diff --git a/configs/mainnet.yaml b/configs/mainnet.yaml
index 6ba8085a5..2e15e84fd 100644
--- a/configs/mainnet.yaml
+++ b/configs/mainnet.yaml
@@ -207,6 +207,8 @@ EPOCHS_PER_CUSTODY_PERIOD: 2048
 CUSTODY_PERIOD_TO_RANDAO_PADDING: 2048
 # 2**7 (= 128) epochs, ~14 hours
 MAX_REVEAL_LATENESS_DECREMENT: 128
+# 2**14 (= 16,384) epochs
+CUSTODY_RESPONSE_DEADLINE: 16384
 
 # Max operations
 # 2**8 (= 256)
diff --git a/configs/minimal.yaml b/configs/minimal.yaml
index 87509a442..d99aa164a 100644
--- a/configs/minimal.yaml
+++ b/configs/minimal.yaml
@@ -208,6 +208,8 @@ EARLY_DERIVED_SECRET_PENALTY_MAX_FUTURE_EPOCHS: 4096
 EPOCHS_PER_CUSTODY_PERIOD: 8
 # 2**11 (= 2,048) epochs
 CUSTODY_PERIOD_TO_RANDAO_PADDING: 8
+# 2**14 (= 16,384) epochs
+CUSTODY_RESPONSE_DEADLINE: 32
 
 # Max operations
 # 2**8 (= 256)
diff --git a/specs/phase1/beacon-chain.md b/specs/phase1/beacon-chain.md
index 9d55cde3e..e9ba4d88d 100644
--- a/specs/phase1/beacon-chain.md
+++ b/specs/phase1/beacon-chain.md
@@ -1137,7 +1137,7 @@ def process_phase_1_final_updates(state: BeaconState) -> None:
 
 #### Custody game updates
 
-`process_reveal_deadlines` and `process_custody_final_updates` are defined in [the Custody Game spec](./custody-game.md), 
+`process_reveal_deadlines`, `process_challenge_deadlines` and `process_custody_final_updates` are defined in [the Custody Game spec](./custody-game.md), 
 
 #### Online-tracking
 
diff --git a/tests/core/pyspec/eth2spec/test/phase_1/epoch_processing/test_process_challenge_deadlines.py b/tests/core/pyspec/eth2spec/test/phase_1/epoch_processing/test_process_challenge_deadlines.py
new file mode 100644
index 000000000..2e60d167c
--- /dev/null
+++ b/tests/core/pyspec/eth2spec/test/phase_1/epoch_processing/test_process_challenge_deadlines.py
@@ -0,0 +1,76 @@
+from eth2spec.test.helpers.custody import (
+    get_valid_chunk_challenge,
+    get_shard_transition,
+    get_valid_custody_key_reveal,
+)
+from eth2spec.test.helpers.attestations import (
+    get_valid_on_time_attestation,
+)
+from eth2spec.test.helpers.state import next_epoch_via_block, transition_to
+from eth2spec.test.context import (
+    with_all_phases_except,
+    spec_state_test,
+)
+from eth2spec.test.phase_0.block_processing.test_process_attestation import run_attestation_processing
+from eth2spec.test.phase_0.epoch_processing.run_epoch_process_base import run_epoch_processing_with
+
+from eth2spec.test.phase_1.block_processing.test_process_chunk_challenge import (
+    run_chunk_challenge_processing,
+)
+from eth2spec.test.phase_1.block_processing.test_process_custody_key_reveal import run_custody_key_reveal_processing
+
+
+def run_process_challenge_deadlines(spec, state):
+    yield from run_epoch_processing_with(spec, state, 'process_challenge_deadlines')
+
+
+@with_all_phases_except(['phase0'])
+@spec_state_test
+def test_validator_slashed_after_chunk_challenge(spec, state):
+    transition_to(spec, state, state.slot + 1)
+    shard = 0
+    offset_slots = spec.get_offset_slots(state, shard)
+    shard_transition = get_shard_transition(spec, state.slot, [2**15 // 3] * len(offset_slots))
+    attestation = get_valid_on_time_attestation(spec, state, index=shard, signed=True,
+                                                shard_transition=shard_transition)
+
+    transition_to(spec, state, state.slot + spec.MIN_ATTESTATION_INCLUSION_DELAY)
+
+    _, _, _ = run_attestation_processing(spec, state, attestation)
+
+    validator_index = spec.get_beacon_committee(
+        state,
+        attestation.data.slot,
+        attestation.data.index
+    )[0]
+
+    spec.initiate_validator_exit(state, validator_index)
+    assert state.validators[validator_index].withdrawable_epoch < spec.FAR_FUTURE_EPOCH
+
+    transition_to(spec, state, state.slot + spec.SLOTS_PER_EPOCH)
+
+    assert state.validators[validator_index].withdrawable_epoch == spec.FAR_FUTURE_EPOCH
+
+    while spec.get_current_epoch(state) < state.validators[validator_index].exit_epoch:
+        next_epoch_via_block(spec, state)
+    while (state.validators[validator_index].next_custody_secret_to_reveal
+           <= spec.get_custody_period_for_validator(
+               validator_index,
+               state.validators[validator_index].exit_epoch - 1)):
+        custody_key_reveal = get_valid_custody_key_reveal(spec, state, validator_index=validator_index)
+        _, _, _ = run_custody_key_reveal_processing(spec, state, custody_key_reveal)
+
+    next_epoch_via_block(spec, state)
+
+    challenge = get_valid_chunk_challenge(spec, state, attestation, shard_transition)
+
+    _, _, _ = run_chunk_challenge_processing(spec, state, challenge)
+
+    assert state.validators[validator_index].slashed == 0
+
+    transition_to(spec, state, state.slot + (spec.CUSTODY_RESPONSE_DEADLINE +
+                                             spec.EPOCHS_PER_CUSTODY_PERIOD) * spec.SLOTS_PER_EPOCH)
+
+    yield from run_process_challenge_deadlines(spec, state)
+
+    assert state.validators[validator_index].slashed == 1