diff --git a/subxt/src/tx/tx_progress.rs b/subxt/src/tx/tx_progress.rs
index b949de2be4..80638fdd78 100644
--- a/subxt/src/tx/tx_progress.rs
+++ b/subxt/src/tx/tx_progress.rs
@@ -10,6 +10,7 @@ use crate::utils::strip_compact_prefix;
 use crate::{
     backend::{BlockRef, StreamOfResults, TransactionStatus as BackendTxStatus},
     client::OnlineClientT,
+    config::Header,
     error::{DispatchError, Error, RpcError, TransactionError},
     events::EventsClient,
     Config,
@@ -82,6 +83,20 @@ where
     /// that this is true. In those cases the stream is closed however, so you currently have no way to find
     /// out if they finally made it into a block or not.
     pub async fn wait_for_finalized(mut self) -> Result<TxInBlock<T, C>, Error> {
+        // Wait for the tx to be reported in a block by the transaction status.
+        let tx_in_block = self.wait_for_tx_finalized().await?;
+
+        // Tx reported as finalized must be synchronized with the chain head:
+        // - tx finalized number must be lower than the chain head finalized number.
+        // - tx finalized hash must be equal to the chain head finalized hash.
+        self.wait_for_chain_head_finalized(tx_in_block).await
+    }
+
+    /// Wait for the transaction to be reported as finalized.
+    ///
+    /// This relies entirely by the transaction status, that could be out of sync with
+    /// the chain head.
+    async fn wait_for_tx_finalized(&mut self) -> Result<TxInBlock<T, C>, Error> {
         while let Some(status) = self.next().await {
             match status? {
                 // Finalized! Return.
@@ -101,6 +116,80 @@ where
         Err(RpcError::SubscriptionDropped.into())
     }
 
+    /// Wait for the block hash of the transaction to be reported as finalized
+    /// by the chain head.
+    async fn wait_for_chain_head_finalized(
+        &mut self,
+        tx_in_block: TxInBlock<T, C>,
+    ) -> Result<TxInBlock<T, C>, Error> {
+        // Correlate the tx status with the head of the chain.
+        let head = self.client.backend().latest_finalized_block_ref().await?;
+
+        // This optimizes the most common case, where the tx status is in sync with the head of the chain.
+        if tx_in_block.block_hash() == head.hash() {
+            return Ok(tx_in_block);
+        }
+
+        // Must determine if the hash is older or newer than the chain head.
+        let Some(tx_num) = self
+            .client
+            .backend()
+            .block_header(tx_in_block.block_hash())
+            .await?
+            .map(|header: <T as Config>::Header| header.number())
+        else {
+            return Err(TransactionError::Error(
+                "Transaction block header not found. This is a bug, please open an issue".into(),
+            )
+            .into());
+        };
+
+        let Some(head_num) = self
+            .client
+            .backend()
+            .block_header(head.hash())
+            .await?
+            .map(|header| header.number())
+        else {
+            return Err(TransactionError::Error(
+                "Chain finalized block header not found. This is a bug, please open an issue"
+                    .into(),
+            )
+            .into());
+        };
+
+        let tx_num: u64 = tx_num.into();
+        let head_num: u64 = head_num.into();
+        // Rely on substrate to report a valid TX status included in a prior finalized block.
+        if tx_num < head_num {
+            return Ok(tx_in_block);
+        }
+
+        // Wait for the chain head to report the tx block hash as finalized, or to report
+        // a newer finalized block hash (in terms of block number).
+        let mut finalized_stream = self
+            .client
+            .backend()
+            .stream_finalized_block_headers()
+            .await?;
+
+        while let Some(finalized) = finalized_stream.next().await {
+            let (finalized, _block_ref) = finalized?;
+
+            // By the time we open this subscription stream, tx finalized number may (very unlikely) lag behind.
+            let finalized_num = finalized.number().into();
+            if tx_num < finalized_num {
+                return Ok(tx_in_block);
+            }
+
+            if finalized.hash() == tx_in_block.block_hash() {
+                return Ok(tx_in_block);
+            }
+        }
+
+        Ok(tx_in_block)
+    }
+
     /// Wait for the transaction to be finalized, and for the transaction events to indicate
     /// that the transaction was successful. Returns the events associated with the transaction,
     /// as well as a couple of other details (block hash and extrinsic hash).