diff --git a/ethcore/light/src/net/mod.rs b/ethcore/light/src/net/mod.rs
index 27d5c12a5..34f426cb7 100644
--- a/ethcore/light/src/net/mod.rs
+++ b/ethcore/light/src/net/mod.rs
@@ -72,6 +72,9 @@ const PROPAGATE_TIMEOUT_INTERVAL: Duration = Duration::from_secs(5);
 const RECALCULATE_COSTS_TIMEOUT: TimerToken = 3;
 const RECALCULATE_COSTS_INTERVAL: Duration = Duration::from_secs(60 * 60);
 
+/// Max number of transactions in a single packet.
+const MAX_TRANSACTIONS_TO_PROPAGATE: usize = 64;
+
 // minimum interval between updates.
 const UPDATE_INTERVAL: Duration = Duration::from_millis(5000);
 
@@ -648,7 +651,7 @@ impl LightProtocol {
 	fn propagate_transactions(&self, io: &IoContext) {
 		if self.capabilities.read().tx_relay { return }
 
-		let ready_transactions = self.provider.ready_transactions();
+		let ready_transactions = self.provider.ready_transactions(MAX_TRANSACTIONS_TO_PROPAGATE);
 		if ready_transactions.is_empty() { return }
 
 		trace!(target: "pip", "propagate transactions: {} ready", ready_transactions.len());
diff --git a/ethcore/light/src/net/tests/mod.rs b/ethcore/light/src/net/tests/mod.rs
index 3c04c0ffb..a653a8a7a 100644
--- a/ethcore/light/src/net/tests/mod.rs
+++ b/ethcore/light/src/net/tests/mod.rs
@@ -173,8 +173,8 @@ impl Provider for TestProvider {
 		})
 	}
 
-	fn ready_transactions(&self) -> Vec<PendingTransaction> {
-		self.0.client.ready_transactions()
+	fn ready_transactions(&self, max_len: usize) -> Vec<PendingTransaction> {
+		self.0.client.ready_transactions(max_len)
 	}
 }
 
diff --git a/ethcore/light/src/provider.rs b/ethcore/light/src/provider.rs
index c993528e2..70a4a88b5 100644
--- a/ethcore/light/src/provider.rs
+++ b/ethcore/light/src/provider.rs
@@ -128,7 +128,7 @@ pub trait Provider: Send + Sync {
 	fn header_proof(&self, req: request::CompleteHeaderProofRequest) -> Option<request::HeaderProofResponse>;
 
 	/// Provide pending transactions.
-	fn ready_transactions(&self) -> Vec<PendingTransaction>;
+	fn ready_transactions(&self, max_len: usize) -> Vec<PendingTransaction>;
 
 	/// Provide a proof-of-execution for the given transaction proof request.
 	/// Returns a vector of all state items necessary to execute the transaction.
@@ -283,8 +283,8 @@ impl<T: ProvingBlockChainClient + ?Sized> Provider for T {
 			.map(|(_, proof)| ::request::ExecutionResponse { items: proof })
 	}
 
-	fn ready_transactions(&self) -> Vec<PendingTransaction> {
-		BlockChainClient::ready_transactions(self)
+	fn ready_transactions(&self, max_len: usize) -> Vec<PendingTransaction> {
+		BlockChainClient::ready_transactions(self, max_len)
 			.into_iter()
 			.map(|tx| tx.pending().clone())
 			.collect()
@@ -370,9 +370,12 @@ impl<L: AsLightClient + Send + Sync> Provider for LightProvider<L> {
 		None
 	}
 
-	fn ready_transactions(&self) -> Vec<PendingTransaction> {
+	fn ready_transactions(&self, max_len: usize) -> Vec<PendingTransaction> {
 		let chain_info = self.chain_info();
-		self.txqueue.read().ready_transactions(chain_info.best_block_number, chain_info.best_block_timestamp)
+		let mut transactions = self.txqueue.read()
+			.ready_transactions(chain_info.best_block_number, chain_info.best_block_timestamp);
+		transactions.truncate(max_len);
+		transactions
 	}
 }
 
diff --git a/ethcore/service/src/service.rs b/ethcore/service/src/service.rs
index f703329d6..3b3407e66 100644
--- a/ethcore/service/src/service.rs
+++ b/ethcore/service/src/service.rs
@@ -94,6 +94,7 @@ impl ClientService {
 
 		let pruning = config.pruning;
 		let client = Client::new(config, &spec, client_db.clone(), miner.clone(), io_service.channel())?;
+		miner.set_io_channel(io_service.channel());
 
 		let snapshot_params = SnapServiceParams {
 			engine: spec.engine.clone(),
diff --git a/ethcore/src/client/client.rs b/ethcore/src/client/client.rs
index 580cabb3a..305f71209 100644
--- a/ethcore/src/client/client.rs
+++ b/ethcore/src/client/client.rs
@@ -200,7 +200,7 @@ pub struct Client {
 
 	/// Flag changed by `sleep` and `wake_up` methods. Not to be confused with `enabled`.
 	liveness: AtomicBool,
-	io_channel: Mutex<IoChannel<ClientIoMessage>>,
+	io_channel: RwLock<IoChannel<ClientIoMessage>>,
 
 	/// List of actors to be notified on certain chain events
 	notify: RwLock<Vec<Weak<ChainNotify>>>,
@@ -712,7 +712,7 @@ impl Client {
 			db: RwLock::new(db.clone()),
 			state_db: RwLock::new(state_db),
 			report: RwLock::new(Default::default()),
-			io_channel: Mutex::new(message_channel),
+			io_channel: RwLock::new(message_channel),
 			notify: RwLock::new(Vec::new()),
 			queue_transactions: IoChannelQueue::new(config.transaction_verification_queue_size),
 			queue_ancient_blocks: IoChannelQueue::new(MAX_ANCIENT_BLOCKS_QUEUE_SIZE),
@@ -947,7 +947,7 @@ impl Client {
 
 	/// Replace io channel. Useful for testing.
 	pub fn set_io_channel(&self, io_channel: IoChannel<ClientIoMessage>) {
-		*self.io_channel.lock() = io_channel;
+		*self.io_channel.write() = io_channel;
 	}
 
 	/// Get a copy of the best block's state.
@@ -1893,8 +1893,8 @@ impl BlockChainClient for Client {
 		(*self.build_last_hashes(&self.chain.read().best_block_hash())).clone()
 	}
 
-	fn ready_transactions(&self) -> Vec<Arc<VerifiedTransaction>> {
-		self.importer.miner.ready_transactions(self)
+	fn ready_transactions(&self, max_len: usize) -> Vec<Arc<VerifiedTransaction>> {
+		self.importer.miner.ready_transactions(self, max_len, ::miner::PendingOrdering::Priority)
 	}
 
 	fn signing_chain_id(&self) -> Option<u64> {
@@ -1952,7 +1952,7 @@ impl IoClient for Client {
 	fn queue_transactions(&self, transactions: Vec<Bytes>, peer_id: usize) {
 		trace_time!("queue_transactions");
 		let len = transactions.len();
-		self.queue_transactions.queue(&mut self.io_channel.lock(), len, move |client| {
+		self.queue_transactions.queue(&self.io_channel.read(), len, move |client| {
 			trace_time!("import_queued_transactions");
 
 			let txs: Vec<UnverifiedTransaction> = transactions
@@ -2001,7 +2001,7 @@ impl IoClient for Client {
 
 		let queued = self.queued_ancient_blocks.clone();
 		let lock = self.ancient_blocks_import_lock.clone();
-		match self.queue_ancient_blocks.queue(&mut self.io_channel.lock(), 1, move |client| {
+		match self.queue_ancient_blocks.queue(&self.io_channel.read(), 1, move |client| {
 			trace_time!("import_ancient_block");
 			// Make sure to hold the lock here to prevent importing out of order.
 			// We use separate lock, cause we don't want to block queueing.
@@ -2033,7 +2033,7 @@ impl IoClient for Client {
 	}
 
 	fn queue_consensus_message(&self, message: Bytes) {
-		match self.queue_consensus_message.queue(&mut self.io_channel.lock(), 1, move |client| {
+		match self.queue_consensus_message.queue(&self.io_channel.read(), 1, move |client| {
 			if let Err(e) = client.engine().handle_message(&message) {
 				debug!(target: "poa", "Invalid message received: {}", e);
 			}
@@ -2142,7 +2142,14 @@ impl ImportSealedBlock for Client {
 			route
 		};
 		let route = ChainRoute::from([route].as_ref());
-		self.importer.miner.chain_new_blocks(self, &[h.clone()], &[], route.enacted(), route.retracted(), true);
+		self.importer.miner.chain_new_blocks(
+			self,
+			&[h.clone()],
+			&[],
+			route.enacted(),
+			route.retracted(),
+			self.engine.seals_internally().is_some(),
+		);
 		self.notify(|notify| {
 			notify.new_blocks(
 				vec![h.clone()],
@@ -2452,7 +2459,7 @@ impl IoChannelQueue {
 		}
 	}
 
