diff --git a/statediff/builder.go b/statediff/builder.go
index 9b79b1dee..eca144d65 100644
--- a/statediff/builder.go
+++ b/statediff/builder.go
@@ -42,6 +42,7 @@ var (
 	emptyNode, _      = rlp.EncodeToBytes(&[]byte{})
 	emptyContractRoot = crypto.Keccak256Hash(emptyNode)
 	nullCodeHash      = crypto.Keccak256Hash([]byte{}).Bytes()
+	nullNodeHash      = common.Hex2Bytes("0000000000000000000000000000000000000000000000000000000000000000")
 )
 
 // Builder interface exposes the method for building a state diff between two blocks
@@ -218,6 +219,9 @@ func (sdb *StateDiffBuilder) createdAndUpdatedState(a, b trie.NodeIterator,
 			diffAccountsAtB[common.Bytes2Hex(accountW.LeafKey)] = *accountW
 		} else { // trie nodes will be written to blockstore only
 			// reminder that this includes leaf nodes, since the geth iterator.Leaf() actually signifies a "value" node
+			if bytes.Equal(it.Hash().Bytes(), nullNodeHash) {
+				continue
+			}
 			nodeVal := make([]byte, len(it.NodeBlob()))
 			copy(nodeVal, it.NodeBlob())
 			if len(watchedAddressesLeafPaths) > 0 {
@@ -279,7 +283,6 @@ func (sdb *StateDiffBuilder) processStateValueNode(it trie.NodeIterator, watched
 	if err != nil {
 		return nil, err
 	}
-
 	return &types2.AccountWrapper{
 		LeafKey: leafKey,
 		Account: &account,
@@ -578,6 +581,9 @@ func (sdb *StateDiffBuilder) createdAndUpdatedStorage(a, b trie.NodeIterator, ou
 			}
 			diffSlotsAtB[common.Bytes2Hex(storageLeafNode.LeafKey)] = true
 		} else {
+			if bytes.Equal(it.Hash().Bytes(), nullNodeHash) {
+				continue
+			}
 			nodeVal := make([]byte, len(it.NodeBlob()))
 			copy(nodeVal, it.NodeBlob())
 			nodeHash := make([]byte, len(it.Hash().Bytes()))
diff --git a/statediff/builder_test.go b/statediff/builder_test.go
index 6b3897c86..865da91ac 100644
--- a/statediff/builder_test.go
+++ b/statediff/builder_test.go
@@ -47,10 +47,10 @@ var (
 	minerAddress                                           = common.HexToAddress("0x0")
 	minerLeafKey                                           = test_helpers.AddressToLeafKey(minerAddress)
 
-	slot0 = common.HexToHash("0")
-	slot1 = common.HexToHash("1")
-	slot2 = common.HexToHash("2")
-	slot3 = common.HexToHash("3")
+	slot0 = common.BigToHash(big.NewInt(0))
+	slot1 = common.BigToHash(big.NewInt(1))
+	slot2 = common.BigToHash(big.NewInt(2))
+	slot3 = common.BigToHash(big.NewInt(3))
 
 	slot0StorageKey = crypto.Keccak256Hash(slot0[:])
 	slot1StorageKey = crypto.Keccak256Hash(slot1[:])
@@ -504,7 +504,7 @@ func init() {
 	}
 }
 
-func TestBuilderF(t *testing.T) {
+func TestBuilder(t *testing.T) {
 	blocks, chain := test_helpers.MakeChain(3, test_helpers.Genesis, test_helpers.TestChainGen)
 	contractLeafKey = test_helpers.AddressToLeafKey(test_helpers.ContractAddr)
 	defer chain.Stop()
@@ -886,22 +886,19 @@ func TestBuilderF(t *testing.T) {
 			t.Logf("Test failed: %s", test.name)
 			t.Errorf("actual state diff: %s\r\n\r\n\r\nexpected state diff: %s", actual, expected)
 		}
-		// Let's also confirm that our root state nodes form the state root hash in the headers
-		/*
-			if i > 0 {
-				block := blocks[i-1]
-				expectedStateRoot := block.Root()
-				for _, node := range test.expected.Nodes {
-					if bytes.Equal(node.Path, []byte{}) {
-						stateRoot := crypto.Keccak256Hash(node.NodeValue)
-						if !bytes.Equal(expectedStateRoot.Bytes(), stateRoot.Bytes()) {
-							t.Logf("Test failed: %s", test.name)
-							t.Errorf("actual stateroot: %x\r\nexpected stateroot: %x", stateRoot.Bytes(), expectedStateRoot.Bytes())
-						}
-					}
-				}
-			}
-		*/
+	}
+	// Let's also confirm that our root state nodes form the state root hash in the headers
+	if !bytes.Equal(block0.Root().Bytes(), crypto.Keccak256(bankAccountAtBlock0LeafNode)) {
+		t.Errorf("block0 expected root %x does not match actual root %x", block0.Root().Bytes(), crypto.Keccak256(bankAccountAtBlock0LeafNode))
+	}
+	if !bytes.Equal(block1.Root().Bytes(), crypto.Keccak256(block1BranchRootNode)) {
+		t.Errorf("block1 expected root %x does not match actual root %x", block1.Root().Bytes(), crypto.Keccak256(block1BranchRootNode))
+	}
+	if !bytes.Equal(block2.Root().Bytes(), crypto.Keccak256(block2BranchRootNode)) {
+		t.Errorf("block2 expected root %x does not match actual root %x", block2.Root().Bytes(), crypto.Keccak256(block2BranchRootNode))
+	}
+	if !bytes.Equal(block3.Root().Bytes(), crypto.Keccak256(block3BranchRootNode)) {
+		t.Errorf("block3 expected root %x does not match actual root %x", block3.Root().Bytes(), crypto.Keccak256(block3BranchRootNode))
 	}
 }
 
@@ -1159,6 +1156,19 @@ func TestBuilderWithWatchedAddressList(t *testing.T) {
 			t.Errorf("actual state diff: %s\r\n\r\n\r\nexpected state diff: %s", actual, expected)
 		}
 	}
+	// Let's also confirm that our root state nodes form the state root hash in the headers
+	if !bytes.Equal(block0.Root().Bytes(), crypto.Keccak256(bankAccountAtBlock0LeafNode)) {
+		t.Errorf("block0 expected root %x does not match actual root %x", block0.Root().Bytes(), crypto.Keccak256(bankAccountAtBlock0LeafNode))
