diff --git a/app/appmessage/rpc_submit_transaction_replacement.go b/app/appmessage/rpc_submit_transaction_replacement.go
index e2bc4585d1..9bd4c264d6 100644
--- a/app/appmessage/rpc_submit_transaction_replacement.go
+++ b/app/appmessage/rpc_submit_transaction_replacement.go
@@ -23,7 +23,8 @@ func NewSubmitTransactionReplacementRequestMessage(transaction *RPCTransaction)
 // its respective RPC message
 type SubmitTransactionReplacementResponseMessage struct {
 	baseMessage
-	TransactionID string
+	TransactionID       string
+	ReplacedTransaction *RPCTransaction
 
 	Error *RPCError
 }
diff --git a/cmd/kaspawallet/daemon/server/bump_fee.go b/cmd/kaspawallet/daemon/server/bump_fee.go
index 576b2e0faf..7b77339980 100644
--- a/cmd/kaspawallet/daemon/server/bump_fee.go
+++ b/cmd/kaspawallet/daemon/server/bump_fee.go
@@ -37,13 +37,11 @@ func (s *server) BumpFee(_ context.Context, request *pb.BumpFeeRequest) (*pb.Bum
 	}
 
 	outpointsSet := make(map[externalapi.DomainOutpoint]struct{})
+	var maxUTXO *walletUTXO
 	for _, input := range domainTx.Inputs {
 		outpointsSet[input.PreviousOutpoint] = struct{}{}
-	}
-
-	var maxUTXO *walletUTXO
-	for _, utxo := range s.utxosSortedByAmount {
-		if _, ok := outpointsSet[*utxo.Outpoint]; !ok {
+		utxo, ok := s.mempoolExcludedUTXOs[input.PreviousOutpoint]
+		if !ok {
 			continue
 		}
 
@@ -52,6 +50,19 @@ func (s *server) BumpFee(_ context.Context, request *pb.BumpFeeRequest) (*pb.Bum
 		}
 	}
 
+	if maxUTXO == nil {
+		// If we got here it means for some reason s.mempoolExcludedUTXOs is not up to date and we need to search for the UTXOs in s.utxosSortedByAmount
+		for _, utxo := range s.utxosSortedByAmount {
+			if _, ok := outpointsSet[*utxo.Outpoint]; !ok {
+				continue
+			}
+
+			if maxUTXO == nil || utxo.UTXOEntry.Amount() > maxUTXO.UTXOEntry.Amount() {
+				maxUTXO = utxo
+			}
+		}
+	}
+
 	if maxUTXO == nil {
 		return nil, errors.Errorf("no UTXOs were found for transaction %s. This probably means the transaction is already accepted", request.TxID)
 	}
diff --git a/cmd/kaspawallet/daemon/server/server.go b/cmd/kaspawallet/daemon/server/server.go
index 1b43dac8cf..ff649ea079 100644
--- a/cmd/kaspawallet/daemon/server/server.go
+++ b/cmd/kaspawallet/daemon/server/server.go
@@ -8,6 +8,7 @@ import (
 	"sync/atomic"
 	"time"
 
+	"github.com/kaspanet/kaspad/app/appmessage"
 	"github.com/kaspanet/kaspad/version"
 
 	"github.com/kaspanet/kaspad/domain/consensus/model/externalapi"
@@ -37,6 +38,7 @@ type server struct {
 
 	lock                            sync.RWMutex
 	utxosSortedByAmount             []*walletUTXO
+	mempoolExcludedUTXOs            map[externalapi.DomainOutpoint]*walletUTXO
 	nextSyncStartIndex              uint32
 	keysFile                        *keys.File
 	shutdown                        chan struct{}
@@ -111,6 +113,7 @@ func Start(params *dagconfig.Params, listen, rpcServer string, keysFilePath stri
 		params:                      params,
 		coinbaseMaturity:            coinbaseMaturity,
 		utxosSortedByAmount:         []*walletUTXO{},
+		mempoolExcludedUTXOs:        map[appmessage.RPCOutpoint]struct{}{},
 		nextSyncStartIndex:          0,
 		keysFile:                    keysFile,
 		shutdown:                    make(chan struct{}),
diff --git a/cmd/kaspawallet/daemon/server/sync.go b/cmd/kaspawallet/daemon/server/sync.go
index 6aa7bd2b4e..427592e1a7 100644
--- a/cmd/kaspawallet/daemon/server/sync.go
+++ b/cmd/kaspawallet/daemon/server/sync.go
@@ -6,6 +6,7 @@ import (
 	"time"
 
