 @@ fn scraper_requests_candidates_of_leaf_ancestors() {
 		for block_number in 1..next_block_number {
 			let candidate = make_candidate_receipt(get_block_number_hash(block_number));
 			assert!(scraper.is_candidate_included(&candidate.hash()));
+			assert!(scraper.is_candidate_backed(&candidate.hash()));
 		}
 	});
 }
@@ -304,6 +372,7 @@ fn scraper_requests_candidates_of_non_cached_ancestors() {
 			&chain,
 			finalized_block_number,
 			BLOCKS_TO_SKIP[0],
+			get_backed_and_included_candidate_events,
 		);
 		join(process_active_leaves_update(ctx.sender(), &mut ordering, next_update), overseer_fut)
 			.await;
@@ -315,6 +384,7 @@ fn scraper_requests_candidates_of_non_cached_ancestors() {
 			&chain,
 			finalized_block_number,
 			BLOCKS_TO_SKIP[1],
+			get_backed_and_included_candidate_events,
 		);
 		join(process_active_leaves_update(ctx.sender(), &mut ordering, next_update), overseer_fut)
 			.await;
@@ -340,8 +410,170 @@ fn scraper_requests_candidates_of_non_finalized_ancestors() {
 			&chain,
 			finalized_block_number,
 			BLOCKS_TO_SKIP - finalized_block_number as usize, // Expect the provider not to go past finalized block.
+			get_backed_and_included_candidate_events,
 		);
 		join(process_active_leaves_update(ctx.sender(), &mut ordering, next_update), overseer_fut)
 			.await;
 	});
 }
+
+#[test]
+fn scraper_prunes_finalized_candidates() {
+	const TEST_TARGET_BLOCK_NUMBER: BlockNumber = 2;
+
+	// How many blocks should we skip before sending a leaf update.
+	const BLOCKS_TO_SKIP: usize = 3;
+
+	futures::executor::block_on(async {
+		let (state, mut virtual_overseer) = TestState::new().await;
+
+		let TestState { mut chain, mut scraper, mut ctx } = state;
+
+		// 1 because `TestState` starts at leaf 1.
+		let next_update = (1..BLOCKS_TO_SKIP).map(|_| next_leaf(&mut chain)).last().unwrap();
+
+		let mut finalized_block_number = 1;
+		let expected_ancestry_len = BLOCKS_TO_SKIP - finalized_block_number as usize;
+		let overseer_fut = overseer_process_active_leaves_update(
+			&mut virtual_overseer,
+			&chain,
+			finalized_block_number,
+			expected_ancestry_len,
+			|block_num| {
+				if block_num == TEST_TARGET_BLOCK_NUMBER {
+					get_backed_and_included_candidate_events(block_num)
+				} else {
+					vec![]
+				}
+			},
+		);
+		join(process_active_leaves_update(ctx.sender(), &mut scraper, next_update), overseer_fut)
+			.await;
+
+		let candidate = make_candidate_receipt(get_block_number_hash(TEST_TARGET_BLOCK_NUMBER));
+
+		// After `CANDIDATE_LIFETIME_AFTER_FINALIZATION` blocks the candidate should be removed
+		finalized_block_number =
+			TEST_TARGET_BLOCK_NUMBER + ChainScraper::CANDIDATE_LIFETIME_AFTER_FINALIZATION;
+		process_finalized_block(&mut scraper, &finalized_block_number);
+
+		assert!(!scraper.is_candidate_backed(&candidate.hash()));
+		assert!(!scraper.is_candidate_included(&candidate.hash()));
+	});
+}
+
+#[test]
+fn scraper_handles_backed_but_not_included_candidate() {
+	const TEST_TARGET_BLOCK_NUMBER: BlockNumber = 2;
+
+	// How many blocks should we skip before sending a leaf update.
+	const BLOCKS_TO_SKIP: usize = 3;
+
+	futures::executor::block_on(async {
+		let (state, mut virtual_overseer) = TestState::new().await;
+
+		let TestState { mut chain, mut scraper, mut ctx } = state;
+
+		let next_update = (1..BLOCKS_TO_SKIP as BlockNumber)
+			.map(|_| next_leaf(&mut chain))
+			.last()
+			.unwrap();
+
+		// Add `ActiveLeavesUpdate` containing `CandidateBacked` event for block `BLOCK_WITH_EVENTS`
+		let mut finalized_block_number = 1;
+		let expected_ancestry_len = BLOCKS_TO_SKIP - finalized_block_number as usize;
+		let overseer_fut = overseer_process_active_leaves_update(
+			&mut virtual_overseer,
+			&chain,
+			finalized_block_number,
+			expected_ancestry_len,
+			|block_num| {
+				if block_num == TEST_TARGET_BLOCK_NUMBER {
+					get_backed_candidate_event(block_num)
+				} else {
+					vec![]
+				}
+			},
+		);
+		join(process_active_leaves_update(ctx.sender(), &mut scraper, next_update), overseer_fut)
+			.await;
+
+		// Finalize blocks to enforce pruning of scraped events
+		finalized_block_number += 1;
+		process_finalized_block(&mut scraper, &finalized_block_number);
+
