diff --git a/crates/derive/src/stages/channel_bank.rs b/crates/derive/src/stages/channel_bank.rs
index 03f188181d..5b5e22de0c 100644
--- a/crates/derive/src/stages/channel_bank.rs
+++ b/crates/derive/src/stages/channel_bank.rs
@@ -7,7 +7,7 @@ use crate::{
     types::{BlockInfo, Channel, Frame, RollupConfig, StageError, StageResult, SystemConfig},
 };
 use alloc::{boxed::Box, collections::VecDeque, sync::Arc};
-use alloy_primitives::Bytes;
+use alloy_primitives::{hex, Bytes};
 use anyhow::anyhow;
 use async_trait::async_trait;
 use core::fmt::Debug;
@@ -91,7 +91,10 @@ where
         if current_channel.open_block_number() + self.cfg.channel_timeout(origin.timestamp) <
             origin.number
         {
-            warn!(target: "channel-bank", "Channel {:?} timed out", frame.id);
+            warn!(
+                target: "channel-bank",
+                "Channel (ID: {}) timed out", hex::encode(frame.id)
+            );
             return Ok(());
         }
 
@@ -134,7 +137,10 @@ where
         let origin = self.origin().ok_or(StageError::MissingOrigin)?;
         if channel.open_block_number() + self.cfg.channel_timeout(origin.timestamp) < origin.number
         {
-            warn!(target: "channel-bank", "Channel {:?} timed out", first);
+            warn!(
+                target: "channel-bank",
+                "Channel (ID: {}) timed out", hex::encode(first)
+            );
             crate::observe!(CHANNEL_TIMEOUTS, (origin.number - channel.open_block_number()) as f64);
             self.channels.remove(&first);
             self.channel_queue.pop_front();
@@ -267,6 +273,7 @@ mod tests {
         test_utils::{CollectingLayer, MockChannelBankProvider, TraceStorage},
     };
     use alloc::vec;
+    use kona_primitives::{BASE_MAINNET_CONFIG, OP_MAINNET_CONFIG};
     use tracing::Level;
     use tracing_subscriber::{layer::SubscriberExt, util::SubscriberInitExt};
 
@@ -341,4 +348,48 @@ mod tests {
         let err = channel_bank.next_data().await.unwrap_err();
         assert_eq!(err, StageError::NotEnoughData);
     }
+
+    #[tokio::test]
+    async fn test_channel_timeout() {
+        let trace_store: TraceStorage = Default::default();
+        let layer = CollectingLayer::new(trace_store.clone());
+        tracing_subscriber::Registry::default().with(layer).init();
+
+        const ROLLUP_CONFIGS: [RollupConfig; 2] = [OP_MAINNET_CONFIG, BASE_MAINNET_CONFIG];
+
+        for cfg in ROLLUP_CONFIGS {
+            let frames = new_test_frames(2);
+            let mock = MockChannelBankProvider::new(frames.into_iter().map(Ok).collect::<Vec<_>>());
+            let cfg = Arc::new(cfg);
+            let mut channel_bank = ChannelBank::new(cfg.clone(), mock);
+
+            // Ingest first frame
+            let err = channel_bank.next_data().await.unwrap_err();
+            assert_eq!(err, StageError::NotEnoughData);
+
+            for _ in 0..cfg.channel_timeout + 1 {
+                channel_bank.advance_origin().await.unwrap();
+            }
+
+            // There should be an in-progress channel.
+            assert_eq!(channel_bank.channels.len(), 1);
+            assert_eq!(channel_bank.channel_queue.len(), 1);
+
+            // Should be `Ok(())`, channel timed out.
+            channel_bank.next_data().await.unwrap();
+
+            // The channel should have been pruned.
+            assert_eq!(channel_bank.channels.len(), 0);
+            assert_eq!(channel_bank.channel_queue.len(), 0);
+
+            // Ensure the channel was successfully timed out.
+            let (_, warning_trace) = trace_store
+                .lock()
+                .iter()
+                .find(|(l, _)| matches!(l, &Level::WARN))
+                .cloned()
+                .unwrap();
+            assert!(warning_trace.contains("timed out"));
+        }
+    }
 }
diff --git a/crates/derive/src/stages/test_utils/channel_bank.rs b/crates/derive/src/stages/test_utils/channel_bank.rs
index 357ae9e769..bc7d511bd8 100644
--- a/crates/derive/src/stages/test_utils/channel_bank.rs
+++ b/crates/derive/src/stages/test_utils/channel_bank.rs
@@ -33,6 +33,10 @@ impl OriginProvider for MockChannelBankProvider {
 #[async_trait]
 impl OriginAdvancer for MockChannelBankProvider {
     async fn advance_origin(&mut self) -> StageResult<()> {
+        self.block_info = self.block_info.map(|mut bi| {
+            bi.number += 1;
+            bi
+        });
         Ok(())
     }
 }