diff --git a/hadoop-hdds/server-scm/src/main/java/org/apache/hadoop/hdds/scm/container/AbstractContainerReportHandler.java b/hadoop-hdds/server-scm/src/main/java/org/apache/hadoop/hdds/scm/container/AbstractContainerReportHandler.java
index f660442b3764a..1665a773a47c5 100644
--- a/hadoop-hdds/server-scm/src/main/java/org/apache/hadoop/hdds/scm/container/AbstractContainerReportHandler.java
+++ b/hadoop-hdds/server-scm/src/main/java/org/apache/hadoop/hdds/scm/container/AbstractContainerReportHandler.java
@@ -233,4 +233,12 @@ private boolean isUnhealthy(final Supplier<State> replicaState) {
     return replicaState.get() == ContainerReplicaProto.State.UNHEALTHY;
   }
 
+  /**
+   * Return ContainerManager.
+   * @return {@link ContainerManager}
+   */
+  protected ContainerManager getContainerManager() {
+    return containerManager;
+  }
+
 }
\ No newline at end of file
diff --git a/hadoop-hdds/server-scm/src/main/java/org/apache/hadoop/hdds/scm/container/ContainerManager.java b/hadoop-hdds/server-scm/src/main/java/org/apache/hadoop/hdds/scm/container/ContainerManager.java
index 02b1353dfb4b8..f9488e222eb9f 100644
--- a/hadoop-hdds/server-scm/src/main/java/org/apache/hadoop/hdds/scm/container/ContainerManager.java
+++ b/hadoop-hdds/server-scm/src/main/java/org/apache/hadoop/hdds/scm/container/ContainerManager.java
@@ -179,4 +179,12 @@ ContainerInfo getMatchingContainer(long size, String owner,
    */
   ContainerInfo getMatchingContainer(long size, String owner,
       Pipeline pipeline, List<ContainerID> excludedContainerIDS);
+
+  /**
+   * Once after report processor handler completes, call this to notify
+   * container manager to increment metrics.
+   * @param isFullReport
+   * @param success
+   */
+  void notifyContainerReportProcessing(boolean isFullReport, boolean success);
 }
diff --git a/hadoop-hdds/server-scm/src/main/java/org/apache/hadoop/hdds/scm/container/ContainerReportHandler.java b/hadoop-hdds/server-scm/src/main/java/org/apache/hadoop/hdds/scm/container/ContainerReportHandler.java
index 934b244d7be14..2227df6156370 100644
--- a/hadoop-hdds/server-scm/src/main/java/org/apache/hadoop/hdds/scm/container/ContainerReportHandler.java
+++ b/hadoop-hdds/server-scm/src/main/java/org/apache/hadoop/hdds/scm/container/ContainerReportHandler.java
@@ -104,7 +104,9 @@ public void onMessage(final ContainerReportFromDatanode reportFromDatanode,
        */
       nodeManager.setContainers(datanodeDetails, containersInDn);
 
+      containerManager.notifyContainerReportProcessing(true, true);
     } catch (NodeNotFoundException ex) {
+      containerManager.notifyContainerReportProcessing(true, false);
       LOG.error("Received container report from unknown datanode {} {}",
           datanodeDetails, ex);
     }
diff --git a/hadoop-hdds/server-scm/src/main/java/org/apache/hadoop/hdds/scm/container/IncrementalContainerReportHandler.java b/hadoop-hdds/server-scm/src/main/java/org/apache/hadoop/hdds/scm/container/IncrementalContainerReportHandler.java
index 3dd3d9d95cb16..a8f573025cb8d 100644
--- a/hadoop-hdds/server-scm/src/main/java/org/apache/hadoop/hdds/scm/container/IncrementalContainerReportHandler.java
+++ b/hadoop-hdds/server-scm/src/main/java/org/apache/hadoop/hdds/scm/container/IncrementalContainerReportHandler.java
@@ -57,6 +57,7 @@ public void onMessage(final IncrementalContainerReportFromDatanode report,
     LOG.debug("Processing incremental container report from data node {}",
             report.getDatanodeDetails().getUuid());
 
+    boolean success = true;
     for (ContainerReplicaProto replicaProto :
         report.getReport().getReportList()) {
       try {
@@ -66,16 +67,25 @@ public void onMessage(final IncrementalContainerReportFromDatanode report,
         nodeManager.addContainer(dd, id);
         processContainerReplica(dd, replicaProto);
       } catch (ContainerNotFoundException e) {
+        success = false;
         LOG.warn("Container {} not found!", replicaProto.getContainerID());
       } catch (NodeNotFoundException ex) {
+        success = false;
         LOG.error("Received ICR from unknown datanode {} {}",
             report.getDatanodeDetails(), ex);
       } catch (IOException e) {
+        success = false;
         LOG.error("Exception while processing ICR for container {}",
             replicaProto.getContainerID());
       }
     }
 
+    if (success) {
+      getContainerManager().notifyContainerReportProcessing(false, true);
+    } else {
+      getContainerManager().notifyContainerReportProcessing(false, false);
+    }
+
   }
 