+		// `FIRST_TEST_BLOCK` is finalized, which is within `BACKED_CANDIDATE_LIFETIME_AFTER_FINALIZATION` window.
+		// The candidate should still be backed.
+		let candidate = make_candidate_receipt(get_block_number_hash(TEST_TARGET_BLOCK_NUMBER));
+		assert!(!scraper.is_candidate_included(&candidate.hash()));
+		assert!(scraper.is_candidate_backed(&candidate.hash()));
+
+		// Bump the finalized block outside `BACKED_CANDIDATE_LIFETIME_AFTER_FINALIZATION`.
+		// The candidate should be removed.
+		assert!(
+			finalized_block_number <
+				TEST_TARGET_BLOCK_NUMBER + ChainScraper::CANDIDATE_LIFETIME_AFTER_FINALIZATION
+		);
+		finalized_block_number +=
+			TEST_TARGET_BLOCK_NUMBER + ChainScraper::CANDIDATE_LIFETIME_AFTER_FINALIZATION;
+		process_finalized_block(&mut scraper, &finalized_block_number);
+
+		assert!(!scraper.is_candidate_included(&candidate.hash()));
+		assert!(!scraper.is_candidate_backed(&candidate.hash()));
+	});
+}
+
+#[test]
+fn scraper_handles_the_same_candidate_incuded_in_two_different_block_heights() {
+	// Same candidate will be inclued in these two leaves
+	let test_targets = vec![2, 3];
+
+	// How many blocks should we skip before sending a leaf update.
+	const BLOCKS_TO_SKIP: usize = 3;
+
+	futures::executor::block_on(async {
+		let (state, mut virtual_overseer) = TestState::new().await;
+
+		let TestState { mut chain, mut scraper, mut ctx } = state;
+
+		// 1 because `TestState` starts at leaf 1.
+		let next_update = (1..BLOCKS_TO_SKIP).map(|_| next_leaf(&mut chain)).last().unwrap();
+
+		// Now we will add the same magic candidate at two different block heights.
+		// Check `get_backed_and_included_magic_candidate_event` implementation
+		let mut finalized_block_number = 1;
+		let expected_ancestry_len = BLOCKS_TO_SKIP - finalized_block_number as usize;
+		let overseer_fut = overseer_process_active_leaves_update(
+			&mut virtual_overseer,
+			&chain,
+			finalized_block_number,
+			expected_ancestry_len,
+			|block_num| {
+				if test_targets.contains(&block_num) {
+					get_backed_and_included_magic_candidate_events(block_num)
+				} else {
+					vec![]
+				}
+			},
+		);
+		join(process_active_leaves_update(ctx.sender(), &mut scraper, next_update), overseer_fut)
+			.await;
+
+		// Finalize blocks to enforce pruning of scraped events.
+		// The magic candidate was added twice, so it shouldn't be removed if we finalize two more blocks.
+		finalized_block_number = test_targets.first().expect("there are two block nums") +
+			ChainScraper::CANDIDATE_LIFETIME_AFTER_FINALIZATION;
+		process_finalized_block(&mut scraper, &finalized_block_number);
+
+		let magic_candidate = make_candidate_receipt(get_magic_candidate_hash());
+		assert!(scraper.is_candidate_backed(&magic_candidate.hash()));
+		assert!(scraper.is_candidate_included(&magic_candidate.hash()));
+
+		// On the next finalization the magic candidate should be removed
+		finalized_block_number += 1;
+		process_finalized_block(&mut scraper, &finalized_block_number);
+
+		assert!(!scraper.is_candidate_backed(&magic_candidate.hash()));
+		assert!(!scraper.is_candidate_included(&magic_candidate.hash()));
+	});
+}
diff --git a/node/core/dispute-coordinator/src/tests.rs b/node/core/dispute-coordinator/src/tests.rs
index a1ad315d2ea0..d7208c1a59eb 100644
--- a/node/core/dispute-coordinator/src/tests.rs
+++ b/node/core/dispute-coordinator/src/tests.rs
@@ -57,10 +57,10 @@ use polkadot_node_subsystem::{
 };
 use polkadot_node_subsystem_test_helpers::{make_subsystem_context, TestSubsystemContextHandle};
 use polkadot_primitives::v2::{
-	ApprovalVote, BlockNumber, CandidateCommitments, CandidateHash, CandidateReceipt,
-	DisputeStatement, GroupIndex, Hash, Header, IndexedVec, MultiDisputeStatementSet,
-	ScrapedOnChainVotes, SessionIndex, SessionInfo, SigningContext, ValidDisputeStatementKind,
-	ValidatorId, ValidatorIndex, ValidatorSignature,
+	ApprovalVote, BlockNumber, CandidateCommitments, CandidateEvent, CandidateHash,
+	CandidateReceipt, CoreIndex, DisputeStatement, GroupIndex, Hash, HeadData, Header, IndexedVec,
+	MultiDisputeStatementSet, ScrapedOnChainVotes, SessionIndex, SessionInfo, SigningContext,
+	ValidDisputeStatementKind, ValidatorId, ValidatorIndex, ValidatorSignature,
 };
 
