diff --git a/base_layer/core/src/chain_storage/lmdb_db/lmdb_db.rs b/base_layer/core/src/chain_storage/lmdb_db/lmdb_db.rs
index 8e042220bf..8bf4c99128 100644
--- a/base_layer/core/src/chain_storage/lmdb_db/lmdb_db.rs
+++ b/base_layer/core/src/chain_storage/lmdb_db/lmdb_db.rs
@@ -949,6 +949,10 @@ impl LMDBDatabase {
                 if inputs.iter().any(|r| r.input.output_hash() == output_hash) {
                     continue;
                 }
+                // if an output was burned, it was never created as an unspent utxo
+                if output.is_burned() {
+                    continue;
+                }
                 lmdb_delete(
                     txn,
                     &*self.utxo_commitment_index,
diff --git a/integration_tests/features/Reorgs.feature b/integration_tests/features/Reorgs.feature
index fc6db1eb68..a70211270d 100644
--- a/integration_tests/features/Reorgs.feature
+++ b/integration_tests/features/Reorgs.feature
@@ -28,6 +28,35 @@ Feature: Reorgs
     And node B is at height 10
     And node C is at height 10
 
+
+  @critical
+  Scenario: Simple reorg with burned output
+        # Chain 1
+        #     Note: Use more than 1 base node to speed up the test
+    Given I have a seed node SEED_B
+    And I have a base node B connected to seed SEED_B
+    And I have wallet WB connected to base node B
+    And I have mining node BM connected to base node B and wallet WB
+    And mining node BM mines 10 blocks with min difficulty 1 and max difficulty 1
+
+    When I wait for wallet WB to have at least 55000000000 uT
+    When I create a burn transaction of 1000000 uT from WB at fee 100
+    And mining node BM mines 5 blocks with min difficulty 1 and max difficulty 1
+        # Chain 2
+        #     Note: Use more than 1 base node to speed up the test
+    Given I have a seed node SEED_C
+    And I have a base node C connected to seed SEED_C
+    And I have wallet WC connected to base node C
+    And I have mining node CM connected to base node C and wallet WC
+    And mining node CM mines 17 blocks with min difficulty 1 and max difficulty 1
+        # Connect chain 1 and 2
+    Then node B is at height 15
+    And node C is at height 17
+    Given I have a base node SA connected to nodes B,C
+    Then node SA is at height 17
+    And node B is at height 17
+    And node C is at height 17
+
   @critical
   Scenario: Node rolls back reorg on invalid block
     Given I have a seed node SA