diff --git a/fineract-avro-schemas/src/main/avro/loan/v1/LoanOwnershipTransferDataV1.avsc b/fineract-avro-schemas/src/main/avro/loan/v1/LoanOwnershipTransferDataV1.avsc
index 985170e4b..28914905e 100644
--- a/fineract-avro-schemas/src/main/avro/loan/v1/LoanOwnershipTransferDataV1.avsc
+++ b/fineract-avro-schemas/src/main/avro/loan/v1/LoanOwnershipTransferDataV1.avsc
@@ -55,6 +55,14 @@
                 "string"
             ]
         },
+        {
+            "default": null,
+            "name": "previousOwnerExternalId",
+            "type": [
+                "null",
+                "string"
+            ]
+        },
         {
             "default": null,
             "name": "currency",
diff --git a/fineract-investor/src/main/java/org/apache/fineract/investor/cob/loan/LoanAccountOwnerTransferBusinessStep.java b/fineract-investor/src/main/java/org/apache/fineract/investor/cob/loan/LoanAccountOwnerTransferBusinessStep.java
index 523a0f6c7..7c0285e5e 100644
--- a/fineract-investor/src/main/java/org/apache/fineract/investor/cob/loan/LoanAccountOwnerTransferBusinessStep.java
+++ b/fineract-investor/src/main/java/org/apache/fineract/investor/cob/loan/LoanAccountOwnerTransferBusinessStep.java
@@ -279,6 +279,7 @@ public class LoanAccountOwnerTransferBusinessStep implements LoanCOBBusinessStep
         newExternalAssetOwnerTransfer.setPurchasePriceRatio(externalAssetOwnerTransfer.getPurchasePriceRatio());
         newExternalAssetOwnerTransfer.setEffectiveDateFrom(effectiveDateFrom);
         newExternalAssetOwnerTransfer.setEffectiveDateTo(effectiveDateTo);
+        newExternalAssetOwnerTransfer.setPreviousOwner(externalAssetOwnerTransfer.getPreviousOwner());
 
         expireTransfer(settlementDate, externalAssetOwnerTransfer);
 
diff --git a/fineract-investor/src/main/java/org/apache/fineract/investor/data/ExternalTransferData.java b/fineract-investor/src/main/java/org/apache/fineract/investor/data/ExternalTransferData.java
index f899650f6..9e514dee7 100644
--- a/fineract-investor/src/main/java/org/apache/fineract/investor/data/ExternalTransferData.java
+++ b/fineract-investor/src/main/java/org/apache/fineract/investor/data/ExternalTransferData.java
@@ -26,6 +26,7 @@ public class ExternalTransferData {
 
     private Long transferId;
     private ExternalTransferOwnerData owner;
+    private ExternalTransferOwnerData previousOwner;
     private ExternalTransferLoanData loan;
     private ExternalTransferDataDetails details;
     private String transferExternalId;
diff --git a/fineract-investor/src/main/java/org/apache/fineract/investor/domain/ExternalAssetOwnerTransfer.java b/fineract-investor/src/main/java/org/apache/fineract/investor/domain/ExternalAssetOwnerTransfer.java
index 7d2b488dd..72948bfa1 100644
--- a/fineract-investor/src/main/java/org/apache/fineract/investor/domain/ExternalAssetOwnerTransfer.java
+++ b/fineract-investor/src/main/java/org/apache/fineract/investor/domain/ExternalAssetOwnerTransfer.java
@@ -81,4 +81,8 @@ public class ExternalAssetOwnerTransfer extends AbstractAuditableWithUTCDateTime
 
     @Column(name = "external_group_id", length = 100)
     private ExternalId externalGroupId;
+
+    @ManyToOne
+    @JoinColumn(name = "previous_owner_id")
+    private ExternalAssetOwner previousOwner;
 }
diff --git a/fineract-investor/src/main/java/org/apache/fineract/investor/service/ExternalAssetOwnersTransferMapper.java b/fineract-investor/src/main/java/org/apache/fineract/investor/service/ExternalAssetOwnersTransferMapper.java
index fe1931f2e..b60e85e06 100644
--- a/fineract-investor/src/main/java/org/apache/fineract/investor/service/ExternalAssetOwnersTransferMapper.java
+++ b/fineract-investor/src/main/java/org/apache/fineract/investor/service/ExternalAssetOwnersTransferMapper.java
@@ -43,6 +43,7 @@ public interface ExternalAssetOwnersTransferMapper {
     @Mapping(target = "purchasePriceRatio", source = "purchasePriceRatio")
     @Mapping(target = "settlementDate", source = "settlementDate")
     @Mapping(target = "status", source = "status")
+    @Mapping(target = "previousOwner", source = "previousOwner")
     @Mapping(target = "details", source = "externalAssetOwnerTransferDetails")
     ExternalTransferData mapTransfer(ExternalAssetOwnerTransfer source);
 
