diff --git a/ethcore/src/client/client.rs b/ethcore/src/client/client.rs
index caa92db97..d8c48e696 100644
--- a/ethcore/src/client/client.rs
+++ b/ethcore/src/client/client.rs
@@ -334,6 +334,12 @@ impl<V> Client<V> where V: Verifier {
 			}
 		}
 
+		{
+			if self.queue_info().is_empty() {
+				io.send(NetworkIoMessage::User(SyncMessage::BlockQueueEmpty)).expect("error sending message to sync module");
+			}
+		}
+
 		imported
 	}
 
diff --git a/ethcore/src/service.rs b/ethcore/src/service.rs
index bcfe7724f..1c2385934 100644
--- a/ethcore/src/service.rs
+++ b/ethcore/src/service.rs
@@ -40,6 +40,8 @@ pub enum SyncMessage {
 	NewChainHead,
 	/// A block is ready
 	BlockVerified,
+	/// blocks queue is empty
+	BlockQueueEmpty,
 }
 
 /// IO Message type used for Network service
diff --git a/rpc/src/v1/impls/eth.rs b/rpc/src/v1/impls/eth.rs
index 520b37045..b0e31ba97 100644
--- a/rpc/src/v1/impls/eth.rs
+++ b/rpc/src/v1/impls/eth.rs
@@ -151,7 +151,7 @@ impl<C, S, A, M, EM> Eth for EthClient<C, S, A, M, EM>
 			Params::None => {
 				let status = take_weak!(self.sync).status();
 				let res = match status.state {
-					SyncState::NotSynced | SyncState::Idle => SyncStatus::None,
+					SyncState::NotSynced | SyncState::Idle | SyncState::FullySynced => SyncStatus::None,
 					SyncState::Waiting | SyncState::Blocks | SyncState::NewBlocks => SyncStatus::Info(SyncInfo {
 						starting_block: U256::from(status.start_block_number),
 						current_block: U256::from(take_weak!(self.client).chain_info().best_block_number),
diff --git a/sync/src/chain.rs b/sync/src/chain.rs
index 8f0194289..316718571 100644
--- a/sync/src/chain.rs
+++ b/sync/src/chain.rs
@@ -116,6 +116,8 @@ pub enum SyncState {
 	Blocks,
 	/// Downloading blocks learned from NewHashes packet
 	NewBlocks,
+	/// Once has an event that client finished processing new blocks
+	FullySynced,
 }
 
 /// Syncing status and statistics
@@ -931,6 +933,11 @@ impl ChainSync {
 	}
 	/// Called when peer sends us new transactions
 	fn on_peer_transactions(&mut self, io: &mut SyncIo, peer_id: PeerId, r: &UntrustedRlp) -> Result<(), PacketDecodeError> {
+		// accepting transactions once only fully synced
+		if self.state != SyncState::FullySynced {
+			return Ok(());
+		}
+
 		let item_count = r.item_count();
 		trace!(target: "sync", "{} -> Transactions ({} entries)", peer_id, item_count);
 
@@ -1273,15 +1280,31 @@ impl ChainSync {
 
 	/// called when block is imported to chain, updates transactions queue and propagates the blocks
 	pub fn chain_new_blocks(&mut self, io: &mut SyncIo, imported: &[H256], invalid: &[H256], enacted: &[H256], retracted: &[H256]) {
-		// Notify miner
-		self.miner.chain_new_blocks(io.chain(), imported, invalid, enacted, retracted);
+		if self.state == SyncState::FullySynced {
+			// Notify miner
+			self.miner.chain_new_blocks(io.chain(), imported, invalid, enacted, retracted);
+		}
 		// Propagate latests blocks
 		self.propagate_latest_blocks(io);
 		// TODO [todr] propagate transactions?
 	}
 
 	pub fn chain_new_head(&mut self, io: &mut SyncIo) {
-		self.miner.prepare_sealing(io.chain());
+		if self.state == SyncState::FullySynced {
+			self.miner.prepare_sealing(io.chain());
+		}
+	}
+
+	// called once has nothing to download and client reports that all that downloaded is imported
+	pub fn set_fully_synced(&mut self) {
+		self.state = SyncState::FullySynced;
+	}
+
+	// handles event from client about empty blow_queue
+	pub fn client_block_queue_empty(&mut self) {
+		if self.state == SyncState::Idle {
+			self.set_fully_synced();
+		}
 	}
 }
 
@@ -1618,6 +1641,7 @@ mod tests {
 		client.add_blocks(1, EachBlockWith::UncleAndTransaction);
 		client.add_blocks(1, EachBlockWith::Transaction);
 		let mut sync = dummy_sync_with_peer(client.block_hash_delta_minus(5));
+		sync.state = SyncState::FullySynced;
 
 		let good_blocks = vec![client.block_hash_delta_minus(2)];
 		let retracted_blocks = vec![client.block_hash_delta_minus(1)];
@@ -1637,6 +1661,34 @@ mod tests {
 		assert_eq!(status.transaction_queue_future, 0);
 	}
 
+	#[test]
+	fn should_not_add_transactions_to_queue_if_not_synced() {
+		// given
+		let mut client = TestBlockChainClient::new();
+		client.add_blocks(98, EachBlockWith::Uncle);
+		client.add_blocks(1, EachBlockWith::UncleAndTransaction);
+		client.add_blocks(1, EachBlockWith::Transaction);
+		let mut sync = dummy_sync_with_peer(client.block_hash_delta_minus(5));
+		sync.state = SyncState::Idle;
+
+		let good_blocks = vec![client.block_hash_delta_minus(2)];
+		let retracted_blocks = vec![client.block_hash_delta_minus(1)];
+
+		let mut queue = VecDeque::new();
+		let mut io = TestIo::new(&mut client, &mut queue, None);
+
+		// when
+		sync.chain_new_blocks(&mut io, &[], &[], &[], &good_blocks);
+		assert_eq!(sync.miner.status().transaction_queue_future, 0);
+		assert_eq!(sync.miner.status().transaction_queue_pending, 0);
+		sync.chain_new_blocks(&mut io, &good_blocks, &[], &[], &retracted_blocks);
+
+		// then
+		let status = sync.miner.status();
+		assert_eq!(status.transaction_queue_pending, 0);
+		assert_eq!(status.transaction_queue_future, 0);
+	}
+
 	#[test]
 	fn returns_requested_block_headers() {
 		let mut client = TestBlockChainClient::new();
diff --git a/sync/src/lib.rs b/sync/src/lib.rs
index 1c87da2de..d78ac3b89 100644
--- a/sync/src/lib.rs
+++ b/sync/src/lib.rs
@@ -173,6 +173,9 @@ impl NetworkProtocolHandler<SyncMessage> for EthSync {
 			SyncMessage::NewChainHead => {
 				let mut sync_io = NetSyncIo::new(io, self.chain.deref());
 				self.sync.write().unwrap().chain_new_head(&mut sync_io);
+			},
+			SyncMessage::BlockQueueEmpty => {
+				self.sync.write().unwrap().client_block_queue_empty();
 			}
 			_ => {/* Ignore other messages */},
 		}