diff --git a/tests/e2e/config.go b/tests/e2e/config.go
index 373281162d..01851530ec 100644
--- a/tests/e2e/config.go
+++ b/tests/e2e/config.go
@@ -174,7 +174,7 @@ func SlashThrottleTestRun() TestRun {
 					".app_state.slashing.params.min_signed_per_window = \"0.500000000000000000\" | " +
 					".app_state.slashing.params.downtime_jail_duration = \"60s\" | " +
 					".app_state.slashing.params.slash_fraction_downtime = \"0.010000000000000000\" | " +
-					".app_state.provider.params.slash_meter_replenish_fraction = \"0.10\" | " +
+					".app_state.provider.params.slash_meter_replenish_fraction = \"0.05\" | " +
 					".app_state.provider.params.slash_meter_replenish_period = \"20s\"",
 			},
 			chainID("consu"): {
diff --git a/tests/e2e/steps_downtime.go b/tests/e2e/steps_downtime.go
index 30e833c793..34b7226ef3 100644
--- a/tests/e2e/steps_downtime.go
+++ b/tests/e2e/steps_downtime.go
@@ -309,21 +309,81 @@ func stepsThrottledDowntime(consumerName string) []Step {
 				chainID("provi"): ChainState{
 					ValPowers: &map[validatorID]uint{
 						validatorID("alice"): 511,
-						validatorID("bob"):   0, // bob is jailed
+						validatorID("bob"):   0, // bob is jailed on provider
 						validatorID("carol"): 500,
 					},
 				},
 				chainID(consumerName): ChainState{
-					// VSC packet applying jailing is not yet relayed to consumer
 					ValPowers: &map[validatorID]uint{
 						validatorID("alice"): 511,
+						// VSC packet applying jailing may or may not be relayed to consumer
+						// depending on hermes vs gorelayer behavior. Therefore skip asserting bob's consumer power
+						validatorID("carol"): 500,
+					},
+				},
+			},
+		},
+		{
+			// After relaying one more time, vsc packet applying jailing should be seen on consumer
+			action: relayPacketsAction{
+				chainA:  chainID("provi"),
+				chainB:  chainID(consumerName),
+				port:    "provider",
+				channel: 0,
+			},
+			state: State{
+				chainID(consumerName): ChainState{
+					ValPowers: &map[validatorID]uint{
+						validatorID("alice"): 511,
+						validatorID("bob"):   0,
+						validatorID("carol"): 500,
+					},
+				},
+			},
+		},
+		// Next we unjail bob so that there's enough active VP to continue these steps
+		{
+			action: unjailValidatorAction{
+				provider:  chainID("provi"),
+				validator: validatorID("bob"),
+			},
+			state: State{
+				chainID("provi"): ChainState{
+					ValPowers: &map[validatorID]uint{
+						validatorID("alice"): 511,
+						// bob's stake should not be slashed
+						// since the slash was initiated from consumer
 						validatorID("bob"):   500,
 						validatorID("carol"): 500,
 					},
 				},
+				chainID(consumerName): ChainState{
+					ValPowers: &map[validatorID]uint{
+						validatorID("alice"): 511,
+						validatorID("bob"):   0,
+						validatorID("carol"): 500,
+					},
+				},
 			},
 		},
-		// Invoke carol downtime slash on consumer
+		{
+			action: relayPacketsAction{
+				chainA:  chainID("provi"),
+				chainB:  chainID(consumerName),
+				port:    "provider",
+				channel: 0,
+			},
+			state: State{
+				chainID(consumerName): ChainState{
+					ValPowers: &map[validatorID]uint{
+						validatorID("alice"): 511,
+						validatorID("bob"):   500, // unjail now seen on consumer
+						validatorID("carol"): 500,
+					},
+				},
+			},
+		},
+		// Next we invoke carol downtime slash on consumer
 		{
 			action: downtimeSlashAction{
 				chain:     chainID(consumerName),
@@ -333,14 +393,14 @@ func stepsThrottledDowntime(consumerName string) []Step {
 				chainID("provi"): ChainState{
 					ValPowers: &map[validatorID]uint{
 						validatorID("alice"): 511,
-						validatorID("bob"):   0,
+						validatorID("bob"):   500,
 						validatorID("carol"): 500,
 					},
 				},
 				chainID(consumerName): ChainState{
 					ValPowers: &map[validatorID]uint{
 						validatorID("alice"): 511,
-						validatorID("bob"):   500, // VSC packet applying bob jailing is not yet relayed to consumer
+						validatorID("bob"):   500,
 						validatorID("carol"): 500,
 					},
 				},
@@ -357,14 +417,14 @@ func stepsThrottledDowntime(consumerName string) []Step {
 				chainID("provi"): ChainState{
 					ValPowers: &map[validatorID]uint{
 						validatorID("alice"): 511,
-						validatorID("bob"):   0,
+						validatorID("bob"):   500,
 						validatorID("carol"): 500, // slash packet for carol recv by provider, carol not slashed due to throttling
 					},
 				},
 				chainID(consumerName): ChainState{
 					ValPowers: &map[validatorID]uint{
 						validatorID("alice"): 511,
-						validatorID("bob"):   0, // VSC packet applying bob jailing is also relayed and recv by consumer
+						validatorID("bob"):   500,
 						validatorID("carol"): 500,
 					},
 				},
@@ -376,16 +436,24 @@ func stepsThrottledDowntime(consumerName string) []Step {
 			action: slashMeterReplenishmentAction{
 				targetValue: 0, // We just want slash meter to be non-negative
 
-				// Slash meter replenish fraction is set to 10%, replenish period is 20 seconds, see config.go
-				// Meter is initially at 10%, decremented to -23% from bob being jailed. It'll then take three replenishments
-				// for meter to become positive again. 3*20 = 60 seconds + buffer = 100 seconds
+				// Slash meter replenish fraction is set to 5%, replenish period is 20 seconds, see config.go
+				// Meter is initially at 10%, decremented to -23% from bob being jailed. It'll then take five replenishments
+				// for meter to become positive again.
+				//
+				// 5 * 20 = 100 seconds.
+				//
+				// We've already waited 60 seconds for unjailValidatorAction
+				//
+				// So timeout should be 100 - 60
+				// + large buffer to consider that cometmock did not pass blocks during unjail step
+				// = 100 seconds
 				timeout: 100 * time.Second,
 			},
 			state: State{
 				chainID("provi"): ChainState{
 					ValPowers: &map[validatorID]uint{
 						validatorID("alice"): 511,
-						validatorID("bob"):   0,
+						validatorID("bob"):   500,
 						validatorID("carol"): 500, // Carol still not slashed, packet must be retried
 					},
 				},
@@ -393,7 +461,7 @@ func stepsThrottledDowntime(consumerName string) []Step {
 					// no updates received on consumer
 					ValPowers: &map[validatorID]uint{
 						validatorID("alice"): 511,
-						validatorID("bob"):   0,
+						validatorID("bob"):   500,
 						validatorID("carol"): 500,
 					},
 				},