 use crate::{
@@ -212,6 +212,7 @@ impl TestState {
 		virtual_overseer: &mut VirtualOverseer,
 		session: SessionIndex,
 		block_number: BlockNumber,
+		candidate_events: Vec<CandidateEvent>,
 	) {
 		assert!(block_number > 0);
 
@@ -239,8 +240,14 @@ impl TestState {
 			)))
 			.await;
 
-		self.handle_sync_queries(virtual_overseer, block_hash, block_number, session)
-			.await;
+		self.handle_sync_queries(
+			virtual_overseer,
+			block_hash,
+			block_number,
+			session,
+			candidate_events,
+		)
+		.await;
 	}
 
 	async fn handle_sync_queries(
@@ -249,6 +256,7 @@ impl TestState {
 		block_hash: Hash,
 		block_number: BlockNumber,
 		session: SessionIndex,
+		candidate_events: Vec<CandidateEvent>,
 	) {
 		// Order of messages is not fixed (different on initializing):
 		#[derive(Debug)]
@@ -352,7 +360,7 @@ impl TestState {
 							_new_leaf,
 							RuntimeApiRequest::CandidateEvents(tx),
 							)) => {
-						tx.send(Ok(Vec::new())).unwrap();
+						tx.send(Ok(candidate_events.clone())).unwrap();
 					}
 					);
 					gum::trace!("After answering runtime api request");
@@ -401,8 +409,14 @@ impl TestState {
 				)))
 				.await;
 
-			self.handle_sync_queries(virtual_overseer, *leaf, n as BlockNumber, session)
-				.await;
+			self.handle_sync_queries(
+				virtual_overseer,
+				*leaf,
+				n as BlockNumber,
+				session,
+				Vec::new(),
+			)
+			.await;
 		}
 	}
 
@@ -556,6 +570,26 @@ fn make_invalid_candidate_receipt() -> CandidateReceipt {
 	dummy_candidate_receipt_bad_sig(Default::default(), Some(Default::default()))
 }
 
+// Generate a `CandidateBacked` event from a `CandidateReceipt`. The rest is dummy data.
+fn make_candidate_backed_event(candidate_receipt: CandidateReceipt) -> CandidateEvent {
+	CandidateEvent::CandidateBacked(
+		candidate_receipt,
+		HeadData(Vec::new()),
+		CoreIndex(0),
+		GroupIndex(0),
+	)
+}
+
+// Generate a `CandidateIncluded` event from a `CandidateReceipt`. The rest is dummy data.
+fn make_candidate_included_event(candidate_receipt: CandidateReceipt) -> CandidateEvent {
+	CandidateEvent::CandidateIncluded(
+		candidate_receipt,
+		HeadData(Vec::new()),
+		CoreIndex(0),
+		GroupIndex(0),
+	)
+}
+
 /// Handle request for approval votes:
 pub async fn handle_approval_vote_request(
 	ctx_handle: &mut VirtualOverseer,
@@ -587,7 +621,9 @@ fn too_many_unconfirmed_statements_are_considered_spam() {
 			let candidate_receipt2 = make_invalid_candidate_receipt();
 			let candidate_hash2 = candidate_receipt2.hash();
 