+	}
+	if !bytes.Equal(block1.Root().Bytes(), crypto.Keccak256(block1BranchRootNode)) {
+		t.Errorf("block1 expected root %x does not match actual root %x", block1.Root().Bytes(), crypto.Keccak256(block1BranchRootNode))
+	}
+	if !bytes.Equal(block2.Root().Bytes(), crypto.Keccak256(block2BranchRootNode)) {
+		t.Errorf("block2 expected root %x does not match actual root %x", block2.Root().Bytes(), crypto.Keccak256(block2BranchRootNode))
+	}
+	if !bytes.Equal(block3.Root().Bytes(), crypto.Keccak256(block3BranchRootNode)) {
+		t.Errorf("block3 expected root %x does not match actual root %x", block3.Root().Bytes(), crypto.Keccak256(block3BranchRootNode))
+	}
 }
 
 func TestBuilderWithRemovedAccountAndStorage(t *testing.T) {
@@ -1472,6 +1482,16 @@ func TestBuilderWithRemovedAccountAndStorage(t *testing.T) {
 			t.Errorf("actual state diff: %s\r\n\r\n\r\nexpected state diff: %s", actual, expected)
 		}
 	}
+	// Let's also confirm that our root state nodes form the state root hash in the headers
+	if !bytes.Equal(block4.Root().Bytes(), crypto.Keccak256(block4BranchRootNode)) {
+		t.Errorf("block4 expected root %x does not match actual root %x", block4.Root().Bytes(), crypto.Keccak256(block4BranchRootNode))
+	}
+	if !bytes.Equal(block5.Root().Bytes(), crypto.Keccak256(block5BranchRootNode)) {
+		t.Errorf("block5 expected root %x does not match actual root %x", block5.Root().Bytes(), crypto.Keccak256(block5BranchRootNode))
+	}
+	if !bytes.Equal(block6.Root().Bytes(), crypto.Keccak256(block6BranchRootNode)) {
+		t.Errorf("block6 expected root %x does not match actual root %x", block6.Root().Bytes(), crypto.Keccak256(block6BranchRootNode))
+	}
 }
 
 func TestBuilderWithRemovedNonWatchedAccount(t *testing.T) {
@@ -1652,6 +1672,16 @@ func TestBuilderWithRemovedNonWatchedAccount(t *testing.T) {
 			t.Errorf("actual state diff: %s\r\n\r\n\r\nexpected state diff: %s", actual, expected)
 		}
 	}
+	// Let's also confirm that our root state nodes form the state root hash in the headers
+	if !bytes.Equal(block4.Root().Bytes(), crypto.Keccak256(block4BranchRootNode)) {
+		t.Errorf("block4 expected root %x does not match actual root %x", block4.Root().Bytes(), crypto.Keccak256(block4BranchRootNode))
+	}
+	if !bytes.Equal(block5.Root().Bytes(), crypto.Keccak256(block5BranchRootNode)) {
+		t.Errorf("block5 expected root %x does not match actual root %x", block5.Root().Bytes(), crypto.Keccak256(block5BranchRootNode))
+	}
+	if !bytes.Equal(block6.Root().Bytes(), crypto.Keccak256(block6BranchRootNode)) {
+		t.Errorf("block6 expected root %x does not match actual root %x", block6.Root().Bytes(), crypto.Keccak256(block6BranchRootNode))
+	}
 }
 
 func TestBuilderWithRemovedWatchedAccount(t *testing.T) {
@@ -1905,6 +1935,16 @@ func TestBuilderWithRemovedWatchedAccount(t *testing.T) {
 			t.Errorf("actual state diff: %s\r\n\r\n\r\nexpected state diff: %s", actual, expected)
 		}
 	}
+	// Let's also confirm that our root state nodes form the state root hash in the headers
+	if !bytes.Equal(block4.Root().Bytes(), crypto.Keccak256(block4BranchRootNode)) {
+		t.Errorf("block4 expected root %x does not match actual root %x", block4.Root().Bytes(), crypto.Keccak256(block4BranchRootNode))
+	}
+	if !bytes.Equal(block5.Root().Bytes(), crypto.Keccak256(block5BranchRootNode)) {
+		t.Errorf("block5 expected root %x does not match actual root %x", block5.Root().Bytes(), crypto.Keccak256(block5BranchRootNode))
+	}
+	if !bytes.Equal(block6.Root().Bytes(), crypto.Keccak256(block6BranchRootNode)) {
+		t.Errorf("block6 expected root %x does not match actual root %x", block6.Root().Bytes(), crypto.Keccak256(block6BranchRootNode))
+	}
 }
 
 var (
@@ -2177,6 +2217,13 @@ func TestBuilderWithMovedAccount(t *testing.T) {
 			t.Errorf("actual state diff: %s\r\n\r\n\r\nexpected state diff: %s", actual, expected)
 		}
 	}
+	// Let's also confirm that our root state nodes form the state root hash in the headers
+	if !bytes.Equal(block1.Root().Bytes(), crypto.Keccak256(block01BranchRootNode)) {
+		t.Errorf("block01 expected root %x does not match actual root %x", block1.Root().Bytes(), crypto.Keccak256(block01BranchRootNode))
+	}
+	if !bytes.Equal(block2.Root().Bytes(), crypto.Keccak256(bankAccountAtBlock02LeafNode)) {
+		t.Errorf("block02 expected root %x does not match actual root %x", block2.Root().Bytes(), crypto.Keccak256(bankAccountAtBlock02LeafNode))
+	}
 }
 
 /*
@@ -2209,3 +2256,853 @@ contract test {
     }
 }
 */
+
+var (
+	b                    = big.NewInt(0).Sub(test_helpers.TestBIGBankFunds, test_helpers.BalanceChangeBIG)
+	block1BankBigBalance = big.NewInt(0).Sub(b, big.NewInt(test_helpers.GasFees2))
+	bankAccountAtBlock1b = &types.StateAccount{
+		Nonce:    1,
+		Balance:  block1BankBigBalance,
+		CodeHash: test_helpers.NullCodeHash.Bytes(),
+		Root:     test_helpers.EmptyContractRoot,
+	}
+	bankAccountAtBlock1bRLP, _      = rlp.EncodeToBytes(bankAccountAtBlock1b)
+	bankAccountAtBlock1bLeafNode, _ = rlp.EncodeToBytes(&[]interface{}{
