diff --git a/crates/chain-orchestrator/src/lib.rs b/crates/chain-orchestrator/src/lib.rs
index 660fe5f6..0845c18c 100644
--- a/crates/chain-orchestrator/src/lib.rs
+++ b/crates/chain-orchestrator/src/lib.rs
@@ -8,7 +8,7 @@ use alloy_rpc_types_engine::ExecutionPayloadV1;
 use futures::StreamExt;
 use reth_chainspec::EthChainSpec;
 use reth_network_api::{BlockDownloaderProvider, FullNetwork};
-use reth_network_p2p::FullBlockClient;
+use reth_network_p2p::{sync::SyncState as RethSyncState, FullBlockClient};
 use reth_scroll_node::ScrollNetworkPrimitives;
 use reth_scroll_primitives::ScrollBlock;
 use reth_tasks::shutdown::Shutdown;
@@ -1081,36 +1081,34 @@ impl<
 
         if head_block_number == safe_block_number {
             tracing::trace!(target: "scroll::chain_orchestrator", "No unsafe blocks to consolidate");
+        } else {
+            let start_block_number = safe_block_number + 1;
+            // TODO: Make fetching parallel but ensure concurrency limits are respected.
+            let mut blocks_to_validate = vec![];
+            for block_number in start_block_number..=head_block_number {
+                let block = self
+                    .l2_client
+                    .get_block_by_number(block_number.into())
+                    .full()
+                    .await?
+                    .ok_or(ChainOrchestratorError::L2BlockNotFoundInL2Client(block_number))?
+                    .into_consensus()
+                    .map_transactions(|tx| tx.inner.into_inner());
+                blocks_to_validate.push(block);
+            }
 
-            self.notify(ChainOrchestratorEvent::ChainConsolidated {
-                from: safe_block_number,
-                to: head_block_number,
-            });
-            return Ok(());
-        }
+            self.validate_l1_messages(&blocks_to_validate).await?;
 
-        let start_block_number = safe_block_number + 1;
-        // TODO: Make fetching parallel but ensure concurrency limits are respected.
-        let mut blocks_to_validate = vec![];
-        for block_number in start_block_number..=head_block_number {
-            let block = self
-                .l2_client
-                .get_block_by_number(block_number.into())
-                .full()
-                .await?
-                .ok_or(ChainOrchestratorError::L2BlockNotFoundInL2Client(block_number))?
-                .into_consensus()
-                .map_transactions(|tx| tx.inner.into_inner());
-            blocks_to_validate.push(block);
-        }
-
-        self.validate_l1_messages(&blocks_to_validate).await?;
+            self.database
+                .update_l1_messages_from_l2_blocks(
+                    blocks_to_validate.into_iter().map(|b| (&b).into()).collect(),
+                )
+                .await?;
+        };
 
-        self.database
-            .update_l1_messages_from_l2_blocks(
-                blocks_to_validate.into_iter().map(|b| (&b).into()).collect(),
-            )
-            .await?;
+        // send a notification to the network that the chain is synced such that it accepts
+        // transactions into the transaction pool.
+        self.network.handle().inner().update_sync_state(RethSyncState::Idle);
 
         self.notify(ChainOrchestratorEvent::ChainConsolidated {
             from: safe_block_number,
diff --git a/crates/node/tests/sync.rs b/crates/node/tests/sync.rs
index 04d036e6..2d2686a2 100644
--- a/crates/node/tests/sync.rs
+++ b/crates/node/tests/sync.rs
@@ -10,7 +10,7 @@ use reth_tokio_util::EventStream;
 use rollup_node::{
     test_utils::{
         default_sequencer_test_scroll_rollup_node_config, default_test_scroll_rollup_node_config,
-        setup_engine,
+        generate_tx, setup_engine,
     },
     BlobProviderArgs, ChainOrchestratorArgs, ConsensusArgs, EngineDriverArgs, L1ProviderArgs,
     RollupNodeDatabaseArgs, RollupNodeGasPriceOracleArgs, RollupNodeNetworkArgs, RpcArgs,
@@ -98,6 +98,68 @@ async fn test_should_consolidate_to_block_15k() -> eyre::Result<()> {
     Ok(())
 }
 
+#[allow(clippy::large_stack_frames)]
+#[tokio::test]
+async fn test_node_produces_block_on_startup() -> eyre::Result<()> {
+    reth_tracing::init_test_tracing();
+
+    let mut sequencer_node_config = default_sequencer_test_scroll_rollup_node_config();
+    sequencer_node_config.sequencer_args.auto_start = true;
+    sequencer_node_config.sequencer_args.allow_empty_blocks = false;
+
+    let (mut nodes, _tasks, wallet) =
+        setup_engine(sequencer_node_config, 2, (*SCROLL_DEV).clone(), false, false).await?;
+
+    let follower = nodes.pop().unwrap();
+    let mut follower_events =
+        follower.inner.add_ons_handle.rollup_manager_handle.get_event_listener().await?;
+    let follower_l1_watcher_tx = follower.inner.add_ons_handle.l1_watcher_tx.clone().unwrap();
+
+    let sequencer = nodes.pop().unwrap();
+    let mut sequencer_events =
+        sequencer.inner.add_ons_handle.rollup_manager_handle.get_event_listener().await?;
+    let sequencer_l1_watcher_tx = sequencer.inner.add_ons_handle.l1_watcher_tx.clone().unwrap();
+
+    // Send a notification to the sequencer and follower nodes that the L1 watcher is synced.
+    sequencer_l1_watcher_tx.send(Arc::new(L1Notification::Synced)).await.unwrap();
+    follower_l1_watcher_tx.send(Arc::new(L1Notification::Synced)).await.unwrap();
+
+    // wait for both nodes to be synced.
+    wait_n_events(
+        &mut sequencer_events,
+        |e| matches!(e, ChainOrchestratorEvent::ChainConsolidated { from: _, to: _ }),
+        1,
+    )
+    .await;
+    wait_n_events(
+        &mut follower_events,
+        |e| matches!(e, ChainOrchestratorEvent::ChainConsolidated { from: _, to: _ }),
+        1,
+    )
+    .await;
+
+    // construct a transaction and send it to the follower node.
+    let wallet = Arc::new(tokio::sync::Mutex::new(wallet));
+    let handle = tokio::spawn(async move {
+        loop {
+            let tx = generate_tx(wallet.clone()).await;
+            follower.rpc.inject_tx(tx).await.unwrap();
+        }
+    });
+
+    // Assert that the follower node receives the new block.
+    wait_n_events(
+        &mut follower_events,
+        |e| matches!(e, ChainOrchestratorEvent::ChainExtended(_)),
+        1,
+    )
+    .await;
+
+    drop(handle);
+
+    Ok(())
+}
+
 /// We test if the syncing of the RN is correctly triggered and released when the EN reaches sync.
 #[allow(clippy::large_stack_frames)]
 #[tokio::test]