diff --git a/storage-node/CHANGELOG.md b/storage-node/CHANGELOG.md
index 9399b87175..ea3bb122c0 100644
--- a/storage-node/CHANGELOG.md
+++ b/storage-node/CHANGELOG.md
@@ -1,6 +1,7 @@
 ### 3.3.0
 
 - Added customization options for Elasticsearch logging. Users can now specify index name and auth options.
+- **FIX** [#4773](https://github.com/Joystream/joystream/issues/4773) Cleanup temporary files created when upload fails.
 
 ### 3.2.0
 
diff --git a/storage-node/src/services/multer-storage/disk.ts b/storage-node/src/services/multer-storage/disk.ts
new file mode 100644
index 0000000000..16c3d215e8
--- /dev/null
+++ b/storage-node/src/services/multer-storage/disk.ts
@@ -0,0 +1,112 @@
+import fs from 'fs'
+import os from 'os'
+import path from 'path'
+import crypto from 'crypto'
+import mkdirp from 'mkdirp'
+import { Request } from 'express'
+import { DiskStorageOptions, StorageEngine } from 'multer'
+
+function getFilename(
+  req: Request,
+  file: Express.Multer.File,
+  cb: (err: Error | null, filename: string | undefined) => void
+) {
+  crypto.randomBytes(16, function (err, raw) {
+    cb(err, err ? undefined : raw.toString('hex'))
+  })
+}
+
+function getDestination(req: Request, file: Express.Multer.File, cb: (err: Error | null, bytes: string) => void) {
+  cb(null, os.tmpdir())
+}
+
+class DiskStorage implements StorageEngine {
+  protected getFilename
+  protected getDestination: (
+    req: Request,
+    file: Express.Multer.File,
+    cb: (err: Error | null, bytes: string) => void
+  ) => void
+
+  constructor(opts: DiskStorageOptions) {
+    this.getFilename = opts.filename || getFilename
+
+    if (typeof opts.destination === 'string') {
+      const { destination } = opts
+      mkdirp.sync(destination)
+      this.getDestination = function ($0, $1, cb) {
+        cb(null, destination)
+      }
+    } else {
+      this.getDestination = opts.destination || getDestination
+    }
+  }
+
+  // eslint-disable-next-line
+  public _handleFile(
+    req: Request,
+    file: Express.Multer.File,
+    cb: (error?: any, info?: Partial<Express.Multer.File>) => void
+  ) {
+    // handle edge case where the request has been aborted before
+    // _handleFile is invoked and we cannot catch it anymore.
+    if (req.aborted) {
+      return cb(new Error('Upload aborted early'))
+    }
+
+    // eslint-disable-next-line
+    const that = this
+
+    that.getDestination(req, file, function (err, destination) {
+      if (err) return cb(err)
+
+      that.getFilename(req, file, function (err, filename) {
+        if (err) return cb(err)
+        if (!filename) return cb(new Error('Blank filename'))
+
+        const finalPath = path.join(destination, filename)
+        const outStream = fs.createWriteStream(finalPath)
+        file.stream.pipe(outStream)
+        outStream.on('error', (err) => {
+          // remove temp file on failure to write
+          fs.unlink(finalPath, () => cb(err))
+        })
+        let aborted = false
+        outStream.on('finish', function () {
+          // avoid invoking callback multiple times, also the middleware
+          if (aborted) return
+          cb(null, {
+            destination: destination,
+            filename: filename,
+            path: finalPath,
+            size: outStream.bytesWritten,
+          })
+        })
+        // Remove temp file on request aborted - due to timeout or reverse-proxy
+        // terminating request because of its own policy such as max size of request
+        req.on('aborted', function () {
+          aborted = true
+          outStream.close() // will trigger 'finish' event on outStream
+          fs.unlink(finalPath, () => cb(new Error('Upload aborted')))
+        })
+      })
+    })
+  }
+
+  // removeFile is not called on latest handled file if _handleFile callback is passed
+  // and error. It will only apply to the previously uploaded files in the request
+  // eslint-disable-next-line
+  _removeFile(req: Request, file: Express.Multer.File, cb: (error: Error | null) => void) {
+    const path = file.path
+
+    file.destination = ''
+    file.filename = ''
+    file.path = ''
+
+    fs.unlink(path, cb)
+  }
+}
+
+export function diskStorage(opts: DiskStorageOptions): StorageEngine {
+  return new DiskStorage(opts)
+}
diff --git a/storage-node/src/services/webApi/app.ts b/storage-node/src/services/webApi/app.ts
index e349f50e6c..e4d261b6ec 100644
--- a/storage-node/src/services/webApi/app.ts
+++ b/storage-node/src/services/webApi/app.ts
@@ -19,6 +19,7 @@ import {
 import { parseBagId } from '../helpers/bagTypes'
 import BN from 'bn.js'
 import { UploadFileQueryParams, UploadToken } from './types'
+import { diskStorage } from '../multer-storage/disk'
 
 /**
  * Creates Express web application. Uses the OAS spec file for the API.
@@ -43,6 +44,16 @@ export async function createApp(config: AppConfig): Promise<Express> {
       next()
     },
 
+    // Catch aborted requests event early, before we get a chance to handle
+    // it in multer middleware. This is an edge case which happens when only
+    // a small amount of data is transferred, before multer starts parsing.
+    (req: express.Request, res: express.Response<unknown, AppConfig>, next: NextFunction) => {
+      if (req.path === '/api/v1/files') {
+        req.on('aborted', () => (req.aborted = true))
+      }
+      next()
+    },
+
     // Pre validate file upload params
     (req: express.Request, res: express.Response<unknown, AppConfig>, next: NextFunction) => {
       if (req.path === '/api/v1/files') {
@@ -65,7 +76,9 @@ export async function createApp(config: AppConfig): Promise<Express> {
         resolver: OpenApiValidator.resolvers.modulePathResolver,
       },
       fileUploader: {
-        dest: config.tempFileUploadingDir,
+        storage: diskStorage({
+          destination: config.tempFileUploadingDir,
+        }),
         // Busboy library settings
         limits: {
           // For multipart forms, the max number of file fields (Default: Infinity)