diff --git a/e2e/tests/payment_test.go b/e2e/tests/payment_test.go
index b3fb6fc18..7ceaa3bda 100644
--- a/e2e/tests/payment_test.go
+++ b/e2e/tests/payment_test.go
@@ -3009,6 +3009,8 @@ func (s *PaymentTestSuite) TestDiscontinue_InBlocks_WithPriceChangeReserveTimeCh
 		s.Require().Equal(queryHeadObjectResponse.ObjectInfo.ObjectStatus, storagetypes.OBJECT_STATUS_CREATED)
 		time.Sleep(200 * time.Millisecond)
 	}
+	userStreamRecord := s.getStreamRecord(user.GetAddr().String())
+	s.Require().True(userStreamRecord.LockBalance.IsPositive())
 
 	// update new price
 	msgUpdatePrice := &sptypes.MsgUpdateSpStoragePrice{
@@ -3107,6 +3109,9 @@ func (s *PaymentTestSuite) TestDiscontinue_InBlocks_WithPriceChangeReserveTimeCh
 	s.Require().Equal(streamRecordsAfter.GVG.NetflowRate.Sub(streamRecordsBefore.GVG.NetflowRate).Int64(), int64(0))
 	s.Require().True(streamRecordsAfter.Tax.NetflowRate.Sub(streamRecordsBefore.Tax.NetflowRate).Int64() <= int64(0)) // there are other auto settling
 
+	s.Require().True(streamRecordsAfter.User.LockBalance.IsZero())
+	s.Require().True(streamRecordsAfter.User.StaticBalance.Int64() == userStreamRecord.LockBalance.Int64())
+
 	// revert price
 	msgUpdatePrice = &sptypes.MsgUpdateSpStoragePrice{
 		SpAddress:     sp.OperatorKey.GetAddr().String(),
diff --git a/x/payment/keeper/storage_fee_charge.go b/x/payment/keeper/storage_fee_charge.go
index c5d3239df..6518e82d9 100644
--- a/x/payment/keeper/storage_fee_charge.go
+++ b/x/payment/keeper/storage_fee_charge.go
@@ -139,7 +139,7 @@ func (k Keeper) applyFrozenUserFlows(ctx sdk.Context, userFlows types.UserFlows,
 	}
 	streamRecordChange := types.NewDefaultStreamRecordChangeWithAddr(from).
 		WithRateChange(totalActiveRate.Neg()).WithFrozenRateChange(totalFrozenRate.Neg())
-	err := k.UpdateFrozenStreamRecord(ctx, streamRecord, streamRecordChange)
+	err := k.UpdateStreamRecord(ctx, streamRecord, streamRecordChange)
 	if err != nil {
 		return fmt.Errorf("apply stream record changes for user failed: %w", err)
 	}
diff --git a/x/payment/keeper/stream_record.go b/x/payment/keeper/stream_record.go
index a965f44e9..798016b06 100644
--- a/x/payment/keeper/stream_record.go
+++ b/x/payment/keeper/stream_record.go
@@ -114,6 +114,10 @@ func (k Keeper) GetAllStreamRecord(ctx sdk.Context) (list []types.StreamRecord)
 // it only handles the lock balance change and ignore the other changes(since the streams are already changed and the
 // accumulated OutFlows are changed outside this function)
 func (k Keeper) UpdateFrozenStreamRecord(ctx sdk.Context, streamRecord *types.StreamRecord, change *types.StreamRecordChange) error {
+	forced, _ := ctx.Value(types.ForceUpdateStreamRecordKey).(bool)
+	if !forced {
+		return fmt.Errorf("stream record %s is frozen", streamRecord.Account)
+	}
 	// update lock balance
 	if !change.LockBalanceChange.IsZero() {
 		streamRecord.LockBalance = streamRecord.LockBalance.Add(change.LockBalanceChange)
@@ -132,6 +136,10 @@ func (k Keeper) UpdateFrozenStreamRecord(ctx sdk.Context, streamRecord *types.St
 }
 
