diff --git a/core/transaction_pool.go b/core/transaction_pool.go
index 462159fa7..27dc1b0d1 100644
--- a/core/transaction_pool.go
+++ b/core/transaction_pool.go
@@ -68,31 +68,37 @@ func (pool *TxPool) Start() {
 	pool.events = pool.eventMux.Subscribe(ChainEvent{})
 	for _ = range pool.events.Chan() {
 		pool.mu.Lock()
-		pool.state = state.ManageState(pool.currentState())
 
-		// validate the pool of pending transactions, this will remove
-		// any transactions that have been included in the block or
-		// have been invalidated because of another transaction (e.g.
-		// higher gas price)
-		pool.validatePool()
+		pool.resetState()
 
-		// Loop over the pending transactions and base the nonce of the new
-		// pending transaction set.
-		for _, tx := range pool.pending {
-			if addr, err := tx.From(); err == nil {
-				// Set the nonce. Transaction nonce can never be lower
-				// than the state nonce; validatePool took care of that.
-				pool.state.SetNonce(addr, tx.Nonce())
-			}
-		}
-
-		// Check the queue and move transactions over to the pending if possible
-		// or remove those that have become invalid
-		pool.checkQueue()
 		pool.mu.Unlock()
 	}
 }
 
+func (pool *TxPool) resetState() {
+	pool.state = state.ManageState(pool.currentState())
+
+	// validate the pool of pending transactions, this will remove
+	// any transactions that have been included in the block or
+	// have been invalidated because of another transaction (e.g.
+	// higher gas price)
+	pool.validatePool()
+
+	// Loop over the pending transactions and base the nonce of the new
+	// pending transaction set.
+	for _, tx := range pool.pending {
+		if addr, err := tx.From(); err == nil {
+			// Set the nonce. Transaction nonce can never be lower
+			// than the state nonce; validatePool took care of that.
+			pool.state.SetNonce(addr, tx.Nonce())
+		}
+	}
+
+	// Check the queue and move transactions over to the pending if possible
+	// or remove those that have become invalid
+	pool.checkQueue()
+}
+
 func (pool *TxPool) Stop() {
 	pool.pending = make(map[common.Hash]*types.Transaction)
 	close(pool.quit)
diff --git a/core/transaction_pool_test.go b/core/transaction_pool_test.go
index bbd5ddad4..ac297d266 100644
--- a/core/transaction_pool_test.go
+++ b/core/transaction_pool_test.go
@@ -152,3 +152,52 @@ func TestNegativeValue(t *testing.T) {
 		t.Error("expected", ErrNegativeValue, "got", err)
 	}
 }
+
+func TestTransactionChainFork(t *testing.T) {
+	pool, key := setupTxPool()
+	addr := crypto.PubkeyToAddress(key.PublicKey)
+	pool.currentState().AddBalance(addr, big.NewInt(100000000000000))
+	tx := transaction()
+	tx.GasLimit = big.NewInt(100000)
+	tx.SignECDSA(key)
+
+	err := pool.add(tx)
+	if err != nil {
+		t.Error("didn't expect error", err)
+	}
+	pool.RemoveTransactions([]*types.Transaction{tx})
+
+	// reset the pool's internal state
+	pool.resetState()
+	err = pool.add(tx)
+	if err != nil {
+		t.Error("didn't expect error", err)
+	}
+}
+
+func TestTransactionDoubleNonce(t *testing.T) {
+	pool, key := setupTxPool()
+	addr := crypto.PubkeyToAddress(key.PublicKey)
+	pool.currentState().AddBalance(addr, big.NewInt(100000000000000))
+	tx := transaction()
+	tx.GasLimit = big.NewInt(100000)
+	tx.SignECDSA(key)
+
+	err := pool.add(tx)
+	if err != nil {
+		t.Error("didn't expect error", err)
+	}
+
+	tx2 := transaction()
+	tx2.GasLimit = big.NewInt(1000000)
+	tx2.SignECDSA(key)
+
+	err = pool.add(tx2)
+	if err != nil {
+		t.Error("didn't expect error", err)
+	}
+
+	if len(pool.pending) != 2 {
+		t.Error("expected 2 pending txs. Got", len(pool.pending))
+	}
+}