diff --git a/irohad/ordering/impl/on_demand_ordering_gate.cpp b/irohad/ordering/impl/on_demand_ordering_gate.cpp
index a68b89ff72..4f5ebc25c4 100644
--- a/irohad/ordering/impl/on_demand_ordering_gate.cpp
+++ b/irohad/ordering/impl/on_demand_ordering_gate.cpp
@@ -5,6 +5,9 @@
 
 #include "ordering/impl/on_demand_ordering_gate.hpp"
 
+#include <boost/range/adaptor/filtered.hpp>
+#include <boost/range/empty.hpp>
+#include "ametsuchi/tx_presence_cache.hpp"
 #include "common/visitor.hpp"
 #include "interfaces/iroha_internal/proposal.hpp"
 #include "interfaces/iroha_internal/transaction_batch.hpp"
@@ -17,6 +20,7 @@ OnDemandOrderingGate::OnDemandOrderingGate(
     std::shared_ptr<transport::OdOsNotification> network_client,
     rxcpp::observable<BlockRoundEventType> events,
     std::unique_ptr<shared_model::interface::UnsafeProposalFactory> factory,
+    std::shared_ptr<ametsuchi::TxPresenceCache> tx_cache,
     consensus::Round initial_round)
     : ordering_service_(std::move(ordering_service)),
       network_client_(std::move(network_client)),
@@ -41,14 +45,12 @@ OnDemandOrderingGate::OnDemandOrderingGate(
         // request proposal for the current round
         auto proposal = network_client_->onRequestProposal(current_round_);
 
+        auto final_proposal = this->processProposalRequest(std::move(proposal));
         // vote for the object received from the network
-        proposal_notifier_.get_subscriber().on_next(
-            std::move(proposal).value_or_eval([&] {
-              return proposal_factory_->unsafeCreateProposal(
-                  current_round_.block_round, current_round_.reject_round, {});
-            }));
+        proposal_notifier_.get_subscriber().on_next(std::move(final_proposal));
       })),
       proposal_factory_(std::move(factory)),
+      tx_cache_(std::move(tx_cache)),
       current_round_(initial_round) {}
 
 void OnDemandOrderingGate::propagateBatch(
@@ -68,3 +70,40 @@ void OnDemandOrderingGate::setPcs(
   throw std::logic_error(
       "Method is deprecated. PCS observable should be set in ctor");
 }
+
+std::unique_ptr<shared_model::interface::Proposal>
+OnDemandOrderingGate::processProposalRequest(
+    boost::optional<OnDemandOrderingService::ProposalType> &&proposal) const {
+  if (not proposal) {
+    return proposal_factory_->unsafeCreateProposal(
+        current_round_.block_round, current_round_.reject_round, {});
+  }
+  // no need to check empty proposal
+  if (boost::empty(proposal.value()->transactions())) {
+    return std::move(proposal.value());
+  }
+  return removeReplays(std::move(**std::move(proposal)));
+}
+
+std::unique_ptr<shared_model::interface::Proposal>
+OnDemandOrderingGate::removeReplays(
+    shared_model::interface::Proposal &&proposal) const {
+  auto tx_is_not_processed = [this](const auto &tx) {
+    auto tx_result = tx_cache_->check(tx.hash());
+    return iroha::visit_in_place(
+        tx_result,
+        [](const ametsuchi::tx_cache_status_responses::Missing &) {
+          return true;
+        },
+        [](const auto &status) {
+          // TODO nickaleks 21.11.18: IR-1887 log replayed transactions
+          // when log is added
+          return false;
+        });
+  };
+  auto unprocessed_txs =
+      boost::adaptors::filter(proposal.transactions(), tx_is_not_processed);
+
+  return proposal_factory_->unsafeCreateProposal(
+      proposal.height(), proposal.createdTime(), unprocessed_txs);
+}
diff --git a/irohad/ordering/impl/on_demand_ordering_gate.hpp b/irohad/ordering/impl/on_demand_ordering_gate.hpp
index 039491c311..27ea7ffd86 100644
--- a/irohad/ordering/impl/on_demand_ordering_gate.hpp
+++ b/irohad/ordering/impl/on_demand_ordering_gate.hpp
@@ -18,6 +18,10 @@
 #include "ordering/on_demand_ordering_service.hpp"
 
 namespace iroha {
+  namespace ametsuchi {
+    class TxPresenceCache;
+  }
+
   namespace ordering {
 