 	"github.com/kaspanet/kaspad/cmd/kaspawallet/libkaspawallet"
+	"github.com/kaspanet/kaspad/domain/consensus/model/externalapi"
 
 	"github.com/kaspanet/kaspad/app/appmessage"
 	"github.com/pkg/errors"
@@ -240,11 +241,8 @@ func (s *server) updateUTXOSet(entries []*appmessage.UTXOsByAddressesEntry, memp
 		}
 	}
 
+	mempoolExcludedUTXOs := make(map[externalapi.DomainOutpoint]*walletUTXO)
 	for _, entry := range entries {
-		if _, ok := exclude[*entry.Outpoint]; ok {
-			continue
-		}
-
 		outpoint, err := appmessage.RPCOutpointToDomainOutpoint(entry.Outpoint)
 		if err != nil {
 			return err
@@ -260,11 +258,22 @@ func (s *server) updateUTXOSet(entries []*appmessage.UTXOsByAddressesEntry, memp
 		if !ok {
 			return errors.Errorf("Got result from address %s even though it wasn't requested", entry.Address)
 		}
-		utxos = append(utxos, &walletUTXO{
+
+		utxo := &walletUTXO{
 			Outpoint:  outpoint,
 			UTXOEntry: utxoEntry,
 			address:   address,
-		})
+		}
+
+		if _, ok := exclude[*entry.Outpoint]; ok {
+			mempoolExcludedUTXOs[*outpoint] = utxo
+		} else {
+			utxos = append(utxos, &walletUTXO{
+				Outpoint:  outpoint,
+				UTXOEntry: utxoEntry,
+				address:   address,
+			})
+		}
 	}
 
 	sort.Slice(utxos, func(i, j int) bool { return utxos[i].UTXOEntry.Amount() > utxos[j].UTXOEntry.Amount() })
@@ -272,6 +281,7 @@ func (s *server) updateUTXOSet(entries []*appmessage.UTXOsByAddressesEntry, memp
 	s.lock.Lock()
 	s.startTimeOfLastCompletedRefresh = refreshStart
 	s.utxosSortedByAmount = utxos
+	s.mempoolExcludedUTXOs = mempoolExcludedUTXOs
 
 	// Cleanup expired used outpoints to avoid a memory leak
 	for outpoint, broadcastTime := range s.usedOutpoints {
diff --git a/infrastructure/network/netadapter/server/grpcserver/protowire/rpc_submit_transaction_replacement.go b/infrastructure/network/netadapter/server/grpcserver/protowire/rpc_submit_transaction_replacement.go
index dc621ac75b..2e8cf8b5be 100644
--- a/infrastructure/network/netadapter/server/grpcserver/protowire/rpc_submit_transaction_replacement.go
+++ b/infrastructure/network/netadapter/server/grpcserver/protowire/rpc_submit_transaction_replacement.go
@@ -46,8 +46,12 @@ func (x *KaspadMessage_SubmitTransactionReplacementResponse) fromAppMessage(mess
 		err = &RPCError{Message: message.Error.Message}
 	}
 	x.SubmitTransactionReplacementResponse = &SubmitTransactionReplacementResponseMessage{
-		TransactionId: message.TransactionID,
-		Error:         err,
+		TransactionId:       message.TransactionID,
+		ReplacedTransaction: &RpcTransaction{},
+		Error:               err,
+	}
+	if message.ReplacedTransaction != nil {
+		x.SubmitTransactionReplacementResponse.ReplacedTransaction.fromAppMessage(message.ReplacedTransaction)
 	}
 	return nil
 }
@@ -61,8 +65,13 @@ func (x *SubmitTransactionReplacementResponseMessage) toAppMessage() (appmessage
 	if err != nil && !errors.Is(err, errorNil) {
 		return nil, err
 	}
+	replacedTx, err := x.ReplacedTransaction.toAppMessage()
+	if err != nil {
+		return nil, err
+	}
 	return &appmessage.SubmitTransactionReplacementResponseMessage{
-		TransactionID: x.TransactionId,
-		Error:         rpcErr,
+		TransactionID:       x.TransactionId,
+		ReplacedTransaction: replacedTx,
+		Error:               rpcErr,
 	}, nil
 }