-			test_state.activate_leaf_at_session(&mut virtual_overseer, session, 1).await;
+			test_state
+				.activate_leaf_at_session(&mut virtual_overseer, session, 1, Vec::new())
+				.await;
 
 			let valid_vote1 = test_state
 				.issue_backing_statement_with_index(ValidatorIndex(3), candidate_hash1, session)
@@ -634,8 +670,9 @@ fn too_many_unconfirmed_statements_are_considered_spam() {
 			handle_approval_vote_request(&mut virtual_overseer, &candidate_hash1, HashMap::new())
 				.await;
 
-			// Participation has to fail, otherwise the dispute will be confirmed.
-			participation_missing_availability(&mut virtual_overseer).await;
+			// Participation has to fail here, otherwise the dispute will be confirmed. However
+			// participation won't happen at all because the dispute is neither backed, not confirmed
+			// nor the candidate is included. Or in other words - we'll refrain from participation.
 
 			{
 				let (tx, rx) = oneshot::channel();
@@ -718,7 +755,9 @@ fn approval_vote_import_works() {
 			let candidate_receipt1 = make_valid_candidate_receipt();
 			let candidate_hash1 = candidate_receipt1.hash();
 
-			test_state.activate_leaf_at_session(&mut virtual_overseer, session, 1).await;
+			test_state
+				.activate_leaf_at_session(&mut virtual_overseer, session, 1, Vec::new())
+				.await;
 
 			let valid_vote1 = test_state
 				.issue_backing_statement_with_index(ValidatorIndex(3), candidate_hash1, session)
@@ -762,8 +801,8 @@ fn approval_vote_import_works() {
 			handle_approval_vote_request(&mut virtual_overseer, &candidate_hash1, approval_votes)
 				.await;
 
-			// Participation has to fail, otherwise the dispute will be confirmed.
-			participation_missing_availability(&mut virtual_overseer).await;
+			// Participation won't happen here because the dispute is neither backed, not confirmed
+			// nor the candidate is included. Or in other words - we'll refrain from participation.
 
 			{
 				let (tx, rx) = oneshot::channel();
@@ -814,7 +853,17 @@ fn dispute_gets_confirmed_via_participation() {
 			let candidate_receipt2 = make_invalid_candidate_receipt();
 			let candidate_hash2 = candidate_receipt2.hash();
 
-			test_state.activate_leaf_at_session(&mut virtual_overseer, session, 1).await;
+			test_state
+				.activate_leaf_at_session(
+					&mut virtual_overseer,
+					session,
+					1,
+					vec![
+						make_candidate_backed_event(candidate_receipt1.clone()),
+						make_candidate_backed_event(candidate_receipt2.clone()),
+					],
+				)
+				.await;
 
 			let valid_vote1 = test_state
 				.issue_explicit_statement_with_index(
@@ -963,7 +1012,9 @@ fn dispute_gets_confirmed_at_byzantine_threshold() {
 			let candidate_receipt2 = make_invalid_candidate_receipt();
 			let candidate_hash2 = candidate_receipt2.hash();
 
-			test_state.activate_leaf_at_session(&mut virtual_overseer, session, 1).await;
+			test_state
+				.activate_leaf_at_session(&mut virtual_overseer, session, 1, Vec::new())
+				.await;
 
 			let valid_vote1 = test_state
 				.issue_explicit_statement_with_index(
@@ -1037,7 +1088,8 @@ fn dispute_gets_confirmed_at_byzantine_threshold() {
 			handle_approval_vote_request(&mut virtual_overseer, &candidate_hash1, HashMap::new())
 				.await;
 
-			participation_missing_availability(&mut virtual_overseer).await;
+			// Participation won't happen here because the dispute is neither backed, not confirmed
+			// nor the candidate is included. Or in other words - we'll refrain from participation.
 