     /**
@@ -44,6 +48,7 @@ namespace iroha {
           rxcpp::observable<BlockRoundEventType> events,
           std::unique_ptr<shared_model::interface::UnsafeProposalFactory>
               factory,
+          std::shared_ptr<ametsuchi::TxPresenceCache> tx_cache,
           consensus::Round initial_round);
 
       void propagateBatch(
@@ -57,11 +62,25 @@ namespace iroha {
           const iroha::network::PeerCommunicationService &pcs) override;
 
      private:
+      /**
+       * Handle an incoming proposal from ordering service
+       */
+      std::unique_ptr<shared_model::interface::Proposal> processProposalRequest(
+          boost::optional<OnDemandOrderingService::ProposalType>
+              &&proposal) const;
+
+      /**
+       * remove already processed transactions from proposal
+       */
+      std::unique_ptr<shared_model::interface::Proposal> removeReplays(
+          shared_model::interface::Proposal &&proposal) const;
+
       std::shared_ptr<OnDemandOrderingService> ordering_service_;
       std::shared_ptr<transport::OdOsNotification> network_client_;
       rxcpp::composite_subscription events_subscription_;
       std::unique_ptr<shared_model::interface::UnsafeProposalFactory>
           proposal_factory_;
+      std::shared_ptr<ametsuchi::TxPresenceCache> tx_cache_;
 
       consensus::Round current_round_;
       rxcpp::subjects::subject<
diff --git a/shared_model/backend/protobuf/proto_proposal_factory.hpp b/shared_model/backend/protobuf/proto_proposal_factory.hpp
index 6bef471cb2..3a8516e6a6 100644
--- a/shared_model/backend/protobuf/proto_proposal_factory.hpp
+++ b/shared_model/backend/protobuf/proto_proposal_factory.hpp
@@ -35,7 +35,7 @@ namespace shared_model {
       std::unique_ptr<interface::Proposal> unsafeCreateProposal(
           interface::types::HeightType height,
           interface::types::TimestampType created_time,
-          const UnsafeTransactionsCollectionType &transactions) override {
+          UnsafeTransactionsCollectionType transactions) override {
         return std::make_unique<Proposal>(
             createProtoProposal(height, created_time, transactions));
       }
@@ -52,7 +52,7 @@ namespace shared_model {
       iroha::protocol::Proposal createProtoProposal(
           interface::types::HeightType height,
           interface::types::TimestampType created_time,
-          const UnsafeTransactionsCollectionType &transactions) {
+          UnsafeTransactionsCollectionType transactions) {
         iroha::protocol::Proposal proposal;
 
         proposal.set_height(height);
diff --git a/shared_model/interfaces/iroha_internal/unsafe_proposal_factory.hpp b/shared_model/interfaces/iroha_internal/unsafe_proposal_factory.hpp
index a9008aad3f..9390defb92 100644
--- a/shared_model/interfaces/iroha_internal/unsafe_proposal_factory.hpp
+++ b/shared_model/interfaces/iroha_internal/unsafe_proposal_factory.hpp
@@ -28,7 +28,7 @@ namespace shared_model {
       virtual std::unique_ptr<Proposal> unsafeCreateProposal(
           types::HeightType height,
           types::TimestampType created_time,
-          const TransactionsCollectionType &transactions) = 0;
+          TransactionsCollectionType transactions) = 0;
 
       virtual ~UnsafeProposalFactory() = default;
     };
diff --git a/test/module/irohad/ordering/on_demand_ordering_gate_test.cpp b/test/module/irohad/ordering/on_demand_ordering_gate_test.cpp
index 1e71028140..2990e86ef8 100644
--- a/test/module/irohad/ordering/on_demand_ordering_gate_test.cpp
+++ b/test/module/irohad/ordering/on_demand_ordering_gate_test.cpp
@@ -6,8 +6,10 @@
 #include "ordering/impl/on_demand_ordering_gate.hpp"
 
 #include <gtest/gtest.h>
+#include <boost/range/adaptor/indirected.hpp>
 #include "framework/test_subscriber.hpp"
 #include "interfaces/iroha_internal/transaction_batch_impl.hpp"
+#include "module/irohad/ametsuchi/ametsuchi_mocks.hpp"
 #include "module/irohad/ordering/ordering_mocks.hpp"
 #include "module/shared_model/interface_mocks.hpp"
 
@@ -19,6 +21,7 @@ using namespace framework::test_subscriber;
 
 using ::testing::_;
 using ::testing::ByMove;
+using ::testing::NiceMock;
 using ::testing::Return;
 using ::testing::Truly;
 
@@ -26,13 +29,19 @@ struct OnDemandOrderingGateTest : public ::testing::Test {
   void SetUp() override {
     ordering_service = std::make_shared<MockOnDemandOrderingService>();
     notification = std::make_shared<MockOdOsNotification>();
-    auto ufactory = std::make_unique<MockUnsafeProposalFactory>();
+    auto ufactory = std::make_unique<NiceMock<MockUnsafeProposalFactory>>();
     factory = ufactory.get();
+    tx_cache = std::make_shared<ametsuchi::MockTxPresenceCache>();
+    ON_CALL(*tx_cache,
+            check(testing::Matcher<const shared_model::crypto::Hash &>(_)))
+        .WillByDefault(
+            Return(iroha::ametsuchi::tx_cache_status_responses::Missing()));
     ordering_gate =
         std::make_shared<OnDemandOrderingGate>(ordering_service,
                                                notification,
                                                rounds.get_observable(),
                                                std::move(ufactory),
+                                               tx_cache,
                                                initial_round);
   }
 
