diff --git a/packages/library/src/__tests__/decode-transaction-test.ts b/packages/library/src/__tests__/decode-transaction-test.ts
new file mode 100644
index 000000000000..d064e5c42fcc
--- /dev/null
+++ b/packages/library/src/__tests__/decode-transaction-test.ts
@@ -0,0 +1,302 @@
+import { FetchAccountsConfig, fetchJsonParsedAccounts } from '@solana/accounts';
+import type { Address } from '@solana/addresses';
+import { GetMultipleAccountsApi } from '@solana/rpc-core';
+import { Rpc } from '@solana/rpc-transport';
+import { type Blockhash, decompileTransaction, getCompiledTransactionDecoder } from '@solana/transactions';
+import { CompiledTransaction } from '@solana/transactions/dist/types/compile-transaction';
+
+import { LamportsUnsafeBeyond2Pow53Minus1 } from '..';
+
+jest.mock('@solana/accounts');
+jest.mock('@solana/transactions');
+
+describe('decodeTransaction', () => {
+    const blockhash = 'abc' as Blockhash;
+    const encodedTransaction = new Uint8Array([1, 2, 3]);
+    const rpc: Rpc<GetMultipleAccountsApi> = {
+        getMultipleAccounts: jest.fn(),
+    };
+
+    // Reload `decodeTransaction` before each test to reset memoized state
+    let decodeTransaction: typeof import('../decode-transaction').decodeTransaction;
+    beforeEach(async () => {
+        await jest.isolateModulesAsync(async () => {
+            const decodeTransactionModule =
+                // eslint-disable-next-line @typescript-eslint/ban-ts-comment
+                // @ts-ignore
+                import('../decode-transaction');
+            decodeTransaction = (await decodeTransactionModule).decodeTransaction;
+        });
+
+        jest.clearAllMocks();
+    });
+
+    describe('for a legacy transaction', () => {
+        const compiledTransaction: CompiledTransaction = {
+            compiledMessage: {
+                // no `addressTableLookups` field
+                header: {
+                    numReadonlyNonSignerAccounts: 0,
+                    numReadonlySignerAccounts: 0,
+                    numSignerAccounts: 0,
+                },
+                instructions: [],
+                lifetimeToken: blockhash,
+                staticAccounts: [],
+                version: 'legacy',
+            },
+            signatures: [],
+        };
+
+        // mock `getCompiledTransactionDecoder` to return `compiledTransaction`
+        let mockCompiledTransactionDecode: () => CompiledTransaction;
+        beforeEach(() => {
+            mockCompiledTransactionDecode = jest.fn().mockReturnValue(compiledTransaction);
+
+            jest.mocked(getCompiledTransactionDecoder).mockReturnValue({
+                decode: mockCompiledTransactionDecode,
+            } as unknown as ReturnType<typeof getCompiledTransactionDecoder>);
+        });
+
+        it('should pass the given encoded transaction to the compiled transaction decoder', async () => {
+            expect.assertions(1);
+            await decodeTransaction(encodedTransaction, rpc);
+            expect(mockCompiledTransactionDecode).toHaveBeenCalledWith(encodedTransaction);
+        });
+
+        it('should not call the `fetchJsonParsedAccounts` function', async () => {
+            expect.assertions(1);
+            await decodeTransaction(encodedTransaction, rpc);
+            expect(fetchJsonParsedAccounts).not.toHaveBeenCalled();
+        });
+
+        it('should call `decompileTransaction` with the compiled transaction and no lookup tables', async () => {
+            expect.assertions(1);
+            await decodeTransaction(encodedTransaction, rpc);
+            expect(decompileTransaction).toHaveBeenCalledWith(compiledTransaction, {
+                addressesByLookupTableAddress: {},
+                lastValidBlockHeight: undefined,
+            });
+        });
+
+        it('should pass `lastValidBlockHeight` to `decompileTransaction`', async () => {
+            expect.assertions(1);
+            await decodeTransaction(encodedTransaction, rpc, { lastValidBlockHeight: 100n });
+            expect(decompileTransaction).toHaveBeenCalledWith(compiledTransaction, {
+                addressesByLookupTableAddress: {},
+                lastValidBlockHeight: 100n,
+            });
+        });
+    });
+
+    describe('for a versioned transaction with no `addressTableLookups` field', () => {
