diff --git a/base_layer/wallet/src/transaction_service/service.rs b/base_layer/wallet/src/transaction_service/service.rs
index b5266b2008..84e0fe4484 100644
--- a/base_layer/wallet/src/transaction_service/service.rs
+++ b/base_layer/wallet/src/transaction_service/service.rs
@@ -1245,14 +1245,16 @@ where
             );
 
             // Check if this transaction has already been received and cancelled.
-            if let Ok(inbound_tx) = self.db.get_cancelled_pending_inbound_transaction(data.tx_id).await {
-                if inbound_tx.source_public_key != source_pubkey {
+            if let Ok(Some(any_tx)) = self.db.get_any_cancelled_transaction(data.tx_id).await {
+                let tx = CompletedTransaction::from(any_tx);
+
+                if tx.source_public_key != source_pubkey {
                     return Err(TransactionServiceError::InvalidSourcePublicKey);
                 }
                 trace!(
                     target: LOG_TARGET,
-                    "A repeated Transaction (TxId: {}) has been received but has been previously cancelled",
-                    inbound_tx.tx_id
+                    "A repeated Transaction (TxId: {}) has been received but has been previously cancelled or rejected",
+                    tx.tx_id
                 );
                 return Ok(());
             }
diff --git a/base_layer/wallet/src/transaction_service/storage/database.rs b/base_layer/wallet/src/transaction_service/storage/database.rs
index 556d14ec52..b8ab7a7a65 100644
--- a/base_layer/wallet/src/transaction_service/storage/database.rs
+++ b/base_layer/wallet/src/transaction_service/storage/database.rs
@@ -58,6 +58,12 @@ pub trait TransactionBackend: Send + Sync + Clone {
 
     fn get_transactions_to_be_broadcast(&self) -> Result<Vec<CompletedTransaction>, TransactionStorageError>;
 
+    /// Check for presence of any form of cancelled transaction with this TxId
+    fn fetch_any_cancelled_transaction(
+        &self,
+        tx_id: TxId,
+    ) -> Result<Option<WalletTransaction>, TransactionStorageError>;
+
     /// Check if a record with the provided key exists in the backend.
     fn contains(&self, key: &DbKey) -> Result<bool, TransactionStorageError>;
     /// Modify the state the of the backend with a write operation
@@ -570,6 +576,18 @@ where T: TransactionBackend + 'static
         Ok(t)
     }
 
+    pub async fn get_any_cancelled_transaction(
+        &self,
+        tx_id: TxId,
+    ) -> Result<Option<WalletTransaction>, TransactionStorageError> {
+        let db_clone = self.db.clone();
+
+        let tx = tokio::task::spawn_blocking(move || db_clone.fetch_any_cancelled_transaction(tx_id))
+            .await
+            .map_err(|err| TransactionStorageError::BlockingTaskSpawnError(err.to_string()))??;
+        Ok(tx)
+    }
+
     async fn get_completed_transactions_by_cancelled(
         &self,
         cancelled: bool,
diff --git a/base_layer/wallet/src/transaction_service/storage/sqlite_db.rs b/base_layer/wallet/src/transaction_service/storage/sqlite_db.rs
index 25701f08a6..bc72c94366 100644
--- a/base_layer/wallet/src/transaction_service/storage/sqlite_db.rs
+++ b/base_layer/wallet/src/transaction_service/storage/sqlite_db.rs
@@ -512,6 +512,44 @@ impl TransactionBackend for TransactionServiceSqliteDatabase {
         Err(TransactionStorageError::ValuesNotFound)
     }
 
+    fn fetch_any_cancelled_transaction(
+        &self,
+        tx_id: TxId,
+    ) -> Result<Option<WalletTransaction>, TransactionStorageError> {
+        let conn = self.database_connection.acquire_lock();
+
+        match OutboundTransactionSql::find_by_cancelled(tx_id, true, &(*conn)) {
+            Ok(mut o) => {
+                self.decrypt_if_necessary(&mut o)?;
+
+                return Ok(Some(WalletTransaction::PendingOutbound(OutboundTransaction::try_from(
+                    o,
+                )?)));
+            },
+            Err(TransactionStorageError::DieselError(DieselError::NotFound)) => (),
+            Err(e) => return Err(e),
+        };
+        match InboundTransactionSql::find_by_cancelled(tx_id, true, &(*conn)) {
+            Ok(mut i) => {
+                self.decrypt_if_necessary(&mut i)?;
+                return Ok(Some(WalletTransaction::PendingInbound(InboundTransaction::try_from(
+                    i,
+                )?)));
+            },
+            Err(TransactionStorageError::DieselError(DieselError::NotFound)) => (),
+            Err(e) => return Err(e),
+        };
+        match CompletedTransactionSql::find_by_cancelled(tx_id, true, &(*conn)) {
+            Ok(mut c) => {
+                self.decrypt_if_necessary(&mut c)?;
+                return Ok(Some(WalletTransaction::Completed(CompletedTransaction::try_from(c)?)));
+            },
+            Err(TransactionStorageError::DieselError(DieselError::NotFound)) => (),
+            Err(e) => return Err(e),
+        };
+        Ok(None)
+    }
+
     fn complete_outbound_transaction(
         &self,
         tx_id: u64,