diff --git a/substrate/client/rpc-spec-v2/src/transaction/tests/transaction_broadcast_tests.rs b/substrate/client/rpc-spec-v2/src/transaction/tests/transaction_broadcast_tests.rs
index 77a28968ae..14e188b6a8 100644
--- a/substrate/client/rpc-spec-v2/src/transaction/tests/transaction_broadcast_tests.rs
+++ b/substrate/client/rpc-spec-v2/src/transaction/tests/transaction_broadcast_tests.rs
@@ -94,7 +94,7 @@ async fn tx_broadcast_enters_pool() {
 
 #[tokio::test]
 async fn tx_broadcast_invalid_tx() {
-	let (_, pool, _, tx_api, mut exec_middleware, _) = setup_api(Default::default());
+	let (_, pool, _, tx_api, exec_middleware, _) = setup_api(Default::default());
 
 	// Invalid parameters.
 	let err = tx_api
@@ -114,13 +114,10 @@ async fn tx_broadcast_invalid_tx() {
 
 	assert_eq!(0, pool.status().ready);
 
-	// Await the broadcast future to exit.
-	// Without this we'd be subject to races, where we try to call the stop before the tx is
-	// dropped.
-	let _ = get_next_event!(&mut exec_middleware.recv);
+	// The broadcast future should never be spawned when the tx decoding fails.
 	assert_eq!(0, exec_middleware.num_tasks());
 
-	// The broadcast future was dropped, and the operation is no longer active.
+	// The operation ID is no longer active.
 	// When the operation is not active, either from the tx being finalized or a
 	// terminal error; the stop method should return an error.
 	let err = tx_api
diff --git a/substrate/client/rpc-spec-v2/src/transaction/transaction_broadcast.rs b/substrate/client/rpc-spec-v2/src/transaction/transaction_broadcast.rs
index 6eaf50d6b2..ef1a426865 100644
--- a/substrate/client/rpc-spec-v2/src/transaction/transaction_broadcast.rs
+++ b/substrate/client/rpc-spec-v2/src/transaction/transaction_broadcast.rs
@@ -37,7 +37,7 @@ use std::{collections::HashMap, sync::Arc};
 use super::error::ErrorBroadcast;
 
 /// An API for transaction RPC calls.
-pub struct TransactionBroadcast<Pool, Client> {
+pub struct TransactionBroadcast<Pool: TransactionPool, Client> {
 	/// Substrate client.
 	client: Arc<Client>,
 	/// Transactions pool.
@@ -45,16 +45,18 @@ pub struct TransactionBroadcast<Pool, Client> {
 	/// Executor to spawn subscriptions.
 	executor: SubscriptionTaskExecutor,
 	/// The broadcast operation IDs.
-	broadcast_ids: Arc<RwLock<HashMap<String, BroadcastState>>>,
+	broadcast_ids: Arc<RwLock<HashMap<String, BroadcastState<Pool>>>>,
 }
 
 /// The state of a broadcast operation.
-struct BroadcastState {
+struct BroadcastState<Pool: TransactionPool> {
 	/// Handle to abort the running future that broadcasts the transaction.
 	handle: AbortHandle,
+	/// Associated tx hash.
+	tx_hash: <Pool as TransactionPool>::Hash,
 }
 
-impl<Pool, Client> TransactionBroadcast<Pool, Client> {
+impl<Pool: TransactionPool, Client> TransactionBroadcast<Pool, Client> {
 	/// Creates a new [`TransactionBroadcast`].
 	pub fn new(client: Arc<Client>, pool: Arc<Pool>, executor: SubscriptionTaskExecutor) -> Self {
 		TransactionBroadcast { client, pool, executor, broadcast_ids: Default::default() }
@@ -106,17 +108,22 @@ where
 		// The unique ID of this operation.
 		let id = self.generate_unique_id();
 
+		// The JSON-RPC server might check whether the transaction is valid before broadcasting it.
+		// If it does so and if the transaction is invalid, the server should silently do nothing
+		// and the JSON-RPC client is not informed of the problem. Invalid transactions should still
+		// count towards the limit to the number of simultaneously broadcasted transactions.
+		let Ok(decoded_extrinsic) = TransactionFor::<Pool>::decode(&mut &bytes[..]) else {
+			return Ok(Some(id));
+		};
+		// Save the tx hash to remove it later.
+		let tx_hash = pool.hash_of(&decoded_extrinsic);
+
 		let mut best_block_import_stream =
 			Box::pin(self.client.import_notification_stream().filter_map(
 				|notification| async move { notification.is_new_best.then_some(notification.hash) },
 			));
 
 		let broadcast_transaction_fut = async move {
-			// There is nothing we could do with an extrinsic of invalid format.
-			let Ok(decoded_extrinsic) = TransactionFor::<Pool>::decode(&mut &bytes[..]) else {
-				return;
-			};
-
 			// Flag to determine if the we should broadcast the transaction again.
 			let mut is_done = false;
 
@@ -169,17 +176,26 @@ where
 		let (fut, handle) = futures::future::abortable(broadcast_transaction_fut);
 		let broadcast_ids = self.broadcast_ids.clone();
 		let drop_id = id.clone();
+		let pool = self.pool.clone();
 		// The future expected by the executor must be `Future<Output = ()>` instead of
 		// `Future<Output = Result<(), Aborted>>`.
-		let fut = fut.map(move |_| {
+		let fut = fut.map(move |result| {
 			// Remove the entry from the broadcast IDs map.
-			broadcast_ids.write().remove(&drop_id);
+			let Some(broadcast_state) = broadcast_ids.write().remove(&drop_id) else { return };
+
+			// The broadcast was not stopped.
+			if result.is_ok() {
+				return
+			}
+
+			// Best effort pool removal (tx can already be finalized).
+			pool.remove_invalid(&[broadcast_state.tx_hash]);
 		});
 
 		// Keep track of this entry and the abortable handle.
 		{
 			let mut broadcast_ids = self.broadcast_ids.write();
-			broadcast_ids.insert(id.clone(), BroadcastState { handle });
+			broadcast_ids.insert(id.clone(), BroadcastState { handle, tx_hash });
 		}
 
 		sc_rpc::utils::spawn_subscription_task(&self.executor, fut);