 			{
 				let (tx, rx) = oneshot::channel();
@@ -1124,7 +1176,9 @@ fn backing_statements_import_works_and_no_spam() {
 			let candidate_receipt = make_valid_candidate_receipt();
 			let candidate_hash = candidate_receipt.hash();
 
-			test_state.activate_leaf_at_session(&mut virtual_overseer, session, 1).await;
+			test_state
+				.activate_leaf_at_session(&mut virtual_overseer, session, 1, Vec::new())
+				.await;
 
 			let valid_vote1 = test_state
 				.issue_backing_statement_with_index(ValidatorIndex(3), candidate_hash, session)
@@ -1187,6 +1241,15 @@ fn backing_statements_import_works_and_no_spam() {
 				.issue_backing_statement_with_index(ValidatorIndex(4), candidate_hash, session)
 				.await;
 
+			test_state
+				.activate_leaf_at_session(
+					&mut virtual_overseer,
+					session,
+					1,
+					vec![make_candidate_backed_event(candidate_receipt.clone())],
+				)
+				.await;
+
 			let (pending_confirmation, confirmation_rx) = oneshot::channel();
 			// Backing vote import should not have accounted to spam slots, so this should succeed
 			// as well:
@@ -1228,7 +1291,14 @@ fn conflicting_votes_lead_to_dispute_participation() {
 			let candidate_receipt = make_valid_candidate_receipt();
 			let candidate_hash = candidate_receipt.hash();
 
-			test_state.activate_leaf_at_session(&mut virtual_overseer, session, 1).await;
+			test_state
+				.activate_leaf_at_session(
+					&mut virtual_overseer,
+					session,
+					1,
+					vec![make_candidate_backed_event(candidate_receipt.clone())],
+				)
+				.await;
 
 			let valid_vote = test_state
 				.issue_explicit_statement_with_index(
@@ -1353,7 +1423,14 @@ fn positive_votes_dont_trigger_participation() {
 			let candidate_receipt = make_valid_candidate_receipt();
 			let candidate_hash = candidate_receipt.hash();
 
-			test_state.activate_leaf_at_session(&mut virtual_overseer, session, 1).await;
+			test_state
+				.activate_leaf_at_session(
+					&mut virtual_overseer,
+					session,
+					1,
+					vec![make_candidate_backed_event(candidate_receipt.clone())],
+				)
+				.await;
 
 			let valid_vote = test_state
 				.issue_explicit_statement_with_index(
@@ -1466,7 +1543,9 @@ fn wrong_validator_index_is_ignored() {
 			let candidate_receipt = make_valid_candidate_receipt();
 			let candidate_hash = candidate_receipt.hash();
 
-			test_state.activate_leaf_at_session(&mut virtual_overseer, session, 1).await;
+			test_state
+				.activate_leaf_at_session(&mut virtual_overseer, session, 1, Vec::new())
+				.await;
 
 			let valid_vote = test_state
 				.issue_explicit_statement_with_index(
@@ -1544,7 +1623,14 @@ fn finality_votes_ignore_disputed_candidates() {
 			let candidate_receipt = make_valid_candidate_receipt();
 			let candidate_hash = candidate_receipt.hash();
 
-			test_state.activate_leaf_at_session(&mut virtual_overseer, session, 1).await;
+			test_state
+				.activate_leaf_at_session(
+					&mut virtual_overseer,
+					session,
+					1,
+					vec![make_candidate_backed_event(candidate_receipt.clone())],
+				)
+				.await;
 
 			let valid_vote = test_state
 				.issue_explicit_statement_with_index(
@@ -1654,7 +1740,14 @@ fn supermajority_valid_dispute_may_be_finalized() {
 			let candidate_receipt = make_valid_candidate_receipt();
 			let candidate_hash = candidate_receipt.hash();
 
-			test_state.activate_leaf_at_session(&mut virtual_overseer, session, 1).await;
+			test_state
+				.activate_leaf_at_session(
+					&mut virtual_overseer,
+					session,
+					1,
+					vec![make_candidate_backed_event(candidate_receipt.clone())],
+				)
+				.await;
 
 			let supermajority_threshold =
 				polkadot_primitives::v2::supermajority_threshold(test_state.validators.len());
@@ -1794,7 +1887,14 @@ fn concluded_supermajority_for_non_active_after_time() {
 			let candidate_receipt = make_valid_candidate_receipt();
 			let candidate_hash = candidate_receipt.hash();
 
-			test_state.activate_leaf_at_session(&mut virtual_overseer, session, 1).await;
+			test_state
+				.activate_leaf_at_session(
+					&mut virtual_overseer,
+					session,
+					1,
+					vec![make_candidate_backed_event(candidate_receipt.clone())],
+				)
+				.await;
 
 			let supermajority_threshold =
 				polkadot_primitives::v2::supermajority_threshold(test_state.validators.len());
@@ -1912,7 +2012,14 @@ fn concluded_supermajority_against_non_active_after_time() {
 
 			let candidate_hash = candidate_receipt.hash();
 
