diff --git a/src/bin/grin.rs b/src/bin/grin.rs
index c1871f942..2c3d1a7a8 100644
--- a/src/bin/grin.rs
+++ b/src/bin/grin.rs
@@ -292,7 +292,20 @@ fn main() {
 			.about("raw wallet output info (list of outputs)"))
 
 		.subcommand(SubCommand::with_name("txs")
-			.about("display list of transactions"))
+			.about("Display transaction information")
+			.arg(Arg::with_name("id")
+				.help("If specified, display transaction with given ID and all associated Inputs/Outputs")
+				.short("i")
+				.long("id")
+				.takes_value(true)))
+
+		.subcommand(SubCommand::with_name("cancel")
+			.about("Cancels an previously created transaction, freeing previously locked outputs for use again")
+			.arg(Arg::with_name("id")
+				.help("The ID of the transaction to cancel")
+				.short("i")
+				.long("id")
+				.takes_value(true)))
 
 		.subcommand(SubCommand::with_name("info")
 			.about("basic wallet contents summary"))
@@ -754,7 +767,7 @@ fn wallet_command(wallet_args: &ArgMatches, global_config: GlobalConfig) {
 			}
 			("outputs", Some(_)) => {
 				let (height, _) = api.node_height()?;
-				let (validated, outputs) = api.retrieve_outputs(show_spent, true)?;
+				let (validated, outputs) = api.retrieve_outputs(show_spent, true, None)?;
 				let _res =
 					wallet::display::outputs(height, validated, outputs).unwrap_or_else(|e| {
 						panic!(
@@ -764,17 +777,55 @@ fn wallet_command(wallet_args: &ArgMatches, global_config: GlobalConfig) {
 					});
 				Ok(())
 			}
-			("txs", Some(_)) => {
+			("txs", Some(txs_args)) => {
+				let tx_id = match txs_args.value_of("id") {
+					None => None,
+					Some(tx) => match tx.parse() {
+						Ok(t) => Some(t),
+						Err(_) => panic!("Unable to parse argument 'id' as a number"),
+					},
+				};
 				let (height, _) = api.node_height()?;
-				let (validated, txs) = api.retrieve_txs(true)?;
-				let _res = wallet::display::txs(height, validated, txs).unwrap_or_else(|e| {
-					panic!(
-						"Error getting wallet outputs: {:?} Config: {:?}",
-						e, wallet_config
-					)
-				});
+				let (validated, txs) = api.retrieve_txs(true, tx_id)?;
+				let include_status = !tx_id.is_some();
+				let _res = wallet::display::txs(height, validated, txs, include_status)
+					.unwrap_or_else(|e| {
+						panic!(
+							"Error getting wallet outputs: {} Config: {:?}",
+							e, wallet_config
+						)
+					});
+				// if given a particular transaction id, also get and display associated
+				// inputs/outputs
+				if tx_id.is_some() {
+					let (_, outputs) = api.retrieve_outputs(true, false, tx_id)?;
+					let _res =
+						wallet::display::outputs(height, validated, outputs).unwrap_or_else(|e| {
+							panic!(
+								"Error getting wallet outputs: {} Config: {:?}",
+								e, wallet_config
+							)
+						});
+				};
 				Ok(())
 			}
+			("cancel", Some(tx_args)) => {
+				let tx_id = tx_args
+					.value_of("id")
+					.expect("'id' argument (-i) is required.");
+				let tx_id = tx_id.parse().expect("Could not parse id parameter.");
+				let result = api.cancel_tx(tx_id);
+				match result {
+					Ok(_) => {
+						info!(LOGGER, "Transaction {} Cancelled", tx_id);
+						Ok(())
+					}
+					Err(e) => {
+						error!(LOGGER, "TX Cancellation failed: {}", e);
+						Err(e)
+					}
+				}
+			}
 			("restore", Some(_)) => {
 				let result = api.restore();
 				match result {
diff --git a/wallet/src/display.rs b/wallet/src/display.rs
index cc7d58202..44300e8de 100644
--- a/wallet/src/display.rs
+++ b/wallet/src/display.rs
@@ -83,7 +83,12 @@ pub fn outputs(cur_height: u64, validated: bool, outputs: Vec<OutputData>) -> Re
 }
 
