diff --git a/apps/indexer/lib/indexer/internal_transaction/fetcher.ex b/apps/indexer/lib/indexer/internal_transaction/fetcher.ex
index 5cf6df501e..d103e054c8 100644
--- a/apps/indexer/lib/indexer/internal_transaction/fetcher.ex
+++ b/apps/indexer/lib/indexer/internal_transaction/fetcher.ex
@@ -113,7 +113,12 @@ defmodule Indexer.InternalTransaction.Fetcher do
     |> EthereumJSONRPC.fetch_internal_transactions(json_rpc_named_arguments)
     |> case do
       {:ok, internal_transactions_params} ->
-        addresses_params = AddressExtraction.extract_addresses(%{internal_transactions: internal_transactions_params})
+        internal_transactions_params_without_failed_creations = remove_failed_creations(internal_transactions_params)
+
+        addresses_params =
+          AddressExtraction.extract_addresses(%{
+            internal_transactions: internal_transactions_params_without_failed_creations
+          })
 
         address_hash_to_block_number =
           Enum.into(addresses_params, %{}, fn %{fetched_coin_balance_block_number: block_number, hash: hash} ->
@@ -123,7 +128,7 @@ defmodule Indexer.InternalTransaction.Fetcher do
         with {:ok, imported} <-
                Chain.import(%{
                  addresses: %{params: addresses_params},
-                 internal_transactions: %{params: internal_transactions_params},
+                 internal_transactions: %{params: internal_transactions_params_without_failed_creations},
                  timeout: :infinity
                }) do
           async_import_coin_balances(imported, %{
@@ -197,4 +202,31 @@ defmodule Indexer.InternalTransaction.Fetcher do
       end
     end)
   end
+
+  defp remove_failed_creations(internal_transactions_params) do
+    internal_transactions_params
+    |> Enum.map(fn internal_transaction_params ->
+      internal_transaction_params[:trace_address]
+
+      failed_parent_index =
+        Enum.find(internal_transaction_params[:trace_address], fn trace_address ->
+          parent = Enum.at(internal_transactions_params, trace_address)
+
+          !is_nil(parent[:error])
+        end)
+
+      failed_parent = failed_parent_index && Enum.at(internal_transactions_params, failed_parent_index)
+
+      if failed_parent do
+        internal_transaction_params
+        |> Map.delete(:created_contract_address_hash)
+        |> Map.delete(:created_contract_code)
+        |> Map.delete(:gas_used)
+        |> Map.delete(:output)
+        |> Map.put(:error, failed_parent[:error])
+      else
+        internal_transaction_params
+      end
+    end)
+  end
 end
diff --git a/apps/indexer/test/indexer/internal_transaction/fetcher_test.exs b/apps/indexer/test/indexer/internal_transaction/fetcher_test.exs
index e81a5b4954..38213458e7 100644
--- a/apps/indexer/test/indexer/internal_transaction/fetcher_test.exs
+++ b/apps/indexer/test/indexer/internal_transaction/fetcher_test.exs
@@ -5,7 +5,7 @@ defmodule Indexer.InternalTransaction.FetcherTest do
   import ExUnit.CaptureLog
   import Mox
 
-  alias Explorer.Chain.{Hash, Transaction}
+  alias Explorer.Chain.{Address, Hash, Transaction}
 
   alias Indexer.{CoinBalance, InternalTransaction, PendingTransaction}
 
@@ -151,6 +151,82 @@ defmodule Indexer.InternalTransaction.FetcherTest do
                """
     end
 
+    @tag :no_parity
+    test "internal transactions with failed parent does not create a new address", %{
+      json_rpc_named_arguments: json_rpc_named_arguments
+    } do
+      if json_rpc_named_arguments[:transport] == EthereumJSONRPC.Mox do
+        expect(EthereumJSONRPC.Mox, :json_rpc, fn _json, _options ->
+          {:ok,
+           [
+             %{
+               id: 0,
+               jsonrpc: "2.0",
+               result: %{
+                 "output" => "0x",
+                 "stateDiff" => nil,
+                 "trace" => [
+                   %{
+                     "action" => %{
+                       "callType" => "call",
+                       "from" => "0xc73add416e2119d20ce80e0904fc1877e33ef246",
+                       "gas" => "0x13388",
+                       "input" => "0xc793bf97",
+                       "to" => "0x2d07e106b5d280e4ccc2d10deee62441c91d4340",
+                       "value" => "0x0"
+                     },
+                     "error" => "Reverted",
+                     "subtraces" => 1,
+                     "traceAddress" => [],
+                     "type" => "call"
+                   },
+                   %{
+                     "action" => %{
+                       "from" => "0x2d07e106b5d280e4ccc2d10deee62441c91d4340",
+                       "gas" => "0xb2ab",
+                       "init" =>
+                         "0x608060405234801561001057600080fd5b5060d38061001f6000396000f3fe6080604052600436106038577c010000000000000000000000000000000000000000000000000000000060003504633ccfd60b8114604f575b336000908152602081905260409020805434019055005b348015605a57600080fd5b5060616063565b005b33600081815260208190526040808220805490839055905190929183156108fc02918491818181858888f1935050505015801560a3573d6000803e3d6000fd5b505056fea165627a7a72305820e9a226f249def650de957dd8b4127b85a3049d6bfa818cadc4e2d3c44b6a53530029",
+                       "value" => "0x0"
+                     },
+                     "result" => %{
+                       "address" => "0xf4a5afe28b91cf928c2568805cfbb36d477f0b75",
+                       "code" =>
+                         "0x6080604052600436106038577c010000000000000000000000000000000000000000000000000000000060003504633ccfd60b8114604f575b336000908152602081905260409020805434019055005b348015605a57600080fd5b5060616063565b005b33600081815260208190526040808220805490839055905190929183156108fc02918491818181858888f1935050505015801560a3573d6000803e3d6000fd5b505056fea165627a7a72305820e9a226f249def650de957dd8b4127b85a3049d6bfa818cadc4e2d3c44b6a53530029",
+                       "gasUsed" => "0xa535"
+                     },
+                     "subtraces" => 0,
+                     "traceAddress" => [0],
+                     "type" => "create"
+                   }
+                 ],
+                 "vmTrace" => nil
+               }
+             }
+           ]}
+        end)
+
+        CoinBalance.Supervisor.Case.start_supervised!(json_rpc_named_arguments: json_rpc_named_arguments)
+
+        %Transaction{hash: %Hash{bytes: bytes}} =
+          insert(:transaction, hash: "0x03cd5899a63b6f6222afda8705d059fd5a7d126bcabe962fb654d9736e6bcafa")
+          |> with_block()
+
+        :ok =
+          InternalTransaction.Fetcher.run(
+            [
+              {7_202_692, bytes, 0}
+            ],
+            json_rpc_named_arguments
+          )
+
+        address = "0xf4a5afe28b91cf928c2568805cfbb36d477f0b75"
+
+        fetched_address = Repo.one(from(address in Address, where: address.hash == ^address))
+
+        assert is_nil(fetched_address)
+      end
+    end
+
     test "duplicate transaction hashes only retry uniques", %{json_rpc_named_arguments: json_rpc_named_arguments} do
       if json_rpc_named_arguments[:transport] == EthereumJSONRPC.Mox do
         expect(EthereumJSONRPC.Mox, :json_rpc, fn _json, _options ->