diff --git a/app/scripts/controllers/transactions.js b/app/scripts/controllers/transactions.js
index ef5578d5a..aad3f9952 100644
--- a/app/scripts/controllers/transactions.js
+++ b/app/scripts/controllers/transactions.js
@@ -6,7 +6,6 @@ const EthQuery = require('ethjs-query')
 const TransactionStateManger = require('../lib/tx-state-manager')
 const TxGasUtil = require('../lib/tx-gas-utils')
 const PendingTransactionTracker = require('../lib/pending-tx-tracker')
-const createId = require('../lib/random-id')
 const NonceTracker = require('../lib/nonce-tracker')
 
 /*
@@ -92,8 +91,22 @@ module.exports = class TransactionController extends EventEmitter {
     this.pendingTxTracker.on('tx:warning', (txMeta) => {
       this.txStateManager.updateTx(txMeta, 'transactions/pending-tx-tracker#event: tx:warning')
     })
+    this.pendingTxTracker.on('tx:confirmed', (txId) => {
+      this.txStateManager.setTxStatusConfirmed(txId)
+      // get the confirmed transactions nonce and from address
+      const txMeta = this.txStateManager.getTx(txId)
+      const { nonce, from } = txMeta.txParams
+      const sameNonceTxs = this.txStateManager.getFilteredTxList({nonce, from})
+      if (!sameNonceTxs.length) return
+      // mark all same nonce transactions as dropped and give i a replacedBy hash
+      sameNonceTxs.forEach((otherTxMeta) => {
+        if (otherTxMeta === txId) return
+        otherTxMeta.replacedBy = txMeta.hash
+        this.txStateManager.updateTx(txMeta, 'transactions/pending-tx-tracker#event: tx:confirmed reference to confirmed txHash with same nonce')
+        this.txStateManager.setTxStatusDropped(otherTxMeta.id)
+      })
+    })
     this.pendingTxTracker.on('tx:failed', this.txStateManager.setTxStatusFailed.bind(this.txStateManager))
-    this.pendingTxTracker.on('tx:confirmed', this.txStateManager.setTxStatusConfirmed.bind(this.txStateManager))
     this.pendingTxTracker.on('tx:block-update', (txMeta, latestBlockNumber) => {
       if (!txMeta.firstRetryBlockNumber) {
         txMeta.firstRetryBlockNumber = latestBlockNumber
@@ -186,14 +199,7 @@ module.exports = class TransactionController extends EventEmitter {
     // validate
     await this.txGasUtil.validateTxParams(txParams)
     // construct txMeta
-    const txMeta = {
-      id: createId(),
-      time: (new Date()).getTime(),
-      status: 'unapproved',
-      metamaskNetworkId: this.getNetwork(),
-      txParams: txParams,
-      loadingDefaults: true,
-    }
+    const txMeta = this.txStateManager.generateTxMeta({txParams})
     this.addTx(txMeta)
     this.emit('newUnapprovedTx', txMeta)
     // add default tx params
@@ -215,7 +221,6 @@ module.exports = class TransactionController extends EventEmitter {
     const txParams = txMeta.txParams
     // ensure value
     txMeta.gasPriceSpecified = Boolean(txParams.gasPrice)
-    txMeta.nonceSpecified = Boolean(txParams.nonce)
     let gasPrice = txParams.gasPrice
     if (!gasPrice) {
       gasPrice = this.getGasPrice ? this.getGasPrice() : await this.query.gasPrice()
@@ -226,11 +231,17 @@ module.exports = class TransactionController extends EventEmitter {
     return await this.txGasUtil.analyzeGasUsage(txMeta)
   }
 
-  async retryTransaction (txId) {
-    this.txStateManager.setTxStatusUnapproved(txId)
-    const txMeta = this.txStateManager.getTx(txId)
-    txMeta.lastGasPrice = txMeta.txParams.gasPrice
-    this.txStateManager.updateTx(txMeta, 'retryTransaction: manual retry')
+  async retryTransaction (originalTxId) {
+    const originalTxMeta = this.txStateManager.getTx(originalTxId)
+    const lastGasPrice = originalTxMeta.txParams.gasPrice
+    const txMeta = this.txStateManager.generateTxMeta({
+      txParams: originalTxMeta.txParams,
+      lastGasPrice,
+      loadingDefaults: false,
+      nonceSpecified: true,
+    })
+    this.addTx(txMeta)
+    this.emit('newUnapprovedTx', txMeta)
   }
 
   async updateTransaction (txMeta) {
diff --git a/app/scripts/lib/tx-state-manager.js b/app/scripts/lib/tx-state-manager.js
index 051efd247..25442ce47 100644
--- a/app/scripts/lib/tx-state-manager.js
+++ b/app/scripts/lib/tx-state-manager.js
@@ -1,9 +1,21 @@
 const extend = require('xtend')
 const EventEmitter = require('events')
 const ObservableStore = require('obs-store')
+const createId = require('./random-id')
 const ethUtil = require('ethereumjs-util')
 const txStateHistoryHelper = require('./tx-state-history-helper')
 
+// STATUS METHODS
+  // statuses:
+  //    - `'unapproved'` the user has not responded
+  //    - `'rejected'` the user has responded no!
+  //    - `'approved'` the user has approved the tx
+  //    - `'signed'` the tx is signed
+  //    - `'submitted'` the tx is sent to a server
+  //    - `'confirmed'` the tx has been included in a block.
+  //    - `'failed'` the tx failed for some reason, included on tx data.
+  //    - `'dropped'` the tx nonce was already used
+
 module.exports = class TransactionStateManger extends EventEmitter {
   constructor ({ initState, txHistoryLimit, getNetwork }) {
     super()
@@ -16,6 +28,16 @@ module.exports = class TransactionStateManger extends EventEmitter {
     this.getNetwork = getNetwork
   }
 
+  generateTxMeta (opts) {
+    return extend({
+      id: createId(),
+      time: (new Date()).getTime(),
+      status: 'unapproved',
+      metamaskNetworkId: this.getNetwork(),
+      loadingDefaults: true,
+    }, opts)
+  }
+
   // Returns the number of txs for the current network.
   getTxCount () {
     return this.getTxList().length
@@ -164,16 +186,6 @@ module.exports = class TransactionStateManger extends EventEmitter {
     })
   }
 
-  // STATUS METHODS
-  // statuses:
-  //    - `'unapproved'` the user has not responded
-  //    - `'rejected'` the user has responded no!
-  //    - `'approved'` the user has approved the tx
-  //    - `'signed'` the tx is signed
-  //    - `'submitted'` the tx is sent to a server
-  //    - `'confirmed'` the tx has been included in a block.
-  //    - `'failed'` the tx failed for some reason, included on tx data.
-
   // get::set status
 
   // should return the status of the tx.
@@ -211,6 +223,12 @@ module.exports = class TransactionStateManger extends EventEmitter {
     this._setTxStatus(txId, 'confirmed')
   }
 
+  // should update the status dropped
+  setTxStatusDropped (txId) {
+    this._setTxStatus(txId, 'dropped')
+  }
+
+
   setTxStatusFailed (txId, err) {
     const txMeta = this.getTx(txId)
     txMeta.err = {