diff --git a/test/wallet-reset-test.js b/test/wallet-reset-test.js
new file mode 100644
index 0000000000..c08c304bf8
--- /dev/null
+++ b/test/wallet-reset-test.js
@@ -0,0 +1,171 @@
+/* eslint-env mocha */
+/* eslint prefer-arrow-callback: "off" */
+
+'use strict';
+
+const assert = require('bsert');
+const Network = require('../lib/protocol/network');
+const FullNode = require('../lib/node/fullnode');
+const Address = require('../lib/primitives/address');
+const rules = require('../lib/covenants/rules');
+const Resource = require('../lib/dns/resource');
+
+const network = Network.get('regtest');
+
+const node = new FullNode({
+  memory: true,
+  network: 'regtest',
+  plugins: [require('../lib/wallet/plugin')],
+  port: 10000,
+  httpPort: 20000,
+  rsPort: 30000,
+  nsPort: 40000
+});
+
+const peer = new FullNode({
+  memory: true,
+  network: 'regtest',
+  listen: true
+});
+
+const {wdb} = node.require('walletdb');
+
+const name = rules.grindName(5, 1, network);
+let wallet, alice, aliceReceive;
+let balance1, walletNamestate1, nodeNamestate1;
+let balance3, walletNamestate3, nodeNamestate3;
+
+async function mineBlocks(n, addr) {
+  addr = addr ? addr : new Address().toString('regtest');
+  for (let i = 0; i < n; i++) {
+    const block = await node.miner.mineBlock(null, addr);
+    await node.chain.add(block);
+  }
+}
+
+describe('Chain reset with wallet', function() {
+  this.timeout(20000);
+
+  before(async () => {
+    await peer.open();
+    await peer.connect();
+    peer.startSync();
+
+    await node.open();
+    await node.connect();
+    node.startSync();
+
+    wallet = await wdb.create();
+    alice = await wallet.getAccount(0);
+    aliceReceive = await alice.receiveAddress();
+  });
+
+  after(async () => {
+    await node.close();
+    await peer.close();
+  });
+
+  it('should fund wallet', async () => {
+    await mineBlocks(10, aliceReceive);
+  });
+
+  it('should open an auction and proceed to REGISTER', async () => {
+    await wallet.sendOpen(name, false, {account: 0});
+    await mineBlocks(network.names.treeInterval + 2);
+
+    await wallet.sendBid(name, 100000, 200000, {account: 0});
+    await mineBlocks(network.names.biddingPeriod);
+
+    await wallet.sendReveal(name, {account: 0});
+    await mineBlocks(network.names.revealPeriod);
+
+    const aliceResource = Resource.Resource.fromJSON({
+      records: [
+        {
+          type: 'TXT',
+          txt: ['ALICE']
+        }
+      ]
+    });
+
+    await wallet.sendUpdate(name, aliceResource, {account: 0});
+    await mineBlocks(network.names.treeInterval);
+  });
+
+  it('should check balance and namestate', async () => {
+    balance1 = await wallet.getBalance();
+    walletNamestate1 = await wallet.getNameStateByName(name);
+    nodeNamestate1 = await node.chain.db.getNameStateByName(name);
+
+    assert.deepStrictEqual(walletNamestate1, nodeNamestate1);
+  });
+
+  it('should reset chain', async () => {
+    // Wait for nodes to sync
+    await new Promise(r => setTimeout(r, 1000));
+    assert.deepStrictEqual(
+      node.chain.tip,
+      peer.chain.tip
+    );
+    await node.chain.reset(1);
+
+    await new Promise(r => setTimeout(r, 1000));
+    assert.deepStrictEqual(
+      node.chain.tip,
+      peer.chain.tip
+    );
+  });
+
+  it('should check balance and namestate', async () => {
+    const balance2 = await wallet.getBalance();
+    const walletNamestate2 = await wallet.getNameStateByName(name);
+    const nodeNamestate2 = await node.chain.db.getNameStateByName(name);
+
+    assert.deepStrictEqual(walletNamestate1, walletNamestate2);
+    assert.deepStrictEqual(balance1, balance2);
+    assert.deepStrictEqual(walletNamestate2, nodeNamestate2);
+  });
+
+  it('should TRANSFER and FINALIZE', async () => {
+    const addr2 = await alice.receiveAddress();
+    await wallet.sendTransfer(name, addr2);
+    await mineBlocks(network.names.transferLockup + 1);
+
+    await wallet.sendFinalize(name);
+    await mineBlocks(10);
+  });
+
+  it('should check balance and namestate', async () => {
+    balance3 = await wallet.getBalance();
+    walletNamestate3 = await wallet.getNameStateByName(name);
+    nodeNamestate3 = await node.chain.db.getNameStateByName(name);
+
+    assert.deepStrictEqual(walletNamestate3, nodeNamestate3);
+  });
+
+  it('should reset chain', async () => {
+    // Wait for nodes to sync
+    await new Promise(r => setTimeout(r, 1000));
+    assert.deepStrictEqual(
+      node.chain.tip,
+      peer.chain.tip
+    );
+    await node.chain.reset(1);
+
+    await new Promise(r => setTimeout(r, 1000));
+    assert.deepStrictEqual(
+      node.chain.tip,
+      peer.chain.tip
+    );
+  });
+
+  it('should check balance and namestate', async () => {
+    const balance4 = await wallet.getBalance();
+    const walletNamestate4 = await wallet.getNameStateByName(name);
+    const nodeNamestate4 = await node.chain.db.getNameStateByName(name);
+
+    assert.deepStrictEqual(walletNamestate3, walletNamestate4);
+    assert.deepStrictEqual(balance3, balance4);
+    assert.deepStrictEqual(walletNamestate4, nodeNamestate4);
+  });
+});