diff --git a/irohad/network/impl/peer_communication_service_impl.cpp b/irohad/network/impl/peer_communication_service_impl.cpp
index 58a029a000..3dddd7bb66 100644
--- a/irohad/network/impl/peer_communication_service_impl.cpp
+++ b/irohad/network/impl/peer_communication_service_impl.cpp
@@ -16,6 +16,8 @@ limitations under the License.
 
 #include "network/impl/peer_communication_service_impl.hpp"
 
+#include "interfaces/iroha_internal/transaction_batch.hpp"
+
 namespace iroha {
   namespace network {
     PeerCommunicationServiceImpl::PeerCommunicationServiceImpl(
@@ -30,12 +32,20 @@ namespace iroha {
     }
 
     void PeerCommunicationServiceImpl::propagate_transaction(
-        std::shared_ptr<const shared_model::interface::Transaction>
-            transaction) {
+        std::shared_ptr<const shared_model::interface::Transaction> transaction)
+        const {
       log_->info("propagate tx");
       ordering_gate_->propagateTransaction(transaction);
     }
 
+    void PeerCommunicationServiceImpl::propagate_batch(
+        const shared_model::interface::TransactionBatch &batch) const {
+      log_->info("propagate batch");
+      for (const auto tx : batch.transactions()) {
+        ordering_gate_->propagateTransaction(tx);
+      }
+    }
+
     rxcpp::observable<std::shared_ptr<shared_model::interface::Proposal>>
     PeerCommunicationServiceImpl::on_proposal() const {
       return ordering_gate_->on_proposal();
diff --git a/irohad/network/impl/peer_communication_service_impl.hpp b/irohad/network/impl/peer_communication_service_impl.hpp
index 8ac586efde..489236a092 100644
--- a/irohad/network/impl/peer_communication_service_impl.hpp
+++ b/irohad/network/impl/peer_communication_service_impl.hpp
@@ -37,7 +37,10 @@ namespace iroha {
 
       void propagate_transaction(
           std::shared_ptr<const shared_model::interface::Transaction>
-              transaction) override;
+              transaction) const override;
+
+      void propagate_batch(const shared_model::interface::TransactionBatch
+                               &batch) const override;
 
       rxcpp::observable<std::shared_ptr<shared_model::interface::Proposal>>
       on_proposal() const override;
diff --git a/irohad/network/peer_communication_service.hpp b/irohad/network/peer_communication_service.hpp
index be4243abc1..6a6bf6c6da 100644
--- a/irohad/network/peer_communication_service.hpp
+++ b/irohad/network/peer_communication_service.hpp
@@ -27,6 +27,7 @@ namespace shared_model {
     class Block;
     class Proposal;
     class Transaction;
+    class TransactionBatch;
   }  // namespace interface
 }  // namespace shared_model
 
@@ -48,7 +49,14 @@ namespace iroha {
        */
       virtual void propagate_transaction(
           std::shared_ptr<const shared_model::interface::Transaction>
-              transaction) = 0;
+              transaction) const = 0;
+
+      /**
+       * Propagate batch to the network
+       * @param batch - batch for propagation
+       */
+      virtual void propagate_batch(
+          const shared_model::interface::TransactionBatch &batch) const = 0;
 
       /**
        * Event is triggered when proposal arrives from network.
diff --git a/irohad/torii/processor/impl/transaction_processor_impl.cpp b/irohad/torii/processor/impl/transaction_processor_impl.cpp
index f53c994dcd..332bec52de 100644
--- a/irohad/torii/processor/impl/transaction_processor_impl.cpp
+++ b/irohad/torii/processor/impl/transaction_processor_impl.cpp
@@ -22,6 +22,7 @@
 #include "backend/protobuf/transaction.hpp"
 #include "interfaces/iroha_internal/block.hpp"
 #include "interfaces/iroha_internal/proposal.hpp"
+#include "interfaces/iroha_internal/transaction_sequence.hpp"
 #include "validation/stateful_validator_common.hpp"
 
 namespace iroha {
@@ -146,7 +147,8 @@ namespace iroha {
     }
 
     void TransactionProcessorImpl::transactionHandle(
-        std::shared_ptr<shared_model::interface::Transaction> transaction) {
+        std::shared_ptr<shared_model::interface::Transaction> transaction)
+        const {
       log_->info("handle transaction");
       if (boost::size(transaction->signatures()) < transaction->quorum()) {
         log_->info("waiting for quorum signatures");
@@ -158,6 +160,22 @@ namespace iroha {
       pcs_->propagate_transaction(transaction);
     }
 