-			test_state.activate_leaf_at_session(&mut virtual_overseer, session, 1).await;
+			test_state
+				.activate_leaf_at_session(
+					&mut virtual_overseer,
+					session,
+					1,
+					vec![make_candidate_backed_event(candidate_receipt.clone())],
+				)
+				.await;
 
 			let supermajority_threshold =
 				polkadot_primitives::v2::supermajority_threshold(test_state.validators.len());
@@ -2036,7 +2143,9 @@ fn resume_dispute_without_local_statement() {
 			let candidate_receipt = make_valid_candidate_receipt();
 			let candidate_hash = candidate_receipt.hash();
 
-			test_state.activate_leaf_at_session(&mut virtual_overseer, session, 1).await;
+			test_state
+				.activate_leaf_at_session(&mut virtual_overseer, session, 1, Vec::new())
+				.await;
 
 			let valid_vote = test_state
 				.issue_explicit_statement_with_index(
@@ -2074,7 +2183,8 @@ fn resume_dispute_without_local_statement() {
 				.await;
 
 			// Missing availability -> No local vote.
-			participation_missing_availability(&mut virtual_overseer).await;
+			// Participation won't happen here because the dispute is neither backed, not confirmed
+			// nor the candidate is included. Or in other words - we'll refrain from participation.
 
 			assert_eq!(confirmation_rx.await, Ok(ImportStatementsResult::ValidImport));
 
@@ -2216,7 +2326,14 @@ fn resume_dispute_with_local_statement() {
 			let candidate_receipt = make_valid_candidate_receipt();
 			let candidate_hash = candidate_receipt.hash();
 
-			test_state.activate_leaf_at_session(&mut virtual_overseer, session, 1).await;
+			test_state
+				.activate_leaf_at_session(
+					&mut virtual_overseer,
+					session,
+					1,
+					vec![make_candidate_backed_event(candidate_receipt.clone())],
+				)
+				.await;
 
 			let local_valid_vote = test_state
 				.issue_explicit_statement_with_index(
@@ -2315,7 +2432,9 @@ fn resume_dispute_without_local_statement_or_local_key() {
 				let candidate_receipt = make_valid_candidate_receipt();
 				let candidate_hash = candidate_receipt.hash();
 
-				test_state.activate_leaf_at_session(&mut virtual_overseer, session, 1).await;
+				test_state
+					.activate_leaf_at_session(&mut virtual_overseer, session, 1, Vec::new())
+					.await;
 
 				let valid_vote = test_state
 					.issue_explicit_statement_with_index(
@@ -2408,7 +2527,9 @@ fn resume_dispute_with_local_statement_without_local_key() {
 			let candidate_receipt = make_valid_candidate_receipt();
 			let candidate_hash = candidate_receipt.hash();
 
-			test_state.activate_leaf_at_session(&mut virtual_overseer, session, 1).await;
+			test_state
+				.activate_leaf_at_session(&mut virtual_overseer, session, 1, Vec::new())
+				.await;
 
 			let local_valid_vote = test_state
 				.issue_explicit_statement_with_index(
@@ -2517,7 +2638,9 @@ fn issue_local_statement_does_cause_distribution_but_not_duplicate_participation
 			let candidate_receipt = make_valid_candidate_receipt();
 			let candidate_hash = candidate_receipt.hash();
 
-			test_state.activate_leaf_at_session(&mut virtual_overseer, session, 1).await;
+			test_state
+				.activate_leaf_at_session(&mut virtual_overseer, session, 1, Vec::new())
+				.await;
 
 			let other_vote = test_state
 				.issue_explicit_statement_with_index(
@@ -2590,7 +2713,9 @@ fn own_approval_vote_gets_distributed_on_dispute() {
 			let candidate_receipt = make_valid_candidate_receipt();
 			let candidate_hash = candidate_receipt.hash();
 
-			test_state.activate_leaf_at_session(&mut virtual_overseer, session, 1).await;
+			test_state
+				.activate_leaf_at_session(&mut virtual_overseer, session, 1, Vec::new())
+				.await;
 
 			let statement = test_state.issue_approval_vote_with_index(
 				ValidatorIndex(0),
@@ -2681,7 +2806,9 @@ fn negative_issue_local_statement_only_triggers_import() {
 			let candidate_receipt = make_invalid_candidate_receipt();
 			let candidate_hash = candidate_receipt.hash();
 
