diff --git a/api/handler/default.go b/api/handler/default.go
index f31cb643e..740e8a28b 100644
--- a/api/handler/default.go
+++ b/api/handler/default.go
@@ -10,6 +10,7 @@ import (
 	"log/slog"
 	"net/http"
 	"net/url"
+	"strconv"
 	"time"
 
 	"github.com/bitcoin-sv/arc/api"
@@ -458,6 +459,13 @@ func (m ArcDefaultHandler) processTransaction(ctx context.Context, transaction *
 		validateSpan.Finish()
 	}
 
+	err := m.TransactionHandler.Health(tracingCtx)
+	if err != nil {
+		statusCode, arcError := m.handleError(tracingCtx, transaction, err)
+		m.logger.Error("metamorph not healthy")
+		return statusCode, arcError, err
+	}
+
 	tx, err := m.TransactionHandler.SubmitTransaction(tracingCtx, transaction.Bytes(), transactionOptions)
 	if err != nil {
 		statusCode, arcError := m.handleError(tracingCtx, transaction, err)
@@ -493,6 +501,15 @@ func (m ArcDefaultHandler) processTransactions(ctx context.Context, transactions
 	span, tracingCtx := opentracing.StartSpanFromContext(ctx, "ArcDefaultHandler:processTransactions")
 	defer span.Finish()
 
+	err := m.TransactionHandler.Health(tracingCtx)
+	if err != nil {
+		statusCode, arcError := m.handleError(tracingCtx, nil, err)
+		m.logger.Error("metamorph not healthy")
+		return statusCode, []interface{}{arcError}, err
+	}
+
+	m.logger.Info("Starting to process ", strconv.Itoa(len(transactions)), " transactions")
+
 	// validate before submitting array of transactions to metamorph
 	transactionsInput := make([][]byte, 0, len(transactions))
 	txErrors := make([]interface{}, 0, len(transactions))
diff --git a/api/handler/default_test.go b/api/handler/default_test.go
index cdc6d0ce8..f05dcee45 100644
--- a/api/handler/default_test.go
+++ b/api/handler/default_test.go
@@ -376,6 +376,10 @@ func TestPOSTTransaction(t *testing.T) { //nolint:funlen
 			rec, ctx := createEchoPostRequest(inputTx, tc.contentType, "/v1/tx")
 
 			txHandler := &mock.TransactionHandlerMock{
+				HealthFunc: func(ctx context.Context) error {
+					return nil
+				},
+
 				GetTransactionFunc: func(ctx context.Context, txID string) ([]byte, error) {
 					return tc.getTx, nil
 				},
@@ -517,6 +521,10 @@ func TestPOSTTransactions(t *testing.T) { //nolint:funlen
 			GetTransactionFunc: func(ctx context.Context, txID string) ([]byte, error) {
 				return nil, metamorph.ErrTransactionNotFound
 			},
+
+			HealthFunc: func(ctx context.Context) error {
+				return nil
+			},
 		}
 		defaultHandler, err := NewDefault(testLogger, txHandler, defaultPolicy)
 		require.NoError(t, err)
@@ -557,6 +565,10 @@ func TestPOSTTransactions(t *testing.T) { //nolint:funlen
 				txStatuses := []*metamorph.TransactionStatus{txResult}
 				return txStatuses, nil
 			},
+
+			HealthFunc: func(ctx context.Context) error {
+				return nil
+			},
 		}
 
 		defaultHandler, err := NewDefault(testLogger, txHandler, defaultPolicy)
diff --git a/metamorph/callbacker.go b/metamorph/callbacker.go
index ab0ec661c..9c3688f53 100644
--- a/metamorph/callbacker.go
+++ b/metamorph/callbacker.go
@@ -38,7 +38,7 @@ func (p *Processor) SendCallback(logger *slog.Logger, tx *store.StoreData) {
 
 	for i := 0; i < CallbackTries; i++ {
 
-		logger.Info("Sending callback for transaction", slog.String("hash", tx.Hash.String()), slog.String("url", tx.CallbackUrl), slog.String("token", tx.CallbackToken), slog.String("status", statusString), slog.Uint64("block height", tx.BlockHeight), slog.String("block hash", blockHash))
+		logger.Debug("Sending callback for transaction", slog.String("hash", tx.Hash.String()), slog.String("url", tx.CallbackUrl), slog.String("token", tx.CallbackToken), slog.String("status", statusString), slog.Uint64("block height", tx.BlockHeight), slog.String("block hash", blockHash))
 
 		status := &Callback{
 			BlockHash:   &blockHash,
diff --git a/metamorph/processor.go b/metamorph/processor.go
index 2e659b963..be7a0ccce 100644
--- a/metamorph/processor.go
+++ b/metamorph/processor.go
@@ -570,7 +570,7 @@ func (p *Processor) ProcessTransaction(ctx context.Context, req *ProcessorReques
 
 			p.stored.AddDuration(time.Since(processorResponse.Start))
 
-			p.logger.Info("announcing transaction", slog.String("hash", req.Data.Hash.String()))
+			p.logger.Debug("announcing transaction", slog.String("hash", req.Data.Hash.String()))
 			// STEP 2: ANNOUNCED_TO_NETWORK
 			peers := p.pm.AnnounceTransaction(req.Data.Hash, nil)
 			processorResponse.SetPeers(peers)
@@ -618,6 +618,12 @@ func (p *Processor) Health() error {
 	}
 
 	if healthyConnections < minimumHealthyConnections {
+		p.logger.Warn("Less than expected healthy peers - ", slog.Int("number", healthyConnections))
+		return nil
+	}
+
+	if healthyConnections == 0 {
+		p.logger.Error("Metamorph not healthy")
 		return ErrUnhealthy
 	}
 
diff --git a/metamorph/processor_test.go b/metamorph/processor_test.go
index a285cc0ab..e8e94b881 100644
--- a/metamorph/processor_test.go
+++ b/metamorph/processor_test.go
@@ -693,7 +693,7 @@ func TestProcessorHealth(t *testing.T) {
 			name:       "1 healthy peer",
 			peersAdded: 1,
 
-			expectedErr: metamorph.ErrUnhealthy,
+			expectedErr: nil,
 		},
 	}
 
diff --git a/test/endpoint_test.go b/test/endpoint_test.go
index 20ce99892..81acdffd4 100644
--- a/test/endpoint_test.go
+++ b/test/endpoint_test.go
@@ -404,6 +404,8 @@ func TestPostCallbackToken(t *testing.T) {
 				t.Logf("callback iteration %d", i)
 				select {
 				case callback := <-callbackReceivedChan:
+					t.Logf(*statusResponse.JSON200.TxStatus)
+					t.Logf(*callback.TxStatus)
 					if *callback.TxStatus == "SEEN_ON_NETWORK" {
 						seenOnNetworkReceived = true
 						continue