diff --git a/addons/payment/data/payment_acquirer_data.xml b/addons/payment/data/payment_acquirer_data.xml
index 4493f0d9427..4d8bc0cbea1 100644
--- a/addons/payment/data/payment_acquirer_data.xml
+++ b/addons/payment/data/payment_acquirer_data.xml
@@ -321,6 +321,7 @@
                 <li class="list-inline-item"><i class="fa fa-check"/>Subscriptions</li>
                 <li class="list-inline-item"><i class="fa fa-check"/>Save Cards</li>
                 <li class="list-inline-item"><i class="fa fa-check"/>Manual Capture</li>
+                <li class="list-inline-item"><i class="fa fa-check"/>Refunds</li>
             </ul>
         </field>
         <!--
diff --git a/addons/payment/models/payment_transaction.py b/addons/payment/models/payment_transaction.py
index 4da7ba1f2d2..e7ce841cd6d 100644
--- a/addons/payment/models/payment_transaction.py
+++ b/addons/payment/models/payment_transaction.py
@@ -80,7 +80,14 @@ class PaymentTransaction(models.Model):
         string="Source Transaction",
         comodel_name='payment.transaction',
         help="The source transaction of related refund transactions",
-        readonly=True
+        readonly=True,
+    )
+    child_transaction_ids = fields.One2many(
+        string="Child Transactions",
+        help="The child transactions of the source transaction.",
+        comodel_name='payment.transaction',
+        inverse_name='source_transaction_id',
+        readonly=True,
     )
     refunds_count = fields.Integer(string="Refunds Count", compute='_compute_refunds_count')
     invoice_ids = fields.Many2many(
@@ -703,7 +710,7 @@ class PaymentTransaction(models.Model):
         :param str state_message: The reason for which the transaction is set in 'error' state
         :return: None
         """
-        allowed_states = ('draft', 'pending', 'authorized')
+        allowed_states = ('draft', 'pending', 'authorized', 'done')  # 'done' for Stripe refunds.
         target_state = 'error'
         txs_to_process = self._update_state(allowed_states, target_state, state_message)
         txs_to_process._log_received_message()
diff --git a/addons/payment_stripe/const.py b/addons/payment_stripe/const.py
index f7cfd2f241e..04fea034957 100644
--- a/addons/payment_stripe/const.py
+++ b/addons/payment_stripe/const.py
@@ -2,6 +2,7 @@
 
 from collections import namedtuple
 
+
 API_VERSION = '2019-05-16'  # The API version of Stripe implemented in this module
 
 # Stripe proxy URL
@@ -18,14 +19,19 @@ PAYMENT_METHOD_TYPES = [
     PMT('p24', ['pl'], ['eur', 'pln'], 'punctual'),
 ]
 
-# Mapping of transaction states to Stripe {Payment,Setup}Intent statuses.
-# See https://stripe.com/docs/payments/intents#intent-statuses for the exhaustive list of status.
-INTENT_STATUS_MAPPING = {
+# Mapping of transaction states to Stripe objects ({Payment,Setup}Intent, Charge, Refund) statuses.
+# For each object's exhaustive status list, see:
+# https://stripe.com/docs/api/payment_intents/object#payment_intent_object-status
+# https://stripe.com/docs/api/setup_intents/object#setup_intent_object-status
+# https://stripe.com/docs/api/charges/object#charge_object-status
+# https://stripe.com/docs/api/refunds/object#refund_object-status
+STATUS_MAPPING = {
     'draft': ('requires_payment_method', 'requires_confirmation', 'requires_action'),
-    'pending': ('processing',),
+    'pending': ('processing', 'pending'),
     'authorized': ('requires_capture',),
     'done': ('succeeded',),
     'cancel': ('canceled',),
+    'error': ('failed',),
 }
 
 # Events which are handled by the webhook
@@ -33,4 +39,6 @@ HANDLED_WEBHOOK_EVENTS = [
     'payment_intent.amount_capturable_updated',
     'payment_intent.succeeded',
     'setup_intent.succeeded',
+    'charge.refunded',  # A refund has been issued.
+    'charge.refund.updated',  # The refund status has changed, possibly from succeeded to failed.
 ]
diff --git a/addons/payment_stripe/controllers/main.py b/addons/payment_stripe/controllers/main.py
index 8cabfb8917c..b65c1efc62c 100644
--- a/addons/payment_stripe/controllers/main.py
+++ b/addons/payment_stripe/controllers/main.py
@@ -13,6 +13,7 @@ from odoo import http
 from odoo.exceptions import ValidationError
 from odoo.http import request
 
