diff --git a/bitcoincore/src/main/kotlin/io/horizontalsystems/bitcoincore/BitcoinCoreBuilder.kt b/bitcoincore/src/main/kotlin/io/horizontalsystems/bitcoincore/BitcoinCoreBuilder.kt
index 86b2aa2e..da4ee20c 100644
--- a/bitcoincore/src/main/kotlin/io/horizontalsystems/bitcoincore/BitcoinCoreBuilder.kt
+++ b/bitcoincore/src/main/kotlin/io/horizontalsystems/bitcoincore/BitcoinCoreBuilder.kt
@@ -491,7 +491,7 @@ class BitcoinCoreBuilder {
             val signer = TransactionSigner(ecdsaInputSigner, schnorrInputSigner)
             transactionCreator = TransactionCreator(transactionBuilder, pendingTransactionProcessor, transactionSenderInstance, signer, bloomFilterManager)
             replacementTransactionBuilder = ReplacementTransactionBuilder(
-                storage, transactionSizeCalculator, dustCalculator, metadataExtractor, pluginManager, unspentOutputProvider, publicKeyManager
+                storage, transactionSizeCalculator, dustCalculator, metadataExtractor, pluginManager, unspentOutputProvider, publicKeyManager, conflictsResolver
             )
         }
 
diff --git a/bitcoincore/src/main/kotlin/io/horizontalsystems/bitcoincore/models/TransactionInfo.kt b/bitcoincore/src/main/kotlin/io/horizontalsystems/bitcoincore/models/TransactionInfo.kt
index 91995532..6b4c014f 100644
--- a/bitcoincore/src/main/kotlin/io/horizontalsystems/bitcoincore/models/TransactionInfo.kt
+++ b/bitcoincore/src/main/kotlin/io/horizontalsystems/bitcoincore/models/TransactionInfo.kt
@@ -20,6 +20,9 @@ open class TransactionInfo {
     var conflictingTxHash: String? = null
     var rbfEnabled: Boolean = false
 
+    val replaceable: Boolean
+        get() = rbfEnabled && blockHeight == null && conflictingTxHash == null
+
     constructor(
         uid: String,
         transactionHash: String,
diff --git a/bitcoincore/src/main/kotlin/io/horizontalsystems/bitcoincore/rbf/ReplacementTransactionBuilder.kt b/bitcoincore/src/main/kotlin/io/horizontalsystems/bitcoincore/rbf/ReplacementTransactionBuilder.kt
index 34c7378c..4cca8a22 100644
--- a/bitcoincore/src/main/kotlin/io/horizontalsystems/bitcoincore/rbf/ReplacementTransactionBuilder.kt
+++ b/bitcoincore/src/main/kotlin/io/horizontalsystems/bitcoincore/rbf/ReplacementTransactionBuilder.kt
@@ -17,6 +17,7 @@ import io.horizontalsystems.bitcoincore.storage.FullTransactionInfo
 import io.horizontalsystems.bitcoincore.storage.InputToSign
 import io.horizontalsystems.bitcoincore.storage.InputWithPreviousOutput
 import io.horizontalsystems.bitcoincore.storage.UnspentOutput
+import io.horizontalsystems.bitcoincore.transactions.TransactionConflictsResolver
 import io.horizontalsystems.bitcoincore.transactions.TransactionSizeCalculator
 import io.horizontalsystems.bitcoincore.transactions.builder.MutableTransaction
 import io.horizontalsystems.bitcoincore.transactions.extractors.TransactionMetadataExtractor
@@ -31,6 +32,7 @@ class ReplacementTransactionBuilder(
     private val pluginManager: PluginManager,
     private val unspentOutputProvider: UnspentOutputProvider,
     private val publicKeyManager: IPublicKeyManager,
+    private val conflictsResolver: TransactionConflictsResolver
 ) {
 
     private fun replacementTransaction(
@@ -279,7 +281,13 @@ class ReplacementTransactionBuilder(
         val descendantTransactions = storage.getDescendantTransactionsFullInfo(transactionHash.toReversedByteArray())
         val absoluteFee = descendantTransactions.sumOf { it.metadata.fee ?: 0 }
 