+		common.Hex2Bytes("30bf49f440a1cd0527e4d06e2765654c0f56452257516d793a9b8d604dcfdf2a"),
+		bankAccountAtBlock1bRLP,
+	})
+
+	account1AtBlock1b = &types.StateAccount{
+		Nonce:    0,
+		Balance:  test_helpers.Block1bAccount1Balance,
+		CodeHash: test_helpers.NullCodeHash.Bytes(),
+		Root:     test_helpers.EmptyContractRoot,
+	}
+	account1AtBlock1bRLP, _      = rlp.EncodeToBytes(account1AtBlock1b)
+	account1AtBlock1bLeafNode, _ = rlp.EncodeToBytes(&[]interface{}{
+		common.Hex2Bytes("3926db69aaced518e9b9f0f434a473e7174109c943548bb8f23be41ca76d9ad2"),
+		account1AtBlock1bRLP,
+	})
+
+	account1AtBlock2bBalance, _ = big.NewInt(0).SetString("1999999999999999999999999761539571000000000", 10)
+	account1AtBlock2b           = &types.StateAccount{
+		Nonce:    1,
+		Balance:  account1AtBlock2bBalance,
+		CodeHash: test_helpers.NullCodeHash.Bytes(),
+		Root:     test_helpers.EmptyContractRoot,
+	}
+	account1AtBlock2bRLP, _      = rlp.EncodeToBytes(account1AtBlock2b)
+	account1AtBlock2bLeafNode, _ = rlp.EncodeToBytes(&[]interface{}{
+		common.Hex2Bytes("3926db69aaced518e9b9f0f434a473e7174109c943548bb8f23be41ca76d9ad2"),
+		account1AtBlock2bRLP,
+	})
+
+	minerAccountAtBlock2b = &types.StateAccount{
+		Nonce:    0,
+		Balance:  big.NewInt(4055891787808414571),
+		CodeHash: test_helpers.NullCodeHash.Bytes(),
+		Root:     test_helpers.EmptyContractRoot,
+	}
+	minerAccountAtBlock2bRLP, _      = rlp.EncodeToBytes(minerAccountAtBlock2b)
+	minerAccountAtBlock2bLeafNode, _ = rlp.EncodeToBytes(&[]interface{}{
+		common.Hex2Bytes("3380c7b7ae81a58eb98d9c78de4a1fd7fd9535fc953ed2be602daaa41767312a"),
+		minerAccountAtBlock2bRLP,
+	})
+
+	contractAccountAtBlock2b = &types.StateAccount{
+		Nonce:    1,
+		Balance:  big.NewInt(0),
+		CodeHash: test_helpers.CodeHashForInternalizedLeafNode.Bytes(),
+		Root:     crypto.Keccak256Hash(block2StorageBranchRootNode),
+	}
+	contractAccountAtBlock2bRLP, _      = rlp.EncodeToBytes(contractAccountAtBlock2b)
+	contractAccountAtBlock2bLeafNode, _ = rlp.EncodeToBytes(&[]interface{}{
+		common.Hex2Bytes("3d7e14f1723fa19b5d6d9f8b86b49acefbc9c400bf4ed686c10d6b6467fc5b3a"),
+		contractAccountAtBlock2bRLP,
+	})
+
+	bankAccountAtBlock3bBalance, _ = big.NewInt(0).SetString("18000000000000000000000001999920365757724976", 10)
+	bankAccountAtBlock3b           = &types.StateAccount{
+		Nonce:    3,
+		Balance:  bankAccountAtBlock3bBalance,
+		CodeHash: test_helpers.NullCodeHash.Bytes(),
+		Root:     test_helpers.EmptyContractRoot,
+	}
+	bankAccountAtBlock3bRLP, _      = rlp.EncodeToBytes(bankAccountAtBlock3b)
+	bankAccountAtBlock3bLeafNode, _ = rlp.EncodeToBytes(&[]interface{}{
+		common.Hex2Bytes("30bf49f440a1cd0527e4d06e2765654c0f56452257516d793a9b8d604dcfdf2a"),
+		bankAccountAtBlock3bRLP,
+	})
+
+	contractAccountAtBlock3b = &types.StateAccount{
+		Nonce:    1,
+		Balance:  big.NewInt(0),
+		CodeHash: test_helpers.CodeHashForInternalizedLeafNode.Bytes(),
+		Root:     crypto.Keccak256Hash(block3bStorageBranchRootNode),
+	}
+	contractAccountAtBlock3bRLP, _      = rlp.EncodeToBytes(contractAccountAtBlock3b)
+	contractAccountAtBlock3bLeafNode, _ = rlp.EncodeToBytes(&[]interface{}{
+		common.Hex2Bytes("3d7e14f1723fa19b5d6d9f8b86b49acefbc9c400bf4ed686c10d6b6467fc5b3a"),
+		contractAccountAtBlock3bRLP,
+	})
+
+	slot40364  = common.BigToHash(big.NewInt(40364))
+	slot105566 = common.BigToHash(big.NewInt(105566))
+
+	slot40364StorageValue  = common.Hex2Bytes("01")
+	slot105566StorageValue = common.Hex2Bytes("02")
+
+	slot40364StorageKey  = crypto.Keccak256Hash(slot40364[:])
+	slot105566StorageKey = crypto.Keccak256Hash(slot105566[:])
+
+	slot40364StorageInternalLeafNode = []interface{}{
+		common.Hex2Bytes("3077bbc951a04529defc15da8c06e427cde0d7a1499c50975bbe8aab"),
+		slot40364StorageValue,
+	}
+	slot105566StorageInternalLeafNode = []interface{}{
+		common.Hex2Bytes("3c62586c18bf1ecfda161ced374b7a894630e2db426814c24e5d42af"),
+		slot105566StorageValue,
+	}
+
+	block3bStorageBranchRootNode, _ = rlp.EncodeToBytes(&[]interface{}{
+		[]byte{},
+		[]byte{},
+		crypto.Keccak256(slot0StorageLeafNode),
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		crypto.Keccak256(slot1StorageLeafNode),
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		crypto.Keccak256(block3bStorageExtensionNode),
+		[]byte{},
+	})
+
+	block3bStorageExtensionNode, _ = rlp.EncodeToBytes(&[]interface{}{
+		common.Hex2Bytes("1291631c"),
+		crypto.Keccak256(block3bStorageBranchNodeWithInternalLeaves),
+	})
+
+	block3bStorageBranchNodeWithInternalLeaves, _ = rlp.EncodeToBytes(&[]interface{}{
+		slot105566StorageInternalLeafNode,
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		slot40364StorageInternalLeafNode,
+		[]byte{},
+		[]byte{},
+		[]byte{},
+	})
+
+	block1bBranchRootNode, _ = rlp.EncodeToBytes(&[]interface{}{
+		crypto.Keccak256(bankAccountAtBlock1bLeafNode),
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		crypto.Keccak256(minerAccountAtBlock1LeafNode),
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		crypto.Keccak256(account1AtBlock1bLeafNode),
+		[]byte{},
+		[]byte{},
+	})
+
