diff --git a/app/javascript/dashboard/components/widgets/conversation/bubble/Actions.vue b/app/javascript/dashboard/components/widgets/conversation/bubble/Actions.vue
index 2e58bce10..e0a63d81a 100644
--- a/app/javascript/dashboard/components/widgets/conversation/bubble/Actions.vue
+++ b/app/javascript/dashboard/components/widgets/conversation/bubble/Actions.vue
@@ -204,7 +204,8 @@ export default {
       if (
         this.isAWhatsAppChannel ||
         this.isATwilioChannel ||
-        this.isAFacebookInbox
+        this.isAFacebookInbox ||
+        this.isASmsInbox
       ) {
         return this.sourceId && this.isSent;
       }
@@ -215,7 +216,11 @@ export default {
         return false;
       }
 
-      if (this.isAWhatsAppChannel || this.isATwilioChannel) {
+      if (
+        this.isAWhatsAppChannel ||
+        this.isATwilioChannel ||
+        this.isASmsInbox
+      ) {
         return this.sourceId && this.isDelivered;
       }
       // We will consider messages as delivered for web widget inbox and API inbox if they are sent
diff --git a/app/jobs/webhooks/sms_events_job.rb b/app/jobs/webhooks/sms_events_job.rb
index c982e0da1..21318f766 100644
--- a/app/jobs/webhooks/sms_events_job.rb
+++ b/app/jobs/webhooks/sms_events_job.rb
@@ -1,13 +1,28 @@
 class Webhooks::SmsEventsJob < ApplicationJob
   queue_as :default
 
+  SUPPORTED_EVENTS = %w[message-received message-delivered message-failed].freeze
+
   def perform(params = {})
-    return unless params[:type] == 'message-received'
+    return unless SUPPORTED_EVENTS.include?(params[:type])
 
     channel = Channel::Sms.find_by(phone_number: params[:to])
     return unless channel
 
-    # TODO: pass to appropriate provider service from here
-    Sms::IncomingMessageService.new(inbox: channel.inbox, params: params[:message].with_indifferent_access).perform
+    process_event_params(channel, params)
+  end
+
+  private
+
+  def process_event_params(channel, params)
+    if delivery_event?(params)
+      Sms::DeliveryStatusService.new(channel: channel, params: params[:message].with_indifferent_access).perform
+    else
+      Sms::IncomingMessageService.new(inbox: channel.inbox, params: params[:message].with_indifferent_access).perform
+    end
+  end
+
+  def delivery_event?(params)
+    params[:type] == 'message-delivered' || params[:type] == 'message-failed'
   end
 end
diff --git a/app/services/sms/delivery_status_service.rb b/app/services/sms/delivery_status_service.rb
new file mode 100644
index 000000000..dd071e242
--- /dev/null
+++ b/app/services/sms/delivery_status_service.rb
@@ -0,0 +1,52 @@
+class Sms::DeliveryStatusService
+  pattr_initialize [:inbox!, :params!]
+
+  def perform
+    return unless supported_status?
+
+    process_status if message.present?
+  end
+
+  private
+
+  def process_status
+    @message.status = status
+    @message.external_error = external_error if error_occurred?
+    @message.save!
+  end
+
+  def supported_status?
+    %w[message-delivered message-failed].include?(params[:type])
+  end
+
+  # Relevant documentation:
+  # https://dev.bandwidth.com/docs/mfa/webhooks/international/message-delivered
+  # https://dev.bandwidth.com/docs/mfa/webhooks/international/message-failed
+  def status
+    type_mapping = {
+      'message-delivered' => 'delivered',
+      'message-failed' => 'failed'
+    }
+
+    type_mapping[params[:type]]
+  end
+
+  def external_error
+    return nil unless error_occurred?
+
+    error_message = params[:description]
+    error_code = params[:errorCode]
+
+    "#{error_code} - #{error_message}"
+  end
+
+  def error_occurred?
+    params[:errorCode] && params[:type] == 'message-failed'
+  end
+
+  def message
+    return unless params[:message][:id]
+
+    @message ||= inbox.messages.find_by(source_id: params[:message][:id])
+  end
+end
diff --git a/spec/jobs/webhooks/sms_events_job_spec.rb b/spec/jobs/webhooks/sms_events_job_spec.rb
index 3874ba24d..305601176 100644
--- a/spec/jobs/webhooks/sms_events_job_spec.rb
+++ b/spec/jobs/webhooks/sms_events_job_spec.rb
@@ -43,7 +43,7 @@ RSpec.describe Webhooks::SmsEventsJob do
   end
 
