diff --git a/contracts/src/arbitration/KlerosCore.sol b/contracts/src/arbitration/KlerosCore.sol
index eb301237a..aaa6e4ade 100644
--- a/contracts/src/arbitration/KlerosCore.sol
+++ b/contracts/src/arbitration/KlerosCore.sol
@@ -1363,6 +1363,7 @@ contract KlerosCore is IArbitratorV2, Initializable, UUPSProxiable {
             }
         }
         sortitionModule.setStake(_account, _courtID, pnkDeposit, pnkWithdrawal, _newStake);
+        sortitionModule.updateTotalStake(pnkDeposit, pnkWithdrawal);
 
         return true;
     }
diff --git a/contracts/src/arbitration/SortitionModule.sol b/contracts/src/arbitration/SortitionModule.sol
index 7a65327f5..d253414ad 100644
--- a/contracts/src/arbitration/SortitionModule.sol
+++ b/contracts/src/arbitration/SortitionModule.sol
@@ -311,7 +311,6 @@ contract SortitionModule is ISortitionModule, Initializable, UUPSProxiable {
         // Current phase is Staking: set stakes.
         if (stakeIncrease) {
             pnkDeposit = stakeChange;
-            totalStaked += stakeChange;
         } else {
             pnkWithdrawal = stakeChange;
             uint256 possibleWithdrawal = juror.stakedPnk > juror.lockedPnk ? juror.stakedPnk - juror.lockedPnk : 0;
@@ -319,11 +318,20 @@ contract SortitionModule is ISortitionModule, Initializable, UUPSProxiable {
                 // Ensure locked tokens remain in the contract. They can only be released during Execution.
                 pnkWithdrawal = possibleWithdrawal;
             }
-            totalStaked -= pnkWithdrawal;
         }
         return (pnkDeposit, pnkWithdrawal, StakingResult.Successful);
     }
 
+    /// @inheritdoc ISortitionModule
+    function updateTotalStake(uint256 _pnkDeposit, uint256 _pnkWithdrawal) external override onlyByCore {
+        // Note that we don't update totalStake in setStake() function because it doesn't always change total (e.g. during rewards/penalties).
+        if (_pnkDeposit > 0) {
+            totalStaked += _pnkDeposit;
+        } else {
+            totalStaked -= _pnkWithdrawal;
+        }
+    }
+
     /// @inheritdoc ISortitionModule
     function setStake(
         address _account,
diff --git a/contracts/src/arbitration/interfaces/ISortitionModule.sol b/contracts/src/arbitration/interfaces/ISortitionModule.sol
index ccc66a2f5..6a84089db 100644
--- a/contracts/src/arbitration/interfaces/ISortitionModule.sol
+++ b/contracts/src/arbitration/interfaces/ISortitionModule.sol
@@ -57,6 +57,11 @@ interface ISortitionModule {
         bool _noDelay
     ) external returns (uint256 pnkDeposit, uint256 pnkWithdrawal, StakingResult stakingResult);
 
+    /// @notice Updates the total amount staked in all courts.
+    /// @param _pnkDeposit The amount of PNK that increases total stake.
+    /// @param _pnkWithdrawal The amount of PNK that decreases total stake.
+    function updateTotalStake(uint256 _pnkDeposit, uint256 _pnkWithdrawal) external;
+
     /// @notice Update the state of the stakes, called by KC at the end of setStake flow.
     ///
     /// @dev `O(n + p * log_k(j))` where
diff --git a/contracts/src/arbitration/university/SortitionModuleUniversity.sol b/contracts/src/arbitration/university/SortitionModuleUniversity.sol
index c24e8811c..5ce7f9e00 100644
--- a/contracts/src/arbitration/university/SortitionModuleUniversity.sol
+++ b/contracts/src/arbitration/university/SortitionModuleUniversity.sol
@@ -130,6 +130,11 @@ contract SortitionModuleUniversity is ISortitionModuleUniversity, UUPSProxiable,
         // NOP
     }
 