 }
diff --git a/hadoop-hdds/server-scm/src/main/java/org/apache/hadoop/hdds/scm/container/SCMContainerManager.java b/hadoop-hdds/server-scm/src/main/java/org/apache/hadoop/hdds/scm/container/SCMContainerManager.java
index 8f82b57b552f4..470d4eb1c480f 100644
--- a/hadoop-hdds/server-scm/src/main/java/org/apache/hadoop/hdds/scm/container/SCMContainerManager.java
+++ b/hadoop-hdds/server-scm/src/main/java/org/apache/hadoop/hdds/scm/container/SCMContainerManager.java
@@ -572,4 +572,21 @@ public void close() throws IOException {
       this.scmContainerManagerMetrics.unRegister();
     }
   }
+
+  public void notifyContainerReportProcessing(boolean isFullReport,
+      boolean success) {
+    if (isFullReport) {
+      if (success) {
+        scmContainerManagerMetrics.incNumContainerReportsProcessedSuccessful();
+      } else {
+        scmContainerManagerMetrics.incNumContainerReportsProcessedFailed();
+      }
+    } else {
+      if (success) {
+        scmContainerManagerMetrics.incNumICRReportsProcessedSuccessful();
+      } else {
+        scmContainerManagerMetrics.incNumICRReportsProcessedFailed();
+      }
+    }
+  }
 }
diff --git a/hadoop-hdds/server-scm/src/main/java/org/apache/hadoop/hdds/scm/container/metrics/SCMContainerManagerMetrics.java b/hadoop-hdds/server-scm/src/main/java/org/apache/hadoop/hdds/scm/container/metrics/SCMContainerManagerMetrics.java
index d2cc9e18ff989..e9a2579a2f02a 100644
--- a/hadoop-hdds/server-scm/src/main/java/org/apache/hadoop/hdds/scm/container/metrics/SCMContainerManagerMetrics.java
+++ b/hadoop-hdds/server-scm/src/main/java/org/apache/hadoop/hdds/scm/container/metrics/SCMContainerManagerMetrics.java
@@ -1,3 +1,19 @@
+/**
+ * Licensed to the Apache Software Foundation (ASF) under one or more
+ * contributor license agreements.  See the NOTICE file distributed with this
+ * work for additional information regarding copyright ownership.  The ASF
+ * licenses this file to you under the Apache License, Version 2.0 (the
+ * "License"); you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ * <p/>
+ * http://www.apache.org/licenses/LICENSE-2.0
+ * <p/>
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS, WITHOUT
+ * WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. See the
+ * License for the specific language governing permissions and limitations under
+ * the License.
+ */
 package org.apache.hadoop.hdds.scm.container.metrics;
 
 
@@ -26,6 +42,12 @@ public final class SCMContainerManagerMetrics {
   private @Metric MutableCounterLong numFailureDeleteContainers;
   private @Metric MutableCounterLong numListContainerOps;
 
+
+  private @Metric MutableCounterLong numContainerReportsProcessedSuccessful;
+  private @Metric MutableCounterLong numContainerReportsProcessedFailed;
+  private @Metric MutableCounterLong numICRReportsProcessedSuccessful;
+  private @Metric MutableCounterLong numICRReportsProcessedFailed;
+
   private SCMContainerManagerMetrics() {
   }
 
@@ -67,6 +89,38 @@ public void incNumListContainersOps() {
     this.numListContainerOps.incr();
   }
 
+  public void incNumContainerReportsProcessedSuccessful() {
+    this.numContainerReportsProcessedSuccessful.incr();
+  }
+
+  public void incNumContainerReportsProcessedFailed() {
+    this.numContainerReportsProcessedFailed.incr();
+  }
+
+  public void incNumICRReportsProcessedSuccessful() {
+    this.numICRReportsProcessedSuccessful.incr();
+  }
+
+  public void incNumICRReportsProcessedFailed() {
+    this.numICRReportsProcessedFailed.incr();
+  }
+
+  public long getNumContainerReportsProcessedSuccessful() {
+    return numContainerReportsProcessedSuccessful.value();
+  }
+
+  public long getNumContainerReportsProcessedFailed() {
+    return numContainerReportsProcessedFailed.value();
+  }
+
+  public long getNumICRReportsProcessedSuccessful() {
+    return numICRReportsProcessedSuccessful.value();
+  }
+
+  public long getNumICRReportsProcessedFailed() {
+    return numICRReportsProcessedFailed.value();
+  }
+
   public long getNumSuccessfulCreateContainers() {
     return numSuccessfulCreateContainers.value();
   }
diff --git a/hadoop-ozone/integration-test/src/test/java/org/apache/hadoop/hdds/scm/container/metrics/TestSCMContainerManagerMetrics.java b/hadoop-ozone/integration-test/src/test/java/org/apache/hadoop/hdds/scm/container/metrics/TestSCMContainerManagerMetrics.java
index 349184ffdfc1c..5643cb6ef5dc5 100644
--- a/hadoop-ozone/integration-test/src/test/java/org/apache/hadoop/hdds/scm/container/metrics/TestSCMContainerManagerMetrics.java
+++ b/hadoop-ozone/integration-test/src/test/java/org/apache/hadoop/hdds/scm/container/metrics/TestSCMContainerManagerMetrics.java
@@ -1,22 +1,44 @@
+/**
+ * Licensed to the Apache Software Foundation (ASF) under one or more
+ * contributor license agreements.  See the NOTICE file distributed with this
+ * work for additional information regarding copyright ownership.  The ASF
+ * licenses this file to you under the Apache License, Version 2.0 (the
+ * "License"); you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ * <p/>
+ * http://www.apache.org/licenses/LICENSE-2.0
+ * <p/>
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS, WITHOUT
+ * WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. See the
+ * License for the specific language governing permissions and limitations under
+ * the License.
+ */
+
 package org.apache.hadoop.hdds.scm.container.metrics;
 
