diff --git a/src/silentpayments.rs b/src/silentpayments.rs
index 53086c7..079e041 100644
--- a/src/silentpayments.rs
+++ b/src/silentpayments.rs
@@ -3,11 +3,12 @@ use std::collections::HashMap;
 use anyhow::{Error, Result};
 use serde::{Deserialize, Serialize};
 use sp_client::bitcoin::absolute::Height;
+use sp_client::bitcoin::hashes::Hash;
 use sp_client::bitcoin::secp256k1::{PublicKey, SecretKey};
 use tsify::Tsify;
 
 use rand::{thread_rng, Rng};
-use sp_client::bitcoin::{Amount, OutPoint, Transaction, TxOut, XOnlyPublicKey};
+use sp_client::bitcoin::{Amount, BlockHash, OutPoint, Transaction, TxOut, Txid, XOnlyPublicKey};
 use sp_client::{FeeRate, OutputSpendStatus, OwnedOutput, Recipient, SilentPaymentUnsignedTransaction, SpClient};
 use sp_client::silentpayments::utils::receiving::calculate_ecdh_shared_secret;
 
@@ -80,10 +81,22 @@ impl SpWallet {
         }
     }
 
+    fn check_inputs(&mut self, tx: &Transaction) {
+        for input in &tx.input {
+            if let Some(output) = self.outputs.get(&input.previous_output) {
+                if output.spend_status != OutputSpendStatus::Unspent {
+                    log::debug!("Input is already spent: {:?}", input.previous_output);
+                    continue;
+                } else {
+                    self.mark_output_spent(&input.previous_output, &tx.txid());
+                }
+            }
         }
     }
 
     pub fn update_with_transaction(&mut self, tx: &Transaction, public_tweak: &PublicKey, height: u32) -> Result<HashMap<OutPoint, OwnedOutput>> {
+        // Check if we have outputs that are spent by this transaction
+        self.check_inputs(tx);
         let receiver = &self.get_sp_client().sp_receiver;
         let p2tr_outs: Vec<(usize, &TxOut)> = tx
             .output