diff --git a/x/slashing/hooks.go b/x/slashing/hooks.go
index 3a5ddd6fdc..3710e4072d 100644
--- a/x/slashing/hooks.go
+++ b/x/slashing/hooks.go
@@ -9,9 +9,7 @@ import (
 func (k Keeper) onValidatorBonded(ctx sdk.Context, address sdk.ConsAddress) {
 	// Update the signing info start height or create a new signing info
 	signingInfo, found := k.getValidatorSigningInfo(ctx, address)
-	if found {
-		signingInfo.StartHeight = ctx.BlockHeight()
-	} else {
+	if !found {
 		signingInfo = ValidatorSigningInfo{
 			StartHeight:         ctx.BlockHeight(),
 			IndexOffset:         0,
diff --git a/x/slashing/keeper.go b/x/slashing/keeper.go
index 68cbd90b04..73734198d2 100644
--- a/x/slashing/keeper.go
+++ b/x/slashing/keeper.go
@@ -144,6 +144,10 @@ func (k Keeper) handleValidatorSignature(ctx sdk.Context, addr crypto.Address, p
 			k.validatorSet.Slash(ctx, consAddr, distributionHeight, power, k.SlashFractionDowntime(ctx))
 			k.validatorSet.Jail(ctx, consAddr)
 			signInfo.JailedUntil = ctx.BlockHeader().Time.Add(k.DowntimeUnbondDuration(ctx))
+			// We need to reset the counter & array so that the validator won't be immediately slashed for downtime upon rebonding.
+			signInfo.MissedBlocksCounter = 0
+			signInfo.IndexOffset = 0
+			k.clearValidatorMissedBlockBitArray(ctx, consAddr)
 		} else {
 			// Validator was (a) not found or (b) already jailed, don't slash
 			logger.Info(fmt.Sprintf("Validator %s would have been slashed for downtime, but was either not found in store or already jailed",
diff --git a/x/slashing/keeper_test.go b/x/slashing/keeper_test.go
index 52defda8d1..4299bb7ccc 100644
--- a/x/slashing/keeper_test.go
+++ b/x/slashing/keeper_test.go
@@ -380,6 +380,7 @@ func TestValidatorDippingInAndOut(t *testing.T) {
 	sk.SetParams(ctx, params)
 	amtInt := int64(100)
 	addr, val, amt := addrs[0], pks[0], sdk.NewInt(amtInt)
+	consAddr := sdk.ConsAddress(addr)
 	sh := stake.NewHandler(sk)
 	got := sh(ctx, newTestMsgCreateValidator(addr, val, amt))
 	require.True(t, got.IsOK())
@@ -425,31 +426,48 @@ func TestValidatorDippingInAndOut(t *testing.T) {
 	require.Equal(t, sdk.Bonded, validator.Status)
 
 	// validator misses 501 blocks
-	for ; height < int64(1203); height++ {
+	for ; height < int64(1201); height++ {
 		ctx = ctx.WithBlockHeight(height)
 		keeper.handleValidatorSignature(ctx, val.Address(), newAmt, false)
 	}
 
-	// should not yet be jailed & kicked
+	// should now be jailed & kicked
+	stake.EndBlocker(ctx, sk)
+	validator, _ = sk.GetValidator(ctx, addr)
+	require.Equal(t, sdk.Unbonding, validator.Status)
+
+	signInfo, found := keeper.getValidatorSigningInfo(ctx, consAddr)
+	require.True(t, found)
+	require.Equal(t, int64(0), signInfo.MissedBlocksCounter)
+	require.Equal(t, int64(0), signInfo.IndexOffset)
+	// array should be cleared
+	for offset := int64(0); offset < keeper.SignedBlocksWindow(ctx); offset++ {
+		missed := keeper.getValidatorMissedBlockBitArray(ctx, consAddr, offset)
+		require.False(t, missed)
+	}
+
+	// some blocks pass
+	height = int64(5000)
+	ctx = ctx.WithBlockHeight(height)
+
+	// validator rejoins and starts signing again
+	sk.Unjail(ctx, consAddr)
+	keeper.handleValidatorSignature(ctx, val.Address(), newAmt, true)
+
+	// validator should not be kicked
 	stake.EndBlocker(ctx, sk)
 	validator, _ = sk.GetValidator(ctx, addr)
 	require.Equal(t, sdk.Bonded, validator.Status)
 
-	// validator signs 500 blocks
-	for ; height < int64(1702); height++ {
+	// validator misses 501 blocks
+	for height = int64(5001); height < int64(5503); height++ {
 		ctx = ctx.WithBlockHeight(height)
-		keeper.handleValidatorSignature(ctx, val.Address(), newAmt, true)
+		keeper.handleValidatorSignature(ctx, val.Address(), newAmt, false)
 	}
 
-	// should have exceeded threshold
-	signingInfo, found := keeper.getValidatorSigningInfo(ctx, sdk.ConsAddress(val.Address()))
-	require.True(t, found)
-	require.Equal(t, int64(700), signingInfo.StartHeight)
-	require.Equal(t, int64(1102), signingInfo.IndexOffset)
-	require.Equal(t, int64(501), signingInfo.MissedBlocksCounter)
-
-	// should be jailed & kicked
+	// validator should now be jailed & kicked
 	stake.EndBlocker(ctx, sk)
 	validator, _ = sk.GetValidator(ctx, addr)
 	require.Equal(t, sdk.Unbonding, validator.Status)
+
 }