diff --git a/CHANGELOG.md b/CHANGELOG.md
index ae762f4dd..17c52dbc3 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,7 +1,8 @@
 # Changelog
 
 ## 1.1.2
- * Remove 'failed to insert a metric' stalker warning [#849](https://github.com/membraneframework/membrane_core/pull/849)
+ * Add new callback `handle_child_terminated/3` along with new assertions. [#894](https://github.com/membraneframework/membrane_core/pull/894)
+ * Remove 'failed to insert a metric' stalker warning. [#849](https://github.com/membraneframework/membrane_core/pull/849)
 
 ## 1.1.1
  * Fix 'table identifier does not refer to an existing ETS table' error when inserting metrics into the observability ETS. [#835](https://github.com/membraneframework/membrane_core/pull/835)
diff --git a/lib/membrane/bin.ex b/lib/membrane/bin.ex
index 50bae12f9..eb3630ba0 100644
--- a/lib/membrane/bin.ex
+++ b/lib/membrane/bin.ex
@@ -201,6 +201,20 @@ defmodule Membrane.Bin do
               state
             ) :: callback_return
 
+  @doc """
+  Callback invoked after a child terminates.
+
+  Terminated child won't be present in the context of this callback. It is allowed to spawn a new
+  child with the same name.
+
+  By default, it does nothing.
+  """
+  @callback handle_child_terminated(
+              child :: Child.name(),
+              context :: CallbackContext.t(),
+              state
+            ) :: callback_return
+
   @doc """
   Callback invoked upon each timer tick. A timer can be started with `t:Membrane.Bin.Action.start_timer/0`
   action.
@@ -248,7 +262,8 @@ defmodule Membrane.Bin do
                       handle_tick: 3,
                       handle_crash_group_down: 3,
                       handle_terminate_request: 2,
-                      handle_child_pad_removed: 4
+                      handle_child_pad_removed: 4,
+                      handle_child_terminated: 3
 
   @doc PadsSpecs.def_pad_docs(:input, :bin)
   defmacro def_input_pad(name, spec) do
@@ -405,6 +420,9 @@ defmodule Membrane.Bin do
       @impl true
       def handle_terminate_request(_ctx, state), do: {[terminate: :normal], state}
 
+      @impl true
+      def handle_child_terminated(_child, _ctx, state), do: {[], state}
+
       defoverridable handle_init: 2,
                      handle_pad_added: 3,
                      handle_pad_removed: 3,
@@ -418,7 +436,8 @@ defmodule Membrane.Bin do
                      handle_child_notification: 4,
                      handle_parent_notification: 3,
                      handle_crash_group_down: 3,
-                     handle_terminate_request: 2
+                     handle_terminate_request: 2,
+                     handle_child_terminated: 3
     end
   end
 
diff --git a/lib/membrane/core/parent/child_life_controller.ex b/lib/membrane/core/parent/child_life_controller.ex
index dd585bf97..c9936ba8d 100644
--- a/lib/membrane/core/parent/child_life_controller.ex
+++ b/lib/membrane/core/parent/child_life_controller.ex
@@ -724,10 +724,14 @@ defmodule Membrane.Core.Parent.ChildLifeController do
         CrashGroupUtils.handle_crash_group_member_death(child_name, crash_group, reason, state)
         |> ChildrenModel.delete_child(child_name)
 
+      state = exec_handle_child_terminated(child_name, state)
+
       {:ok, state}
     else
       :error when reason == :normal ->
-        {:ok, ChildrenModel.delete_child(state, child_name)}
+        state = ChildrenModel.delete_child(state, child_name)
+        state = exec_handle_child_terminated(child_name, state)
+        {:ok, state}
 
       :error when reason == {:shutdown, :membrane_crash_group_kill} ->
         raise Membrane.PipelineError,
@@ -771,4 +775,14 @@ defmodule Membrane.Core.Parent.ChildLifeController do
     state = %{state | pending_specs: Map.merge(state.pending_specs, related_specs)}
     related_specs |> Map.keys() |> Enum.reduce(state, &proceed_spec_startup/2)
   end
+
+  defp exec_handle_child_terminated(child_name, state) do
+    CallbackHandler.exec_and_handle_callback(
+      :handle_child_terminated,
+      Component.action_handler(state),
+      %{context: &Component.context_from_state/1},
+      [child_name],
+      state
+    )
+  end
 end
diff --git a/lib/membrane/pipeline.ex b/lib/membrane/pipeline.ex
index 8d32a709d..2ae71cb7f 100644
--- a/lib/membrane/pipeline.ex
+++ b/lib/membrane/pipeline.ex
@@ -242,6 +242,20 @@ defmodule Membrane.Pipeline do
               state
             ) :: {[Action.common_actions()], state()}
 
