diff --git a/beacon-chain/rpc/prysm/v1alpha1/validator/proposer.go b/beacon-chain/rpc/prysm/v1alpha1/validator/proposer.go
index 0d97b31afa..091a745737 100644
--- a/beacon-chain/rpc/prysm/v1alpha1/validator/proposer.go
+++ b/beacon-chain/rpc/prysm/v1alpha1/validator/proposer.go
@@ -312,14 +312,14 @@ func (vs *Server) ProposeBeaconBlock(ctx context.Context, req *ethpb.GenericSign
 	rob, err := blocks.NewROBlockWithRoot(block, root)
 	if block.IsBlinded() {
 		block, blobSidecars, err = vs.handleBlindedBlock(ctx, block)
+		if errors.Is(err, builderapi.ErrBadGateway) {
+			log.WithError(err).Info("Optimistically proposed block - builder relay temporarily unavailable, block may arrive over P2P")
+			return &ethpb.ProposeResponse{BlockRoot: root[:]}, nil
+		}
 	} else if block.Version() >= version.Deneb {
 		blobSidecars, dataColumnSidecars, err = vs.handleUnblindedBlock(rob, req)
 	}
 	if err != nil {
-		if errors.Is(err, builderapi.ErrBadGateway) && block.IsBlinded() {
-			log.WithError(err).Info("Optimistically proposed block - builder relay temporarily unavailable, block may arrive over P2P")
-			return &ethpb.ProposeResponse{BlockRoot: root[:]}, nil
-		}
 		return nil, status.Errorf(codes.Internal, "%s: %v", "handle block failed", err)
 	}
 
diff --git a/changelog/ttsao_fix-optimistic-blinded-blocks.md b/changelog/ttsao_fix-optimistic-blinded-blocks.md
new file mode 100644
index 0000000000..e125004b9d
--- /dev/null
+++ b/changelog/ttsao_fix-optimistic-blinded-blocks.md
@@ -0,0 +1,3 @@
+### Ignored
+
+- Return optimistic response only when handling blinded blocks in proposer