diff --git a/packages/protocol/contracts/L1/libs/LibEthDepositing.sol b/packages/protocol/contracts/L1/libs/LibEthDepositing.sol
index 7195aff4a93..c3e03131bea 100644
--- a/packages/protocol/contracts/L1/libs/LibEthDepositing.sol
+++ b/packages/protocol/contracts/L1/libs/LibEthDepositing.sol
@@ -101,10 +101,19 @@ library LibEthDepositing {
             }
         }
 
-        // resize the length of depositsProcessed to j.
         assembly {
             mstore(depositsProcessed, j)
-            depositsRoot := keccak256(depositsProcessed, mul(j, 32))
         }
+        depositsRoot = hashDeposits(depositsProcessed);
+    }
+
+    function hashDeposits(TaikoData.EthDeposit[] memory deposits) internal pure returns (bytes32) {
+        bytes memory buffer;
+
+        for (uint256 i = 0; i < deposits.length; i++) {
+            buffer = abi.encodePacked(buffer, deposits[i].recipient, deposits[i].amount);
+        }
+
+        return keccak256(buffer);
     }
 }
diff --git a/packages/protocol/test/TaikoL1.t.sol b/packages/protocol/test/TaikoL1.t.sol
index 42da4d326bd..b98f542559c 100644
--- a/packages/protocol/test/TaikoL1.t.sol
+++ b/packages/protocol/test/TaikoL1.t.sol
@@ -247,4 +247,49 @@ contract TaikoL1Test is TaikoL1TestBase {
         // Not found
         assertEq(bytes32(0), L1.getCrossChainSignalRoot((iterationCnt + 1)));
     }
+
+    function test_deposit_hash_creation() external {
+        uint96 minAmount = conf.minEthDepositAmount;
+        uint96 maxAmount = conf.maxEthDepositAmount;
+
+        // We need 8 depostis otherwise we are not processing them !
+        depositTaikoToken(Alice, 1e6 * 1e8, maxAmount + 1 ether);
+        depositTaikoToken(Bob, 0, maxAmount + 1 ether);
+        depositTaikoToken(Carol, 0, maxAmount + 1 ether);
+        depositTaikoToken(Dave, 0, maxAmount + 1 ether);
+        depositTaikoToken(Eve, 0, maxAmount + 1 ether);
+        depositTaikoToken(Frank, 0, maxAmount + 1 ether);
+        depositTaikoToken(George, 0, maxAmount + 1 ether);
+        depositTaikoToken(Hilbert, 0, maxAmount + 1 ether);
+
+        // So after this point we have 8 deposits
+        vm.prank(Alice, Alice);
+        L1.depositEtherToL2{value: 1 ether}();
+        vm.prank(Bob, Bob);
+        L1.depositEtherToL2{value: 2 ether}();
+        vm.prank(Carol, Carol);
+        L1.depositEtherToL2{value: 3 ether}();
+        vm.prank(Dave, Dave);
+        L1.depositEtherToL2{value: 4 ether}();
+        vm.prank(Eve, Eve);
+        L1.depositEtherToL2{value: 5 ether}();
+        vm.prank(Frank, Frank);
+        L1.depositEtherToL2{value: 6 ether}();
+        vm.prank(George, George);
+        L1.depositEtherToL2{value: 7 ether}();
+        vm.prank(Hilbert, Hilbert);
+        L1.depositEtherToL2{value: 8 ether}();
+
+        assertEq(L1.getStateVariables().numEthDeposits, 8); // The number of deposits
+        assertEq(L1.getStateVariables().nextEthDepositToProcess, 0); // The index / cursos of the next deposit
+
+        // We shall invoke proposeBlock() because this is what will call the processDeposits()
+        TaikoData.BlockMetadata memory meta = proposeBlock(Alice, 1000000, 1024);
+
+        // Expected: 0x8117066d69ff650d78f0d7383a10cc802c2b8c0eedd932d70994252e2438c636  (pre calculated with these values)
+        //console2.logBytes32(meta.depositsRoot);
+        assertEq(
+            meta.depositsRoot, 0x8117066d69ff650d78f0d7383a10cc802c2b8c0eedd932d70994252e2438c636
+        );
+    }
 }
diff --git a/packages/protocol/test/TaikoL1TestBase.t.sol b/packages/protocol/test/TaikoL1TestBase.t.sol
index 7d2bbe03ac6..73dfe75b2ce 100644
--- a/packages/protocol/test/TaikoL1TestBase.t.sol
+++ b/packages/protocol/test/TaikoL1TestBase.t.sol
@@ -43,6 +43,9 @@ abstract contract TaikoL1TestBase is Test {
     address public constant Carol = 0x300C9b60E19634e12FC6D68B7FEa7bFB26c2E419;
     address public constant Dave = 0x400147C0Eb43D8D71b2B03037bB7B31f8f78EF5F;
     address public constant Eve = 0x50081b12838240B1bA02b3177153Bca678a86078;
+    address public constant Frank = 0x430c9b60e19634e12FC6d68B7fEa7bFB26c2e419;
+    address public constant George = 0x520147C0eB43d8D71b2b03037bB7b31f8F78EF5f;
+    address public constant Hilbert = 0x61081B12838240B1Ba02b3177153BcA678a86078;
 
     // Calculation shall be done in derived contracts - based on testnet or mainnet expected proof time
     uint64 public initProofTimeIssued;