 /// Display transaction log in a pretty way
-pub fn txs(cur_height: u64, validated: bool, txs: Vec<TxLogEntry>) -> Result<(), Error> {
+pub fn txs(
+	cur_height: u64,
+	validated: bool,
+	txs: Vec<TxLogEntry>,
+	include_status: bool,
+) -> Result<(), Error> {
 	let title = format!("Transaction Log - Block Height: {}", cur_height);
 	println!();
 	let mut t = term::stdout().unwrap();
@@ -104,6 +109,8 @@ pub fn txs(cur_height: u64, validated: bool, txs: Vec<TxLogEntry>) -> Result<(),
 		bMG->"Num. Outputs",
 		bMG->"Amount Credited",
 		bMG->"Amount Debited",
+		bMG->"Fee",
+		bMG->"Net Difference",
 	]);
 
 	for t in txs {
@@ -119,10 +126,22 @@ pub fn txs(cur_height: u64, validated: bool, txs: Vec<TxLogEntry>) -> Result<(),
 			None => "None".to_owned(),
 		};
 		let confirmed = format!("{}", t.confirmed);
-		let amount_credited = format!("{}", t.amount_credited);
 		let num_inputs = format!("{}", t.num_inputs);
 		let num_outputs = format!("{}", t.num_outputs);
-		let amount_debited = format!("{}", t.amount_debited);
+		let amount_debited_str = core::amount_to_hr_string(t.amount_debited);
+		let amount_credited_str = core::amount_to_hr_string(t.amount_credited);
+		let fee = match t.fee {
+			Some(f) => format!("{}", core::amount_to_hr_string(f)),
+			None => "None".to_owned(),
+		};
+		let net_diff = if t.amount_credited >= t.amount_debited {
+			core::amount_to_hr_string(t.amount_credited - t.amount_debited)
+		} else {
+			format!(
+				"-{}",
+				core::amount_to_hr_string(t.amount_debited - t.amount_credited)
+			)
+		};
 		table.add_row(row![
 			bFC->id,
 			bFC->entry_type,
@@ -132,8 +151,10 @@ pub fn txs(cur_height: u64, validated: bool, txs: Vec<TxLogEntry>) -> Result<(),
 			bFB->confirmation_ts,
 			bFC->num_inputs,
 			bFC->num_outputs,
-			bFG->amount_credited,
-			bFR->amount_debited,
+			bFG->amount_credited_str,
+			bFR->amount_debited_str,
+			bFR->fee,
+			bFY->net_diff,
 		]);
 	}
 
@@ -141,7 +162,7 @@ pub fn txs(cur_height: u64, validated: bool, txs: Vec<TxLogEntry>) -> Result<(),
 	table.printstd();
 	println!();
 
-	if !validated {
+	if !validated && include_status {
 		println!(
 			"\nWARNING: Wallet failed to verify data. \
 			 The above is from local cache and possibly invalid! \
diff --git a/wallet/src/libwallet/api.rs b/wallet/src/libwallet/api.rs
index 28a2b19cc..b714b5c3b 100644
--- a/wallet/src/libwallet/api.rs
+++ b/wallet/src/libwallet/api.rs
@@ -27,7 +27,7 @@ use libwallet::internal::{tx, updater};
 use libwallet::types::{
 	BlockFees, CbData, OutputData, TxLogEntry, TxWrapper, WalletBackend, WalletClient, WalletInfo,
 };
-use libwallet::Error;
+use libwallet::{Error, ErrorKind};
 use util::{self, LOGGER};
 
 /// Wrapper around internal API functions, containing a reference to
@@ -62,10 +62,12 @@ where
 