+from odoo.addons.payment import utils as payment_utils
 from odoo.addons.payment_stripe import utils as stripe_utils
 from odoo.addons.payment_stripe.const import HANDLED_WEBHOOK_EVENTS
 
@@ -89,26 +90,64 @@ class StripeController(http.Controller):
         _logger.info("notification received from Stripe with data:\n%s", pprint.pformat(event))
         try:
             if event['type'] in HANDLED_WEBHOOK_EVENTS:
-                intent = event['data']['object']  # PaymentIntent/SetupIntent, depending on the flow
+                stripe_object = event['data']['object']  # {Payment,Setup}Intent, Charge, or Refund.
 
-                # Check the integrity of the event
-                data = {'reference': intent['description']}
+                # Check the integrity of the event.
+                data = {
+                    'reference': stripe_object.get('description'),
+                    'event_type': event['type'],
+                    'object_id': stripe_object['id'],
+                }
                 tx_sudo = request.env['payment.transaction'].sudo()._get_tx_from_notification_data(
                     'stripe', data
                 )
                 self._verify_notification_signature(tx_sudo)
-                if event['type'].startswith('payment_intent'):
-                    self._include_payment_intent_in_notification_data(intent, data)
-                else:  # Validation
+
+                # Handle the notification data.
+                if event['type'].startswith('payment_intent'):  # Payment operation.
+                    self._include_payment_intent_in_notification_data(stripe_object, data)
+                elif event['type'].startswith('setup_intent'):  # Validation operation.
                     # Fetch the missing PaymentMethod object.
                     payment_method = tx_sudo.acquirer_id._stripe_make_request(
-                        f'payment_methods/{intent["payment_method"]}', method='GET'
+                        f'payment_methods/{stripe_object["payment_method"]}', method='GET'
                     )
                     _logger.info(
                         "received payment_methods response:\n%s", pprint.pformat(payment_method)
                     )
-                    intent['payment_method'] = payment_method
-                    self._include_setup_intent_in_notification_data(intent, data)
+                    stripe_object['payment_method'] = payment_method
+                    self._include_setup_intent_in_notification_data(stripe_object, data)
+                elif event['type'] == 'charge.refunded':  # Refund operation (refund creation).
+                    refunds = stripe_object['refunds']['data']
+
+                    # The refunds linked to this charge are paginated, fetch the remaining refunds.
+                    has_more = stripe_object['refunds']['has_more']
+                    while has_more:
+                        payload = {
+                            'charge': stripe_object['id'],
+                            'starting_after': refunds[-1]['id'],
+                            'limit': 100,
+                        }
+                        additional_refunds = tx_sudo.acquirer_id._stripe_make_request(
+                            'refunds', payload=payload, method='GET'
+                        )
+                        refunds += additional_refunds['data']
+                        has_more = additional_refunds['has_more']
+
+                    # Process the refunds for which a refund transaction has not been created yet.
+                    processed_refund_ids = tx_sudo.child_transaction_ids.filtered(
+                        lambda tx: tx.operation == 'refund'
+                    ).mapped('acquirer_reference')
+                    for refund in filter(lambda r: r['id'] not in processed_refund_ids, refunds):
+                        refund_tx_sudo = self._create_refund_tx_from_refund(tx_sudo, refund)
+                        self._include_refund_in_notification_data(refund, data)
+                        refund_tx_sudo._handle_notification_data('stripe', data)
+                    return ''  # Don't handle the notification data for the source transaction.
+                elif event['type'] == 'charge.refund.updated':  # Refund operation (with update).
+                    # A refund was updated by Stripe after it was already processed (possibly to
+                    # cancel it). This can happen when the customer's payment method can no longer
+                    # be topped up (card expired, account closed...). The `tx_sudo` record is the
+                    # refund transaction to update.
+                    self._include_refund_in_notification_data(stripe_object, data)
 