   context 'when valid params' do
-    it 'calls Sms::IncomingMessageService' do
+    it 'calls Sms::IncomingMessageService if the message type is message-received' do
       process_service = double
       allow(Sms::IncomingMessageService).to receive(:new).and_return(process_service)
       allow(process_service).to receive(:perform)
@@ -52,5 +52,34 @@ RSpec.describe Webhooks::SmsEventsJob do
       expect(process_service).to receive(:perform)
       described_class.perform_now(params)
     end
+
+    it 'calls Sms::DeliveryStatusService if the message type is message-delivered' do
+      params[:type] = 'message-delivered'
+      process_service = double
+      allow(Sms::DeliveryStatusService).to receive(:new).and_return(process_service)
+      allow(process_service).to receive(:perform)
+      expect(Sms::DeliveryStatusService).to receive(:new).with(channel: sms_channel,
+                                                               params: params[:message].with_indifferent_access)
+      expect(process_service).to receive(:perform)
+      described_class.perform_now(params)
+    end
+
+    it 'calls Sms::DeliveryStatusService if the message type is message-failed' do
+      params[:type] = 'message-failed'
+      process_service = double
+      allow(Sms::DeliveryStatusService).to receive(:new).and_return(process_service)
+      allow(process_service).to receive(:perform)
+      expect(Sms::DeliveryStatusService).to receive(:new).with(channel: sms_channel,
+                                                               params: params[:message].with_indifferent_access)
+      expect(process_service).to receive(:perform)
+      described_class.perform_now(params)
+    end
+
+    it 'does not call any service if the message type is not supported' do
+      params[:type] = 'message-sent'
+      expect(Sms::IncomingMessageService).not_to receive(:new)
+      expect(Sms::DeliveryStatusService).not_to receive(:new)
+      described_class.perform_now(params)
+    end
   end
 end
diff --git a/spec/services/sms/delivery_status_service_spec.rb b/spec/services/sms/delivery_status_service_spec.rb
new file mode 100644
index 000000000..c60f0146a
--- /dev/null
+++ b/spec/services/sms/delivery_status_service_spec.rb
@@ -0,0 +1,83 @@
+require 'rails_helper'
+
+describe Sms::DeliveryStatusService do
+  describe '#perform' do
+    let!(:account) { create(:account) }
+    let!(:sms_channel) { create(:channel_sms) }
+    let!(:contact) { create(:contact, account: account, phone_number: '+12345') }
+    let(:contact_inbox) { create(:contact_inbox, source_id: '+12345', contact: contact, inbox: sms_channel.inbox) }
+    let!(:conversation) { create(:conversation, contact: contact, inbox: sms_channel.inbox, contact_inbox: contact_inbox) }
+
+    describe '#perform' do
+      context 'when message delivery status is fired' do
+        before do
+          create(:message, account: account, inbox: sms_channel.inbox, conversation: conversation, status: :sent,
+                           source_id: 'SMd560ac79e4a4d36b3ce59f1f50471986')
+        end
+
+        it 'updates the message if the message status is delivered' do
+          params = {
+            time: '2022-02-02T23:14:05.309Z',
+            type: 'message-delivered',
+            to: sms_channel.phone_number,
+            description: 'ok',
+            message: {
+              'id': conversation.messages.last.source_id
+            }
+          }
+
+          described_class.new(params: params, inbox: sms_channel.inbox).perform
+          expect(conversation.reload.messages.last.status).to eq('delivered')
+        end
+
+        it 'updates the message if the message status is failed' do
+          params = {
+            time: '2022-02-02T23:14:05.309Z',
+            type: 'message-failed',
+            to: sms_channel.phone_number,
+            description: 'Undeliverable',
+            errorCode: 995,
+            message: {
+              'id': conversation.messages.last.source_id
+            }
+          }
+
+          described_class.new(params: params, inbox: sms_channel.inbox).perform
+          expect(conversation.reload.messages.last.status).to eq('failed')
+
+          expect(conversation.reload.messages.last.external_error).to eq('995 - Undeliverable')
+        end
+
+        it 'does not update the message if the status is not a support status' do
+          params = {
+            time: '2022-02-02T23:14:05.309Z',
+            type: 'queued',
+            to: sms_channel.phone_number,
+            description: 'ok',
+            message: {
+              'id': conversation.messages.last.source_id
+            }
+          }
+
+          described_class.new(params: params, inbox: sms_channel.inbox).perform
+          expect(conversation.reload.messages.last.status).to eq('sent')
+        end
+
+        it 'does not update the message if the message is not present' do
+          params = {
+            time: '2022-02-02T23:14:05.309Z',
+            type: 'message-delivered',
+            to: sms_channel.phone_number,
+            description: 'ok',
+            message: {
+              'id': '123'
+            }
+          }
+
+          described_class.new(params: params, inbox: sms_channel.inbox).perform
+          expect(conversation.reload.messages.last.status).to eq('sent')
+        end
+      end
+    end
+  end
+end