diff --git a/src/script/descriptor.cpp b/src/script/descriptor.cpp
--- a/src/script/descriptor.cpp
+++ b/src/script/descriptor.cpp
@@ -392,17 +392,30 @@
 
         // Derive keys or fetch them from cache
         CExtPubKey final_extkey = m_root_extkey;
+        CExtPubKey parent_extkey = m_root_extkey;
         bool der = true;
         if (read_cache) {
             if (!read_cache->GetCachedDerivedExtPubKey(m_expr_index, pos,
                                                        final_extkey)) {
-                return false;
+                if (m_derive == DeriveType::HARDENED) {
+                    return false;
+                }
+                // Try to get the derivation parent
+                if (!read_cache->GetCachedParentExtPubKey(m_expr_index,
+                                                          parent_extkey)) {
+                    return false;
+                }
+                final_extkey = parent_extkey;
+                if (m_derive == DeriveType::UNHARDENED) {
+                    der = parent_extkey.Derive(final_extkey, pos);
+                }
             }
         } else if (IsHardened()) {
             CExtKey xprv;
             if (!GetDerivedExtKey(arg, xprv)) {
                 return false;
             }
+            parent_extkey = xprv.Neuter();
             if (m_derive == DeriveType::UNHARDENED) {
                 der = xprv.Derive(xprv, pos);
             }
@@ -412,11 +425,12 @@
             final_extkey = xprv.Neuter();
         } else {
             for (auto entry : m_path) {
-                der = final_extkey.Derive(final_extkey, entry);
+                der = parent_extkey.Derive(parent_extkey, entry);
                 assert(der);
             }
+            final_extkey = parent_extkey;
             if (m_derive == DeriveType::UNHARDENED) {
-                der = final_extkey.Derive(final_extkey, pos);
+                der = parent_extkey.Derive(final_extkey, pos);
             }
             assert(m_derive != DeriveType::HARDENED);
         }
@@ -427,6 +441,10 @@
 
         if (write_cache) {
             write_cache->CacheDerivedExtPubKey(m_expr_index, pos, final_extkey);
+            // Only cache parent if there is any unhardened derivation
+            if (m_derive != DeriveType::HARDENED) {
+                write_cache->CacheParentExtPubKey(m_expr_index, parent_extkey);
+            }
         }
 
         return true;
diff --git a/src/test/descriptor_tests.cpp b/src/test/descriptor_tests.cpp
--- a/src/test/descriptor_tests.cpp
+++ b/src/test/descriptor_tests.cpp
@@ -37,6 +37,8 @@
 // We can sign with this descriptor (this is not true when actual BIP32
 // derivation is used, as that's not integrated in our signing code)
 constexpr int SIGNABLE = 8;
+// The final derivation is hardened, i.e. ends with *' or *h
+constexpr int DERIVE_HARDENED = 16;
 
 /**
  * Compare two descriptors. If only one of them has a checksum, the checksum is
@@ -179,6 +181,31 @@
             BOOST_CHECK(script_provider.origins ==
                         script_provider_cached.origins);
 
+            // Make sure we can expand using cached xpubs for unhardened
+            // derivation
+            if (!(flags & DERIVE_HARDENED)) {
+                // Evaluate the descriptor at i + 1
+                FlatSigningProvider script_provider1, script_provider_cached1;
+                std::vector<CScript> spks1, spk1_from_cache;
+                BOOST_CHECK((t ? parse_priv : parse_pub)
+                                ->Expand(i + 1, key_provider, spks1,
+                                         script_provider1, nullptr));
+
+                // Try again but use the cache from expanding i. That cache
+                // won't have the pubkeys for i + 1, but will have the parent
+                // xpub for derivation.
+                BOOST_CHECK(parse_pub->ExpandFromCache(
+                    i + 1, desc_cache, spk1_from_cache,
+                    script_provider_cached1));
+                BOOST_CHECK(spks1 == spk1_from_cache);
+                BOOST_CHECK(script_provider1.pubkeys ==
+                            script_provider_cached1.pubkeys);
+                BOOST_CHECK(script_provider1.scripts ==
+                            script_provider_cached1.scripts);
+                BOOST_CHECK(script_provider1.origins ==
+                            script_provider_cached1.origins);
+            }
+
             // For each of the produced scripts, verify solvability, and when
             // possible, try to sign a transaction spending it.
             for (size_t n = 0; n < spks.size(); ++n) {
@@ -396,7 +423,7 @@
           "sh(pkh("
           "xpub661MyMwAqRbcFtXgS5sYJABqqG9YLmC4Q1Rdap9gSE8NqtwybGhePY2gZ29ESFjq"
           "JoCu1Rupje8YtGqsefD265TMg7usUDFdp6W1EGMcet8/10/20/30/40/*'))",
-          RANGE | HARDENED,
+          RANGE | HARDENED | DERIVE_HARDENED,
           {{"a9149976cc014a7c012bbc43954a38cdee554865bd1987"},
            {"a914ad29a49cb0420b53d9d6bb8944bcd819c5ff716e87"},
            {"a914b2d9d290b193fd23b720e738184e3eedadc7d87d87"}},
@@ -533,7 +560,7 @@
           "*,"
           "xpub661MyMwAqRbcFtXgS5sYJABqqG9YLmC4Q1Rdap9gSE8NqtwybGhePY2gZ29ESFjq"
           "JoCu1Rupje8YtGqsefD265TMg7usUDFdp6W1EGMcet8/10/20/30/40/*'))",
-          HARDENED | RANGE,
+          HARDENED | RANGE | DERIVE_HARDENED,
           {{"a914261bbb58cd9714f92e91668d3eed7c4c860f4cdc87"},
            {"a914ff07ad97dc4458ed5236c52bb94ccb7339dedff887"},
            {"a91451f96613fdd66e75a026811ba4fdb9efec2c83a987"}},