diff --git a/spi/src/main/kotlin/org.opensearch.indexmanagement.spi/indexstatemanagement/Step.kt b/spi/src/main/kotlin/org.opensearch.indexmanagement.spi/indexstatemanagement/Step.kt
index 16c41c8f1..8de821936 100644
--- a/spi/src/main/kotlin/org.opensearch.indexmanagement.spi/indexstatemanagement/Step.kt
+++ b/spi/src/main/kotlin/org.opensearch.indexmanagement.spi/indexstatemanagement/Step.kt
@@ -56,6 +56,7 @@ abstract class Step(val name: String, val isSafeToDisableOn: Boolean = true) {
         CONDITION_NOT_MET("condition_not_met"),
         FAILED("failed"),
         COMPLETED("completed"),
+        TIMED_OUT("timed_out"),
         ;
 
         override fun toString(): String {
diff --git a/src/main/kotlin/org/opensearch/indexmanagement/indexstatemanagement/ManagedIndexRunner.kt b/src/main/kotlin/org/opensearch/indexmanagement/indexstatemanagement/ManagedIndexRunner.kt
index ab7ed58d4..ea7ed3765 100644
--- a/src/main/kotlin/org/opensearch/indexmanagement/indexstatemanagement/ManagedIndexRunner.kt
+++ b/src/main/kotlin/org/opensearch/indexmanagement/indexstatemanagement/ManagedIndexRunner.kt
@@ -91,6 +91,7 @@ import org.opensearch.indexmanagement.spi.indexstatemanagement.model.ManagedInde
 import org.opensearch.indexmanagement.spi.indexstatemanagement.model.PolicyRetryInfoMetaData
 import org.opensearch.indexmanagement.spi.indexstatemanagement.model.StateMetaData
 import org.opensearch.indexmanagement.spi.indexstatemanagement.model.StepContext
+import org.opensearch.indexmanagement.spi.indexstatemanagement.model.StepMetaData
 import org.opensearch.jobscheduler.spi.JobExecutionContext
 import org.opensearch.jobscheduler.spi.LockModel
 import org.opensearch.jobscheduler.spi.ScheduledJobParameter
@@ -330,14 +331,18 @@ object ManagedIndexRunner :
         if (action?.hasTimedOut(currentActionMetaData) == true) {
             val info = mapOf("message" to "Action timed out")
             logger.error("Action=${action.type} has timed out")
-            val updated =
-                updateManagedIndexMetaData(
-                    managedIndexMetaData
-                        .copy(actionMetaData = currentActionMetaData?.copy(failed = true), info = info),
-                )
+
+            val updatedIndexMetaData = managedIndexMetaData.copy(
+                actionMetaData = currentActionMetaData?.copy(failed = true),
+                stepMetaData = step?.let { StepMetaData(it.name, System.currentTimeMillis(), Step.StepStatus.TIMED_OUT) },
+                info = info,
+            )
+
+            val updated = updateManagedIndexMetaData(updatedIndexMetaData)
+
             if (updated.metadataSaved) {
                 disableManagedIndexConfig(managedIndexConfig)
-                publishErrorNotification(policy, managedIndexMetaData)
+                publishErrorNotification(policy, updatedIndexMetaData)
             }
             return
         }
diff --git a/src/test/kotlin/org/opensearch/indexmanagement/indexstatemanagement/action/ActionTimeoutIT.kt b/src/test/kotlin/org/opensearch/indexmanagement/indexstatemanagement/action/ActionTimeoutIT.kt
index 8d26405a8..54bdd764c 100644
--- a/src/test/kotlin/org/opensearch/indexmanagement/indexstatemanagement/action/ActionTimeoutIT.kt
+++ b/src/test/kotlin/org/opensearch/indexmanagement/indexstatemanagement/action/ActionTimeoutIT.kt
@@ -8,8 +8,10 @@ package org.opensearch.indexmanagement.indexstatemanagement.action
 import org.opensearch.indexmanagement.indexstatemanagement.IndexStateManagementRestTestCase
 import org.opensearch.indexmanagement.indexstatemanagement.step.open.AttemptOpenStep
 import org.opensearch.indexmanagement.indexstatemanagement.step.rollover.AttemptRolloverStep
+import org.opensearch.indexmanagement.spi.indexstatemanagement.Step
 import org.opensearch.indexmanagement.spi.indexstatemanagement.model.ActionMetaData
 import org.opensearch.indexmanagement.spi.indexstatemanagement.model.ManagedIndexMetaData
+import org.opensearch.indexmanagement.spi.indexstatemanagement.model.StepMetaData
 import org.opensearch.indexmanagement.waitFor
 import java.time.Instant
 import java.util.Locale
@@ -22,9 +24,9 @@ class ActionTimeoutIT : IndexStateManagementRestTestCase() {
         val policyID = "${testIndexName}_testPolicyName_1"
         val testPolicy =
             """
-            {"policy":{"description":"Default policy","default_state":"rolloverstate","states":[
-            {"name":"rolloverstate","actions":[{"timeout":"1s","rollover":{"min_doc_count":100}}],
-            "transitions":[]}]}}
+        {"policy":{"description":"Default policy","default_state":"rolloverstate","states":[
+        {"name":"rolloverstate","actions":[{"timeout":"1s","rollover":{"min_doc_count":100}}],
+        "transitions":[]}]}}
             """.trimIndent()
 
         createPolicyJson(testPolicy, policyID)
@@ -60,11 +62,24 @@ class ActionTimeoutIT : IndexStateManagementRestTestCase() {
                                 fun(actionMetaDataMap: Any?): Boolean =
                                     assertActionEquals(
                                         ActionMetaData(
-                                            name = RolloverAction.name, startTime = Instant.now().toEpochMilli(), index = 0,
-                                            failed = true, consumedRetries = 0, lastRetryTime = null, actionProperties = null,
+                                            name = RolloverAction.name,
+                                            startTime = Instant.now().toEpochMilli(),
+                                            index = 0,
+                                            failed = true,
+                                            consumedRetries = 0,
+                                            lastRetryTime = null,
+                                            actionProperties = null,
                                         ),
                                         actionMetaDataMap,
                                     ),
+                            StepMetaData.STEP to
+                                fun(stepMetaDataMap: Any?): Boolean =
+                                    assertStepEquals(
+                                        StepMetaData(
+                                            "attempt_rollover", Instant.now().toEpochMilli(), Step.StepStatus.TIMED_OUT,
+                                        ),
+                                        stepMetaDataMap,
+                                    ),
                         ),
                 ),
                 getExplainMap(indexName),