diff --git a/base_layer/mmr/src/merkle_checkpoint.rs b/base_layer/mmr/src/merkle_checkpoint.rs
index b7a6f654f9..80b920ec31 100644
--- a/base_layer/mmr/src/merkle_checkpoint.rs
+++ b/base_layer/mmr/src/merkle_checkpoint.rs
@@ -105,6 +105,12 @@ impl MerkleCheckPoint {
         self.prev_accumulated_nodes_added_count + self.nodes_added.len() as u32
     }
 
+    /// Merge the provided Merkle checkpoint into the current checkpoint.
+    pub fn append(&mut self, mut cp: MerkleCheckPoint) {
+        self.nodes_added.append(&mut cp.nodes_added);
+        self.nodes_deleted.or_inplace(&cp.nodes_deleted);
+    }
+
     /// Break a checkpoint up into its constituent parts
     pub fn into_parts(self) -> (Vec<Hash>, Bitmap) {
         (self.nodes_added, self.nodes_deleted)
diff --git a/base_layer/mmr/src/mmr_cache.rs b/base_layer/mmr/src/mmr_cache.rs
index 27bf71ff3c..3637bcff2e 100644
--- a/base_layer/mmr/src/mmr_cache.rs
+++ b/base_layer/mmr/src/mmr_cache.rs
@@ -166,6 +166,16 @@ where
         Ok(())
     }
 
+    /// Inform the MmrCache that the first N checkpoints have been merged to allow the base and current indices to be
+    /// updated.
+    pub fn checkpoints_merged(&mut self, num_merged: usize) -> Result<(), MerkleMountainRangeError> {
+        if let Some(num_reverse) = num_merged.checked_sub(1) {
+            self.base_cp_index = self.base_cp_index.saturating_sub(num_reverse);
+            self.curr_cp_index = self.curr_cp_index.saturating_sub(num_reverse);
+        }
+        self.update()
+    }
+
     /// This function updates the state of the MMR cache based on the current state of the shared checkpoints.
     pub fn update(&mut self) -> Result<(), MerkleMountainRangeError> {
         let cp_count = self
diff --git a/base_layer/mmr/tests/mmr_cache.rs b/base_layer/mmr/tests/mmr_cache.rs
index 9d91252532..57fa3c416f 100644
--- a/base_layer/mmr/tests/mmr_cache.rs
+++ b/base_layer/mmr/tests/mmr_cache.rs
@@ -157,3 +157,76 @@ fn multiple_rewinds() {
     assert!(mmr_cache.update().is_ok());
     assert_eq!(mmr_cache.get_mmr_only_root(), Ok(combine_hashes(&[&h1h2]).clone()));
 }
+
+#[test]
+fn checkpoint_merging() {
+    let config = MmrCacheConfig { rewind_hist_len: 2 };
+    let mut checkpoint_db = MemBackendVec::<MerkleCheckPoint>::new();
+    let mut mmr_cache = MmrCache::<Hasher, _, _>::new(Vec::new(), checkpoint_db.clone(), config).unwrap();
+
+    let h1 = int_to_hash(1);
+    let h2 = int_to_hash(2);
+    let h3 = int_to_hash(3);
+    let h4 = int_to_hash(4);
+    let h5 = int_to_hash(5);
+    let h6 = int_to_hash(6);
+    let ha = combine_hashes(&[&h1, &h2]);
+    let hb = combine_hashes(&[&h3, &h4]);
+    let hc = combine_hashes(&[&h5, &h6]);
+    let hahb = combine_hashes(&[&ha, &hb]);
+    let cp4_mmr_only_root = combine_hashes(&[&hahb]);
+    let cp6_mmr_only_root = combine_hashes(&[&hahb, &hc]);
+    let cp1 = MerkleCheckPoint::new(vec![h1.clone()], Bitmap::create(), 0);
+    let cp2 = MerkleCheckPoint::new(vec![h2.clone()], Bitmap::create(), 0);
+    let cp3 = MerkleCheckPoint::new(vec![h3.clone()], Bitmap::create(), 0);
+    let cp4 = MerkleCheckPoint::new(vec![h4.clone()], Bitmap::create(), 0);
+    let cp5 = MerkleCheckPoint::new(vec![h5.clone()], Bitmap::create(), 0);
+    let cp6 = MerkleCheckPoint::new(vec![h6.clone()], Bitmap::create(), 0);
+
+    checkpoint_db.push(cp1).unwrap();
+    assert!(mmr_cache.update().is_ok());
+    checkpoint_db.push(cp2).unwrap();
+    assert!(mmr_cache.update().is_ok());
+    checkpoint_db.push(cp3).unwrap();
+    assert!(mmr_cache.update().is_ok());
+    checkpoint_db.push(cp4).unwrap();
+    assert!(mmr_cache.update().is_ok());
+    assert_eq!(mmr_cache.get_mmr_only_root(), Ok(cp4_mmr_only_root.clone()));
+
+    let mut merged_cp = checkpoint_db.get(0).unwrap().unwrap();
+    merged_cp.append(checkpoint_db.get(1).unwrap().unwrap());
+    assert!(checkpoint_db.shift(2).is_ok());
+    assert!(checkpoint_db.push_front(merged_cp).is_ok());
+    assert_eq!(checkpoint_db.len(), Ok(3));
+    assert!(mmr_cache.checkpoints_merged(2).is_ok());
+    assert_eq!(mmr_cache.get_mmr_only_root(), Ok(cp4_mmr_only_root.clone()));
+
+    checkpoint_db.push(cp5).unwrap();
+    assert!(mmr_cache.update().is_ok());
+    checkpoint_db.push(cp6).unwrap();
+    assert!(mmr_cache.update().is_ok());
+    assert_eq!(mmr_cache.get_mmr_only_root(), Ok(cp6_mmr_only_root.clone()));
+
+    let mut merged_cp = checkpoint_db.get(0).unwrap().unwrap();
+    merged_cp.append(checkpoint_db.get(1).unwrap().unwrap());
+    merged_cp.append(checkpoint_db.get(2).unwrap().unwrap());
+    assert!(checkpoint_db.shift(3).is_ok());
+    assert!(checkpoint_db.push_front(merged_cp).is_ok());
+    assert_eq!(checkpoint_db.len(), Ok(3));
+    assert!(mmr_cache.checkpoints_merged(3).is_ok());
+    assert_eq!(mmr_cache.get_mmr_only_root(), Ok(cp6_mmr_only_root.clone()));
+
+    // Recreate the MmrCache from the altered checkpoints
+    let mut mmr_cache = MmrCache::<Hasher, _, _>::new(Vec::new(), checkpoint_db.clone(), config).unwrap();
+    assert_eq!(mmr_cache.get_mmr_only_root(), Ok(cp6_mmr_only_root.clone()));
+
+    // Replace all existing checkpoints with a single accumulated checkpoint
+    let mut merged_cp = checkpoint_db.get(0).unwrap().unwrap();
+    merged_cp.append(checkpoint_db.get(1).unwrap().unwrap());
+    merged_cp.append(checkpoint_db.get(2).unwrap().unwrap());
+    assert!(checkpoint_db.shift(3).is_ok());
+    assert!(checkpoint_db.push_front(merged_cp).is_ok());
+    assert_eq!(checkpoint_db.len(), Ok(1));
+    assert!(mmr_cache.checkpoints_merged(3).is_ok());
+    assert_eq!(mmr_cache.get_mmr_only_root(), Ok(cp6_mmr_only_root.clone()));
+}