diff --git a/core/blockchain.go b/core/blockchain.go
index 7ab15d7f42..5ac12303cf 100644
--- a/core/blockchain.go
+++ b/core/blockchain.go
@@ -47,9 +47,10 @@ import (
 )
 
 var (
-	headBlockGauge     = metrics.NewRegisteredGauge("chain/head/block", nil)
-	headHeaderGauge    = metrics.NewRegisteredGauge("chain/head/header", nil)
-	headFastBlockGauge = metrics.NewRegisteredGauge("chain/head/receipt", nil)
+	headBlockGauge          = metrics.NewRegisteredGauge("chain/head/block", nil)
+	headHeaderGauge         = metrics.NewRegisteredGauge("chain/head/header", nil)
+	headFastBlockGauge      = metrics.NewRegisteredGauge("chain/head/receipt", nil)
+	headFinalizedBlockGauge = metrics.NewRegisteredGauge("chain/head/finalized", nil)
 
 	accountReadTimer   = metrics.NewRegisteredTimer("chain/account/reads", nil)
 	accountHashTimer   = metrics.NewRegisteredTimer("chain/account/hashes", nil)
@@ -187,8 +188,9 @@ type BlockChain struct {
 	// Readers don't need to take it, they can just read the database.
 	chainmu *syncx.ClosableMutex
 
-	currentBlock     atomic.Value // Current head of the block chain
-	currentFastBlock atomic.Value // Current head of the fast-sync chain (may be above the block chain!)
+	currentBlock          atomic.Value // Current head of the block chain
+	currentFastBlock      atomic.Value // Current head of the fast-sync chain (may be above the block chain!)
+	currentFinalizedBlock atomic.Value // Current finalized head
 
 	stateCache    state.Database // State database to reuse between imports (contains state cache)
 	bodyCache     *lru.Cache     // Cache for the most recent block bodies
@@ -264,6 +266,7 @@ func NewBlockChain(db ethdb.Database, cacheConfig *CacheConfig, chainConfig *par
 	var nilBlock *types.Block
 	bc.currentBlock.Store(nilBlock)
 	bc.currentFastBlock.Store(nilBlock)
+	bc.currentFinalizedBlock.Store(nilBlock)
 
 	// Initialize the chain with ancient data if it isn't empty.
 	var txIndexBlock uint64
@@ -460,8 +463,17 @@ func (bc *BlockChain) loadLastState() error {
 			headFastBlockGauge.Update(int64(block.NumberU64()))
 		}
 	}
+
+	// Restore the last known finalized block
+	if head := rawdb.ReadFinalizedBlockHash(bc.db); head != (common.Hash{}) {
+		if block := bc.GetBlockByHash(head); block != nil {
+			bc.currentFinalizedBlock.Store(block)
+			headFinalizedBlockGauge.Update(int64(block.NumberU64()))
+		}
+	}
 	// Issue a status log for the user
 	currentFastBlock := bc.CurrentFastBlock()
+	currentFinalizedBlock := bc.CurrentFinalizedBlock()
 
 	headerTd := bc.GetTd(currentHeader.Hash(), currentHeader.Number.Uint64())
 	blockTd := bc.GetTd(currentBlock.Hash(), currentBlock.NumberU64())
@@ -470,6 +482,11 @@ func (bc *BlockChain) loadLastState() error {
 	log.Info("Loaded most recent local header", "number", currentHeader.Number, "hash", currentHeader.Hash(), "td", headerTd, "age", common.PrettyAge(time.Unix(int64(currentHeader.Time), 0)))
 	log.Info("Loaded most recent local full block", "number", currentBlock.Number(), "hash", currentBlock.Hash(), "td", blockTd, "age", common.PrettyAge(time.Unix(int64(currentBlock.Time()), 0)))
 	log.Info("Loaded most recent local fast block", "number", currentFastBlock.Number(), "hash", currentFastBlock.Hash(), "td", fastTd, "age", common.PrettyAge(time.Unix(int64(currentFastBlock.Time()), 0)))
+
+	if currentFinalizedBlock != nil {
+		finalTd := bc.GetTd(currentFinalizedBlock.Hash(), currentFinalizedBlock.NumberU64())
+		log.Info("Loaded most recent local finalized block", "number", currentFinalizedBlock.Number(), "hash", currentFinalizedBlock.Hash(), "td", finalTd, "age", common.PrettyAge(time.Unix(int64(currentFinalizedBlock.Time()), 0)))
+	}
 	if pivot := rawdb.ReadLastPivotNumber(bc.db); pivot != nil {
 		log.Info("Loaded last fast-sync pivot marker", "number", *pivot)
 	}
@@ -484,6 +501,13 @@ func (bc *BlockChain) SetHead(head uint64) error {
 	return err
 }
 