diff --git a/fineract-investor/src/main/java/org/apache/fineract/investor/service/ExternalAssetOwnersWriteServiceImpl.java b/fineract-investor/src/main/java/org/apache/fineract/investor/service/ExternalAssetOwnersWriteServiceImpl.java
index 19d4be902..56755787a 100644
--- a/fineract-investor/src/main/java/org/apache/fineract/investor/service/ExternalAssetOwnersWriteServiceImpl.java
+++ b/fineract-investor/src/main/java/org/apache/fineract/investor/service/ExternalAssetOwnersWriteServiceImpl.java
@@ -51,6 +51,7 @@ import org.apache.fineract.infrastructure.core.serialization.JsonParserHelper;
 import org.apache.fineract.infrastructure.core.service.DateUtils;
 import org.apache.fineract.infrastructure.core.service.ExternalIdFactory;
 import org.apache.fineract.infrastructure.core.service.ThreadLocalContextUtil;
+import org.apache.fineract.investor.data.ExternalTransferData;
 import org.apache.fineract.investor.data.ExternalTransferRequestParameters;
 import org.apache.fineract.investor.data.ExternalTransferStatus;
 import org.apache.fineract.investor.data.ExternalTransferSubStatus;
@@ -80,6 +81,7 @@ public class ExternalAssetOwnersWriteServiceImpl implements ExternalAssetOwnersW
     private final LoanRepository loanRepository;
     private final DelayedSettlementAttributeService delayedSettlementAttributeService;
     private final ConfigurationDomainService configurationDomainService;
+    private final ExternalAssetOwnersReadService externalAssetOwnersReadService;
 
     @Override
     @Transactional
@@ -307,6 +309,7 @@ public class ExternalAssetOwnersWriteServiceImpl implements ExternalAssetOwnersW
         externalAssetOwnerTransfer.setEffectiveDateFrom(effectiveDateFrom);
         externalAssetOwnerTransfer.setEffectiveDateTo(FUTURE_DATE_9999_12_31);
         externalAssetOwnerTransfer.setPurchasePriceRatio(effectiveTransfer.getPurchasePriceRatio());
+        externalAssetOwnerTransfer.setPreviousOwner(effectiveTransfer.getOwner());
         return externalAssetOwnerTransfer;
     }
 
@@ -410,6 +413,9 @@ public class ExternalAssetOwnersWriteServiceImpl implements ExternalAssetOwnersW
         externalAssetOwnerTransfer.setLoanId(loanId);
         externalAssetOwnerTransfer.setExternalLoanId(externalLoanId);
         externalAssetOwnerTransfer.setExternalGroupId(getTransferExternalGroupIdFromJson(json));
+
+        findPreviousAssetOwner(loanId).ifPresent(externalAssetOwnerTransfer::setPreviousOwner);
+
         return externalAssetOwnerTransfer;
     }
 
@@ -428,9 +434,23 @@ public class ExternalAssetOwnersWriteServiceImpl implements ExternalAssetOwnersW
         externalAssetOwnerTransfer.setLoanId(loanId);
         externalAssetOwnerTransfer.setExternalLoanId(externalLoanId);
         externalAssetOwnerTransfer.setExternalGroupId(getTransferExternalGroupIdFromJson(json));
+
+        findPreviousAssetOwner(loanId).ifPresent(externalAssetOwnerTransfer::setPreviousOwner);
+
         return externalAssetOwnerTransfer;
     }
 