+	block2bBranchRootNode, _ = rlp.EncodeToBytes(&[]interface{}{
+		crypto.Keccak256(bankAccountAtBlock1bLeafNode),
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		crypto.Keccak256(minerAccountAtBlock2bLeafNode),
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		crypto.Keccak256(account1AtBlock2bLeafNode),
+		crypto.Keccak256(contractAccountAtBlock2bLeafNode),
+		[]byte{},
+	})
+
+	block3bBranchRootNode, _ = rlp.EncodeToBytes(&[]interface{}{
+		crypto.Keccak256(bankAccountAtBlock3bLeafNode),
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		crypto.Keccak256(minerAccountAtBlock2bLeafNode),
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		[]byte{},
+		crypto.Keccak256(account1AtBlock2bLeafNode),
+		crypto.Keccak256(contractAccountAtBlock3bLeafNode),
+		[]byte{},
+	})
+)
+
+func TestBuilderWithInternalizedLeafNode(t *testing.T) {
+	blocks, chain := test_helpers.MakeChain(3, test_helpers.GenesisForInternalLeafNodeTest, test_helpers.TestChainGenWithInternalLeafNode)
+	contractLeafKey = test_helpers.AddressToLeafKey(test_helpers.ContractAddr)
+	defer chain.Stop()
+	block0 = test_helpers.Genesis
+	block1 = blocks[0]
+	block2 = blocks[1]
+	block3 = blocks[2]
+	params := statediff.Params{}
+	builder = statediff.NewBuilder(chain.StateCache())
+
+	var tests = []struct {
+		name              string
+		startingArguments statediff.Args
+		expected          *types2.StateObject
+	}{
+		{
+			"testEmptyDiff",
+			statediff.Args{
+				OldStateRoot: block0.Root(),
+				NewStateRoot: block0.Root(),
+				BlockNumber:  block0.Number(),
+				BlockHash:    block0.Hash(),
+			},
+			&types2.StateObject{
+				BlockNumber: block0.Number(),
+				BlockHash:   block0.Hash(),
+				Nodes:       emptyDiffs,
+			},
+		},
+		{
+			"testBlock0",
+			//10000 transferred from testBankAddress to account1Addr
+			statediff.Args{
+				OldStateRoot: test_helpers.NullHash,
+				NewStateRoot: block0.Root(),
+				BlockNumber:  block0.Number(),
+				BlockHash:    block0.Hash(),
+			},
+			&types2.StateObject{
+				BlockNumber: block0.Number(),
+				BlockHash:   block0.Hash(),
+				Nodes: []types2.StateLeafNode{
+					{
+						Removed: false,
+						AccountWrapper: struct {
+							Account *types.StateAccount
+							LeafKey []byte
+							CID     string
+						}{
+							Account: bankAccountAtBlock0,
+							LeafKey: test_helpers.BankLeafKey,
+							CID:     ipld2.Keccak256ToCid(ipld2.MEthStateTrie, crypto.Keccak256(bankAccountAtBlock0LeafNode)).String()},
+						StorageDiff: emptyStorage,
+					},
+				},
+				IPLDs: []types2.IPLD{
+					{
+						CID:     ipld2.Keccak256ToCid(ipld2.MEthStateTrie, crypto.Keccak256(bankAccountAtBlock0LeafNode)).String(),
+						Content: bankAccountAtBlock0LeafNode,
+					},
+				},
+			},
+		},
+		{
+			"testBlock1",
+			//10000 transferred from testBankAddress to account1Addr
+			statediff.Args{
+				OldStateRoot: block0.Root(),
+				NewStateRoot: block1.Root(),
+				BlockNumber:  block1.Number(),
+				BlockHash:    block1.Hash(),
+			},
+			&types2.StateObject{
+				BlockNumber: block1.Number(),
+				BlockHash:   block1.Hash(),
+				Nodes: []types2.StateLeafNode{
+					{
+						Removed: false,
+						AccountWrapper: struct {
+							Account *types.StateAccount
+							LeafKey []byte
+							CID     string
+						}{
+							Account: bankAccountAtBlock1b,
+							LeafKey: test_helpers.BankLeafKey,
+							CID:     ipld2.Keccak256ToCid(ipld2.MEthStateTrie, crypto.Keccak256(bankAccountAtBlock1bLeafNode)).String()},
+						StorageDiff: emptyStorage,
+					},
+					{
+						Removed: false,
+						AccountWrapper: struct {
+							Account *types.StateAccount
+							LeafKey []byte
+							CID     string
+						}{
+							Account: minerAccountAtBlock1,
+							LeafKey: minerLeafKey,
+							CID:     ipld2.Keccak256ToCid(ipld2.MEthStateTrie, crypto.Keccak256(minerAccountAtBlock1LeafNode)).String()},
+						StorageDiff: emptyStorage,
+					},
+					{
+						Removed: false,
+						AccountWrapper: struct {
+							Account *types.StateAccount
+							LeafKey []byte
+							CID     string
+						}{
+							Account: account1AtBlock1b,
+							LeafKey: test_helpers.Account1LeafKey,
+							CID:     ipld2.Keccak256ToCid(ipld2.MEthStateTrie, crypto.Keccak256(account1AtBlock1bLeafNode)).String()},
+						StorageDiff: emptyStorage,
+					},
+				},
+				IPLDs: []types2.IPLD{
+					{
+						CID:     ipld2.Keccak256ToCid(ipld2.MEthStateTrie, crypto.Keccak256(block1bBranchRootNode)).String(),
+						Content: block1bBranchRootNode,
+					},
+					{
+						CID:     ipld2.Keccak256ToCid(ipld2.MEthStateTrie, crypto.Keccak256(bankAccountAtBlock1bLeafNode)).String(),
+						Content: bankAccountAtBlock1bLeafNode,
+					},
+					{
+						CID:     ipld2.Keccak256ToCid(ipld2.MEthStateTrie, crypto.Keccak256(minerAccountAtBlock1LeafNode)).String(),
+						Content: minerAccountAtBlock1LeafNode,
+					},
+					{
+						CID:     ipld2.Keccak256ToCid(ipld2.MEthStateTrie, crypto.Keccak256(account1AtBlock1bLeafNode)).String(),
+						Content: account1AtBlock1bLeafNode,
