diff --git a/e2e/tests/permission_test.go b/e2e/tests/permission_test.go
index 13671b99e..f64318904 100644
--- a/e2e/tests/permission_test.go
+++ b/e2e/tests/permission_test.go
@@ -1911,7 +1911,60 @@ func (s *StorageTestSuite) TestGrantsPermissionToObjectWithWildcardInName() {
 	s.Require().True(strings.Contains(err.Error(), "No such object"))
 }
 
-func (s *StorageTestSuite) TestExpiredPolicyGCAndRePut() {
+func (s *StorageTestSuite) TestExpiredAccountPolicyGCAndRePut() {
+	var err error
+	ctx := context.Background()
+	user1 := s.GenAndChargeAccounts(1, 1000000)[0]
+
+	_, owner, bucketName, _, _, objectId := s.createObjectWithVisibility(storagetypes.VISIBILITY_TYPE_PUBLIC_READ)
+
+	principal := types.NewPrincipalWithAccount(user1.GetAddr())
+
+	// Put bucket policy
+	bucketStatement := &types.Statement{
+		Actions: []types.ActionType{types.ACTION_DELETE_BUCKET},
+		Effect:  types.EFFECT_ALLOW,
+	}
+	expirationTime := time.Now().Add(5 * time.Second)
+
+	msgPutBucketPolicy := storagetypes.NewMsgPutPolicy(owner.GetAddr(), types2.NewBucketGRN(bucketName).String(),
+		principal, []*types.Statement{bucketStatement}, &expirationTime)
+	s.SendTxBlock(owner, msgPutBucketPolicy)
+
+	// Query the policy which is enforced on bucket
+	grn1 := types2.NewBucketGRN(bucketName)
+	queryPolicyForAccountResp, err := s.Client.QueryPolicyForAccount(ctx, &storagetypes.QueryPolicyForAccountRequest{
+		Resource:         grn1.String(),
+		PrincipalAddress: user1.GetAddr().String(),
+	})
+	s.Require().NoError(err)
+	s.Require().Equal(objectId, queryPolicyForAccountResp.Policy.ResourceId)
+
+	// wait for policy expired
+	time.Sleep(5 * time.Second)
+
+	// query the policy, which is already GC, should get err.
+	_, err = s.Client.QueryPolicyForAccount(ctx, &storagetypes.QueryPolicyForAccountRequest{
+		Resource:         grn1.String(),
+		PrincipalAddress: user1.GetAddr().String(),
+	})
+	s.Require().Error(err)
+
+	// the user should be able to re-put policy for the bucket.
+	msgPutBucketPolicy = storagetypes.NewMsgPutPolicy(owner.GetAddr(), types2.NewBucketGRN(bucketName).String(),
+		principal, []*types.Statement{bucketStatement}, nil)
+	s.SendTxBlock(owner, msgPutBucketPolicy)
+
+	// Query the policy which is enforced on bucket.
+	queryPolicyForAccountResp, err = s.Client.QueryPolicyForAccount(ctx, &storagetypes.QueryPolicyForAccountRequest{
+		Resource:         grn1.String(),
+		PrincipalAddress: user1.GetAddr().String(),
+	})
+	s.Require().NoError(err)
+	s.Require().Equal(objectId, queryPolicyForAccountResp.Policy.ResourceId)
+}
+
+func (s *StorageTestSuite) TestExpiredGroupPolicyGCAndRePut() {
 	var err error
 	ctx := context.Background()
 	user1 := s.GenAndChargeAccounts(1, 1000000)[0]
diff --git a/x/permission/keeper/keeper.go b/x/permission/keeper/keeper.go
index 80a7bb640..d196464a8 100644
--- a/x/permission/keeper/keeper.go
+++ b/x/permission/keeper/keeper.go
@@ -535,17 +535,33 @@ func (k Keeper) RemoveExpiredPolicies(ctx sdk.Context) {
 		policyId := types.ParsePolicyIdFromQueueKey(iterator.Key())
 		var policy types.Policy
 		k.cdc.MustUnmarshal(store.Get(types.GetPolicyByIDKey(policyId)), &policy)
+
 		store.Delete(types.GetPolicyByIDKey(policyId))
 
-		// delete policyKey -> policyId
+		//1. the policy is an account policy, delete policyKey -> policyId.
+		//2. the policy is group policy within a policy group, delete the index in the policy group
 		if ctx.IsUpgraded(upgradetypes.Pampas) {
-			policyKey := types.GetPolicyForAccountKey(policy.ResourceId, policy.ResourceType,
-				policy.Principal.MustGetAccountAddress())
-			store.Delete(policyKey)
+			if policy.Principal.Type == types.PRINCIPAL_TYPE_GNFD_ACCOUNT {
+				policyKey := types.GetPolicyForAccountKey(policy.ResourceId, policy.ResourceType,
+					policy.Principal.MustGetAccountAddress())
+				store.Delete(policyKey)
+			} else if policy.Principal.Type == types.PRINCIPAL_TYPE_GNFD_GROUP {
+				policyGroupKey := types.GetPolicyForGroupKey(policy.ResourceId, policy.ResourceType)
+				bz := store.Get(policyGroupKey)
+				if bz != nil {
+					policyGroup := types.PolicyGroup{}
+					k.cdc.MustUnmarshal(bz, &policyGroup)
+					for i := 0; i < len(policyGroup.Items); i++ {
+						if policyGroup.Items[i].PolicyId.Equal(policyId) {
+							policyGroup.Items = append(policyGroup.Items[:i], policyGroup.Items[i+1:]...)
+							break
+						}
+					}
+					store.Set(policyGroupKey, k.cdc.MustMarshal(&policyGroup))
+				}
+			}
+			ctx.EventManager().EmitTypedEvents(&types.EventDeletePolicy{PolicyId: policyId}) //nolint: errcheck
+			count++
 		}
-
-		ctx.EventManager().EmitTypedEvents(&types.EventDeletePolicy{PolicyId: policyId}) //nolint: errcheck
-
-		count++
 	}
 }