+        const compiledTransaction: CompiledTransaction = {
+            compiledMessage: {
+                // no `addressTableLookups` field
+                header: {
+                    numReadonlyNonSignerAccounts: 0,
+                    numReadonlySignerAccounts: 0,
+                    numSignerAccounts: 0,
+                },
+                instructions: [],
+                lifetimeToken: blockhash,
+                staticAccounts: [],
+                version: 0,
+            },
+            signatures: [],
+        };
+
+        // mock `getCompiledTransactionDecoder` to return `compiledTransaction`
+        let mockCompiledTransactionDecode: () => CompiledTransaction;
+        beforeEach(() => {
+            mockCompiledTransactionDecode = jest.fn().mockReturnValue(compiledTransaction);
+
+            jest.mocked(getCompiledTransactionDecoder).mockReturnValue({
+                decode: mockCompiledTransactionDecode,
+            } as unknown as ReturnType<typeof getCompiledTransactionDecoder>);
+        });
+
+        it('should pass the given encoded transaction to the compiled transaction decoder', async () => {
+            expect.assertions(1);
+            await decodeTransaction(encodedTransaction, rpc);
+            expect(mockCompiledTransactionDecode).toHaveBeenCalledWith(encodedTransaction);
+        });
+
+        it('should not call the `fetchJsonParsedAccounts` function', async () => {
+            expect.assertions(1);
+            await decodeTransaction(encodedTransaction, rpc);
+            expect(fetchJsonParsedAccounts).not.toHaveBeenCalled();
+        });
+
+        it('should call `decompileTransaction` with the compiled transaction and no lookup tables', async () => {
+            expect.assertions(1);
+            await decodeTransaction(encodedTransaction, rpc);
+            expect(decompileTransaction).toHaveBeenCalledWith(compiledTransaction, {
+                addressesByLookupTableAddress: {},
+                lastValidBlockHeight: undefined,
+            });
+        });
+    });
+
+    describe('for a versioned transaction with empty `addressTableLookups`', () => {
+        const compiledTransaction: CompiledTransaction = {
+            compiledMessage: {
+                addressTableLookups: [],
+                header: {
+                    numReadonlyNonSignerAccounts: 0,
+                    numReadonlySignerAccounts: 0,
+                    numSignerAccounts: 0,
+                },
+                instructions: [],
+                lifetimeToken: blockhash,
+                staticAccounts: [],
+                version: 0,
+            },
+            signatures: [],
+        };
+
+        // mock `getCompiledTransactionDecoder` to return `compiledTransaction`
+        let mockCompiledTransactionDecode: () => CompiledTransaction;
+        beforeEach(() => {
+            mockCompiledTransactionDecode = jest.fn().mockReturnValue(compiledTransaction);
+
+            jest.mocked(getCompiledTransactionDecoder).mockReturnValue({
+                decode: mockCompiledTransactionDecode,
+            } as unknown as ReturnType<typeof getCompiledTransactionDecoder>);
+        });
+
+        it('should pass the given encoded transaction to the compiled transaction decoder', async () => {
+            expect.assertions(1);
+            await decodeTransaction(encodedTransaction, rpc);
+            expect(mockCompiledTransactionDecode).toHaveBeenCalledWith(encodedTransaction);
+        });
+
+        it('should not call the `fetchJsonParsedAccounts` function', async () => {
+            expect.assertions(1);
+            await decodeTransaction(encodedTransaction, rpc);
+            expect(fetchJsonParsedAccounts).not.toHaveBeenCalled();
+        });
+
+        it('should call `decompileTransaction` with the compiled transaction and no lookup tables', async () => {
+            expect.assertions(1);
+            await decodeTransaction(encodedTransaction, rpc);
+            expect(decompileTransaction).toHaveBeenCalledWith(compiledTransaction, {
+                addressesByLookupTableAddress: {},
+                lastValidBlockHeight: undefined,
+            });
+        });
+    });
+
+    describe('for a versioned transaction with non-empty `addressTableLookups`', () => {
+        const lookupTableAddress1 = '1111' as Address;
