diff --git a/framework/src/modules/fee/cc_method.ts b/framework/src/modules/fee/cc_method.ts
index c88eabc8ba4..986b5455637 100644
--- a/framework/src/modules/fee/cc_method.ts
+++ b/framework/src/modules/fee/cc_method.ts
@@ -14,7 +14,7 @@
 
 import { BaseCCMethod } from '../interoperability/base_cc_method';
 import { CrossChainMessageContext } from '../interoperability/types';
-import { InteroperabilityMethod, TokenMethod } from './types';
+import { InteroperabilityMethod, ModuleConfig, TokenMethod } from './types';
 import { NamedRegistry } from '../named_registry';
 import { CONTEXT_STORE_KEY_AVAILABLE_CCM_FEE } from './constants';
 import { getContextStoreBigInt } from '../../state_machine';
@@ -27,12 +27,17 @@ export class FeeInteroperableMethod extends BaseCCMethod {
 
 	private _interopMethod!: InteroperabilityMethod;
 	private _tokenMethod!: TokenMethod;
+	private _feePoolAddress?: Buffer;
 
 	public constructor(stores: NamedRegistry, events: NamedRegistry, moduleName: string) {
 		super(stores, events);
 		this._moduleName = moduleName;
 	}
 
+	public init(config: ModuleConfig): void {
+		this._feePoolAddress = config.feePoolAddress;
+	}
+
 	public addDependencies(interoperabilityMethod: InteroperabilityMethod, tokenMethod: TokenMethod) {
 		this._interopMethod = interoperabilityMethod;
 		this._tokenMethod = tokenMethod;
@@ -71,12 +76,27 @@ export class FeeInteroperableMethod extends BaseCCMethod {
 			CONTEXT_STORE_KEY_AVAILABLE_CCM_FEE,
 		);
 		const burntAmount = ctx.ccm.fee - availableFee;
-		await this._tokenMethod.burn(
-			ctx.getMethodContext(),
-			ctx.transaction.senderAddress,
-			messageTokenID,
-			burntAmount,
-		);
+
+		if (
+			this._feePoolAddress &&
+			(await this._tokenMethod.userAccountExists(ctx, this._feePoolAddress, messageTokenID))
+		) {
+			await this._tokenMethod.transfer(
+				ctx.getMethodContext(),
+				ctx.transaction.senderAddress,
+				this._feePoolAddress,
+				messageTokenID,
+				burntAmount,
+			);
+		} else {
+			await this._tokenMethod.burn(
+				ctx.getMethodContext(),
+				ctx.transaction.senderAddress,
+				messageTokenID,
+				burntAmount,
+			);
+		}
+
 		const { ccmID } = getEncodedCCMAndID(ctx.ccm);
 
 		this.events.get(RelayerFeeProcessedEvent).log(ctx, {
diff --git a/framework/src/modules/fee/module.ts b/framework/src/modules/fee/module.ts
index c4cf27478e0..937c16e21f2 100644
--- a/framework/src/modules/fee/module.ts
+++ b/framework/src/modules/fee/module.ts
@@ -96,6 +96,7 @@ export class FeeModule extends BaseInteroperableModule {
 		};
 		this.method.init(moduleConfig);
 		this.endpoint.init(moduleConfig);
+		this.crossChainMethod.init(moduleConfig);
 
 		this._tokenID = moduleConfig.feeTokenID;
 		this._minFeePerByte = moduleConfig.minFeePerByte;
diff --git a/framework/test/unit/modules/fee/cc_method.spec.ts b/framework/test/unit/modules/fee/cc_method.spec.ts
index 99bd46d21a9..ba6c96a622f 100644
--- a/framework/test/unit/modules/fee/cc_method.spec.ts
+++ b/framework/test/unit/modules/fee/cc_method.spec.ts
@@ -33,12 +33,14 @@ describe('FeeInteroperableMethod', () => {
 		status: 1,
 	};
 	const messageFeeTokenID = Buffer.from('0000000000000002', 'hex');
+	const feePoolAddress = utils.getRandomBytes(20);
 
 	let feeMethod: FeeInteroperableMethod;
 	let context: CrossChainMessageContext;
 
 	beforeEach(() => {
 		feeMethod = new FeeInteroperableMethod(feeModule.stores, feeModule.events, feeModule.name);
+		feeMethod.init({ feePoolAddress } as any);
 		feeMethod.addDependencies(
 			{
 				getMessageFeeTokenID: jest.fn().mockResolvedValue(messageFeeTokenID),
@@ -83,10 +85,11 @@ describe('FeeInteroperableMethod', () => {
 		beforeEach(async () => {
 			jest.spyOn(feeMethod['events'].get(RelayerFeeProcessedEvent), 'log');
 			context.contextStore.set(CONTEXT_STORE_KEY_AVAILABLE_CCM_FEE, availableFee);
-			await feeMethod.afterCrossChainCommandExecute(context);
 		});
 
-		it('should unlock ccm fee from sender', () => {
+		it('should unlock ccm fee from sender', async () => {
+			await feeMethod.afterCrossChainCommandExecute(context);
+
 			expect(feeMethod['_tokenMethod'].unlock).toHaveBeenCalledWith(
 				expect.anything(),
 				context.transaction.senderAddress,
@@ -96,7 +99,23 @@ describe('FeeInteroperableMethod', () => {
 			);
 		});
 
-		it('should burn the used fee', () => {
+		it('should transfer the used fee to fee pool address if it exists and is initialized for the cross-chain message fee token', async () => {
+			feeMethod['_tokenMethod'].userAccountExists = jest.fn().mockResolvedValue(true);
+			await feeMethod.afterCrossChainCommandExecute(context);
+
+			expect(feeMethod['_tokenMethod'].transfer).toHaveBeenCalledWith(
+				expect.anything(),
+				context.transaction.senderAddress,
+				feePoolAddress,
+				messageFeeTokenID,
+				ccm.fee - availableFee,
+			);
+		});
+
+		it('should burn the used fee', async () => {
+			feeMethod['_tokenMethod'].userAccountExists = jest.fn().mockResolvedValue(false);
+			await feeMethod.afterCrossChainCommandExecute(context);
+
 			expect(feeMethod['_tokenMethod'].burn).toHaveBeenCalledWith(
 				expect.anything(),
 				context.transaction.senderAddress,
@@ -105,7 +124,9 @@ describe('FeeInteroperableMethod', () => {
 			);
 		});
 
-		it('should log event', () => {
+		it('should log event', async () => {
+			await feeMethod.afterCrossChainCommandExecute(context);
+
 			expect(context.eventQueue.getEvents()).toHaveLength(1);
 			expect(feeMethod['events'].get(RelayerFeeProcessedEvent).log).toHaveBeenCalledWith(
 				expect.anything(),
@@ -118,7 +139,9 @@ describe('FeeInteroperableMethod', () => {
 			);
 		});
 
-		it('should reset the context store', () => {
+		it('should reset the context store', async () => {
+			await feeMethod.afterCrossChainCommandExecute(context);
+
 			expect(context.contextStore.get(CONTEXT_STORE_KEY_AVAILABLE_CCM_FEE)).toBeUndefined();
 		});
 	});