diff --git a/posting/mvcc.go b/posting/mvcc.go
index d228ad10f0d..c052422ff6e 100644
--- a/posting/mvcc.go
+++ b/posting/mvcc.go
@@ -235,7 +235,7 @@ func (txn *Txn) addConflictKey(conflictKey uint64) {
 }
 
 // FillContext updates the given transaction context with data from this transaction.
-func (txn *Txn) FillContext(ctx *api.TxnContext, gid uint32) {
+func (txn *Txn) FillContext(ctx *api.TxnContext, gid uint32, isErrored bool) {
 	txn.Lock()
 	ctx.StartTs = txn.StartTs
 
@@ -249,7 +249,12 @@ func (txn *Txn) FillContext(ctx *api.TxnContext, gid uint32) {
 	ctx.Keys = x.Unique(ctx.Keys)
 
 	txn.Unlock()
-	txn.Update()
+	// If the trasnaction has errored out, we don't need to update it, as these values will never be read.
+	// Sometimes, the transaction might have failed due to timeout. If we let this trasnactino update, there
+	// could be deadlock with the running transaction.
+	if !isErrored {
+		txn.Update()
+	}
 	txn.cache.fillPreds(ctx, gid)
 }
 
diff --git a/query/vector/vector_test.go b/query/vector/vector_test.go
index 7ad9dab6091..2bd4554314e 100644
--- a/query/vector/vector_test.go
+++ b/query/vector/vector_test.go
@@ -29,6 +29,7 @@ import (
 
 	"github.com/dgraph-io/dgo/v230/protos/api"
 	"github.com/dgraph-io/dgraph/dgraphtest"
+	"github.com/dgraph-io/dgraph/x"
 	"github.com/stretchr/testify/require"
 )
 
@@ -432,6 +433,48 @@ func TestVectorsMutateFixedLengthWithDiffrentIndexes(t *testing.T) {
 	dropPredicate("vtest")
 }
 
+func TestVectorDeadlockwithTimeout(t *testing.T) {
+	pred := "vtest1"
+	dc = dgraphtest.NewComposeCluster()
+	var cleanup func()
+	client, cleanup, err := dc.Client()
+	x.Panic(err)
+	defer cleanup()
+
+	for i := 0; i < 5; i++ {
+		fmt.Println("Testing iteration: ", i)
+		ctx, cancel2 := context.WithTimeout(context.Background(), 5*time.Second)
+		defer cancel2()
+		err = client.LoginIntoNamespace(ctx, dgraphtest.DefaultUser,
+			dgraphtest.DefaultPassword, x.GalaxyNamespace)
+		require.NoError(t, err)
+
+		err = client.Alter(context.Background(), &api.Operation{
+			DropAttr: pred,
+		})
+		dropPredicate(pred)
+		setSchema(fmt.Sprintf(vectorSchemaWithIndex, pred, "4", "euclidian"))
+		numVectors := 1000
+		vectorSize := 10
+
+		randomVectors, _ := generateRandomVectors(numVectors, vectorSize, pred)
+
+		txn := client.NewTxn()
+		ctx, cancel := context.WithTimeout(context.Background(), time.Second)
+		defer func() { _ = txn.Discard(ctx) }()
+		defer cancel()
+
+		_, err = txn.Mutate(ctx, &api.Mutation{
+			SetNquads: []byte(randomVectors),
+			CommitNow: true,
+		})
+		require.Error(t, err)
+
+		err = txn.Commit(ctx)
+		require.Contains(t, err.Error(), "Transaction has already been committed or discarded")
+	}
+}
+
 func TestVectorMutateDiffrentLengthWithDiffrentIndexes(t *testing.T) {
 	dropPredicate("vtest")
 