-	pub fn queue<F>(&self, channel: &mut IoChannel<ClientIoMessage>, count: usize, fun: F) -> Result<(), QueueError> where
+	pub fn queue<F>(&self, channel: &IoChannel<ClientIoMessage>, count: usize, fun: F) -> Result<(), QueueError> where
 		F: Fn(&Client) + Send + Sync + 'static,
 	{
 		let queue_size = self.currently_queued.load(AtomicOrdering::Relaxed);
diff --git a/ethcore/src/client/test_client.rs b/ethcore/src/client/test_client.rs
index 6a3166f7c..cc3892248 100644
--- a/ethcore/src/client/test_client.rs
+++ b/ethcore/src/client/test_client.rs
@@ -48,7 +48,7 @@ use log_entry::LocalizedLogEntry;
 use receipt::{Receipt, LocalizedReceipt, TransactionOutcome};
 use error::ImportResult;
 use vm::Schedule;
-use miner::{Miner, MinerService};
+use miner::{self, Miner, MinerService};
 use spec::Spec;
 use types::basic_account::BasicAccount;
 use types::mode::Mode;
@@ -806,8 +806,8 @@ impl BlockChainClient for TestBlockChainClient {
 		self.traces.read().clone()
 	}
 
-	fn ready_transactions(&self) -> Vec<Arc<VerifiedTransaction>> {
-		self.miner.ready_transactions(self)
+	fn ready_transactions(&self, max_len: usize) -> Vec<Arc<VerifiedTransaction>> {
+		self.miner.ready_transactions(self, max_len, miner::PendingOrdering::Priority)
 	}
 
 	fn signing_chain_id(&self) -> Option<u64> { None }
diff --git a/ethcore/src/client/traits.rs b/ethcore/src/client/traits.rs
index 358e24fa9..cf62043c9 100644
--- a/ethcore/src/client/traits.rs
+++ b/ethcore/src/client/traits.rs
@@ -321,7 +321,7 @@ pub trait BlockChainClient : Sync + Send + AccountData + BlockChain + CallContra
 	fn last_hashes(&self) -> LastHashes;
 
 	/// List all transactions that are allowed into the next block.
-	fn ready_transactions(&self) -> Vec<Arc<VerifiedTransaction>>;
+	fn ready_transactions(&self, max_len: usize) -> Vec<Arc<VerifiedTransaction>>;
 
 	/// Sorted list of transaction gas prices from at least last sample_size blocks.
 	fn gas_price_corpus(&self, sample_size: usize) -> ::stats::Corpus<U256> {
diff --git a/ethcore/src/miner/miner.rs b/ethcore/src/miner/miner.rs
index cabce3c91..f0ed74f52 100644
--- a/ethcore/src/miner/miner.rs
+++ b/ethcore/src/miner/miner.rs
@@ -27,6 +27,7 @@ use ethcore_miner::gas_pricer::GasPricer;
 use ethcore_miner::pool::{self, TransactionQueue, VerifiedTransaction, QueueStatus, PrioritizationStrategy};
 use ethcore_miner::work_notify::NotifyWork;
 use ethereum_types::{H256, U256, Address};
+use io::IoChannel;
 use parking_lot::{Mutex, RwLock};
 use rayon::prelude::*;
 use transaction::{
@@ -43,7 +44,7 @@ use block::{ClosedBlock, IsBlock, Block, SealedBlock};
 use client::{
 	BlockChain, ChainInfo, CallContract, BlockProducer, SealedBlockImporter, Nonce
 };
-use client::BlockId;
+use client::{BlockId, ClientIoMessage};
 use executive::contract_address;
 use header::{Header, BlockNumber};
 use miner;
@@ -209,6 +210,7 @@ pub struct Miner {
 	transaction_queue: Arc<TransactionQueue>,
 	engine: Arc<EthEngine>,
 	accounts: Option<Arc<AccountProvider>>,
+	io_channel: RwLock<Option<IoChannel<ClientIoMessage>>>,
 }
 
 impl Miner {
@@ -224,7 +226,12 @@ impl Miner {
 	}
 
 	/// Creates new instance of miner Arc.
-	pub fn new(options: MinerOptions, gas_pricer: GasPricer, spec: &Spec, accounts: Option<Arc<AccountProvider>>) -> Self {
+	pub fn new(
+		options: MinerOptions,
+		gas_pricer: GasPricer,
+		spec: &Spec,
+		accounts: Option<Arc<AccountProvider>>,
+	) -> Self {
 		let limits = options.pool_limits.clone();
 		let verifier_options = options.pool_verification_options.clone();
 		let tx_queue_strategy = options.tx_queue_strategy;
@@ -247,6 +254,7 @@ impl Miner {
 			transaction_queue: Arc::new(TransactionQueue::new(limits, verifier_options, tx_queue_strategy)),
 			accounts,
 			engine: spec.engine.clone(),
+			io_channel: RwLock::new(None),
 		}
 	}
 
@@ -266,6 +274,11 @@ impl Miner {
 		}, GasPricer::new_fixed(minimal_gas_price), spec, accounts)
 	}
 
+	/// Sets `IoChannel`
+	pub fn set_io_channel(&self, io_channel: IoChannel<ClientIoMessage>) {
+		*self.io_channel.write() = Some(io_channel);
+	}
+
 	/// Clear all pending block states
 	pub fn clear(&self) {
 		self.sealing.lock().queue.reset();
@@ -368,18 +381,28 @@ impl Miner {
 
 		let client = self.pool_client(chain);
 		let engine_params = self.engine.params();
-		let min_tx_gas = self.engine.schedule(chain_info.best_block_number).tx_gas.into();
+		let min_tx_gas: U256 = self.engine.schedule(chain_info.best_block_number).tx_gas.into();
 		let nonce_cap: Option<U256> = if chain_info.best_block_number + 1 >= engine_params.dust_protection_transition {
 			Some((engine_params.nonce_cap_increment * (chain_info.best_block_number + 1)).into())
 		} else {
 			None
 		};
+		// we will never need more transactions than limit divided by min gas
+		let max_transactions = if min_tx_gas.is_zero() {
+			usize::max_value()
+		} else {
+			(*open_block.block().header().gas_limit() / min_tx_gas).as_u64() as usize
+		};
 
 		let pending: Vec<Arc<_>> = self.transaction_queue.pending(
 			client.clone(),
-			chain_info.best_block_number,
-			chain_info.best_block_timestamp,
-			nonce_cap,
+			pool::PendingSettings {
+				block_number: chain_info.best_block_number,
+				current_timestamp: chain_info.best_block_timestamp,
+				nonce_cap,
+				max_len: max_transactions,
+				ordering: miner::PendingOrdering::Priority,
+			}
 		);
 
 		let took_ms = |elapsed: &Duration| {
@@ -871,7 +894,7 @@ impl miner::MinerService for Miner {
 		}
 	}
 
-	fn ready_transactions<C>(&self, chain: &C)
+	fn ready_transactions<C>(&self, chain: &C, max_len: usize, ordering: miner::PendingOrdering)
 		-> Vec<Arc<VerifiedTransaction>>
 	where
 		C: ChainInfo + Nonce + Sync,
@@ -879,14 +902,20 @@ impl miner::MinerService for Miner {
 		let chain_info = chain.chain_info();
 
 		let from_queue = || {
+			// We propagate transactions over the nonce cap.
+			// The mechanism is only to limit number of transactions in pending block
+			// those transactions are valid and will just be ready to be included in next block.
+			let nonce_cap = None;
+
 			self.transaction_queue.pending(
 				CachedNonceClient::new(chain, &self.nonce_cache),
-				chain_info.best_block_number,
-				chain_info.best_block_timestamp,
-				// We propagate transactions over the nonce cap.
-				// The mechanism is only to limit number of transactions in pending block
-				// those transactions are valid and will just be ready to be included in next block.
-				None,
+				pool::PendingSettings {
+					block_number: chain_info.best_block_number,
+					current_timestamp: chain_info.best_block_timestamp,
+					nonce_cap,
+					max_len,
+					ordering,
+				},
 			)
 		};
 
