diff --git a/node/src/chain/stall_chain_fsm.rs b/node/src/chain/stall_chain_fsm.rs
new file mode 100644
index 0000000000..5dbe3b98b7
--- /dev/null
+++ b/node/src/chain/stall_chain_fsm.rs
@@ -0,0 +1,121 @@
+// This Source Code Form is subject to the terms of the Mozilla Public
+// License, v. 2.0. If a copy of the MPL was not distributed with this
+// file, You can obtain one at http://mozilla.org/MPL/2.0/.
+//
+// Copyright (c) DUSK NETWORK. All rights reserved.
+
+use node_data::ledger::Block;
+use std::collections::BTreeMap;
+
+const CONSECUTIVE_BLOCKS_THRESHOLD: usize = 5;
+
+#[derive(Debug, Clone, Copy, PartialEq)]
+pub(crate) enum State {
+    /// Blocks are being accepted
+    Running,
+    /// No block has been accepted recently
+    ///
+    /// A chain progress may be stalled for any reasons listed below:
+    /// - `disconnected`  Node is not receiving any messages from the network
+    /// - `open_consensus` Network is struggling to produce a block for many
+    ///   iterations
+    /// - `higher_iteration_branch` Network has moved forward with block of a
+    ///   higher iteration
+    Stalled,
+    /// Node is disconnected from the main branch
+    StalledOnFork,
+}
+
+/// Implements a simple FSM to detect a stalled state of the chain
+pub(crate) struct StalledChainFSM {
+    state: State,
+    recovery_blocks: BTreeMap<u64, Block>,
+
+    latest_finalized: Option<Block>,
+    tip: Option<Block>,
+}
+
+impl StalledChainFSM {
+    pub(crate) fn new() -> Self {
+        Self {
+            state: State::Running,
+            recovery_blocks: BTreeMap::new(),
+            latest_finalized: None,
+            tip: None,
+        }
+    }
+
+    pub(crate) fn on_block_received(&mut self, blk: &Block) -> State {
+        let curr = self.state;
+        match curr {
+            State::Stalled => self.on_stalled(blk),
+            State::StalledOnFork | State::Running => curr,
+        }
+    }
+
+    /// Returns recovery blocks as a vector
+    pub(crate) fn recovery_blocks(&self) -> Vec<Block> {
+        self.recovery_blocks.values().cloned().collect()
+    }
+
+    /// Handles block from wire in the `Stalled` state
+    pub(crate) fn on_stalled(&mut self, blk: &Block) -> State {
+        let key = blk.header().height;
+        self.recovery_blocks
+            .entry(key)
+            .or_insert_with(|| blk.clone());
+
+        if self.recovery_blocks.len() < CONSECUTIVE_BLOCKS_THRESHOLD {
+            return State::Stalled;
+        }
+
+        // Check recovery blocks contains at most N consecutive blocks
+        let mut prev = self
+            .latest_finalized
+            .as_ref()
+            .map(|b| b.header().height)
+            .unwrap_or(0); // TODO:
+
+        let consecutive = self.recovery_blocks.keys().all(|&key| {
+            let is_consecutive = key == prev + 1;
+            prev = key;
+            is_consecutive
+        });
+
+        if !consecutive {
+            // Not enough consecutive blocks collected yet
+            return State::Stalled;
+        }
+
+        // Detect if collected blocks are valid
+        if self
+            .recovery_blocks
+            .iter()
+            .all(|(_, blk)| self.dry_run_accept_block(blk))
+        {
+            State::StalledOnFork
+        } else {
+            State::Stalled
+        }
+    }
+
+    pub(crate) fn on_block_accepted(&mut self, blk: &Block, is_final: bool) {
+        self.state = State::Running;
+        self.recovery_blocks.clear();
+
+        if is_final {
+            self.latest_finalized = Some(blk.clone());
+        }
+
+        self.tip = Some(blk.clone());
+    }
+
+    pub(crate) fn on_accept_block_timeout(&mut self) {
+        self.state = State::Stalled;
+    }
+
+    pub(crate) fn dry_run_accept_block(&self, _blk: &Block) -> bool {
+        // TODO: Implement dry-run accept block
+        false
+    }
+}