diff --git a/core/thegraph/state.go b/core/thegraph/state.go
index 7a90cfd2c..b0f99fe54 100644
--- a/core/thegraph/state.go
+++ b/core/thegraph/state.go
@@ -133,7 +133,7 @@ func (ics *indexedChainState) GetIndexedOperatorState(ctx context.Context, block
 	aggKeys := make(map[uint8]*core.G1Point)
 	for _, apk := range aggregatePublicKeys {
 		if apk.Err != nil {
-			ics.logger.Warn("Error getting aggregate public key", "err", apk.Err)
+			ics.logger.Error("Error getting aggregate public key", "err", apk.Err)
 			continue
 		}
 		if apk.Err == nil && apk.AggregatePubk != nil {
diff --git a/disperser/batcher/encoding_streamer.go b/disperser/batcher/encoding_streamer.go
index a4b5c10e2..46f0ed794 100644
--- a/disperser/batcher/encoding_streamer.go
+++ b/disperser/batcher/encoding_streamer.go
@@ -565,6 +565,9 @@ func (e *EncodingStreamer) CreateMinibatch(ctx context.Context) (*batch, error)
 
 	state, err := e.getOperatorState(timeoutCtx, metadatas, e.ReferenceBlockNumber)
 	if err != nil {
+		for _, metadata := range metadatas {
+			_ = e.handleFailedMetadata(ctx, metadata)
+		}
 		return nil, err
 	}
 
@@ -576,6 +579,9 @@ func (e *EncodingStreamer) CreateMinibatch(ctx context.Context) (*batch, error)
 
 	_, err = batchHeader.SetBatchRoot(blobHeaders)
 	if err != nil {
+		for _, metadata := range metadatas {
+			_ = e.handleFailedMetadata(ctx, metadata)
+		}
 		return nil, err
 	}
 
@@ -717,6 +723,9 @@ func (e *EncodingStreamer) CreateBatch(ctx context.Context) (*batch, error) {
 
 	state, err := e.getOperatorState(timeoutCtx, metadatas, e.ReferenceBlockNumber)
 	if err != nil {
+		for _, metadata := range metadatas {
+			_ = e.handleFailedMetadata(ctx, metadata)
+		}
 		return nil, err
 	}
 
@@ -728,6 +737,9 @@ func (e *EncodingStreamer) CreateBatch(ctx context.Context) (*batch, error) {
 
 	tree, err := batchHeader.SetBatchRoot(blobHeaders)
 	if err != nil {
+		for _, metadata := range metadatas {
+			_ = e.handleFailedMetadata(ctx, metadata)
+		}
 		return nil, err
 	}
 
@@ -743,6 +755,15 @@ func (e *EncodingStreamer) CreateBatch(ctx context.Context) (*batch, error) {
 	}, nil
 }
 
+func (e *EncodingStreamer) handleFailedMetadata(ctx context.Context, metadata *disperser.BlobMetadata) error {
+	err := e.blobStore.MarkBlobProcessing(ctx, metadata.GetBlobKey())
+	if err != nil {
+		e.logger.Error("error marking blob as processing", "err", err)
+	}
+
+	return err
+}
+
 func (e *EncodingStreamer) transitionBlobToDispersing(ctx context.Context, metadata *disperser.BlobMetadata) error {
 	blobKey := metadata.GetBlobKey()
 	err := e.blobStore.MarkBlobDispersing(ctx, blobKey)