diff --git a/apps/explorer/lib/explorer/chain/import/runner/transactions.ex b/apps/explorer/lib/explorer/chain/import/runner/transactions.ex
index e155a84e23..63b833e3f3 100644
--- a/apps/explorer/lib/explorer/chain/import/runner/transactions.ex
+++ b/apps/explorer/lib/explorer/chain/import/runner/transactions.ex
@@ -42,9 +42,17 @@ defmodule Explorer.Chain.Import.Runner.Transactions do
       |> Map.put(:timestamps, timestamps)
       |> Map.put(:token_transfer_transaction_hash_set, token_transfer_transaction_hash_set(options))
 
-    Multi.run(multi, :transactions, fn repo, _ ->
+    transactions_timeout = options[option_key()][:timeout] || timeout()
+
+    update_transactions_options = %{timeout: transactions_timeout}
+
+    multi
+    |> Multi.run(:transactions, fn repo, _ ->
       insert(repo, changes_list, insert_options)
     end)
+    |> Multi.run(:replaced_transactions, fn repo, %{transactions: transactions} ->
+      update_replaced_transactions(repo, transactions, update_transactions_options)
+    end)
   end
 
   @impl Import.Runner
@@ -178,4 +186,29 @@ defmodule Explorer.Chain.Import.Runner.Transactions do
   end
 
   defp put_internal_transactions_indexed_at?(_, _), do: false
+
+  defp update_replaced_transactions(repo, transactions, %{timeout: timeout}) do
+    transactions
+    |> Enum.filter(& &1.transaction.block_hash)
+    |> Enum.map(fn transaction -> {transaction.nonce, transaction.from_address_hash} end)
+    |> Enum.uniq()
+    |> Enum.map(fn {nonce, from_address_hash} ->
+      from(t in Transaction,
+        where: t.nonce == ^nonce and t.from_address_hash == ^from_address_hash and is_nil(t.block_hash),
+        update: [
+          set: [status: ^:error, error: "dropped/replaced"]
+        ]
+      )
+    end)
+    |> Enum.map(fn query ->
+      try do
+        {_, result} = repo.update(query, [], timeout: timeout)
+
+        {:ok, result}
+      rescue
+        postgrex_error in Postgrex.Error ->
+          {:error, %{exception: postgrex_error, query: query}}
+      end
+    end)
+  end
 end
diff --git a/apps/explorer/priv/repo/migrations/20190124082812_add_index_on_transaction_nonce_and_from_address_hash.exs b/apps/explorer/priv/repo/migrations/20190124082812_add_index_on_transaction_nonce_and_from_address_hash.exs
new file mode 100644
index 0000000000..fd53e4fcc0
--- /dev/null
+++ b/apps/explorer/priv/repo/migrations/20190124082812_add_index_on_transaction_nonce_and_from_address_hash.exs
@@ -0,0 +1,26 @@
+defmodule Explorer.Repo.Migrations.AddIndexOnTransactionNonceAndFromAddressHash do
+  use Ecto.Migration
+
+  alias Ecto.Adapters.SQL
+  alias Explorer.Repo
+
+  # 30 minutes
+  @timeout 60_000 * 30
+
+  def change do
+    create(index(:transactions, [:nonce, :from_address_hash]))
+    # for replaced/dropeed transactions
+    create(index(:transactions, [:block_hash, :error]))
+
+    query = "UPDATE transactions SET error = 'dropped/replaced', status = 0 FROM transactions t1
+    INNER JOIN transactions t2
+    ON t1.from_address_hash = t2.from_address_hash AND t1.nonce = t2.nonce
+    WHERE t1.block_hash IS NULL AND t2.block_hash IS NOT NULL"
+
+    SQL.query!(
+      Repo,
+      query,
+      timeout: @timeout
+    )
+  end
+end