 	/// Attempt to update and retrieve outputs
 	/// Return (whether the outputs were validated against a node, OutputData)
+	/// if tx_id is some then only retrieve outputs for associated transaction
 	pub fn retrieve_outputs(
 		&self,
 		include_spent: bool,
 		refresh_from_node: bool,
+		tx_id: Option<u32>,
 	) -> Result<(bool, Vec<OutputData>), Error> {
 		let mut w = self.wallet.lock().unwrap();
 		w.open_with_credentials()?;
@@ -77,7 +79,7 @@ where
 
 		let res = Ok((
 			validated,
-			updater::retrieve_outputs(&mut **w, include_spent)?,
+			updater::retrieve_outputs(&mut **w, include_spent, tx_id)?,
 		));
 
 		w.close()?;
@@ -86,7 +88,11 @@ where
 
 	/// Attempt to update outputs and retrieve tranasactions
 	/// Return (whether the outputs were validated against a node, OutputData)
-	pub fn retrieve_txs(&self, refresh_from_node: bool) -> Result<(bool, Vec<TxLogEntry>), Error> {
+	pub fn retrieve_txs(
+		&self,
+		refresh_from_node: bool,
+		tx_id: Option<u32>,
+	) -> Result<(bool, Vec<TxLogEntry>), Error> {
 		let mut w = self.wallet.lock().unwrap();
 		w.open_with_credentials()?;
 
@@ -95,7 +101,7 @@ where
 			validated = self.update_outputs(&mut w);
 		}
 
-		let res = Ok((validated, updater::retrieve_txs(&mut **w)?));
+		let res = Ok((validated, updater::retrieve_txs(&mut **w, tx_id)?));
 
 		w.close()?;
 		res
@@ -167,6 +173,24 @@ where
 		Ok(slate_out)
 	}
 
+	/// Roll back a transaction and all associated outputs with a given
+	/// transaction id This means delete all change outputs, (or recipient
+	/// output if you're recipient), and unlock all locked outputs associated
+	/// with the transaction used when a transaction is created but never
+	/// posted
+	pub fn cancel_tx(&mut self, tx_id: u32) -> Result<(), Error> {
+		let mut w = self.wallet.lock().unwrap();
+		w.open_with_credentials()?;
+		if !self.update_outputs(&mut w) {
+			return Err(ErrorKind::TransactionCancellationError(
+				"Can't contact running Grin node. Not Cancelling.",
+			))?;
+		}
+		tx::cancel_tx(&mut **w, tx_id)?;
+		w.close()?;
+		Ok(())
+	}
+
 	/// Issue a burn TX
 	pub fn issue_burn_tx(
 		&mut self,
@@ -217,7 +241,7 @@ where
 				Ok((height, true))
 			}
 			Err(_) => {
-				let outputs = self.retrieve_outputs(true, false)?;
+				let outputs = self.retrieve_outputs(true, false, None)?;
 				let height = match outputs.1.iter().map(|out| out.height).max() {
 					Some(height) => height,
 					None => 0,
diff --git a/wallet/src/libwallet/controller.rs b/wallet/src/libwallet/controller.rs
index 6c8b6a732..5328ca3df 100644
--- a/wallet/src/libwallet/controller.rs
+++ b/wallet/src/libwallet/controller.rs
@@ -163,7 +163,7 @@ where
 				update_from_node = true;
 			}
 		}
-		api.retrieve_outputs(false, update_from_node)
+		api.retrieve_outputs(false, update_from_node, None)
 	}
 
 	fn retrieve_summary_info(
diff --git a/wallet/src/libwallet/error.rs b/wallet/src/libwallet/error.rs
index 4309da538..3c9efc205 100644
--- a/wallet/src/libwallet/error.rs
+++ b/wallet/src/libwallet/error.rs
@@ -132,6 +132,18 @@ pub enum ErrorKind {
 	#[fail(display = "Wallet seed doesn't exist error")]
 	WalletSeedDoesntExist,
 
