diff --git a/libpldm/firmware_update.c b/libpldm/firmware_update.c
index 53c1387..fd66549 100644
--- a/libpldm/firmware_update.c
+++ b/libpldm/firmware_update.c
@@ -280,6 +280,24 @@
 	}
 }
 
+/** @brief Check if non functioning component indication in CancelUpdate
+ *         response is valid
+ *
+ *  @return true if non functioning component indication is valid, false if not
+ */
+static bool is_non_functioning_component_indication_valid(
+    bool8_t non_functioning_component_indication)
+{
+	switch (non_functioning_component_indication) {
+	case PLDM_FWUP_COMPONENTS_FUNCTIONING:
+	case PLDM_FWUP_COMPONENTS_NOT_FUNCTIONING:
+		return true;
+
+	default:
+		return false;
+	}
+}
+
 int decode_pldm_package_header_info(
     const uint8_t *data, size_t length,
     struct pldm_package_header_information *package_header_info,
@@ -1507,3 +1525,41 @@
 
 	return PLDM_SUCCESS;
 }
+
+int decode_cancel_update_resp(const struct pldm_msg *msg, size_t payload_length,
+			      uint8_t *completion_code,
+			      bool8_t *non_functioning_component_indication,
+			      bitfield64_t *non_functioning_component_bitmap)
+{
+	if (msg == NULL || completion_code == NULL ||
+	    non_functioning_component_indication == NULL ||
+	    non_functioning_component_bitmap == NULL || !payload_length) {
+		return PLDM_ERROR_INVALID_DATA;
+	}
+
+	*completion_code = msg->payload[0];
+	if (*completion_code != PLDM_SUCCESS) {
+		return PLDM_SUCCESS;
+	}
+
+	if (payload_length != sizeof(struct pldm_cancel_update_resp)) {
+		return PLDM_ERROR_INVALID_LENGTH;
+	}
+	struct pldm_cancel_update_resp *response =
+	    (struct pldm_cancel_update_resp *)msg->payload;
+
+	if (!is_non_functioning_component_indication_valid(
+		response->non_functioning_component_indication)) {
+		return PLDM_ERROR_INVALID_DATA;
+	}
+
+	*non_functioning_component_indication =
+	    response->non_functioning_component_indication;
+
+	if (*non_functioning_component_indication) {
+		non_functioning_component_bitmap->value =
+		    le64toh(response->non_functioning_component_bitmap);
+	}
+
+	return PLDM_SUCCESS;
+}
diff --git a/libpldm/firmware_update.h b/libpldm/firmware_update.h
index 697a479..ed403bb 100644
--- a/libpldm/firmware_update.h
+++ b/libpldm/firmware_update.h
@@ -311,6 +311,13 @@
 	PLDM_FD_STATUS_VENDOR_DEFINED_MAX = 255
 };
 
+/** @brief Components functional indicator in CancelUpdate response
+ */
+enum pldm_firmware_update_non_functioning_component_indication {
+	PLDM_FWUP_COMPONENTS_FUNCTIONING = 0,
+	PLDM_FWUP_COMPONENTS_NOT_FUNCTIONING = 1
+};
+
 /** @struct pldm_package_header_information
  *
  *  Structure representing fixed part of package header information
@@ -543,6 +550,16 @@
 	bitfield32_t update_option_flags_enabled;
 } __attribute__((packed));
 
+/** @struct pldm_cancel_update_resp
+ *
+ *  Structure representing CancelUpdate response.
+ */
+struct pldm_cancel_update_resp {
+	uint8_t completion_code;
+	bool8_t non_functioning_component_indication;
+	uint64_t non_functioning_component_bitmap;
+} __attribute__((packed));
+
 /** @brief Decode the PLDM package header information
  *
  *  @param[in] data - pointer to package header information
@@ -1089,6 +1106,25 @@
 int encode_cancel_update_req(uint8_t instance_id, struct pldm_msg *msg,
 			     size_t payload_length);
 
+/** @brief Decode CancelUpdate response message
+ *
+ *	@param[in] msg - Response message
+ *  @param[in] payload_length - Length of response message payload
+ *	@param[out] completion_code - Pointer to completion code
+ *	@param[out] non_functioning_component_indication - Pointer to non
+						       functioning
+ *                                                     component indication
+ *	@param[out] non_functioning_component_bitmap - Pointer to non
+ functioning
+ *                                                 component bitmap
+ *
+ *	@return pldm_completion_codes
+ */
+int decode_cancel_update_resp(const struct pldm_msg *msg, size_t payload_length,
+			      uint8_t *completion_code,
+			      bool8_t *non_functioning_component_indication,
+			      bitfield64_t *non_functioning_component_bitmap);
+
 #ifdef __cplusplus
 }
 #endif
diff --git a/libpldm/pldm_types.h b/libpldm/pldm_types.h
index 5e7e068..3c5f086 100644
--- a/libpldm/pldm_types.h
+++ b/libpldm/pldm_types.h
@@ -90,6 +90,76 @@
 	} __attribute__((packed)) bits;
 } bitfield32_t;
 
