diff --git a/lib/wallet/txdb.js b/lib/wallet/txdb.js
index d23372328..2db375b66 100644
--- a/lib/wallet/txdb.js
+++ b/lib/wallet/txdb.js
@@ -993,6 +993,12 @@ class TXDB {
       if (!path)
         continue;
 
+      // If the first time we see a TX is in a block
+      // (i.e. during a rescan) update the "unconfirmed" locked balance
+      // before updating the "confirmed" locked balance.
+      if (height !== -1)
+        await this.lockBalances(b, state, tx, i, path, -1);
+
       await this.lockBalances(b, state, tx, i, path, height);
 
       details.setOutput(i, path);
diff --git a/test/wallet-test.js b/test/wallet-test.js
index 8be874ccd..42d819c48 100644
--- a/test/wallet-test.js
+++ b/test/wallet-test.js
@@ -1,5 +1,6 @@
 /* eslint-env mocha */
 /* eslint prefer-arrow-callback: "off" */
+/* eslint no-implicit-coercion: "off" */
 
 'use strict';
 
@@ -1642,4 +1643,298 @@ describe('Wallet', function() {
       }
     });
   });
+
+  describe('TXDB locked balance', function() {
+    const network = Network.get('regtest');
+    const workers = new WorkerPool({ enabled });
+    const wdb = new WalletDB({ network, workers });
+    const name = 'satoshi';
+    const value = 1e6;
+    const lockup = 2e6;
+    const fee = 10000;
+    let wallet;
+
+    before(async () => {
+      await wdb.open();
+      wallet = await wdb.create();
+      // rollout all names
+      wdb.height = 52 * 144 * 7;
+    });
+
+    after(async () => {
+      await wdb.close();
+    });
+
+    it('should fund wallet', async () => {
+      const addr = await wallet.receiveAddress();
+
+      // Fund wallet
+      const mtx = new MTX();
+      mtx.addOutpoint(new Outpoint(Buffer.alloc(32), 0));
+      mtx.addOutput(addr, 10e6);
+      const tx = mtx.toTX();
+
+      // Dummy block
+      const block = {
+        height: wdb.height + 1,
+        hash: Buffer.alloc(32),
+        time: Date.now()
+      };
+
+      // Add confirmed funding TX to wallet
+      await wallet.txdb.add(tx, block);
+
+      // Check
+      const bal = await wallet.getBalance();
+      assert.strictEqual(bal.tx, 1);
+      assert.strictEqual(bal.coin, 1);
+      assert.strictEqual(bal.confirmed, 10e6);
+      assert.strictEqual(bal.unconfirmed, 10e6);
+      assert.strictEqual(bal.ulocked, 0);
+      assert.strictEqual(bal.clocked, 0);
+    });
+
+    it('should send and confirm OPEN', async () => {
+      const open = await wallet.sendOpen(name, false, {hardFee: fee});
+
+      // Check
+      let bal = await wallet.getBalance();
+      assert.strictEqual(bal.tx, 2);
+      assert.strictEqual(bal.coin, 2);
+      assert.strictEqual(bal.confirmed, 10e6);
+      assert.strictEqual(bal.unconfirmed, 10e6 - fee);
+      assert.strictEqual(bal.ulocked, 0);
+      assert.strictEqual(bal.clocked, 0);
+
+      // Confirm OPEN
+      const block = {
+        height: wdb.height + 1,
+        hash: Buffer.alloc(32),
+        time: Date.now()
+      };
+      await wallet.txdb.add(open, block);
+
+      // Check
+      bal = await wallet.getBalance();
+      assert.strictEqual(bal.tx, 2);
+      assert.strictEqual(bal.coin, 2);
+      assert.strictEqual(bal.confirmed, 10e6 - (1 * fee));
+      assert.strictEqual(bal.unconfirmed, 10e6 - (1 * fee));
+      assert.strictEqual(bal.ulocked, 0);
+      assert.strictEqual(bal.clocked, 0);
+    });
+
+    it('should send and confirm BID', async () => {
+      // Advance to bidding