@@ -40,6 +49,7 @@ struct OnDemandOrderingGateTest : public ::testing::Test {
   std::shared_ptr<MockOnDemandOrderingService> ordering_service;
   std::shared_ptr<MockOdOsNotification> notification;
   MockUnsafeProposalFactory *factory;
+  std::shared_ptr<ametsuchi::MockTxPresenceCache> tx_cache;
   std::shared_ptr<OnDemandOrderingGate> ordering_gate;
 
   const consensus::Round initial_round = {2, 1};
@@ -71,7 +81,8 @@ TEST_F(OnDemandOrderingGateTest, BlockEvent) {
   OnDemandOrderingGate::BlockEvent event = {block};
   consensus::Round round{event->height(), 1};
 
-  boost::optional<OdOsNotification::ProposalType> oproposal(nullptr);
+  boost::optional<OdOsNotification::ProposalType> oproposal(
+      std::make_unique<MockProposal>());
   auto proposal = oproposal.value().get();
 
   EXPECT_CALL(*ordering_service, onCollaborationOutcome(round)).Times(1);
@@ -98,7 +109,8 @@ TEST_F(OnDemandOrderingGateTest, EmptyEvent) {
   consensus::Round round{initial_round.block_round,
                          initial_round.reject_round + 1};
 
-  boost::optional<OdOsNotification::ProposalType> oproposal(nullptr);
+  boost::optional<OdOsNotification::ProposalType> oproposal(
+      std::make_unique<MockProposal>());
   auto proposal = oproposal.value().get();
 
   EXPECT_CALL(*ordering_service, onCollaborationOutcome(round)).Times(1);
@@ -178,3 +190,52 @@ TEST_F(OnDemandOrderingGateTest, EmptyEventNoProposal) {
 
   ASSERT_TRUE(gate_wrapper.validate());
 }
+
+/**
+ * @given initialized ordering gate
+ * @when new proposal arrives and the transaction was already committed
+ * @then the resulting proposal emitted by ordering gate does not contain
+ * this transaction
+ */
+TEST_F(OnDemandOrderingGateTest, ReplayedTransactionInProposal) {
+  auto block = std::make_shared<MockBlock>();
+  EXPECT_CALL(*block, height()).WillRepeatedly(Return(2));
+  OnDemandOrderingGate::BlockEvent event = {block};
+
+  // initialize mock transaction
+  auto tx1 = std::make_shared<NiceMock<MockTransaction>>();
+  auto hash = shared_model::crypto::Hash("mock code is readable");
+  ON_CALL(*tx1, hash()).WillByDefault(testing::ReturnRef(testing::Const(hash)));
+  std::vector<decltype(tx1)> txs{tx1};
+  auto tx_range = txs | boost::adaptors::indirected;
+
+  // initialize mock proposal
+  auto proposal = std::make_unique<NiceMock<MockProposal>>();
+  ON_CALL(*proposal, transactions()).WillByDefault(Return(tx_range));
+  boost::optional<OdOsNotification::ProposalType> arriving_proposal =
+      std::unique_ptr<shared_model::interface::Proposal>(std::move(proposal));
+
+  // set expectations for ordering service
+  EXPECT_CALL(*ordering_service, onCollaborationOutcome(initial_round))
+      .Times(1);
+  EXPECT_CALL(*notification, onRequestProposal(initial_round))
+      .WillOnce(Return(ByMove(std::move(arriving_proposal))));
+  EXPECT_CALL(*tx_cache,
+              check(testing::Matcher<const shared_model::crypto::Hash &>(_)))
+      .WillOnce(
+          Return(iroha::ametsuchi::tx_cache_status_responses::Committed()));
+  // expect proposal to be created without any transactions because it was
+  // removed by tx cache
+  EXPECT_CALL(
+      *factory,
+      unsafeCreateProposal(
+          _, _, MockUnsafeProposalFactory::TransactionsCollectionType()))
+      .Times(1);
+
+  auto gate_wrapper =
+      make_test_subscriber<CallExact>(ordering_gate->on_proposal(), 1);
+  gate_wrapper.subscribe([&](auto proposal) {});
+  rounds.get_subscriber().on_next(event);
+
+  ASSERT_TRUE(gate_wrapper.validate());
+}
diff --git a/test/module/shared_model/interface_mocks.hpp b/test/module/shared_model/interface_mocks.hpp
index 39ce35e3c6..b556da8881 100644
--- a/test/module/shared_model/interface_mocks.hpp
+++ b/test/module/shared_model/interface_mocks.hpp
@@ -99,7 +99,7 @@ struct MockUnsafeProposalFactory
                std::unique_ptr<shared_model::interface::Proposal>(
                    shared_model::interface::types::HeightType,
                    shared_model::interface::types::TimestampType,
-                   const TransactionsCollectionType &));
+                   TransactionsCollectionType));
 };
 
 struct MockCommonObjectsFactory