diff --git a/Cargo.lock b/Cargo.lock
index 4d6f599a22f..05c1b524f74 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -3356,6 +3356,7 @@ dependencies = [
  "ethrex-trie",
  "ethrex-vm",
  "hex",
+ "lru 0.16.2",
  "rustc-hash 2.1.1",
  "secp256k1",
  "serde_json",
diff --git a/crates/blockchain/Cargo.toml b/crates/blockchain/Cargo.toml
index 9ade036cd49..fca66b20c0a 100644
--- a/crates/blockchain/Cargo.toml
+++ b/crates/blockchain/Cargo.toml
@@ -26,6 +26,8 @@ tokio-util.workspace = true
 
 ethrex-metrics = { path = "./metrics", default-features = false }
 
+lru = "0.16.2"
+
 [dev-dependencies]
 serde_json.workspace = true
 hex = "0.4.3"
diff --git a/crates/blockchain/blockchain.rs b/crates/blockchain/blockchain.rs
index 6ec5951415d..3caf24da298 100644
--- a/crates/blockchain/blockchain.rs
+++ b/crates/blockchain/blockchain.rs
@@ -36,9 +36,10 @@ use ethrex_storage::{
 use ethrex_trie::{Nibbles, Node, NodeRef, Trie};
 use ethrex_vm::backends::levm::db::DatabaseLogger;
 use ethrex_vm::{BlockExecutionResult, DynVmDatabase, Evm, EvmError};
+use lru::LruCache;
 use mempool::Mempool;
 use payload::PayloadOrTask;
-use rustc_hash::FxHashMap;
+use rustc_hash::{FxBuildHasher, FxHashMap};
 use std::collections::hash_map::Entry;
 use std::collections::{BTreeMap, HashMap};
 use std::sync::{
@@ -61,6 +62,8 @@ use ethrex_common::types::BlobsBundle;
 const MAX_PAYLOADS: usize = 10;
 const MAX_MEMPOOL_SIZE_DEFAULT: usize = 10_000;
 
+const TX_SENDER_CACHE_MAX_SIZE: usize = 50_000;
+
 type StoreUpdatesMap = FxHashMap<H256, (Result<Trie, StoreError>, FxHashMap<Nibbles, Vec<u8>>)>;
 //TODO: Implement a struct Chain or BlockChain to encapsulate
 //functionality and canonical chain state and config
@@ -90,6 +93,8 @@ pub struct Blockchain {
     /// Mapping from a payload id to either a complete payload or a payload build task
     /// We need to keep completed payloads around in case consensus requests them twice
     pub payloads: Arc<TokioMutex<Vec<(u64, PayloadOrTask)>>>,
+    /// Cache for transaction senders, mapping from transaction hash to sender address
+    tx_sender_cache: Arc<Mutex<LruCache<H256, Address, FxBuildHasher>>>,
 }
 
 #[derive(Debug, Clone)]
@@ -142,6 +147,10 @@ impl Blockchain {
             is_synced: AtomicBool::new(false),
             payloads: Arc::new(TokioMutex::new(Vec::new())),
             options: blockchain_opts,
+            tx_sender_cache: Arc::new(Mutex::new(LruCache::with_hasher(
+                TX_SENDER_CACHE_MAX_SIZE.try_into().unwrap(),
+                FxBuildHasher,
+            ))),
         }
     }
 
@@ -152,6 +161,10 @@ impl Blockchain {
             is_synced: AtomicBool::new(false),
             payloads: Arc::new(TokioMutex::new(Vec::new())),
             options: BlockchainOptions::default(),
+            tx_sender_cache: Arc::new(Mutex::new(LruCache::with_hasher(
+                TX_SENDER_CACHE_MAX_SIZE.try_into().unwrap(),
+                FxBuildHasher,
+            ))),
         }
     }
 
