diff --git a/tools/preconf-rpc/sender/sender.go b/tools/preconf-rpc/sender/sender.go
index 2331f03df..992dca739 100644
--- a/tools/preconf-rpc/sender/sender.go
+++ b/tools/preconf-rpc/sender/sender.go
@@ -37,11 +37,12 @@ const (
 )
 
 const (
-	blockTime                    = 12              // seconds, typical Ethereum block time
-	bidTimeout                   = 3 * time.Second // timeout for bid operations
-	defaultConfidence            = 90              // default confidence level for the next block
-	confidenceSecondAttempt      = 95              // confidence level for the second attempt
-	confidenceSubsequentAttempts = 99              // confidence level for subsequent attempts
+	blockTime                    = 12               // seconds, typical Ethereum block time
+	bidTimeout                   = 3 * time.Second  // timeout for bid operations
+	defaultConfidence            = 90               // default confidence level for the next block
+	confidenceSecondAttempt      = 95               // confidence level for the second attempt
+	confidenceSubsequentAttempts = 99               // confidence level for subsequent attempts
+	transactionTimeout           = 10 * time.Minute // timeout for transaction processing
 )
 
 var (
@@ -52,6 +53,7 @@ var (
 	ErrNegativeTransactionValue = errors.New("negative transaction value")
 	ErrZeroGasLimit             = errors.New("zero gas limit")
 	ErrTransactionCancelled     = errors.New("transaction cancelled by user")
+	ErrTimeoutExceeded          = errors.New("timeout exceeded while waiting for transaction to be processed")
 )
 
 type Transaction struct {
@@ -125,6 +127,7 @@ type TxSender struct {
 	inflightTxns      map[common.Hash]chan struct{}
 	inflightAccount   map[common.Address]struct{}
 	inflightMu        sync.RWMutex
+	processMu         sync.RWMutex
 	txnAttemptHistory *lru.Cache[common.Hash, *txnAttempt]
 }
 
@@ -218,8 +221,30 @@ func (t *TxSender) CancelTransaction(ctx context.Context, txnHash common.Hash) (
 	cancel, found := t.inflightTxns[txnHash]
 	t.inflightMu.RUnlock()
 	if !found {
-		t.logger.Warn("Transaction not found in flight", "hash", txnHash.Hex())
-		return false, nil
+		return func() (bool, error) {
+			// we need to hold the processMu lock till we check as a parallel goroutine
+			// might try to process the transaction and update its status
+			t.processMu.RLock()
+			defer t.processMu.RUnlock()
+
+			txn, err := t.store.GetTransactionByHash(ctx, txnHash)
+			if err == nil {
+				// if a transaction is not yet enqueued due to nonce order, we mark it
+				// cancelled directly in the store
+				if txn.Status == TxStatusPending {
+					txn.Status = TxStatusFailed
+					txn.Details = ErrTransactionCancelled.Error()
+					if err := t.store.StoreTransaction(ctx, txn, nil); err != nil {
+						t.logger.Error("Failed to store cancelled transaction", "hash", txnHash.Hex(), "error", err)
+						return false, fmt.Errorf("failed to store cancelled transaction: %w", err)
+					}
+					t.logger.Info("Transaction cancelled before processing", "hash", txnHash.Hex())
+					return true, nil
+				}
+			}
+			t.logger.Warn("Transaction not found", "hash", txnHash.Hex())
+			return false, nil
+		}()
 	}
 
 	t.logger.Info("Cancelling transaction", "hash", txnHash.Hex())
@@ -275,7 +300,9 @@ func (t *TxSender) Start(ctx context.Context) chan struct{} {
 				t.logger.Info("Context cancelled, stopping TxSender")
 				return ctx.Err()
 			case <-t.trigger:
+				t.processMu.Lock()
 				t.processQueuedTransactions(t.egCtx)
+				t.processMu.Unlock()
 			}
 		}
 	})
@@ -339,6 +366,8 @@ func (t *TxSender) processQueuedTransactions(ctx context.Context) {
 		case t.workerPool <- struct{}{}:
 			t.eg.Go(func() error {
 				defer func() { <-t.workerPool }()
+				defer t.triggerSender() // Trigger to reprocess after this transaction
+
 				canExecute, cancel := t.markInflight(txn)
 				if !canExecute {
 					// Transaction is already being processed or sender has an inflight transaction
@@ -351,6 +380,7 @@ func (t *TxSender) processQueuedTransactions(ctx context.Context) {
 					t.logger.Error("Failed to process transaction", "sender", txn.Sender.Hex(), "error", err)
 					txn.Status = TxStatusFailed
 					txn.Details = err.Error()
+					t.clearBlockAttemptHistory(txn.Hash())
 					return t.store.StoreTransaction(ctx, txn, nil)
 				}
 				return nil
@@ -541,6 +571,10 @@ func (t *TxSender) sendBid(
 	cost, err := t.calculatePriceForNextBlock(txn, bidBlockNo, prices, optedInSlot)
 	if err != nil {
 		t.logger.Error("Failed to calculate price for next block", "error", err)
+		if errors.Is(err, ErrTimeoutExceeded) {
+			t.logger.Warn("Timeout exceeded while trying to process transaction", "txnHash", txn.Hash().Hex())
+			return bidResult{}, ErrTimeoutExceeded
+		}
 		return bidResult{}, &errRetry{
 			err:        fmt.Errorf("failed to calculate price: %w", err),
 			retryAfter: time.Second,
@@ -664,6 +698,10 @@ func (t *TxSender) calculatePriceForNextBlock(
 		}
 	}
 
+	if time.Since(attempts.startTime) > transactionTimeout {
+		return nil, ErrTimeoutExceeded
+	}
+
 	// default confidence level for the next block
 	confidence := defaultConfidence
 	isRetry := false