diff --git a/systest/vector/backup_test.go b/systest/vector/backup_test.go
index f11eb8b75ff..f1706e44b0b 100644
--- a/systest/vector/backup_test.go
+++ b/systest/vector/backup_test.go
@@ -235,3 +235,54 @@ func TestVectorBackupRestoreDropIndex(t *testing.T) {
 		}
 	}
 }
+
+func TestVectorBackupRestoreReIndexing(t *testing.T) {
+	conf := dgraphtest.NewClusterConfig().WithNumAlphas(1).WithNumZeros(1).WithReplicas(1).WithACL(time.Hour)
+	c, err := dgraphtest.NewLocalCluster(conf)
+	require.NoError(t, err)
+	defer func() { c.Cleanup(t.Failed()) }()
+	require.NoError(t, c.Start())
+
+	gc, cleanup, err := c.Client()
+	require.NoError(t, err)
+	defer cleanup()
+	require.NoError(t, gc.LoginIntoNamespace(context.Background(),
+		dgraphtest.DefaultUser, dgraphtest.DefaultPassword, x.GalaxyNamespace))
+
+	hc, err := c.HTTPClient()
+	require.NoError(t, err)
+	require.NoError(t, hc.LoginIntoNamespace(dgraphtest.DefaultUser,
+		dgraphtest.DefaultPassword, x.GalaxyNamespace))
+
+	require.NoError(t, gc.SetupSchema(testSchema))
+
+	numVectors := 1000
+	pred := "project_discription_v"
+	rdfs, vectors := dgraphtest.GenerateRandomVectors(0, numVectors, 10, pred)
+
+	mu := &api.Mutation{SetNquads: []byte(rdfs), CommitNow: true}
+	_, err = gc.Mutate(mu)
+	require.NoError(t, err)
+
+	t.Log("taking backup \n")
+	require.NoError(t, hc.Backup(c, false, dgraphtest.DefaultBackupDir))
+
+	rdfs2, vectors2 := dgraphtest.GenerateRandomVectors(numVectors, numVectors+300, 10, pred)
+
+	mu = &api.Mutation{SetNquads: []byte(rdfs2), CommitNow: true}
+	_, err = gc.Mutate(mu)
+	require.NoError(t, err)
+	t.Log("restoring backup \n")
+	require.NoError(t, hc.Restore(c, dgraphtest.DefaultBackupDir, "", 2, 1))
+	require.NoError(t, dgraphtest.WaitForRestore(c))
+
+	for i := 0; i < 5; i++ {
+		// drop index
+		require.NoError(t, gc.SetupSchema(testSchemaWithoutIndex))
+		// add index
+		require.NoError(t, gc.SetupSchema(testSchema))
+	}
+	vectors = append(vectors, vectors2...)
+	rdfs = rdfs + rdfs2
+	testVectorQuery(t, gc, vectors, rdfs, pred, numVectors)
+}
diff --git a/tok/hnsw/helper.go b/tok/hnsw/helper.go
index f42431a9143..033ef40a99d 100644
--- a/tok/hnsw/helper.go
+++ b/tok/hnsw/helper.go
@@ -433,9 +433,10 @@ func (ph *persistentHNSW[T]) createEntryAndStartNodes(
 	err := ph.getVecFromUid(entry, c, vec)
 	if err != nil || len(*vec) == 0 {
 		// The entry vector has been deleted. We have to create a new entry vector.
-		entry, err := ph.PickStartNode(ctx, c, vec)
+		entry, err := ph.calculateNewEntryVec(ctx, c, vec)
 		if err != nil {
-			return 0, []*index.KeyValue{}, err
+			// No other node exists, go with the new node that has come
+			return create_edges(inUuid)
 		}
 		return create_edges(entry)
 	}
diff --git a/worker/draft.go b/worker/draft.go
index 23b92099a57..dd4230d6031 100644
--- a/worker/draft.go
+++ b/worker/draft.go
@@ -549,12 +549,19 @@ func (n *node) applyMutations(ctx context.Context, proposal *pb.Proposal) (rerr
 			errCh <- process(m.Edges[start:end])
 		}(start, end)
 	}
+	// Earlier we were returning after even if one thread had an error. We should wait for
+	// all the transactions to finish. We call txn.Update() when this function exists. This could cause
+	// a deadlock with runMutation.
+	var errs error
 	for i := 0; i < numGo; i++ {
 		if err := <-errCh; err != nil {
-			return err
+			if errs == nil {
+				errs = errors.New("Got error while running mutation")
+			}
+			errs = errors.Wrapf(err, errs.Error())
 		}
 	}
-	return nil
+	return errs
 }
 
 func (n *node) applyCommitted(proposal *pb.Proposal, key uint64) error {
@@ -839,7 +846,10 @@ func (n *node) commitOrAbort(pkey uint64, delta *pb.OracleDelta) error {
 		if txn == nil {
 			return
 		}
-		txn.Update()
+		// If the transaction has failed, we dont need to update it.
+		if commit != 0 {
+			txn.Update()
+		}
 		// We start with 20 ms, so that we end up waiting 5 mins by the end.
 		// If there is any transient issue, it should get fixed within that timeframe.
 		err := x.ExponentialRetry(int(x.Config.MaxRetries),
diff --git a/worker/mutation.go b/worker/mutation.go
index abae1515dde..71b3db0cbc0 100644
--- a/worker/mutation.go
+++ b/worker/mutation.go
@@ -642,9 +642,9 @@ func Timestamps(ctx context.Context, num *pb.Num) (*pb.AssignedIds, error) {
 	return c.Timestamps(ctx, num)
 }
 
-func fillTxnContext(tctx *api.TxnContext, startTs uint64) {
+func fillTxnContext(tctx *api.TxnContext, startTs uint64, isErrored bool) {
 	if txn := posting.Oracle().GetTxn(startTs); txn != nil {
-		txn.FillContext(tctx, groups().groupId())
+		txn.FillContext(tctx, groups().groupId(), isErrored)
 	}
 	// We do not need to fill linread mechanism anymore, because transaction
 	// start ts is sufficient to wait for, to achieve lin reads.
@@ -950,7 +950,8 @@ func (w *grpcWorker) proposeAndWait(ctx context.Context, txnCtx *api.TxnContext,
 
 	node := groups().Node
 	err := node.proposeAndWait(ctx, &pb.Proposal{Mutations: m})
-	fillTxnContext(txnCtx, m.StartTs)
+	// When we are filling txn context, we don't need to update latest delta if the transaction has failed.
+	fillTxnContext(txnCtx, m.StartTs, err != nil)
 	return err
 }