diff --git a/crates/rpc/rpc/src/debug.rs b/crates/rpc/rpc/src/debug.rs
index 9f0f59350b..bac7a0b781 100644
--- a/crates/rpc/rpc/src/debug.rs
+++ b/crates/rpc/rpc/src/debug.rs
@@ -27,7 +27,7 @@ use reth_rpc_types::{
     BlockError, CallRequest, RichBlock,
 };
 use revm::primitives::Env;
-use revm_primitives::{BlockEnv, CfgEnv};
+use revm_primitives::{db::DatabaseCommit, BlockEnv, CfgEnv};
 
 /// `debug` API implementation.
 ///
@@ -72,13 +72,19 @@ where
             let mut results = Vec::with_capacity(transactions.len());
             let mut db = SubState::new(State::new(state));
 
-            for tx in transactions {
+            let mut transactions = transactions.into_iter().peekable();
+            while let Some(tx) = transactions.next() {
                 let tx = tx.into_ecrecovered().ok_or(BlockError::InvalidSignature)?;
                 let tx = tx_env_with_recovered(&tx);
                 let env = Env { cfg: cfg.clone(), block: block_env.clone(), tx };
-                // TODO(mattsse): get rid of clone by extracting necessary opts fields into a struct
-                let result = trace_transaction(opts.clone(), env, &mut db)?;
+                let (result, state_changes) = trace_transaction(opts.clone(), env, &mut db)?;
                 results.push(TraceResult::Success { result });
+
+                if transactions.peek().is_some() {
+                    // need to apply the state changes of this transaction before executing the next
+                    // transaction
+                    db.commit(state_changes)
+                }
             }
 
             Ok(results)
@@ -157,7 +163,7 @@ where
             replay_transactions_until(&mut db, cfg.clone(), block_env.clone(), block_txs, tx.hash)?;
 
             let env = Env { cfg, block: block_env, tx: tx_env_with_recovered(&tx) };
-            trace_transaction(opts, env, &mut db)
+            trace_transaction(opts, env, &mut db).map(|(trace, _)| trace)
         })
     }
 
@@ -329,14 +335,16 @@ impl<Client, Eth> std::fmt::Debug for DebugApi<Client, Eth> {
     }
 }
 
-/// Executes the configured transaction in the environment on the given database.
+/// Executes the configured transaction with the environment on the given database.
+///
+/// Returns the trace frame and the state that got updated after executing the transaction.
 ///
 /// Note: this does not apply any state overrides if they're configured in the `opts`.
 fn trace_transaction(
     opts: GethDebugTracingOptions,
     env: Env,
     db: &mut SubState<StateProviderBox<'_>>,
-) -> EthResult<GethTraceFrame> {
+) -> EthResult<(GethTraceFrame, revm_primitives::State)> {
     let GethDebugTracingOptions { config, tracer, tracer_config, .. } = opts;
     if let Some(tracer) = tracer {
         // valid matching config
@@ -350,8 +358,8 @@ fn trace_transaction(
             GethDebugTracerType::BuiltInTracer(tracer) => match tracer {
                 GethDebugBuiltInTracerType::FourByteTracer => {
                     let mut inspector = FourByteInspector::default();
-                    let _ = inspect(db, env, &mut inspector)?;
-                    return Ok(FourByteFrame::from(inspector).into())
+                    let (res, _) = inspect(db, env, &mut inspector)?;
+                    return Ok((FourByteFrame::from(inspector).into(), res.state))
                 }
                 GethDebugBuiltInTracerType::CallTracer => {
                     todo!()
@@ -359,7 +367,9 @@ fn trace_transaction(
                 GethDebugBuiltInTracerType::PreStateTracer => {
                     todo!()
                 }
-                GethDebugBuiltInTracerType::NoopTracer => Ok(NoopFrame::default().into()),
+                GethDebugBuiltInTracerType::NoopTracer => {
+                    Ok((NoopFrame::default().into(), Default::default()))
+                }
             },
             GethDebugTracerType::JsTracer(_) => {
                 Err(EthApiError::Unsupported("javascript tracers are unsupported."))
@@ -377,5 +387,5 @@ fn trace_transaction(
 
     let frame = inspector.into_geth_builder().geth_traces(U256::from(gas_used), config);
 
-    Ok(frame.into())
+    Ok((frame.into(), res.state))
 }
diff --git a/crates/rpc/rpc/src/trace.rs b/crates/rpc/rpc/src/trace.rs
index 9c17d30c35..d85eb7fe55 100644
--- a/crates/rpc/rpc/src/trace.rs
+++ b/crates/rpc/rpc/src/trace.rs
@@ -24,7 +24,7 @@ use reth_rpc_types::{
     BlockError, CallRequest, Index, TransactionInfo,
 };
 use revm::primitives::Env;
-use revm_primitives::ResultAndState;
+use revm_primitives::{db::DatabaseCommit, ExecutionResult};
 use std::collections::HashSet;
 use tokio::sync::{AcquireError, OwnedSemaphorePermit};
 
@@ -211,7 +211,7 @@ where
         f: F,
     ) -> EthResult<Option<Vec<R>>>
     where
-        F: Fn(TransactionInfo, TracingInspector, ResultAndState) -> EthResult<R> + Send,
+        F: Fn(TransactionInfo, TracingInspector, ExecutionResult) -> EthResult<R> + Send,
     {
         let ((cfg, block_env, _), block) = futures::try_join!(
             self.eth_api.evm_env_at(block_id),
@@ -236,7 +236,9 @@ where
                 let mut results = Vec::with_capacity(transactions.len());
                 let mut db = SubState::new(State::new(state));
 
-                for (idx, tx) in transactions.into_iter().enumerate() {
+                let mut transactions = transactions.into_iter().enumerate().peekable();
+
+                while let Some((idx, tx)) = transactions.next() {
                     let tx = tx.into_ecrecovered().ok_or(BlockError::InvalidSignature)?;
                     let tx_info = TransactionInfo {
                         hash: Some(tx.hash()),
@@ -251,7 +253,15 @@ where
 
                     let mut inspector = TracingInspector::new(config);
                     let (res, _) = inspect(&mut db, env, &mut inspector)?;
-                    results.push(f(tx_info, inspector, res)?);
+                    results.push(f(tx_info, inspector, res.result)?);
+
+                    // need to apply the state changes of this transaction before executing the next
+                    // transaction
+                    if transactions.peek().is_some() {
+                        // need to apply the state changes of this transaction before executing the
+                        // next transaction
+                        db.commit(res.state)
+                    }
                 }
 
                 Ok(results)
@@ -286,8 +296,7 @@ where
         trace_types: HashSet<TraceType>,
     ) -> EthResult<Option<Vec<TraceResultsWithTransactionHash>>> {
         self.trace_block_with(block_id, tracing_config(&trace_types), |tx_info, inspector, res| {
-            let full_trace =
-                inspector.into_parity_builder().into_trace_results(res.result, &trace_types);
+            let full_trace = inspector.into_parity_builder().into_trace_results(res, &trace_types);
             let trace = TraceResultsWithTransactionHash {
                 transaction_hash: tx_info.hash.expect("tx hash is set"),
                 full_trace,