+        const lookupTableAddress2 = '2222' as Address;
+
+        const compiledTransaction: CompiledTransaction = {
+            compiledMessage: {
+                addressTableLookups: [
+                    {
+                        lookupTableAddress: lookupTableAddress1,
+                        readableIndices: [0],
+                        writableIndices: [],
+                    },
+                    {
+                        lookupTableAddress: lookupTableAddress2,
+                        readableIndices: [0],
+                        writableIndices: [],
+                    },
+                ],
+                header: {
+                    numReadonlyNonSignerAccounts: 0,
+                    numReadonlySignerAccounts: 0,
+                    numSignerAccounts: 0,
+                },
+                instructions: [],
+                lifetimeToken: blockhash,
+                staticAccounts: [],
+                version: 0,
+            },
+            signatures: [],
+        };
+
+        const addressInLookup1 = '3333' as Address;
+        const addressInLookup2 = '4444' as Address;
+
+        const fetchedLookupTables: Awaited<ReturnType<typeof fetchJsonParsedAccounts>> = [
+            {
+                address: lookupTableAddress1,
+                data: {
+                    addresses: [addressInLookup1],
+                },
+                executable: false,
+                exists: true,
+                lamports: 0n as LamportsUnsafeBeyond2Pow53Minus1,
+                programAddress: 'program' as Address,
+            },
+            {
+                address: lookupTableAddress2,
+                data: {
+                    addresses: [addressInLookup2],
+                },
+                executable: false,
+                exists: true,
+                lamports: 0n as LamportsUnsafeBeyond2Pow53Minus1,
+                programAddress: 'program' as Address,
+            },
+        ];
+
+        // mock `getCompiledTransactionDecoder` to return `compiledTransaction`
+        let mockCompiledTransactionDecode: () => CompiledTransaction;
+        beforeEach(() => {
+            mockCompiledTransactionDecode = jest.fn().mockReturnValue(compiledTransaction);
+
+            jest.mocked(getCompiledTransactionDecoder).mockReturnValue({
+                decode: mockCompiledTransactionDecode,
+            } as unknown as ReturnType<typeof getCompiledTransactionDecoder>);
+
+            // mock `fetchJsonParsedAccounts` to resolve to `fetchedLookupTables`
+            jest.mocked(fetchJsonParsedAccounts).mockResolvedValue(fetchedLookupTables);
+        });
+
+        it('should pass the given encoded transaction to the compiled transaction decoder', async () => {
+            expect.assertions(1);
+            await decodeTransaction(encodedTransaction, rpc);
+            expect(mockCompiledTransactionDecode).toHaveBeenCalledWith(encodedTransaction);
+        });
+
+        it('should call the `fetchJsonParsedAccounts` function with the lookup table addresses', async () => {
+            expect.assertions(1);
+            await decodeTransaction(encodedTransaction, rpc);
+            expect(fetchJsonParsedAccounts).toHaveBeenCalledWith(rpc, [lookupTableAddress1, lookupTableAddress2], {});
+        });
+
+        it('should pass config to `fetchJsonParsedAccounts`', async () => {
+            expect.assertions(1);
+            const fetchAccountsConfig: FetchAccountsConfig = {
+                abortSignal: new AbortController().signal,
+                commitment: 'confirmed',
+                minContextSlot: 100n,
+            };
+            await decodeTransaction(encodedTransaction, rpc, {
+                ...fetchAccountsConfig,
+                lastValidBlockHeight: 100n,
+            });
+            expect(fetchJsonParsedAccounts).toHaveBeenCalledWith(
+                rpc,
+                [lookupTableAddress1, lookupTableAddress2],
+                fetchAccountsConfig,
+            );
+        });
+
+        it('should call `decompileTransaction` with the compiled transaction and the fetched lookup tables', async () => {
+            expect.assertions(1);
+            await decodeTransaction(encodedTransaction, rpc);
+            expect(decompileTransaction).toHaveBeenCalledWith(compiledTransaction, {