-			test_state.activate_leaf_at_session(&mut virtual_overseer, session, 1).await;
+			test_state
+				.activate_leaf_at_session(&mut virtual_overseer, session, 1, Vec::new())
+				.await;
 
 			virtual_overseer
 				.send(FromOrchestra::Communication {
@@ -2729,7 +2856,9 @@ fn redundant_votes_ignored() {
 			let candidate_receipt = make_valid_candidate_receipt();
 			let candidate_hash = candidate_receipt.hash();
 
-			test_state.activate_leaf_at_session(&mut virtual_overseer, session, 1).await;
+			test_state
+				.activate_leaf_at_session(&mut virtual_overseer, session, 1, Vec::new())
+				.await;
 
 			let valid_vote = test_state
 				.issue_backing_statement_with_index(ValidatorIndex(1), candidate_hash, session)
@@ -2787,3 +2916,195 @@ fn redundant_votes_ignored() {
 		})
 	});
 }
+
+#[test]
+fn refrain_from_participation() {
+	test_harness(|mut test_state, mut virtual_overseer| {
+		Box::pin(async move {
+			let session = 1;
+
+			test_state.handle_resume_sync(&mut virtual_overseer, session).await;
+
+			let candidate_receipt = make_valid_candidate_receipt();
+			let candidate_hash = candidate_receipt.hash();
+
+			// activate leaf - no backing/included event
+			test_state
+				.activate_leaf_at_session(&mut virtual_overseer, session, 1, Vec::new())
+				.await;
+
+			// generate two votes
+			let valid_vote = test_state
+				.issue_explicit_statement_with_index(
+					ValidatorIndex(1),
+					candidate_hash,
+					session,
+					true,
+				)
+				.await;
+
+			let invalid_vote = test_state
+				.issue_explicit_statement_with_index(
+					ValidatorIndex(2),
+					candidate_hash,
+					session,
+					false,
+				)
+				.await;
+
+			virtual_overseer
+				.send(FromOrchestra::Communication {
+					msg: DisputeCoordinatorMessage::ImportStatements {
+						candidate_receipt: candidate_receipt.clone(),
+						session,
+						statements: vec![
+							(valid_vote, ValidatorIndex(1)),
+							(invalid_vote, ValidatorIndex(2)),
+						],
+						pending_confirmation: None,
+					},
+				})
+				.await;
+
+			handle_approval_vote_request(&mut virtual_overseer, &candidate_hash, HashMap::new())
+				.await;
+
+			{
+				let (tx, rx) = oneshot::channel();
+				virtual_overseer
+					.send(FromOrchestra::Communication {
+						msg: DisputeCoordinatorMessage::ActiveDisputes(tx),
+					})
+					.await;
+
+				assert_eq!(rx.await.unwrap().len(), 1);
+
+				let (tx, rx) = oneshot::channel();
+				virtual_overseer
+					.send(FromOrchestra::Communication {
+						msg: DisputeCoordinatorMessage::QueryCandidateVotes(
+							vec![(session, candidate_hash)],
+							tx,
+						),
+					})
+					.await;
+
+				let (_, _, votes) = rx.await.unwrap().get(0).unwrap().clone();
+				assert_eq!(votes.valid.len(), 1);
+				assert_eq!(votes.invalid.len(), 1);
+			}
+
+			// activate leaf - no backing event
+			test_state
+				.activate_leaf_at_session(&mut virtual_overseer, session, 1, Vec::new())
+				.await;
+
+			virtual_overseer.send(FromOrchestra::Signal(OverseerSignal::Conclude)).await;
+
+			// confirm that no participation request is made.
+			assert!(virtual_overseer.try_recv().await.is_none());
+
+			test_state
+		})
+	});
+}
+
+/// We have got no `participation_for_backed_candidates` test because most of the other tests (e.g.
+/// `dispute_gets_confirmed_via_participation`, `backing_statements_import_works_and_no_spam`) use
+/// candidate backing event to trigger participation. If they pass - that case works.
+#[test]
+fn participation_for_included_candidates() {
+	test_harness(|mut test_state, mut virtual_overseer| {
+		Box::pin(async move {
+			let session = 1;
+
+			test_state.handle_resume_sync(&mut virtual_overseer, session).await;
+
+			let candidate_receipt = make_valid_candidate_receipt();
+			let candidate_hash = candidate_receipt.hash();
+
+			// activate leaf - with candidate included event
+			test_state
+				.activate_leaf_at_session(
+					&mut virtual_overseer,
+					session,
+					1,
+					vec![make_candidate_included_event(candidate_receipt.clone())],
+				)
+				.await;
+
+			// generate two votes
+			let valid_vote = test_state
+				.issue_explicit_statement_with_index(
+					ValidatorIndex(1),
+					candidate_hash,
+					session,
+					true,
+				)
