diff --git a/beacon-chain/blockchain/service.go b/beacon-chain/blockchain/service.go
index 560a2616e05b..486a7f98c2e4 100644
--- a/beacon-chain/blockchain/service.go
+++ b/beacon-chain/blockchain/service.go
@@ -468,6 +468,10 @@ func (s *Service) pruneGarbageState(ctx context.Context, slot uint64) error {
 		return err
 	}
 
+	if err := s.beaconDB.SaveLastArchivedIndex(ctx, 0); err != nil {
+		return err
+	}
+
 	return nil
 }
 
diff --git a/beacon-chain/db/kv/BUILD.bazel b/beacon-chain/db/kv/BUILD.bazel
index 3028065ad71b..76c8dfd82296 100644
--- a/beacon-chain/db/kv/BUILD.bazel
+++ b/beacon-chain/db/kv/BUILD.bazel
@@ -8,7 +8,7 @@ go_library(
         "attestations.go",
         "backup.go",
         "blocks.go",
-        "check_state.go",
+        "check_historical_state.go",
         "checkpoint.go",
         "deposit_contract.go",
         "encoding.go",
@@ -16,6 +16,7 @@ go_library(
         "kv.go",
         "operations.go",
         "powchain.go",
+        "regen_historical_states.go",
         "schema.go",
         "slashings.go",
         "state.go",
@@ -28,6 +29,7 @@ go_library(
     deps = [
         "//beacon-chain/cache:go_default_library",
         "//beacon-chain/core/helpers:go_default_library",
+        "//beacon-chain/core/state:go_default_library",
         "//beacon-chain/db/filters:go_default_library",
         "//beacon-chain/db/iface:go_default_library",
         "//beacon-chain/state:go_default_library",
@@ -35,6 +37,7 @@ go_library(
         "//proto/beacon/db:go_default_library",
         "//proto/beacon/p2p/v1:go_default_library",
         "//shared/bytesutil:go_default_library",
+        "//shared/cmd:go_default_library",
         "//shared/featureconfig:go_default_library",
         "//shared/params:go_default_library",
         "//shared/sliceutil:go_default_library",
diff --git a/beacon-chain/db/kv/archived_point.go b/beacon-chain/db/kv/archived_point.go
index 1afd568fde13..f543bdd2cf3f 100644
--- a/beacon-chain/db/kv/archived_point.go
+++ b/beacon-chain/db/kv/archived_point.go
@@ -2,6 +2,7 @@ package kv
 
 import (
 	"context"
+	"encoding/binary"
 
 	"github.com/prysmaticlabs/prysm/shared/bytesutil"
 	bolt "go.etcd.io/bbolt"
@@ -29,6 +30,21 @@ func (k *Store) SaveLastArchivedIndex(ctx context.Context, index uint64) error {
 	})
 }
 
