diff --git a/src/api/entities/Instruction/__tests__/index.ts b/src/api/entities/Instruction/__tests__/index.ts
index 61db5c23d2..748d2aa5f6 100644
--- a/src/api/entities/Instruction/__tests__/index.ts
+++ b/src/api/entities/Instruction/__tests__/index.ts
@@ -1,9 +1,10 @@
 import { u64 } from '@polkadot/types';
 import BigNumber from 'bignumber.js';
-import sinon from 'sinon';
+import sinon, { SinonStub } from 'sinon';
 
 import { Entity, Instruction } from '~/api/entities';
-import { Context } from '~/base';
+import { Params, rejectInstruction } from '~/api/procedures/rejectInstruction';
+import { Context, TransactionQueue } from '~/base';
 import { dsMockUtils, entityMockUtils } from '~/testUtils/mocks';
 import { Mocked } from '~/testUtils/types';
 import { InstructionStatus, InstructionType } from '~/types';
@@ -22,6 +23,10 @@ jest.mock(
 describe('Instruction class', () => {
   let context: Mocked<Context>;
   let instruction: Instruction;
+  let prepareRejectInstructionStub: SinonStub<
+    [Params, Context],
+    Promise<TransactionQueue<void, unknown[][]>>
+  >;
 
   let id: BigNumber;
 
@@ -171,4 +176,24 @@ describe('Instruction class', () => {
       expect(leg.token).toEqual(entityMockUtils.getSecurityTokenInstance());
     });
   });
+
+  describe('method: reject', () => {
+    beforeAll(() => {
+      prepareRejectInstructionStub = sinon.stub(rejectInstruction, 'prepare');
+    });
+
+    afterAll(() => {
+      sinon.restore();
+    });
+
+    test('should prepare the procedure and return the resulting transaction queue', async () => {
+      const expectedQueue = ('someQueue' as unknown) as TransactionQueue<void>;
+
+      prepareRejectInstructionStub.withArgs({ id }, context).resolves(expectedQueue);
+
+      const queue = await instruction.reject();
+
+      expect(queue).toBe(expectedQueue);
+    });
+  });
 });
diff --git a/src/api/entities/Instruction/index.ts b/src/api/entities/Instruction/index.ts
index 379784bf93..8c2f359dd1 100644
--- a/src/api/entities/Instruction/index.ts
+++ b/src/api/entities/Instruction/index.ts
@@ -1,7 +1,8 @@
 import BigNumber from 'bignumber.js';
 
 import { Entity, Identity, SecurityToken } from '~/api/entities';
-import { Context } from '~/base';
+import { rejectInstruction } from '~/api/procedures';
+import { Context, TransactionQueue } from '~/base';
 import {
   balanceToBigNumber,
   identityIdToString,
@@ -120,4 +121,15 @@ export class Instruction extends Entity<UniqueIdentifiers> {
       };
     });
   }
+
+  /**
+   * Reject this instruction
+   *
+   * @note reject on `SettleOnAuthorization` will execute the settlement and it will fail immediately.
+   * @note reject on `SettleOnBlock` behaves just like unauthorize
+   */
+  public reject(): Promise<TransactionQueue<void>> {
+    const { id, context } = this;
+    return rejectInstruction.prepare({ id }, context);
+  }
 }
diff --git a/src/api/procedures/__tests__/rejectInstruction.ts b/src/api/procedures/__tests__/rejectInstruction.ts
new file mode 100644
index 0000000000..d8d64b84cf
--- /dev/null
+++ b/src/api/procedures/__tests__/rejectInstruction.ts
@@ -0,0 +1,207 @@
+import { u64 } from '@polkadot/types';
+import BigNumber from 'bignumber.js';
+import {
+  AuthorizationStatus as MeshAuthorizationStatus,
+  PortfolioId as MeshPortfolioId,
+} from 'polymesh-types/types';
+import sinon from 'sinon';
+
+import { Params, prepareRejectInstruction } from '~/api/procedures/rejectInstruction';
+import { Context } from '~/base';
+import { dsMockUtils, entityMockUtils, procedureMockUtils } from '~/testUtils/mocks';
+import { Mocked } from '~/testUtils/types';
+import {
+  AuthorizationStatus,
+  InstructionDetails,
+  InstructionStatus,
+  InstructionType,
+} from '~/types';
+import { PortfolioId } from '~/types/internal';
+import * as utilsModule from '~/utils';
+
+jest.mock(
+  '~/api/entities/Instruction',
+  require('~/testUtils/mocks/entities').mockInstructionModule('~/api/entities/Instruction')
+);
+
+describe('rejectInstruction procedure', () => {
+  const id = new BigNumber(1);
+  const rawInstructionId = dsMockUtils.createMockU64(1);
+  const rawPortfolioId = dsMockUtils.createMockPortfolioId({
+    did: dsMockUtils.createMockIdentityId('someDid'),
+    kind: dsMockUtils.createMockPortfolioKind('Default'),
+  });