+  @doc """
+  Callback invoked after a child terminates.
+
+  Terminated child won't be present in the context of this callback. It is allowed to spawn a new child
+  with the same name.
+
+  By default, it does nothing.
+  """
+  @callback handle_child_terminated(
+              child :: Child.name(),
+              context :: CallbackContext.t(),
+              state
+            ) :: callback_return
+
   @doc """
   Callback invoked upon each timer tick. A timer can be started with `Membrane.Pipeline.Action.start_timer`
   action.
@@ -291,7 +305,8 @@ defmodule Membrane.Pipeline do
                       handle_crash_group_down: 3,
                       handle_call: 3,
                       handle_terminate_request: 2,
-                      handle_child_pad_removed: 4
+                      handle_child_pad_removed: 4,
+                      handle_child_terminated: 3
 
   @doc """
   Starts the pipeline based on the given module and links it to the current process.
@@ -542,6 +557,9 @@ defmodule Membrane.Pipeline do
       @impl true
       def handle_child_setup_completed(_child, _ctx, state), do: {[], state}
 
+      @impl true
+      def handle_child_terminated(_child, _ctx, state), do: {[], state}
+
       @impl true
       def handle_child_playing(_child, _ctx, state), do: {[], state}
 
@@ -575,7 +593,8 @@ defmodule Membrane.Pipeline do
                      handle_child_notification: 4,
                      handle_crash_group_down: 3,
                      handle_call: 3,
-                     handle_terminate_request: 2
+                     handle_terminate_request: 2,
+                     handle_child_terminated: 3
     end
   end
 end
diff --git a/lib/membrane/testing/assertions.ex b/lib/membrane/testing/assertions.ex
index 496f2bf0f..4acd4ec17 100644
--- a/lib/membrane/testing/assertions.ex
+++ b/lib/membrane/testing/assertions.ex
@@ -143,7 +143,7 @@ defmodule Membrane.Testing.Assertions do
   end
 
   @doc """
-  Refutes that a crash group within pipeline won't be down within the `timeout` period specified in
+  Asserts that a crash group within pipeline won't be down within the `timeout` period specified in
   milliseconds.
 
   Usage example:
@@ -541,4 +541,57 @@ defmodule Membrane.Testing.Assertions do
       timeout
     )
   end
+
+  [:child_setup_completed, :child_playing, :child_terminated]
+  |> Enum.map(fn action ->
+    callback = :"handle_#{action}"
+    assertion = :"assert_#{action}"
+    refution = :"refute_#{action}"
+
+    @doc """
+    Asserts that `Membrane.Testing.Pipeline` executed or will execute callback `#{callback}/3`
+    for a specific child within the `timeout` period specified in milliseconds.
+    """
+    defmacro unquote(assertion)(pipeline, child, timeout \\ @default_timeout) do
+      callback = unquote(callback)
+
+      quote do
+        child_name_value = unquote(child)
+
+        unquote(
+          assert_receive_from_pipeline(
+            pipeline,
+            {callback,
+             quote do
+               ^child_name_value
+             end},
+            timeout
+          )
+        )
+      end
+    end
+
+    @doc """
+    Asserts that `Membrane.Testing.Pipeline` won't execute callback `#{callback}/3` for
+    a specific child within the `timeout` period specified in milliseconds.
+    """
+    defmacro unquote(refution)(pipeline, child, timeout \\ @default_timeout) do
+      callback = unquote(callback)
+
+      quote do
+        child_name_value = unquote(child)
+
+        unquote(
+          refute_receive_from_pipeline(
+            pipeline,
+            {callback,
+             quote do
+               ^child_name_value
+             end},
+            timeout
+          )
+        )
+      end
+    end
+  end)
 end
diff --git a/lib/membrane/testing/pipeline.ex b/lib/membrane/testing/pipeline.ex
index e74793d9c..1b25dd4c9 100644
--- a/lib/membrane/testing/pipeline.ex
+++ b/lib/membrane/testing/pipeline.ex
@@ -408,7 +408,11 @@ defmodule Membrane.Testing.Pipeline do
     {custom_actions, Map.put(state, :custom_pipeline_state, custom_state)}
   end
 
