Methods and systems are provided for controlling fueling and mitigating knock in internal combustion engines, such as multi-fuel engines. In one example, a method may include monitoring a frequency of knock events corresponding to one or more engine cylinders, and dynamically increasing a substitution ratio while the frequency of knock events is less than a maximum action threshold. In some examples, the method may further include actively adjusting one or more engine operating conditions to decrease the substitution ratio responsive to a severity of knocking in the one or more engine cylinders being greater than or equal to a threshold severity.