diff --git a/specs/_features/maxeb_increase/capella.py b/specs/_features/maxeb_increase/capella.py
index 39bf47cf38..d0ede5b910 100644
--- a/specs/_features/maxeb_increase/capella.py
+++ b/specs/_features/maxeb_increase/capella.py
@@ -183,6 +183,8 @@ def floorlog2(x: int) -> uint64:
 DOMAIN_BLS_TO_EXECUTION_CHANGE = DomainType('0x0A000000')
 SLASHED_ATTESTER_FLAG_INDEX = 0
 SLASHED_PROPOSER_FLAG_INDEX = 1
+DOMAIN_CONSOLIDATION = DomainType('0x0B000000')
+UNSET_CONSOLIDATED_TO = Epoch(2**64 - 1)
 
 # Preset vars
 MAX_COMMITTEES_PER_SLOT = uint64(64)
@@ -321,6 +323,8 @@ class Validator(Container):
     activation_epoch: Epoch
     exit_epoch: Epoch
     withdrawable_epoch: Epoch  # When validator can withdraw funds
+    # TODO: may compress into some other validator field
+    consolidated_to: ValidatorIndex
 
 
 class AttestationData(Container):
@@ -621,6 +625,13 @@ class SignedBLSToExecutionChange(Container):
     signature: BLSSignature
 
 
+class Consolidation(Container):
+    source_index: ValidatorIndex
+    target_index: ValidatorIndex
+    target_signature: BLSSignature
+    source_address: ExecutionAddress
+
+
 class BeaconBlockBody(Container):
     randao_reveal: BLSSignature
     eth1_data: Eth1Data  # Eth1 data vote
@@ -1203,6 +1214,7 @@ def slash_validator(state: BeaconState,
     """
     Slash the validator with index ``slashed_index``.
     """
+    slashed_index = resolve_slashed_index(state, slashed_index)
     epoch = get_current_epoch(state)
     initiate_validator_exit(state, slashed_index)
     validator = state.validators[slashed_index]
@@ -1776,6 +1788,49 @@ def process_execution_layer_withdraw_request(
     ))
 
 
+def is_consolidated(validator: Validator) -> bool:
+   validator.consolidated_to != UNSET_CONSOLIDATED_TO
+
+
+def resolve_slashed_index(state: BeaconState, index: ValidatorIndex) -> ValidatorIndex:
+    if is_consolidated(state.validators[index]):
+        # Recursively resolve consolidated index
+        return resolve_slashed_index(state, state.validators[index].consolidated_to)
+    else:
+        return index
+
+
+def process_consolidation(state: BeaconState, consolidation: Consolidation) -> None:
+    target_validator = state[consolidation.target_index]
+    source_validator = state[consolidation.source_index]
+
+    assert target_validator.exit_epoch == FAR_FUTURE_EPOCH
+    assert source_validator.exit_epoch == FAR_FUTURE_EPOCH
+
+    # verify source withdrawal credentials, which have authority over validating keys
+    assert source_validator.withdrawal_credentials[:1] == ETH1_ADDRESS_WITHDRAWAL_PREFIX
+    assert source_validator.withdrawal_credentials[12:] == consolidation.source_address
+
+    # target validator accepts consolidation operation onto itself
+    # Fork-agnostic domain since address changes are valid across forks
+    domain = compute_domain(DOMAIN_CONSOLIDATION, genesis_validators_root=state.genesis_validators_root)
+    signing_root = compute_signing_root(source_validator.pubkey, domain)
+    assert bls.Verify(target_validator.pubkey, signing_root, consolidation.target_signature)
+
+    active_balance = min(state.balances[consolidation.source_index], get_max_effective_balance(source_validator))
+    excess_balance = state.balances[consolidation.source_index] - active_balance
+    state.balances[consolidation.target_index] += active_balance
+    state.balances[consolidation.source_index] = 0
+
+    # Excess balance above current active balance ceil, send to inbound churn
+    state.pending_balance_deposits.append(PendingBalanceDeposit(consolidation.target_index, excess_balance))
+
+    source_validator.consolidated_to = consolidation.target_index
+    # Balance is not exiting the active set, do not apply churn
+    source_validator.exit_epoch = get_current_epoch(state)
+    source_validator.withdrawable_epoch = Epoch(source_validator.exit_epoch + config.MIN_VALIDATOR_WITHDRAWABILITY_DELAY)
+
+
 def process_proposer_slashing(state: BeaconState, proposer_slashing: ProposerSlashing) -> None:
     header_1 = proposer_slashing.signed_header_1.message
     header_2 = proposer_slashing.signed_header_2.message
@@ -3668,6 +3723,14 @@ def is_fully_withdrawable_validator(validator: Validator, balance: Gwei, epoch:
         and balance > 0
     )
 
+
+def get_max_effective_balance(validator: Validator) -> Gwei:
+    if (has_compounding_withdrawal_credential(validator):
+        return MAX_EFFECTIVE_BALANCE
+    else:
+        return MIN_ACTIVATION_BALANCE
+
+
 def get_validator_excess_balance(validator: Validator, balance: Gwei) -> Gwei:
     """
     Get excess balance for partial withdrawals for ``validator``.