+					},
+				},
+			},
+		},
+		{
+			"testBlock2",
+			// 1000 transferred from testBankAddress to account1Addr
+			// 1000 transferred from account1Addr to account2Addr
+			// account1addr creates a new contract
+			statediff.Args{
+				OldStateRoot: block1.Root(),
+				NewStateRoot: block2.Root(),
+				BlockNumber:  block2.Number(),
+				BlockHash:    block2.Hash(),
+			},
+			&types2.StateObject{
+				BlockNumber: block2.Number(),
+				BlockHash:   block2.Hash(),
+				Nodes: []types2.StateLeafNode{
+					{
+						Removed: false,
+						AccountWrapper: struct {
+							Account *types.StateAccount
+							LeafKey []byte
+							CID     string
+						}{
+							Account: minerAccountAtBlock2b,
+							LeafKey: minerLeafKey,
+							CID:     ipld2.Keccak256ToCid(ipld2.MEthStateTrie, crypto.Keccak256(minerAccountAtBlock2bLeafNode)).String()},
+						StorageDiff: emptyStorage,
+					},
+					{
+						Removed: false,
+						AccountWrapper: struct {
+							Account *types.StateAccount
+							LeafKey []byte
+							CID     string
+						}{
+							Account: account1AtBlock2b,
+							LeafKey: test_helpers.Account1LeafKey,
+							CID:     ipld2.Keccak256ToCid(ipld2.MEthStateTrie, crypto.Keccak256(account1AtBlock2bLeafNode)).String()},
+						StorageDiff: emptyStorage,
+					},
+					{
+						Removed: false,
+						AccountWrapper: struct {
+							Account *types.StateAccount
+							LeafKey []byte
+							CID     string
+						}{
+							Account: contractAccountAtBlock2b,
+							LeafKey: contractLeafKey,
+							CID:     ipld2.Keccak256ToCid(ipld2.MEthStateTrie, crypto.Keccak256(contractAccountAtBlock2bLeafNode)).String()},
+						StorageDiff: []types2.StorageLeafNode{
+							{
+								Removed: false,
+								Value:   slot0StorageValue,
+								LeafKey: slot0StorageKey.Bytes(),
+								CID:     ipld2.Keccak256ToCid(ipld2.MEthStorageTrie, crypto.Keccak256(slot0StorageLeafNode)).String(),
+							},
+							{
+								Removed: false,
+								Value:   slot1StorageValue,
+								LeafKey: slot1StorageKey.Bytes(),
+								CID:     ipld2.Keccak256ToCid(ipld2.MEthStorageTrie, crypto.Keccak256(slot1StorageLeafNode)).String(),
+							},
+						},
+					},
+				},
+				IPLDs: []types2.IPLD{
+					{
+						CID:     ipld2.Keccak256ToCid(ipld2.RawBinary, test_helpers.CodeHashForInternalizedLeafNode.Bytes()).String(),
+						Content: test_helpers.ByteCodeAfterDeploymentForInternalLeafNode,
+					},
+					{
+						CID:     ipld2.Keccak256ToCid(ipld2.MEthStateTrie, crypto.Keccak256(block2bBranchRootNode)).String(),
+						Content: block2bBranchRootNode,
+					},
+					{
+						CID:     ipld2.Keccak256ToCid(ipld2.MEthStateTrie, crypto.Keccak256(minerAccountAtBlock2bLeafNode)).String(),
+						Content: minerAccountAtBlock2bLeafNode,
+					},
+					{
+						CID:     ipld2.Keccak256ToCid(ipld2.MEthStateTrie, crypto.Keccak256(account1AtBlock2bLeafNode)).String(),
+						Content: account1AtBlock2bLeafNode,
+					},
+					{
+						CID:     ipld2.Keccak256ToCid(ipld2.MEthStateTrie, crypto.Keccak256(contractAccountAtBlock2bLeafNode)).String(),
+						Content: contractAccountAtBlock2bLeafNode,
+					},
+					{
+						CID:     ipld2.Keccak256ToCid(ipld2.MEthStorageTrie, crypto.Keccak256(block2StorageBranchRootNode)).String(),
+						Content: block2StorageBranchRootNode,
+					},
+					{
+						CID:     ipld2.Keccak256ToCid(ipld2.MEthStorageTrie, crypto.Keccak256(slot0StorageLeafNode)).String(),
+						Content: slot0StorageLeafNode,
+					},
+					{
+						CID:     ipld2.Keccak256ToCid(ipld2.MEthStorageTrie, crypto.Keccak256(slot1StorageLeafNode)).String(),
+						Content: slot1StorageLeafNode,
+					},
+				},
+			},
+		},
+		{
+			"testBlock3",
+			//the contract's storage is changed
+			//and the block is mined by account 2
+			statediff.Args{
+				OldStateRoot: block2.Root(),
+				NewStateRoot: block3.Root(),
+				BlockNumber:  block3.Number(),
+				BlockHash:    block3.Hash(),
+			},
+			&types2.StateObject{
+				BlockNumber: block3.Number(),
+				BlockHash:   block3.Hash(),
+				Nodes: []types2.StateLeafNode{
+					{
+						Removed: false,
+						AccountWrapper: struct {
+							Account *types.StateAccount
+							LeafKey []byte
+							CID     string
+						}{
+							Account: bankAccountAtBlock3b,
+							LeafKey: test_helpers.BankLeafKey,
+							CID:     ipld2.Keccak256ToCid(ipld2.MEthStateTrie, crypto.Keccak256(bankAccountAtBlock3bLeafNode)).String()},
+						StorageDiff: emptyStorage,
+					},
+					{
+						Removed: false,
+						AccountWrapper: struct {
+							Account *types.StateAccount
+							LeafKey []byte
+							CID     string
+						}{
+							Account: contractAccountAtBlock3b,
+							LeafKey: contractLeafKey,
+							CID:     ipld2.Keccak256ToCid(ipld2.MEthStateTrie, crypto.Keccak256(contractAccountAtBlock3bLeafNode)).String()},
+						StorageDiff: []types2.StorageLeafNode{
+							{
+								Removed: false,
+								Value:   slot105566StorageValue,
+								LeafKey: slot105566StorageKey.Bytes(),