@@ -896,6 +925,7 @@ impl miner::MinerService for Miner {
 					.iter()
 					.map(|signed| pool::VerifiedTransaction::from_pending_block_transaction(signed.clone()))
 					.map(Arc::new)
+					.take(max_len)
 					.collect()
 			}, chain_info.best_block_number)
 		};
@@ -1130,7 +1160,32 @@ impl miner::MinerService for Miner {
 			// (thanks to Ready), but culling can take significant amount of time,
 			// so best to leave it after we create some work for miners to prevent increased
 			// uncle rate.
-			self.transaction_queue.cull(client);
+			// If the io_channel is available attempt to offload culling to a separate task
+			// to avoid blocking chain_new_blocks
+			if let Some(ref channel) = *self.io_channel.read() {
+				let queue = self.transaction_queue.clone();
+				let nonce_cache = self.nonce_cache.clone();
+				let engine = self.engine.clone();
+				let accounts = self.accounts.clone();
+				let refuse_service_transactions = self.options.refuse_service_transactions;
+
+				let cull = move |chain: &::client::Client| {
+					let client = PoolClient::new(
+						chain,
+						&nonce_cache,
+						&*engine,
+						accounts.as_ref().map(|x| &**x),
+						refuse_service_transactions,
+					);
+					queue.cull(client);
+				};
+
+				if let Err(e) = channel.send(ClientIoMessage::execute(cull)) {
+					warn!(target: "miner", "Error queueing cull: {:?}", e);
+				}
+			} else {
+				self.transaction_queue.cull(client);
+			}
 		}
 	}
 
@@ -1160,7 +1215,7 @@ mod tests {
 	use rustc_hex::FromHex;
 
 	use client::{TestBlockChainClient, EachBlockWith, ChainInfo, ImportSealedBlock};
-	use miner::MinerService;
+	use miner::{MinerService, PendingOrdering};
 	use test_helpers::{generate_dummy_client, generate_dummy_client_with_spec_and_accounts};
 	use transaction::{Transaction};
 
@@ -1259,7 +1314,7 @@ mod tests {
 		assert_eq!(res.unwrap(), ());
 		assert_eq!(miner.pending_transactions(best_block).unwrap().len(), 1);
 		assert_eq!(miner.pending_receipts(best_block).unwrap().len(), 1);
-		assert_eq!(miner.ready_transactions(&client).len(), 1);
+		assert_eq!(miner.ready_transactions(&client, 10, PendingOrdering::Priority).len(), 1);
 		// This method will let us know if pending block was created (before calling that method)
 		assert!(!miner.prepare_pending_block(&client));
 	}
@@ -1278,7 +1333,7 @@ mod tests {
 		assert_eq!(res.unwrap(), ());
 		assert_eq!(miner.pending_transactions(best_block), None);
 		assert_eq!(miner.pending_receipts(best_block), None);
-		assert_eq!(miner.ready_transactions(&client).len(), 1);
+		assert_eq!(miner.ready_transactions(&client, 10, PendingOrdering::Priority).len(), 1);
 	}
 
 	#[test]
@@ -1297,11 +1352,11 @@ mod tests {
 		assert_eq!(miner.pending_transactions(best_block), None);
 		assert_eq!(miner.pending_receipts(best_block), None);
 		// By default we use PendingSet::AlwaysSealing, so no transactions yet.
-		assert_eq!(miner.ready_transactions(&client).len(), 0);
+		assert_eq!(miner.ready_transactions(&client, 10, PendingOrdering::Priority).len(), 0);
 		// This method will let us know if pending block was created (before calling that method)
 		assert!(miner.prepare_pending_block(&client));
 		// After pending block is created we should see a transaction.
-		assert_eq!(miner.ready_transactions(&client).len(), 1);
+		assert_eq!(miner.ready_transactions(&client, 10, PendingOrdering::Priority).len(), 1);
 	}
 
 	#[test]
diff --git a/ethcore/src/miner/mod.rs b/ethcore/src/miner/mod.rs
index 340285b9b..cfe6946aa 100644
--- a/ethcore/src/miner/mod.rs
+++ b/ethcore/src/miner/mod.rs
@@ -26,6 +26,7 @@ pub mod pool_client;
 pub mod stratum;
 
 pub use self::miner::{Miner, MinerOptions, Penalization, PendingSet, AuthoringParams};
+pub use ethcore_miner::pool::PendingOrdering;
 
 use std::sync::Arc;
 use std::collections::{BTreeSet, BTreeMap};
@@ -173,7 +174,9 @@ pub trait MinerService : Send + Sync {
 	/// Get a list of all ready transactions either ordered by priority or unordered (cheaper).
 	///
 	/// Depending on the settings may look in transaction pool or only in pending block.
-	fn ready_transactions<C>(&self, chain: &C) -> Vec<Arc<VerifiedTransaction>>
+	/// If you don't need a full set of transactions, you can add `max_len` and create only a limited set of
+	/// transactions.
+	fn ready_transactions<C>(&self, chain: &C, max_len: usize, ordering: PendingOrdering) -> Vec<Arc<VerifiedTransaction>>
 		where C: ChainInfo + Nonce + Sync;
 
 	/// Get a list of all transactions in the pool (some of them might not be ready for inclusion yet).
diff --git a/ethcore/src/miner/pool_client.rs b/ethcore/src/miner/pool_client.rs
index c49eec6ee..d8fadd89a 100644
--- a/ethcore/src/miner/pool_client.rs
+++ b/ethcore/src/miner/pool_client.rs
@@ -16,8 +16,11 @@
 
 //! Blockchain access for transaction pool.
 
-use std::fmt;
-use std::collections::HashMap;
+use std::{
+	collections::HashMap,
+	fmt,
+	sync::Arc,
+};
 
 use ethereum_types::{H256, U256, Address};
 use ethcore_miner::pool;
@@ -37,9 +40,9 @@ use miner;
 use miner::service_transaction_checker::ServiceTransactionChecker;
 
 /// Cache for state nonces.
-#[derive(Debug)]
+#[derive(Debug, Clone)]
 pub struct NonceCache {
-	nonces: RwLock<HashMap<Address, U256>>,
+	nonces: Arc<RwLock<HashMap<Address, U256>>>,
 	limit: usize
 }
 
@@ -47,7 +50,7 @@ impl NonceCache {
 	/// Create new cache with a limit of `limit` entries.
 	pub fn new(limit: usize) -> Self {
 		NonceCache {
-			nonces: RwLock::new(HashMap::with_capacity(limit / 2)),
+			nonces: Arc::new(RwLock::new(HashMap::with_capacity(limit / 2))),
 			limit,
 		}
 	}
diff --git a/ethcore/src/tests/client.rs b/ethcore/src/tests/client.rs
index 6dcad9ba6..dbbd50041 100644
--- a/ethcore/src/tests/client.rs
+++ b/ethcore/src/tests/client.rs
@@ -30,7 +30,7 @@ use test_helpers::{
 use types::filter::Filter;
 use ethereum_types::{U256, Address};
 use kvdb_rocksdb::{Database, DatabaseConfig};
-use miner::Miner;
+use miner::{Miner, PendingOrdering};
 use spec::Spec;
 use views::BlockView;
 use ethkey::KeyPair;
@@ -345,12 +345,12 @@ fn does_not_propagate_delayed_transactions() {
 
 	client.miner().import_own_transaction(&*client, tx0).unwrap();
 	client.miner().import_own_transaction(&*client, tx1).unwrap();
-	assert_eq!(0, client.ready_transactions().len());
-	assert_eq!(0, client.miner().ready_transactions(&*client).len());
+	assert_eq!(0, client.ready_transactions(10).len());
+	assert_eq!(0, client.miner().ready_transactions(&*client, 10, PendingOrdering::Priority).len());
 	push_blocks_to_client(&client, 53, 2, 2);
 	client.flush_queue();
-	assert_eq!(2, client.ready_transactions().len());
-	assert_eq!(2, client.miner().ready_transactions(&*client).len());
+	assert_eq!(2, client.ready_transactions(10).len());
+	assert_eq!(2, client.miner().ready_transactions(&*client, 10, PendingOrdering::Priority).len());
 }
 
 #[test]
diff --git a/ethcore/sync/src/api.rs b/ethcore/sync/src/api.rs
index d5df80bb7..4f7fc8042 100644
--- a/ethcore/sync/src/api.rs
+++ b/ethcore/sync/src/api.rs
@@ -357,6 +357,10 @@ impl SyncProvider for EthSync {
 	}
 }
 
+const PEERS_TIMER: TimerToken = 0;
+const SYNC_TIMER: TimerToken = 1;
+const TX_TIMER: TimerToken = 2;
+
 struct SyncProtocolHandler {
 	/// Shared blockchain client.
 	chain: Arc<BlockChainClient>,
@@ -371,7 +375,9 @@ struct SyncProtocolHandler {
 impl NetworkProtocolHandler for SyncProtocolHandler {
 	fn initialize(&self, io: &NetworkContext, _host_info: &HostInfo) {
 		if io.subprotocol_name() != WARP_SYNC_PROTOCOL_ID {
-			io.register_timer(0, Duration::from_secs(1)).expect("Error registering sync timer");
+			io.register_timer(PEERS_TIMER, Duration::from_millis(700)).expect("Error registering peers timer");
+			io.register_timer(SYNC_TIMER, Duration::from_millis(1100)).expect("Error registering sync timer");
+			io.register_timer(TX_TIMER, Duration::from_millis(1300)).expect("Error registering transactions timer");
 		}
 	}
 
