diff --git a/CHANGELOG.rst b/CHANGELOG.rst
index 8737534702..5bdc93da28 100644
--- a/CHANGELOG.rst
+++ b/CHANGELOG.rst
@@ -16,6 +16,10 @@ Change Log
 Unreleased
 ----------
 
+[4.12.1]
+---------
+* feat: unlink canvas user if not decommissioned on canvas side
+
 [4.12.0]
 ---------
 * feat: Remove history tables for integrated channels customers configurations.
diff --git a/enterprise/__init__.py b/enterprise/__init__.py
index da4f333ca2..2b34b661db 100644
--- a/enterprise/__init__.py
+++ b/enterprise/__init__.py
@@ -2,4 +2,4 @@
 Your project description goes here.
 """
 
-__version__ = "4.12.0"
+__version__ = "4.12.1"
diff --git a/integrated_channels/canvas/client.py b/integrated_channels/canvas/client.py
index 8911ccf6ad..fe36683875 100644
--- a/integrated_channels/canvas/client.py
+++ b/integrated_channels/canvas/client.py
@@ -12,6 +12,7 @@
 
 from django.apps import apps
 
+from enterprise.models import EnterpriseCustomerUser
 from integrated_channels.canvas.utils import CanvasUtil  # pylint: disable=cyclic-import
 from integrated_channels.exceptions import ClientError
 from integrated_channels.integrated_channel.client import IntegratedChannelApiClient, IntegratedChannelHealthStatus
@@ -654,7 +655,7 @@ def _extract_integration_id(self, data):
 
         return integration_id
 
-    def _search_for_canvas_user_by_email(self, user_email):
+    def _search_for_canvas_user_by_email(self, user_email):  # pylint: disable=inconsistent-return-statements
         """
         Helper method to make an api call to Canvas using the user's email as a search term.
 
@@ -687,13 +688,34 @@ def _search_for_canvas_user_by_email(self, user_email):
         get_users_by_email_response = rsps.json()
 
         try:
-            canvas_user_id = get_users_by_email_response[0]['id']
+            canvas_user_id = get_users_by_email_response[0]["id"]
+            return canvas_user_id
         except (KeyError, IndexError) as error:
-            raise ClientError(
-                "No Canvas user ID found associated with email: {}".format(user_email),
-                HTTPStatus.NOT_FOUND.value
-            ) from error
-        return canvas_user_id
+            # learner is decommissioned on Canvas side - unlink it from enterprise
+            try:
+                enterprise_customer = self.enterprise_configuration.enterprise_customer
+                # Unlink user from related Enterprise Customer
+                EnterpriseCustomerUser.objects.unlink_user(
+                    enterprise_customer=enterprise_customer,
+                    user_email=user_email,
+                )
+                raise ClientError(
+                    "No Canvas user ID found associated with email: {} - User unlinked from enterprise now".format(
+                        user_email
+                    ),
+                    HTTPStatus.NOT_FOUND.value,
+                ) from error
+            except Exception as e:  # pylint: disable=broad-except
+                LOGGER.error(
+                    generate_formatted_log(
+                        self.enterprise_configuration.channel_code(),
+                        self.enterprise_configuration.enterprise_customer.uuid,
+                        None,
+                        None,
+                        f"Error occurred while unlinking a Canvas learner: {user_email}. "
+                        f"Error: {e}",
+                    )
+                )
 
     def _get_canvas_user_courses_by_id(self, user_id):
         """Helper method to retrieve all courses that a Canvas user is enrolled in."""
diff --git a/integrated_channels/integrated_channel/admin/__init__.py b/integrated_channels/integrated_channel/admin/__init__.py
index 41042bc142..5103a8198c 100644
--- a/integrated_channels/integrated_channel/admin/__init__.py
+++ b/integrated_channels/integrated_channel/admin/__init__.py
@@ -128,5 +128,7 @@ class IntegratedChannelAPIRequestLogAdmin(admin.ModelAdmin):
         "payload",
     ]
 
+    list_per_page = 100
+
     class Meta:
         model = IntegratedChannelAPIRequestLogs
diff --git a/tests/test_integrated_channels/test_canvas/test_client.py b/tests/test_integrated_channels/test_canvas/test_client.py
index 278206286d..45ad649df3 100644
--- a/tests/test_integrated_channels/test_canvas/test_client.py
+++ b/tests/test_integrated_channels/test_canvas/test_client.py
@@ -16,6 +16,7 @@
 
 from django.apps import apps
 
+from enterprise.models import EnterpriseCustomerUser
 from integrated_channels.canvas.client import MESSAGE_WHEN_COURSE_WAS_DELETED, CanvasAPIClient
 from integrated_channels.canvas.utils import CanvasUtil
 from integrated_channels.exceptions import ClientError
@@ -161,39 +162,27 @@ def test_expires_at_is_updated_after_session_expiry(self):
                 canvas_api_client._create_session()  # pylint: disable=protected-access
                 assert canvas_api_client.expires_at > orig_expires_at
 
+    @responses.activate
     def test_search_for_canvas_user_with_400(self):
         """
-        Test that we properly raise exceptions if the client can't find the edx user in Canvas while reporting
-        grades (assessment and course level reporting both use the same method of retrieval).
+        Test that we properly raise exception and unlink user if the client can't find the edx user in Canvas
+        while reporting grades (assessment and course level reporting both use the same method of retrieval).
         """
-        with responses.RequestsMock() as rsps:
-            rsps.add(
-                responses.GET,
-                self.canvas_users_url,
-                body="[]",
-                status=200
-            )
-            canvas_api_client = CanvasAPIClient(self.enterprise_config)
-
-            # Searching for canvas users will require the session to be created
-            rsps.add(
-                responses.POST,
-                self.oauth_url,
-                json=self._token_response(),
-                status=200
-            )
-            canvas_api_client._create_session()  # pylint: disable=protected-access
-
-            with pytest.raises(ClientError) as client_error:
-                canvas_api_client._search_for_canvas_user_by_email(self.canvas_email)  # pylint: disable=protected-access
-                assert IntegratedChannelAPIRequestLogs.objects.count() == 2
-                assert client_error.value.message == \
-                    "Course: {course_id} not found registered in Canvas for Edx " \
-                    "learner: {canvas_email}/Canvas learner: {canvas_user_id}.".format(
-                        course_id=self.course_id,
-                        canvas_email=self.canvas_email,
-                        canvas_user_id=self.canvas_user_id
-                    )
+        responses.add(
+            responses.POST, self.oauth_url, json=self._token_response(), status=200
+        )
+        responses.add(responses.GET, self.canvas_users_url, json=[], status=200)
+        canvas_api_client = CanvasAPIClient(self.enterprise_config)
+        canvas_api_client._create_session()  # pylint: disable=protected-access
+        assert responses.calls[0].request.url == self.oauth_url
+
+        with mock.patch.object(
+            EnterpriseCustomerUser.objects, "unlink_user"
+        ) as unlink_user_mock:
+            canvas_api_client._search_for_canvas_user_by_email(self.canvas_email)  # pylint: disable=protected-access
+            unlink_user_mock.assert_called_once()
+        assert len(responses.calls) == 2
+        assert IntegratedChannelAPIRequestLogs.objects.count() == 2
 
     def test_assessment_reporting_with_no_canvas_course_found(self):
         """