diff --git a/rpc/trace.go b/rpc/trace.go
index 79ba645e3..449acd28d 100644
--- a/rpc/trace.go
+++ b/rpc/trace.go
@@ -11,6 +11,7 @@ import (
 	"github.com/NethermindEth/juno/blockchain"
 	"github.com/NethermindEth/juno/core"
 	"github.com/NethermindEth/juno/core/felt"
+	"github.com/NethermindEth/juno/db"
 	"github.com/NethermindEth/juno/jsonrpc"
 	"github.com/NethermindEth/juno/starknet"
 	"github.com/NethermindEth/juno/sync"
@@ -141,7 +142,7 @@ func (h *Handler) traceTransaction(ctx context.Context, hash *felt.Felt) (*vm.Tr
 	httpHeader := http.Header{}
 	httpHeader.Set(ExecutionStepsHeader, "0")
 
-	if err != nil {
+	if err != nil && !errors.Is(err, db.ErrKeyNotFound) {
 		return nil, httpHeader, ErrTxnHashNotFound
 	}
 
diff --git a/rpc/trace_test.go b/rpc/trace_test.go
index d46cbf40d..9c37ff54c 100644
--- a/rpc/trace_test.go
+++ b/rpc/trace_test.go
@@ -86,14 +86,28 @@ func TestTraceTransaction(t *testing.T) {
 	handler := rpc.New(mockReader, mockSyncReader, mockVM, "", utils.NewNopZapLogger())
 
 	t.Run("not found", func(t *testing.T) {
-		hash := utils.HexToFelt(t, "0xBBBB")
-		// Receipt() returns error related to db
-		mockReader.EXPECT().Receipt(hash).Return(nil, nil, uint64(0), db.ErrKeyNotFound)
+		t.Run("key not found", func(t *testing.T) {
+			hash := utils.HexToFelt(t, "0xBBBB")
+			// Receipt() returns error related to db
+			mockReader.EXPECT().Receipt(hash).Return(nil, nil, uint64(0), db.ErrKeyNotFound)
+			mockSyncReader.EXPECT().Pending().Return(&sync.Pending{Block: &core.Block{}}, nil)
+
+			trace, httpHeader, err := handler.TraceTransaction(context.Background(), *hash)
+			assert.Nil(t, trace)
+			assert.Equal(t, rpc.ErrTxnHashNotFound, err)
+			assert.Equal(t, httpHeader.Get(rpc.ExecutionStepsHeader), "0")
+		})
 
-		trace, httpHeader, err := handler.TraceTransaction(context.Background(), *hash)
-		assert.Nil(t, trace)
-		assert.Equal(t, rpc.ErrTxnHashNotFound, err)
-		assert.Equal(t, httpHeader.Get(rpc.ExecutionStepsHeader), "0")
+		t.Run("other error", func(t *testing.T) {
+			hash := utils.HexToFelt(t, "0xBBBB")
+			// Receipt() returns some other error
+			mockReader.EXPECT().Receipt(hash).Return(nil, nil, uint64(0), errors.New("database error"))
+
+			trace, httpHeader, err := handler.TraceTransaction(context.Background(), *hash)
+			assert.Nil(t, trace)
+			assert.Equal(t, rpc.ErrTxnHashNotFound, err)
+			assert.Equal(t, httpHeader.Get(rpc.ExecutionStepsHeader), "0")
+		})
 	})
 	t.Run("ok", func(t *testing.T) {
 		hash := utils.HexToFelt(t, "0x37b244ea7dc6b3f9735fba02d183ef0d6807a572dd91a63cc1b14b923c1ac0")