@@ -396,12 +402,17 @@ impl NetworkProtocolHandler for SyncProtocolHandler {
 		}
 	}
 
-	fn timeout(&self, io: &NetworkContext, _timer: TimerToken) {
+	fn timeout(&self, io: &NetworkContext, timer: TimerToken) {
 		trace_time!("sync::timeout");
 		let mut io = NetSyncIo::new(io, &*self.chain, &*self.snapshot_service, &self.overlay);
-		self.sync.write().maintain_peers(&mut io);
-		self.sync.write().maintain_sync(&mut io);
-		self.sync.write().propagate_new_transactions(&mut io);
+		match timer {
+			PEERS_TIMER => self.sync.write().maintain_peers(&mut io),
+			SYNC_TIMER => self.sync.write().maintain_sync(&mut io),
+			TX_TIMER => {
+				self.sync.write().propagate_new_transactions(&mut io);
+			},
+			_ => warn!("Unknown timer {} triggered.", timer),
+		}
 	}
 }
 
diff --git a/ethcore/sync/src/chain/mod.rs b/ethcore/sync/src/chain/mod.rs
index 7dcd7ef06..0b2efeb1a 100644
--- a/ethcore/sync/src/chain/mod.rs
+++ b/ethcore/sync/src/chain/mod.rs
@@ -149,6 +149,10 @@ const MAX_NEW_HASHES: usize = 64;
 const MAX_NEW_BLOCK_AGE: BlockNumber = 20;
 // maximal packet size with transactions (cannot be greater than 16MB - protocol limitation).
 const MAX_TRANSACTION_PACKET_SIZE: usize = 8 * 1024 * 1024;
+// Maximal number of transactions queried from miner to propagate.
+// This set is used to diff with transactions known by the peer and
+// we will send a difference of length up to `MAX_TRANSACTIONS_TO_PROPAGATE`.
+const MAX_TRANSACTIONS_TO_QUERY: usize = 4096;
 // Maximal number of transactions in sent in single packet.
 const MAX_TRANSACTIONS_TO_PROPAGATE: usize = 64;
 // Min number of blocks to be behind for a snapshot sync
@@ -1144,7 +1148,7 @@ pub mod tests {
 	use super::{PeerInfo, PeerAsking};
 	use ethcore::header::*;
 	use ethcore::client::{BlockChainClient, EachBlockWith, TestBlockChainClient, ChainInfo, BlockInfo};
-	use ethcore::miner::MinerService;
+	use ethcore::miner::{MinerService, PendingOrdering};
 	use private_tx::NoopPrivateTxHandler;
 
 	pub fn get_dummy_block(order: u32, parent_hash: H256) -> Bytes {
@@ -1357,7 +1361,7 @@ pub mod tests {
 			let mut io = TestIo::new(&mut client, &ss, &queue, None);
 			io.chain.miner.chain_new_blocks(io.chain, &[], &[], &[], &good_blocks, false);
 			sync.chain_new_blocks(&mut io, &[], &[], &[], &good_blocks, &[], &[]);
-			assert_eq!(io.chain.miner.ready_transactions(io.chain).len(), 1);
+			assert_eq!(io.chain.miner.ready_transactions(io.chain, 10, PendingOrdering::Priority).len(), 1);
 		}
 		// We need to update nonce status (because we say that the block has been imported)
 		for h in &[good_blocks[0]] {
@@ -1373,7 +1377,7 @@ pub mod tests {
 		}
 
 		// then
-		assert_eq!(client.miner.ready_transactions(&client).len(), 1);
+		assert_eq!(client.miner.ready_transactions(&client, 10, PendingOrdering::Priority).len(), 1);
 	}
 
 	#[test]
diff --git a/ethcore/sync/src/chain/propagator.rs b/ethcore/sync/src/chain/propagator.rs
index 4ae0518a5..75cf550f2 100644
--- a/ethcore/sync/src/chain/propagator.rs
+++ b/ethcore/sync/src/chain/propagator.rs
@@ -33,6 +33,7 @@ use super::{
 	MAX_PEERS_PROPAGATION,
 	MAX_TRANSACTION_PACKET_SIZE,
 	MAX_TRANSACTIONS_TO_PROPAGATE,
+	MAX_TRANSACTIONS_TO_QUERY,
 	MIN_PEERS_PROPAGATION,
 	CONSENSUS_DATA_PACKET,
 	NEW_BLOCK_HASHES_PACKET,
@@ -114,7 +115,7 @@ impl SyncPropagator {
 			return 0;
 		}
 
-		let transactions = io.chain().ready_transactions();
+		let transactions = io.chain().ready_transactions(MAX_TRANSACTIONS_TO_QUERY);
 		if transactions.is_empty() {
 			return 0;
 		}
diff --git a/miner/src/lib.rs b/miner/src/lib.rs
index 89c716064..497ae7f44 100644
--- a/miner/src/lib.rs
+++ b/miner/src/lib.rs
@@ -35,9 +35,9 @@ extern crate transaction_pool as txpool;
 #[macro_use]
 extern crate error_chain;
 #[macro_use]
-extern crate trace_time;
-#[macro_use]
 extern crate log;
+#[macro_use]
+extern crate trace_time;
 
 #[cfg(test)]
 extern crate rustc_hex;
diff --git a/miner/src/pool/mod.rs b/miner/src/pool/mod.rs
index 582b99e17..bef1cb164 100644
--- a/miner/src/pool/mod.rs
+++ b/miner/src/pool/mod.rs
@@ -16,7 +16,7 @@
 
 //! Transaction Pool
 
-use ethereum_types::{H256, Address};
+use ethereum_types::{U256, H256, Address};
 use heapsize::HeapSizeOf;
 use transaction;
 use txpool;
@@ -45,6 +45,43 @@ pub enum PrioritizationStrategy {
 	GasPriceOnly,
 }
 
+/// Transaction ordering when requesting pending set.
+#[derive(Debug, PartialEq, Eq, Clone, Copy)]
+pub enum PendingOrdering {
+	/// Get pending transactions ordered by their priority (potentially expensive)
+	Priority,
+	/// Get pending transactions without any care of particular ordering (cheaper).
+	Unordered,
+}
+
+/// Pending set query settings
+#[derive(Debug, Clone)]
+pub struct PendingSettings {
+	/// Current block number (affects readiness of some transactions).
+	pub block_number: u64,
+	/// Current timestamp (affects readiness of some transactions).
+	pub current_timestamp: u64,
+	/// Nonce cap (for dust protection; EIP-168)
+	pub nonce_cap: Option<U256>,
+	/// Maximal number of transactions in pending the set.
+	pub max_len: usize,
+	/// Ordering of transactions.
+	pub ordering: PendingOrdering,
+}
+
+impl PendingSettings {
+	/// Get all transactions (no cap or len limit) prioritized.
+	pub fn all_prioritized(block_number: u64, current_timestamp: u64) -> Self {
+		PendingSettings {
+			block_number,
+			current_timestamp,
+			nonce_cap: None,
+			max_len: usize::max_value(),
+			ordering: PendingOrdering::Priority,
+		}
+	}
+}
+
 /// Transaction priority.
 #[derive(Debug, PartialEq, Eq, PartialOrd,  Clone, Copy)]
 pub(crate) enum Priority {
diff --git a/miner/src/pool/queue.rs b/miner/src/pool/queue.rs
index 5e44b849e..f7f9a9c19 100644
--- a/miner/src/pool/queue.rs
+++ b/miner/src/pool/queue.rs
@@ -26,7 +26,10 @@ use parking_lot::RwLock;
 use transaction;
 use txpool::{self, Verifier};
 
-use pool::{self, scoring, verifier, client, ready, listener, PrioritizationStrategy};
+use pool::{
+	self, scoring, verifier, client, ready, listener,
+	PrioritizationStrategy, PendingOrdering, PendingSettings,
+};
 use pool::local_transactions::LocalTransactionsList;
 
 type Listener = (LocalTransactionsList, (listener::Notifier, listener::Logger));
@@ -82,6 +85,7 @@ struct CachedPending {
 	nonce_cap: Option<U256>,
 	has_local_pending: bool,
 	pending: Option<Vec<Arc<pool::VerifiedTransaction>>>,
+	max_len: usize,
 }
 
 impl CachedPending {
@@ -93,6 +97,7 @@ impl CachedPending {
 			has_local_pending: false,
 			pending: None,
 			nonce_cap: None,
+			max_len: 0,
 		}
 	}
 
@@ -107,6 +112,7 @@ impl CachedPending {
 		block_number: u64,
 		current_timestamp: u64,
 		nonce_cap: Option<&U256>,
+		max_len: usize,
 	) -> Option<Vec<Arc<pool::VerifiedTransaction>>> {
 		// First check if we have anything in cache.
 		let pending = self.pending.as_ref()?;
@@ -131,7 +137,12 @@ impl CachedPending {
 			return None;
 		}
 
