diff --git a/test/functional/interface_zmq.py b/test/functional/interface_zmq.py
index 654aff89a..88ed74a87 100755
--- a/test/functional/interface_zmq.py
+++ b/test/functional/interface_zmq.py
@@ -1,220 +1,235 @@
 #!/usr/bin/env python3
 # Copyright (c) 2015-2019 The Bitcoin Core developers
 # Distributed under the MIT software license, see the accompanying
 # file COPYING or http://www.opensource.org/licenses/mit-license.php.
 """Test the ZMQ notification interface."""
 import struct
 from io import BytesIO
 
 from test_framework.address import ADDRESS_BCHREG_UNSPENDABLE
 from test_framework.test_framework import BitcoinTestFramework
 from test_framework.messages import CTransaction, hash256
 from test_framework.util import (
     assert_equal,
     connect_nodes,
 )
 from time import sleep
 
 
 def hash256_reversed(byte_str):
     return hash256(byte_str)[::-1]
 
 
 class ZMQSubscriber:
     def __init__(self, socket, topic):
         self.sequence = 0
         self.socket = socket
         self.topic = topic
 
         import zmq
         self.socket.setsockopt(zmq.SUBSCRIBE, self.topic)
 
     def receive(self):
         topic, body, seq = self.socket.recv_multipart()
         # Topic should match the subscriber topic.
         assert_equal(topic, self.topic)
         # Sequence should be incremental.
         assert_equal(struct.unpack('<I', seq)[-1], self.sequence)
         self.sequence += 1
         return body
 
 
 class ZMQTest (BitcoinTestFramework):
     def set_test_params(self):
         self.num_nodes = 2
 
     def skip_test_if_missing_module(self):
         self.skip_if_no_py3_zmq()
         self.skip_if_no_bitcoind_zmq()
 
     def run_test(self):
         import zmq
         self.ctx = zmq.Context()
         try:
             self.test_basic()
             self.test_reorg()
         finally:
             # Destroy the ZMQ context.
             self.log.debug("Destroying ZMQ context")
             self.ctx.destroy(linger=None)
 
     def test_basic(self):
         import zmq
 
         # Invalid zmq arguments don't take down the node, see #17185.
         self.restart_node(0, ["-zmqpubrawtx=foo", "-zmqpubhashtx=bar"])
 
         address = 'tcp://127.0.0.1:28332'
         sockets = []
         subs = []
         services = [b"hashblock", b"hashtx", b"rawblock", b"rawtx"]
         for service in services:
             sockets.append(self.ctx.socket(zmq.SUB))
             sockets[-1].set(zmq.RCVTIMEO, 60000)
             subs.append(ZMQSubscriber(sockets[-1], service))
 
         # Subscribe to all available topics.
         hashblock = subs[0]
         hashtx = subs[1]
         rawblock = subs[2]
         rawtx = subs[3]
 
         self.restart_node(0, ["-zmqpub{}={}".format(sub.topic.decode(), address)
                               for sub in [hashblock, hashtx, rawblock, rawtx]])
         connect_nodes(self.nodes[0], self.nodes[1])
         for socket in sockets:
             socket.connect(address)
         # Relax so that the subscriber is ready before publishing zmq messages
         sleep(0.2)
 
         num_blocks = 5
         self.log.info(
             "Generate {0} blocks (and {0} coinbase txes)".format(num_blocks))
         genhashes = self.nodes[0].generatetoaddress(
             num_blocks, ADDRESS_BCHREG_UNSPENDABLE)
 
         self.sync_all()
 
         for x in range(num_blocks):
             # Should receive the coinbase txid.
             txid = hashtx.receive()
 
             # Should receive the coinbase raw transaction.
             hex = rawtx.receive()
             tx = CTransaction()
             tx.deserialize(BytesIO(hex))
             tx.calc_sha256()
             assert_equal(tx.hash, txid.hex())
 
             # Should receive the generated raw block.
             block = rawblock.receive()
             assert_equal(genhashes[x], hash256_reversed(block[:80]).hex())
 
             # Should receive the generated block hash.
             hash = hashblock.receive().hex()
             assert_equal(genhashes[x], hash)
             # The block should only have the coinbase txid.
             assert_equal([txid.hex()], self.nodes[1].getblock(hash)["tx"])
 
         if self.is_wallet_compiled():
             self.log.info("Wait for tx from second node")
             payment_txid = self.nodes[1].sendtoaddress(
                 self.nodes[0].getnewaddress(), 1.0)
             self.sync_all()
 
             # Should receive the broadcasted txid.
             txid = hashtx.receive()
             assert_equal(payment_txid, txid.hex())
 
             # Should receive the broadcasted raw transaction.
             hex = rawtx.receive()
             assert_equal(payment_txid, hash256_reversed(hex).hex())
 
