diff --git a/packages/core/src/modules/credentials/CredentialsApi.ts b/packages/core/src/modules/credentials/CredentialsApi.ts
index c2dc9ab29e..b60193bd2f 100644
--- a/packages/core/src/modules/credentials/CredentialsApi.ts
+++ b/packages/core/src/modules/credentials/CredentialsApi.ts
@@ -16,6 +16,7 @@ import type {
   SendCredentialProblemReportOptions,
   DeleteCredentialOptions,
   SendRevocationNotificationOptions,
+  DeclineCredentialOfferOptions,
 } from './CredentialsApiOptions'
 import type { CredentialProtocol } from './protocol/CredentialProtocol'
 import type { CredentialFormatsFromProtocols } from './protocol/CredentialProtocolOptions'
@@ -48,7 +49,7 @@ export interface CredentialsApi<CPs extends CredentialProtocol[]> {
   // Offer Credential Methods
   offerCredential(options: OfferCredentialOptions<CPs>): Promise<CredentialExchangeRecord>
   acceptOffer(options: AcceptCredentialOfferOptions<CPs>): Promise<CredentialExchangeRecord>
-  declineOffer(credentialRecordId: string): Promise<CredentialExchangeRecord>
+  declineOffer(credentialRecordId: string, options?: DeclineCredentialOfferOptions): Promise<CredentialExchangeRecord>
   negotiateOffer(options: NegotiateCredentialOfferOptions<CPs>): Promise<CredentialExchangeRecord>
 
   // Request Credential Methods
@@ -324,12 +325,22 @@ export class CredentialsApi<CPs extends CredentialProtocol[]> implements Credent
     return credentialRecord
   }
 
-  public async declineOffer(credentialRecordId: string): Promise<CredentialExchangeRecord> {
+  public async declineOffer(
+    credentialRecordId: string,
+    options?: DeclineCredentialOfferOptions
+  ): Promise<CredentialExchangeRecord> {
     const credentialRecord = await this.getById(credentialRecordId)
     credentialRecord.assertState(CredentialState.OfferReceived)
 
     // with version we can get the Service
     const protocol = this.getProtocol(credentialRecord.protocolVersion)
+    if (options?.sendProblemReport) {
+      await this.sendProblemReport({
+        credentialRecordId,
+        description: options.problemReportDescription ?? 'Offer declined',
+      })
+    }
+
     await protocol.updateState(this.agentContext, credentialRecord, CredentialState.Declined)
 
     return credentialRecord
@@ -532,29 +543,40 @@ export class CredentialsApi<CPs extends CredentialProtocol[]> implements Credent
   /**
    * Send problem report message for a credential record
    * @param credentialRecordId The id of the credential record for which to send problem report
-   * @param message message to send
    * @returns credential record associated with the credential problem report message
    */
   public async sendProblemReport(options: SendCredentialProblemReportOptions) {
     const credentialRecord = await this.getById(options.credentialRecordId)
-    if (!credentialRecord.connectionId) {
-      throw new CredoError(`No connectionId found for credential record '${credentialRecord.id}'.`)
-    }
-    const connectionRecord = await this.connectionService.getById(this.agentContext, credentialRecord.connectionId)
 
     const protocol = this.getProtocol(credentialRecord.protocolVersion)
-    const { message } = await protocol.createProblemReport(this.agentContext, {
+
+    const offerMessage = await protocol.findOfferMessage(this.agentContext, credentialRecord.id)
+
+    const { message: problemReport } = await protocol.createProblemReport(this.agentContext, {
       description: options.description,
       credentialRecord,
     })
-    message.setThread({
-      threadId: credentialRecord.threadId,
-      parentThreadId: credentialRecord.parentThreadId,
-    })
+
+    // Use connection if present
+    const connectionRecord = credentialRecord.connectionId
+      ? await this.connectionService.getById(this.agentContext, credentialRecord.connectionId)
+      : undefined
+    connectionRecord?.assertReady()
+
+    // If there's no connection (so connection-less, we require the state to be offer received)
+    if (!connectionRecord) {
+      credentialRecord.assertState(CredentialState.OfferReceived)
+
+      if (!offerMessage) {
+        throw new CredoError(`No offer message found for credential record with id '${credentialRecord.id}'`)
+      }
+    }
+
     const outboundMessageContext = await getOutboundMessageContext(this.agentContext, {
-      message,
-      associatedRecord: credentialRecord,
+      message: problemReport,
       connectionRecord,
+      associatedRecord: credentialRecord,
+      lastReceivedMessage: offerMessage ?? undefined,
     })
     await this.messageSender.sendMessage(outboundMessageContext)
 
diff --git a/packages/core/src/modules/credentials/CredentialsApiOptions.ts b/packages/core/src/modules/credentials/CredentialsApiOptions.ts
index 9f49b1ca98..a4cf6e82f2 100644
--- a/packages/core/src/modules/credentials/CredentialsApiOptions.ts
+++ b/packages/core/src/modules/credentials/CredentialsApiOptions.ts
@@ -139,3 +139,25 @@ export interface SendCredentialProblemReportOptions {
   credentialRecordId: string
   description: string
 }
+
+/**
+ * Interface for CredentialsApi.declineOffer. Decline a received credential offer and optionally send a problem-report message to Issuer.
+ */
+export interface DeclineCredentialOfferOptions {
+  // TODO: in next major release, move the id to this object as well
+  // for consistency with the proofs api
+  // credentialRecordId: string
+
+  /**
+   * Whether to send a problem-report message to the issuer as part
+   * of declining the credential offer
+   */
+  sendProblemReport?: boolean
+
+  /**
+   * Description to include in the problem-report message
+   * Only used if `sendProblemReport` is set to `true`.
+   * @default "Offer declined"
+   */
+  problemReportDescription?: string
+}
diff --git a/packages/core/src/modules/proofs/ProofsApi.ts b/packages/core/src/modules/proofs/ProofsApi.ts
index 20224a9ec7..a941bbc89e 100644
--- a/packages/core/src/modules/proofs/ProofsApi.ts
+++ b/packages/core/src/modules/proofs/ProofsApi.ts
@@ -323,7 +323,10 @@ export class ProofsApi<PPs extends ProofProtocol[]> implements ProofsApi<PPs> {
 
     const protocol = this.getProtocol(proofRecord.protocolVersion)
     if (options.sendProblemReport) {
-      await this.sendProblemReport({ proofRecordId: options.proofRecordId, description: 'Request declined' })
+      await this.sendProblemReport({
+        proofRecordId: options.proofRecordId,
+        description: options.problemReportDescription ?? 'Request declined',
+      })
     }
 
     await protocol.updateState(this.agentContext, proofRecord, ProofState.Declined)
diff --git a/packages/core/src/modules/proofs/ProofsApiOptions.ts b/packages/core/src/modules/proofs/ProofsApiOptions.ts
index 0e9911febc..70d4a83f68 100644
--- a/packages/core/src/modules/proofs/ProofsApiOptions.ts
+++ b/packages/core/src/modules/proofs/ProofsApiOptions.ts
@@ -179,5 +179,17 @@ export interface SendProofProblemReportOptions {
  */
 export interface DeclineProofRequestOptions {
   proofRecordId: string
+
+  /**
+   * Whether to send a problem-report message to the verifier as part
+   * of declining the proof request
+   */
   sendProblemReport?: boolean
+
+  /**
+   * Description to include in the problem-report message
+   * Only used if `sendProblemReport` is set to `true`.
+   * @default "Request declined"
+   */
+  problemReportDescription?: string
 }