diff --git a/src/wallet/wallet.cpp b/src/wallet/wallet.cpp
index 86cea876c26..671e4e4c6fb 100644
--- a/src/wallet/wallet.cpp
+++ b/src/wallet/wallet.cpp
@@ -1446,8 +1446,36 @@ void CWallet::blockDisconnected(const interfaces::BlockInfo& block)
     // future with a stickier abandoned state or even removing abandontransaction call.
     m_last_block_processed_height = block.height - 1;
     m_last_block_processed = *Assert(block.prev_hash);
+
+    int disconnect_height = block.height;
+
     for (const CTransactionRef& ptx : Assert(block.data)->vtx) {
         SyncTransaction(ptx, TxStateInactive{});
+
+        for (const CTxIn& tx_in : ptx->vin) {
+            // No other wallet transactions conflicted with this transaction
+            if (mapTxSpends.count(tx_in.prevout) < 1) continue;
+
+            std::pair<TxSpends::const_iterator, TxSpends::const_iterator> range = mapTxSpends.equal_range(tx_in.prevout);
+
+            // For all of the spends that conflict with this transaction
+            for (TxSpends::const_iterator _it = range.first; _it != range.second; ++_it) {
+                CWalletTx& wtx = mapWallet.find(_it->second)->second;
+
+                if (!wtx.isConflicted()) continue;
+
+                auto try_updating_state = [&](CWalletTx& tx) {
+                    if (!tx.isConflicted()) return TxUpdate::UNCHANGED;
+                    if (tx.state<TxStateConflicted>()->conflicting_block_height >= disconnect_height) {
+                        tx.m_state = TxStateInactive{};
+                        return TxUpdate::CHANGED;
+                    }
+                    return TxUpdate::UNCHANGED;
+                };
+
+                RecursiveUpdateTxState(wtx.tx->GetHash(), try_updating_state);
+            }
+        }
     }
 }
 
diff --git a/test/functional/wallet_abandonconflict.py b/test/functional/wallet_abandonconflict.py
index 934f44588df..26915077736 100755
--- a/test/functional/wallet_abandonconflict.py
+++ b/test/functional/wallet_abandonconflict.py
@@ -226,20 +226,16 @@ class AbandonConflictTest(BitcoinTestFramework):
         assert_equal(double_spend["walletconflicts"], [txAB1])
 
         # Verify that B and C's 10 BTC outputs are available for spending again because AB1 is now conflicted
+        assert_equal(alice.gettransaction(txAB1)["confirmations"], -1)
         newbalance = alice.getbalance()
         assert_equal(newbalance, balance + Decimal("20"))
         balance = newbalance
 
-        # There is currently a minor bug around this and so this test doesn't work.  See Issue #7315
-        # Invalidate the block with the double spend and B's 10 BTC output should no longer be available
-        # Don't think C's should either
+        # Invalidate the block with the double spend. B & C's 10 BTC outputs should no longer be available
         self.nodes[0].invalidateblock(self.nodes[0].getbestblockhash())
+        assert_equal(alice.gettransaction(txAB1)["confirmations"], 0)
         newbalance = alice.getbalance()
-        #assert_equal(newbalance, balance - Decimal("10"))
-        self.log.info("If balance has not declined after invalidateblock then out of mempool wallet tx which is no longer")
-        self.log.info("conflicted has not resumed causing its inputs to be seen as spent.  See Issue #7315")
-        assert_equal(balance, newbalance)
-
+        assert_equal(newbalance, balance - Decimal("20"))
 
 if __name__ == '__main__':
     AbandonConflictTest().main()