diff --git a/packages/client/lib/rpc/modules/engine.ts b/packages/client/lib/rpc/modules/engine.ts
index f09a3efe72..967b9b2a6b 100644
--- a/packages/client/lib/rpc/modules/engine.ts
+++ b/packages/client/lib/rpc/modules/engine.ts
@@ -534,27 +534,29 @@ export class Engine {
 
     const vmHeadHash = this.chain.headers.latest!.hash()
     if (!vmHeadHash.equals(headBlock.hash())) {
-      let parentBlocks
-      try {
-        parentBlocks = await recursivelyFindParents(
-          vmHeadHash,
-          headBlock.header.parentHash,
-          this.validBlocks,
-          this.chain
-        )
-      } catch (error) {
-        const latestValidHash = await validHash(
-          headBlock.header.parentHash,
-          this.validBlocks,
-          this.chain
-        )
-        const payloadStatus = { status: Status.SYNCING, latestValidHash, validationError: null }
-        const response = { payloadStatus, payloadId: null }
-        this.connectionManager.lastForkchoiceUpdate({
-          state: params[0],
-          response,
-        })
-        return response
+      let parentBlocks: Block[] = []
+      if (this.chain.headers.latest?.number.lt(headBlock.header.number)) {
+        try {
+          parentBlocks = await recursivelyFindParents(
+            vmHeadHash,
+            headBlock.header.parentHash,
+            this.validBlocks,
+            this.chain
+          )
+        } catch (error) {
+          const latestValidHash = await validHash(
+            headBlock.header.parentHash,
+            this.validBlocks,
+            this.chain
+          )
+          const payloadStatus = { status: Status.SYNCING, latestValidHash, validationError: null }
+          const response = { payloadStatus, payloadId: null }
+          this.connectionManager.lastForkchoiceUpdate({
+            state: params[0],
+            response,
+          })
+          return response
+        }
       }
 
       const blocks = [...parentBlocks, headBlock]
@@ -624,11 +626,7 @@ export class Engine {
       return response
     }
 
-    const latestValidHash = await validHash(
-      headBlock.header.parentHash,
-      this.validBlocks,
-      this.chain
-    )
+    const latestValidHash = await validHash(headBlock.header.hash(), this.validBlocks, this.chain)
     const payloadStatus = { status: Status.VALID, latestValidHash, validationError: null }
     const response = { payloadStatus, payloadId: null }
     this.connectionManager.lastForkchoiceUpdate({
diff --git a/packages/client/test/rpc/engine/forkchoiceUpdatedV1.spec.ts b/packages/client/test/rpc/engine/forkchoiceUpdatedV1.spec.ts
index 5da2ad39a5..1f2459d242 100644
--- a/packages/client/test/rpc/engine/forkchoiceUpdatedV1.spec.ts
+++ b/packages/client/test/rpc/engine/forkchoiceUpdatedV1.spec.ts
@@ -141,7 +141,7 @@ tape(`${method}: call with valid fork choice state without payload attributes`,
   const req = params(method, [validForkChoiceState])
   const expectRes = (res: any) => {
     t.equal(res.body.result.payloadStatus.status, 'VALID')
-    t.equal(res.body.result.payloadStatus.latestValidHash, null)
+    t.equal(res.body.result.payloadStatus.latestValidHash, validForkChoiceState.headBlockHash)
     t.equal(res.body.result.payloadStatus.validationError, null)
     t.equal(res.body.result.payloadId, null)
   }
@@ -281,3 +281,45 @@ tape(`${method}: invalid safe block hash`, async (t) => {
 
   await baseRequest(t, server, req, 200, expectRes)
 })
+
+tape(`${method}: latest block after reorg`, async (t) => {
+  const { server } = await setupChain(genesisJSON, 'post-merge', { engine: true })
+  let req = params(method, [validForkChoiceState])
+  let expectRes = (res: any) => {
+    t.equal(res.body.result.payloadStatus.status, 'VALID')
+  }
+  await baseRequest(t, server, req, 200, expectRes, false)
+
+  for (let i = 0; i < 3; i++) {
+    const req = params('engine_newPayloadV1', [blocks[i]])
+    const expectRes = (res: any) => {
+      t.equal(res.body.result.status, 'VALID')
+    }
+    await baseRequest(t, server, req, 200, expectRes, false)
+  }
+
+  req = params(method, [
+    {
+      ...validForkChoiceState,
+      headBlockHash: blocks[2].blockHash,
+      safeBlockHash: blocks[0].blockHash,
+    },
+  ])
+  expectRes = (res: any) => {
+    t.equal(res.body.result.payloadStatus.status, 'VALID')
+  }
+  await baseRequest(t, server, req, 200, expectRes, false)
+
+  req = params(method, [
+    {
+      headBlockHash: blocks[1].blockHash,
+      safeBlockHash: blocks[2].blockHash,
+      finalizedBlockHash: blocks[2].blockHash,
+    },
+  ])
+
+  expectRes = (res: any) => {
+    t.equal(res.body.result.payloadStatus.latestValidHash, blocks[1].blockHash)
+  }
+  await baseRequest(t, server, req, 200, expectRes)
+})