+    void TransactionProcessorImpl::transactionSequenceHandle(
+        const shared_model::interface::TransactionSequence
+            &transaction_sequence) const {
+      for (const auto &batch : transaction_sequence.batches()) {
+        if (batch.hasAllSignatures()) {
+          pcs_->propagate_batch(batch);
+        } else {
+          // TODO kamilsa 16.07.18 propagate full batch to mst when its
+          // interface is updated
+          for (const auto tx : batch.transactions()) {
+            mst_processor_->propagateTransaction(tx);
+          }
+        }
+      }
+    }
+
     rxcpp::observable<
         std::shared_ptr<shared_model::interface::TransactionResponse>>
     TransactionProcessorImpl::transactionNotifier() {
diff --git a/irohad/torii/processor/transaction_processor.hpp b/irohad/torii/processor/transaction_processor.hpp
index 3892ae10d6..e40b9dbfc1 100644
--- a/irohad/torii/processor/transaction_processor.hpp
+++ b/irohad/torii/processor/transaction_processor.hpp
@@ -24,6 +24,7 @@ namespace shared_model {
   namespace interface {
     class Transaction;
     class TransactionResponse;
+    class TransactionSequence;
   }  // namespace interface
 }  // namespace shared_model
 
@@ -42,7 +43,16 @@ namespace iroha {
        */
       virtual void transactionHandle(
           std::shared_ptr<shared_model::interface::Transaction>
-              transaction) = 0;
+              transaction) const = 0;
+
+      /**
+       * Process transaction sequence and propagate batches from it either to
+       * the MST or PCS
+       * @param transaction_sequence - transaction sequence for processing
+       */
+      virtual void transactionSequenceHandle(
+          const shared_model::interface::TransactionSequence
+              &transaction_sequence) const = 0;
 
       /**
        * Subscribers will be notified with transaction status
diff --git a/irohad/torii/processor/transaction_processor_impl.hpp b/irohad/torii/processor/transaction_processor_impl.hpp
index 6f8915ce7a..7a2ff0c53e 100644
--- a/irohad/torii/processor/transaction_processor_impl.hpp
+++ b/irohad/torii/processor/transaction_processor_impl.hpp
@@ -40,7 +40,11 @@ namespace iroha {
 
       void transactionHandle(
           std::shared_ptr<shared_model::interface::Transaction> transaction)
-          override;
+          const override;
+
+      void transactionSequenceHandle(
+          const shared_model::interface::TransactionSequence
+              &transaction_sequence) const override;
 
       rxcpp::observable<
           std::shared_ptr<shared_model::interface::TransactionResponse>>
diff --git a/test/framework/batch_helper.hpp b/test/framework/batch_helper.hpp
index 58cd0706b2..929747bcb1 100644
--- a/test/framework/batch_helper.hpp
+++ b/test/framework/batch_helper.hpp
@@ -7,7 +7,11 @@
 #define IROHA_BATCH_HELPER_HPP
 
 #include <boost/range/irange.hpp>
+
+#include "framework/result_fixture.hpp"
+#include "interfaces/iroha_internal/transaction_batch.hpp"
 #include "module/shared_model/builders/protobuf/test_transaction_builder.hpp"
+#include "validators/transactions_collection/batch_order_validator.hpp"
 
 namespace framework {
   namespace batch {
@@ -165,6 +169,32 @@ namespace framework {
       return createUnsignedBatchTransactions(batch_type, creators, now);
     }
 
+    auto createValidBatch(const size_t &size) {
+      using namespace shared_model::validation;
+      using TxValidator =
+          TransactionValidator<FieldValidator,
+                               CommandValidatorVisitor<FieldValidator>>;
+
+      using TxsValidator =
+          UnsignedTransactionsCollectionValidator<TxValidator,
+                                                  BatchOrderValidator>;
+
+      auto batch_type = shared_model::interface::types::BatchType::ATOMIC;
+      std::vector<std::pair<decltype(batch_type), std::string>>
+          transaction_fields;
+      for (size_t i = 0; i < size; ++i) {
+        transaction_fields.push_back(std::make_pair(
+            batch_type, "account" + std::to_string(i) + "@domain"));
+      }
+
+      auto txs = createBatchOneSignTransactions(transaction_fields);
+      auto result_batch =
+          shared_model::interface::TransactionBatch::createTransactionBatch(
+              txs, TxsValidator());
+
+      return framework::expected::val(result_batch).value().value;
+    }
+
   }  // namespace batch
 }  // namespace framework
 
diff --git a/test/module/irohad/network/network_mocks.hpp b/test/module/irohad/network/network_mocks.hpp
index 62c540a10b..b37eac58a2 100644
--- a/test/module/irohad/network/network_mocks.hpp
+++ b/test/module/irohad/network/network_mocks.hpp
@@ -19,6 +19,7 @@
 #define IROHA_NETWORK_MOCKS_HPP
 
 #include <gmock/gmock.h>
+#include "interfaces/iroha_internal/transaction_batch.hpp"
 #include "network/block_loader.hpp"
 #include "network/consensus_gate.hpp"
 #include "network/ordering_gate.hpp"
@@ -34,10 +35,13 @@ namespace iroha {
   namespace network {
     class MockPeerCommunicationService : public PeerCommunicationService {
      public:
-      MOCK_METHOD1(
+      MOCK_CONST_METHOD1(
           propagate_transaction,
           void(std::shared_ptr<const shared_model::interface::Transaction>));
 
