diff --git a/CHANGELOG.md b/CHANGELOG.md
index c3e9d0d15..0f48b3e5e 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -18,6 +18,10 @@
 - Singlesig: Remove is_segwit from GA_get_unspent_outputs returned json
 - GA_register_user: Change interface to match GA_login_user.
 
+### Fixed
+
+- GA_get_unspent_outputs: fix bug returning utxos from replaced transactions.
+
 ### Removed
 
 - Removed GA_get_mnemonic_passphrase, callers should use GA_get_credentials.
diff --git a/subprojects/gdk_rust/gdk_electrum/src/account.rs b/subprojects/gdk_rust/gdk_electrum/src/account.rs
index dc0735cb3..e2d8a3d59 100644
--- a/subprojects/gdk_rust/gdk_electrum/src/account.rs
+++ b/subprojects/gdk_rust/gdk_electrum/src/account.rs
@@ -625,7 +625,11 @@ impl Account {
         let mut inputs = HashSet::new();
         let store_read = self.store.read()?;
         let acc_store = store_read.account_cache(self.account_num)?;
-        for txe in acc_store.all_txs.values() {
+        for (txid, txe) in acc_store.all_txs.iter() {
+            if !acc_store.heights.contains_key(&txid) {
+                // transaction has been replaced or dropped out of mempool
+                continue;
+            }
             inputs.extend(txe.tx.previous_outputs());
             for vout in 0..(txe.tx.output_len() as u32) {
                 let script_pubkey = txe.tx.output_script(vout);
diff --git a/subprojects/gdk_rust/gdk_rust/tests/integration.rs b/subprojects/gdk_rust/gdk_rust/tests/integration.rs
index 61d6cdb67..5926222f3 100644
--- a/subprojects/gdk_rust/gdk_rust/tests/integration.rs
+++ b/subprojects/gdk_rust/gdk_rust/tests/integration.rs
@@ -1258,6 +1258,9 @@ fn rbf() {
     let txid1 = test_session.session.broadcast_transaction(&signed_tx.hex).unwrap();
     test_session.wait_tx(vec![1], &txid1, Some(signed_tx.fee), Some(TransactionType::Redeposit));
     let txitem = test_session.get_tx_from_list(1, &txid1);
+    assert!(test_session.utxos(1).0.get("btc").unwrap().iter().any(|e| e.txhash == txid1));
+    assert_eq!(test_session.balance_account(1, None, None), sat - txitem.fee);
+
     assert_eq!(txitem.fee_rate / 1000, 25);
 
     // Replace it
@@ -1279,6 +1282,8 @@ fn rbf() {
     for i in 0..60 {
         std::thread::sleep(std::time::Duration::from_secs(1));
         if test_session.get_tx_list(1).iter().all(|e| e.txhash != txid1) {
+            assert!(test_session.utxos(1).0.get("btc").unwrap().iter().all(|e| e.txhash != txid1));
+            assert_eq!(test_session.balance_account(1, None, None), sat - txitem.fee);
             break;
         }
         assert!(i < 59, "timeout waiting for replaced transaction to disappear");