+	/// Transaction doesn't exist
+	#[fail(display = "Transaction {} doesn't exist", _0)]
+	TransactionDoesntExist(u32),
+
+	/// Transaction already rolled back
+	#[fail(display = "Transaction {} cannot be cancelled", _0)]
+	TransactionNotCancellable(u32),
+
+	/// Cancellation error
+	#[fail(display = "Cancellation Error: {}", _0)]
+	TransactionCancellationError(&'static str),
+
 	/// Other
 	#[fail(display = "Generic error: {}", _0)]
 	GenericError(String),
diff --git a/wallet/src/libwallet/internal/selection.rs b/wallet/src/libwallet/internal/selection.rs
index 4122a8d5e..701622688 100644
--- a/wallet/src/libwallet/internal/selection.rs
+++ b/wallet/src/libwallet/internal/selection.rs
@@ -99,6 +99,7 @@ where
 		let log_id = batch.next_tx_log_id(root_key_id.clone())?;
 		let mut t = TxLogEntry::new(TxLogEntryType::TxSent, log_id);
 		t.tx_slate_id = Some(slate_id);
+		t.fee = Some(fee);
 		let mut amount_debited = 0;
 		t.num_inputs = lock_inputs.len();
 		for id in lock_inputs {
diff --git a/wallet/src/libwallet/internal/tx.rs b/wallet/src/libwallet/internal/tx.rs
index bdf1917c9..0a78f7f6e 100644
--- a/wallet/src/libwallet/internal/tx.rs
+++ b/wallet/src/libwallet/internal/tx.rs
@@ -19,7 +19,7 @@ use keychain::{Identifier, Keychain};
 use libtx::slate::Slate;
 use libtx::{build, tx_fee};
 use libwallet::internal::{selection, sigcontext, updater};
-use libwallet::types::{WalletBackend, WalletClient};
+use libwallet::types::{TxLogEntryType, WalletBackend, WalletClient};
 use libwallet::{Error, ErrorKind};
 use util::LOGGER;
 
@@ -131,6 +131,30 @@ where
 	Ok(())
 }
 
+/// Rollback outputs associated with a transaction in the wallet
+pub fn cancel_tx<T: ?Sized, C, K>(wallet: &mut T, tx_id: u32) -> Result<(), Error>
+where
+	T: WalletBackend<C, K>,
+	C: WalletClient,
+	K: Keychain,
+{
+	let tx_vec = updater::retrieve_txs(wallet, Some(tx_id))?;
+	if tx_vec.len() != 1 {
+		return Err(ErrorKind::TransactionDoesntExist(tx_id))?;
+	}
+	let tx = tx_vec[0].clone();
+	if tx.tx_type != TxLogEntryType::TxSent && tx.tx_type != TxLogEntryType::TxReceived {
+		return Err(ErrorKind::TransactionNotCancellable(tx_id))?;
+	}
+	if tx.confirmed == true {
+		return Err(ErrorKind::TransactionNotCancellable(tx_id))?;
+	}
+	// get outputs associated with tx
+	let outputs = updater::retrieve_outputs(wallet, false, Some(tx_id))?;
+	updater::cancel_tx_and_outputs(wallet, tx, outputs)?;
+	Ok(())
+}
+
 /// Issue a burn tx
 pub fn issue_burn_tx<T: ?Sized, C, K>(
 	wallet: &mut T,
diff --git a/wallet/src/libwallet/internal/updater.rs b/wallet/src/libwallet/internal/updater.rs
index b76eb1fcb..d8483e2d6 100644
--- a/wallet/src/libwallet/internal/updater.rs
+++ b/wallet/src/libwallet/internal/updater.rs
@@ -37,6 +37,7 @@ use util::{self, LOGGER};
 pub fn retrieve_outputs<T: ?Sized, C, K>(
 	wallet: &mut T,
 	show_spent: bool,
+	tx_id: Option<u32>,
 ) -> Result<Vec<OutputData>, Error>
 where
 	T: WalletBackend<C, K>,
@@ -56,19 +57,38 @@ where
 			}
 		})
 		.collect::<Vec<_>>();
+	// only include outputs with a given tx_id if provided
+	if let Some(id) = tx_id {
+		outputs = outputs
+			.into_iter()
+			.filter(|out| out.tx_log_entry == Some(id))
+			.collect::<Vec<_>>();
+	}
 	outputs.sort_by_key(|out| out.n_child);
 	Ok(outputs)
 }
 
