diff --git a/.changelog/unreleased/dependencies/3103-bump-ics.md b/.changelog/unreleased/dependencies/3103-bump-ics.md
new file mode 100644
index 00000000000..3d64d942563
--- /dev/null
+++ b/.changelog/unreleased/dependencies/3103-bump-ics.md
@@ -0,0 +1,3 @@
+- Bump [ICS](https://github.com/cosmos/interchain-security) to
+  [v4.2.0-lsm](https://github.com/cosmos/interchain-security/releases/tag/v4.2.0-lsm)
+  ([\#3103](https://github.com/cosmos/gaia/pull/3103))
\ No newline at end of file
diff --git a/.changelog/unreleased/features/3103-pss.md b/.changelog/unreleased/features/3103-pss.md
new file mode 100644
index 00000000000..138fc5769d2
--- /dev/null
+++ b/.changelog/unreleased/features/3103-pss.md
@@ -0,0 +1,3 @@
+- Add ICS 2.0 aka Partial Set Security (PSS). 
+  See the [PSS docs](https://cosmos.github.io/interchain-security/features/partial-set-security) for more details.
+  ([\#3103](https://github.com/cosmos/gaia/pull/3103))
\ No newline at end of file
diff --git a/.changelog/unreleased/state-breaking/3103-pss.md b/.changelog/unreleased/state-breaking/3103-pss.md
new file mode 100644
index 00000000000..90043fae534
--- /dev/null
+++ b/.changelog/unreleased/state-breaking/3103-pss.md
@@ -0,0 +1,2 @@
+- Add ICS 2.0 aka Partial Set Security (PSS)
+  ([\#3103](https://github.com/cosmos/gaia/pull/3103))
\ No newline at end of file
diff --git a/go.mod b/go.mod
index 0f6d80f1a1e..73be7c2039d 100644
--- a/go.mod
+++ b/go.mod
@@ -9,7 +9,7 @@ require (
 	cosmossdk.io/simapp v0.0.0-20230602123434-616841b9704d
 	cosmossdk.io/tools/rosetta v0.2.1
 	github.com/Stride-Labs/ibc-rate-limiting v1.0.1
-	github.com/cometbft/cometbft v0.37.5
+	github.com/cometbft/cometbft v0.37.6
 	github.com/cometbft/cometbft-db v0.11.0
 	github.com/cosmos/cosmos-sdk v0.47.13-ics-lsm
 	github.com/cosmos/go-bip39 v1.0.0
@@ -231,7 +231,7 @@ replace (
 	github.com/cosmos/cosmos-sdk => github.com/cosmos/cosmos-sdk v0.47.13-ics-lsm
 
 	// Use special ICS v4.1.0-ics-lsm release with support for LSM
-	github.com/cosmos/interchain-security/v4 => github.com/cosmos/interchain-security/v4 v4.2.0-lsm-rc0
+	github.com/cosmos/interchain-security/v4 => github.com/cosmos/interchain-security/v4 v4.2.0-lsm
 
 	// TODO: remove it: https://github.com/cosmos/cosmos-sdk/issues/13134
 	github.com/dgrijalva/jwt-go => github.com/golang-jwt/jwt/v4 v4.4.2
diff --git a/go.sum b/go.sum
index a51a3e2efca..9a7e164a6a8 100644
--- a/go.sum
+++ b/go.sum
@@ -375,8 +375,8 @@ github.com/codahale/hdrhistogram v0.0.0-20161010025455-3a0bb77429bd/go.mod h1:sE
 github.com/coinbase/kryptology v1.8.0/go.mod h1:RYXOAPdzOGUe3qlSFkMGn58i3xUA8hmxYHksuq+8ciI=
 github.com/coinbase/rosetta-sdk-go v0.7.9 h1:lqllBjMnazTjIqYrOGv8h8jxjg9+hJazIGZr9ZvoCcA=
 github.com/coinbase/rosetta-sdk-go v0.7.9/go.mod h1:0/knutI7XGVqXmmH4OQD8OckFrbQ8yMsUZTG7FXCR2M=
-github.com/cometbft/cometbft v0.37.5 h1:/U/TlgMh4NdnXNo+YU9T2NMCWyhXNDF34Mx582jlvq0=
-github.com/cometbft/cometbft v0.37.5/go.mod h1:QC+mU0lBhKn8r9qvmnq53Dmf3DWBt4VtkcKw2C81wxY=
+github.com/cometbft/cometbft v0.37.6 h1:2BSD0lGPbcIyRd99Pf1zH0Sa8o0pbfqVWEDbZ4Ec2Uc=
+github.com/cometbft/cometbft v0.37.6/go.mod h1:5FRkFil9uagHZogIX9x8z51c3GIPpQmdIN8Mq46HfzY=
 github.com/cometbft/cometbft-db v0.11.0 h1:M3Lscmpogx5NTbb1EGyGDaFRdsoLWrUWimFEyf7jej8=
 github.com/cometbft/cometbft-db v0.11.0/go.mod h1:GDPJAC/iFHNjmZZPN8V8C1yr/eyityhi2W1hz2MGKSc=
 github.com/confio/ics23/go v0.9.0 h1:cWs+wdbS2KRPZezoaaj+qBleXgUk5WOQFMP3CQFGTr4=
@@ -415,8 +415,8 @@ github.com/cosmos/ibc-go/v7 v7.4.0 h1:8FqYMptvksgMvlbN4UW9jFxTXzsPyfAzEZurujXac8
 github.com/cosmos/ibc-go/v7 v7.4.0/go.mod h1:L/KaEhzV5TGUCTfGysVgMBQtl5Dm7hHitfpk+GIeoAo=
 github.com/cosmos/ics23/go v0.10.0 h1:iXqLLgp2Lp+EdpIuwXTYIQU+AiHj9mOC2X9ab++bZDM=
 github.com/cosmos/ics23/go v0.10.0/go.mod h1:ZfJSmng/TBNTBkFemHHHj5YY7VAU/MBU980F4VU1NG0=
-github.com/cosmos/interchain-security/v4 v4.2.0-lsm-rc0 h1:1KLT2DyCBZYTZ1BoCaOgkyU2gI0NHknbJaCGPTH9m6s=
-github.com/cosmos/interchain-security/v4 v4.2.0-lsm-rc0/go.mod h1:TbNWsxE/oPkv9heXyI5efPsyNWFQKCA16sn+bOVyTD0=
+github.com/cosmos/interchain-security/v4 v4.2.0-lsm h1:/ET7ibwJ0tWf5SVRDwSVJ0G53b3i89BsOiFaCguUCDE=
+github.com/cosmos/interchain-security/v4 v4.2.0-lsm/go.mod h1:xwuWSAibUdRrUK6Lr2r2K5Bf2tHZNXJkeVoZhQhH6s0=
 github.com/cosmos/keyring v1.2.0 h1:8C1lBP9xhImmIabyXW4c3vFjjLiBdGCmfLUfeZlV1Yo=
 github.com/cosmos/keyring v1.2.0/go.mod h1:fc+wB5KTk9wQ9sDx0kFXB3A0MaeGHM9AwRStKOQ5vOA=
 github.com/cosmos/ledger-cosmos-go v0.12.4 h1:drvWt+GJP7Aiw550yeb3ON/zsrgW0jgh5saFCr7pDnw=