diff --git a/src/script/ismine.h b/src/script/ismine.h
--- a/src/script/ismine.h
+++ b/src/script/ismine.h
@@ -26,15 +26,6 @@
 /** used for bitflags of isminetype */
 typedef uint8_t isminefilter;
 
-/**
- * isInvalid becomes true when the script is found invalid by consensus or
- * policy. This will terminate the recursion and return ISMINE_NO immediately,
- * as an invalid script should never be considered as "mine". Currently the only
- * use of isInvalid is for P2SH-inside-P2SH scripts (as a technicality, to
- * prevent infinite recursion).
- */
-isminetype IsMine(const CKeyStore &keystore, const CScript &scriptPubKey,
-                  bool &isInvalid);
 isminetype IsMine(const CKeyStore &keystore, const CScript &scriptPubKey);
 isminetype IsMine(const CKeyStore &keystore, const CTxDestination &dest);
 
diff --git a/src/script/ismine.cpp b/src/script/ismine.cpp
--- a/src/script/ismine.cpp
+++ b/src/script/ismine.cpp
@@ -35,7 +35,7 @@
     NO = 0,         //! Not ours
     WATCH_ONLY = 1, //! Included in watch-only balance
     SPENDABLE = 2,  //! Included in all balances
-    INVALID = 3,    //! Not spendable by anyone
+    INVALID = 3,    //! Not spendable by anyone (P2SH inside P2SH)
 };
 
 bool HaveKeys(const std::vector<valtype> &pubkeys, const CKeyStore &keystore) {
@@ -115,12 +115,9 @@
 
 } // namespace
 
-isminetype IsMine(const CKeyStore &keystore, const CScript &scriptPubKey,
-                  bool &isInvalid) {
-    isInvalid = false;
+isminetype IsMine(const CKeyStore &keystore, const CScript &scriptPubKey) {
     switch (IsMineInner(keystore, scriptPubKey, IsMineSigVersion::TOP)) {
         case IsMineResult::INVALID:
-            isInvalid = true;
         case IsMineResult::NO:
             return ISMINE_NO;
         case IsMineResult::WATCH_ONLY:
@@ -131,11 +128,6 @@
     assert(false);
 }
 
-isminetype IsMine(const CKeyStore &keystore, const CScript &scriptPubKey) {
-    bool isInvalid = false;
-    return IsMine(keystore, scriptPubKey, isInvalid);
-}
-
 isminetype IsMine(const CKeyStore &keystore, const CTxDestination &dest) {
     CScript script = GetScriptForDestination(dest);
     return IsMine(keystore, script);
diff --git a/src/script/standard.cpp b/src/script/standard.cpp
--- a/src/script/standard.cpp
+++ b/src/script/standard.cpp
@@ -5,6 +5,7 @@
 
 #include <script/standard.h>
 
+#include <crypto/sha256.h>
 #include <pubkey.h>
 #include <script/script.h>
 
diff --git a/src/test/script_standard_tests.cpp b/src/test/script_standard_tests.cpp
--- a/src/test/script_standard_tests.cpp
+++ b/src/test/script_standard_tests.cpp
@@ -445,146 +445,135 @@
 
     CScript scriptPubKey;
     isminetype result;
-    bool isInvalid;
 
     // P2PK compressed
     {
         CBasicKeyStore keystore;
-        scriptPubKey.clear();
-        scriptPubKey << ToByteVector(pubkeys[0]) << OP_CHECKSIG;
+        scriptPubKey = GetScriptForRawPubKey(pubkeys[0]);
 
         // Keystore does not have key
-        result = IsMine(keystore, scriptPubKey, isInvalid);
+        result = IsMine(keystore, scriptPubKey);
         BOOST_CHECK_EQUAL(result, ISMINE_NO);
-        BOOST_CHECK(!isInvalid);
 
         // Keystore has key
         keystore.AddKey(keys[0]);
-        result = IsMine(keystore, scriptPubKey, isInvalid);
+        result = IsMine(keystore, scriptPubKey);
         BOOST_CHECK_EQUAL(result, ISMINE_SPENDABLE);
-        BOOST_CHECK(!isInvalid);
     }
 
     // P2PK uncompressed
     {
         CBasicKeyStore keystore;
-        scriptPubKey.clear();
-        scriptPubKey << ToByteVector(uncompressedPubkey) << OP_CHECKSIG;
+        scriptPubKey = GetScriptForRawPubKey(uncompressedPubkey);
 