+// SetFinalized sets the finalized block.
+func (bc *BlockChain) SetFinalized(block *types.Block) {
+	bc.currentFinalizedBlock.Store(block)
+	rawdb.WriteFinalizedBlockHash(bc.db, block.Hash())
+	headFinalizedBlockGauge.Update(int64(block.NumberU64()))
+}
+
 // setHeadBeyondRoot rewinds the local chain to a new head with the extra condition
 // that the rewind must pass the specified state root. This method is meant to be
 // used when rewinding with snapshots enabled to ensure that we go back further than
diff --git a/core/blockchain_reader.go b/core/blockchain_reader.go
index 9e966df4e0..b8d4233c6e 100644
--- a/core/blockchain_reader.go
+++ b/core/blockchain_reader.go
@@ -49,6 +49,12 @@ func (bc *BlockChain) CurrentFastBlock() *types.Block {
 	return bc.currentFastBlock.Load().(*types.Block)
 }
 
+// CurrentFinalizedBlock retrieves the current finalized block of the canonical
+// chain. The block is retrieved from the blockchain's internal cache.
+func (bc *BlockChain) CurrentFinalizedBlock() *types.Block {
+	return bc.currentFinalizedBlock.Load().(*types.Block)
+}
+
 // HasHeader checks if a block header is present in the database or not, caching
 // it if present.
 func (bc *BlockChain) HasHeader(hash common.Hash, number uint64) bool {
diff --git a/core/rawdb/accessors_chain.go b/core/rawdb/accessors_chain.go
index c1a19926e3..8ea2e2ca72 100644
--- a/core/rawdb/accessors_chain.go
+++ b/core/rawdb/accessors_chain.go
@@ -216,6 +216,22 @@ func WriteHeadFastBlockHash(db ethdb.KeyValueWriter, hash common.Hash) {
 	}
 }
 
+// ReadFinalizedBlockHash retrieves the hash of the finalized block.
+func ReadFinalizedBlockHash(db ethdb.KeyValueReader) common.Hash {
+	data, _ := db.Get(headFinalizedBlockKey)
+	if len(data) == 0 {
+		return common.Hash{}
+	}
+	return common.BytesToHash(data)
+}
+
+// WriteFinalizedBlockHash stores the hash of the finalized block.
+func WriteFinalizedBlockHash(db ethdb.KeyValueWriter, hash common.Hash) {
+	if err := db.Put(headFinalizedBlockKey, hash.Bytes()); err != nil {
+		log.Crit("Failed to store last finalized block's hash", "err", err)
+	}
+}
+
 // ReadLastPivotNumber retrieves the number of the last pivot block. If the node
 // full synced, the last pivot will always be nil.
 func ReadLastPivotNumber(db ethdb.KeyValueReader) *uint64 {
diff --git a/core/rawdb/database.go b/core/rawdb/database.go
index 63b6da7605..2b870d16d4 100644
--- a/core/rawdb/database.go
+++ b/core/rawdb/database.go
@@ -418,8 +418,8 @@ func InspectDatabase(db ethdb.Database, keyPrefix, keyStart []byte) error {
 		default:
 			var accounted bool
 			for _, meta := range [][]byte{
-				databaseVersionKey, headHeaderKey, headBlockKey, headFastBlockKey, lastPivotKey,
-				fastTrieProgressKey, snapshotDisabledKey, SnapshotRootKey, snapshotJournalKey,
+				databaseVersionKey, headHeaderKey, headBlockKey, headFastBlockKey, headFinalizedBlockKey,
+				lastPivotKey, fastTrieProgressKey, snapshotDisabledKey, SnapshotRootKey, snapshotJournalKey,
 				snapshotGeneratorKey, snapshotRecoveryKey, txIndexTailKey, fastTxLookupLimitKey,
 				uncleanShutdownKey, badBlockKey, transitionStatusKey, skeletonSyncStatusKey,
 			} {
diff --git a/core/rawdb/schema.go b/core/rawdb/schema.go
index 08f3734880..041c9f0449 100644
--- a/core/rawdb/schema.go
+++ b/core/rawdb/schema.go
@@ -39,6 +39,9 @@ var (
 	// headFastBlockKey tracks the latest known incomplete block's hash during fast sync.
 	headFastBlockKey = []byte("LastFast")
 