+// LastArchivedIndex from the db.
+func (k *Store) LastArchivedIndex(ctx context.Context) (uint64, error) {
+	ctx, span := trace.StartSpan(ctx, "BeaconDB.LastArchivedIndex")
+	defer span.End()
+	var index uint64
+	err := k.db.Update(func(tx *bolt.Tx) error {
+		bucket := tx.Bucket(archivedIndexRootBucket)
+		b := bucket.Get(lastArchivedIndexKey)
+		index = binary.LittleEndian.Uint64(b)
+		return nil
+	})
+
+	return index, err
+}
+
 // LastArchivedIndexRoot from the db.
 func (k *Store) LastArchivedIndexRoot(ctx context.Context) [32]byte {
 	ctx, span := trace.StartSpan(ctx, "BeaconDB.LastArchivedIndexRoot")
diff --git a/beacon-chain/db/kv/check_historical_state.go b/beacon-chain/db/kv/check_historical_state.go
new file mode 100644
index 000000000000..6210cd400ed9
--- /dev/null
+++ b/beacon-chain/db/kv/check_historical_state.go
@@ -0,0 +1,55 @@
+package kv
+
+import (
+	"context"
+
+	"github.com/pkg/errors"
+	"github.com/prysmaticlabs/prysm/shared/cmd"
+	"github.com/prysmaticlabs/prysm/shared/featureconfig"
+	bolt "go.etcd.io/bbolt"
+)
+
+var historicalStateDeletedKey = []byte("historical-states-deleted")
+
+func (kv *Store) ensureNewStateServiceCompatible(ctx context.Context) error {
+	if !featureconfig.Get().NewStateMgmt {
+		return kv.db.Update(func(tx *bolt.Tx) error {
+			bkt := tx.Bucket(newStateServiceCompatibleBucket)
+			return bkt.Put(historicalStateDeletedKey, []byte{0x01})
+		})
+	}
+
+	var historicalStateDeleted bool
+	kv.db.View(func(tx *bolt.Tx) error {
+		bkt := tx.Bucket(newStateServiceCompatibleBucket)
+		v := bkt.Get(historicalStateDeletedKey)
+		historicalStateDeleted = len(v) == 1 && v[0] == 0x01
+		return nil
+	})
+
+	regenHistoricalStatesConfirmed := false
+	var err error
+	if historicalStateDeleted {
+		actionText := "Looks like you stopped using --new-state-mgmt. To reuse it, the node will need " +
+			"to generate and save historical states. The process may take a while, - do you want to proceed? (Y/N)"
+		deniedText := "Historical states will not be generated. Please remove usage --new-state-mgmt"
+
+		regenHistoricalStatesConfirmed, err = cmd.ConfirmAction(actionText, deniedText)
+		if err != nil {
+			return err
+		}
+
+		if !regenHistoricalStatesConfirmed {
+			return errors.New("exiting... please do not run with flag --new-state-mgmt")
+		}
+
+		if err := kv.regenHistoricalStates(ctx); err != nil {
+			return errors.Wrap(err, "could not regenerate historical states, please retry")
+		}
+	}
+
+	return kv.db.Update(func(tx *bolt.Tx) error {
+		bkt := tx.Bucket(newStateServiceCompatibleBucket)
+		return bkt.Put(historicalStateDeletedKey, []byte{0x00})
+	})
+}
diff --git a/beacon-chain/db/kv/check_state.go b/beacon-chain/db/kv/check_state.go
deleted file mode 100644
index f83fe1755b6c..000000000000
--- a/beacon-chain/db/kv/check_state.go
+++ /dev/null
@@ -1,33 +0,0 @@
-package kv
-
-import (
-	"errors"
-
-	"github.com/prysmaticlabs/prysm/shared/featureconfig"
-	bolt "go.etcd.io/bbolt"
-)
-
-var historicalStateDeletedKey = []byte("historical-states-deleted")
-
-func (kv *Store) ensureNewStateServiceCompatible() error {
-	if !featureconfig.Get().NewStateMgmt {
-		return kv.db.Update(func(tx *bolt.Tx) error {
-			bkt := tx.Bucket(newStateServiceCompatibleBucket)
-			return bkt.Put(historicalStateDeletedKey, []byte{0x01})
-		})
-	}
-
-	var historicalStateDeleted bool
-	kv.db.View(func(tx *bolt.Tx) error {
-		bkt := tx.Bucket(newStateServiceCompatibleBucket)
-		v := bkt.Get(historicalStateDeletedKey)
-		historicalStateDeleted = len(v) == 1 && v[0] == 0x01
-		return nil
-	})
-
-	if historicalStateDeleted {
-		return errors.New("historical states were pruned in db, do not run with flag --new-state-mgmt")
-	}
-
-	return nil
-}
diff --git a/beacon-chain/db/kv/kv.go b/beacon-chain/db/kv/kv.go
index 4dff30d2973e..feb570bf0788 100644
--- a/beacon-chain/db/kv/kv.go
+++ b/beacon-chain/db/kv/kv.go
@@ -1,6 +1,7 @@
 package kv
 
 import (
+	"context"
 	"os"
 	"path"
 	"sync"
@@ -120,7 +121,7 @@ func NewKVStore(dirPath string, stateSummaryCache *cache.StateSummaryCache) (*St
 		return nil, err
 	}
 
-	if err := kv.ensureNewStateServiceCompatible(); err != nil {
+	if err := kv.ensureNewStateServiceCompatible(context.Background()); err != nil {
 		return nil, err
 	}
 
