diff --git a/examples/fungible/tests/cross_chain.rs b/examples/fungible/tests/cross_chain.rs
index 5071b29e1dd..ec8ce26cb39 100644
--- a/examples/fungible/tests/cross_chain.rs
+++ b/examples/fungible/tests/cross_chain.rs
@@ -67,3 +67,76 @@ async fn test_cross_chain_transfer() {
         Some(transfer_amount),
     );
 }
+
+/// Test bouncing some tokens back to the sender.
+///
+/// Creates the application on a `sender_chain`, initializing it with a single account with some
+/// tokens for that chain's owner. Attempts to transfer some tokens to a new `receiver_chain`,
+/// but makes the `receiver_chain` reject the transfer message, causing the tokens to be
+/// returned back to the sender.
+#[tokio::test]
+async fn test_bouncing_tokens() {
+    let initial_amount = Amount::from_tokens(19);
+    let transfer_amount = Amount::from_tokens(7);
+
+    let (validator, bytecode_id) = TestValidator::with_current_bytecode().await;
+    let mut sender_chain = validator.new_chain().await;
+    let sender_account = AccountOwner::from(sender_chain.public_key());
+
+    let initial_state = InitialStateBuilder::default().with_account(sender_account, initial_amount);
+    let params = Parameters::new("RET");
+    let application_id = sender_chain
+        .create_application::<fungible::FungibleTokenAbi>(
+            bytecode_id,
+            params,
+            initial_state.build(),
+            vec![],
+        )
+        .await;
+
+    let receiver_chain = validator.new_chain().await;
+    let receiver_account = AccountOwner::from(receiver_chain.public_key());
+
+    let messages = sender_chain
+        .add_block(|block| {
+            block.with_operation(
+                application_id,
+                Operation::Transfer {
+                    owner: sender_account,
+                    amount: transfer_amount,
+                    target_account: Account {
+                        chain_id: receiver_chain.id(),
+                        owner: receiver_account,
+                    },
+                },
+            );
+        })
+        .await;
+
+    assert_eq!(
+        fungible::query_account(application_id, &sender_chain, sender_account).await,
+        Some(initial_amount.saturating_sub(transfer_amount)),
+    );
+
+    assert_eq!(messages.len(), 2);
+
+    receiver_chain
+        .add_block(move |block| {
+            block
+                .with_incoming_message(messages[0])
+                .with_message_rejection(messages[1]);
+        })
+        .await;
+
+    assert_eq!(
+        fungible::query_account(application_id, &receiver_chain, receiver_account).await,
+        None,
+    );
+
+    sender_chain.handle_received_messages().await;
+
+    assert_eq!(
+        fungible::query_account(application_id, &sender_chain, sender_account).await,
+        Some(initial_amount),
+    );
+}
diff --git a/linera-sdk/src/test/integration/block.rs b/linera-sdk/src/test/integration/block.rs
index 5ec6ce08a59..347668ab853 100644
--- a/linera-sdk/src/test/integration/block.rs
+++ b/linera-sdk/src/test/integration/block.rs
@@ -12,7 +12,7 @@ use linera_base::{
     identifiers::{ApplicationId, ChainId, MessageId, Owner},
 };
 use linera_chain::data_types::{
-    Block, Certificate, HashedValue, IncomingMessage, LiteVote, SignatureAggregator,
+    Block, Certificate, HashedValue, IncomingMessage, LiteVote, MessageAction, SignatureAggregator,
 };
 use linera_execution::{system::SystemOperation, Operation};
 
@@ -23,7 +23,7 @@ use crate::ToBcsBytes;
 /// [`Certificate`]s using a [`TestValidator`].
 pub struct BlockBuilder {
     block: Block,
-    incoming_messages: Vec<MessageId>,
+    incoming_messages: Vec<(MessageId, MessageAction)>,
     validator: TestValidator,
 }
 
@@ -126,7 +126,18 @@ impl BlockBuilder {
     /// The block that produces the message must have already been executed by the test validator,
     /// so that the message is already in the inbox of the microchain this block belongs to.
     pub fn with_incoming_message(&mut self, message_id: MessageId) -> &mut Self {
-        self.incoming_messages.push(message_id);
+        self.incoming_messages
+            .push((message_id, MessageAction::Accept));
+        self
+    }
+
+    /// Rejects an incoming message referenced by the [`MessageId`].
+    ///
+    /// The block that produces the message must have already been executed by the test validator,
+    /// so that the message is already in the inbox of the microchain this block belongs to.
+    pub fn with_message_rejection(&mut self, message_id: MessageId) -> &mut Self {
+        self.incoming_messages
+            .push((message_id, MessageAction::Reject));
         self
     }
 
@@ -138,7 +149,11 @@ impl BlockBuilder {
         &mut self,
         message_ids: impl IntoIterator<Item = MessageId>,
     ) -> &mut Self {
-        self.incoming_messages.extend(message_ids);
+        self.incoming_messages.extend(
+            message_ids
+                .into_iter()
+                .map(|message_id| (message_id, MessageAction::Accept)),
+        );
         self
     }
 
@@ -193,8 +208,8 @@ impl BlockBuilder {
     async fn collect_incoming_messages(&mut self) {
         let chain_id = self.block.chain_id;
 
-        for message_id in mem::take(&mut self.incoming_messages) {
-            let message = self
+        for (message_id, action) in mem::take(&mut self.incoming_messages) {
+            let mut message = self
                 .validator
                 .worker()
                 .await
@@ -203,6 +218,8 @@ impl BlockBuilder {
                 .expect("Failed to find message to receive in block")
                 .expect("Message that block should consume has not been emitted");
 
+            message.action = action;
+
             self.block.incoming_messages.push(message);
         }
     }