-        check(descendantTransactions.all { it.header.conflictingTxHash == null }) { throw BuildError.InvalidTransaction("Already replaced") }
+        check(
+            descendantTransactions.all { it.header.conflictingTxHash == null } &&
+                    !conflictsResolver.isTransactionReplaced(originalFullInfo.fullTransaction)
+        ) {
+            throw BuildError.InvalidTransaction("Already replaced")
+        }
+
         check(absoluteFee <= minFee) { throw BuildError.FeeTooLow }
 
         val mutableTransaction = when (type) {
@@ -329,6 +337,13 @@ class ReplacementTransactionBuilder(
         val descendantTransactions = storage.getDescendantTransactionsFullInfo(transactionHash.toReversedByteArray())
         val absoluteFee = descendantTransactions.sumOf { it.metadata.fee ?: 0 }
 
+        check(
+            descendantTransactions.all { it.header.conflictingTxHash == null } &&
+                    !conflictsResolver.isTransactionReplaced(originalFullInfo.fullTransaction)
+        ) {
+            return null
+        }
+
         val replacementTxMinSize: Long
         val removableOutputsValue: Long
 
diff --git a/bitcoincore/src/main/kotlin/io/horizontalsystems/bitcoincore/storage/DataObjects.kt b/bitcoincore/src/main/kotlin/io/horizontalsystems/bitcoincore/storage/DataObjects.kt
index 7ed3ab62..2cb02b1b 100644
--- a/bitcoincore/src/main/kotlin/io/horizontalsystems/bitcoincore/storage/DataObjects.kt
+++ b/bitcoincore/src/main/kotlin/io/horizontalsystems/bitcoincore/storage/DataObjects.kt
@@ -104,8 +104,11 @@ class FullTransactionInfo(
 
     val rawTransaction: String
         get() {
-            val fullTransaction = FullTransaction(header, inputs.map { it.input }, outputs)
             return TransactionSerializer.serialize(fullTransaction).toHexString()
         }
+
+    val fullTransaction: FullTransaction
+        get() = FullTransaction(header, inputs.map { it.input }, outputs)
+
 }
 
diff --git a/bitcoincore/src/main/kotlin/io/horizontalsystems/bitcoincore/transactions/TransactionConflictsResolver.kt b/bitcoincore/src/main/kotlin/io/horizontalsystems/bitcoincore/transactions/TransactionConflictsResolver.kt
index 47b3279a..a3fce4ff 100644
--- a/bitcoincore/src/main/kotlin/io/horizontalsystems/bitcoincore/transactions/TransactionConflictsResolver.kt
+++ b/bitcoincore/src/main/kotlin/io/horizontalsystems/bitcoincore/transactions/TransactionConflictsResolver.kt
@@ -65,6 +65,20 @@ class TransactionConflictsResolver(private val storage: IStorage) {
         }
     }
 
+    // Checks if the transactions has a conflicting input with higher sequence
+    fun isTransactionReplaced(transaction: FullTransaction): Boolean {
+        val conflictingTransactions = getConflictingTransactionsForTransaction(transaction)
+
+        if (conflictingTransactions.isEmpty() || conflictingTransactions.any { it.blockHash == null }) {
+            return false
+        }
+
+        val conflictingFullTransactions = storage.getFullTransactions(conflictingTransactions)
+
+        return conflictingFullTransactions
+            .any { existingHasHigherSequence(mempoolTransaction = transaction, existingTransaction = it) }
+    }
+
     private fun getConflictingTransactionsForTransaction(transaction: FullTransaction): List<Transaction> {
         return transaction.inputs.mapNotNull { input ->
             val conflictingTxHash = storage.getTransactionInput(input.previousOutputTxHash, input.previousOutputIndex)?.transactionHash