 func (k Keeper) UpdateStreamRecord(ctx sdk.Context, streamRecord *types.StreamRecord, change *types.StreamRecordChange) error {
+	if streamRecord.Status == types.STREAM_ACCOUNT_STATUS_FROZEN {
+		return k.UpdateFrozenStreamRecord(ctx, streamRecord, change)
+	}
+
 	forced, _ := ctx.Value(types.ForceUpdateStreamRecordKey).(bool) // force update in end block
 	isPay := change.StaticBalanceChange.IsNegative() || change.RateChange.IsNegative()
 	currentTimestamp := ctx.BlockTime().Unix()
@@ -217,13 +225,11 @@ func (k Keeper) UpdateStreamRecordByAddr(ctx sdk.Context, change *types.StreamRe
 
 func (k Keeper) ForceSettle(ctx sdk.Context, streamRecord *types.StreamRecord) error {
 	totalBalance := streamRecord.StaticBalance.Add(streamRecord.BufferBalance)
-	if totalBalance.IsPositive() {
-		change := types.NewDefaultStreamRecordChangeWithAddr(types.GovernanceAddress).WithStaticBalanceChange(totalBalance)
-		_, err := k.UpdateStreamRecordByAddr(ctx, change)
-		if err != nil {
-			telemetry.IncrCounter(1, types.GovernanceAddressLackBalanceLabel)
-			return fmt.Errorf("update governance stream record failed: %w", err)
-		}
+	change := types.NewDefaultStreamRecordChangeWithAddr(types.GovernanceAddress).WithStaticBalanceChange(totalBalance)
+	_, err := k.UpdateStreamRecordByAddr(ctx, change)
+	if err != nil {
+		telemetry.IncrCounter(1, types.GovernanceAddressLackBalanceLabel)
+		return fmt.Errorf("update governance stream record failed: %w", err)
 	}
 	// force settle
 	streamRecord.StaticBalance = sdkmath.ZeroInt()
diff --git a/x/payment/keeper/stream_record_test.go b/x/payment/keeper/stream_record_test.go
index a726888d4..4c6f57327 100644
--- a/x/payment/keeper/stream_record_test.go
+++ b/x/payment/keeper/stream_record_test.go
@@ -752,3 +752,40 @@ func TestAutoSettle_SettleInMultipleBlocks_AutoResumeExists(t *testing.T) {
 	require.Equal(t, gvg3StreamRecord.NetflowRate, sdk.NewInt(150))
 	require.Equal(t, gvg3StreamRecord.FrozenNetflowRate, sdkmath.ZeroInt())
 }
+
+func TestUpdateStreamRecord_FrozenAccountLockBalance(t *testing.T) {
+	keeper, ctx, _ := makePaymentKeeper(t)
+	ctx = ctx.WithBlockTime(time.Now())
+
+	user := sample.RandAccAddress()
+	streamRecord := &types.StreamRecord{
+		StaticBalance:     sdkmath.ZeroInt(),
+		BufferBalance:     sdkmath.ZeroInt(),
+		LockBalance:       sdkmath.NewInt(1000),
+		Account:           user.String(),
+		Status:            types.STREAM_ACCOUNT_STATUS_FROZEN,
+		NetflowRate:       sdkmath.NewInt(0),
+		FrozenNetflowRate: sdkmath.NewInt(100).Neg(),
+		OutFlowCount:      1,
+	}
+	keeper.SetStreamRecord(ctx, streamRecord)
+
+	// update fail when no force flag
+	change := types.NewDefaultStreamRecordChangeWithAddr(user).
+		WithLockBalanceChange(streamRecord.LockBalance.Neg())
+	_, err := keeper.UpdateStreamRecordByAddr(ctx, change)
+	require.ErrorContains(t, err, "is frozen")
+
+	// update success when there is force flag
+	ctx = ctx.WithValue(types.ForceUpdateStreamRecordKey, true)
+	change = types.NewDefaultStreamRecordChangeWithAddr(user).
+		WithLockBalanceChange(streamRecord.LockBalance.Neg())
+	_, err = keeper.UpdateStreamRecordByAddr(ctx, change)
+	require.NoError(t, err)
+
+	streamRecord, _ = keeper.GetStreamRecord(ctx, user)
+	require.True(t, streamRecord.Status == types.STREAM_ACCOUNT_STATUS_FROZEN)
+	require.True(t, streamRecord.LockBalance.IsZero())
+	require.True(t, streamRecord.StaticBalance.Int64() == 1000)
+
+}