diff --git a/keychain/src/keychain.rs b/keychain/src/keychain.rs
index aa50e8b09..aed65f23f 100644
--- a/keychain/src/keychain.rs
+++ b/keychain/src/keychain.rs
@@ -14,6 +14,7 @@
 
 use rand::{thread_rng, Rng};
 use std::collections::HashMap;
+use std::sync::{Arc, RwLock};
 
 use util::secp;
 use util::secp::{Message, Secp256k1, Signature};
@@ -49,6 +50,7 @@ pub struct Keychain {
 	secp: Secp256k1,
 	extkey: extkey::ExtendedKey,
 	key_overrides: HashMap<Identifier, SecretKey>,
+	key_derivation_cache: Arc<RwLock<HashMap<Identifier, u32>>>,
 }
 
 impl Keychain {
@@ -57,7 +59,6 @@ impl Keychain {
 	}
 
 	// For tests and burn only, associate a key identifier with a known secret key.
- //
 	pub fn burn_enabled(keychain: &Keychain, burn_key_id: &Identifier) -> Keychain {
 		let mut key_overrides = HashMap::new();
 		key_overrides.insert(
@@ -77,6 +78,7 @@ impl Keychain {
 			secp: secp,
 			extkey: extkey,
 			key_overrides: HashMap::new(),
+			key_derivation_cache: Arc::new(RwLock::new(HashMap::new())),
 		};
 		Ok(keychain)
 	}
@@ -94,35 +96,58 @@ impl Keychain {
 		Ok(key_id)
 	}
 
-	fn derived_key_search(&self, key_id: &Identifier, n_child: Option<u32>) -> Result<SecretKey, Error> {
+	fn derived_key(&self, key_id: &Identifier) -> Result<SecretKey, Error> {
+		trace!(LOGGER, "Derived Key by key_id: {}", key_id);
+
+		// first check our overrides and just return the key if we have one in there
 		if let Some(key) = self.key_overrides.get(key_id) {
+			trace!(LOGGER, "... Derived Key (using override) key_id: {}", key_id);
 			return Ok(*key);
 		}
 
-		trace!(LOGGER, "Derived Key key_id: {}", key_id);
-
-		if let Some(n) = n_child{
-			let extkey = self.extkey.derive(&self.secp, n)?;
-			return Ok(extkey.key);
-		};
-
-		for i in 1..10000 {
-			let extkey = self.extkey.derive(&self.secp, i)?;
-			if extkey.identifier(&self.secp)? == *key_id {
-				return Ok(extkey.key);
+		// then check the derivation cache to see if we have previously derived this key
+		// if so use the derivation from the cache to derive the key
+		{
+			let cache = self.key_derivation_cache.read().unwrap();
+			if let Some(derivation) = cache.get(key_id) {
+				trace!(LOGGER, "... Derived Key (cache hit) key_id: {}, derivation: {}", key_id, derivation);
+				return Ok(self.derived_key_from_index(*derivation)?)
 			}
 		}
+
+		// otherwise iterate over a large number of derivations looking for our key
+		// cache the resulting derivations by key_id for faster lookup later
+		// TODO - remove the 10k hard limit and be smarter about batching somehow
+		{
+			let mut cache = self.key_derivation_cache.write().unwrap();
+			for i in 1..10_000 {
+				let extkey = self.extkey.derive(&self.secp, i)?;
+				let extkey_id = extkey.identifier(&self.secp)?;
+
+				if !cache.contains_key(&extkey_id) {
+					trace!(LOGGER, "... Derived Key (cache miss) key_id: {}, derivation: {}", extkey_id, extkey.n_child);
+					cache.insert(extkey_id.clone(), extkey.n_child);
+				}
+
+				if extkey_id == *key_id {
+					return Ok(extkey.key);
+				}
+			}
+		}
+
 		Err(Error::KeyDerivation(
 			format!("cannot find extkey for {:?}", key_id),
 		))
 	}
 
-	fn derived_key(&self, key_id: &Identifier) -> Result<SecretKey, Error> {
-		self.derived_key_search(key_id, None)
-	}
-
-	fn derived_key_from_index(&self, key_id: &Identifier, n_child:u32) -> Result<SecretKey, Error> {
-		self.derived_key_search(key_id, Some(n_child))
+	// if we know the derivation index we can just straight to deriving the key
+	fn derived_key_from_index(
+		&self,
+		derivation: u32,
+	) -> Result<SecretKey, Error> {
+		trace!(LOGGER, "Derived Key (fast) by derivation: {}", derivation);
+		let extkey = self.extkey.derive(&self.secp, derivation)?;
+		return Ok(extkey.key)
 	}
 
 	pub fn commit(&self, amount: u64, key_id: &Identifier) -> Result<Commitment, Error> {
@@ -131,8 +156,12 @@ impl Keychain {
 		Ok(commit)
 	}
 
-	pub fn commit_with_key_index(&self, amount: u64, key_id: &Identifier, n_child: u32) -> Result<Commitment, Error> {
-		let skey = self.derived_key_from_index(key_id, n_child)?;
+	pub fn commit_with_key_index(
+		&self,
+		amount: u64,
+		derivation: u32,
+	) -> Result<Commitment, Error> {
+		let skey = self.derived_key_from_index(derivation)?;
 		let commit = self.secp.commit(amount, skey)?;
 		Ok(commit)
 	}
diff --git a/wallet/src/checker.rs b/wallet/src/checker.rs
index bbbfecab1..9aeac1002 100644
--- a/wallet/src/checker.rs
+++ b/wallet/src/checker.rs
@@ -58,7 +58,7 @@ pub fn refresh_outputs(config: &WalletConfig, keychain: &Keychain) -> Result<(),
 	let mut commits: Vec<pedersen::Commitment> = vec![];
 
 	// build a local map of wallet outputs by commits
- // and a list of outputs we wantot query the node for
+	// and a list of outputs we want to query the node for
 	let _ = WalletData::read_wallet(&config.data_file_dir, |wallet_data| {
 		for out in wallet_data
 			.outputs
@@ -66,8 +66,7 @@ pub fn refresh_outputs(config: &WalletConfig, keychain: &Keychain) -> Result<(),
 			.filter(|out| out.root_key_id == keychain.root_key_id())
 			.filter(|out| out.status != OutputStatus::Spent)
 		{
-			let key_id = keychain.derive_key_id(out.n_child).unwrap();
-			let commit = keychain.commit_with_key_index(out.value, &key_id, out.n_child).unwrap();
+			let commit = keychain.commit_with_key_index(out.value, out.n_child).unwrap();
 			commits.push(commit);
 			wallet_outputs.insert(commit, out.key_id.clone());
 		}