diff --git a/state/chain.go b/state/chain.go
index 7e11ee12..de1e8164 100644
--- a/state/chain.go
+++ b/state/chain.go
@@ -17,8 +17,10 @@ package state
 import (
 	"errors"
 	"fmt"
+	"sync"
 
 	"github.com/blinklabs-io/dingo/database"
+	"github.com/blinklabs-io/dingo/event"
 	ochainsync "github.com/blinklabs-io/gouroboros/protocol/chainsync"
 	ocommon "github.com/blinklabs-io/gouroboros/protocol/common"
 )
@@ -26,9 +28,15 @@ import (
 var ErrIteratorChainTip = errors.New("chain iterator is at chain tip")
 
 type ChainIterator struct {
-	ls          *LedgerState
-	startPoint  ocommon.Point
-	blockNumber uint64
+	mutex            sync.Mutex
+	ls               *LedgerState
+	startPoint       ocommon.Point
+	blockNumber      uint64
+	chainUpdateSubId event.EventSubscriberId
+	chainUpdateChan  <-chan event.Event
+	needsRollback    bool
+	rollbackPoint    ocommon.Point
+	waitingChan      chan event.Event
 }
 
 type ChainIteratorResult struct {
@@ -42,9 +50,15 @@ func newChainIterator(
 	startPoint ocommon.Point,
 	inclusive bool,
 ) (*ChainIterator, error) {
+	// Subscribe to chain updates
+	chainUpdateSubId, chainUpdateChan := ls.config.EventBus.Subscribe(
+		ChainUpdateEventType,
+	)
 	ci := &ChainIterator{
-		ls:         ls,
-		startPoint: startPoint,
+		ls:               ls,
+		startPoint:       startPoint,
+		chainUpdateSubId: chainUpdateSubId,
+		chainUpdateChan:  chainUpdateChan,
 	}
 	// Lookup start block in metadata DB if not origin
 	if startPoint.Slot > 0 || len(startPoint.Hash) > 0 {
@@ -61,15 +75,67 @@ func newChainIterator(
 			ci.blockNumber++
 		}
 	}
+	go ci.handleChainUpdateEvents()
 	return ci, nil
 }
 
+func (ci *ChainIterator) handleChainUpdateEvents() {
+	for {
+		evt, ok := <-ci.chainUpdateChan
+		if !ok {
+			return
+		}
+		ci.mutex.Lock()
+		switch e := evt.Data.(type) {
+		case ChainBlockEvent:
+			if ci.waitingChan != nil {
+				// Send event without blocking
+				select {
+				case ci.waitingChan <- evt:
+				default:
+				}
+			}
+		case ChainRollbackEvent:
+			if ci.blockNumber > 0 {
+				ci.rollbackPoint = e.Point
+				ci.needsRollback = true
+			}
+			if ci.waitingChan != nil {
+				// Send event without blocking
+				select {
+				case ci.waitingChan <- evt:
+				default:
+				}
+			}
+		}
+		ci.mutex.Unlock()
+	}
+}
+
 func (ci *ChainIterator) Tip() (ochainsync.Tip, error) {
 	return ci.ls.chainTip(nil)
 }
 
 func (ci *ChainIterator) Next(blocking bool) (*ChainIteratorResult, error) {
-	ci.ls.RLock()
+	ci.mutex.Lock()
+	// Check for pending rollback
+	if ci.needsRollback {
+		ret := &ChainIteratorResult{}
+		ret.Point = ci.rollbackPoint
+		ret.Rollback = true
+		ci.needsRollback = false
+		if ci.rollbackPoint.Slot > 0 {
+			// Lookup block number for rollback point
+			tmpBlock, err := database.BlockByPoint(ci.ls.db, ci.rollbackPoint)
+			if err != nil {
+				ci.mutex.Unlock()
+				return nil, err
+			}
+			ci.blockNumber = tmpBlock.Number + 1
+		}
+		ci.mutex.Unlock()
+		return ret, nil
+	}
 	ret := &ChainIteratorResult{}
 	// Lookup next block in metadata DB
 	tmpBlock, err := database.BlockByNumber(ci.ls.db, ci.blockNumber)
@@ -78,42 +144,31 @@ func (ci *ChainIterator) Next(blocking bool) (*ChainIteratorResult, error) {
 		ret.Point = ocommon.NewPoint(tmpBlock.Slot, tmpBlock.Hash)
 		ret.Block = tmpBlock
 		ci.blockNumber++
-		ci.ls.RUnlock()
+		ci.mutex.Unlock()
 		return ret, nil
 	}
 	// Return any actual error
 	if !errors.Is(err, database.ErrBlockNotFound) {
-		ci.ls.RUnlock()
+		ci.mutex.Unlock()
 		return ret, err
 	}
-	// Check against current tip to see if it was rolled back
-	tip, err := ci.Tip()
-	if err != nil {
-		return nil, err
-	}
-	if ci.blockNumber > 0 && ci.blockNumber-1 > tip.BlockNumber {
-		ret.Point = tip.Point
-		ret.Rollback = true
-		ci.blockNumber = tip.BlockNumber + 1
-		ci.ls.RUnlock()
-		return ret, nil
-	}
 	// Return immediately if we're not blocking
 	if !blocking {
-		ci.ls.RUnlock()
+		ci.mutex.Unlock()
 		return nil, ErrIteratorChainTip
 	}
-	// Wait for new block or a rollback
-	chainUpdateSubId, chainUpdateChan := ci.ls.config.EventBus.Subscribe(
-		ChainUpdateEventType,
-	)
+	// Wait for chain update
+	ci.waitingChan = make(chan event.Event, 1)
 	// Release read lock while we wait for new event
-	ci.ls.RUnlock()
-	evt, ok := <-chainUpdateChan
+	ci.mutex.Unlock()
+	evt, ok := <-ci.waitingChan
 	if !ok {
 		// TODO: return an actual error (#389)
 		return nil, nil
 	}
+	ci.mutex.Lock()
+	defer ci.mutex.Unlock()
+	ci.waitingChan = nil
 	switch e := evt.Data.(type) {
 	case ChainBlockEvent:
 		ret.Point = e.Point
@@ -122,6 +177,7 @@ func (ci *ChainIterator) Next(blocking bool) (*ChainIteratorResult, error) {
 	case ChainRollbackEvent:
 		ret.Point = e.Point
 		ret.Rollback = true
+		ci.needsRollback = false
 		if e.Point.Slot > 0 {
 			// Lookup block number for rollback point
 			tmpBlock, err := database.BlockByPoint(ci.ls.db, e.Point)
@@ -133,6 +189,5 @@ func (ci *ChainIterator) Next(blocking bool) (*ChainIteratorResult, error) {
 	default:
 		return nil, fmt.Errorf("unexpected event type %T", e)
 	}
-	ci.ls.config.EventBus.Unsubscribe(ChainUpdateEventType, chainUpdateSubId)
 	return ret, nil
 }