@@ -227,14 +240,35 @@ impl Blockchain {
         let queue_length = AtomicUsize::new(0);
         let queue_length_ref = &queue_length;
         let mut max_queue_length = 0;
+        let tx_sender_cache = self.tx_sender_cache.clone();
+
         let (execution_result, account_updates_list) = std::thread::scope(|s| {
             let max_queue_length_ref = &mut max_queue_length;
             let (tx, rx) = channel();
             let execution_handle = std::thread::Builder::new()
                 .name("block_executor_execution".to_string())
                 .spawn_scoped(s, move || -> Result<_, ChainError> {
+                    let block_senders = {
+                        let mut tx_sender_cache = tx_sender_cache.lock().unwrap();
+                        block.body.precompute_tx_hashes();
+                        block
+                            .body
+                            .transactions
+                            .iter()
+                            .map(|tx| {
+                                tx_sender_cache
+                                    .get(&tx.hash())
+                                    .copied()
+                                    .unwrap_or(H160::zero())
+                            })
+                            .collect()
+                    };
+                    let block_senders = block
+                        .body
+                        .recover_with_cached_senders(block_senders)
+                        .unwrap();
                     let execution_result =
-                        vm.execute_block_pipeline(block, tx, queue_length_ref)?;
+                        vm.execute_block_pipeline(block, tx, queue_length_ref, &block_senders)?;
 
                     // Validate execution went alright
                     validate_gas_used(&execution_result.receipts, &block.header)?;
@@ -1400,8 +1434,9 @@ impl Blockchain {
 
         // Add transaction and blobs bundle to storage
         self.mempool
-            .add_transaction(hash, MempoolTransaction::new(transaction, sender))?;
+            .add_transaction(hash, sender, MempoolTransaction::new(transaction, sender))?;
         self.mempool.add_blobs_bundle(hash, blobs_bundle)?;
+        self.tx_sender_cache.lock().unwrap().put(hash, sender);
         Ok(hash)
     }
 
@@ -1426,7 +1461,8 @@ impl Blockchain {
 
         // Add transaction to storage
         self.mempool
-            .add_transaction(hash, MempoolTransaction::new(transaction, sender))?;
+            .add_transaction(hash, sender, MempoolTransaction::new(transaction, sender))?;
+        self.tx_sender_cache.lock().unwrap().put(hash, sender);
 
         Ok(hash)
     }
diff --git a/crates/blockchain/mempool.rs b/crates/blockchain/mempool.rs
index db14719c79a..247066dbbd1 100644
--- a/crates/blockchain/mempool.rs
+++ b/crates/blockchain/mempool.rs
@@ -103,6 +103,7 @@ impl Mempool {
     pub fn add_transaction(
         &self,
         hash: H256,
+        tx_sender: Address,
         transaction: MempoolTransaction,
     ) -> Result<(), StoreError> {
         let mut inner = self.write()?;
@@ -119,7 +120,7 @@ impl Mempool {
         inner.txs_order.push_back(hash);
         inner
             .txs_by_sender_nonce
-            .insert((transaction.sender(), transaction.nonce()), hash);
+            .insert((tx_sender, transaction.nonce()), hash);
         inner.transaction_pool.insert(hash, transaction);
         inner.broadcast_pool.insert(hash);
 
@@ -852,9 +853,11 @@ mod tests {
         let filter =
             |tx: &Transaction| -> bool { matches!(tx, Transaction::EIP4844Transaction(_)) };
         mempool
-            .add_transaction(blob_tx_hash, blob_tx.clone())
+            .add_transaction(blob_tx_hash, blob_tx_sender, blob_tx.clone())
+            .unwrap();
+        mempool
+            .add_transaction(plain_tx_hash, plain_tx_sender, plain_tx)
             .unwrap();
-        mempool.add_transaction(plain_tx_hash, plain_tx).unwrap();
         let txs = mempool.filter_transactions_with_filter_fn(&filter).unwrap();
         assert_eq!(txs, HashMap::from([(blob_tx.sender(), vec![blob_tx])]));
     }
diff --git a/crates/common/types/block.rs b/crates/common/types/block.rs
index e4f5eab06fa..d3a31f40642 100644
--- a/crates/common/types/block.rs
+++ b/crates/common/types/block.rs
@@ -20,7 +20,7 @@ use ethrex_rlp::{
     structs::{Decoder, Encoder},
 };
 use ethrex_trie::Trie;
-use rayon::iter::{IntoParallelRefIterator, ParallelIterator};
+use rayon::iter::{IndexedParallelIterator, IntoParallelRefIterator, ParallelIterator};
 use rkyv::{Archive, Deserialize as RDeserialize, Serialize as RSerialize};
 use serde::{Deserialize, Serialize};
 