diff --git a/beacon-chain/db/kv/regen_historical_states.go b/beacon-chain/db/kv/regen_historical_states.go
new file mode 100644
index 000000000000..d0931578b555
--- /dev/null
+++ b/beacon-chain/db/kv/regen_historical_states.go
@@ -0,0 +1,194 @@
+package kv
+
+import (
+	"context"
+	"fmt"
+
+	"github.com/pkg/errors"
+	ethpb "github.com/prysmaticlabs/ethereumapis/eth/v1alpha1"
+	"github.com/prysmaticlabs/go-ssz"
+	"github.com/prysmaticlabs/prysm/beacon-chain/core/helpers"
+	transition "github.com/prysmaticlabs/prysm/beacon-chain/core/state"
+	"github.com/prysmaticlabs/prysm/beacon-chain/db/filters"
+	stateTrie "github.com/prysmaticlabs/prysm/beacon-chain/state"
+	"github.com/prysmaticlabs/prysm/shared/params"
+	log "github.com/sirupsen/logrus"
+	"go.opencensus.io/trace"
+)
+
+func (kv *Store) regenHistoricalStates(ctx context.Context) error {
+	ctx, span := trace.StartSpan(ctx, "db.regenHistoricalStates")
+	defer span.End()
+
+	genesisState, err := kv.GenesisState(ctx)
+	if err != nil {
+		return err
+	}
+	currentState := genesisState.Copy()
+	startSlot := genesisState.Slot()
+
+	// Restore from last archived point if this process was previously interrupted.
+	slotsPerArchivedPoint := params.BeaconConfig().SlotsPerArchivedPoint
+	lastArchivedIndex, err := kv.LastArchivedIndex(ctx)
+	if err != nil {
+		return err
+	}
+	if lastArchivedIndex > 0 {
+		archivedIndexStart := lastArchivedIndex - 1
+		wantedSlotBelow := archivedIndexStart*slotsPerArchivedPoint + 1
+		states, err := kv.HighestSlotStatesBelow(ctx, wantedSlotBelow)
+		if err != nil {
+			return err
+		}
+		if len(states) == 0 {
+			return errors.New("states can't be empty")
+		}
+		if states[0] == nil {
+			return errors.New("nil last state")
+		}
+		currentState = states[0]
+		startSlot = currentState.Slot()
+	}
+
+	lastSavedBlockArchivedIndex, err := kv.lastSavedBlockArchivedIndex(ctx)
+	if err != nil {
+		return err
+	}
+	for i := lastArchivedIndex; i <= lastSavedBlockArchivedIndex; i++ {
+		targetSlot := startSlot + slotsPerArchivedPoint
+		filter := filters.NewFilter().SetStartSlot(startSlot + 1).SetEndSlot(targetSlot)
+		blocks, err := kv.Blocks(ctx, filter)
+		if err != nil {
+			return err
+		}
+
+		// Replay blocks and replay slots if necessary.
+		if len(blocks) > 0 {
+			for i := 0; i < len(blocks); i++ {
+				if blocks[i].Block.Slot == 0 {
+					continue
+				}
+				currentState, err = regenHistoricalStateTransition(ctx, currentState, blocks[i])
+				if err != nil {
+					return err
+				}
+			}
+		}
+		if targetSlot > currentState.Slot() {
+			currentState, err = regenHistoricalStateProcessSlots(ctx, currentState, targetSlot)
+			if err != nil {
+				return err
+			}
+		}
+
+		if len(blocks) > 0 {
+			// Save the historical root, state and highest index to the DB.
+			if helpers.IsEpochStart(currentState.Slot()) && currentState.Slot()%slotsPerArchivedPoint == 0 && blocks[len(blocks)-1].Block.Slot&slotsPerArchivedPoint == 0 {
+				if err := kv.saveArchivedInfo(ctx, currentState, blocks, i); err != nil {
+					return err
+				}
+				log.WithFields(log.Fields{
+					"currentArchivedIndex/totalArchivedIndices": fmt.Sprintf("%d/%d", i, lastSavedBlockArchivedIndex),
+					"archivedStateSlot":                         currentState.Slot()}).Info("Saved historical state")
+			}
+		}
+		startSlot += slotsPerArchivedPoint
+	}
+	return nil
+}
+
+// This runs state transition to recompute historical state.
+func regenHistoricalStateTransition(
+	ctx context.Context,
+	state *stateTrie.BeaconState,
+	signed *ethpb.SignedBeaconBlock,
+) (*stateTrie.BeaconState, error) {
+	if ctx.Err() != nil {
+		return nil, ctx.Err()
+	}
+	if signed == nil || signed.Block == nil {
+		return nil, errors.New("block can't be nil")
+	}
+	ctx, span := trace.StartSpan(ctx, "db.regenHistoricalStateTransition")