-		Some(pending.clone())
+		// It's fine to just take a smaller subset, but not other way around.
+		if max_len > self.max_len {
+			return None;
+		}
+
+		Some(pending.iter().take(max_len).cloned().collect())
 	}
 }
 
@@ -228,7 +239,7 @@ impl TransactionQueue {
 		transactions: Vec<verifier::Transaction>,
 	) -> Vec<Result<(), transaction::Error>> {
 		// Run verification
-		let _timer = ::trace_time::PerfTimer::new("pool::verify_and_import");
+		trace_time!("pool::verify_and_import");
 		let options = self.options.read().clone();
 
 		let transaction_to_replace = {
@@ -287,10 +298,10 @@ impl TransactionQueue {
 		results
 	}
 
-	/// Returns all transactions in the queue ordered by priority.
+	/// Returns all transactions in the queue without explicit ordering.
 	pub fn all_transactions(&self) -> Vec<Arc<pool::VerifiedTransaction>> {
 		let ready = |_tx: &pool::VerifiedTransaction| txpool::Readiness::Ready;
-		self.pool.read().pending(ready).collect()
+		self.pool.read().unordered_pending(ready).collect()
 	}
 
 	/// Computes unordered set of pending hashes.
@@ -314,24 +325,31 @@ impl TransactionQueue {
 	pub fn pending<C>(
 		&self,
 		client: C,
-		block_number: u64,
-		current_timestamp: u64,
-		nonce_cap: Option<U256>,
+		settings: PendingSettings,
 	) -> Vec<Arc<pool::VerifiedTransaction>> where
 		C: client::NonceClient,
 	{
-
-		if let Some(pending) = self.cached_pending.read().pending(block_number, current_timestamp, nonce_cap.as_ref()) {
+		let PendingSettings { block_number, current_timestamp, nonce_cap, max_len, ordering } = settings;
+		if let Some(pending) = self.cached_pending.read().pending(block_number, current_timestamp, nonce_cap.as_ref(), max_len) {
 			return pending;
 		}
 
 		// Double check after acquiring write lock
 		let mut cached_pending = self.cached_pending.write();
-		if let Some(pending) = cached_pending.pending(block_number, current_timestamp, nonce_cap.as_ref()) {
+		if let Some(pending) = cached_pending.pending(block_number, current_timestamp, nonce_cap.as_ref(), max_len) {
 			return pending;
 		}
 
-		let pending: Vec<_> = self.collect_pending(client, block_number, current_timestamp, nonce_cap, |i| i.collect());
+		// In case we don't have a cached set, but we don't care about order
+		// just return the unordered set.
+		if let PendingOrdering::Unordered = ordering {
+			let ready = Self::ready(client, block_number, current_timestamp, nonce_cap);
+			return self.pool.read().unordered_pending(ready).take(max_len).collect();
+		}
+
+		let pending: Vec<_> = self.collect_pending(client, block_number, current_timestamp, nonce_cap, |i| {
+			i.take(max_len).collect()
+		});
 
 		*cached_pending = CachedPending {
 			block_number,
@@ -339,6 +357,7 @@ impl TransactionQueue {
 			nonce_cap,
 			has_local_pending: self.has_local_pending_transactions(),
 			pending: Some(pending.clone()),
+			max_len,
 		};
 
 		pending
@@ -363,15 +382,27 @@ impl TransactionQueue {
 			scoring::NonceAndGasPrice,
 			Listener,
 		>) -> T,
+	{
+		debug!(target: "txqueue", "Re-computing pending set for block: {}", block_number);
+		trace_time!("pool::collect_pending");
+		let ready = Self::ready(client, block_number, current_timestamp, nonce_cap);
+		collect(self.pool.read().pending(ready))
+	}
+
+	fn ready<C>(
+		client: C,
+		block_number: u64,
+		current_timestamp: u64,
+		nonce_cap: Option<U256>,
+	) -> (ready::Condition, ready::State<C>) where
+		C: client::NonceClient,
 	{
 		let pending_readiness = ready::Condition::new(block_number, current_timestamp);
 		// don't mark any transactions as stale at this point.
 		let stale_id = None;
 		let state_readiness = ready::State::new(client, stale_id, nonce_cap);
 
-		let ready = (pending_readiness, state_readiness);
-
-		collect(self.pool.read().pending(ready))
+		(pending_readiness, state_readiness)
 	}
 
 	/// Culls all stalled transactions from the pool.
@@ -523,6 +554,12 @@ impl TransactionQueue {
 		let mut pool = self.pool.write();
 		(pool.listener_mut().1).0.add(f);
 	}
+
+	/// Check if pending set is cached.
+	#[cfg(test)]
+	pub fn is_pending_cached(&self) -> bool {
+		self.cached_pending.read().pending.is_some()
+	}
 }
 
 
@@ -549,7 +586,7 @@ mod tests {
 	fn should_get_pending_transactions() {
 		let queue = TransactionQueue::new(txpool::Options::default(), verifier::Options::default(), PrioritizationStrategy::GasPriceOnly);
 
-		let pending: Vec<_> = queue.pending(TestClient::default(), 0, 0, None);
+		let pending: Vec<_> = queue.pending(TestClient::default(), PendingSettings::all_prioritized(0, 0));
 
 		for tx in pending {
 			assert!(tx.signed().nonce > 0.into());
diff --git a/miner/src/pool/tests/mod.rs b/miner/src/pool/tests/mod.rs
index 081a30b6c..c0252f862 100644
--- a/miner/src/pool/tests/mod.rs
+++ b/miner/src/pool/tests/mod.rs
@@ -18,7 +18,7 @@ use ethereum_types::U256;
 use transaction::{self, PendingTransaction};
 use txpool;
 
-use pool::{verifier, TransactionQueue, PrioritizationStrategy};
+use pool::{verifier, TransactionQueue, PrioritizationStrategy, PendingSettings, PendingOrdering};
 
 pub mod tx;
 pub mod client;
@@ -158,7 +158,7 @@ fn should_handle_same_transaction_imported_twice_with_different_state_nonces() {
 	// and then there should be only one transaction in current (the one with higher gas_price)
 	assert_eq!(res, vec![Ok(())]);
 	assert_eq!(txq.status().status.transaction_count, 1);
-	let top = txq.pending(TestClient::new(), 0, 0, None);
+	let top = txq.pending(TestClient::new(), PendingSettings::all_prioritized(0, 0));
 	assert_eq!(top[0].hash, hash);
 }
 
@@ -183,7 +183,7 @@ fn should_move_all_transactions_from_future() {
 	// then
 	assert_eq!(res, vec![Ok(())]);
 	assert_eq!(txq.status().status.transaction_count, 2);
-	let top = txq.pending(TestClient::new(), 0, 0, None);
+	let top = txq.pending(TestClient::new(), PendingSettings::all_prioritized(0, 0));
 	assert_eq!(top[0].hash, hash);
 	assert_eq!(top[1].hash, hash2);
 }
@@ -257,7 +257,7 @@ fn should_import_txs_from_same_sender() {
 	txq.import(TestClient::new(), txs.local().into_vec());
 
 	// then
-	let top = txq.pending(TestClient::new(), 0 ,0, None);
+	let top = txq.pending(TestClient::new(), PendingSettings::all_prioritized(0 ,0));
 	assert_eq!(top[0].hash, hash);
 	assert_eq!(top[1].hash, hash2);
 	assert_eq!(top.len(), 2);
@@ -279,7 +279,7 @@ fn should_prioritize_local_transactions_within_same_nonce_height() {
 	assert_eq!(res, vec![Ok(()), Ok(())]);
 
 	// then
-	let top = txq.pending(client, 0, 0, None);
+	let top = txq.pending(client, PendingSettings::all_prioritized(0, 0));
 	assert_eq!(top[0].hash, hash); // local should be first
 	assert_eq!(top[1].hash, hash2);
 	assert_eq!(top.len(), 2);
@@ -301,7 +301,7 @@ fn should_prioritize_reimported_transactions_within_same_nonce_height() {
 	assert_eq!(res, vec![Ok(()), Ok(())]);
 
 	// then
-	let top = txq.pending(TestClient::new(), 0, 0, None);
+	let top = txq.pending(TestClient::new(), PendingSettings::all_prioritized(0, 0));
 	assert_eq!(top[0].hash, hash); // retracted should be first
 	assert_eq!(top[1].hash, hash2);
 	assert_eq!(top.len(), 2);
@@ -320,7 +320,7 @@ fn should_not_prioritize_local_transactions_with_different_nonce_height() {
 	assert_eq!(res, vec![Ok(()), Ok(())]);
 
 	// then
-	let top = txq.pending(TestClient::new(), 0, 0, None);
+	let top = txq.pending(TestClient::new(), PendingSettings::all_prioritized(0, 0));
 	assert_eq!(top[0].hash, hash);
 	assert_eq!(top[1].hash, hash2);
 	assert_eq!(top.len(), 2);
@@ -338,7 +338,7 @@ fn should_put_transaction_to_futures_if_gap_detected() {
 