+	// headFinalizedBlockKey tracks the latest known finalized block hash.
+	headFinalizedBlockKey = []byte("LastFinalized")
+
 	// lastPivotKey tracks the last pivot block used by fast sync (to reenable on sethead).
 	lastPivotKey = []byte("LastPivot")
 
diff --git a/eth/api.go b/eth/api.go
index f81dfa922b..ef69acb76e 100644
--- a/eth/api.go
+++ b/eth/api.go
@@ -285,6 +285,8 @@ func (api *PublicDebugAPI) DumpBlock(blockNr rpc.BlockNumber) (state.Dump, error
 	var block *types.Block
 	if blockNr == rpc.LatestBlockNumber {
 		block = api.eth.blockchain.CurrentBlock()
+	} else if blockNr == rpc.FinalizedBlockNumber {
+		block = api.eth.blockchain.CurrentFinalizedBlock()
 	} else {
 		block = api.eth.blockchain.GetBlockByNumber(uint64(blockNr))
 	}
@@ -373,6 +375,8 @@ func (api *PublicDebugAPI) AccountRange(blockNrOrHash rpc.BlockNumberOrHash, sta
 			var block *types.Block
 			if number == rpc.LatestBlockNumber {
 				block = api.eth.blockchain.CurrentBlock()
+			} else if number == rpc.FinalizedBlockNumber {
+				block = api.eth.blockchain.CurrentFinalizedBlock()
 			} else {
 				block = api.eth.blockchain.GetBlockByNumber(uint64(number))
 			}
diff --git a/eth/api_backend.go b/eth/api_backend.go
index 8eb6c02af7..f942710e2d 100644
--- a/eth/api_backend.go
+++ b/eth/api_backend.go
@@ -73,6 +73,9 @@ func (b *EthAPIBackend) HeaderByNumber(ctx context.Context, number rpc.BlockNumb
 	if number == rpc.LatestBlockNumber {
 		return b.eth.blockchain.CurrentBlock().Header(), nil
 	}
+	if number == rpc.FinalizedBlockNumber {
+		return b.eth.blockchain.CurrentFinalizedBlock().Header(), nil
+	}
 	return b.eth.blockchain.GetHeaderByNumber(uint64(number)), nil
 }
 
@@ -107,6 +110,9 @@ func (b *EthAPIBackend) BlockByNumber(ctx context.Context, number rpc.BlockNumbe
 	if number == rpc.LatestBlockNumber {
 		return b.eth.blockchain.CurrentBlock(), nil
 	}
+	if number == rpc.FinalizedBlockNumber {
+		return b.eth.blockchain.CurrentFinalizedBlock(), nil
+	}
 	return b.eth.blockchain.GetBlockByNumber(uint64(number)), nil
 }
 
diff --git a/eth/catalyst/api.go b/eth/catalyst/api.go
index 1525766604..81de68fbe7 100644
--- a/eth/catalyst/api.go
+++ b/eth/catalyst/api.go
@@ -22,6 +22,7 @@ import (
 	"encoding/binary"
 	"errors"
 	"fmt"
+	"sync"
 	"time"
 
 	"github.com/ethereum/go-ethereum/common"
@@ -60,6 +61,8 @@ type ConsensusAPI struct {
 	eth          *eth.Ethereum
 	remoteBlocks *headerQueue  // Cache of remote payloads received
 	localBlocks  *payloadQueue // Cache of local payloads generated
+	// Lock for the forkChoiceUpdated method
+	forkChoiceLock sync.Mutex
 }
 