+    /// @inheritdoc ISortitionModule
+    function updateTotalStake(uint256 _pnkDeposit, uint256 _pnkWithdrawal) external override onlyByCore {
+        // NOP
+    }
+
     /// @inheritdoc ISortitionModule
     function createDisputeHook(uint256 /*_disputeID*/, uint256 /*_roundID*/) external override onlyByCore {
         disputesWithoutJurors++;
diff --git a/contracts/test/foundry/KlerosCore_Execution.t.sol b/contracts/test/foundry/KlerosCore_Execution.t.sol
index 81dd723a0..dbeebbeb1 100644
--- a/contracts/test/foundry/KlerosCore_Execution.t.sol
+++ b/contracts/test/foundry/KlerosCore_Execution.t.sol
@@ -8,6 +8,7 @@ import {DisputeKitClassicBase} from "../../src/arbitration/dispute-kits/DisputeK
 import {IArbitratorV2, IArbitrableV2} from "../../src/arbitration/KlerosCore.sol";
 import {IERC20} from "../../src/libraries/SafeERC20.sol";
 import "../../src/libraries/Constants.sol";
+import {console} from "forge-std/console.sol";
 
 /// @title KlerosCore_ExecutionTest
 /// @dev Tests for KlerosCore execution, rewards, and ruling finalization
@@ -749,6 +750,52 @@ contract KlerosCore_ExecutionTest is KlerosCore_TestBase {
         assertEq(address(disputeKit).balance, 0, "Wrong balance of the DK");
     }
 
