diff --git a/node/consensus/src/lib.rs b/node/consensus/src/lib.rs
index 52aa75a626..30bc32c7e6 100644
--- a/node/consensus/src/lib.rs
+++ b/node/consensus/src/lib.rs
@@ -53,6 +53,32 @@ use tokio::{
     task::JoinHandle,
 };
 
+/// Percentage of mempool transactions capacity reserved for deployments.
+const CAPACITY_FOR_DEPLOYMENTS: usize = 20;
+/// Percentage of mempool transactions capacity reserved for executions.
+const CAPACITY_FOR_EXECUTIONS: usize = 80;
+
+/// Helper struct to track incoming transactions.
+struct TransactionsQueue<N: Network> {
+    pub deployments: LruCache<N::TransactionID, Transaction<N>>,
+    pub executions: LruCache<N::TransactionID, Transaction<N>>,
+}
+
+impl<N: Network> Default for TransactionsQueue<N> {
+    fn default() -> Self {
+        Self {
+            deployments: LruCache::new(
+                NonZeroUsize::new(BatchHeader::<N>::MAX_TRANSMISSIONS_PER_BATCH * CAPACITY_FOR_DEPLOYMENTS / 100)
+                    .unwrap(),
+            ),
+            executions: LruCache::new(
+                NonZeroUsize::new(BatchHeader::<N>::MAX_TRANSMISSIONS_PER_BATCH * CAPACITY_FOR_EXECUTIONS / 100)
+                    .unwrap(),
+            ),
+        }
+    }
+}
+
 #[derive(Clone)]
 pub struct Consensus<N: Network> {
     /// The ledger.
@@ -64,7 +90,7 @@ pub struct Consensus<N: Network> {
     /// The unconfirmed solutions queue.
     solutions_queue: Arc<Mutex<LruCache<PuzzleCommitment<N>, ProverSolution<N>>>>,
     /// The unconfirmed transactions queue.
-    transactions_queue: Arc<Mutex<LruCache<N::TransactionID, Transaction<N>>>>,
+    transactions_queue: Arc<Mutex<TransactionsQueue<N>>>,
     /// The recently-seen unconfirmed solutions.
     seen_solutions: Arc<Mutex<LruCache<PuzzleCommitment<N>, ()>>>,
     /// The recently-seen unconfirmed transactions.
@@ -101,9 +127,7 @@ impl<N: Network> Consensus<N> {
             solutions_queue: Arc::new(Mutex::new(LruCache::new(
                 NonZeroUsize::new(BatchHeader::<N>::MAX_TRANSMISSIONS_PER_BATCH).unwrap(),
             ))),
-            transactions_queue: Arc::new(Mutex::new(LruCache::new(
-                NonZeroUsize::new(BatchHeader::<N>::MAX_TRANSMISSIONS_PER_BATCH).unwrap(),
-            ))),
+            transactions_queue: Default::default(),
             seen_solutions: Arc::new(Mutex::new(LruCache::new(NonZeroUsize::new(1 << 16).unwrap()))),
             seen_transactions: Arc::new(Mutex::new(LruCache::new(NonZeroUsize::new(1 << 16).unwrap()))),
             handles: Default::default(),
@@ -260,7 +284,11 @@ impl<N: Network> Consensus<N> {
             }
             // Add the transaction to the memory pool.
             trace!("Received unconfirmed transaction '{}' in the queue", fmt_id(transaction_id));
-            if self.transactions_queue.lock().put(transaction_id, transaction).is_some() {
+            if transaction.is_deploy() {
+                if self.transactions_queue.lock().deployments.put(transaction_id, transaction).is_some() {
+                    bail!("Transaction '{}' exists in the memory pool", fmt_id(transaction_id));
+                }
+            } else if self.transactions_queue.lock().executions.put(transaction_id, transaction).is_some() {
                 bail!("Transaction '{}' exists in the memory pool", fmt_id(transaction_id));
             }
         }
@@ -274,14 +302,25 @@ impl<N: Network> Consensus<N> {
         let transactions = {
             // Determine the available capacity.
             let capacity = BatchHeader::<N>::MAX_TRANSMISSIONS_PER_BATCH.saturating_sub(num_unconfirmed);
-            // Acquire the lock on the queue.
-            let mut queue = self.transactions_queue.lock();
-            // Determine the number of transactions to send.
-            let num_transactions = queue.len().min(capacity);
-            // Drain the solutions from the queue.
-            (0..num_transactions)
-                .filter_map(|_| queue.pop_lru().map(|(_, transaction)| transaction))
-                .collect::<Vec<_>>()
+            // Acquire the lock on the transactions queue.
+            let mut tx_queue = self.transactions_queue.lock();
+            // Determine the number of deployments to send.
+            let num_deployments = tx_queue.deployments.len().min(capacity * CAPACITY_FOR_DEPLOYMENTS / 100);
+            // Determine the number of executions to send.
+            let num_executions = tx_queue.executions.len().min(capacity.saturating_sub(num_deployments));
+            // Create an iterator which will select interleaved deployments and executions within the capacity.
+            // Note: interleaving ensures we will never have consecutive invalid deployments blocking the queue.
+            let selector_iter = (0..num_deployments).map(|_| true).interleave((0..num_executions).map(|_| false));
+            // Drain the transactions from the queue, interleaving deployments and executions.
+            selector_iter
+                .filter_map(|select_deployment| {
+                    if select_deployment {
+                        tx_queue.deployments.pop_lru().map(|(_, tx)| tx)
+                    } else {
+                        tx_queue.executions.pop_lru().map(|(_, tx)| tx)
+                    }
+                })
+                .collect_vec()
         };
         // Iterate over the transactions.
         for transaction in transactions.into_iter() {