diff --git a/x/did/keeper/msg_server.go b/x/did/keeper/msg_server.go
index c4a56dbd6..2a775af2f 100755
--- a/x/did/keeper/msg_server.go
+++ b/x/did/keeper/msg_server.go
@@ -42,6 +42,17 @@ func (m msgServer) UpdateDidStatus(goCtx context.Context, msg *types.MsgUpdateDi
 		return &types.MsgUpdateDidStatusResponse{}, types.ErrSameDidStatus
 	}
 
+	if msg.Status == types.DID_STATUS_INACTIVE {
+		for _, svc := range m.GetServices(ctx) {
+			if slices.Contains(svc.Issuers, msg.Did) {
+				svc.Issuers = slices.DeleteFunc(svc.Issuers, func(issuer string) bool {
+					return issuer == msg.Did
+				})
+				m.SetService(ctx, svc.Sid, svc)
+			}
+		}
+	}
+
 	info.Status = msg.Status
 	m.SetDidInfo(ctx, info.Did, info)
 
diff --git a/x/did/keeper/msg_server_test.go b/x/did/keeper/msg_server_test.go
new file mode 100644
index 000000000..621ee00fa
--- /dev/null
+++ b/x/did/keeper/msg_server_test.go
@@ -0,0 +1,88 @@
+package keeper_test
+
+import (
+	"testing"
+
+	cometbftdb "github.com/cometbft/cometbft-db"
+	"github.com/cometbft/cometbft/libs/log"
+	cometbftproto "github.com/cometbft/cometbft/proto/tendermint/types"
+	"github.com/cosmos/cosmos-sdk/codec"
+	codectypes "github.com/cosmos/cosmos-sdk/codec/types"
+	"github.com/cosmos/cosmos-sdk/store"
+	storetypes "github.com/cosmos/cosmos-sdk/store/types"
+	sdk "github.com/cosmos/cosmos-sdk/types"
+	"github.com/stretchr/testify/require"
+
+	didkeeper "github.com/openmetaearth/me-hub/x/did/keeper"
+	didtypes "github.com/openmetaearth/me-hub/x/did/types"
+)
+
+func TestUpdateDidStatusInactiveRevokesServiceIssuerMemberships(t *testing.T) {
+	keeper, ctx := didKeeperWithGlobalDao(t)
+	msgServer := didkeeper.NewMsgServerImpl(keeper)
+
+	issuerDID := "did:issuer"
+	otherIssuerDID := "did:other-issuer"
+	keeper.SetDidInfo(ctx, issuerDID, didtypes.DidInfo{
+		Did:    issuerDID,
+		Status: didtypes.DID_STATUS_ACTIVE,
+	})
+	keeper.SetService(ctx, "kyc", didtypes.NewService(
+		"kyc",
+		"KYC",
+		"",
+		didtypes.SERVICE_STATUS_ACTIVE,
+		[]string{issuerDID, otherIssuerDID, issuerDID},
+	))
+	keeper.SetService(ctx, "identity", didtypes.NewService(
+		"identity",
+		"Identity",
+		"",
+		didtypes.SERVICE_STATUS_ACTIVE,
+		[]string{otherIssuerDID},
+	))
+
+	_, err := msgServer.UpdateDidStatus(sdk.WrapSDKContext(ctx), &didtypes.MsgUpdateDidStatus{
+		Creator: "dao",
+		Did:     issuerDID,
+		Status:  didtypes.DID_STATUS_INACTIVE,
+	})
+	require.NoError(t, err)
+
+	info, found := keeper.GetDidInfo(ctx, issuerDID)
+	require.True(t, found)
+	require.Equal(t, didtypes.DID_STATUS_INACTIVE, info.Status)
+
+	kycService, found := keeper.GetService(ctx, "kyc")
+	require.True(t, found)
+	require.Equal(t, []string{otherIssuerDID}, kycService.Issuers)
+
+	identityService, found := keeper.GetService(ctx, "identity")
+	require.True(t, found)
+	require.Equal(t, []string{otherIssuerDID}, identityService.Issuers)
+}
+
+type globalDaoKeeper struct{}
+
+func (globalDaoKeeper) IsGlobalDao(ctx sdk.Context, address string) bool {
+	return true
+}
+
+func didKeeperWithGlobalDao(t testing.TB) (*didkeeper.Keeper, sdk.Context) {
+	storeKey := sdk.NewKVStoreKey(didtypes.StoreKey)
+	memStoreKey := storetypes.NewMemoryStoreKey(didtypes.MemStoreKey)
+
+	db := cometbftdb.NewMemDB()
+	stateStore := store.NewCommitMultiStore(db)
+	stateStore.MountStoreWithDB(storeKey, storetypes.StoreTypeIAVL, db)
+	stateStore.MountStoreWithDB(memStoreKey, storetypes.StoreTypeMemory, nil)
+	require.NoError(t, stateStore.LoadLatestVersion())
+
+	registry := codectypes.NewInterfaceRegistry()
+	cdc := codec.NewProtoCodec(registry)
+
+	keeper := didkeeper.NewKeeper(cdc, storeKey, globalDaoKeeper{})
+	ctx := sdk.NewContext(stateStore, cometbftproto.Header{}, false, log.NewNopLogger())
+
+	return keeper, ctx
+}