diff --git a/p8e-api/src/main/kotlin/io/provenance/engine/service/EventService.kt b/p8e-api/src/main/kotlin/io/provenance/engine/service/EventService.kt
index 698bb78..9470c20 100644
--- a/p8e-api/src/main/kotlin/io/provenance/engine/service/EventService.kt
+++ b/p8e-api/src/main/kotlin/io/provenance/engine/service/EventService.kt
@@ -4,12 +4,15 @@ import com.google.protobuf.util.JsonFormat
 import io.p8e.proto.Events.P8eEvent
 import io.p8e.proto.Events.P8eEvent.Event
 import io.p8e.util.ThreadPoolFactory
+import io.p8e.util.or
 import io.p8e.util.orThrow
 import io.p8e.util.timed
 import io.provenance.p8e.shared.extension.logger
 import io.provenance.engine.domain.EventRecord
 import io.provenance.engine.domain.EventStatus
 import io.provenance.engine.domain.EventTable
+import io.provenance.p8e.shared.domain.EnvelopeRecord
+import io.provenance.p8e.shared.util.P8eMDC
 import org.jetbrains.exposed.sql.SizedIterable
 import org.jetbrains.exposed.sql.SortOrder
 import org.jetbrains.exposed.sql.and
@@ -43,7 +46,7 @@ class EventService() {
             Event.ENVELOPE_FRAGMENT to listOf(Event.ENVELOPE_CHAINCODE, Event.ENVELOPE_ERROR),
             Event.ENVELOPE_REQUEST to listOf(Event.ENVELOPE_MAILBOX_OUTBOUND),
             Event.ENVELOPE_MAILBOX_OUTBOUND to listOf(Event.SCOPE_INDEX, Event.SCOPE_INDEX_FRAGMENT),
-            Event.ENVELOPE_CHAINCODE to listOf(Event.SCOPE_INDEX, Event.SCOPE_INDEX_FRAGMENT, Event.ENVELOPE_ERROR),
+            Event.ENVELOPE_CHAINCODE to listOf(Event.SCOPE_INDEX, Event.SCOPE_INDEX_FRAGMENT, Event.ENVELOPE_ERROR, Event.ENVELOPE_CHAINCODE),
             Event.SCOPE_INDEX to listOf(Event.ENVELOPE_RESPONSE),
             Event.SCOPE_INDEX_FRAGMENT to listOf(Event.ENVELOPE_RESPONSE),
             Event.ENVELOPE_RESPONSE to listOf(), // end of the line
@@ -64,6 +67,8 @@ class EventService() {
                 val validTransitions = VALID_STATE_TRANSITIONS[it.event]
                 if (validTransitions == null || validTransitions.contains(event.event)) {
                     it.update(event, status, created, created).also(::submitToChannel)
+                } else {
+                    log.info("Skipping invalid event transition of ${it.event} -> ${event.event}")
                 }
             } ?: EventRecord.insert(event, envelopeUuid, status, created, created).also(::submitToChannel)
 
@@ -201,6 +206,11 @@ class NotificationHandler(private val event: Event) {
     fun notification(tableEvent: EventRecord) {
         thread(pool = computeExecutor(tableEvent.event)) {
             try {
+                transaction { EnvelopeRecord.findById(tableEvent.envelopeUuid) }?.let {
+                    P8eMDC.set(it, clear = true)
+                }.or {
+                    log.warn("Failed to find envelope record for MDC (envelopeUuid: ${tableEvent.envelopeUuid}, eventUuid: ${tableEvent.eventUuid.value})")
+                }
                 when (tableEvent.status) {
                     EventStatus.CREATED -> {
                         log.info("Received CREATED event: [${JsonFormat.printer().print(tableEvent.payload)}")
diff --git a/p8e-api/src/test/kotlin/service/EventServiceTest.kt b/p8e-api/src/test/kotlin/service/EventServiceTest.kt
index 9ac9ddd..58882ab 100644
--- a/p8e-api/src/test/kotlin/service/EventServiceTest.kt
+++ b/p8e-api/src/test/kotlin/service/EventServiceTest.kt
@@ -219,4 +219,24 @@ class EventServiceTest {
         Assert.assertEquals(Event.ENVELOPE_RESPONSE, updatedRecord.event)
         Assert.assertEquals("some-other-test-message".toByteString(), updatedRecord.payload.message)
     }
+
+    @Test
+    fun `Verify ENVELOPE_CHAINCODE to ENVELOPE_CHAINCODE is a valid transition`() {
+        // CHAINCODE -> CHAINCODE transition for TransactionStatusService.retryDead case
+        val event = Events.P8eEvent.newBuilder()
+            .setEvent(Event.ENVELOPE_CHAINCODE)
+            .setMessage("some-test-message".toByteString())
+            .build()
+
+        transaction { EventRecord.insert(event, envelopeRecord.uuid.value) }
+
+        val event2 = Events.P8eEvent.newBuilder()
+            .setEvent(Event.ENVELOPE_CHAINCODE)
+            .setMessage("some-other-test-message".toByteString())
+            .build()
+        val updatedRecord = transaction { eventService.submitEvent(event2, envelopeRecord.uuid.value, EventStatus.CREATED, createdTime) }
+
+        // event should be updated, since you can go from ENVELOPE_CHAINCODE -> ENVELOPE_CHAINCODE
+        Assert.assertEquals("some-other-test-message".toByteString(), updatedRecord.payload.message)
+    }
 }