+				.await;
+
+			let invalid_vote = test_state
+				.issue_explicit_statement_with_index(
+					ValidatorIndex(2),
+					candidate_hash,
+					session,
+					false,
+				)
+				.await;
+
+			virtual_overseer
+				.send(FromOrchestra::Communication {
+					msg: DisputeCoordinatorMessage::ImportStatements {
+						candidate_receipt: candidate_receipt.clone(),
+						session,
+						statements: vec![
+							(valid_vote, ValidatorIndex(1)),
+							(invalid_vote, ValidatorIndex(2)),
+						],
+						pending_confirmation: None,
+					},
+				})
+				.await;
+
+			handle_approval_vote_request(&mut virtual_overseer, &candidate_hash, HashMap::new())
+				.await;
+
+			participation_with_distribution(
+				&mut virtual_overseer,
+				&candidate_hash,
+				candidate_receipt.commitments_hash,
+			)
+			.await;
+
+			{
+				let (tx, rx) = oneshot::channel();
+				virtual_overseer
+					.send(FromOrchestra::Communication {
+						msg: DisputeCoordinatorMessage::ActiveDisputes(tx),
+					})
+					.await;
+
+				assert_eq!(rx.await.unwrap().len(), 1);
+
+				// check if we have participated (casted a vote)
+				let (tx, rx) = oneshot::channel();
+				virtual_overseer
+					.send(FromOrchestra::Communication {
+						msg: DisputeCoordinatorMessage::QueryCandidateVotes(
+							vec![(session, candidate_hash)],
+							tx,
+						),
+					})
+					.await;
+
+				let (_, _, votes) = rx.await.unwrap().get(0).unwrap().clone();
+				assert_eq!(votes.valid.len(), 2); // 2 => we have participated
+				assert_eq!(votes.invalid.len(), 1);
+			}
+
+			virtual_overseer.send(FromOrchestra::Signal(OverseerSignal::Conclude)).await;
+
+			test_state
+		})
+	});
+}
diff --git a/roadmap/implementers-guide/src/node/disputes/dispute-coordinator.md b/roadmap/implementers-guide/src/node/disputes/dispute-coordinator.md
index 29a3c5ffa082..de934547f228 100644
--- a/roadmap/implementers-guide/src/node/disputes/dispute-coordinator.md
+++ b/roadmap/implementers-guide/src/node/disputes/dispute-coordinator.md
@@ -139,7 +139,7 @@ There are two potential caveats with this though:
    dispute concludes in all cases? The answer is nuanced, but in general we
    cannot rely on it. The problem is first, that finalization and
    approval-voting is an off-chain process so there is no global consensus: As
-   soon as at least f+1 honest (f= n/3, where n is the number of
+   soon as at least f+1 honest (f=n/3, where n is the number of
    validators/nodes) nodes have seen the dispute conclude, finalization will
    take place and approval votes will be cleared. This would still be fine, if
    we had some guarantees that those honest nodes will be able to include those
@@ -210,7 +210,7 @@ among nodes which includes current block producers (current authority set) which
 is an important property: If the dispute carries on across an era change, we
 need to ensure that the new validator set will learn about any disputes and
 their votes, so they can put that information on chain. Dispute-distribution
-luckily has this property and sends votes to the current authority set always.
+luckily has this property and always sends votes to the current authority set.
 The issue is, for dispute-distribution, nodes send only their own explicit (or
 in some cases their approval vote) in addition to some opposing vote. This
 guarantees that at least some backing or approval vote will be present at the
@@ -323,7 +323,10 @@ participation at all on any _vote import_ if any of the following holds true:
 - We have seen the disputed candidate backed in some not yet finalized block on
   at least one fork of the chain. This ensures the candidate is at least not
   completely made up and there has been some effort already flown into that
-  candidate.
+  candidate. Generally speaking a dispute shouldn't be raised for a candidate
+  which is backed but is not yet included. Disputes are raised during approval
+  checking. We participate on such disputes as a precaution - maybe we haven't
+  seen the `CandidateIncluded` event yet?
 - The dispute is already confirmed: Meaning that 1/3+1 nodes already
   participated, as this suggests in our threat model that there was at least one
   honest node that already voted, so the dispute must be genuine.