diff --git a/CHANGELOG.md b/CHANGELOG.md
index e00bdc8ee6..f7f6e0ca08 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -50,6 +50,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 
 - [2472](https://github.com/umee-network/umee/pull/2472) un-wire the `crisis` module from umee app.
 - [2500](https://github.com/umee-network/umee/pull/2500) (x/leverage): add Rewards Auction fees and `params.rewards_auction_factor`.
+- [2506](https://github.com/umee-network/umee/pull/2506) (ics20): support leverage/MsgRepay in Memo
 
 ### Improvements
 
diff --git a/x/uibc/uics20/memo_handler.go b/x/uibc/uics20/memo_handler.go
index d8ec86d66d..450ef0e083 100644
--- a/x/uibc/uics20/memo_handler.go
+++ b/x/uibc/uics20/memo_handler.go
@@ -161,6 +161,8 @@ func (mh MemoHandler) validateMemoMsg() error {
 		// collateral = asset
 	case *ltypes.MsgSupply:
 		asset = &msg.Asset
+	case *ltypes.MsgRepay:
+		asset = &msg.Asset
 	case *ltypes.MsgLiquidate:
 		asset = &msg.Repayment
 	default:
@@ -197,6 +199,8 @@ func (mh MemoHandler) handleMemoMsg(ctx *sdk.Context, msg sdk.Msg) (err error) {
 		_, err = mh.leverage.Supply(*ctx, msg)
 	case *ltypes.MsgSupplyCollateral:
 		_, err = mh.leverage.SupplyCollateral(*ctx, msg)
+	case *ltypes.MsgRepay:
+		_, err = mh.leverage.Repay(*ctx, msg)
 	case *ltypes.MsgLiquidate:
 		_, err = mh.leverage.Liquidate(*ctx, msg)
 	default:
diff --git a/x/uibc/uics20/memo_handler_test.go b/x/uibc/uics20/memo_handler_test.go
index d9d594e588..e8ddd6ca31 100644
--- a/x/uibc/uics20/memo_handler_test.go
+++ b/x/uibc/uics20/memo_handler_test.go
@@ -29,6 +29,7 @@ func TestValidateMemoMsg(t *testing.T) {
 	goodMsgSupplyColl := ltypes.NewMsgSupplyCollateral(receiver, asset)
 	// goodMsgSupplyCollH := ltypes.NewMsgSupplyCollateral(receiver, assetH)
 	goodMsgSupplyColl11 := ltypes.NewMsgSupplyCollateral(receiver, asset11)
+	goodMsgRepay := ltypes.NewMsgRepay(receiver, asset11)
 	goodMsgBorrow := ltypes.NewMsgBorrow(receiver, asset)
 	goodMsgBorrowH := ltypes.NewMsgBorrow(receiver, assetH)
 	goodMsgLiquidate := ltypes.NewMsgLiquidate(receiver, accs.Bob, assetH, "uumee")
@@ -53,9 +54,10 @@ func TestValidateMemoMsg(t *testing.T) {
 		// good messages[0]
 		{[]sdk.Msg{goodMsgSupply}, ""},
 		{[]sdk.Msg{goodMsgSupplyColl}, ""},
-		{[]sdk.Msg{goodMsgLiquidate}, ""}, // in handlers v2 this will be a good message
+		{[]sdk.Msg{goodMsgRepay}, ""},
+		{[]sdk.Msg{goodMsgLiquidate}, ""},
 
-		// messages[0] use more assets than the transfer -> OK
+		// messages[0] use more assets than the transfer -> OK: should be adjusted
 		{[]sdk.Msg{goodMsgSupply11}, ""},
 		{[]sdk.Msg{goodMsgSupplyColl11}, ""},
 		{[]sdk.Msg{goodMsgSupplyColl11}, ""},
@@ -167,6 +169,7 @@ func TestMemoExecute(t *testing.T) {
 	mh := MemoHandler{leverage: lvg}
 	ctx, _ := tsdk.NewCtxOneStore(t, storetypes.NewMemoryStoreKey("quota"))
 	msgs := []sdk.Msg{&ltypes.MsgSupply{}}
+	msgsRepay := []sdk.Msg{&ltypes.MsgRepay{}}
 
 	tcs := []struct {
 		enabled bool
@@ -176,6 +179,7 @@ func TestMemoExecute(t *testing.T) {
 	}{
 		{true, true, msgs, nil},
 		{true, false, msgs, nil},
+		{true, false, msgsRepay, nil},
 		{true, false, nil, nil},
 
 		{false, true, nil, errHooksDisabled},