diff --git a/txcache/monitoring.go b/txcache/monitoring.go
index 7d8ad284..17fd0368 100644
--- a/txcache/monitoring.go
+++ b/txcache/monitoring.go
@@ -12,10 +12,18 @@ import (
 var log = logger.GetOrCreate("txcache")
 
 func (cache *TxCache) monitorEvictionWrtSenderLimit(sender []byte, evicted [][]byte) {
-	log.Trace("TxCache.AddTx() evict transactions wrt. limit by sender", "name", cache.name, "sender", sender, "num", len(evicted))
+	log.Trace("TxCache.monitorEvictionWrtSenderLimit()", "name", cache.name, "sender", sender, "num", len(evicted))
 
 	for i := 0; i < core.MinInt(len(evicted), numEvictedTxsToDisplay); i++ {
-		log.Trace("TxCache.AddTx() evict transactions wrt. limit by sender", "name", cache.name, "sender", sender, "tx", evicted[i])
+		log.Trace("TxCache.monitorEvictionWrtSenderLimit()", "name", cache.name, "sender", sender, "tx", evicted[i])
+	}
+}
+
+func (cache *TxCache) monitorEvictionWrtSenderNonce(sender []byte, senderNonce uint64, evicted [][]byte) {
+	log.Trace("TxCache.monitorEvictionWrtSenderNonce()", "name", cache.name, "sender", sender, "nonce", senderNonce, "num", len(evicted))
+
+	for i := 0; i < core.MinInt(len(evicted), numEvictedTxsToDisplay); i++ {
+		log.Trace("TxCache.monitorEvictionWrtSenderNonce()", "name", cache.name, "sender", sender, "nonce", senderNonce, "tx", evicted[i])
 	}
 }
 
diff --git a/txcache/txCache.go b/txcache/txCache.go
index d938b976..cfa31573 100644
--- a/txcache/txCache.go
+++ b/txcache/txCache.go
@@ -311,7 +311,12 @@ func (cache *TxCache) UnRegisterHandler(string) {
 // NotifyAccountNonce should be called by external components (such as interceptors and transactions processor)
 // in order to inform the cache about initial nonce gap phenomena
 func (cache *TxCache) NotifyAccountNonce(accountKey []byte, nonce uint64) {
-	cache.txListBySender.notifyAccountNonce(accountKey, nonce)
+	evicted := cache.txListBySender.notifyAccountNonce(accountKey, nonce)
+
+	if len(evicted) > 0 {
+		cache.monitorEvictionWrtSenderNonce(accountKey, nonce, evicted)
+		cache.txByHash.RemoveTxsBulk(evicted)
+	}
 }
 
 // ImmunizeTxsAgainstEviction does nothing for this type of cache
diff --git a/txcache/txListBySenderMap.go b/txcache/txListBySenderMap.go
index ccda1ce0..beb9f2fd 100644
--- a/txcache/txListBySenderMap.go
+++ b/txcache/txListBySenderMap.go
@@ -133,14 +133,14 @@ func (txMap *txListBySenderMap) RemoveSendersBulk(senders []string) uint32 {
 	return numRemoved
 }
 
-func (txMap *txListBySenderMap) notifyAccountNonce(accountKey []byte, nonce uint64) {
+func (txMap *txListBySenderMap) notifyAccountNonce(accountKey []byte, nonce uint64) [][]byte {
 	sender := string(accountKey)
 	listForSender, ok := txMap.getListForSender(sender)
 	if !ok {
-		return
+		return nil
 	}
 
-	listForSender.notifyAccountNonce(nonce)
+	return listForSender.notifyAccountNonce(nonce)
 }
 
 func (txMap *txListBySenderMap) getSnapshotAscending() []*txListForSender {
diff --git a/txcache/txListForSender.go b/txcache/txListForSender.go
index a12a91d1..99fcd819 100644
--- a/txcache/txListForSender.go
+++ b/txcache/txListForSender.go
@@ -320,9 +320,37 @@ func approximatelyCountTxInLists(lists []*txListForSender) uint64 {
 
 // notifyAccountNonce does not update the "numFailedSelections" counter,
 // since the notification comes at a time when we cannot actually detect whether the initial gap still exists or it was resolved.
-func (listForSender *txListForSender) notifyAccountNonce(nonce uint64) {
+// Removes transactions with lower nonces and returns their hashes.
+func (listForSender *txListForSender) notifyAccountNonce(nonce uint64) [][]byte {
+	listForSender.mutex.Lock()
+	defer listForSender.mutex.Unlock()
+
 	listForSender.accountNonce.Set(nonce)
 	_ = listForSender.accountNonceKnown.SetReturningPrevious()
+
+	return listForSender.evictTransactionsWithLowerNonces(nonce)
+}
+
+// This function should only be used in critical section (listForSender.mutex)
+func (listForSender *txListForSender) evictTransactionsWithLowerNonces(accountNonce uint64) [][]byte {
+	evictedTxHashes := make([][]byte, 0)
+
+	for element := listForSender.items.Front(); element != nil; element = element.Next() {
+		tx := element.Value.(*WrappedTransaction)
+		txNonce := tx.Tx.GetNonce()
+
+		if txNonce >= accountNonce {
+			break
+		}
+
+		listForSender.items.Remove(element)
+		listForSender.onRemovedListElement(element)
+
+		// Keep track of removed transactions
+		evictedTxHashes = append(evictedTxHashes, tx.TxHash)
+	}
+
+	return evictedTxHashes
 }
 
 // This function should only be used in critical section (listForSender.mutex)