 	// then
 	assert_eq!(res, vec![Ok(()), Ok(())]);
-	let top = txq.pending(TestClient::new(), 0, 0, None);
+	let top = txq.pending(TestClient::new(), PendingSettings::all_prioritized(0, 0));
 	assert_eq!(top.len(), 1);
 	assert_eq!(top[0].hash, hash);
 }
@@ -358,9 +358,9 @@ fn should_handle_min_block() {
 	assert_eq!(res, vec![Ok(()), Ok(())]);
 
 	// then
-	let top = txq.pending(TestClient::new(), 0, 0, None);
+	let top = txq.pending(TestClient::new(), PendingSettings::all_prioritized(0, 0));
 	assert_eq!(top.len(), 0);
-	let top = txq.pending(TestClient::new(), 1, 0, None);
+	let top = txq.pending(TestClient::new(), PendingSettings::all_prioritized(1, 0));
 	assert_eq!(top.len(), 2);
 }
 
@@ -391,7 +391,7 @@ fn should_move_transactions_if_gap_filled() {
 	let res = txq.import(TestClient::new(), vec![tx, tx2].local());
 	assert_eq!(res, vec![Ok(()), Ok(())]);
 	assert_eq!(txq.status().status.transaction_count, 2);
-	assert_eq!(txq.pending(TestClient::new(), 0, 0, None).len(), 1);
+	assert_eq!(txq.pending(TestClient::new(), PendingSettings::all_prioritized(0, 0)).len(), 1);
 
 	// when
 	let res = txq.import(TestClient::new(), vec![tx1.local()]);
@@ -399,7 +399,7 @@ fn should_move_transactions_if_gap_filled() {
 
 	// then
 	assert_eq!(txq.status().status.transaction_count, 3);
-	assert_eq!(txq.pending(TestClient::new(), 0, 0, None).len(), 3);
+	assert_eq!(txq.pending(TestClient::new(), PendingSettings::all_prioritized(0, 0)).len(), 3);
 }
 
 #[test]
@@ -411,12 +411,12 @@ fn should_remove_transaction() {
 	let res = txq.import(TestClient::default(), vec![tx, tx2].local());
 	assert_eq!(res, vec![Ok(()), Ok(())]);
 	assert_eq!(txq.status().status.transaction_count, 2);
-	assert_eq!(txq.pending(TestClient::new(), 0, 0, None).len(), 1);
+	assert_eq!(txq.pending(TestClient::new(), PendingSettings::all_prioritized(0, 0)).len(), 1);
 
 	// when
 	txq.cull(TestClient::new().with_nonce(124));
 	assert_eq!(txq.status().status.transaction_count, 1);
-	assert_eq!(txq.pending(TestClient::new().with_nonce(125), 0, 0, None).len(), 1);
+	assert_eq!(txq.pending(TestClient::new().with_nonce(125), PendingSettings::all_prioritized(0, 0)).len(), 1);
 	txq.cull(TestClient::new().with_nonce(126));
 
 	// then
@@ -434,19 +434,19 @@ fn should_move_transactions_to_future_if_gap_introduced() {
 	let res = txq.import(TestClient::new(), vec![tx3, tx2].local());
 	assert_eq!(res, vec![Ok(()), Ok(())]);
 	assert_eq!(txq.status().status.transaction_count, 2);
-	assert_eq!(txq.pending(TestClient::new(), 0, 0, None).len(), 1);
+	assert_eq!(txq.pending(TestClient::new(), PendingSettings::all_prioritized(0, 0)).len(), 1);
 
 	let res = txq.import(TestClient::new(), vec![tx].local());
 	assert_eq!(res, vec![Ok(())]);
 	assert_eq!(txq.status().status.transaction_count, 3);
-	assert_eq!(txq.pending(TestClient::new(), 0, 0, None).len(), 3);
+	assert_eq!(txq.pending(TestClient::new(), PendingSettings::all_prioritized(0, 0)).len(), 3);
 
 	// when
 	txq.remove(vec![&hash], true);
 
 	// then
 	assert_eq!(txq.status().status.transaction_count, 2);
-	assert_eq!(txq.pending(TestClient::new(), 0, 0, None).len(), 1);
+	assert_eq!(txq.pending(TestClient::new(), PendingSettings::all_prioritized(0, 0)).len(), 1);
 }
 
 #[test]
@@ -497,7 +497,7 @@ fn should_prefer_current_transactions_when_hitting_the_limit() {
 	assert_eq!(res, vec![Ok(())]);
 	assert_eq!(txq.status().status.transaction_count, 1);
 
-	let top = txq.pending(TestClient::new(), 0, 0, None);
+	let top = txq.pending(TestClient::new(), PendingSettings::all_prioritized(0, 0));
 	assert_eq!(top.len(), 1);
 	assert_eq!(top[0].hash, hash);
 	assert_eq!(txq.next_nonce(TestClient::new(), &sender), Some(124.into()));
@@ -545,19 +545,19 @@ fn should_accept_same_transaction_twice_if_removed() {
 	let res = txq.import(TestClient::new(), txs.local().into_vec());
 	assert_eq!(res, vec![Ok(()), Ok(())]);
 	assert_eq!(txq.status().status.transaction_count, 2);
-	assert_eq!(txq.pending(TestClient::new(), 0, 0, None).len(), 2);
+	assert_eq!(txq.pending(TestClient::new(), PendingSettings::all_prioritized(0, 0)).len(), 2);
 
 	// when
 	txq.remove(vec![&hash], true);
 	assert_eq!(txq.status().status.transaction_count, 1);
-	assert_eq!(txq.pending(TestClient::new(), 0, 0, None).len(), 0);
+	assert_eq!(txq.pending(TestClient::new(), PendingSettings::all_prioritized(0, 0)).len(), 0);
 
 	let res = txq.import(TestClient::new(), vec![tx1].local());
 	assert_eq!(res, vec![Ok(())]);
 
 	// then
 	assert_eq!(txq.status().status.transaction_count, 2);
-	assert_eq!(txq.pending(TestClient::new(), 0, 0, None).len(), 2);
+	assert_eq!(txq.pending(TestClient::new(), PendingSettings::all_prioritized(0, 0)).len(), 2);
 }
 
 #[test]
@@ -577,8 +577,8 @@ fn should_not_replace_same_transaction_if_the_fee_is_less_than_minimal_bump() {
 	// then
 	assert_eq!(res, vec![Err(transaction::Error::TooCheapToReplace), Ok(())]);
 	assert_eq!(txq.status().status.transaction_count, 2);
-	assert_eq!(txq.pending(client.clone(), 0, 0, None)[0].signed().gas_price, U256::from(20));
-	assert_eq!(txq.pending(client.clone(), 0, 0, None)[1].signed().gas_price, U256::from(2));
+	assert_eq!(txq.pending(client.clone(), PendingSettings::all_prioritized(0, 0))[0].signed().gas_price, U256::from(20));
+	assert_eq!(txq.pending(client.clone(), PendingSettings::all_prioritized(0, 0))[1].signed().gas_price, U256::from(2));
 }
 
 #[test]
@@ -620,7 +620,7 @@ fn should_return_valid_last_nonce_after_cull() {
 	let client = TestClient::new().with_nonce(124);
 	txq.cull(client.clone());
 	// tx2 should be not be promoted to current
-	assert_eq!(txq.pending(client.clone(), 0, 0, None).len(), 0);
+	assert_eq!(txq.pending(client.clone(), PendingSettings::all_prioritized(0, 0)).len(), 0);
 
 	// then
 	assert_eq!(txq.next_nonce(client.clone(), &sender), None);
@@ -718,7 +718,7 @@ fn should_accept_local_transactions_below_min_gas_price() {
 	assert_eq!(res, vec![Ok(())]);
 
 	// then
-	assert_eq!(txq.pending(TestClient::new(), 0, 0, None).len(), 1);
+	assert_eq!(txq.pending(TestClient::new(), PendingSettings::all_prioritized(0, 0)).len(), 1);
 }
 
 #[test]
@@ -736,7 +736,7 @@ fn should_accept_local_service_transaction() {
 	assert_eq!(res, vec![Ok(())]);
 
 	// then
-	assert_eq!(txq.pending(TestClient::new(), 0, 0, None).len(), 1);
+	assert_eq!(txq.pending(TestClient::new(), PendingSettings::all_prioritized(0, 0)).len(), 1);
 }
 
 #[test]
@@ -777,9 +777,15 @@ fn should_not_return_transactions_over_nonce_cap() {
 	assert_eq!(res, vec![Ok(()), Ok(()), Ok(())]);
 
