diff --git a/packages/transaction-controller/CHANGELOG.md b/packages/transaction-controller/CHANGELOG.md
index 28f942eb7d5..76552eb66be 100644
--- a/packages/transaction-controller/CHANGELOG.md
+++ b/packages/transaction-controller/CHANGELOG.md
@@ -7,6 +7,11 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ## [Unreleased]
 
+### Fixed
+
+- Fail required transactions of any approved and signed transactions during initialisation ([#7251](https://github.com/MetaMask/core/pull/7251))
+  - Include `isExternalSign` when fetching gas fee tokens in messenger action or before publish check.
+
 ## [62.3.0]
 
 ### Changed
diff --git a/packages/transaction-controller/src/TransactionController.test.ts b/packages/transaction-controller/src/TransactionController.test.ts
index aaa202a217d..1d0bec05a34 100644
--- a/packages/transaction-controller/src/TransactionController.test.ts
+++ b/packages/transaction-controller/src/TransactionController.test.ts
@@ -1131,6 +1131,72 @@ describe('TransactionController', () => {
       expect(transactions[5].status).toBe(TransactionStatus.failed);
     });
 
+    it('fails required transactions of approved and signed transactions', async () => {
+      const mockTransactionMeta = {
+        from: ACCOUNT_MOCK,
+        txParams: {
+          from: ACCOUNT_MOCK,
+          to: ACCOUNT_2_MOCK,
+        },
+      };
+      const mockedTransactions = [
+        {
+          id: '123',
+          history: [{ ...mockTransactionMeta, id: '123' }],
+          chainId: toHex(5),
+          status: TransactionStatus.approved,
+          requiredTransactionIds: ['222', '333'],
+          ...mockTransactionMeta,
+        },
+        {
+          id: '111',
+          history: [{ ...mockTransactionMeta, id: '111' }],
+          chainId: toHex(5),
+          status: TransactionStatus.signed,
+          ...mockTransactionMeta,
+        },
+        {
+          id: '222',
+          history: [{ ...mockTransactionMeta, id: '222' }],
+          chainId: toHex(1),
+          status: TransactionStatus.confirmed,
+          ...mockTransactionMeta,
+        },
+        {
+          id: '333',
+          history: [{ ...mockTransactionMeta, id: '333' }],
+          chainId: toHex(16),
+          status: TransactionStatus.submitted,
+          ...mockTransactionMeta,
+        },
+      ];
+
+      const mockedControllerState = {
+        transactions: mockedTransactions,
+        methodData: {},
+        lastFetchedBlockNumbers: {},
+      };
+
+      const { controller } = setupController({
+        options: {
+          // TODO: Replace `any` with type
+          // eslint-disable-next-line @typescript-eslint/no-explicit-any
+          state: mockedControllerState as any,
+        },
+      });
+
+      await flushPromises();
+
+      const { transactions } = controller.state;
+
+      expect(transactions.map((t) => [t.id, t.status])).toStrictEqual([
+        ['333', TransactionStatus.failed],
+        ['222', TransactionStatus.confirmed],
+        ['111', TransactionStatus.failed],
+        ['123', TransactionStatus.failed],
+      ]);
+    });
+
     it('removes unapproved transactions', async () => {
       const mockTransactionMeta = {
         from: ACCOUNT_MOCK,
@@ -8498,7 +8564,7 @@ describe('TransactionController', () => {
         expect(result).toStrictEqual([GAS_FEE_TOKEN_MOCK]);
       });
 
-      it('includes delegation address in request', async () => {
+      it('includes delegation address and isExternalSign in request', async () => {
         const { messenger } = setupController();
 
         getGasFeeTokensMock.mockResolvedValueOnce({
@@ -8520,6 +8586,7 @@ describe('TransactionController', () => {
           expect.objectContaining({
             transactionMeta: expect.objectContaining({
               delegationAddress: ACCOUNT_2_MOCK,
+              isExternalSign: true,
             }),
           }),
         );
diff --git a/packages/transaction-controller/src/TransactionController.ts b/packages/transaction-controller/src/TransactionController.ts
index 0d76fd01814..aaf8812d6fa 100644
--- a/packages/transaction-controller/src/TransactionController.ts
+++ b/packages/transaction-controller/src/TransactionController.ts
@@ -2996,6 +2996,27 @@ export class TransactionController extends BaseController<
         transactionMeta,
         new Error('Transaction incomplete at startup'),
       );
+
+      const requiredTransactionIds =
+        transactionMeta.requiredTransactionIds ?? [];
+
+      for (const requiredTransactionId of requiredTransactionIds) {
+        const requiredTransactionMeta = this.#getTransaction(
+          requiredTransactionId,
+        );
+
+        if (
+          !requiredTransactionMeta ||
+          this.#isFinalState(requiredTransactionMeta.status)
+        ) {
+          continue;
+        }
+
+        this.#failTransaction(
+          requiredTransactionMeta,
+          new Error('Parent transaction incomplete at startup'),
+        );
+      }
     }
   }
 
@@ -3422,7 +3443,8 @@ export class TransactionController extends BaseController<
     return (
       status === TransactionStatus.rejected ||
       status === TransactionStatus.confirmed ||
-      status === TransactionStatus.failed
+      status === TransactionStatus.failed ||
+      status === TransactionStatus.dropped
     );
   }
 
@@ -4737,6 +4759,7 @@ export class TransactionController extends BaseController<
     const transaction = {
       chainId,
       delegationAddress,
+      isExternalSign: true,
       txParams: {
         data,
         from,
diff --git a/packages/transaction-controller/src/utils/gas-fee-tokens.test.ts b/packages/transaction-controller/src/utils/gas-fee-tokens.test.ts
index cd89a1eafc5..de2908ddfd5 100644
--- a/packages/transaction-controller/src/utils/gas-fee-tokens.test.ts
+++ b/packages/transaction-controller/src/utils/gas-fee-tokens.test.ts
@@ -431,6 +431,11 @@ describe('Gas Fee Tokens Utils', () => {
       await checkGasFeeTokenBeforePublish(request);
 
       expect(request.fetchGasFeeTokens).toHaveBeenCalledTimes(1);
+      expect(request.fetchGasFeeTokens).toHaveBeenCalledWith(
+        expect.objectContaining({
+          isExternalSign: true,
+        }),
+      );
     });
 
     it('sets external sign to true if gas fee token found', async () => {
diff --git a/packages/transaction-controller/src/utils/gas-fee-tokens.ts b/packages/transaction-controller/src/utils/gas-fee-tokens.ts
index 1f7d6e94852..c1cec4736a9 100644
--- a/packages/transaction-controller/src/utils/gas-fee-tokens.ts
+++ b/packages/transaction-controller/src/utils/gas-fee-tokens.ts
@@ -166,7 +166,10 @@ export async function checkGasFeeTokenBeforePublish({
     return;
   }
 
-  const gasFeeTokens = await fetchGasFeeTokens(transaction);
+  const gasFeeTokens = await fetchGasFeeTokens({
+    ...transaction,
+    isExternalSign: true,
+  });
 
   updateTransaction(transaction.id, (tx) => {
     tx.gasFeeTokens = gasFeeTokens;