-/// Retrieve all of the transaction entries
-pub fn retrieve_txs<T: ?Sized, C, K>(wallet: &mut T) -> Result<Vec<TxLogEntry>, Error>
+/// Retrieve all of the transaction entries, or a particular entry
+pub fn retrieve_txs<T: ?Sized, C, K>(
+	wallet: &mut T,
+	tx_id: Option<u32>,
+) -> Result<Vec<TxLogEntry>, Error>
 where
 	T: WalletBackend<C, K>,
 	C: WalletClient,
 	K: Keychain,
 {
 	// just read the wallet here, no need for a write lock
-	let mut txs = wallet.tx_log_iter().collect::<Vec<_>>();
+	let mut txs = if let Some(id) = tx_id {
+		let tx = wallet.tx_log_iter().find(|t| t.id == id);
+		if let Some(t) = tx {
+			vec![t]
+		} else {
+			vec![]
+		}
+	} else {
+		wallet.tx_log_iter().collect::<Vec<_>>()
+	};
 	txs.sort_by_key(|tx| tx.creation_ts);
 	Ok(txs)
 }
@@ -108,6 +128,40 @@ where
 	Ok(wallet_outputs)
 }
 
+/// Cancel transaction and associated outputs
+pub fn cancel_tx_and_outputs<T: ?Sized, C, K>(
+	wallet: &mut T,
+	tx: TxLogEntry,
+	outputs: Vec<OutputData>,
+) -> Result<(), libwallet::Error>
+where
+	T: WalletBackend<C, K>,
+	C: WalletClient,
+	K: Keychain,
+{
+	let mut batch = wallet.batch()?;
+	for mut o in outputs {
+		// unlock locked outputs
+		if o.status == OutputStatus::Unconfirmed {
+			batch.delete(&o.key_id)?;
+		}
+		if o.status == OutputStatus::Locked {
+			o.status = OutputStatus::Unconfirmed;
+			batch.save(o)?;
+		}
+	}
+	let mut tx = tx.clone();
+	if tx.tx_type == TxLogEntryType::TxSent {
+		tx.tx_type = TxLogEntryType::TxSentCancelled;
+	}
+	if tx.tx_type == TxLogEntryType::TxReceived {
+		tx.tx_type = TxLogEntryType::TxReceivedCancelled;
+	}
+	batch.save_tx_log_entry(tx)?;
+	batch.commit()?;
+	Ok(())
+}
+
 /// Apply refreshed API output data to the wallet
 pub fn apply_api_outputs<T: ?Sized, C, K>(
 	wallet: &mut T,
diff --git a/wallet/src/libwallet/types.rs b/wallet/src/libwallet/types.rs
index 6d081f34a..ef76e956a 100644
--- a/wallet/src/libwallet/types.rs
+++ b/wallet/src/libwallet/types.rs
@@ -431,7 +431,7 @@ impl Default for WalletDetails {
 }
 
 /// Types of transactions that can be contained within a TXLog entry
-#[derive(Serialize, Deserialize, Debug, Clone)]
+#[derive(Serialize, Deserialize, Debug, Clone, Eq, PartialEq)]
 pub enum TxLogEntryType {
 	/// A coinbase transaction becomes confirmed
 	ConfirmedCoinbase,
@@ -439,6 +439,10 @@ pub enum TxLogEntryType {
 	TxReceived,
 	/// Inputs locked + change outputs when a transaction is created
 	TxSent,
+	/// Received transaction that was rolled back by user
+	TxReceivedCancelled,
+	/// Sent transaction that was rolled back by user
+	TxSentCancelled,
 }
 