+      wdb.height += network.names.treeInterval + 1;
+
+      const bid = await wallet.sendBid(name, value, lockup, {hardFee: fee});
+
+      // Check
+      let bal = await wallet.getBalance();
+      assert.strictEqual(bal.tx, 3);
+      assert.strictEqual(bal.coin, 3);
+      assert.strictEqual(bal.confirmed, 10e6 - (1 * fee));
+      assert.strictEqual(bal.unconfirmed, 10e6 - (2 * fee));
+      assert.strictEqual(bal.ulocked, lockup);
+      assert.strictEqual(bal.clocked, 0);
+
+      // Confirm BID
+      const block = {
+        height: wdb.height + 1,
+        hash: Buffer.alloc(32),
+        time: Date.now()
+      };
+      await wallet.txdb.add(bid, block);
+
+      // Check
+      bal = await wallet.getBalance();
+      assert.strictEqual(bal.tx, 3);
+      assert.strictEqual(bal.coin, 3);
+      assert.strictEqual(bal.confirmed, 10e6 - (2 * fee));
+      assert.strictEqual(bal.unconfirmed, 10e6 - (2 * fee));
+      assert.strictEqual(bal.ulocked, lockup);
+      assert.strictEqual(bal.clocked, lockup);
+    });
+
+    it('should send and confirm REVEAL', async () => {
+      // Advance to reveal
+      wdb.height += network.names.biddingPeriod;
+
+      const reveal = await wallet.sendReveal(name, {hardFee: fee});
+
+      // Check
+      let bal = await wallet.getBalance();
+      assert.strictEqual(bal.tx, 4);
+      assert.strictEqual(bal.coin, 4);
+      assert.strictEqual(bal.confirmed, 10e6 - (2 * fee));
+      assert.strictEqual(bal.unconfirmed, 10e6 - (3 * fee));
+      assert.strictEqual(bal.ulocked, value);
+      assert.strictEqual(bal.clocked, lockup);
+
+      // Confirm BID
+      const block = {
+        height: wdb.height + 1,
+        hash: Buffer.alloc(32),
+        time: Date.now()
+      };
+      await wallet.txdb.add(reveal, block);
+
+      // Check
+      bal = await wallet.getBalance();
+      assert.strictEqual(bal.tx, 4);
+      assert.strictEqual(bal.coin, 4);
+      assert.strictEqual(bal.confirmed, 10e6 - (3 * fee));
+      assert.strictEqual(bal.unconfirmed, 10e6 - (3 * fee));
+      assert.strictEqual(bal.ulocked, value);
+      assert.strictEqual(bal.clocked, value);
+    });
+  });
+
+  describe('TXDB locked balance after simulated rescan', function() {
+    const network = Network.get('regtest');
+    const workers = new WorkerPool({ enabled });
+    const wdb = new WalletDB({ network, workers });
+    const name = 'satoshi';
+    const value = 1e6;
+    const lockup = 2e6;
+    const fee = 10000;
+    let wallet;
+
+    before(async () => {
+      await wdb.open();
+      wallet = await wdb.create();
+      // rollout all names
+      wdb.height = 52 * 144 * 7;
+    });
+
+    after(async () => {
+      await wdb.close();
+    });
+
+    it('should fund wallet', async () => {
+      const addr = await wallet.receiveAddress();
+
+      // Fund wallet
+      const mtx = new MTX();
+      mtx.addOutpoint(new Outpoint(Buffer.alloc(32), 0));
+      mtx.addOutput(addr, 10e6);
+      const tx = mtx.toTX();
+
+      // Dummy block
+      const block = {
+        height: wdb.height + 1,
+        hash: Buffer.alloc(32),
+        time: Date.now()
+      };
+
+      // Add confirmed funding TX to wallet
+      await wallet.txdb.add(tx, block);
+
+      // Check
+      const bal = await wallet.getBalance();
+      assert.strictEqual(bal.tx, 1);
+      assert.strictEqual(bal.coin, 1);
+      assert.strictEqual(bal.confirmed, 10e6);