                 # Handle the notification data crafted with Stripe API objects
                 tx_sudo._handle_notification_data('stripe', data)
@@ -133,6 +172,26 @@ class StripeController(http.Controller):
             'payment_method': setup_intent.get('payment_method'),
         })
 
+    @staticmethod
+    def _include_refund_in_notification_data(refund, notification_data):
+        notification_data.update(refund=refund)
+
+    @staticmethod
+    def _create_refund_tx_from_refund(source_tx_sudo, refund_object):
+        """ Create a refund transaction based on Stripe data.
+
+        :param recordset source_tx_sudo: The source transaction for which a refund is initiated, as
+                                         a sudoed `payment.transaction` record.
+        :param dict refund_object: The Stripe refund object to create the refund from.
+        :return: The created refund transaction.
+        :rtype: recordset of `payment.transaction`
+        """
+        amount_to_refund = refund_object['amount']
+        converted_amount = payment_utils.to_major_currency_units(
+            amount_to_refund, source_tx_sudo.currency_id
+        )
+        return source_tx_sudo._create_refund_transaction(amount_to_refund=converted_amount)
+
     def _verify_notification_signature(self, tx_sudo):
         """ Check that the received signature matches the expected one.
 
diff --git a/addons/payment_stripe/models/payment_acquirer.py b/addons/payment_stripe/models/payment_acquirer.py
index a51ccf51f1c..84dfa9ac680 100644
--- a/addons/payment_stripe/models/payment_acquirer.py
+++ b/addons/payment_stripe/models/payment_acquirer.py
@@ -41,6 +41,7 @@ class PaymentAcquirer(models.Model):
         super()._compute_feature_support_fields()
         self.filtered(lambda acq: acq.provider == 'stripe').update({
             'support_manual_capture': True,
+            'support_refund': 'partial',
             'support_tokenization': True,
         })
 
diff --git a/addons/payment_stripe/models/payment_transaction.py b/addons/payment_stripe/models/payment_transaction.py
index 684aaa89185..07a739af574 100644
--- a/addons/payment_stripe/models/payment_transaction.py
+++ b/addons/payment_stripe/models/payment_transaction.py
@@ -10,7 +10,7 @@ from odoo.exceptions import UserError, ValidationError
 
 from odoo.addons.payment import utils as payment_utils
 from odoo.addons.payment_stripe import utils as stripe_utils
-from odoo.addons.payment_stripe.const import INTENT_STATUS_MAPPING, PAYMENT_METHOD_TYPES
+from odoo.addons.payment_stripe.const import STATUS_MAPPING, PAYMENT_METHOD_TYPES
 from odoo.addons.payment_stripe.controllers.main import StripeController
 
 
@@ -195,6 +195,95 @@ class PaymentTransaction(models.Model):
         )
         self._handle_notification_data('stripe', notification_data)
 
