diff --git a/test/functional/test_runner.py b/test/functional/test_runner.py
index ad5673e03a..dd61efa757 100755
--- a/test/functional/test_runner.py
+++ b/test/functional/test_runner.py
@@ -131,6 +131,7 @@ BASE_SCRIPTS = [
     'wallet_createwallet.py --usecli',
     'wallet_watchonly.py',
     'wallet_watchonly.py --usecli',
+    'wallet_reorgsrestore.py',
     'interface_http.py',
     'interface_rpc.py',
     'rpc_psbt.py',
diff --git a/test/functional/wallet_reorgsrestore.py b/test/functional/wallet_reorgsrestore.py
new file mode 100755
index 0000000000..f48018e9fb
--- /dev/null
+++ b/test/functional/wallet_reorgsrestore.py
@@ -0,0 +1,105 @@
+#!/usr/bin/env python3
+# Copyright (c) 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 tx status in case of reorgs while wallet being shutdown.
+
+Wallet txn status rely on block connection/disconnection for its
+accuracy. In case of reorgs happening while wallet being shutdown
+block updates are not going to be received. At wallet loading, we
+check against chain if confirmed txn are still in chain and change
+their status if block in which they have been included has been
+disconnected.
+"""
+
+from decimal import Decimal
+import os
+import shutil
+
+from test_framework.test_framework import BitcoinTestFramework
+from test_framework.util import (
+        assert_equal,
+        connect_nodes,
+        disconnect_nodes,
+)
+
+class ReorgsRestoreTest(BitcoinTestFramework):
+    def set_test_params(self):
+        self.num_nodes = 3
+
+    def skip_test_if_missing_module(self):
+        self.skip_if_no_wallet()
+
+    def run_test(self):
+        # Send a tx from which to conflict outputs later
+        txid_conflict_from = self.nodes[0].sendtoaddress(self.nodes[0].getnewaddress(), Decimal("10"))
+        self.nodes[0].generate(1)
+        self.sync_blocks()
+
+        # Disconnect node1 from others to reorg its chain later
+        disconnect_nodes(self.nodes[0], 1)
+        disconnect_nodes(self.nodes[1], 2)
+        connect_nodes(self.nodes[0], 2)
+
+        # Send a tx to be unconfirmed later
+        txid = self.nodes[0].sendtoaddress(self.nodes[0].getnewaddress(), Decimal("10"))
+        tx = self.nodes[0].gettransaction(txid)
+        self.nodes[0].generate(4)
+        tx_before_reorg = self.nodes[0].gettransaction(txid)
+        assert_equal(tx_before_reorg["confirmations"], 4)
+
+        # Disconnect node0 from node2 to broadcast a conflict on their respective chains
+        disconnect_nodes(self.nodes[0], 2)
+        nA = next(tx_out["vout"] for tx_out in self.nodes[0].gettransaction(txid_conflict_from)["details"] if tx_out["amount"] == Decimal("10"))
+        inputs = []
+        inputs.append({"txid": txid_conflict_from, "vout": nA})
+        outputs_1 = {}
+        outputs_2 = {}
+
+        # Create a conflicted tx broadcast on node0 chain and conflicting tx broadcast on node1 chain. Both spend from txid_conflict_from
+        outputs_1[self.nodes[0].getnewaddress()] = Decimal("9.99998")
+        outputs_2[self.nodes[0].getnewaddress()] = Decimal("9.99998")
+        conflicted = self.nodes[0].signrawtransactionwithwallet(self.nodes[0].createrawtransaction(inputs, outputs_1))
+        conflicting = self.nodes[0].signrawtransactionwithwallet(self.nodes[0].createrawtransaction(inputs, outputs_2))
+
+        conflicted_txid = self.nodes[0].sendrawtransaction(conflicted["hex"])
+        self.nodes[0].generate(1)
+        conflicting_txid = self.nodes[2].sendrawtransaction(conflicting["hex"])
+        self.nodes[2].generate(9)
+
+        # Reconnect node0 and node2 and check that conflicted_txid is effectively conflicted
+        connect_nodes(self.nodes[0], 2)
+        self.sync_blocks([self.nodes[0], self.nodes[2]])
+        conflicted = self.nodes[0].gettransaction(conflicted_txid)
+        conflicting = self.nodes[0].gettransaction(conflicting_txid)
+        assert_equal(conflicted["confirmations"], -9)
+        assert_equal(conflicted["walletconflicts"][0], conflicting["txid"])
+
+        # Node0 wallet is shutdown
+        self.stop_node(0)
+        self.start_node(0)
+
+        # The block chain re-orgs and the tx is included in a different block
+        self.nodes[1].generate(9)
+        self.nodes[1].sendrawtransaction(tx["hex"])
+        self.nodes[1].generate(1)
+        self.nodes[1].sendrawtransaction(conflicted["hex"])
+        self.nodes[1].generate(1)
+
+        # Node0 wallet file is loaded on longest sync'ed node1
+        self.stop_node(1)
+        self.nodes[0].backupwallet(os.path.join(self.nodes[0].datadir, 'wallet.bak'))
+        shutil.copyfile(os.path.join(self.nodes[0].datadir, 'wallet.bak'), os.path.join(self.nodes[1].datadir, 'regtest', 'wallet.dat'))
+        self.start_node(1)
+        tx_after_reorg = self.nodes[1].gettransaction(txid)
+        # Check that normal confirmed tx is confirmed again but with different blockhash
+        assert_equal(tx_after_reorg["confirmations"], 2)
+        assert(tx_before_reorg["blockhash"] != tx_after_reorg["blockhash"])
+        conflicted_after_reorg = self.nodes[1].gettransaction(conflicted_txid)
+        # Check that conflicted tx is confirmed again with blockhash different than previously conflicting tx
+        assert_equal(conflicted_after_reorg["confirmations"], 1)
+        assert(conflicting["blockhash"] != conflicted_after_reorg["blockhash"])
+
+if __name__ == '__main__':
+    ReorgsRestoreTest().main()