+      assert.strictEqual(bal.unconfirmed, 10e6);
+      assert.strictEqual(bal.ulocked, 0);
+      assert.strictEqual(bal.clocked, 0);
+    });
+
+    it('should confirm new OPEN', async () => {
+      const open = await wallet.createOpen(name, false, {hardFee: fee});
+
+      // Check
+      let bal = await wallet.getBalance();
+      assert.strictEqual(bal.tx, 1);
+      assert.strictEqual(bal.coin, 1);
+      assert.strictEqual(bal.confirmed, 10e6);
+      assert.strictEqual(bal.unconfirmed, 10e6);
+      assert.strictEqual(bal.ulocked, 0);
+      assert.strictEqual(bal.clocked, 0);
+
+      // Confirm OPEN
+      const block = {
+        height: wdb.height + 1,
+        hash: Buffer.alloc(32),
+        time: Date.now()
+      };
+      await wallet.txdb.add(open.toTX(), block);
+
+      // Check
+      bal = await wallet.getBalance();
+      assert.strictEqual(bal.tx, 2);
+      assert.strictEqual(bal.coin, 2);
+      assert.strictEqual(bal.confirmed, 10e6 - (1 * fee));
+      assert.strictEqual(bal.unconfirmed, 10e6 - (1 * fee));
+      assert.strictEqual(bal.ulocked, 0);
+      assert.strictEqual(bal.clocked, 0);
+    });
+
+    it('should confirm new BID', async () => {
+      // Advance to bidding
+      wdb.height += network.names.treeInterval + 1;
+
+      const bid = await wallet.createBid(name, value, lockup, {hardFee: fee});
+
+      // Check
+      let bal = await wallet.getBalance();
+      assert.strictEqual(bal.tx, 2);
+      assert.strictEqual(bal.coin, 2);
+      assert.strictEqual(bal.confirmed, 10e6 - (1 * fee));
+      assert.strictEqual(bal.unconfirmed, 10e6 - (1 * fee));
+      assert.strictEqual(bal.ulocked, 0);
+      assert.strictEqual(bal.clocked, 0);
+
+      // Confirm BID
+      const block = {
+        height: wdb.height + 1,
+        hash: Buffer.alloc(32),
+        time: Date.now()
+      };
+      await wallet.txdb.add(bid.toTX(), block);
+
+      // Check
+      bal = await wallet.getBalance();
+      assert.strictEqual(bal.tx, 3);
+      assert.strictEqual(bal.coin, 3);
+      assert.strictEqual(bal.confirmed, 10e6 - (2 * fee));
+      assert.strictEqual(bal.unconfirmed, 10e6 - (2 * fee));
+      assert.strictEqual(bal.ulocked, lockup);
+      assert.strictEqual(bal.clocked, lockup);
+    });
+
+    it('should confirm new REVEAL', async () => {
+      // Advance to reveal
+      wdb.height += network.names.biddingPeriod;
+
+      const reveal = await wallet.createReveal(name, {hardFee: fee});
+
+      // Check
+      let bal = await wallet.getBalance();
+      assert.strictEqual(bal.tx, 3);
+      assert.strictEqual(bal.coin, 3);
+      assert.strictEqual(bal.confirmed, 10e6 - (2 * fee));
+      assert.strictEqual(bal.unconfirmed, 10e6 - (2 * fee));
+      assert.strictEqual(bal.ulocked, lockup);
+      assert.strictEqual(bal.clocked, lockup);
+
+      // Confirm BID
+      const block = {
+        height: wdb.height + 1,
+        hash: Buffer.alloc(32),
+        time: Date.now()
+      };
+      await wallet.txdb.add(reveal.toTX(), block);
+
+      // Check
+      bal = await wallet.getBalance();
+      assert.strictEqual(bal.tx, 4);
+      assert.strictEqual(bal.coin, 4);
+      assert.strictEqual(bal.confirmed, 10e6 - (3 * fee));
+      assert.strictEqual(bal.unconfirmed, 10e6 - (3 * fee));
+      assert.strictEqual(bal.ulocked, value);
+      assert.strictEqual(bal.clocked, value);
+    });
+  });
 });