+    def _stripe_create_payment_intent(self):
+        """ Create and return a PaymentIntent.
+
+        Note: self.ensure_one()
+
+        :return: The Payment Intent
+        :rtype: dict
+        """
+        if not self.token_id.stripe_payment_method:  # Pre-SCA token -> migrate it
+            self.token_id._stripe_sca_migrate_customer()
+
+        response = self.acquirer_id._stripe_make_request(
+            'payment_intents',
+            payload=self._stripe_prepare_payment_intent_payload(),
+            offline=self.operation == 'offline',
+        )
+        if 'error' not in response:
+            payment_intent = response
+        else:  # A processing error was returned in place of the payment intent
+            error_msg = response['error'].get('message')
+            self._set_error("Stripe: " + _(
+                "The communication with the API failed.\n"
+                "Stripe gave us the following info about the problem:\n'%s'", error_msg
+            ))  # Flag transaction as in error now as the intent status might have a valid value
+            payment_intent = response['error'].get('payment_intent')  # Get the PI from the error
+
+        return payment_intent
+
+    def _stripe_prepare_payment_intent_payload(self):
+        """ Prepare the payload for the creation of a payment intent in Stripe format.
+
+        Note: This method serves as a hook for modules that would fully implement Stripe Connect.
+        Note: self.ensure_one()
+
+        :return: The Stripe-formatted payload for the payment intent request
+        :rtype: dict
+        """
+        return {
+            'amount': payment_utils.to_minor_currency_units(self.amount, self.currency_id),
+            'currency': self.currency_id.name.lower(),
+            'confirm': True,
+            'customer': self.token_id.acquirer_ref,
+            'off_session': True,
+            'payment_method': self.token_id.stripe_payment_method,
+            'description': self.reference,
+            'capture_method': 'manual' if self.acquirer_id.capture_manually else 'automatic',
+        }
+
+    def _send_refund_request(self, amount_to_refund=None, create_refund_transaction=True):
+        """ Override of payment to send a refund request to Stripe.
+
+        Note: self.ensure_one()
+
+        :param float amount_to_refund: The amount to refund.
+        :param bool create_refund_transaction: Whether a refund transaction should be created or
+                                               not.
+        :return: The refund transaction, if any.
+        :rtype: recordset of `payment.transaction`
+        """
+        if self.provider != 'stripe':
+            return super()._send_refund_request(
+                amount_to_refund=amount_to_refund,
+                create_refund_transaction=create_refund_transaction,
+            )
+        refund_tx = super()._send_refund_request(
+            amount_to_refund=amount_to_refund, create_refund_transaction=True
+        )
+
+        # Make the refund request to stripe.
+        data = self.acquirer_id._stripe_make_request(
+            'refunds', payload={
+                'charge': self.acquirer_reference,
+                'amount': payment_utils.to_minor_currency_units(
+                    -refund_tx.amount,  # Refund transactions' amount is negative, inverse it.
+                    refund_tx.currency_id,
+                ),
+            }
+        )
+        _logger.info(
+            "Refund request response for transaction wih reference %s:\n%s",
+            self.reference, pprint.pformat(data)
+        )
+        # Handle the refund request response.
+        notification_data = {}
+        StripeController._include_refund_in_notification_data(data, notification_data)
+        refund_tx._handle_notification_data('stripe', notification_data)
+
+        return refund_tx
+
     def _send_capture_request(self):
         """ Override of payment to send a capture request to Stripe.
 
@@ -249,54 +338,6 @@ class PaymentTransaction(models.Model):
         )
         self._handle_notification_data('stripe', notification_data)
 
-    def _stripe_create_payment_intent(self):
-        """ Create and return a PaymentIntent.
-
-        Note: self.ensure_one()
-
-        :return: The Payment Intent
-        :rtype: dict
-        """
-        if not self.token_id.stripe_payment_method:  # Pre-SCA token -> migrate it
-            self.token_id._stripe_sca_migrate_customer()
-
-        response = self.acquirer_id._stripe_make_request(
-            'payment_intents',
-            payload=self._stripe_prepare_payment_intent_payload(),
-            offline=self.operation == 'offline',
-        )
-        if 'error' not in response:
-            payment_intent = response
-        else:  # A processing error was returned in place of the payment intent
-            error_msg = response['error'].get('message')
-            self._set_error("Stripe: " + _(
-                "The communication with the API failed.\n"
-                "Stripe gave us the following info about the problem:\n'%s'", error_msg
-            ))  # Flag transaction as in error now as the intent status might have a valid value
-            payment_intent = response['error'].get('payment_intent')  # Get the PI from the error
-
-        return payment_intent
-
-    def _stripe_prepare_payment_intent_payload(self):
-        """ Prepare the payload for the creation of a payment intent in Stripe format.
-
-        Note: This method serves as a hook for modules that would fully implement Stripe Connect.
-        Note: self.ensure_one()
-
-        :return: The Stripe-formatted payload for the payment intent request
-        :rtype: dict
-        """
-        return {
-            'amount': payment_utils.to_minor_currency_units(self.amount, self.currency_id),
-            'currency': self.currency_id.name.lower(),
-            'confirm': True,
-            'customer': self.token_id.acquirer_ref,
-            'off_session': True,
-            'payment_method': self.token_id.stripe_payment_method,
-            'description': self.reference,
-            'capture_method': 'manual' if self.acquirer_id.capture_manually else 'automatic',
-        }
-
     def _get_tx_from_notification_data(self, provider, notification_data):
         """ Override of payment to find the transaction based on Stripe data.
 