-  [:handle_child_setup_completed, :handle_child_playing]
+  [
+    :handle_child_setup_completed,
+    :handle_child_playing,
+    :handle_child_terminated
+  ]
   |> Enum.map(fn callback ->
     @impl true
     def unquote(callback)(child, ctx, %State{} = state) do
@@ -419,6 +423,8 @@ defmodule Membrane.Testing.Pipeline do
           state
         )
 
+      :ok = notify_test_process(state.test_process, {unquote(callback), child})
+
       {custom_actions, Map.put(state, :custom_pipeline_state, custom_state)}
     end
   end)
diff --git a/mix.exs b/mix.exs
index b266feecd..c1fab8be5 100644
--- a/mix.exs
+++ b/mix.exs
@@ -1,7 +1,7 @@
 defmodule Membrane.Mixfile do
   use Mix.Project
 
-  @version "1.1.1"
+  @version "1.1.2"
   @source_ref "v#{@version}"
 
   def project do
diff --git a/test/membrane/integration/callbacks_test.exs b/test/membrane/integration/callbacks_test.exs
new file mode 100644
index 000000000..bb6a14a35
--- /dev/null
+++ b/test/membrane/integration/callbacks_test.exs
@@ -0,0 +1,39 @@
+defmodule Membrane.Integration.CallbacksTest do
+  use ExUnit.Case, async: true
+
+  import Membrane.Testing.Assertions
+  import Membrane.ChildrenSpec
+
+  alias Membrane.Testing
+
+  defmodule PadlessElement do
+    use Membrane.Endpoint
+  end
+
+  defmodule PadlessElementPipeline do
+    use Membrane.Pipeline
+    alias Membrane.Integration.CallbacksTest.PadlessElement
+
+    @impl true
+    def handle_child_terminated(child_name, ctx, state) do
+      assert not is_map_key(ctx.children, child_name)
+      {[spec: child(child_name, PadlessElement)], state}
+    end
+  end
+
+  test "handle_child_terminated" do
+    pipeline = Testing.Pipeline.start_link_supervised!(module: PadlessElementPipeline)
+
+    Testing.Pipeline.execute_actions(pipeline, spec: child(:element, PadlessElement))
+    first_pid = Testing.Pipeline.get_child_pid!(pipeline, :element)
+    refute_child_terminated(pipeline, :element, 500)
+
+    Testing.Pipeline.execute_actions(pipeline, remove_children: :element)
+    assert_child_terminated(pipeline, :element)
+    second_pid = Testing.Pipeline.get_child_pid!(pipeline, :element)
+
+    assert first_pid != second_pid
+
+    Testing.Pipeline.terminate(pipeline)
+  end
+end
diff --git a/test/membrane/integration/defer_setup_test.exs b/test/membrane/integration/defer_setup_test.exs
index f058cb013..cc6d1a206 100644
--- a/test/membrane/integration/defer_setup_test.exs
+++ b/test/membrane/integration/defer_setup_test.exs
@@ -112,7 +112,7 @@ defmodule Membrane.Integration.DeferSetupTest do
       assert_child_playing(pipeline, bin)
     end
 
-    assert_grandhild_playing(pipeline, :bin_1, :bin_a)
+    assert_grandchild_playing(pipeline, :bin_1, :bin_a)
 
     for bin <- [:bin_b, :bin_c] do
       refute_grandchild_playing(pipeline, :bin_1, bin)
@@ -127,7 +127,7 @@ defmodule Membrane.Integration.DeferSetupTest do
     complete_grandchild_setup(pipeline, :bin_1, :bin_c)
 
     for bin <- [:bin_b, :bin_c] do
-      assert_grandhild_playing(pipeline, :bin_1, bin)
+      assert_grandchild_playing(pipeline, :bin_1, bin)
     end
 
     monitor_ref = Process.monitor(pipeline)
@@ -145,18 +145,10 @@ defmodule Membrane.Integration.DeferSetupTest do
     Pipeline.execute_actions(pipeline, notify_child: {child, {:complete_setup, grandchild}})
   end
 
-  defp assert_child_playing(pipeline, child) do
-    assert_pipeline_notified(pipeline, child, :handle_playing)
-  end
-
-  defp assert_grandhild_playing(pipeline, child, grandchild) do
+  defp assert_grandchild_playing(pipeline, child, grandchild) do
     assert_pipeline_notified(pipeline, child, {^grandchild, :handle_playing})
   end
 
-  defp refute_child_playing(pipeline, child) do
-    refute_pipeline_notified(pipeline, child, :handle_playing)
-  end
-
   defp refute_grandchild_playing(pipeline, child, grandchild) do
     refute_pipeline_notified(pipeline, child, {^grandchild, :handle_playing})
   end