 // NewConsensusAPI creates a new consensus api for the given backend.
@@ -86,11 +89,15 @@ func NewConsensusAPI(eth *eth.Ethereum) *ConsensusAPI {
 // If there are payloadAttributes:
 // 		we try to assemble a block with the payloadAttributes and return its payloadID
 func (api *ConsensusAPI) ForkchoiceUpdatedV1(update beacon.ForkchoiceStateV1, payloadAttributes *beacon.PayloadAttributesV1) (beacon.ForkChoiceResponse, error) {
+	api.forkChoiceLock.Lock()
+	defer api.forkChoiceLock.Unlock()
+
 	log.Trace("Engine API request received", "method", "ForkchoiceUpdated", "head", update.HeadBlockHash, "finalized", update.FinalizedBlockHash, "safe", update.SafeBlockHash)
 	if update.HeadBlockHash == (common.Hash{}) {
 		log.Warn("Forkchoice requested update to zero hash")
 		return beacon.STATUS_INVALID, nil // TODO(karalabe): Why does someone send us this?
 	}
+
 	// Check whether we have the block yet in our database or not. If not, we'll
 	// need to either trigger a sync, or to reject this forkchoice update for a
 	// reason.
@@ -154,7 +161,7 @@ func (api *ConsensusAPI) ForkchoiceUpdatedV1(update beacon.ForkchoiceStateV1, pa
 		if merger := api.eth.Merger(); !merger.PoSFinalized() {
 			merger.FinalizePoS()
 		}
-		// TODO (MariusVanDerWijden): If the finalized block is not in our canonical tree, somethings wrong
+		// If the finalized block is not in our canonical tree, somethings wrong
 		finalBlock := api.eth.BlockChain().GetBlockByHash(update.FinalizedBlockHash)
 		if finalBlock == nil {
 			log.Warn("Final block not available in database", "hash", update.FinalizedBlockHash)
@@ -163,8 +170,10 @@ func (api *ConsensusAPI) ForkchoiceUpdatedV1(update beacon.ForkchoiceStateV1, pa
 			log.Warn("Final block not in canonical chain", "number", block.NumberU64(), "hash", update.HeadBlockHash)
 			return beacon.STATUS_INVALID, errors.New("final block not canonical")
 		}
+		// Set the finalized block
+		api.eth.BlockChain().SetFinalized(finalBlock)
 	}
-	// TODO (MariusVanDerWijden): Check if the safe block hash is in our canonical tree, if not somethings wrong
+	// Check if the safe block hash is in our canonical tree, if not somethings wrong
 	if update.SafeBlockHash != (common.Hash{}) {
 		safeBlock := api.eth.BlockChain().GetBlockByHash(update.SafeBlockHash)
 		if safeBlock == nil {
diff --git a/eth/catalyst/api_test.go b/eth/catalyst/api_test.go
index 2ae6d2cd56..657819a118 100644
--- a/eth/catalyst/api_test.go
+++ b/eth/catalyst/api_test.go
@@ -476,7 +476,10 @@ func TestFullAPI(t *testing.T) {
 			t.Fatalf("Failed to insert block: %v", err)
 		}
 		if ethservice.BlockChain().CurrentBlock().NumberU64() != payload.Number {
-			t.Fatalf("Chain head should be updated")
+			t.Fatal("Chain head should be updated")
+		}
+		if ethservice.BlockChain().CurrentFinalizedBlock().NumberU64() != payload.Number-1 {
+			t.Fatal("Finalized block should be updated")
 		}
 		parent = ethservice.BlockChain().CurrentBlock()
 	}
diff --git a/internal/jsre/deps/web3.js b/internal/jsre/deps/web3.js
index 69686ce921..f82d93bdc5 100644
--- a/internal/jsre/deps/web3.js
+++ b/internal/jsre/deps/web3.js
@@ -3696,7 +3696,7 @@ var outputBigNumberFormatter = function (number) {
 };
 
 var isPredefinedBlockNumber = function (blockNumber) {
-    return blockNumber === 'latest' || blockNumber === 'pending' || blockNumber === 'earliest';
+    return blockNumber === 'latest' || blockNumber === 'pending' || blockNumber === 'earliest' || blockNumber === 'finalized';
 };
 
 var inputDefaultBlockNumberFormatter = function (blockNumber) {
diff --git a/rpc/types.go b/rpc/types.go
index 46b08caf68..f4d05be48c 100644
--- a/rpc/types.go
+++ b/rpc/types.go
@@ -61,9 +61,10 @@ type jsonWriter interface {
 type BlockNumber int64
 
 const (
-	PendingBlockNumber  = BlockNumber(-2)
-	LatestBlockNumber   = BlockNumber(-1)
-	EarliestBlockNumber = BlockNumber(0)
+	FinalizedBlockNumber = BlockNumber(-3)
+	PendingBlockNumber   = BlockNumber(-2)
+	LatestBlockNumber    = BlockNumber(-1)
+	EarliestBlockNumber  = BlockNumber(0)
 )
 
 // UnmarshalJSON parses the given JSON fragment into a BlockNumber. It supports:
@@ -88,6 +89,9 @@ func (bn *BlockNumber) UnmarshalJSON(data []byte) error {
 	case "pending":
 		*bn = PendingBlockNumber
 		return nil
+	case "finalized":
+		*bn = FinalizedBlockNumber
+		return nil
 	}
 
 	blckNum, err := hexutil.DecodeUint64(input)
@@ -112,6 +116,8 @@ func (bn BlockNumber) MarshalText() ([]byte, error) {
 		return []byte("latest"), nil
 	case PendingBlockNumber:
 		return []byte("pending"), nil
+	case FinalizedBlockNumber:
+		return []byte("finalized"), nil
 	default:
 		return hexutil.Uint64(bn).MarshalText()
 	}
@@ -158,6 +164,10 @@ func (bnh *BlockNumberOrHash) UnmarshalJSON(data []byte) error {
 		bn := PendingBlockNumber
 		bnh.BlockNumber = &bn
 		return nil
+	case "finalized":
+		bn := FinalizedBlockNumber
+		bnh.BlockNumber = &bn
+		return nil
 	default:
 		if len(input) == 66 {
 			hash := common.Hash{}
diff --git a/tests/testdata b/tests/testdata
index 092a8834dc..a380655e5f 160000
--- a/tests/testdata
+++ b/tests/testdata
@@ -1 +1 @@
-Subproject commit 092a8834dc445e683103689d6f0e75a5d380a190
+Subproject commit a380655e5ffab1a5ea0f4d860224bdb19013f06a