 	// when
-	let all = txq.pending(TestClient::new(), 0, 0, None);
+	let all = txq.pending(TestClient::new(), PendingSettings::all_prioritized(0, 0));
 	// This should invalidate the cache!
-	let limited = txq.pending(TestClient::new(), 0, 0, Some(123.into()));
+	let limited = txq.pending(TestClient::new(), PendingSettings {
+		block_number: 0,
+		current_timestamp: 0,
+		nonce_cap: Some(123.into()),
+		max_len: usize::max_value(),
+		ordering: PendingOrdering::Priority,
+	});
 
 
 	// then
@@ -787,6 +793,62 @@ fn should_not_return_transactions_over_nonce_cap() {
 	assert_eq!(limited.len(), 1);
 }
 
+#[test]
+fn should_return_cached_pending_even_if_unordered_is_requested() {
+	// given
+	let txq = new_queue();
+	let tx1 = Tx::default().signed();
+	let (tx2_1, tx2_2)= Tx::default().signed_pair();
+	let tx2_1_hash = tx2_1.hash();
+	let res = txq.import(TestClient::new(), vec![tx1].unverified());
+	assert_eq!(res, vec![Ok(())]);
+	let res = txq.import(TestClient::new(), vec![tx2_1, tx2_2].local());
+	assert_eq!(res, vec![Ok(()), Ok(())]);
+
+	// when
+	let all = txq.pending(TestClient::new(), PendingSettings::all_prioritized(0, 0));
+	assert_eq!(all[0].hash, tx2_1_hash);
+	assert_eq!(all.len(), 3);
+
+	// This should not invalidate the cache!
+	let limited = txq.pending(TestClient::new(), PendingSettings {
+		block_number: 0,
+		current_timestamp: 0,
+		nonce_cap: None,
+		max_len: 3,
+		ordering: PendingOrdering::Unordered,
+	});
+
+	// then
+	assert_eq!(all, limited);
+}
+
+#[test]
+fn should_return_unordered_and_not_populate_the_cache() {
+	// given
+	let txq = new_queue();
+	let tx1 = Tx::default().signed();
+	let (tx2_1, tx2_2)= Tx::default().signed_pair();
+	let res = txq.import(TestClient::new(), vec![tx1].unverified());
+	assert_eq!(res, vec![Ok(())]);
+	let res = txq.import(TestClient::new(), vec![tx2_1, tx2_2].local());
+	assert_eq!(res, vec![Ok(()), Ok(())]);
+
+	// when
+	// This should not invalidate the cache!
+	let limited = txq.pending(TestClient::new(), PendingSettings {
+		block_number: 0,
+		current_timestamp: 0,
+		nonce_cap: None,
+		max_len: usize::max_value(),
+		ordering: PendingOrdering::Unordered,
+	});
+
+	// then
+	assert_eq!(limited.len(), 3);
+	assert!(!txq.is_pending_cached());
+}
+
 #[test]
 fn should_clear_cache_after_timeout_for_local() {
 	// given
@@ -800,12 +862,12 @@ fn should_clear_cache_after_timeout_for_local() {
 
 	// This should populate cache and set timestamp to 1
 	// when
-	assert_eq!(txq.pending(TestClient::new(), 0, 1, None).len(), 0);
-	assert_eq!(txq.pending(TestClient::new(), 0, 1000, None).len(), 0);
+	assert_eq!(txq.pending(TestClient::new(), PendingSettings::all_prioritized(0, 1)).len(), 0);
+	assert_eq!(txq.pending(TestClient::new(), PendingSettings::all_prioritized(0, 1000)).len(), 0);
 
 	// This should invalidate the cache and trigger transaction ready.
 	// then
-	assert_eq!(txq.pending(TestClient::new(), 0, 1002, None).len(), 2);
+	assert_eq!(txq.pending(TestClient::new(), PendingSettings::all_prioritized(0, 1002)).len(), 2);
 }
 
 #[test]
diff --git a/parity/rpc_apis.rs b/parity/rpc_apis.rs
index 7b914f286..0bcd32e22 100644
--- a/parity/rpc_apis.rs
+++ b/parity/rpc_apis.rs
@@ -306,7 +306,7 @@ impl FullDependencies {
 						let client = EthPubSubClient::new(self.client.clone(), self.remote.clone());
 						let h = client.handler();
 						self.miner.add_transactions_listener(Box::new(move |hashes| if let Some(h) = h.upgrade() {
-							h.new_transactions(hashes);
+							h.notify_new_transactions(hashes);
 						}));
 
 						if let Some(h) = client.handler().upgrade() {
@@ -527,7 +527,7 @@ impl<C: LightChainClient + 'static> LightDependencies<C> {
 					let h = client.handler();
 					self.transaction_queue.write().add_listener(Box::new(move |transactions| {
 						if let Some(h) = h.upgrade() {
-							h.new_transactions(transactions);
+							h.notify_new_transactions(transactions);
 						}
 					}));
 					handler.extend_with(EthPubSub::to_delegate(client));
diff --git a/parity/run.rs b/parity/run.rs
index d4d1ebd55..746ea09a3 100644
--- a/parity/run.rs
+++ b/parity/run.rs
@@ -550,7 +550,8 @@ fn execute_impl<Cr, Rr>(cmd: RunCmd, logger: Arc<RotatingLogger>, on_client_rq:
 		cmd.miner_options,
 		cmd.gas_pricer_conf.to_gas_pricer(fetch.clone(), cpu_pool.clone()),
 		&spec,
-		Some(account_provider.clone())
+		Some(account_provider.clone()),
+
 	));
 	miner.set_author(cmd.miner_extras.author, None).expect("Fails only if password is Some; password is None; qed");
 	miner.set_gas_range_target(cmd.miner_extras.gas_range_target);
diff --git a/rpc/src/v1/impls/eth_pubsub.rs b/rpc/src/v1/impls/eth_pubsub.rs
index c57d9acb2..d554f8ebf 100644
--- a/rpc/src/v1/impls/eth_pubsub.rs
+++ b/rpc/src/v1/impls/eth_pubsub.rs
@@ -175,7 +175,7 @@ impl<C> ChainNotificationHandler<C> {
 	}
 
 	/// Notify all subscribers about new transaction hashes.
-	pub fn new_transactions(&self, hashes: &[H256]) {
+	pub fn notify_new_transactions(&self, hashes: &[H256]) {
 		for subscriber in self.transactions_subscribers.read().values() {
 			for hash in hashes {
 				Self::notify(&self.remote, subscriber, pubsub::Result::TransactionHash((*hash).into()));
diff --git a/rpc/src/v1/impls/light/parity.rs b/rpc/src/v1/impls/light/parity.rs
index c790d0195..d4bc9c602 100644
--- a/rpc/src/v1/impls/light/parity.rs
+++ b/rpc/src/v1/impls/light/parity.rs
@@ -264,12 +264,13 @@ impl Parity for ParityClient {
 			.map(Into::into)
 	}
 
-	fn pending_transactions(&self) -> Result<Vec<Transaction>> {
+	fn pending_transactions(&self, limit: Trailing<usize>) -> Result<Vec<Transaction>> {
 		let txq = self.light_dispatch.transaction_queue.read();
 		let chain_info = self.light_dispatch.client.chain_info();
 		Ok(
 			txq.ready_transactions(chain_info.best_block_number, chain_info.best_block_timestamp)
 				.into_iter()
+				.take(limit.unwrap_or_else(usize::max_value))
 				.map(|tx| Transaction::from_pending(tx, chain_info.best_block_number, self.eip86_transition))
 				.collect::<Vec<_>>()
 		)
diff --git a/rpc/src/v1/impls/parity.rs b/rpc/src/v1/impls/parity.rs
index 37d07d8bc..209958293 100644
--- a/rpc/src/v1/impls/parity.rs
+++ b/rpc/src/v1/impls/parity.rs
@@ -313,15 +313,19 @@ impl<C, M, U, S> Parity for ParityClient<C, M, U> where
 			.map(Into::into)
 	}
 
-	fn pending_transactions(&self) -> Result<Vec<Transaction>> {
+	fn pending_transactions(&self, limit: Trailing<usize>) -> Result<Vec<Transaction>> {
 		let block_number = self.client.chain_info().best_block_number;
-		let ready_transactions = self.miner.ready_transactions(&*self.client);
+		let ready_transactions = self.miner.ready_transactions(
+			&*self.client,
+			limit.unwrap_or_else(usize::max_value),
+			miner::PendingOrdering::Priority,
+		);
 