+								CID:     ipld2.Keccak256ToCid(ipld2.MEthStorageTrie, crypto.Keccak256(block3bStorageBranchNodeWithInternalLeaves)).String(),
+							},
+							{
+								Removed: false,
+								Value:   slot40364StorageValue,
+								LeafKey: slot40364StorageKey.Bytes(),
+								CID:     ipld2.Keccak256ToCid(ipld2.MEthStorageTrie, crypto.Keccak256(block3bStorageBranchNodeWithInternalLeaves)).String(),
+							},
+						},
+					},
+				},
+				IPLDs: []types2.IPLD{
+					{
+						CID:     ipld2.Keccak256ToCid(ipld2.MEthStateTrie, crypto.Keccak256(block3bBranchRootNode)).String(),
+						Content: block3bBranchRootNode,
+					},
+					{
+						CID:     ipld2.Keccak256ToCid(ipld2.MEthStateTrie, crypto.Keccak256(bankAccountAtBlock3bLeafNode)).String(),
+						Content: bankAccountAtBlock3bLeafNode,
+					},
+					{
+						CID:     ipld2.Keccak256ToCid(ipld2.MEthStateTrie, crypto.Keccak256(contractAccountAtBlock3bLeafNode)).String(),
+						Content: contractAccountAtBlock3bLeafNode,
+					},
+					{
+						CID:     ipld2.Keccak256ToCid(ipld2.MEthStorageTrie, crypto.Keccak256(block3bStorageBranchRootNode)).String(),
+						Content: block3bStorageBranchRootNode,
+					},
+					{
+						CID:     ipld2.Keccak256ToCid(ipld2.MEthStorageTrie, crypto.Keccak256(block3bStorageExtensionNode)).String(),
+						Content: block3bStorageExtensionNode,
+					},
+					{
+						CID:     ipld2.Keccak256ToCid(ipld2.MEthStorageTrie, crypto.Keccak256(block3bStorageBranchNodeWithInternalLeaves)).String(),
+						Content: block3bStorageBranchNodeWithInternalLeaves,
+					},
+				},
+			},
+		},
+	}
+
+	for _, test := range tests {
+		diff, err := builder.BuildStateDiffObject(test.startingArguments, params)
+		if err != nil {
+			t.Error(err)
+		}
+		receivedStateDiffRlp, err := rlp.EncodeToBytes(&diff)
+		if err != nil {
+			t.Error(err)
+		}
+		expectedStateDiffRlp, err := rlp.EncodeToBytes(test.expected)
+		if err != nil {
+			t.Error(err)
+		}
+		sort.Slice(receivedStateDiffRlp, func(i, j int) bool { return receivedStateDiffRlp[i] < receivedStateDiffRlp[j] })
+		sort.Slice(expectedStateDiffRlp, func(i, j int) bool { return expectedStateDiffRlp[i] < expectedStateDiffRlp[j] })
+		if !bytes.Equal(receivedStateDiffRlp, expectedStateDiffRlp) {
+			actual, err := json.Marshal(diff)
+			if err != nil {
+				t.Error(err)
+			}
+			expected, err := json.Marshal(test.expected)
+			if err != nil {
+				t.Error(err)
+			}
+			t.Logf("Test failed: %s", test.name)
+			t.Errorf("actual state diff: %s\r\n\r\n\r\nexpected state diff: %s", actual, expected)
+		}
+	}
+	// Let's also confirm that our root state nodes form the state root hash in the headers
+	if !bytes.Equal(block1.Root().Bytes(), crypto.Keccak256(block1bBranchRootNode)) {
+		t.Errorf("block1 expected root %x does not match actual root %x", block1.Root().Bytes(), crypto.Keccak256(block1bBranchRootNode))
+	}
+	if !bytes.Equal(block2.Root().Bytes(), crypto.Keccak256(block2bBranchRootNode)) {
+		t.Errorf("block2 expected root %x does not match actual root %x", block2.Root().Bytes(), crypto.Keccak256(block2bBranchRootNode))
+	}
+	if !bytes.Equal(block3.Root().Bytes(), crypto.Keccak256(block3bBranchRootNode)) {
+		t.Errorf("block3 expected root %x does not match actual root %x", block3.Root().Bytes(), crypto.Keccak256(block3bBranchRootNode))
+	}
+}
+
+func TestBuilderWithInternalizedLeafNodeAndWatchedAddress(t *testing.T) {
+	blocks, chain := test_helpers.MakeChain(3, test_helpers.GenesisForInternalLeafNodeTest, test_helpers.TestChainGenWithInternalLeafNode)
+	contractLeafKey = test_helpers.AddressToLeafKey(test_helpers.ContractAddr)
+	defer chain.Stop()
+	block0 = test_helpers.Genesis
+	block1 = blocks[0]
+	block2 = blocks[1]
+	block3 = blocks[2]
+	params := statediff.Params{
+		WatchedAddresses: []common.Address{
+			test_helpers.ContractAddr,
+		},
+	}
+	params.ComputeWatchedAddressesLeafPaths()
+	builder = statediff.NewBuilder(chain.StateCache())
+
+	var tests = []struct {
+		name              string
+		startingArguments statediff.Args
+		expected          *types2.StateObject
+	}{
+		{
+			"testEmptyDiff",
+			statediff.Args{
+				OldStateRoot: block0.Root(),
+				NewStateRoot: block0.Root(),
+				BlockNumber:  block0.Number(),
+				BlockHash:    block0.Hash(),
+			},
+			&types2.StateObject{
+				BlockNumber: block0.Number(),
+				BlockHash:   block0.Hash(),
+				Nodes:       emptyDiffs,
+			},
+		},
+		{
+			"testBlock0",
+			//10000 transferred from testBankAddress to account1Addr
+			statediff.Args{
+				OldStateRoot: test_helpers.NullHash,
+				NewStateRoot: block0.Root(),
+				BlockNumber:  block0.Number(),
+				BlockHash:    block0.Hash(),
+			},
+			&types2.StateObject{
+				BlockNumber: block0.Number(),
+				BlockHash:   block0.Hash(),
+				Nodes:       []types2.StateLeafNode{},
+				IPLDs:       []types2.IPLD{}, // there's some kind of weird behavior where if our root node is a leaf node
+				// even though it is along the path to the watched leaf (necessarily, as it is the root) it doesn't get included
+				// unconsequential, but kinda odd.