         // Keystore does not have key
-        result = IsMine(keystore, scriptPubKey, isInvalid);
+        result = IsMine(keystore, scriptPubKey);
         BOOST_CHECK_EQUAL(result, ISMINE_NO);
-        BOOST_CHECK(!isInvalid);
 
         // Keystore has key
         keystore.AddKey(uncompressedKey);
-        result = IsMine(keystore, scriptPubKey, isInvalid);
+        result = IsMine(keystore, scriptPubKey);
         BOOST_CHECK_EQUAL(result, ISMINE_SPENDABLE);
-        BOOST_CHECK(!isInvalid);
     }
 
     // P2PKH compressed
     {
         CBasicKeyStore keystore;
-        scriptPubKey.clear();
-        scriptPubKey << OP_DUP << OP_HASH160 << ToByteVector(pubkeys[0].GetID())
-                     << OP_EQUALVERIFY << OP_CHECKSIG;
+        scriptPubKey = GetScriptForDestination(pubkeys[0].GetID());
 
         // Keystore does not have key
-        result = IsMine(keystore, scriptPubKey, isInvalid);
+        result = IsMine(keystore, scriptPubKey);
         BOOST_CHECK_EQUAL(result, ISMINE_NO);
-        BOOST_CHECK(!isInvalid);
 
         // Keystore has key
         keystore.AddKey(keys[0]);
-        result = IsMine(keystore, scriptPubKey, isInvalid);
+        result = IsMine(keystore, scriptPubKey);
         BOOST_CHECK_EQUAL(result, ISMINE_SPENDABLE);
-        BOOST_CHECK(!isInvalid);
     }
 
     // P2PKH uncompressed
     {
         CBasicKeyStore keystore;
-        scriptPubKey.clear();
-        scriptPubKey << OP_DUP << OP_HASH160
-                     << ToByteVector(uncompressedPubkey.GetID())
-                     << OP_EQUALVERIFY << OP_CHECKSIG;
+        scriptPubKey = GetScriptForDestination(uncompressedPubkey.GetID());
 
         // Keystore does not have key
-        result = IsMine(keystore, scriptPubKey, isInvalid);
+        result = IsMine(keystore, scriptPubKey);
         BOOST_CHECK_EQUAL(result, ISMINE_NO);
-        BOOST_CHECK(!isInvalid);
 
         // Keystore has key
         keystore.AddKey(uncompressedKey);
-        result = IsMine(keystore, scriptPubKey, isInvalid);
+        result = IsMine(keystore, scriptPubKey);
         BOOST_CHECK_EQUAL(result, ISMINE_SPENDABLE);
-        BOOST_CHECK(!isInvalid);
     }
 
     // P2SH
     {
         CBasicKeyStore keystore;
 
-        CScript redeemScript;
-        redeemScript << OP_DUP << OP_HASH160 << ToByteVector(pubkeys[0].GetID())
-                     << OP_EQUALVERIFY << OP_CHECKSIG;
-
-        scriptPubKey.clear();
-        scriptPubKey << OP_HASH160 << ToByteVector(CScriptID(redeemScript))
-                     << OP_EQUAL;
+        CScript redeemScript = GetScriptForDestination(pubkeys[0].GetID());
+        scriptPubKey = GetScriptForDestination(CScriptID(redeemScript));
 
         // Keystore does not have redeemScript or key
-        result = IsMine(keystore, scriptPubKey, isInvalid);
+        result = IsMine(keystore, scriptPubKey);
         BOOST_CHECK_EQUAL(result, ISMINE_NO);
-        BOOST_CHECK(!isInvalid);
 
         // Keystore has redeemScript but no key
         keystore.AddCScript(redeemScript);
-        result = IsMine(keystore, scriptPubKey, isInvalid);
+        result = IsMine(keystore, scriptPubKey);
         BOOST_CHECK_EQUAL(result, ISMINE_NO);
-        BOOST_CHECK(!isInvalid);
 
         // Keystore has redeemScript and key
         keystore.AddKey(keys[0]);
-        result = IsMine(keystore, scriptPubKey, isInvalid);
+        result = IsMine(keystore, scriptPubKey);
         BOOST_CHECK_EQUAL(result, ISMINE_SPENDABLE);
-        BOOST_CHECK(!isInvalid);
+    }
+
+    // (P2PKH inside) P2SH inside P2SH (invalid)
+    {
+        CBasicKeyStore keystore;
+
+        CScript redeemscript_inner =
+            GetScriptForDestination(pubkeys[0].GetID());
+        CScript redeemscript =
+            GetScriptForDestination(CScriptID(redeemscript_inner));
+        scriptPubKey = GetScriptForDestination(CScriptID(redeemscript));
+
+        keystore.AddCScript(redeemscript);
+        keystore.AddCScript(redeemscript_inner);
+        keystore.AddCScript(scriptPubKey);
+        keystore.AddKey(keys[0]);
+        result = IsMine(keystore, scriptPubKey);
+        BOOST_CHECK_EQUAL(result, ISMINE_NO);
     }
 