+	defer span.End()
+	var err error
+	state, err = regenHistoricalStateProcessSlots(ctx, state, signed.Block.Slot)
+	if err != nil {
+		return nil, errors.Wrap(err, "could not process slot")
+	}
+	state, err = transition.ProcessBlockForStateRoot(ctx, state, signed)
+	if err != nil {
+		return nil, errors.Wrap(err, "could not process block")
+	}
+	return state, nil
+}
+
+// This runs slot transition to recompute historical state.
+func regenHistoricalStateProcessSlots(ctx context.Context, state *stateTrie.BeaconState, slot uint64) (*stateTrie.BeaconState, error) {
+	ctx, span := trace.StartSpan(ctx, "db.regenHistoricalStateProcessSlots")
+	defer span.End()
+	if state == nil {
+		return nil, errors.New("state can't be nil")
+	}
+	if state.Slot() > slot {
+		err := fmt.Errorf("expected state.slot %d < slot %d", state.Slot(), slot)
+		return nil, err
+	}
+	if state.Slot() == slot {
+		return state, nil
+	}
+	for state.Slot() < slot {
+		state, err := transition.ProcessSlot(ctx, state)
+		if err != nil {
+			return nil, errors.Wrap(err, "could not process slot")
+		}
+		if transition.CanProcessEpoch(state) {
+			state, err = transition.ProcessEpochPrecompute(ctx, state)
+			if err != nil {
+				return nil, errors.Wrap(err, "could not process epoch with optimizations")
+			}
+		}
+		state.SetSlot(state.Slot() + 1)
+	}
+	return state, nil
+}
+
+// This retrieves the last saved block's archived index.
+func (kv *Store) lastSavedBlockArchivedIndex(ctx context.Context) (uint64, error) {
+	b, err := kv.HighestSlotBlocks(ctx)
+	if err != nil {
+		return 0, err
+	}
+	if len(b) == 0 {
+		return 0, errors.New("blocks can't be empty")
+	}
+	if b[0] == nil {
+		return 0, errors.New("nil last block")
+	}
+	lastSavedBlockSlot := b[0].Block.Slot
+	slotsPerArchivedPoint := params.BeaconConfig().SlotsPerArchivedPoint
+	lastSavedBlockArchivedIndex := lastSavedBlockSlot/slotsPerArchivedPoint - 1
+
+	return lastSavedBlockArchivedIndex, nil
+}
+
+// This saved archived info (state, root, index) into the db.
+func (kv *Store) saveArchivedInfo(ctx context.Context,
+	currentState *stateTrie.BeaconState,
+	blocks []*ethpb.SignedBeaconBlock,
+	archivedIndex uint64) error {
+	lastBlocksRoot, err := ssz.HashTreeRoot(blocks[len(blocks)-1].Block)
+	if err != nil {
+		return nil
+	}
+	if err := kv.SaveState(ctx, currentState, lastBlocksRoot); err != nil {
+		return err
+	}
+	if err := kv.SaveArchivedPointRoot(ctx, lastBlocksRoot, archivedIndex); err != nil {
+		return err
+	}
+	if err := kv.SaveLastArchivedIndex(ctx, archivedIndex); err != nil {
+		return err
+	}
+	return nil
+}
diff --git a/shared/params/config.go b/shared/params/config.go
index 10027b725c75..e57ca44e4d87 100644
--- a/shared/params/config.go
+++ b/shared/params/config.go
@@ -94,6 +94,7 @@ type BeaconChainConfig struct {
 	EmptySignature            [96]byte      // EmptySignature is used to represent a zeroed out BLS Signature.
 	DefaultPageSize           int           // DefaultPageSize defines the default page size for RPC server request.
 	MaxPeersToSync            int           // MaxPeersToSync describes the limit for number of peers in round robin sync.
+	SlotsPerArchivedPoint     uint64        // SlotsPerArchivedPoint defines the number of slots per one archived point.
 
 	// Slasher constants.
 	WeakSubjectivityPeriod    uint64 // WeakSubjectivityPeriod defines the time period expressed in number of epochs were proof of stake network should validate block headers and attestations for slashable events.
@@ -185,6 +186,7 @@ var defaultBeaconConfig = &BeaconChainConfig{
 	EmptySignature:            [96]byte{},
 	DefaultPageSize:           250,
 	MaxPeersToSync:            15,
+	SlotsPerArchivedPoint:     256,
 
 	// Slasher related values.
 	WeakSubjectivityPeriod:    54000,