diff --git a/src/validation.cpp b/src/validation.cpp
--- a/src/validation.cpp
+++ b/src/validation.cpp
@@ -3065,21 +3065,35 @@
         // nStatus" criteria for inclusion in setBlockIndexCandidates).
 
         invalid_walk_tip->nStatus =
-            invalidate ? invalid_walk_tip->nStatus.withFailedParent()
-                       : invalid_walk_tip->nStatus.withParkedParent();
+            invalidate ? invalid_walk_tip->nStatus.withFailed()
+                       : invalid_walk_tip->nStatus.withParked();
 
         setDirtyBlockIndex.insert(invalid_walk_tip);
         setBlockIndexCandidates.insert(invalid_walk_tip->pprev);
 
-        // If we abort invalidation after this iteration, make sure
-        // the last disconnected block gets marked failed (rather than
-        // just child of failed)
+        if (invalid_walk_tip->pprev == to_mark_failed_or_parked &&
+            (invalidate ? to_mark_failed_or_parked->nStatus.hasFailed()
+                        : to_mark_failed_or_parked->nStatus.isParked())) {
+            // We only want to mark the last disconnected block as
+            // BLOCK_FAILED_VALID; its children need to be BLOCK_FAILED_CHILD
+            // instead.
+            to_mark_failed_or_parked->nStatus =
+                (invalidate
+                     ? to_mark_failed_or_parked->nStatus.withFailed(false)
+                           .withFailedParent()
+                     : to_mark_failed_or_parked->nStatus.withParked(false)
+                           .withParkedParent());
+
+            setDirtyBlockIndex.insert(to_mark_failed_or_parked);
+        }
+
+        // Track the last disconnected block, so we can correct its
+        // BLOCK_FAILED_CHILD status in future iterations, or, if it's the last
+        // one, call InvalidChainFound on it.
         to_mark_failed_or_parked = invalid_walk_tip;
     }
 
     {
-        // Mark pindex (or the last disconnected block) as invalid or parked,
-        // regardless of whether it was in the main chain or not.
         LOCK(cs_main);
         if (chainActive.Contains(to_mark_failed_or_parked)) {
             // If the to-be-marked invalid block is in the active chain,
@@ -3087,6 +3101,8 @@
             return false;
         }
 
+        // Mark pindex (or the last disconnected block) as invalid (or parked),
+        // even when it never was in the main chain.
         to_mark_failed_or_parked->nStatus =
             invalidate ? to_mark_failed_or_parked->nStatus.withFailed()
                        : to_mark_failed_or_parked->nStatus.withParked();
@@ -3122,26 +3138,31 @@
 
 bool FinalizeBlockAndInvalidate(const Config &config, CValidationState &state,
                                 CBlockIndex *pindex) {
-    AssertLockHeld(cs_main);
-    if (!FinalizeBlockInternal(config, state, pindex)) {
-        // state is set by FinalizeBlockInternal.
-        return false;
-    }
+    CBlockIndex *pindexToInvalidate;
 
-    // We have a valid candidate, make sure it is not parked.
-    if (pindex->nStatus.isOnParkedChain()) {
-        UnparkBlock(pindex);
-    }
+    {
+        LOCK(cs_main);
+        if (!FinalizeBlockInternal(config, state, pindex)) {
+            // state is set by FinalizeBlockInternal.
+            return false;
+        }
+
+        // We have a valid candidate, make sure it is not parked.
+        if (pindex->nStatus.isOnParkedChain()) {
+            UnparkBlock(pindex);
+        }
+
+        // If the finalized block is not on the active chain, we need to rewind.
+        if (AreOnTheSameFork(pindex, chainActive.Tip())) {
+            return true;
+        }
 
-    // If the finalized block is not on the active chain, we need to rewind.
-    if (!AreOnTheSameFork(pindex, chainActive.Tip())) {
         const CBlockIndex *pindexFork = chainActive.FindFork(pindex);
-        CBlockIndex *pindexToInvalidate =
+        pindexToInvalidate =
             chainActive.Tip()->GetAncestor(pindexFork->nHeight + 1);
-        return InvalidateBlock(config, state, pindexToInvalidate);
     }
 
-    return true;
+    return InvalidateBlock(config, state, pindexToInvalidate);
 }
 
 bool InvalidateBlock(const Config &config, CValidationState &state,