@@ -312,10 +353,17 @@ class PaymentTransaction(models.Model):
             return tx
 
         reference = notification_data.get('reference')
-        if not reference:
+        if reference:
+            tx = self.search([('reference', '=', reference), ('provider', '=', 'stripe')])
+        elif notification_data.get('event_type') == 'charge.refund.updated':
+            # The webhook notifications sent for `charge.refund.updated` events only contain a
+            # refund object that has no 'description' (the merchant reference) field. We thus search
+            # the transaction by its acquirer reference which is the refund id for refund txs.
+            refund_id = notification_data['object_id']  # The object is a refund.
+            tx = self.search([('acquirer_reference', '=', refund_id), ('provider', '=', 'stripe')])
+        else:
             raise ValidationError("Stripe: " + _("Received data with missing merchant reference"))
 
-        tx = self.search([('reference', '=', reference), ('provider', '=', 'stripe')])
         if not tx:
             raise ValidationError(
                 "Stripe: " + _("No transaction found matching reference %s.", reference)
@@ -339,41 +387,52 @@ class PaymentTransaction(models.Model):
         if self.provider != 'stripe':
             return
 
-        if 'charge' in notification_data:
-            self.acquirer_reference = notification_data['charge']['id']
-
-        # Handle the intent status
+        # Handle the acquirer reference and the status.
         if self.operation == 'validation':
-            intent_status = notification_data.get('setup_intent', {}).get('status')
+            status = notification_data.get('setup_intent', {}).get('status')
+        elif self.operation == 'refund':
+            self.acquirer_reference = notification_data['refund']['id']
+            status = notification_data['refund']['status']
         else:  # 'online_redirect', 'online_token', 'offline'
-            intent_status = notification_data.get('payment_intent', {}).get('status')
-        if not intent_status:
+            if 'charge' in notification_data:  # The online_redirect operation may include a charge.
+                self.acquirer_reference = notification_data['charge']['id']
+            status = notification_data.get('payment_intent', {}).get('status')
+        if not status:
             raise ValidationError(
                 "Stripe: " + _("Received data with missing intent status.")
             )
 
-        if intent_status in INTENT_STATUS_MAPPING['draft']:
+        if status in STATUS_MAPPING['draft']:
             pass
-        elif intent_status in INTENT_STATUS_MAPPING['pending']:
+        elif status in STATUS_MAPPING['pending']:
             self._set_pending()
-        elif intent_status in INTENT_STATUS_MAPPING['authorized']:
+        elif status in STATUS_MAPPING['authorized']:
             if self.tokenize:
                 self._stripe_tokenize_from_notification_data(notification_data)
             self._set_authorized()
-        elif intent_status in INTENT_STATUS_MAPPING['done']:
+        elif status in STATUS_MAPPING['done']:
             if self.tokenize:
                 self._stripe_tokenize_from_notification_data(notification_data)
+
             self._set_done()
-        elif intent_status in INTENT_STATUS_MAPPING['cancel']:
+
+            # Immediately post-process the transaction if it is a refund, as the post-processing
+            # will not be triggered by a customer browsing the transaction from the portal.
+            if self.operation == 'refund':
+                self.env.ref('payment.cron_post_process_payment_tx')._trigger()
+        elif status in STATUS_MAPPING['cancel']:
             self._set_canceled()
+        elif status in STATUS_MAPPING['error'] and self.operation == 'refund':
+            self._set_error("Stripe: " + _(
+                "The refund did not go through. Please log into your Stripe Dashboard to get more "
+                "information on that matter, and address any accounting discrepancies."
+            ))
         else:  # Classify unknown intent statuses as `error` tx state
             _logger.warning(
                 "received invalid payment status (%s) for transaction with reference %s",
-                intent_status, self.reference
-            )
-            self._set_error(
-                "Stripe: " + _("Received data with invalid intent status: %s", intent_status)
+                status, self.reference
             )
+            self._set_error("Stripe: " + _("Received data with invalid intent status: %s", status))
 
     def _stripe_tokenize_from_notification_data(self, notification_data):
         """ Create a new token based on the notification data.
diff --git a/addons/payment_stripe/tests/__init__.py b/addons/payment_stripe/tests/__init__.py
index 97819241ff5..788b52cd8f2 100644
--- a/addons/payment_stripe/tests/__init__.py
+++ b/addons/payment_stripe/tests/__init__.py
@@ -1,4 +1,5 @@
 # Part of Odoo. See LICENSE file for full copyright and licensing details.
 
