diff --git a/apps/explorer/lib/explorer/chain.ex b/apps/explorer/lib/explorer/chain.ex
index f9ccc80da2..116662c12b 100644
--- a/apps/explorer/lib/explorer/chain.ex
+++ b/apps/explorer/lib/explorer/chain.ex
@@ -2125,6 +2125,26 @@ defmodule Explorer.Chain do
     |> Repo.all()
   end
 
+  @doc """
+  Finds replaced/dropped transactions and sets their status to `:error` with `dropped/replaced` error.
+  """
+  @spec update_replaced_transactions(:infinity | non_neg_integer()) :: {integer(), nil | [term()]}
+  def update_replaced_transactions(timeout \\ :infinity) do
+    query =
+      from(transaction in Transaction,
+        where: is_nil(transaction.block_number),
+        join: mined_transaction in Transaction,
+        where:
+          transaction.from_address_hash == mined_transaction.from_address_hash and
+            transaction.nonce == mined_transaction.nonce and not is_nil(mined_transaction.block_number),
+        update: [
+          set: [status: ^:error, error: "dropped/replaced"]
+        ]
+      )
+
+    Repo.update_all(query, [], timeout: timeout)
+  end
+
   @doc """
   Update a new `t:Token.t/0` record.
 
diff --git a/apps/explorer/test/explorer/chain_test.exs b/apps/explorer/test/explorer/chain_test.exs
index 73fbc8bd57..738a1e4443 100644
--- a/apps/explorer/test/explorer/chain_test.exs
+++ b/apps/explorer/test/explorer/chain_test.exs
@@ -937,6 +937,60 @@ defmodule Explorer.ChainTest do
     end
   end
 
+  describe "update_replaced_transactions" do
+    test "finds and updates replaced transaction" do
+      common_from_address_hash = %Explorer.Chain.Hash{
+        byte_count: 20,
+        bytes: <<0x4615CC10092B514258577DAFCA98C142577F1578::big-integer-size(20)-unit(8)>>
+      }
+
+      address = insert(:address, hash: common_from_address_hash)
+
+      common_nonce = 10
+
+      replaced_transaction_hash = %Explorer.Chain.Hash{
+        byte_count: 32,
+        bytes: <<0x9FC76417374AA880D4449A1F7F31EC597F00B1F6F3DD2D66F4C9C6C445836D8B::big-integer-size(32)-unit(8)>>
+      }
+
+      insert(:transaction,
+        hash: replaced_transaction_hash,
+        nonce: common_nonce,
+        from_address: address
+      )
+
+      mined_transaction_hash = %Explorer.Chain.Hash{
+        byte_count: 32,
+        bytes: <<0x8FC76417374AA880D4449A1F7F31EC597F00B1F6F3DD2D66F4C9C6C445836D8B::big-integer-size(32)-unit(8)>>
+      }
+
+      block = insert(:block)
+
+      insert(:transaction,
+        hash: mined_transaction_hash,
+        nonce: common_nonce,
+        from_address: address,
+        block_number: block.number,
+        block_hash: block.hash,
+        cumulative_gas_used: 10,
+        gas_used: 1,
+        index: 0,
+        status: :ok
+      )
+
+      {1, nil} = Explorer.Chain.update_replaced_transactions()
+
+      found_replaced_transaction =
+        Repo.one!(
+          from(transaction in Transaction,
+            where: transaction.status == ^:error and transaction.error == "dropped/replaced"
+          )
+        )
+
+      assert found_replaced_transaction.hash == replaced_transaction_hash
+    end
+  end
+
   # Full tests in `test/explorer/import_test.exs`
   describe "import/1" do
     @import_data %{
diff --git a/apps/indexer/lib/indexer/replaced_transaction/fetcher.ex b/apps/indexer/lib/indexer/replaced_transaction/fetcher.ex
index 4a0b8f433c..679d4d8c43 100644
--- a/apps/indexer/lib/indexer/replaced_transaction/fetcher.ex
+++ b/apps/indexer/lib/indexer/replaced_transaction/fetcher.ex
@@ -6,14 +6,12 @@ defmodule Indexer.ReplacedTransaction.Fetcher do
 
   This fetcher finds these transaction and sets them `failed` status with `dropped/replaced` error.
   """
+
   use GenServer
 
   require Logger
 
-  import Ecto.Query, only: [from: 2]
-
-  alias Explorer.Chain.Transaction
-  alias Explorer.Repo
+  alias Explorer.Chain
   alias Indexer.ReplacedTransaction
 
   # 1 second
@@ -23,6 +21,7 @@ defmodule Indexer.ReplacedTransaction.Fetcher do
   @query_timeout 60_000
 
   defstruct interval: @default_interval,
+            query_timeout: @query_timeout,
             task: nil
 
   def child_spec([init_arguments]) do
@@ -53,7 +52,8 @@ defmodule Indexer.ReplacedTransaction.Fetcher do
 
     state =
       %__MODULE__{
-        interval: opts[:replaced_transaction_interval] || @default_interval
+        interval: opts[:replaced_transaction_interval] || @default_interval,
+        query_timeout: opts[:replaced_transaction_query_timeout] || @query_timeout,
       }
       |> schedule_find()
 
@@ -62,7 +62,7 @@ defmodule Indexer.ReplacedTransaction.Fetcher do
 
   @impl GenServer
   def handle_info(:find, %__MODULE__{} = state) do
-    task = Task.Supervisor.async_nolink(ReplacedTransaction.TaskSupervisor, fn -> task() end)
+    task = Task.Supervisor.async_nolink(ReplacedTransaction.TaskSupervisor, fn -> task(state) end)
     {:noreply, %__MODULE__{state | task: task}}
   end
 
@@ -86,23 +86,11 @@ defmodule Indexer.ReplacedTransaction.Fetcher do
     %__MODULE__{state | task: nil}
   end
 
-  defp task do
+  defp task(%__MODULE__{query_timeout: query_timeout}) do
     Logger.metadata(fetcher: :replaced_transaction)
 
-    query =
-      from(transaction in Transaction,
-        where: is_nil(transaction.block_number),
-        join: mined_transaction in Transaction,
-        where:
-          transaction.from_address_hash == mined_transaction.from_address_hash and
-            transaction.nonce == mined_transaction.nonce and not is_nil(mined_transaction.block_number),
-        update: [
-          set: [status: ^:error, error: "dropped/replaced"]
-        ]
-      )
-
     try do
-      Repo.update_all(query, [], timeout: @query_timeout)
+      Chain.update_replaced_transactions(query_timeout)
     rescue
       error ->
         Logger.error(fn -> ["Failed to make pending transactions dropped: ", inspect(error)] end)