+    private Optional<ExternalAssetOwner> findPreviousAssetOwner(final Long loanId) {
+        final ExternalTransferData activeTransfer = externalAssetOwnersReadService.retrieveActiveTransferData(loanId, null, null);
+
+        if (activeTransfer != null && activeTransfer.getOwner() != null) {
+            final String activeOwnerExternalId = activeTransfer.getOwner().getExternalId();
+            return externalAssetOwnerRepository.findByExternalId(ExternalIdFactory.produce(activeOwnerExternalId));
+        }
+
+        return Optional.empty();
+    }
+
     private void validateSaleRequestBody(String apiRequestBodyAsJson) {
         final Set<String> requestParameters = new HashSet<>(Arrays.asList(ExternalTransferRequestParameters.SETTLEMENT_DATE,
                 ExternalTransferRequestParameters.OWNER_EXTERNAL_ID, ExternalTransferRequestParameters.TRANSFER_EXTERNAL_ID,
diff --git a/fineract-investor/src/main/java/org/apache/fineract/investor/service/search/mapper/ExternalAssetOwnerSearchDataMapper.java b/fineract-investor/src/main/java/org/apache/fineract/investor/service/search/mapper/ExternalAssetOwnerSearchDataMapper.java
index 1a171b4ef..2797cfbd5 100644
--- a/fineract-investor/src/main/java/org/apache/fineract/investor/service/search/mapper/ExternalAssetOwnerSearchDataMapper.java
+++ b/fineract-investor/src/main/java/org/apache/fineract/investor/service/search/mapper/ExternalAssetOwnerSearchDataMapper.java
@@ -39,6 +39,7 @@ public interface ExternalAssetOwnerSearchDataMapper {
     @Mapping(target = "status", source = "source", qualifiedByName = "toStatus")
     @Mapping(target = "subStatus", source = "source", qualifiedByName = "toSubStatus")
     @Mapping(target = "details", source = "source", qualifiedByName = "toDetails")
+    @Mapping(target = "previousOwner", ignore = true)
     ExternalTransferData map(SearchedExternalAssetOwner source);
 
     @Named("toTransferExternalId")
diff --git a/fineract-investor/src/main/java/org/apache/fineract/investor/service/serialization/serializer/investor/InvestorBusinessEventSerializer.java b/fineract-investor/src/main/java/org/apache/fineract/investor/service/serialization/serializer/investor/InvestorBusinessEventSerializer.java
index c9daae352..db6836e1b 100644
--- a/fineract-investor/src/main/java/org/apache/fineract/investor/service/serialization/serializer/investor/InvestorBusinessEventSerializer.java
+++ b/fineract-investor/src/main/java/org/apache/fineract/investor/service/serialization/serializer/investor/InvestorBusinessEventSerializer.java
@@ -97,6 +97,8 @@ public class InvestorBusinessEventSerializer extends AbstractBusinessEventWithCu
         LoanOwnershipTransferDataV1.Builder builder = LoanOwnershipTransferDataV1.newBuilder().setLoanId(transferData.getLoan().getLoanId())
                 .setLoanExternalId(transferData.getLoan().getExternalId()).setTransferExternalId(transferData.getTransferExternalId())
                 .setAssetOwnerExternalId(transferData.getOwner().getExternalId())
+                .setPreviousOwnerExternalId(
+                        transferData.getPreviousOwner() != null ? transferData.getPreviousOwner().getExternalId() : null)
                 .setTransferExternalGroupId(transferData.getTransferExternalGroupId())
                 .setPurchasePriceRatio(transferData.getPurchasePriceRatio()).setCurrency(getCurrencyFromEvent(event))
                 .setSettlementDate(transferData.getSettlementDate().format(DEFAULT_DATE_FORMATTER))
diff --git a/fineract-investor/src/main/resources/db/changelog/tenant/module/investor/module-changelog-master.xml b/fineract-investor/src/main/resources/db/changelog/tenant/module/investor/module-changelog-master.xml
index 5e955c664..0a1833ec6 100644
--- a/fineract-investor/src/main/resources/db/changelog/tenant/module/investor/module-changelog-master.xml
+++ b/fineract-investor/src/main/resources/db/changelog/tenant/module/investor/module-changelog-master.xml
@@ -41,4 +41,5 @@
   <include relativeToChangelogFile="true" file="parts/0017_add_external_asset_owner_loan_product_attr_index.xml"/>
   <include relativeToChangelogFile="true" file="parts/0018_add_external_asset_owner_transfer_outstanding_interest_strategy.xml"/>
   <include relativeToChangelogFile="true" file="parts/0019_add_configurable_allowed_loan_statuses.xml"/>
+  <include relativeToChangelogFile="true" file="parts/0020_add_previous_owner_reference.xml"/>
 </databaseChangeLog>
diff --git a/fineract-investor/src/main/resources/db/changelog/tenant/module/investor/parts/0020_add_previous_owner_reference.xml b/fineract-investor/src/main/resources/db/changelog/tenant/module/investor/parts/0020_add_previous_owner_reference.xml
new file mode 100644
index 000000000..afe8800ca
--- /dev/null
+++ b/fineract-investor/src/main/resources/db/changelog/tenant/module/investor/parts/0020_add_previous_owner_reference.xml
@@ -0,0 +1,38 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<!--
+
+    Licensed to the Apache Software Foundation (ASF) under one
+    or more contributor license agreements. See the NOTICE file
+    distributed with this work for additional information
+    regarding copyright ownership. The ASF licenses this file
+    to you under the Apache License, Version 2.0 (the
+    "License"); you may not use this file except in compliance
+    with the License. You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+    Unless required by applicable law or agreed to in writing,
+    software distributed under the License is distributed on an
+    "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+    KIND, either express or implied. See the License for the
+    specific language governing permissions and limitations
+    under the License.
+
+-->
+<databaseChangeLog xmlns="http://www.liquibase.org/xml/ns/dbchangelog"
+                   xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
+                   xsi:schemaLocation="http://www.liquibase.org/xml/ns/dbchangelog
+                   http://www.liquibase.org/xml/ns/dbchangelog/dbchangelog-4.1.xsd">
+    <changeSet author="fineract" id="1">
+        <addColumn tableName="m_external_asset_owner_transfer">
+            <column name="previous_owner_id" type="BIGINT">
+                <constraints nullable="true"/>
+            </column>
+        </addColumn>
+        <addForeignKeyConstraint baseTableName="m_external_asset_owner_transfer"
+                                 baseColumnNames="previous_owner_id"
+                                 constraintName="FK_external_asset_owner_transfer_previous_owner"
+                                 referencedTableName="m_external_asset_owner"
+                                 referencedColumnNames="id"/>
+    </changeSet>
+</databaseChangeLog>
diff --git a/fineract-investor/src/test/java/org/apache/fineract/investor/service/ExternalAssetOwnersWriteServiceTest.java b/fineract-investor/src/test/java/org/apache/fineract/investor/service/ExternalAssetOwnersWriteServiceTest.java
index c058214ba..1276875d5 100644
--- a/fineract-investor/src/test/java/org/apache/fineract/investor/service/ExternalAssetOwnersWriteServiceTest.java
+++ b/fineract-investor/src/test/java/org/apache/fineract/investor/service/ExternalAssetOwnersWriteServiceTest.java
@@ -864,6 +864,9 @@ public class ExternalAssetOwnersWriteServiceTest {
         @Mock
         private ConfigurationDomainService configurationDomainService;
 
