diff --git a/chain/stmgr/execute.go b/chain/stmgr/execute.go
index f85ff7c043..8c85a1031b 100644
--- a/chain/stmgr/execute.go
+++ b/chain/stmgr/execute.go
@@ -128,10 +128,43 @@ func (sm *StateManager) ExecutionTraceWithMonitor(ctx context.Context, ts *types
 }
 
 func (sm *StateManager) ExecutionTrace(ctx context.Context, ts *types.TipSet) (cid.Cid, []*api.InvocResult, error) {
+	tsKey := ts.Key()
+
+	// check if we have the trace for this tipset in the cache
+	sm.execTraceCacheLock.Lock()
+	if entry, ok := sm.execTraceCache.Get(tsKey); ok {
+		// we have to make a deep copy since caller can modify the invocTrace
+		// and we don't want that to change what we store in cache
+		invocTraceCopy := makeDeepCopy(entry.invocTrace)
+		sm.execTraceCacheLock.Unlock()
+		return entry.postStateRoot, invocTraceCopy, nil
+	}
+	sm.execTraceCacheLock.Unlock()
+
 	var invocTrace []*api.InvocResult
 	st, err := sm.ExecutionTraceWithMonitor(ctx, ts, &InvocationTracer{trace: &invocTrace})
 	if err != nil {
 		return cid.Undef, nil, err
 	}
+
+	invocTraceCopy := makeDeepCopy(invocTrace)
+
+	sm.execTraceCacheLock.Lock()
+	sm.execTraceCache.Add(tsKey, tipSetCacheEntry{st, invocTraceCopy})
+	sm.execTraceCacheLock.Unlock()
+
 	return st, invocTrace, nil
 }
+
+func makeDeepCopy(invocTrace []*api.InvocResult) []*api.InvocResult {
+	c := make([]*api.InvocResult, len(invocTrace))
+	for i, ir := range invocTrace {
+		if ir == nil {
+			continue
+		}
+		tmp := *ir
+		c[i] = &tmp
+	}
+
+	return c
+}
diff --git a/chain/stmgr/stmgr.go b/chain/stmgr/stmgr.go
index 2d528c91be..bf10665e7d 100644
--- a/chain/stmgr/stmgr.go
+++ b/chain/stmgr/stmgr.go
@@ -5,6 +5,7 @@ import (
 	"fmt"
 	"sync"
 
+	lru "github.com/hashicorp/golang-lru/v2"
 	"github.com/ipfs/go-cid"
 	dstore "github.com/ipfs/go-datastore"
 	cbor "github.com/ipfs/go-ipld-cbor"
@@ -39,6 +40,8 @@ import (
 const LookbackNoLimit = api.LookbackNoLimit
 const ReceiptAmtBitwidth = 3
 
+const execTraceCacheSize = 16
+
 var log = logging.Logger("statemgr")
 
 type StateManagerAPI interface {
@@ -138,6 +141,13 @@ type StateManager struct {
 	beacon        beacon.Schedule
 
 	msgIndex index.MsgIndex
+
+	// We keep a small cache for calls to ExecutionTrace which helps improve
+	// performance for node operators like exchanges and block explorers
+	execTraceCache *lru.ARCCache[types.TipSetKey, tipSetCacheEntry]
+	// We need a lock while making the copy as to prevent other callers
+	// overwrite the cache while making the copy
+	execTraceCacheLock sync.Mutex
 }
 
 // Caches a single state tree
@@ -146,6 +156,11 @@ type treeCache struct {
 	tree *state.StateTree
 }
 
+type tipSetCacheEntry struct {
+	postStateRoot cid.Cid
+	invocTrace    []*api.InvocResult
+}
+
 func NewStateManager(cs *store.ChainStore, exec Executor, sys vm.SyscallBuilder, us UpgradeSchedule, beacon beacon.Schedule, metadataDs dstore.Batching, msgIndex index.MsgIndex) (*StateManager, error) {
 	// If we have upgrades, make sure they're in-order and make sense.
 	if err := us.Validate(); err != nil {
@@ -185,6 +200,11 @@ func NewStateManager(cs *store.ChainStore, exec Executor, sys vm.SyscallBuilder,
 		}
 	}
 
+	execTraceCache, err := lru.NewARC[types.TipSetKey, tipSetCacheEntry](execTraceCacheSize)
+	if err != nil {
+		return nil, err
+	}
+
 	return &StateManager{
 		networkVersions:   networkVersions,
 		latestVersion:     lastVersion,
@@ -200,8 +220,9 @@ func NewStateManager(cs *store.ChainStore, exec Executor, sys vm.SyscallBuilder,
 			root: cid.Undef,
 			tree: nil,
 		},
-		compWait: make(map[string]chan struct{}),
-		msgIndex: msgIndex,
+		compWait:       make(map[string]chan struct{}),
+		msgIndex:       msgIndex,
+		execTraceCache: execTraceCache,
 	}, nil
 }