diff --git a/src/ga_tx.cpp b/src/ga_tx.cpp
index b62f5c839..093f3d81a 100644
--- a/src/ga_tx.cpp
+++ b/src/ga_tx.cpp
@@ -749,11 +749,7 @@ namespace sdk {
                             // so compute what we can send (everything minus the
                             // fee) and exit the loop
                             required_total = available_total - fee;
-                            if (is_liquid) {
-                                set_tx_output_commitment(net_params, tx, 0, asset_tag, required_total.value());
-                            } else {
-                                tx->outputs[0].satoshi = required_total.value();
-                            }
+                            set_tx_output_value(net_params, tx, 0, asset_tag, required_total.value());
                             if (num_addressees == 1u) {
                                 addressees_p->at(0)["satoshi"] = required_total.value();
                             }
@@ -809,9 +805,41 @@ namespace sdk {
                         continue;
                     }
 
-                    // We have more than the dust amount of change. Add a change
-                    // output to collect it, then loop again in case the amount
-                    // this increases the fee by requires more UTXOs.
+                    // We have more than the dust amount of change. First look for an explicit change
+                    // output in the addressees and if present send the change there
+                    amount::value_type change_amount = (total - required_total - fee).value();
+                    bool have_explicit_change = false;
+                    if (num_addressees) {
+                        int addressee_index = 0;
+                        for (auto& addressee : *addressees_p) {
+                            const auto addressee_asset_tag
+                                = session.asset_id_from_string(addressee.value("asset_tag", std::string{}));
+                            if (addressee_asset_tag == asset_tag) {
+                                if (json_get_value(addressee, "is_change", false)) {
+                                    if (have_explicit_change) {
+                                        set_tx_error(result, "Only one explicit change addressee allowed");
+                                        break;
+                                    }
+                                    // There is an assumption that the tx outputs are indexed so they match
+                                    // addressees, which is very weakly enforced but needs to be true otherwise
+                                    // other things (liquid blinding) breaks.
+                                    set_tx_output_value(net_params, tx, addressee_index, asset_tag, change_amount);
+                                    addressee["satoshi"] = change_amount;
+                                    have_explicit_change = true;
+                                    required_total += change_amount;
+                                }
+                            }
+                            ++addressee_index;
+                        }
+                    }
+
+                    if (have_explicit_change) {
+                        // No need for implicit change output
+                        continue;
+                    }
+
+                    // No explicit change output specified, generate a change output paying back to
+                    // the wallet.
                     add_tx_output(net_params, result, tx, result.at("change_address").at(asset_tag).at("address"),
                         is_liquid ? 1 : 0, asset_tag == "btc" ? std::string{} : asset_tag);
                     have_change_output = true;
diff --git a/src/transaction_utils.cpp b/src/transaction_utils.cpp
index cba02a67f..d678a1ac6 100644
--- a/src/transaction_utils.cpp
+++ b/src/transaction_utils.cpp
@@ -355,8 +355,10 @@ namespace sdk {
         }
 
         // Transactions with outputs below the dust threshold (except OP_RETURN)
-        // are not relayed by network nodes
-        if (!result.value("send_all", false) && satoshi.value() < session.get_dust_threshold()) {
+        // are not relayed by network nodes. send_all and explicit change outputs
+        // have amounts set to zero because they are calculated
+        if (!result.value("send_all", false) && !json_get_value(addressee, "is_change", false)
+            && satoshi.value() < session.get_dust_threshold()) {
             result["error"] = res::id_invalid_amount;
         }
 
@@ -367,6 +369,17 @@ namespace sdk {
             net_params, result, tx, address, satoshi.value(), addressee.value("asset_tag", std::string{}));
     }
 
+    void set_tx_output_value(const network_parameters& net_params, wally_tx_ptr& tx, uint32_t index,
+        const std::string& asset_tag, amount::value_type satoshi)
+    {
+        const bool is_liquid = net_params.liquid();
+        if (is_liquid) {
+            set_tx_output_commitment(net_params, tx, index, asset_tag, satoshi);
+        } else {
+            tx->outputs[index].satoshi = satoshi;
+        }
+    }
+
     void update_tx_size_info(const wally_tx_ptr& tx, nlohmann::json& result)
     {
         const bool valid = tx->num_inputs != 0u && tx->num_outputs != 0u;
@@ -473,6 +486,14 @@ namespace sdk {
                     if (net_params.liquid()) {
                         output["public_key"] = blinding_key_from_addr(address);
                     }
+                    const bool is_change = json_get_value(addressee, "is_change", false);
+                    if (is_change) {
+                        // This is an explicit change output (as opposed to one generated by the gdk)
+                        // Mark with 'is_change'
+                        // Can be distinguished from a generated change output because the change_index
+                        // will be set to -1
+                        output["is_change"] = true;
+                    }
                     ++addressee_index;
                 }
 
diff --git a/src/transaction_utils.hpp b/src/transaction_utils.hpp
index 790e7698c..6dc9f3c6f 100644
--- a/src/transaction_utils.hpp
+++ b/src/transaction_utils.hpp
@@ -84,6 +84,9 @@ namespace sdk {
     amount add_tx_addressee(ga_session& session, const network_parameters& net_params, nlohmann::json& result,
         wally_tx_ptr& tx, nlohmann::json& addressee);
 
+    void set_tx_output_value(const network_parameters& net_params, wally_tx_ptr& tx, uint32_t index,
+        const std::string& asset_tag, amount::value_type satoshi);
+
     vbf_t generate_final_vbf(byte_span_t input_abfs, byte_span_t input_vbfs, uint64_span_t input_values,
         const std::vector<abf_t>& output_abfs, const std::vector<vbf_t>& output_vbfs, uint32_t num_inputs);