             # Mining the block with this tx should result in second notification
             # after coinbase tx notification
             self.nodes[0].generatetoaddress(1, ADDRESS_BCHREG_UNSPENDABLE)
             hashtx.receive()
             txid = hashtx.receive()
             assert_equal(payment_txid, txid.hex())
 
         self.log.info("Test the getzmqnotifications RPC")
         assert_equal(self.nodes[0].getzmqnotifications(), [
             {"type": "pubhashblock", "address": address, "hwm": 1000},
             {"type": "pubhashtx", "address": address, "hwm": 1000},
             {"type": "pubrawblock", "address": address, "hwm": 1000},
             {"type": "pubrawtx", "address": address, "hwm": 1000},
         ])
 
         assert_equal(self.nodes[1].getzmqnotifications(), [])
 
     def test_reorg(self):
+        if not self.is_wallet_compiled():
+            self.log.info("Skipping reorg test because wallet is disabled")
+            return
+
         import zmq
         address = 'tcp://127.0.0.1:28333'
 
         services = [b"hashblock", b"hashtx"]
         sockets = []
         subs = []
         for service in services:
             sockets.append(self.ctx.socket(zmq.SUB))
             # 2 second timeout to check end of notifications
             sockets[-1].set(zmq.RCVTIMEO, 2000)
             subs.append(ZMQSubscriber(sockets[-1], service))
 
         # Subscribe to all available topics.
         hashblock = subs[0]
         hashtx = subs[1]
 
         # Should only notify the tip if a reorg occurs
         self.restart_node(
             0, ['-zmqpub{}={}'.format(sub.topic.decode(), address) for sub in [hashblock, hashtx]])
         for socket in sockets:
             socket.connect(address)
         # Relax so that the subscriber is ready before publishing zmq messages
         sleep(0.2)
 
-        # Generate 1 block in nodes[0] and receive all notifications
+        # Generate 1 block in nodes[0] with 1 mempool tx and receive all
+        # notifications
+        payment_txid = self.nodes[0].sendtoaddress(
+            self.nodes[0].getnewaddress(), 1.0)
         disconnect_block = self.nodes[0].generatetoaddress(
             1, ADDRESS_BCHREG_UNSPENDABLE)[0]
-        self.nodes[0].getblock(disconnect_block)["tx"][0]
+        disconnect_cb = self.nodes[0].getblock(disconnect_block)["tx"][0]
         assert_equal(
             self.nodes[0].getbestblockhash(),
             hashblock.receive().hex())
-        # consume, already tested
-        hashtx.receive()
+        assert_equal(hashtx.receive().hex(), payment_txid)
+        assert_equal(hashtx.receive().hex(), disconnect_cb)
 
         # Generate 2 blocks in nodes[1]
         connect_blocks = self.nodes[1].generatetoaddress(
             2, ADDRESS_BCHREG_UNSPENDABLE)
 
         # nodes[0] will reorg chain after connecting back nodes[1]
         connect_nodes(self.nodes[0], self.nodes[1])
-        self.sync_all()
+        # tx in mempool valid but not advertised
+        self.sync_blocks()
 
         # Should receive nodes[1] tip
         assert_equal(
             self.nodes[1].getbestblockhash(),
             hashblock.receive().hex())
 
-        # During reorg, should only receive the last coinbase tx from tip
+        # During reorg:
+        # Get old payment transaction notification from disconnect and
+        # disconnected cb
+        assert_equal(hashtx.receive().hex(), payment_txid)
+        assert_equal(hashtx.receive().hex(), disconnect_cb)
+        # And the payment transaction again due to mempool entry
+        assert_equal(hashtx.receive().hex(), payment_txid)
+        assert_equal(hashtx.receive().hex(), payment_txid)
+        # And the new connected coinbases
+        for i in [0, 1]:
+            assert_equal(
+                hashtx.receive().hex(),
+                self.nodes[1].getblock(
+                    connect_blocks[i])["tx"][0])
+
+        # If we do a simple invalidate we announce the disconnected coinbase
+        self.nodes[0].invalidateblock(connect_blocks[1])
         assert_equal(
             hashtx.receive().hex(),
             self.nodes[1].getblock(
                 connect_blocks[1])["tx"][0])
-
-        # But if we do a simple invalidate we announce the disconnected
-        # coinbase
-        self.nodes[0].invalidateblock(connect_blocks[1])
+        # And the current tip
         assert_equal(
             hashtx.receive().hex(),
             self.nodes[1].getblock(
-                connect_blocks[1])["tx"][0])
-        # And not the current tip
-        try:
-            hashtx.receive()
-            raise Exception("Should have failed")
-        except zmq.error.Again:
-            pass
+                connect_blocks[0])["tx"][0])
 
 
 if __name__ == '__main__':
     ZMQTest().main()