diff --git a/client/network/src/protocol.rs b/client/network/src/protocol.rs
index 0450818e7a398..83f459d344db6 100644
--- a/client/network/src/protocol.rs
+++ b/client/network/src/protocol.rs
@@ -78,7 +78,9 @@ const PROPAGATE_TIMEOUT: time::Duration = time::Duration::from_millis(2900);
 /// Maximim number of known block hashes to keep for a peer.
 const MAX_KNOWN_BLOCKS: usize = 1024; // ~32kb per peer + LruHashSet overhead
 /// Maximim number of known extrinsic hashes to keep for a peer.
-const MAX_KNOWN_EXTRINSICS: usize = 4096; // ~128kb per peer + overhead
+///
+/// This should be approx. 2 blocks full of transactions for the network to function properly.
+const MAX_KNOWN_EXTRINSICS: usize = 10240; // ~300kb per peer + overhead.
 
 /// Maximim number of transaction validation request we keep at any moment.
 const MAX_PENDING_TRANSACTIONS: usize = 8192;
diff --git a/client/transaction-pool/src/lib.rs b/client/transaction-pool/src/lib.rs
index ad238e6241183..863f9f35788da 100644
--- a/client/transaction-pool/src/lib.rs
+++ b/client/transaction-pool/src/lib.rs
@@ -34,8 +34,8 @@ pub mod testing;
 pub use sc_transaction_graph as txpool;
 pub use crate::api::{FullChainApi, LightChainApi};
 
-use std::{collections::HashMap, sync::Arc, pin::Pin};
-use futures::{prelude::*, future::{ready, self}, channel::oneshot};
+use std::{collections::{HashMap, HashSet}, sync::Arc, pin::Pin};
+use futures::{prelude::*, future::{self, ready}, channel::oneshot};
 use parking_lot::Mutex;
 
 use sp_runtime::{
@@ -47,7 +47,7 @@ use sp_transaction_pool::{
 	TransactionStatusStreamFor, MaintainedTransactionPool, PoolFuture, ChainEvent,
 	TransactionSource,
 };
-use sc_transaction_graph::ChainApi;
+use sc_transaction_graph::{ChainApi, ExtrinsicHash};
 use wasm_timer::Instant;
 
 use prometheus_endpoint::Registry as PrometheusRegistry;
@@ -440,10 +440,10 @@ async fn prune_known_txs_for_block<Block: BlockT, Api: ChainApi<Block = Block>>(
 	block_id: BlockId<Block>,
 	api: &Api,
 	pool: &sc_transaction_graph::Pool<Api>,
-) {
+) -> Vec<ExtrinsicHash<Api>> {
 	// We don't query block if we won't prune anything
 	if pool.validated_pool().status().is_empty() {
-		return;
+		return Vec::new();
 	}
 
 	let hashes = api.block_body(&block_id).await
@@ -459,6 +459,8 @@ async fn prune_known_txs_for_block<Block: BlockT, Api: ChainApi<Block = Block>>(
 	if let Err(e) = pool.prune_known(&block_id, &hashes) {
 		log::error!("Cannot prune known in the pool {:?}!", e);
 	}
+
+	hashes
 }
 
 impl<PoolApi, Block> MaintainedTransactionPool for BasicPool<PoolApi, Block>
@@ -495,6 +497,10 @@ impl<PoolApi, Block> MaintainedTransactionPool for BasicPool<PoolApi, Block>
 				let ready_poll = self.ready_poll.clone();
 
 				async move {
+					// We keep track of everything we prune so that later we won't add
+					// tranactions with those hashes from the retracted blocks.
+					let mut pruned_log = HashSet::<ExtrinsicHash<PoolApi>>::new();
+
 					// If there is a tree route, we use this to prune known tx based on the enacted
 					// blocks.
 					if let Some(ref tree_route) = tree_route {
@@ -509,12 +515,14 @@ impl<PoolApi, Block> MaintainedTransactionPool for BasicPool<PoolApi, Block>
 										&*pool,
 									),
 								),
-						).await;
+						).await.into_iter().for_each(|enacted_log|{
+							pruned_log.extend(enacted_log);
+						})
 					}
 
 					// If this is a new best block, we need to prune its transactions from the pool.
 					if is_new_best {
-						prune_known_txs_for_block(id.clone(), &*api, &*pool).await;
+						pruned_log.extend(prune_known_txs_for_block(id.clone(), &*api, &*pool).await);
 					}
 
 					if let (true, Some(tree_route)) = (next_action.resubmit, tree_route) {
@@ -536,7 +544,21 @@ impl<PoolApi, Block> MaintainedTransactionPool for BasicPool<PoolApi, Block>
 								.into_iter()
 								.filter(|tx| tx.is_signed().unwrap_or(true));
 
-							resubmit_transactions.extend(block_transactions);
+							resubmit_transactions.extend(
+								block_transactions.into_iter().filter(|tx| {
+									let tx_hash = pool.hash_of(&tx);
+									let contains = pruned_log.contains(&tx_hash);
+									if !contains {
+										log::debug!(
+											target: "txpool",
+											"[{:?}]: Resubmitting from retracted block {:?}",
+											tx_hash,
+											hash,
+										);
+									}
+									!contains
+								})
+							);
 						}
 
 						if let Err(e) = pool.submit_at(
diff --git a/client/transaction-pool/src/testing/pool.rs b/client/transaction-pool/src/testing/pool.rs
index 0f0c0004893e9..85d8066e032fe 100644
--- a/client/transaction-pool/src/testing/pool.rs
+++ b/client/transaction-pool/src/testing/pool.rs
@@ -281,6 +281,25 @@ fn should_resubmit_from_retracted_during_maintenance() {
 	assert_eq!(pool.status().ready, 1);
 }
 
+
+#[test]
+fn should_not_resubmit_from_retracted_during_maintenance_if_tx_is_also_in_enacted() {
+	let xt = uxt(Alice, 209);
+
+	let (pool, _guard, _notifier) = maintained_pool();
+
+	block_on(pool.submit_one(&BlockId::number(0), SOURCE, xt.clone())).expect("1. Imported");
+	assert_eq!(pool.status().ready, 1);
+
+	let header = pool.api.push_block(1, vec![xt.clone()]);
+	let fork_header = pool.api.push_block(1, vec![xt]);
+
+	let event = block_event_with_retracted(header, fork_header.hash(), &*pool.api);
+
+	block_on(pool.maintain(event));
+	assert_eq!(pool.status().ready, 0);
+}
+
 #[test]
 fn should_not_retain_invalid_hashes_from_retracted() {
 	let xt = uxt(Alice, 209);