diff --git a/protocol/x/delaymsg/keeper/dispatch.go b/protocol/x/delaymsg/keeper/dispatch.go
index 967ebc753c..473417b4ea 100644
--- a/protocol/x/delaymsg/keeper/dispatch.go
+++ b/protocol/x/delaymsg/keeper/dispatch.go
@@ -17,6 +17,13 @@ func DispatchMessagesForBlock(k types.DelayMsgKeeper, ctx sdk.Context) {
 		return
 	}
 
+	// Maintain a list of events emitted by all delayed messages executed in this block.
+	// As message handlers create new event managers, such emitted events need to be
+	// explicitly propagated to the current context.
+	// Note: events in EndBlocker can be found in `end_block_events` in response from
+	// `/block_results` endpoint.
+	var events sdk.Events
+
 	// Execute all delayed messages scheduled for this block and delete them from the store.
 	for _, id := range blockMessageIds.Ids {
 		delayedMsg, found := k.GetMessage(ctx, id)
@@ -33,13 +40,21 @@ func DispatchMessagesForBlock(k types.DelayMsgKeeper, ctx sdk.Context) {
 
 		if err = abci.RunCached(ctx, func(ctx sdk.Context) error {
 			handler := k.Router().Handler(msg)
-			_, err := handler(ctx, msg)
-			return err
+			res, err := handler(ctx, msg)
+			if err != nil {
+				return err
+			}
+			// Append events emitted in message handler to `events`.
+			events = append(events, res.GetEvents()...)
+			return nil
 		}); err != nil {
 			k.Logger(ctx).Error("failed to execute delayed message with id %v: %v", id, err)
 		}
 	}
 
+	// Propagate events emitted in message handlers to current context.
+	ctx.EventManager().EmitEvents(events)
+
 	for _, id := range blockMessageIds.Ids {
 		if err := k.DeleteMessage(ctx, id); err != nil {
 			k.Logger(ctx).Error("failed to delete delayed message: %w", err)
diff --git a/protocol/x/delaymsg/keeper/dispatch_test.go b/protocol/x/delaymsg/keeper/dispatch_test.go
index e7396d42c2..418ca4b107 100644
--- a/protocol/x/delaymsg/keeper/dispatch_test.go
+++ b/protocol/x/delaymsg/keeper/dispatch_test.go
@@ -1,10 +1,12 @@
 package keeper_test
 
 import (
-	sdkmath "cosmossdk.io/math"
 	"fmt"
+	"reflect"
 	"testing"
 
+	sdkmath "cosmossdk.io/math"
+
 	"github.com/cometbft/cometbft/libs/log"
 	tmproto "github.com/cometbft/cometbft/proto/tendermint/types"
 	cometbfttypes "github.com/cometbft/cometbft/types"
@@ -504,3 +506,57 @@ func TestSendDelayedCompleteBridgeMessage_Failure(t *testing.T) {
 	_, found = tApp.App.DelayMsgKeeper.GetBlockMessageIds(ctx, 2)
 	require.False(t, found)
 }
+
+// This test case verifies that events emitted from message executions are correctly
+// propagated to the base context.
+func TestDispatchMessagesForBlock_EventsArePropagated(t *testing.T) {
+	ctx, k, _, _, bankKeeper, _ := keepertest.DelayMsgKeepers(t)
+	// Mint coins to the bridge module account so that it has enough balance for completing bridges.
+	err := bankKeeper.MintCoins(ctx, bridgetypes.ModuleName, sdk.NewCoins(BridgeGenesisAccountBalance))
+	require.NoError(t, err)
+
+	// Delay a complete bridge message, which calls bank transfer that emits a transfer event.
+	bridgeEvent := bridgetypes.BridgeEvent{
+		Id:             1,
+		Coin:           sdk.NewCoin("dv4tnt", sdkmath.NewInt(1_000)),
+		Address:        constants.AliceAccAddress.String(),
+		EthBlockHeight: 0,
+	}
+	_, err = k.DelayMessageByBlocks(
+		ctx,
+		&bridgetypes.MsgCompleteBridge{
+			Authority: authtypes.NewModuleAddress(types.ModuleName).String(),
+			Event:     bridgeEvent,
+		},
+		0,
+	)
+	require.NoError(t, err)
+
+	// Sanity check: messages appear for block 0.
+	blockMessageIds, found := k.GetBlockMessageIds(ctx, 0)
+	require.True(t, found)
+	require.Equal(t, []uint32{0}, blockMessageIds.Ids)
+
+	// Dispatch messages for block 0.
+	keeper.DispatchMessagesForBlock(k, ctx)
+
+	_, found = k.GetBlockMessageIds(ctx, 0)
+	require.False(t, found)
+
+	emittedEvents := ctx.EventManager().Events()
+	expectedTransferEvent := sdk.NewEvent(
+		"transfer",
+		sdk.NewAttribute("recipient", bridgeEvent.Address),
+		sdk.NewAttribute("sender", BridgeAccountAddress.String()),
+		sdk.NewAttribute("amount", bridgeEvent.Coin.String()),
+	)
+
+	// Verify that emitted events contains the expected transfer event exactly once.
+	foundExpectedTransferEvent := 0
+	for _, emittedEvent := range emittedEvents {
+		if reflect.DeepEqual(expectedTransferEvent, emittedEvent) {
+			foundExpectedTransferEvent++
+		}
+	}
+	require.Equal(t, 1, foundExpectedTransferEvent)
+}