diff --git a/crates/api_models/src/webhooks.rs b/crates/api_models/src/webhooks.rs
index da5d8a6567..bc8e75f6d4 100644
--- a/crates/api_models/src/webhooks.rs
+++ b/crates/api_models/src/webhooks.rs
@@ -12,6 +12,7 @@ pub enum IncomingWebhookEvent {
     PaymentIntentSuccess,
     PaymentIntentProcessing,
     PaymentIntentPartiallyFunded,
+    PaymentIntentCancelled,
     PaymentActionRequired,
     EventNotSupported,
     SourceChargeable,
@@ -84,7 +85,8 @@ impl From<IncomingWebhookEvent> for WebhookFlow {
             | IncomingWebhookEvent::PaymentIntentSuccess
             | IncomingWebhookEvent::PaymentIntentProcessing
             | IncomingWebhookEvent::PaymentActionRequired
-            | IncomingWebhookEvent::PaymentIntentPartiallyFunded => Self::Payment,
+            | IncomingWebhookEvent::PaymentIntentPartiallyFunded
+            | IncomingWebhookEvent::PaymentIntentCancelled => Self::Payment,
             IncomingWebhookEvent::EventNotSupported => Self::ReturnResponse,
             IncomingWebhookEvent::RefundSuccess | IncomingWebhookEvent::RefundFailure => {
                 Self::Refund
diff --git a/crates/common_enums/src/enums.rs b/crates/common_enums/src/enums.rs
index 39e1848396..a44725bc91 100644
--- a/crates/common_enums/src/enums.rs
+++ b/crates/common_enums/src/enums.rs
@@ -794,6 +794,7 @@ pub enum EventType {
     PaymentSucceeded,
     PaymentFailed,
     PaymentProcessing,
+    PaymentCancelled,
     ActionRequired,
     RefundSucceeded,
     RefundFailed,
diff --git a/crates/router/src/compatibility/stripe/webhooks.rs b/crates/router/src/compatibility/stripe/webhooks.rs
index 1b5f8969d5..c44e265a96 100644
--- a/crates/router/src/compatibility/stripe/webhooks.rs
+++ b/crates/router/src/compatibility/stripe/webhooks.rs
@@ -168,6 +168,7 @@ fn get_stripe_event_type(event_type: api_models::enums::EventType) -> &'static s
         api_models::enums::EventType::PaymentSucceeded => "payment_intent.succeeded",
         api_models::enums::EventType::PaymentFailed => "payment_intent.payment_failed",
         api_models::enums::EventType::PaymentProcessing => "payment_intent.processing",
+        api_models::enums::EventType::PaymentCancelled => "payment_intent.canceled",
 
         // the below are not really stripe compatible because stripe doesn't provide this
         api_models::enums::EventType::ActionRequired => "action.required",
diff --git a/crates/router/src/connector/stripe.rs b/crates/router/src/connector/stripe.rs
index ff89882543..59700ecf35 100644
--- a/crates/router/src/connector/stripe.rs
+++ b/crates/router/src/connector/stripe.rs
@@ -1844,6 +1844,9 @@ impl api::IncomingWebhook for Stripe {
             stripe::WebhookEventType::PaymentIntentSucceed => {
                 api::IncomingWebhookEvent::PaymentIntentSuccess
             }
+            stripe::WebhookEventType::PaymentIntentCanceled => {
+                api::IncomingWebhookEvent::PaymentIntentCancelled
+            }
             stripe::WebhookEventType::ChargeSucceeded => {
                 if let Some(stripe::WebhookPaymentMethodDetails {
                     payment_method:
@@ -1898,7 +1901,6 @@ impl api::IncomingWebhook for Stripe {
             | stripe::WebhookEventType::ChargePending
             | stripe::WebhookEventType::ChargeUpdated
             | stripe::WebhookEventType::ChargeRefunded
-            | stripe::WebhookEventType::PaymentIntentCanceled
             | stripe::WebhookEventType::PaymentIntentCreated
             | stripe::WebhookEventType::PaymentIntentProcessing
             | stripe::WebhookEventType::PaymentIntentAmountCapturableUpdated
diff --git a/crates/router/src/core/webhooks/utils.rs b/crates/router/src/core/webhooks/utils.rs
index ac7e5081c8..b187001e10 100644
--- a/crates/router/src/core/webhooks/utils.rs
+++ b/crates/router/src/core/webhooks/utils.rs
@@ -17,6 +17,7 @@ fn default_webhook_config() -> api::MerchantWebhookConfig {
         api::IncomingWebhookEvent::PaymentIntentSuccess,
         api::IncomingWebhookEvent::PaymentIntentFailure,
         api::IncomingWebhookEvent::PaymentIntentProcessing,
+        api::IncomingWebhookEvent::PaymentIntentCancelled,
         api::IncomingWebhookEvent::PaymentActionRequired,
         api::IncomingWebhookEvent::RefundSuccess,
     ])
diff --git a/crates/router/src/types/transformers.rs b/crates/router/src/types/transformers.rs
index 8686729ea2..31ec31cfa9 100644
--- a/crates/router/src/types/transformers.rs
+++ b/crates/router/src/types/transformers.rs
@@ -257,8 +257,8 @@ impl ForeignFrom<api_enums::IntentStatus> for Option<storage_enums::EventType> {
             | api_enums::IntentStatus::RequiresCustomerAction => {
                 Some(storage_enums::EventType::ActionRequired)
             }
-            api_enums::IntentStatus::Cancelled
-            | api_enums::IntentStatus::RequiresPaymentMethod
+            api_enums::IntentStatus::Cancelled => Some(storage_enums::EventType::PaymentCancelled),
+            api_enums::IntentStatus::RequiresPaymentMethod
             | api_enums::IntentStatus::RequiresConfirmation
             | api_enums::IntentStatus::RequiresCapture
             | api_enums::IntentStatus::PartiallyCaptured => None,
diff --git a/migrations/2023-10-13-100447_add-payment-cancelled-event-type/down.sql b/migrations/2023-10-13-100447_add-payment-cancelled-event-type/down.sql
new file mode 100644
index 0000000000..87e4e81e04
--- /dev/null
+++ b/migrations/2023-10-13-100447_add-payment-cancelled-event-type/down.sql
@@ -0,0 +1,2 @@
+-- This file should undo anything in `up.sql`
+Select 1;
\ No newline at end of file
diff --git a/migrations/2023-10-13-100447_add-payment-cancelled-event-type/up.sql b/migrations/2023-10-13-100447_add-payment-cancelled-event-type/up.sql
new file mode 100644
index 0000000000..5854491a6e
--- /dev/null
+++ b/migrations/2023-10-13-100447_add-payment-cancelled-event-type/up.sql
@@ -0,0 +1,2 @@
+-- Your SQL goes here
+ALTER TYPE "EventType" ADD VALUE 'payment_cancelled';
\ No newline at end of file
diff --git a/openapi/openapi_spec.json b/openapi/openapi_spec.json
index 971a573b8e..3f1f168033 100644
--- a/openapi/openapi_spec.json
+++ b/openapi/openapi_spec.json
@@ -5076,6 +5076,7 @@
           "payment_succeeded",
           "payment_failed",
           "payment_processing",
+          "payment_cancelled",
           "action_required",
           "refund_succeeded",
           "refund_failed",