+typedef union {
+	uint64_t value;
+	struct {
+		uint8_t bit0 : 1;
+		uint8_t bit1 : 1;
+		uint8_t bit2 : 1;
+		uint8_t bit3 : 1;
+		uint8_t bit4 : 1;
+		uint8_t bit5 : 1;
+		uint8_t bit6 : 1;
+		uint8_t bit7 : 1;
+		uint8_t bit8 : 1;
+		uint8_t bit9 : 1;
+		uint8_t bit10 : 1;
+		uint8_t bit11 : 1;
+		uint8_t bit12 : 1;
+		uint8_t bit13 : 1;
+		uint8_t bit14 : 1;
+		uint8_t bit15 : 1;
+		uint8_t bit16 : 1;
+		uint8_t bit17 : 1;
+		uint8_t bit18 : 1;
+		uint8_t bit19 : 1;
+		uint8_t bit20 : 1;
+		uint8_t bit21 : 1;
+		uint8_t bit22 : 1;
+		uint8_t bit23 : 1;
+		uint8_t bit24 : 1;
+		uint8_t bit25 : 1;
+		uint8_t bit26 : 1;
+		uint8_t bit27 : 1;
+		uint8_t bit28 : 1;
+		uint8_t bit29 : 1;
+		uint8_t bit30 : 1;
+		uint8_t bit31 : 1;
+		uint8_t bit32 : 1;
+		uint8_t bit33 : 1;
+		uint8_t bit34 : 1;
+		uint8_t bit35 : 1;
+		uint8_t bit36 : 1;
+		uint8_t bit37 : 1;
+		uint8_t bit38 : 1;
+		uint8_t bit39 : 1;
+		uint8_t bit40 : 1;
+		uint8_t bit41 : 1;
+		uint8_t bit42 : 1;
+		uint8_t bit43 : 1;
+		uint8_t bit44 : 1;
+		uint8_t bit45 : 1;
+		uint8_t bit46 : 1;
+		uint8_t bit47 : 1;
+		uint8_t bit48 : 1;
+		uint8_t bit49 : 1;
+		uint8_t bit50 : 1;
+		uint8_t bit51 : 1;
+		uint8_t bit52 : 1;
+		uint8_t bit53 : 1;
+		uint8_t bit54 : 1;
+		uint8_t bit55 : 1;
+		uint8_t bit56 : 1;
+		uint8_t bit57 : 1;
+		uint8_t bit58 : 1;
+		uint8_t bit59 : 1;
+		uint8_t bit60 : 1;
+		uint8_t bit61 : 1;
+		uint8_t bit62 : 1;
+		uint8_t bit63 : 1;
+	} __attribute__((packed)) bits;
+} bitfield64_t;
+
 typedef float real32_t;
 