+      MOCK_CONST_METHOD1(propagate_batch,
+                   void(const shared_model::interface::TransactionBatch &));
+
       MOCK_CONST_METHOD0(
           on_proposal,
           rxcpp::observable<
diff --git a/test/module/irohad/torii/processor/transaction_processor_test.cpp b/test/module/irohad/torii/processor/transaction_processor_test.cpp
index 157923f328..4765b570a0 100644
--- a/test/module/irohad/torii/processor/transaction_processor_test.cpp
+++ b/test/module/irohad/torii/processor/transaction_processor_test.cpp
@@ -7,8 +7,10 @@
 #include "builders/protobuf/common_objects/proto_signature_builder.hpp"
 #include "builders/protobuf/proposal.hpp"
 #include "builders/protobuf/transaction.hpp"
+#include "framework/batch_helper.hpp"
 #include "framework/specified_visitor.hpp"
 #include "framework/test_subscriber.hpp"
+#include "interfaces/iroha_internal/transaction_sequence.hpp"
 #include "module/irohad/multi_sig_transactions/mst_mocks.hpp"
 #include "module/irohad/network/network_mocks.hpp"
 #include "module/shared_model/builders/protobuf/test_block_builder.hpp"
@@ -140,6 +142,66 @@ TEST_F(TransactionProcessorTest, TransactionProcessorOnProposalTest) {
   validateStatuses<shared_model::interface::StatelessValidTxResponse>(txs);
 }
 
+/**
+ * @given transactions from the same batch
+ * @when transactions sequence is created and propagated @and all transactions
+ * were returned by pcs in proposal notifier
+ * @then all transactions have stateless valid status
+ */
+TEST_F(TransactionProcessorTest, TransactionProcessorOnProposalBatchTest) {
+  using namespace shared_model::validation;
+  using TxValidator =
+      TransactionValidator<FieldValidator,
+                           CommandValidatorVisitor<FieldValidator>>;
+
+  using TxsValidator =
+      UnsignedTransactionsCollectionValidator<TxValidator, BatchOrderValidator>;
+
+  auto transactions =
+      framework::batch::createValidBatch(proposal_size).transactions();
+
+  auto wrapper =
+      make_test_subscriber<CallExact>(tp->transactionNotifier(), proposal_size);
+  wrapper.subscribe([this](auto response) {
+    status_map[response->transactionHash()] = response;
+  });
+
+  auto transaction_sequence_result =
+      shared_model::interface::TransactionSequence::createTransactionSequence(
+          transactions, TxsValidator());
+  auto transaction_sequence =
+      framework::expected::val(transaction_sequence_result).value().value;
+
+  EXPECT_CALL(*mp, propagateTransactionImpl(_)).Times(0);
+  EXPECT_CALL(*pcs, propagate_batch(_))
+      .Times(transaction_sequence.batches().size());
+
+  tp->transactionSequenceHandle(transaction_sequence);
+
+  // create proposal from sequence transactions and notify about it
+  std::vector<shared_model::proto::Transaction> proto_transactions;
+
+  std::transform(
+      transactions.begin(),
+      transactions.end(),
+      std::back_inserter(proto_transactions),
+      [](const auto tx) {
+        return *std::static_pointer_cast<shared_model::proto::Transaction>(tx);
+      });
+
+  auto proposal = std::make_shared<shared_model::proto::Proposal>(
+      TestProposalBuilder().transactions(proto_transactions).build());
+
+  prop_notifier.get_subscriber().on_next(proposal);
+  prop_notifier.get_subscriber().on_completed();
+
+  ASSERT_TRUE(wrapper.validate());
+
+  SCOPED_TRACE("Stateless valid status verification");
+  validateStatuses<shared_model::interface::StatelessValidTxResponse>(
+      proto_transactions);
+}
+
 /**
  * @given transaction processor
  * @when transactions compose proposal which is sent to peer
diff --git a/test/module/irohad/torii/torii_service_test.cpp b/test/module/irohad/torii/torii_service_test.cpp
index 3f1f35cfcf..c28deb1aa1 100644
--- a/test/module/irohad/torii/torii_service_test.cpp
+++ b/test/module/irohad/torii/torii_service_test.cpp
@@ -62,7 +62,10 @@ class CustomPeerCommunicationServiceMock : public PeerCommunicationService {
 
   void propagate_transaction(
       std::shared_ptr<const shared_model::interface::Transaction> transaction)
-      override {}
+      const override {}
+
+  void propagate_batch(
+      const shared_model::interface::TransactionBatch &batch) const override {}
 
   rxcpp::observable<std::shared_ptr<shared_model::interface::Proposal>>
   on_proposal() const override {