 from . import common
+from . import test_refund_flows
 from . import test_stripe
diff --git a/addons/payment_stripe/tests/common.py b/addons/payment_stripe/tests/common.py
index 2d460d613ee..4cfdb71d192 100644
--- a/addons/payment_stripe/tests/common.py
+++ b/addons/payment_stripe/tests/common.py
@@ -1,4 +1,5 @@
 # Part of Odoo. See LICENSE file for full copyright and licensing details.
+
 from odoo.addons.payment.tests.common import PaymentCommon
 
 
@@ -30,3 +31,36 @@ class StripeCommon(PaymentCommon):
             },
             'type': 'payment_intent.succeeded'
         }
+
+        cls.refund_object = {
+            'amount': cls.amount,
+            'charge': 'ch_000000000000000000000000',
+            'currency': 'eur',
+            'id': 're_000000000000000000000000',
+            'object': 'refund',
+            'payment_intent': 'pi_000000000000000000000000',
+            'status': 'succeeded',
+        }
+        cls.refund_notification_data = {
+            'data': {
+                'object': {
+                    'id': 'ch_000000000000000000000000',
+                    'object': 'charge',
+                    'amount': cls.amount,
+                    'description': cls.reference,
+                    'refunds': {
+                        'object': 'list',
+                        'data': [cls.refund_object],
+                        'has_more': False,
+                    },
+                    'status': 'succeeded',
+                }
+            },
+            'type': 'charge.refunded'
+        }
+        cls.canceled_refund_notification_data = {
+            'data': {
+                'object': dict(cls.refund_object, status='failed'),
+            },
+            'type': 'charge.refund.updated',
+        }
diff --git a/addons/payment_stripe/tests/test_refund_flows.py b/addons/payment_stripe/tests/test_refund_flows.py
new file mode 100644
index 00000000000..02b6f620445
--- /dev/null
+++ b/addons/payment_stripe/tests/test_refund_flows.py
@@ -0,0 +1,51 @@
+# Part of Odoo. See LICENSE file for full copyright and licensing details.
+
+from unittest.mock import patch
+
+from odoo.tests import tagged
+from odoo.tools import mute_logger
+
+from odoo.addons.payment.tests.http_common import PaymentHttpCommon
+from odoo.addons.payment_stripe.controllers.main import StripeController
+from odoo.addons.payment_stripe.tests.common import StripeCommon
+
+
+@tagged('post_install', '-at_install')
+class TestRefundFlows(StripeCommon, PaymentHttpCommon):
+
+    @mute_logger('odoo.addons.payment_stripe.models.payment_transaction')
+    def test_refund_id_is_set_as_acquirer_reference(self):
+        """ Test that the id of the refund object is set as the acquirer reference of the refund
+        transaction. """
+        source_tx = self.create_transaction('redirect', state='done')
+        with patch(
+            'odoo.addons.payment_stripe.models.payment_acquirer.PaymentAcquirer'
+            '._stripe_make_request', return_value=self.refund_object
+        ):
+            source_tx._send_refund_request()
+        refund_tx = self.env['payment.transaction'].search(
+            [('source_transaction_id', '=', source_tx.id)]
+        )
+        self.assertEqual(refund_tx.acquirer_reference, self.refund_object['id'])
+
+    @mute_logger(
+        'odoo.addons.payment_stripe.controllers.main',
+        'odoo.addons.payment_stripe.models.payment_transaction',
+    )
+    def test_canceled_refund_webhook_notification_triggers_processing(self):
+        """ Test that receiving a webhook notification for a refund cancellation
+        (`charge.refund.updated` event) triggers the processing of the notification data. """
+        source_tx = self.create_transaction('redirect', state='done')
+        source_tx._create_refund_transaction(
+            amount_to_refund=source_tx.amount, acquirer_reference=self.refund_object['id']
+        )
+        url = self._build_url(StripeController._webhook_url)
+        with patch(
+            'odoo.addons.payment_stripe.controllers.main.StripeController'
+            '._verify_notification_signature'
+        ), patch(
+            'odoo.addons.payment.models.payment_transaction.PaymentTransaction'
+            '._handle_notification_data'
+        ) as handle_notification_data_mock:
+            self._make_json_request(url, data=self.canceled_refund_notification_data)
+        self.assertEqual(handle_notification_data_mock.call_count, 1)