+                addressesByLookupTableAddress: {
+                    [lookupTableAddress1]: [addressInLookup1],
+                    [lookupTableAddress2]: [addressInLookup2],
+                },
+                lastValidBlockHeight: undefined,
+            });
+        });
+    });
+});
diff --git a/packages/library/src/decode-transaction.ts b/packages/library/src/decode-transaction.ts
new file mode 100644
index 000000000000..e9913feb6c56
--- /dev/null
+++ b/packages/library/src/decode-transaction.ts
@@ -0,0 +1,75 @@
+import {
+    assertAccountsDecoded,
+    assertAccountsExist,
+    type FetchAccountsConfig,
+    fetchJsonParsedAccounts,
+} from '@solana/accounts';
+import { Address } from '@solana/addresses';
+import type { GetMultipleAccountsApi } from '@solana/rpc-core';
+import type { Rpc } from '@solana/rpc-transport';
+import {
+    type AddressesByLookupTableAddress,
+    type CompilableTransaction,
+    decompileTransaction,
+    getCompiledTransactionDecoder,
+    type ITransactionWithSignatures,
+} from '@solana/transactions';
+
+let compiledTransactionDecoder: ReturnType<typeof getCompiledTransactionDecoder> | undefined = undefined;
+
+type FetchedAddressLookup = {
+    addresses: Address[];
+};
+
+async function fetchLookupTables(
+    lookupTableAddresses: Address[],
+    rpc: Rpc<GetMultipleAccountsApi>,
+    config?: FetchAccountsConfig,
+): Promise<AddressesByLookupTableAddress> {
+    const fetchedLookupTables = await fetchJsonParsedAccounts<FetchedAddressLookup[]>(
+        rpc,
+        lookupTableAddresses,
+        config,
+    );
+    assertAccountsDecoded(fetchedLookupTables);
+    assertAccountsExist(fetchedLookupTables);
+
+    return fetchedLookupTables.reduce<AddressesByLookupTableAddress>((acc, lookup) => {
+        return {
+            ...acc,
+            [lookup.address]: lookup.data.addresses,
+        };
+    }, {});
+}
+
+type DecodeTransactionConfig = FetchAccountsConfig & {
+    lastValidBlockHeight?: bigint;
+};
+
+export async function decodeTransaction(
+    encodedTransaction: Uint8Array,
+    rpc: Rpc<GetMultipleAccountsApi>,
+    config?: DecodeTransactionConfig,
+): Promise<CompilableTransaction | (CompilableTransaction & ITransactionWithSignatures)> {
+    const { lastValidBlockHeight, ...fetchAccountsConfig } = config ?? {};
+
+    if (!compiledTransactionDecoder) compiledTransactionDecoder = getCompiledTransactionDecoder();
+    const compiledTransaction = compiledTransactionDecoder.decode(encodedTransaction);
+    const { compiledMessage } = compiledTransaction;
+
+    const lookupTables =
+        'addressTableLookups' in compiledMessage &&
+        compiledMessage.addressTableLookups !== undefined &&
+        compiledMessage.addressTableLookups.length > 0
+            ? compiledMessage.addressTableLookups
+            : [];
+    const lookupTableAddresses = lookupTables.map(l => l.lookupTableAddress);
+
+    const fetchedLookupTables =
+        lookupTableAddresses.length > 0 ? await fetchLookupTables(lookupTableAddresses, rpc, fetchAccountsConfig) : {};
+
+    return decompileTransaction(compiledTransaction, {
+        addressesByLookupTableAddress: fetchedLookupTables,
+        lastValidBlockHeight,
+    });
+}
diff --git a/packages/transactions/src/index.ts b/packages/transactions/src/index.ts
index 021ff0a83c45..b398323edae7 100644
--- a/packages/transactions/src/index.ts
+++ b/packages/transactions/src/index.ts
@@ -1,6 +1,7 @@
 export * from './blockhash';
 export * from './compilable-transaction';
 export * from './create-transaction';
+export * from './decompile-transaction';
 export * from './durable-nonce';
 export * from './fee-payer';
 export * from './instructions';
diff --git a/packages/transactions/src/serializers/transaction.ts b/packages/transactions/src/serializers/transaction.ts
index 0e4eb177cd97..7e92b8fab6c0 100644
--- a/packages/transactions/src/serializers/transaction.ts
+++ b/packages/transactions/src/serializers/transaction.ts
@@ -31,7 +31,7 @@ function getCompiledTransactionEncoder(): VariableSizeEncoder<CompiledTransactio
     ]);
 }
 
-function getCompiledTransactionDecoder(): VariableSizeDecoder<CompiledTransaction> {
+export function getCompiledTransactionDecoder(): VariableSizeDecoder<CompiledTransaction> {
     return getStructDecoder([
         [
             'signatures',