diff --git a/packages/txm/lib/NonceManager.ts b/packages/txm/lib/NonceManager.ts
index 861986f2b7..c381a87bbf 100644
--- a/packages/txm/lib/NonceManager.ts
+++ b/packages/txm/lib/NonceManager.ts
@@ -28,12 +28,14 @@ import type { TransactionManager } from "./TransactionManager"
 export class NonceManager {
     private txmgr: TransactionManager
     private nonce!: number
-
     private returnedNonceQueue!: number[]
 
+    maxExecutedNonce: number
+
     constructor(_transactionManager: TransactionManager) {
         this.txmgr = _transactionManager
         this.returnedNonceQueue = []
+        this.maxExecutedNonce = 0
     }
 
     public async start() {
@@ -41,9 +43,10 @@ export class NonceManager {
 
         const blockchainNonce = await this.txmgr.viemClient.getTransactionCount({
             address: address,
-            blockTag: "pending",
         })
 
+        this.maxExecutedNonce = blockchainNonce
+
         const highestDbNonce = this.txmgr.transactionRepository.getHighestNonce()
 
         if (!highestDbNonce || highestDbNonce < blockchainNonce) {
@@ -77,4 +80,14 @@ export class NonceManager {
             this.returnedNonceQueue.splice(index, 0, nonce)
         }
     }
+
+    public async resync() {
+        const address = this.txmgr.viemWallet.account.address
+
+        const blockchainNonce = await this.txmgr.viemClient.getTransactionCount({
+            address: address,
+        })
+
+        this.maxExecutedNonce = blockchainNonce
+    }
 }
diff --git a/packages/txm/lib/Transaction.ts b/packages/txm/lib/Transaction.ts
index b90384d40a..0dda4ea2c6 100644
--- a/packages/txm/lib/Transaction.ts
+++ b/packages/txm/lib/Transaction.ts
@@ -26,6 +26,11 @@ export enum TransactionStatus {
      * The transaction has expired, and we cancelled it to save gas, preventing it from being included on-chain and potentially reverting or executing actions that are no longer relevant.
      */
     Cancelled = "Cancelled",
+    /**
+     * The transaction's inclusion was interrupted because an external transaction using the same nonce was processed.
+     * To retry including this transaction, it must be resubmitted by a {@link TransactionOriginator}.
+     */
+    Interrupted = "Interrupted",
     /**
      * The transaction has been included onchain and its execution was successful.
      */
diff --git a/packages/txm/lib/TransactionCollector.ts b/packages/txm/lib/TransactionCollector.ts
index 917e502224..22e75d52a8 100644
--- a/packages/txm/lib/TransactionCollector.ts
+++ b/packages/txm/lib/TransactionCollector.ts
@@ -1,7 +1,7 @@
 import { LogTag, Logger } from "@happy.tech/common"
 import type { LatestBlock } from "./BlockMonitor.js"
 import { Topics, eventBus } from "./EventBus.js"
-import { AttemptType } from "./Transaction.js"
+import { AttemptType, TransactionStatus } from "./Transaction.js"
 import type { TransactionManager } from "./TransactionManager.js"
 
 /**
@@ -45,6 +45,10 @@ export class TransactionCollector {
             transactionsBatch.map(async (transaction) => {
                 const nonce = this.txmgr.nonceManager.requestNonce()
 
+                if (transaction.status === TransactionStatus.Interrupted) {
+                    transaction.changeStatus(TransactionStatus.Pending)
+                }
+
                 const submissionResult = await this.txmgr.transactionSubmitter.attemptSubmission(transaction, {
                     type: AttemptType.Original,
                     nonce,
diff --git a/packages/txm/lib/TransactionSubmitter.ts b/packages/txm/lib/TransactionSubmitter.ts
index a8e27232b4..69a9357b41 100644
--- a/packages/txm/lib/TransactionSubmitter.ts
+++ b/packages/txm/lib/TransactionSubmitter.ts
@@ -2,7 +2,7 @@ import { LogTag } from "@happy.tech/common"
 import { Logger } from "@happy.tech/common"
 import { type Result, err, ok } from "neverthrow"
 import type { Hash, Hex, TransactionRequestEIP1559 } from "viem"
-import { encodeFunctionData, keccak256 } from "viem"
+import { TransactionRejectedRpcError, encodeFunctionData, keccak256 } from "viem"
 import type { EstimateGasErrorCause } from "./GasEstimator.js"
 import { type Attempt, AttemptType, type Transaction } from "./Transaction.js"
 import type { TransactionManager } from "./TransactionManager.js"
@@ -150,6 +150,12 @@ export class TransactionSubmitter {
         })
 
         if (sendRawTransactionResult.isErr()) {
+            if (
+                sendRawTransactionResult.error instanceof TransactionRejectedRpcError &&
+                sendRawTransactionResult.error.message.includes("nonce too low")
+            ) {
+                this.txmgr.nonceManager.resync()
+            }
             return err({
                 cause: AttemptSubmissionErrorCause.FailedToSendRawTransaction,
                 description: `Failed to send raw transaction ${transaction.intentId}. Details: ${sendRawTransactionResult.error}`,
diff --git a/packages/txm/lib/TxMonitor.ts b/packages/txm/lib/TxMonitor.ts
index 7bd78ad8cd..f2a1b4d6ab 100644
--- a/packages/txm/lib/TxMonitor.ts
+++ b/packages/txm/lib/TxMonitor.ts
@@ -120,6 +120,18 @@ export class TxMonitor {
                     return
                 }
 
+                const nonce = transaction.lastAttempt?.nonce
+
+                if (nonce === undefined) {
+                    console.error(`Transaction ${transaction.intentId} inconsistent state: no nonce found`)
+                    return
+                }
+
+                if (nonce <= this.transactionManager.nonceManager.maxExecutedNonce) {
+                    transaction.changeStatus(TransactionStatus.Interrupted)
+                    return
+                }
+
                 return await (transaction.isExpired(block, this.transactionManager.blockTime)
                     ? this.handleExpiredTransaction(transaction)
                     : this.handleStuckTransaction(transaction))