+			},
+		},
+		{
+			"testBlock1",
+			//10000 transferred from testBankAddress to account1Addr
+			statediff.Args{
+				OldStateRoot: block0.Root(),
+				NewStateRoot: block1.Root(),
+				BlockNumber:  block1.Number(),
+				BlockHash:    block1.Hash(),
+			},
+			&types2.StateObject{
+				BlockNumber: block1.Number(),
+				BlockHash:   block1.Hash(),
+				Nodes:       []types2.StateLeafNode{},
+				IPLDs: []types2.IPLD{
+					{
+						CID:     ipld2.Keccak256ToCid(ipld2.MEthStateTrie, crypto.Keccak256(block1bBranchRootNode)).String(),
+						Content: block1bBranchRootNode,
+					},
+				},
+			},
+		},
+		{
+			"testBlock2",
+			// 1000 transferred from testBankAddress to account1Addr
+			// 1000 transferred from account1Addr to account2Addr
+			// account1addr creates a new contract
+			statediff.Args{
+				OldStateRoot: block1.Root(),
+				NewStateRoot: block2.Root(),
+				BlockNumber:  block2.Number(),
+				BlockHash:    block2.Hash(),
+			},
+			&types2.StateObject{
+				BlockNumber: block2.Number(),
+				BlockHash:   block2.Hash(),
+				Nodes: []types2.StateLeafNode{
+					{
+						Removed: false,
+						AccountWrapper: struct {
+							Account *types.StateAccount
+							LeafKey []byte
+							CID     string
+						}{
+							Account: contractAccountAtBlock2b,
+							LeafKey: contractLeafKey,
+							CID:     ipld2.Keccak256ToCid(ipld2.MEthStateTrie, crypto.Keccak256(contractAccountAtBlock2bLeafNode)).String()},
+						StorageDiff: []types2.StorageLeafNode{
+							{
+								Removed: false,
+								Value:   slot0StorageValue,
+								LeafKey: slot0StorageKey.Bytes(),
+								CID:     ipld2.Keccak256ToCid(ipld2.MEthStorageTrie, crypto.Keccak256(slot0StorageLeafNode)).String(),
+							},
+							{
+								Removed: false,
+								Value:   slot1StorageValue,
+								LeafKey: slot1StorageKey.Bytes(),
+								CID:     ipld2.Keccak256ToCid(ipld2.MEthStorageTrie, crypto.Keccak256(slot1StorageLeafNode)).String(),
+							},
+						},
+					},
+				},
+				IPLDs: []types2.IPLD{
+					{
+						CID:     ipld2.Keccak256ToCid(ipld2.RawBinary, test_helpers.CodeHashForInternalizedLeafNode.Bytes()).String(),
+						Content: test_helpers.ByteCodeAfterDeploymentForInternalLeafNode,
+					},
+					{
+						CID:     ipld2.Keccak256ToCid(ipld2.MEthStateTrie, crypto.Keccak256(block2bBranchRootNode)).String(),
+						Content: block2bBranchRootNode,
+					},
+					{
+						CID:     ipld2.Keccak256ToCid(ipld2.MEthStateTrie, crypto.Keccak256(contractAccountAtBlock2bLeafNode)).String(),
+						Content: contractAccountAtBlock2bLeafNode,
+					},
+					{
+						CID:     ipld2.Keccak256ToCid(ipld2.MEthStorageTrie, crypto.Keccak256(block2StorageBranchRootNode)).String(),
+						Content: block2StorageBranchRootNode,
+					},
+					{
+						CID:     ipld2.Keccak256ToCid(ipld2.MEthStorageTrie, crypto.Keccak256(slot0StorageLeafNode)).String(),
+						Content: slot0StorageLeafNode,
+					},
+					{
+						CID:     ipld2.Keccak256ToCid(ipld2.MEthStorageTrie, crypto.Keccak256(slot1StorageLeafNode)).String(),
+						Content: slot1StorageLeafNode,
+					},
+				},
+			},
+		},
+		{
+			"testBlock3",
+			//the contract's storage is changed
+			//and the block is mined by account 2
+			statediff.Args{
+				OldStateRoot: block2.Root(),
+				NewStateRoot: block3.Root(),
+				BlockNumber:  block3.Number(),
+				BlockHash:    block3.Hash(),
+			},
+			&types2.StateObject{
+				BlockNumber: block3.Number(),
+				BlockHash:   block3.Hash(),
+				Nodes: []types2.StateLeafNode{
+					{
+						Removed: false,
+						AccountWrapper: struct {
+							Account *types.StateAccount
+							LeafKey []byte
+							CID     string
+						}{
+							Account: contractAccountAtBlock3b,
+							LeafKey: contractLeafKey,
+							CID:     ipld2.Keccak256ToCid(ipld2.MEthStateTrie, crypto.Keccak256(contractAccountAtBlock3bLeafNode)).String()},
+						StorageDiff: []types2.StorageLeafNode{
+							{
+								Removed: false,
+								Value:   slot105566StorageValue,
+								LeafKey: slot105566StorageKey.Bytes(),
+								CID:     ipld2.Keccak256ToCid(ipld2.MEthStorageTrie, crypto.Keccak256(block3bStorageBranchNodeWithInternalLeaves)).String(),
+							},
+							{
+								Removed: false,
+								Value:   slot40364StorageValue,
+								LeafKey: slot40364StorageKey.Bytes(),
+								CID:     ipld2.Keccak256ToCid(ipld2.MEthStorageTrie, crypto.Keccak256(block3bStorageBranchNodeWithInternalLeaves)).String(),
+							},
+						},
+					},
+				},
+				IPLDs: []types2.IPLD{
+					{
+						CID:     ipld2.Keccak256ToCid(ipld2.MEthStateTrie, crypto.Keccak256(block3bBranchRootNode)).String(),
+						Content: block3bBranchRootNode,
+					},
+					{
+						CID:     ipld2.Keccak256ToCid(ipld2.MEthStateTrie, crypto.Keccak256(contractAccountAtBlock3bLeafNode)).String(),
+						Content: contractAccountAtBlock3bLeafNode,
+					},
+					{
+						CID:     ipld2.Keccak256ToCid(ipld2.MEthStorageTrie, crypto.Keccak256(block3bStorageBranchRootNode)).String(),
+						Content: block3bStorageBranchRootNode,
+					},
+					{
+						CID:     ipld2.Keccak256ToCid(ipld2.MEthStorageTrie, crypto.Keccak256(block3bStorageExtensionNode)).String(),
+						Content: block3bStorageExtensionNode,
+					},
+					{
+						CID:     ipld2.Keccak256ToCid(ipld2.MEthStorageTrie, crypto.Keccak256(block3bStorageBranchNodeWithInternalLeaves)).String(),
+						Content: block3bStorageBranchNodeWithInternalLeaves,
+					},
+				},
+			},
+		},
+	}
+
+	for _, test := range tests {
+		diff, err := builder.BuildStateDiffObject(test.startingArguments, params)
+		if err != nil {
+			t.Error(err)
+		}
+		receivedStateDiffRlp, err := rlp.EncodeToBytes(&diff)
+		if err != nil {
+			t.Error(err)
+		}
+		expectedStateDiffRlp, err := rlp.EncodeToBytes(test.expected)
+		if err != nil {
+			t.Error(err)
+		}
+		sort.Slice(receivedStateDiffRlp, func(i, j int) bool { return receivedStateDiffRlp[i] < receivedStateDiffRlp[j] })
+		sort.Slice(expectedStateDiffRlp, func(i, j int) bool { return expectedStateDiffRlp[i] < expectedStateDiffRlp[j] })
+		if !bytes.Equal(receivedStateDiffRlp, expectedStateDiffRlp) {
+			actual, err := json.Marshal(diff)
+			if err != nil {
+				t.Error(err)
+			}
+			expected, err := json.Marshal(test.expected)
+			if err != nil {
+				t.Error(err)
+			}
+			t.Logf("Test failed: %s", test.name)
+			t.Errorf("actual state diff: %s\r\n\r\n\r\nexpected state diff: %s", actual, expected)
+		}
+	}
+	// Let's also confirm that our root state nodes form the state root hash in the headers
+	if !bytes.Equal(block1.Root().Bytes(), crypto.Keccak256(block1bBranchRootNode)) {
+		t.Errorf("block1 expected root %x does not match actual root %x", block1.Root().Bytes(), crypto.Keccak256(block1bBranchRootNode))
+	}
+	if !bytes.Equal(block2.Root().Bytes(), crypto.Keccak256(block2bBranchRootNode)) {
+		t.Errorf("block2 expected root %x does not match actual root %x", block2.Root().Bytes(), crypto.Keccak256(block2bBranchRootNode))
+	}
+	if !bytes.Equal(block3.Root().Bytes(), crypto.Keccak256(block3bBranchRootNode)) {
+		t.Errorf("block3 expected root %x does not match actual root %x", block3.Root().Bytes(), crypto.Keccak256(block3bBranchRootNode))
+	}
+}
+
+/*
+pragma solidity ^0.5.10;
+
+contract test {
+    address payable owner;
+
+    modifier onlyOwner {
+        require(
+            msg.sender == owner,
+            "Only owner can call this function."