+    function test_inflatedTotalStaked_whenDelayedStakeExecute_whenJurorHasNoFunds() public {
+        // pre conditions
+        // 1. there is a dispute in drawing phase
+        // 2. juror call setStake with an amount greater than his PNK balance
+        // 3. draw jurors, move to voting phase and execute voting
+        // 4. move sortition to staking phase
+        uint256 disputeID = 0;
+        uint256 amountToStake = 20000;
+        _stakePnk_createDispute_moveToDrawingPhase(disputeID, staker1, amountToStake);
+
+        KlerosCore.Round memory round = core.getRoundInfo(disputeID, 0);
+        uint256 pnkAtStakePerJuror = round.pnkAtStakePerJuror;
+        _stakeBalanceForJuror(staker1, type(uint256).max);
+        _drawJurors_advancePeriodToVoting(disputeID);
+        _vote_execute(disputeID, staker1);
+        sortitionModule.passPhase(); // set it to staking phase
+        _assertJurorBalance(
+            disputeID,
+            staker1,
+            amountToStake,
+            pnkAtStakePerJuror * DEFAULT_NB_OF_JURORS,
+            amountToStake,
+            1
+        );
+
+        console.log("totalStaked before: %e", sortitionModule.totalStaked());
+
+        // execution: execute delayed stake
+        sortitionModule.executeDelayedStakes(1);
+
+        // post condition: inflated totalStaked
+        console.log("totalStaked after: %e", sortitionModule.totalStaked());
+        _assertJurorBalance(
+            disputeID,
+            staker1,
+            amountToStake,
+            pnkAtStakePerJuror * DEFAULT_NB_OF_JURORS,
+            amountToStake,
+            1
+        );
+
+        // new juror tries to stake but totalStaked already reached type(uint256).max
+        // it reverts with "arithmetic underflow or overflow (0x11)"
+        _stakeBalanceForJuror(staker2, 20000);
+    }
+
     function testFuzz_executeIterations(uint256 iterations) public {
         uint256 disputeID = 0;
         uint256 roundID = 0;
@@ -847,4 +894,61 @@ contract KlerosCore_ExecutionTest is KlerosCore_TestBase {
         assertEq(totalLocked, (pnkAtStake * nbJurors) - unlockedTokens, "Wrong amount locked");
         assertEq(stakedInCourt, 2000, "Wrong amount staked in court");
     }
+
+    ///////// Internal //////////
+
+    function _assertJurorBalance(
+        uint256 disputeID,
+        address juror,
+        uint256 totalStakedPnk,
+        uint256 totalLocked,
+        uint256 stakedInCourt,
+        uint256 nbCourts
+    ) internal {
+        (uint256 totalStakedPnk, uint256 totalLocked, uint256 stakedInCourt, uint256 nbCourts) = sortitionModule
+            .getJurorBalance(juror, GENERAL_COURT);
+        assertEq(totalStakedPnk, totalStakedPnk, "Wrong totalStakedPnk"); // jurors total staked a.k.a juror.stakedPnk
+        assertEq(totalLocked, totalLocked, "Wrong totalLocked");
+        assertEq(stakedInCourt, stakedInCourt, "Wrong stakedInCourt"); // juror staked in court a.k.a _stakeOf
+        assertEq(nbCourts, nbCourts, "Wrong nbCourts");
+    }
+
+    function _stakeBalanceForJuror(address juror, uint256 amount) internal {
+        console.log("actual juror PNK balance before staking: %e", pinakion.balanceOf(juror));
+        vm.prank(juror);
+        core.setStake(GENERAL_COURT, amount);
+    }
+
+    function _stakePnk_createDispute_moveToDrawingPhase(uint256 disputeID, address juror, uint256 amount) internal {
+        vm.prank(juror);
+        core.setStake(GENERAL_COURT, amount);
+        vm.prank(disputer);
+        arbitrable.createDispute{value: feeForJuror * DEFAULT_NB_OF_JURORS}("Action");
+        vm.warp(block.timestamp + minStakingTime);
+        sortitionModule.passPhase(); // Generating
+        vm.warp(block.timestamp + rngLookahead);
+        sortitionModule.passPhase(); // Drawing phase
+
+        assertEq(sortitionModule.totalStaked(), amount, "!totalStaked");
+    }
+
+    function _drawJurors_advancePeriodToVoting(uint256 disputeID) internal {
+        core.draw(disputeID, DEFAULT_NB_OF_JURORS);
+        vm.warp(block.timestamp + timesPerPeriod[0]);
+        core.passPeriod(disputeID); // Vote
+    }
+
+    function _vote_execute(uint256 disputeID, address juror) internal {
+        uint256[] memory voteIDs = new uint256[](3);
+        voteIDs[0] = 0;
+        voteIDs[1] = 1;
+        voteIDs[2] = 2;
+
+        vm.prank(juror);
+        disputeKit.castVote(disputeID, voteIDs, 2, 0, "XYZ");
+        core.passPeriod(disputeID); // Appeal
+
+        vm.warp(block.timestamp + timesPerPeriod[3]);
+        core.passPeriod(disputeID); // Execution
+    }
 }
diff --git a/contracts/test/foundry/KlerosCore_Staking.t.sol b/contracts/test/foundry/KlerosCore_Staking.t.sol
index b44bbfab2..a0e0dc8a5 100644
--- a/contracts/test/foundry/KlerosCore_Staking.t.sol
+++ b/contracts/test/foundry/KlerosCore_Staking.t.sol
@@ -141,6 +141,32 @@ contract KlerosCore_StakingTest is KlerosCore_TestBase {
         );
     }
 
+    function test_setStake_totalStaked() public {
+        // Increase
+        vm.prank(staker1);
+        core.setStake(GENERAL_COURT, 4000);
+        vm.prank(staker1);
+        core.setStake(GENERAL_COURT, 5001);
+        vm.prank(staker2);
+        core.setStake(GENERAL_COURT, 1000);
+        vm.prank(staker2);
+        core.setStake(GENERAL_COURT, 1500);
+
+        assertEq(sortitionModule.totalStaked(), 6501, "Wrong totalStaked");
+
+        // Decrease
+        vm.prank(staker1);
+        core.setStake(GENERAL_COURT, 3000);
+        vm.prank(staker1);
+        core.setStake(GENERAL_COURT, 2500);
+        vm.prank(staker2);
+        core.setStake(GENERAL_COURT, 1400);
+        vm.prank(staker2);
+        core.setStake(GENERAL_COURT, 1200);
+
+        assertEq(sortitionModule.totalStaked(), 3700, "Wrong totalStaked");
+    }
+
     function test_setStake_maxStakePathCheck() public {
         uint256[] memory supportedDK = new uint256[](1);
         supportedDK[0] = DISPUTE_KIT_CLASSIC;