diff --git a/src/contracts/misc/GhoAaveSteward.sol b/src/contracts/misc/GhoAaveSteward.sol
index de69d92b..4ea82c80 100644
--- a/src/contracts/misc/GhoAaveSteward.sol
+++ b/src/contracts/misc/GhoAaveSteward.sol
@@ -84,6 +84,25 @@ contract GhoAaveSteward is RiskCouncilControlled, IGhoAaveSteward {
       .setBorrowCap(GHO_TOKEN, newBorrowCap);
   }
 
+  /// @inheritdoc IGhoAaveSteward
+  function updateGhoSupplyCap(
+    uint256 newSupplyCap
+  ) external onlyRiskCouncil notTimelocked(_ghoTimelocks.ghoSupplyCapLastUpdate) {
+    DataTypes.ReserveConfigurationMap memory configuration = IPool(
+      IPoolAddressesProvider(POOL_ADDRESSES_PROVIDER).getPool()
+    ).getConfiguration(GHO_TOKEN);
+    uint256 currentSupplyCap = configuration.getSupplyCap();
+    require(
+      _isDifferenceLowerThanMax(currentSupplyCap, newSupplyCap, currentSupplyCap),
+      'INVALID_SUPPLY_CAP_UPDATE'
+    );
+
+    _ghoTimelocks.ghoSupplyCapLastUpdate = uint40(block.timestamp);
+
+    IPoolConfigurator(IPoolAddressesProvider(POOL_ADDRESSES_PROVIDER).getPoolConfigurator())
+      .setSupplyCap(GHO_TOKEN, newSupplyCap);
+  }
+
   /// @inheritdoc IGhoAaveSteward
   function getGhoTimelocks() external view returns (GhoDebounce memory) {
     return _ghoTimelocks;
diff --git a/src/contracts/misc/interfaces/IGhoAaveSteward.sol b/src/contracts/misc/interfaces/IGhoAaveSteward.sol
index f98e6079..1e01633c 100644
--- a/src/contracts/misc/interfaces/IGhoAaveSteward.sol
+++ b/src/contracts/misc/interfaces/IGhoAaveSteward.sol
@@ -9,6 +9,7 @@ pragma solidity ^0.8.10;
 interface IGhoAaveSteward {
   struct GhoDebounce {
     uint40 ghoBorrowCapLastUpdate;
+    uint40 ghoSupplyCapLastUpdate;
   }
 
   /**
@@ -32,6 +33,15 @@ interface IGhoAaveSteward {
    */
   function updateGhoBorrowCap(uint256 newBorrowCap) external;
 
+  /**
+   * @notice Updates the GHO supply cap, only if:
+   * - respects `MINIMUM_DELAY`, the minimum time delay between updates
+   * - the update changes up to 100% upwards or downwards
+   * @dev Only callable by Risk Council
+   * @param newSupplyCap The new supply cap (in whole tokens)
+   */
+  function updateGhoSupplyCap(uint256 newSupplyCap) external;
+
   /**
    * @notice Returns the minimum delay that must be respected between parameters update.
    * @return The minimum delay between parameter updates (in seconds)
diff --git a/src/test/TestGhoAaveSteward.t.sol b/src/test/TestGhoAaveSteward.t.sol
index 13c1de7a..2c1131b6 100644
--- a/src/test/TestGhoAaveSteward.t.sol
+++ b/src/test/TestGhoAaveSteward.t.sol
@@ -117,6 +117,79 @@ contract TestGhoAaveSteward is TestGhoBase {
     GHO_AAVE_STEWARD.updateGhoBorrowCap(oldBorrowCap * 2 + 1);
   }
 