     // scriptPubKey multisig
     {
         CBasicKeyStore keystore;
 
-        scriptPubKey.clear();
-        scriptPubKey << OP_2 << ToByteVector(uncompressedPubkey)
-                     << ToByteVector(pubkeys[1]) << OP_2 << OP_CHECKMULTISIG;
+        scriptPubKey =
+            GetScriptForMultisig(2, {uncompressedPubkey, pubkeys[1]});
 
         // Keystore does not have any keys
-        result = IsMine(keystore, scriptPubKey, isInvalid);
+        result = IsMine(keystore, scriptPubKey);
         BOOST_CHECK_EQUAL(result, ISMINE_NO);
-        BOOST_CHECK(!isInvalid);
 
         // Keystore has 1/2 keys
         keystore.AddKey(uncompressedKey);
 
-        result = IsMine(keystore, scriptPubKey, isInvalid);
+        result = IsMine(keystore, scriptPubKey);
         BOOST_CHECK_EQUAL(result, ISMINE_NO);
-        BOOST_CHECK(!isInvalid);
 
         // Keystore has 2/2 keys
         keystore.AddKey(keys[1]);
 
-        result = IsMine(keystore, scriptPubKey, isInvalid);
+        result = IsMine(keystore, scriptPubKey);
         BOOST_CHECK_EQUAL(result, ISMINE_NO);
-        BOOST_CHECK(!isInvalid);
 
         // Keystore has 2/2 keys and the script
         keystore.AddCScript(scriptPubKey);
 
-        result = IsMine(keystore, scriptPubKey, isInvalid);
+        result = IsMine(keystore, scriptPubKey);
         BOOST_CHECK_EQUAL(result, ISMINE_NO);
-        BOOST_CHECK(!isInvalid);
     }
 
     // P2SH multisig
@@ -593,24 +582,18 @@
         keystore.AddKey(uncompressedKey);
         keystore.AddKey(keys[1]);
 
-        CScript redeemScript;
-        redeemScript << OP_2 << ToByteVector(uncompressedPubkey)
-                     << ToByteVector(pubkeys[1]) << OP_2 << OP_CHECKMULTISIG;
-
-        scriptPubKey.clear();
-        scriptPubKey << OP_HASH160 << ToByteVector(CScriptID(redeemScript))
-                     << OP_EQUAL;
+        CScript redeemScript =
+            GetScriptForMultisig(2, {uncompressedPubkey, pubkeys[1]});
+        scriptPubKey = GetScriptForDestination(CScriptID(redeemScript));
 
         // Keystore has no redeemScript
-        result = IsMine(keystore, scriptPubKey, isInvalid);
+        result = IsMine(keystore, scriptPubKey);
         BOOST_CHECK_EQUAL(result, ISMINE_NO);
-        BOOST_CHECK(!isInvalid);
 
         // Keystore has redeemScript
         keystore.AddCScript(redeemScript);
-        result = IsMine(keystore, scriptPubKey, isInvalid);
+        result = IsMine(keystore, scriptPubKey);
         BOOST_CHECK_EQUAL(result, ISMINE_SPENDABLE);
-        BOOST_CHECK(!isInvalid);
     }
 
     // OP_RETURN
@@ -621,9 +604,8 @@
         scriptPubKey.clear();
         scriptPubKey << OP_RETURN << ToByteVector(pubkeys[0]);
 
-        result = IsMine(keystore, scriptPubKey, isInvalid);
+        result = IsMine(keystore, scriptPubKey);
         BOOST_CHECK_EQUAL(result, ISMINE_NO);
-        BOOST_CHECK(!isInvalid);
     }
 
     // Nonstandard
@@ -634,9 +616,8 @@
         scriptPubKey.clear();
         scriptPubKey << OP_9 << OP_ADD << OP_11 << OP_EQUAL;
 
-        result = IsMine(keystore, scriptPubKey, isInvalid);
+        result = IsMine(keystore, scriptPubKey);
         BOOST_CHECK_EQUAL(result, ISMINE_NO);
-        BOOST_CHECK(!isInvalid);
     }
 }