 impl fmt::Display for TxLogEntryType {
@@ -447,6 +451,8 @@ impl fmt::Display for TxLogEntryType {
 			TxLogEntryType::ConfirmedCoinbase => write!(f, "Confirmed Coinbase"),
 			TxLogEntryType::TxReceived => write!(f, "Recieved Tx"),
 			TxLogEntryType::TxSent => write!(f, "Sent Tx"),
+			TxLogEntryType::TxReceivedCancelled => write!(f, "Received Tx - Cancelled"),
+			TxLogEntryType::TxSentCancelled => write!(f, "Send Tx - Cancelled"),
 		}
 	}
 }
@@ -480,6 +486,8 @@ pub struct TxLogEntry {
 	pub amount_credited: u64,
 	/// Amount debited via this transaction
 	pub amount_debited: u64,
+	/// Fee
+	pub fee: Option<u64>,
 }
 
 impl ser::Writeable for TxLogEntry {
@@ -509,6 +517,7 @@ impl TxLogEntry {
 			amount_debited: 0,
 			num_inputs: 0,
 			num_outputs: 0,
+			fee: None,
 		}
 	}
 
diff --git a/wallet/tests/common/testclient.rs b/wallet/tests/common/testclient.rs
index f63b5e632..b52c35c3e 100644
--- a/wallet/tests/common/testclient.rs
+++ b/wallet/tests/common/testclient.rs
@@ -238,7 +238,11 @@ where
 		//let mut api_outputs: HashMap<pedersen::Commitment, String> = HashMap::new();
 		let mut outputs: Vec<api::Output> = vec![];
 		for o in split {
-			let c = util::from_hex(String::from(o)).unwrap();
+			let o_str = String::from(o);
+			if o_str.len() == 0 {
+				continue;
+			}
+			let c = util::from_hex(o_str).unwrap();
 			let commit = Commitment::from_vec(c);
 			let out = common::get_output_local(&self.chain.clone(), &commit);
 			if let Some(o) = out {
diff --git a/wallet/tests/transaction.rs b/wallet/tests/transaction.rs
index ec875a5e8..4be68e6d8 100644
--- a/wallet/tests/transaction.rs
+++ b/wallet/tests/transaction.rs
@@ -38,6 +38,7 @@ use keychain::ExtKeychain;
 use util::LOGGER;
 use wallet::libtx::slate::Slate;
 use wallet::libwallet;
+use wallet::libwallet::types::OutputStatus;
 
 fn clean_output_dir(test_dir: &str) {
 	let _ = fs::remove_dir_all(test_dir);
@@ -130,7 +131,7 @@ fn basic_transaction_api(
 	// Check transaction log for wallet 1
 	wallet::controller::owner_single_use(wallet1.clone(), |api| {
 		let (_, wallet1_info) = api.retrieve_summary_info(true)?;
-		let (refreshed, txs) = api.retrieve_txs(true)?;
+		let (refreshed, txs) = api.retrieve_txs(true, None)?;
 		assert!(refreshed);
 		let fee = wallet::libtx::tx_fee(
 			wallet1_info.last_confirmed_height as usize - cm as usize,
@@ -144,12 +145,13 @@ fn basic_transaction_api(
 		assert!(!tx.confirmed);
 		assert!(tx.confirmation_ts.is_none());
 		assert_eq!(tx.amount_debited - tx.amount_credited, fee + amount);
+		assert_eq!(Some(fee), tx.fee);
 		Ok(())
 	})?;
 
 	// Check transaction log for wallet 2
 	wallet::controller::owner_single_use(wallet2.clone(), |api| {
-		let (refreshed, txs) = api.retrieve_txs(true)?;
+		let (refreshed, txs) = api.retrieve_txs(true, None)?;
 		assert!(refreshed);
 		// we should have a transaction entry for this slate
 		let tx = txs.iter().find(|t| t.tx_slate_id == Some(slate.id));
@@ -159,6 +161,7 @@ fn basic_transaction_api(
 		assert!(tx.confirmation_ts.is_none());
 		assert_eq!(amount, tx.amount_credited);
 		assert_eq!(0, tx.amount_debited);
+		assert_eq!(None, tx.fee);
 		Ok(())
 	})?;
 
@@ -195,7 +198,7 @@ fn basic_transaction_api(
 		assert_eq!(wallet1_info.amount_immature, cm * reward + fee);
 