+  let mockContext: Mocked<Context>;
+  let numberToU64Stub: sinon.SinonStub<[number | BigNumber, Context], u64>;
+  let portfolioIdToMeshPortfolioIdStub: sinon.SinonStub<[PortfolioId, Context], MeshPortfolioId>;
+  let meshAuthorizationStatusToAuthorizationStatusStub: sinon.SinonStub<
+    [MeshAuthorizationStatus],
+    AuthorizationStatus
+  >;
+
+  beforeAll(() => {
+    dsMockUtils.initMocks();
+    procedureMockUtils.initMocks();
+    entityMockUtils.initMocks();
+    numberToU64Stub = sinon.stub(utilsModule, 'numberToU64');
+    portfolioIdToMeshPortfolioIdStub = sinon.stub(utilsModule, 'portfolioIdToMeshPortfolioId');
+    meshAuthorizationStatusToAuthorizationStatusStub = sinon.stub(
+      utilsModule,
+      'meshAuthorizationStatusToAuthorizationStatus'
+    );
+  });
+
+  let addTransactionStub: sinon.SinonStub;
+
+  beforeEach(() => {
+    addTransactionStub = procedureMockUtils.getAddTransactionStub();
+    mockContext = dsMockUtils.getContextInstance();
+    numberToU64Stub.returns(rawInstructionId);
+    portfolioIdToMeshPortfolioIdStub.returns(rawPortfolioId);
+  });
+
+  afterEach(() => {
+    entityMockUtils.reset();
+    procedureMockUtils.reset();
+    dsMockUtils.reset();
+  });
+
+  afterAll(() => {
+    entityMockUtils.cleanup();
+    procedureMockUtils.cleanup();
+    dsMockUtils.cleanup();
+  });
+
+  test('should throw an error if instruction is not in pending state', () => {
+    entityMockUtils.configureMocks({
+      instructionOptions: {
+        details: {
+          status: InstructionStatus.Unknown,
+        } as InstructionDetails,
+      },
+    });
+
+    const proc = procedureMockUtils.getInstance<Params, void>(mockContext);
+
+    return expect(
+      prepareRejectInstruction.call(proc, {
+        id,
+      })
+    ).rejects.toThrow('The Instruction must be in pending state');
+  });
+
+  test('should throw an error if instruction is blocked', async () => {
+    const validFrom = new Date('12/12/2050');
+
+    entityMockUtils.configureMocks({
+      instructionOptions: {
+        details: {
+          status: InstructionStatus.Pending,
+          validFrom,
+        } as InstructionDetails,
+      },
+    });
+
+    const proc = procedureMockUtils.getInstance<Params, void>(mockContext);
+
+    let error;
+
+    try {
+      await prepareRejectInstruction.call(proc, {
+        id,
+      });
+    } catch (err) {
+      error = err;
+    }
+
+    expect(error.message).toBe('The instruction has not reached its validity period');
+    expect(error.data.validFrom).toBe(validFrom);
+  });
+
+  test('should throw an error if the instruction can not be modified', async () => {
+    const endBlock = new BigNumber(10);
+
+    entityMockUtils.configureMocks({
+      instructionOptions: {
+        details: {
+          status: InstructionStatus.Pending,
+          type: InstructionType.SettleOnBlock,
+          endBlock,
+        } as InstructionDetails,
+      },
+    });
+
+    const proc = procedureMockUtils.getInstance<Params, void>(mockContext);
+
+    let error;
+
+    try {
+      await prepareRejectInstruction.call(proc, {
+        id,
+      });
+    } catch (err) {
+      error = err;
+    }
+
+    expect(error.message).toBe(
+      'The instruction cannot be modified; it has already reached its end block'
+    );
+    expect(error.data.endBlock).toBe(endBlock);
+  });
+
+  test('should throw an error if authorization status is rejected', () => {
+    entityMockUtils.configureMocks({
+      instructionOptions: {
+        details: {
+          status: InstructionStatus.Pending,
+          type: InstructionType.SettleOnBlock,
+          endBlock: new BigNumber(1000),
+        } as InstructionDetails,
+      },
+    });
+
+    const rawAuthorizationStatus = dsMockUtils.createMockAuthorizationStatus('Rejected');
+    dsMockUtils.createQueryStub('settlement', 'userAuths').resolves(rawAuthorizationStatus);
+    meshAuthorizationStatusToAuthorizationStatusStub
+      .withArgs(rawAuthorizationStatus)
+      .returns(AuthorizationStatus.Rejected);
+
+    const proc = procedureMockUtils.getInstance<Params, void>(mockContext);
+
+    return expect(
+      prepareRejectInstruction.call(proc, {
+        id,
+      })
+    ).rejects.toThrow('The instruction cannot be rejected');
+  });
+
+  /*