@@ -260,6 +260,31 @@ impl BlockBody {
             .map(|tx| Ok((tx, tx.sender()?)))
             .collect::<Result<Vec<(&Transaction, Address)>, secp256k1::Error>>()
     }
+
+    pub fn precompute_tx_hashes(&self) {
+        self.transactions.par_iter().for_each(|tx| {
+            let _ = tx.hash();
+        });
+    }
+
+    pub fn recover_with_cached_senders(
+        &self,
+        cached_senders: Vec<Address>,
+    ) -> Result<Vec<Address>, secp256k1::Error> {
+        // Recovering addresses is computationally expensive.
+        // Computing them in parallel greatly reduces execution time.
+        cached_senders
+            .par_iter()
+            .zip(&self.transactions)
+            .map(|(sender, tx)| {
+                if sender.is_zero() {
+                    tx.sender()
+                } else {
+                    Ok(*sender)
+                }
+            })
+            .collect::<Result<Vec<Address>, secp256k1::Error>>()
+    }
 }
 
 pub fn compute_transactions_root(transactions: &[Transaction]) -> H256 {
diff --git a/crates/vm/backends/levm/mod.rs b/crates/vm/backends/levm/mod.rs
index 5a303f987e4..8d41193fffe 100644
--- a/crates/vm/backends/levm/mod.rs
+++ b/crates/vm/backends/levm/mod.rs
@@ -101,6 +101,7 @@ impl LEVM {
         vm_type: VMType,
         merkleizer: Sender<Vec<AccountUpdate>>,
         queue_length: &AtomicUsize,
+        block_senders: &[Address],
     ) -> Result<BlockExecutionResult, EvmError> {
         Self::prepare_block(block, db, vm_type)?;
 
@@ -113,9 +114,7 @@ impl LEVM {
         // The value itself can be safely changed.
         let mut tx_since_last_flush = 2;
 
-        for (tx, tx_sender) in block.body.get_transactions_with_sender().map_err(|error| {
-            EvmError::Transaction(format!("Couldn't recover addresses with error: {error}"))
-        })? {
+        for (tx, tx_sender) in block.body.transactions.iter().zip(block_senders) {
             if cumulative_gas_used + tx.gas_limit() > block.header.gas_limit {
                 return Err(EvmError::Transaction(format!(
                     "Gas allowance exceeded. Block gas limit {} can be surpassed by executing transaction with gas limit {}",
@@ -126,7 +125,7 @@ impl LEVM {
 
             let report = Self::execute_tx_in_block(
                 tx,
-                tx_sender,
+                *tx_sender,
                 &block.header,
                 db,
                 vm_type,
diff --git a/crates/vm/backends/mod.rs b/crates/vm/backends/mod.rs
index 8bbacc2aebd..23d7d984074 100644
--- a/crates/vm/backends/mod.rs
+++ b/crates/vm/backends/mod.rs
@@ -88,8 +88,16 @@ impl Evm {
         block: &Block,
         merkleizer: Sender<Vec<AccountUpdate>>,
         queue_length: &AtomicUsize,
+        block_senders: &[Address],
     ) -> Result<BlockExecutionResult, EvmError> {
-        LEVM::execute_block_pipeline(block, &mut self.db, self.vm_type, merkleizer, queue_length)
+        LEVM::execute_block_pipeline(
+            block,
+            &mut self.db,
+            self.vm_type,
+            merkleizer,
+            queue_length,
+            block_senders,
+        )
     }
 
     /// Wraps [LEVM::execute_tx].