 		Ok(ready_transactions
 		   .into_iter()
 		   .map(|t| Transaction::from_pending(t.pending().clone(), block_number, self.eip86_transition))
 		   .collect()
-	  )
+		)
 	}
 
 	fn all_transactions(&self) -> Result<Vec<Transaction>> {
diff --git a/rpc/src/v1/tests/helpers/miner_service.rs b/rpc/src/v1/tests/helpers/miner_service.rs
index c53bf8085..ab6bc2fb9 100644
--- a/rpc/src/v1/tests/helpers/miner_service.rs
+++ b/rpc/src/v1/tests/helpers/miner_service.rs
@@ -27,7 +27,7 @@ use ethcore::engines::EthEngine;
 use ethcore::error::Error;
 use ethcore::header::{BlockNumber, Header};
 use ethcore::ids::BlockId;
-use ethcore::miner::{MinerService, AuthoringParams};
+use ethcore::miner::{self, MinerService, AuthoringParams};
 use ethcore::receipt::{Receipt, RichReceipt};
 use ethereum_types::{H256, U256, Address};
 use miner::pool::local_transactions::Status as LocalTransactionStatus;
@@ -215,7 +215,7 @@ impl MinerService for TestMinerService {
 		self.local_transactions.lock().iter().map(|(hash, stats)| (*hash, stats.clone())).collect()
 	}
 
-	fn ready_transactions<C>(&self, _chain: &C) -> Vec<Arc<VerifiedTransaction>> {
+	fn ready_transactions<C>(&self, _chain: &C, _max_len: usize, _ordering: miner::PendingOrdering) -> Vec<Arc<VerifiedTransaction>> {
 		self.queued_transactions()
 	}
 
diff --git a/rpc/src/v1/tests/mocked/eth_pubsub.rs b/rpc/src/v1/tests/mocked/eth_pubsub.rs
index afb796c09..1f79badca 100644
--- a/rpc/src/v1/tests/mocked/eth_pubsub.rs
+++ b/rpc/src/v1/tests/mocked/eth_pubsub.rs
@@ -183,7 +183,7 @@ fn should_subscribe_to_pending_transactions() {
 	assert_eq!(io.handle_request_sync(request, metadata.clone()), Some(response.to_owned()));
 
 	// Send new transactions
-	handler.new_transactions(&[5.into(), 7.into()]);
+	handler.notify_new_transactions(&[5.into(), 7.into()]);
 
 	let (res, receiver) = receiver.into_future().wait().unwrap();
 	let response = r#"{"jsonrpc":"2.0","method":"eth_subscription","params":{"result":"0x0000000000000000000000000000000000000000000000000000000000000005","subscription":"0x416d77337e24399d"}}"#;
diff --git a/rpc/src/v1/traits/parity.rs b/rpc/src/v1/traits/parity.rs
index 83d8b1981..c06997b2b 100644
--- a/rpc/src/v1/traits/parity.rs
+++ b/rpc/src/v1/traits/parity.rs
@@ -141,7 +141,7 @@ build_rpc_trait! {
 
 		/// Returns all pending transactions from transaction queue.
 		#[rpc(name = "parity_pendingTransactions")]
-		fn pending_transactions(&self) -> Result<Vec<Transaction>>;
+		fn pending_transactions(&self, Trailing<usize>) -> Result<Vec<Transaction>>;
 
 		/// Returns all transactions from transaction queue.
 		///
diff --git a/transaction-pool/src/pool.rs b/transaction-pool/src/pool.rs
index a4e30ba0b..144d1b974 100644
--- a/transaction-pool/src/pool.rs
+++ b/transaction-pool/src/pool.rs
@@ -15,7 +15,8 @@
 // along with Parity.  If not, see <http://www.gnu.org/licenses/>.
 
 use std::sync::Arc;
-use std::collections::{HashMap, BTreeSet};
+use std::slice;
+use std::collections::{hash_map, HashMap, BTreeSet};
 
 use error;
 use listener::{Listener, NoopListener};
@@ -443,7 +444,16 @@ impl<T, S, L> Pool<T, S, L> where
 		PendingIterator {
 			ready,
 			best_transactions,
-			pool: self
+			pool: self,
+		}
+	}
+
+	/// Returns unprioritized list of ready transactions.
+	pub fn unordered_pending<R: Ready<T>>(&self, ready: R) -> UnorderedIterator<T, R, S> {
+		UnorderedIterator {
+			ready,
+			senders: self.transactions.iter(),
+			transactions: None,
 		}
 	}
 
@@ -514,6 +524,50 @@ impl<T, S, L> Pool<T, S, L> where
 	}
 }
 
+/// An iterator over all pending (ready) transactions in unoredered fashion.
+///
+/// NOTE: Current implementation will iterate over all transactions from particular sender
+/// ordered by nonce, but that might change in the future.
+///
+/// NOTE: the transactions are not removed from the queue.
+/// You might remove them later by calling `cull`.
+pub struct UnorderedIterator<'a, T, R, S> where
+	T: VerifiedTransaction + 'a,
+	S: Scoring<T> + 'a,
+{
+	ready: R,
+	senders: hash_map::Iter<'a, T::Sender, Transactions<T, S>>,
+	transactions: Option<slice::Iter<'a, Transaction<T>>>,
+}
+
+impl<'a, T, R, S> Iterator for UnorderedIterator<'a, T, R, S> where
+	T: VerifiedTransaction,
+	R: Ready<T>,
+	S: Scoring<T>,
+{
+	type Item = Arc<T>;
+
+	fn next(&mut self) -> Option<Self::Item> {
+		loop {
+			if let Some(transactions) = self.transactions.as_mut() {
+				if let Some(tx) = transactions.next() {
+					match self.ready.is_ready(&tx) {
+						Readiness::Ready => {
+							return Some(tx.transaction.clone());
+						},
+						state => trace!("[{:?}] Ignoring {:?} transaction.", tx.hash(), state),
+					}
+				}
+			}
+
+			// otherwise fallback and try next sender
+			let next_sender = self.senders.next()?;
+			self.transactions = Some(next_sender.1.iter());
+		}
+	}
+}
+
+
 /// An iterator over all pending (ready) transactions.
 /// NOTE: the transactions are not removed from the queue.
 /// You might remove them later by calling `cull`.
diff --git a/transaction-pool/src/tests/mod.rs b/transaction-pool/src/tests/mod.rs
index 1f766b89f..b4932e590 100644
--- a/transaction-pool/src/tests/mod.rs
+++ b/transaction-pool/src/tests/mod.rs
@@ -259,6 +259,66 @@ fn should_construct_pending() {
 	assert_eq!(pending.next(), None);
 }
 
+#[test]
+fn should_return_unordered_iterator() {
+	// given
+	let b = TransactionBuilder::default();
+	let mut txq = TestPool::default();
+
+	let tx0 = txq.import(b.tx().nonce(0).gas_price(5).new()).unwrap();
+	let tx1 = txq.import(b.tx().nonce(1).gas_price(5).new()).unwrap();
+	let tx2 = txq.import(b.tx().nonce(2).new()).unwrap();
+	let tx3 = txq.import(b.tx().nonce(3).gas_price(4).new()).unwrap();
+	//gap
+	txq.import(b.tx().nonce(5).new()).unwrap();
+
+	let tx5 = txq.import(b.tx().sender(1).nonce(0).new()).unwrap();
+	let tx6 = txq.import(b.tx().sender(1).nonce(1).new()).unwrap();
+	let tx7 = txq.import(b.tx().sender(1).nonce(2).new()).unwrap();
+	let tx8 = txq.import(b.tx().sender(1).nonce(3).gas_price(4).new()).unwrap();
+	// gap
+	txq.import(b.tx().sender(1).nonce(5).new()).unwrap();
+
+	let tx9 = txq.import(b.tx().sender(2).nonce(0).new()).unwrap();
+	assert_eq!(txq.light_status().transaction_count, 11);
+	assert_eq!(txq.status(NonceReady::default()), Status {
+		stalled: 0,
+		pending: 9,
+		future: 2,
+	});
+	assert_eq!(txq.status(NonceReady::new(1)), Status {
+		stalled: 3,
+		pending: 6,
+		future: 2,
+	});
+
+	// when
+	let all: Vec<_> = txq.unordered_pending(NonceReady::default()).collect();
+
+	let chain1 = vec![tx0, tx1, tx2, tx3];
+	let chain2 = vec![tx5, tx6, tx7, tx8];
+	let chain3 = vec![tx9];
+
+	assert_eq!(all.len(), chain1.len() + chain2.len() + chain3.len());
+
+	let mut options = vec![
+		vec![chain1.clone(), chain2.clone(), chain3.clone()],
+		vec![chain2.clone(), chain1.clone(), chain3.clone()],
+		vec![chain2.clone(), chain3.clone(), chain1.clone()],
+		vec![chain3.clone(), chain2.clone(), chain1.clone()],
+		vec![chain3.clone(), chain1.clone(), chain2.clone()],
+		vec![chain1.clone(), chain3.clone(), chain2.clone()],
+	].into_iter().map(|mut v| {
+		let mut first = v.pop().unwrap();
+		for mut x in v {
+			first.append(&mut x);
+		}
+		first
+	});
+
+	assert!(options.any(|opt| all == opt));
+}
+
 #[test]
 fn should_update_scoring_correctly() {
 	// given