+  function testUpdateGhoSupplyCap() public {
+    uint256 oldSupplyCap = 1e6;
+    _setGhoSupplyCapViaConfigurator(oldSupplyCap);
+    uint256 newSupplyCap = oldSupplyCap + 1;
+    vm.prank(RISK_COUNCIL);
+    GHO_AAVE_STEWARD.updateGhoSupplyCap(newSupplyCap);
+    uint256 currentSupplyCap = _getGhoSupplyCap();
+    assertEq(newSupplyCap, currentSupplyCap);
+  }
+
+  function testUpdateGhoSupplyCapMaxIncrease() public {
+    uint256 oldSupplyCap = 1e6;
+    _setGhoSupplyCapViaConfigurator(oldSupplyCap);
+    uint256 newSupplyCap = oldSupplyCap * 2;
+    vm.prank(RISK_COUNCIL);
+    GHO_AAVE_STEWARD.updateGhoSupplyCap(newSupplyCap);
+    uint256 currentSupplyCap = _getGhoSupplyCap();
+    assertEq(newSupplyCap, currentSupplyCap);
+  }
+
+  function testUpdateGhoSupplyCapMaxDecrease() public {
+    vm.prank(RISK_COUNCIL);
+    GHO_AAVE_STEWARD.updateGhoSupplyCap(0);
+    uint256 currentSupplyCap = _getGhoSupplyCap();
+    assertEq(currentSupplyCap, 0);
+  }
+
+  function testUpdateGhoSupplyCapTimelock() public {
+    uint256 oldSupplyCap = 1e6;
+    _setGhoSupplyCapViaConfigurator(oldSupplyCap);
+    vm.prank(RISK_COUNCIL);
+    GHO_AAVE_STEWARD.updateGhoSupplyCap(oldSupplyCap + 1);
+    IGhoAaveSteward.GhoDebounce memory ghoTimelocks = GHO_AAVE_STEWARD.getGhoTimelocks();
+    assertEq(ghoTimelocks.ghoSupplyCapLastUpdate, block.timestamp);
+  }
+
+  function testUpdateGhoSupplyCapAfterTimelock() public {
+    uint256 oldSupplyCap = 1e6;
+    _setGhoSupplyCapViaConfigurator(oldSupplyCap);
+    vm.prank(RISK_COUNCIL);
+    GHO_AAVE_STEWARD.updateGhoSupplyCap(oldSupplyCap + 1);
+    skip(GHO_AAVE_STEWARD.MINIMUM_DELAY() + 1);
+    uint256 newSupplyCap = oldSupplyCap + 2;
+    vm.prank(RISK_COUNCIL);
+    GHO_AAVE_STEWARD.updateGhoSupplyCap(newSupplyCap);
+    uint256 currentSupplyCap = _getGhoSupplyCap();
+    assertEq(newSupplyCap, currentSupplyCap);
+  }
+
+  function testRevertUpdateGhoSupplyCapIfUnauthorized() public {
+    vm.prank(ALICE);
+    vm.expectRevert('INVALID_CALLER');
+    GHO_AAVE_STEWARD.updateGhoSupplyCap(50e6);
+  }
+
+  function testRevertUpdateGhoSupplyCapIfUpdatedTooSoon() public {
+    uint256 oldSupplyCap = 1e6;
+    _setGhoSupplyCapViaConfigurator(oldSupplyCap);
+    vm.prank(RISK_COUNCIL);
+    GHO_AAVE_STEWARD.updateGhoSupplyCap(oldSupplyCap + 1);
+    vm.prank(RISK_COUNCIL);
+    vm.expectRevert('DEBOUNCE_NOT_RESPECTED');
+    GHO_AAVE_STEWARD.updateGhoSupplyCap(oldSupplyCap + 2);
+  }
+
+  function testRevertUpdateGhoSupplyCapIfValueMoreThanDouble() public {
+    uint256 oldSupplyCap = 1e6;
+    _setGhoSupplyCapViaConfigurator(oldSupplyCap);
+    vm.prank(RISK_COUNCIL);
+    vm.expectRevert('INVALID_SUPPLY_CAP_UPDATE');
+    GHO_AAVE_STEWARD.updateGhoSupplyCap(oldSupplyCap * 2 + 1);
+  }
+
   function _setGhoBorrowCapViaConfigurator(uint256 newBorrowCap) internal {
     CONFIGURATOR.setBorrowCap(address(GHO_TOKEN), newBorrowCap);
   }
@@ -127,4 +200,15 @@ contract TestGhoAaveSteward is TestGhoBase {
     );
     return configuration.getBorrowCap();
   }
+
+  function _setGhoSupplyCapViaConfigurator(uint256 newSupplyCap) internal {
+    CONFIGURATOR.setSupplyCap(address(GHO_TOKEN), newSupplyCap);
+  }
+
+  function _getGhoSupplyCap() internal view returns (uint256) {
+    DataTypes.ReserveConfigurationMap memory configuration = POOL.getConfiguration(
+      address(GHO_TOKEN)
+    );
+    return configuration.getSupplyCap();
+  }
 }
diff --git a/src/test/mocks/MockConfigurator.sol b/src/test/mocks/MockConfigurator.sol
index c7f6d2e1..74b4f7a7 100644
--- a/src/test/mocks/MockConfigurator.sol
+++ b/src/test/mocks/MockConfigurator.sol
@@ -18,6 +18,8 @@ contract MockConfigurator {
 
   event BorrowCapChanged(address indexed asset, uint256 oldBorrowCap, uint256 newBorrowCap);
 
+  event SupplyCapChanged(address indexed asset, uint256 oldSupplyCap, uint256 newSupplyCap);
+
   constructor(IPool pool) {
     _pool = pool;
   }
@@ -44,4 +46,12 @@ contract MockConfigurator {
     _pool.setConfiguration(asset, currentConfig);
     emit BorrowCapChanged(asset, oldBorrowCap, newBorrowCap);
   }
+
+  function setSupplyCap(address asset, uint256 newSupplyCap) external {
+    DataTypes.ReserveConfigurationMap memory currentConfig = _pool.getConfiguration(asset);
+    uint256 oldSupplyCap = currentConfig.getSupplyCap();
+    currentConfig.setSupplyCap(newSupplyCap);
+    _pool.setConfiguration(asset, currentConfig);
+    emit SupplyCapChanged(asset, oldSupplyCap, newSupplyCap);
+  }
 }