 		// check tx log entry is confirmed
-		let (refreshed, txs) = api.retrieve_txs(true)?;
+		let (refreshed, txs) = api.retrieve_txs(true, None)?;
 		assert!(refreshed);
 		let tx = txs.iter().find(|t| t.tx_slate_id == Some(slate.id));
 		assert!(tx.is_some());
@@ -231,7 +234,7 @@ fn basic_transaction_api(
 		assert_eq!(wallet2_info.amount_currently_spendable, amount);
 
 		// check tx log entry is confirmed
-		let (refreshed, txs) = api.retrieve_txs(true)?;
+		let (refreshed, txs) = api.retrieve_txs(true, None)?;
 		assert!(refreshed);
 		let tx = txs.iter().find(|t| t.tx_slate_id == Some(slate.id));
 		assert!(tx.is_some());
@@ -246,6 +249,161 @@ fn basic_transaction_api(
 	Ok(())
 }
 
+/// Test rolling back transactions and outputs when a transaction is never
+/// posted to a chain
+fn tx_rollback(test_dir: &str, backend_type: common::BackendType) -> Result<(), libwallet::Error> {
+	setup(test_dir);
+	// Create a new proxy to simulate server and wallet responses
+	let mut wallet_proxy: WalletProxy<LocalWalletClient, ExtKeychain> = WalletProxy::new(test_dir);
+	let chain = wallet_proxy.chain.clone();
+
+	// Create a new wallet test client, and set its queues to communicate with the
+	// proxy
+	let client = LocalWalletClient::new("wallet1", wallet_proxy.tx.clone());
+	let wallet1 = common::create_wallet(
+		&format!("{}/wallet1", test_dir),
+		client.clone(),
+		backend_type.clone(),
+	);
+	wallet_proxy.add_wallet("wallet1", client.get_send_instance(), wallet1.clone());
+
+	// define recipient wallet, add to proxy
+	let client = LocalWalletClient::new("wallet2", wallet_proxy.tx.clone());
+	let wallet2 = common::create_wallet(
+		&format!("{}/wallet2", test_dir),
+		client.clone(),
+		backend_type.clone(),
+	);
+	wallet_proxy.add_wallet("wallet2", client.get_send_instance(), wallet2.clone());
+
+	// Set the wallet proxy listener running
+	thread::spawn(move || {
+		if let Err(e) = wallet_proxy.run() {
+			error!(LOGGER, "Wallet Proxy error: {}", e);
+		}
+	});
+
+	// few values to keep things shorter
+	let reward = core::consensus::REWARD;
+	let cm = global::coinbase_maturity();
+	// mine a few blocks
+	let _ = common::award_blocks_to_wallet(&chain, wallet1.clone(), 5);
+
+	let amount = 30_000_000_000;
+	let mut slate = Slate::blank(1);
+	wallet::controller::owner_single_use(wallet1.clone(), |sender_api| {
+		// note this will increment the block count as part of the transaction "Posting"
+		slate = sender_api.issue_send_tx(
+			amount,    // amount
+			2,         // minimum confirmations
+			"wallet2", // dest
+			500,       // max outputs
+			true,      // select all outputs
+		)?;
+		Ok(())
+	})?;
+
+	// Check transaction log for wallet 1
+	wallet::controller::owner_single_use(wallet1.clone(), |api| {
+		let (refreshed, _wallet1_info) = api.retrieve_summary_info(true)?;
+		assert!(refreshed);
+		let (_, txs) = api.retrieve_txs(true, None)?;
+		// we should have a transaction entry for this slate
+		let tx = txs.iter().find(|t| t.tx_slate_id == Some(slate.id));
+		assert!(tx.is_some());
+		let mut locked_count = 0;
+		let mut unconfirmed_count = 0;
+		// get the tx entry, check outputs are as expected
+		let (_, outputs) = api.retrieve_outputs(true, false, Some(tx.unwrap().id))?;