 import org.apache.commons.lang3.RandomUtils;
+import org.apache.hadoop.hdds.client.ReplicationFactor;
+import org.apache.hadoop.hdds.client.ReplicationType;
 import org.apache.hadoop.hdds.conf.OzoneConfiguration;
 import org.apache.hadoop.hdds.protocol.proto.HddsProtos;
-import org.apache.hadoop.hdds.scm.XceiverClientManager;
 import org.apache.hadoop.hdds.scm.container.ContainerID;
 import org.apache.hadoop.hdds.scm.container.ContainerInfo;
 import org.apache.hadoop.hdds.scm.container.ContainerManager;
 import org.apache.hadoop.hdds.scm.server.StorageContainerManager;
 import org.apache.hadoop.metrics2.MetricsRecordBuilder;
 import org.apache.hadoop.ozone.MiniOzoneCluster;
+import org.apache.hadoop.ozone.client.io.OzoneOutputStream;
+import org.apache.hadoop.test.GenericTestUtils;
 import org.junit.After;
 import org.junit.Assert;
 import org.junit.Before;
 import org.junit.Test;
 
 import java.io.IOException;
+import java.util.HashMap;
 
+import static org.apache.hadoop.hdds.HddsConfigKeys.HDDS_CONTAINER_REPORT_INTERVAL;
 import static org.apache.hadoop.test.MetricsAsserts.getLongCounter;
 import static org.apache.hadoop.test.MetricsAsserts.getMetrics;
 import static org.junit.Assert.fail;
@@ -28,16 +50,15 @@ public class TestSCMContainerManagerMetrics {
 
   private MiniOzoneCluster cluster;
   private StorageContainerManager scm;
-  private XceiverClientManager xceiverClientManager;
   private String containerOwner = "OZONE";
 
   @Before
   public void setup() throws Exception {
     OzoneConfiguration conf = new OzoneConfiguration();
+    conf.set(HDDS_CONTAINER_REPORT_INTERVAL, "3000s");
     cluster = MiniOzoneCluster.newBuilder(conf).setNumDatanodes(1).build();
     cluster.waitForClusterToBeReady();
     scm = cluster.getStorageContainerManager();
-    xceiverClientManager = new XceiverClientManager(conf);
   }
 
 
@@ -51,7 +72,6 @@ public void testContainerOpsMetrics() throws IOException {
     MetricsRecordBuilder metrics;
     ContainerManager containerManager = scm.getContainerManager();
     metrics = getMetrics(SCMContainerManagerMetrics.class.getSimpleName());
-
     long numSuccessfulCreateContainers = getLongCounter(
         "NumSuccessfulCreateContainers", metrics);
 
@@ -108,5 +128,40 @@ public void testContainerOpsMetrics() throws IOException {
     metrics = getMetrics(SCMContainerManagerMetrics.class.getSimpleName());
     Assert.assertEquals(getLongCounter("NumListContainerOps",
         metrics), 1);
+
+  }
+
+  @Test
+  public void testReportProcessingMetrics() throws Exception {
+    String volumeName = "vol1";
+    String bucketName = "bucket1";
+    String key = "key1";
+
+    MetricsRecordBuilder metrics =
+        getMetrics(SCMContainerManagerMetrics.class.getSimpleName());
+    Assert.assertEquals(getLongCounter("NumContainerReportsProcessedSuccessful",
+        metrics), 1);
+
+    // Create key should create container on DN.
+    cluster.getRpcClient().getObjectStore().getClientProxy()
+        .createVolume(volumeName);
+    cluster.getRpcClient().getObjectStore().getClientProxy()
+        .createBucket(volumeName, bucketName);
+    OzoneOutputStream ozoneOutputStream = cluster.getRpcClient()
+        .getObjectStore().getClientProxy().createKey(volumeName, bucketName,
+            key, 0, ReplicationType.RATIS, ReplicationFactor.ONE,
+            new HashMap<>());
+
+    String data = "file data";
+    ozoneOutputStream.write(data.getBytes(), 0, data.length());
+    ozoneOutputStream.close();
+
+
+    GenericTestUtils.waitFor(() -> {
+      final MetricsRecordBuilder scmMetrics =
+          getMetrics(SCMContainerManagerMetrics.class.getSimpleName());
+      return getLongCounter("NumICRReportsProcessedSuccessful",
+          scmMetrics) == 1;
+    }, 1000, 500000);
   }
 }