 #endif /* PLDM_TYPES_H */
diff --git a/libpldm/tests/libpldm_firmware_update_test.cpp b/libpldm/tests/libpldm_firmware_update_test.cpp
index 9ef53f7..746dfd6 100644
--- a/libpldm/tests/libpldm_firmware_update_test.cpp
+++ b/libpldm/tests/libpldm_firmware_update_test.cpp
@@ -2817,3 +2817,106 @@
                                   PLDM_CANCEL_UPDATE_REQ_BYTES + 1);
     EXPECT_EQ(rc, PLDM_ERROR_INVALID_LENGTH);
 }
+
+TEST(CancelUpdate, goodPathDecodeResponse)
+{
+    constexpr std::bitset<64> nonFunctioningComponentBitmap1{0};
+    constexpr std::array<uint8_t, hdrSize + sizeof(pldm_cancel_update_resp)>
+        cancelUpdateResponse1{0x00, 0x00, 0x00, 0x00, 0x00, 0x00, 0x00,
+                              0x00, 0x00, 0x00, 0x00, 0x00, 0x00};
+    auto responseMsg1 =
+        reinterpret_cast<const pldm_msg*>(cancelUpdateResponse1.data());
+    uint8_t completionCode = 0;
+    bool8_t nonFunctioningComponentIndication = 0;
+    bitfield64_t nonFunctioningComponentBitmap{0};
+    auto rc = decode_cancel_update_resp(
+        responseMsg1, cancelUpdateResponse1.size() - hdrSize, &completionCode,
+        &nonFunctioningComponentIndication, &nonFunctioningComponentBitmap);
+    EXPECT_EQ(rc, PLDM_SUCCESS);
+    EXPECT_EQ(completionCode, PLDM_SUCCESS);
+    EXPECT_EQ(nonFunctioningComponentIndication,
+              PLDM_FWUP_COMPONENTS_FUNCTIONING);
+    EXPECT_EQ(nonFunctioningComponentBitmap.value,
+              nonFunctioningComponentBitmap1);
+
+    constexpr std::bitset<64> nonFunctioningComponentBitmap2{0x0101};
+    constexpr std::array<uint8_t, hdrSize + sizeof(pldm_cancel_update_resp)>
+        cancelUpdateResponse2{0x00, 0x00, 0x00, 0x00, 0x01, 0x01, 0x01,
+                              0x00, 0x00, 0x00, 0x00, 0x00, 0x00};
+    auto responseMsg2 =
+        reinterpret_cast<const pldm_msg*>(cancelUpdateResponse2.data());
+    rc = decode_cancel_update_resp(
+        responseMsg2, cancelUpdateResponse2.size() - hdrSize, &completionCode,
+        &nonFunctioningComponentIndication, &nonFunctioningComponentBitmap);
+    EXPECT_EQ(rc, PLDM_SUCCESS);
+    EXPECT_EQ(completionCode, PLDM_SUCCESS);
+    EXPECT_EQ(nonFunctioningComponentIndication,
+              PLDM_FWUP_COMPONENTS_NOT_FUNCTIONING);
+    EXPECT_EQ(nonFunctioningComponentBitmap.value,
+              nonFunctioningComponentBitmap2);
+
+    constexpr std::array<uint8_t, hdrSize + sizeof(completionCode)>
+        cancelUpdateResponse3{0x00, 0x00, 0x00, 0x86};
+    auto responseMsg3 =
+        reinterpret_cast<const pldm_msg*>(cancelUpdateResponse3.data());
+    rc = decode_cancel_update_resp(
+        responseMsg3, cancelUpdateResponse3.size() - hdrSize, &completionCode,
+        &nonFunctioningComponentIndication, &nonFunctioningComponentBitmap);
+    EXPECT_EQ(rc, PLDM_SUCCESS);
+    EXPECT_EQ(completionCode, PLDM_FWUP_BUSY_IN_BACKGROUND);
+}
+
+TEST(CancelUpdate, errorPathDecodeResponse)
+{
+    constexpr std::array<uint8_t, hdrSize> cancelUpdateResponse1{0x00, 0x00,
+                                                                 0x00};
+    auto responseMsg1 =
+        reinterpret_cast<const pldm_msg*>(cancelUpdateResponse1.data());
+    uint8_t completionCode = 0;
+    bool8_t nonFunctioningComponentIndication = 0;
+    bitfield64_t nonFunctioningComponentBitmap{0};
+
+    auto rc = decode_cancel_update_resp(
+        nullptr, cancelUpdateResponse1.size() - hdrSize, &completionCode,
+        &nonFunctioningComponentIndication, &nonFunctioningComponentBitmap);
+    EXPECT_EQ(rc, PLDM_ERROR_INVALID_DATA);
+
+    rc = decode_cancel_update_resp(
+        responseMsg1, cancelUpdateResponse1.size() - hdrSize, nullptr,
+        &nonFunctioningComponentIndication, &nonFunctioningComponentBitmap);
+    EXPECT_EQ(rc, PLDM_ERROR_INVALID_DATA);
+
+    rc = decode_cancel_update_resp(
+        responseMsg1, cancelUpdateResponse1.size() - hdrSize, &completionCode,
+        nullptr, &nonFunctioningComponentBitmap);
+    EXPECT_EQ(rc, PLDM_ERROR_INVALID_DATA);
+
+    rc = decode_cancel_update_resp(
+        responseMsg1, cancelUpdateResponse1.size() - hdrSize, &completionCode,
+        &nonFunctioningComponentIndication, nullptr);
+    EXPECT_EQ(rc, PLDM_ERROR_INVALID_DATA);
+
+    rc = decode_cancel_update_resp(
+        responseMsg1, cancelUpdateResponse1.size() - hdrSize, &completionCode,
+        &nonFunctioningComponentIndication, &nonFunctioningComponentBitmap);
+    EXPECT_EQ(rc, PLDM_ERROR_INVALID_DATA);
+
+    constexpr std::array<uint8_t, hdrSize + sizeof(completionCode)>
+        cancelUpdateResponse2{0x00, 0x00, 0x00, 0x00};
+    auto responseMsg2 =
+        reinterpret_cast<const pldm_msg*>(cancelUpdateResponse2.data());
+    rc = decode_cancel_update_resp(
+        responseMsg2, cancelUpdateResponse2.size() - hdrSize, &completionCode,
+        &nonFunctioningComponentIndication, &nonFunctioningComponentBitmap);
+    EXPECT_EQ(rc, PLDM_ERROR_INVALID_LENGTH);
+
+    constexpr std::array<uint8_t, hdrSize + sizeof(pldm_cancel_update_resp)>
+        cancelUpdateResponse3{0x00, 0x00, 0x00, 0x00, 0x02, 0x00, 0x00,
+                              0x00, 0x00, 0x00, 0x00, 0x00, 0x00};
+    auto responseMsg3 =
+        reinterpret_cast<const pldm_msg*>(cancelUpdateResponse3.data());
+    rc = decode_cancel_update_resp(
+        responseMsg3, cancelUpdateResponse3.size() - hdrSize, &completionCode,
+        &nonFunctioningComponentIndication, &nonFunctioningComponentBitmap);
+    EXPECT_EQ(rc, PLDM_ERROR_INVALID_DATA);
+}