diff --git a/nimbus/p2p/executor.nim b/nimbus/p2p/executor.nim
index d2bea1102..c38cee179 100644
--- a/nimbus/p2p/executor.nim
+++ b/nimbus/p2p/executor.nim
@@ -140,6 +140,17 @@ proc makeReceipt(vmState: BaseVMState, cumulativeGasUsed: GasInt, fork = FkFront
   result.logs = vmState.getAndClearLogEntries()
   result.bloom = logsBloom(result.logs).value.toByteArrayBE
 
+proc prepareVMState(vmState: BaseVMState, header: BlockHeader) =
+  # TODO: move this proc to somewhere else if it already complete
+
+  # blockNumber returned from VM should be current block number
+  # and not something else
+  vmState.blockHeader.blockNumber = header.blockNumber
+
+  # time stamp?
+  # gas limit?
+  # etc?
+
 proc processBlock*(chainDB: BaseChainDB, head, header: BlockHeader, body: BlockBody, vmState: BaseVMState): ValidationResult =
   let blockReward = 5.u256 * pow(10.u256, 18) # 5 ETH
 
@@ -147,6 +158,8 @@ proc processBlock*(chainDB: BaseChainDB, head, header: BlockHeader, body: BlockB
     debug "Mismatched txRoot", blockNumber=header.blockNumber
     return ValidationResult.Error
 
+  prepareVMState(vmState, header)
+
   var stateDb = vmState.accountDb
   if header.txRoot != BLANK_ROOT_HASH:
     if body.transactions.len == 0:
diff --git a/nimbus/vm_state.nim b/nimbus/vm_state.nim
index e8b6e235d..006f1d62a 100644
--- a/nimbus/vm_state.nim
+++ b/nimbus/vm_state.nim
@@ -51,7 +51,7 @@ method timestamp*(vmState: BaseVMState): EthTime {.base, gcsafe.} =
 method blockNumber*(vmState: BaseVMState): BlockNumber {.base, gcsafe.} =
   # it should return current block number
   # and not head.blockNumber
-  vmState.blockHeader.blockNumber + 1
+  vmState.blockHeader.blockNumber
 
 method difficulty*(vmState: BaseVMState): UInt256 {.base, gcsafe.} =
   vmState.blockHeader.difficulty