+		for o in outputs.clone() {
+			if o.status == OutputStatus::Locked {
+				locked_count = locked_count + 1;
+			}
+			if o.status == OutputStatus::Unconfirmed {
+				unconfirmed_count = unconfirmed_count + 1;
+			}
+		}
+		assert_eq!(outputs.len(), 3);
+		assert_eq!(locked_count, 2);
+		assert_eq!(unconfirmed_count, 1);
+
+		Ok(())
+	})?;
+
+	// Check transaction log for wallet 2
+	wallet::controller::owner_single_use(wallet2.clone(), |api| {
+		let (refreshed, txs) = api.retrieve_txs(true, None)?;
+		assert!(refreshed);
+		let mut unconfirmed_count = 0;
+		let tx = txs.iter().find(|t| t.tx_slate_id == Some(slate.id));
+		assert!(tx.is_some());
+		// get the tx entry, check outputs are as expected
+		let (_, outputs) = api.retrieve_outputs(true, false, Some(tx.unwrap().id))?;
+		for o in outputs.clone() {
+			if o.status == OutputStatus::Unconfirmed {
+				unconfirmed_count = unconfirmed_count + 1;
+			}
+		}
+		assert_eq!(outputs.len(), 1);
+		assert_eq!(unconfirmed_count, 1);
+		let (refreshed, wallet2_info) = api.retrieve_summary_info(true)?;
+		assert!(refreshed);
+		assert_eq!(wallet2_info.amount_currently_spendable, 0,);
+		assert_eq!(wallet2_info.total, amount);
+		Ok(())
+	})?;
+
+	// wallet 1 is bold and doesn't ever post the transaction mine a few more blocks
+	let _ = common::award_blocks_to_wallet(&chain, wallet1.clone(), 5);
+
+	// Wallet 1 decides to roll back instead
+	wallet::controller::owner_single_use(wallet1.clone(), |api| {
+		// can't roll back coinbase
+		let res = api.cancel_tx(1);
+		assert!(res.is_err());
+		let (_, txs) = api.retrieve_txs(true, None)?;
+		let tx = txs.iter()
+			.find(|t| t.tx_slate_id == Some(slate.id))
+			.unwrap();
+		api.cancel_tx(tx.id)?;
+		let (refreshed, wallet1_info) = api.retrieve_summary_info(true)?;
+		assert!(refreshed);
+		// check all eligible inputs should be now be spendable
+		assert_eq!(
+			wallet1_info.amount_currently_spendable,
+			(wallet1_info.last_confirmed_height - cm) * reward
+		);
+		// can't roll back again
+		let res = api.cancel_tx(tx.id);
+		assert!(res.is_err());
+
+		Ok(())
+	})?;
+
+	// Wallet 2 rolls back
+	wallet::controller::owner_single_use(wallet2.clone(), |api| {
+		let (_, txs) = api.retrieve_txs(true, None)?;
+		let tx = txs.iter()
+			.find(|t| t.tx_slate_id == Some(slate.id))
+			.unwrap();
+		api.cancel_tx(tx.id)?;
+		let (refreshed, wallet2_info) = api.retrieve_summary_info(true)?;
+		assert!(refreshed);
+		// check all eligible inputs should be now be spendable
+		assert_eq!(wallet2_info.amount_currently_spendable, 0,);
+		assert_eq!(wallet2_info.total, 0,);
+		// can't roll back again
+		let res = api.cancel_tx(tx.id);
+		assert!(res.is_err());
+
+		Ok(())
+	})?;
+
+	// let logging finish
+	thread::sleep(Duration::from_millis(200));
+	Ok(())
+}
+
 #[ignore]
 #[test]
 fn file_wallet_basic_transaction_api() {
@@ -260,3 +418,11 @@ fn db_wallet_basic_transaction_api() {
 		println!("Libwallet Error: {}", e);
 	}
 }
+
+#[test]
+fn db_wallet_tx_rollback() {
+	let test_dir = "test_output/tx_rollback_db";
+	if let Err(e) = tx_rollback(test_dir, common::BackendType::LMDBBackend) {
+		println!("Libwallet Error: {}", e);
+	}
+}