+        @Mock
+        private ExternalAssetOwnersReadService externalAssetOwnersReadService;
+
         @InjectMocks
         private ExternalAssetOwnersWriteServiceImpl externalAssetOwnersWriteServiceImpl;
 
@@ -934,6 +937,7 @@ public class ExternalAssetOwnersWriteServiceTest {
                     .thenReturn(List.of("ACTIVE", "TRANSFER_IN_PROGRESS", "TRANSFER_ON_HOLD"));
             lenient().when(configurationDomainService.getAllowedLoanStatusesOfDelayedSettlementForExternalAssetTransfer())
                     .thenReturn(List.of("ACTIVE", "TRANSFER_IN_PROGRESS", "TRANSFER_ON_HOLD", "OVERPAID", "CLOSED_OBLIGATIONS_MET"));
+            lenient().when(externalAssetOwnersReadService.retrieveActiveTransferData(any(Long.class), any(), any())).thenReturn(null);
 
         }
     }
diff --git a/fineract-investor/src/test/java/org/apache/fineract/investor/service/serialization/serializer/investor/InvestorBusinessEventSerializerTest.java b/fineract-investor/src/test/java/org/apache/fineract/investor/service/serialization/serializer/investor/InvestorBusinessEventSerializerTest.java
index 07fad8281..93485af04 100644
--- a/fineract-investor/src/test/java/org/apache/fineract/investor/service/serialization/serializer/investor/InvestorBusinessEventSerializerTest.java
+++ b/fineract-investor/src/test/java/org/apache/fineract/investor/service/serialization/serializer/investor/InvestorBusinessEventSerializerTest.java
@@ -183,6 +183,7 @@ public class InvestorBusinessEventSerializerTest {
         assertEquals(1, result.getCurrency().getInMultiplesOf());
         assertEquals("1.0", result.getPurchasePriceRatio());
         assertEquals(ASSET_OWNER_EXTERNAL_ID, result.getAssetOwnerExternalId());
+        assertEquals("previous-owner-123", result.getPreviousOwnerExternalId());
         assertEquals(LOAN_EXTERNAL_ID, result.getLoanExternalId());
         assertEquals(TRANSFER_EXTERNAL_ID.getValue(), result.getTransferExternalId());
         assertEquals(LOAN_ID, result.getLoanId());
@@ -232,6 +233,7 @@ public class InvestorBusinessEventSerializerTest {
 
         ExternalTransferData data = new ExternalTransferData();
         data.setOwner(new ExternalTransferOwnerData(ASSET_OWNER_EXTERNAL_ID));
+        data.setPreviousOwner(new ExternalTransferOwnerData("previous-owner-123"));
         data.setStatus(status);
         data.setSubStatus(subStatus);
         data.setTransferId(123L);