+  test('should add an authorize instruction transaction to the queue', async () => {
+    entityMockUtils.configureMocks({
+      instructionOptions: {
+        details: {
+          status: InstructionStatus.Pending,
+        } as InstructionDetails,
+      },
+    });
+
+    const rawAuthorizationStatus = dsMockUtils.createMockAuthorizationStatus('Pending');
+    dsMockUtils.createQueryStub('settlement', 'userAuths').resolves(rawAuthorizationStatus);
+    meshAuthorizationStatusToAuthorizationStatusStub
+      .withArgs(rawAuthorizationStatus)
+      .returns(AuthorizationStatus.Pending);
+
+    const proc = procedureMockUtils.getInstance<Params, void>(mockContext);
+
+    const transaction = dsMockUtils.createTxStub('settlement', 'authorizeInstruction');
+
+    await prepareRejectInstruction.call(proc, {
+      id,
+    });
+
+    sinon.assert.calledWith(addTransactionStub, transaction, {}, rawInstructionId, [
+      rawPortfolioId,
+    ]);
+  });
+  */
+});
diff --git a/src/api/procedures/index.ts b/src/api/procedures/index.ts
index 36a6885bdc..191452f112 100644
--- a/src/api/procedures/index.ts
+++ b/src/api/procedures/index.ts
@@ -33,3 +33,4 @@ export {
   ModifyPrimaryIssuanceAgentParams,
 } from './modifyPrimaryIssuanceAgent';
 export { removePrimaryIssuanceAgent } from './removePrimaryIssuanceAgent';
+export { rejectInstruction } from './rejectInstruction';
diff --git a/src/api/procedures/rejectInstruction.ts b/src/api/procedures/rejectInstruction.ts
new file mode 100644
index 0000000000..fc6f6778aa
--- /dev/null
+++ b/src/api/procedures/rejectInstruction.ts
@@ -0,0 +1,100 @@
+import BigNumber from 'bignumber.js';
+
+import { Instruction } from '~/api/entities';
+import { PolymeshError, Procedure } from '~/base';
+import { AuthorizationStatus, ErrorCode, InstructionStatus, InstructionType } from '~/types';
+import {
+  meshAuthorizationStatusToAuthorizationStatus,
+  numberToU64,
+  portfolioIdToMeshPortfolioId,
+} from '~/utils';
+
+/**
+ * @hidden
+ */
+export type Params = { id: BigNumber };
+
+/**
+ * @hidden
+ */
+export async function prepareRejectInstruction(
+  this: Procedure<Params, void>,
+  args: Params
+): Promise<void> {
+  const {
+    context: {
+      polymeshApi: {
+        tx,
+        query: { settlement },
+      },
+    },
+    context,
+  } = this;
+
+  const { id } = args;
+
+  const instruction = new Instruction({ id }, context);
+
+  const [details, currentIdentity] = await Promise.all([
+    instruction.details(),
+    context.getCurrentIdentity(),
+  ]);
+
+  const { status, validFrom } = details;
+
+  if (status !== InstructionStatus.Pending) {
+    throw new PolymeshError({
+      code: ErrorCode.ValidationError,
+      message: 'The Instruction must be in pending state',
+    });
+  }
+
+  if (validFrom) {
+    const now = new Date();
+
+    if (now < validFrom) {
+      throw new PolymeshError({
+        code: ErrorCode.ValidationError,
+        message: 'The instruction has not reached its validity period',
+        data: {
+          validFrom,
+        },
+      });
+    }
+  }
+
+  if (details.type === InstructionType.SettleOnBlock) {
+    const latestBlock = await context.getLatestBlock();
+    const { endBlock } = details;
+
+    if (latestBlock >= endBlock) {
+      throw new PolymeshError({
+        code: ErrorCode.ValidationError,
+        message: 'The instruction cannot be modified; it has already reached its end block',
+        data: {
+          currentBlock: latestBlock,
+          endBlock,
+        },
+      });
+    }
+  }
+
+  const rawInstructionId = numberToU64(id, context);
+  const rawPortfolioId = portfolioIdToMeshPortfolioId({ did: currentIdentity.did }, context);
+  const rawAuthorizationStatus = await settlement.userAuths(rawPortfolioId, rawInstructionId);
+  const authorizationStatus = meshAuthorizationStatusToAuthorizationStatus(rawAuthorizationStatus);
+
+  if (authorizationStatus === AuthorizationStatus.Rejected) {
+    throw new PolymeshError({
+      code: ErrorCode.ValidationError,
+      message: 'The instruction cannot be rejected',
+    });
+  }
+
+  this.addTransaction(tx.settlement.rejectInstruction, {}, rawInstructionId, [rawPortfolioId]);
+}
+
+/**
+ * @hidden
+ */
+export const rejectInstruction = new Procedure(prepareRejectInstruction);