+        );
+        _;
+    }
+
+    uint256[105566] data;
+
+	constructor() public {
+	    owner = msg.sender;
+		data = [1];
+	}
+
+    function Put(uint256 addr, uint256 value) public {
+        data[addr] = value;
+    }
+
+    function close() public onlyOwner { //onlyOwner is custom modifier
+        selfdestruct(owner);  // `owner` is the owners address
+    }
+}
+*/
diff --git a/statediff/test_helpers/constant.go b/statediff/test_helpers/constant.go
index ba591ebb4..da41827d7 100644
--- a/statediff/test_helpers/constant.go
+++ b/statediff/test_helpers/constant.go
@@ -23,11 +23,14 @@ import (
 )
 
 var (
-	BalanceChange1000     = int64(1000)
-	BalanceChange10000    = int64(10000)
-	BalanceChange1Ether   = int64(params.Ether)
-	Block1Account1Balance = big.NewInt(BalanceChange10000)
-	Block2Account2Balance = big.NewInt(21000000000000)
-	GasFees               = int64(params.GWei) * int64(params.TxGas)
-	ContractGasLimit      = uint64(1000000)
+	BalanceChange1000                   = int64(1000)
+	BalanceChange10000                  = int64(10000)
+	BalanceChangeBIG, _                 = big.NewInt(0).SetString("2000000000000000000000000000000000000000000", 10)
+	BalanceChange1Ether                 = int64(params.Ether)
+	Block1Account1Balance               = big.NewInt(BalanceChange10000)
+	Block1bAccount1Balance              = BalanceChangeBIG
+	GasFees                             = int64(params.GWei) * int64(params.TxGas)
+	GasFees2                            = int64(params.TxGas) * int64(params.InitialBaseFee)
+	ContractGasLimit                    = uint64(1000000)
+	ContractForInternalLeafNodeGasLimit = uint64(500000000)
 )
diff --git a/statediff/test_helpers/helpers.go b/statediff/test_helpers/helpers.go
index 5e3823be2..5fd6c861a 100644
--- a/statediff/test_helpers/helpers.go
+++ b/statediff/test_helpers/helpers.go
@@ -29,10 +29,13 @@ import (
 	"github.com/ethereum/go-ethereum/params"
 )
 
-func GenesisBlockForTesting(db ethdb.Database, addr common.Address, balance *big.Int) *types.Block {
+func GenesisBlockForTesting(db ethdb.Database, addr common.Address, balance, baseFee *big.Int, initialGasLimit uint64) *types.Block {
 	g := core.Genesis{
 		Alloc:   core.GenesisAlloc{addr: {Balance: balance}},
-		BaseFee: big.NewInt(params.InitialBaseFee),
+		BaseFee: baseFee,
+	}
+	if initialGasLimit != 0 {
+		g.GasLimit = initialGasLimit
 	}
 	return g.MustCommit(db)
 }
@@ -135,3 +138,32 @@ func TestChainGen(i int, block *core.BlockGen) {
 		block.AddTx(tx)
 	}
 }
+
+func TestChainGenWithInternalLeafNode(i int, block *core.BlockGen) {
+	signer := types.HomesteadSigner{}
+	switch i {
+	case 0:
+		// In block 1, the test bank sends account #1 some ether.
+		tx, _ := types.SignTx(types.NewTransaction(block.TxNonce(TestBankAddress), Account1Addr, BalanceChangeBIG, params.TxGas, big.NewInt(params.InitialBaseFee), nil), signer, TestBankKey)
+		block.AddTx(tx)
+	case 1:
+		// In block 2 Account1Addr creates a test contract.
+		nonce := block.TxNonce(Account1Addr)
+		tx1, _ := types.SignTx(types.NewContractCreation(block.TxNonce(Account1Addr), big.NewInt(0), ContractForInternalLeafNodeGasLimit, big.NewInt(params.InitialBaseFee), ContractCodeForInternalLeafNode), signer, Account1Key)
+		ContractAddr = crypto.CreateAddress(Account1Addr, nonce)
+		block.AddTx(tx1)
+	case 2:
+		// Block 3 has two transactions which set slots 223 and 648 with small values
+		// The goal here is to induce a branch node with an internalized leaf node
+		block.SetCoinbase(TestBankAddress)
+		data1 := common.Hex2Bytes("C16431B90000000000000000000000000000000000000000000000000000000000009dab0000000000000000000000000000000000000000000000000000000000000001")
+		data2 := common.Hex2Bytes("C16431B90000000000000000000000000000000000000000000000000000000000019c5d0000000000000000000000000000000000000000000000000000000000000002")
+
+		nonce := block.TxNonce(TestBankAddress)
+		tx1, _ := types.SignTx(types.NewTransaction(nonce, ContractAddr, big.NewInt(0), 100000, big.NewInt(params.InitialBaseFee), data1), signer, TestBankKey)
+		nonce++
+		tx2, _ := types.SignTx(types.NewTransaction(nonce, ContractAddr, big.NewInt(0), 100000, big.NewInt(params.InitialBaseFee), data2), signer, TestBankKey)
+		block.AddTx(tx1)
+		block.AddTx(tx2)
+	}
+}
diff --git a/statediff/test_helpers/test_data.go b/statediff/test_helpers/test_data.go
index e5a06a2a1..438917795 100644
--- a/statediff/test_helpers/test_data.go
+++ b/statediff/test_helpers/test_data.go
@@ -50,23 +50,27 @@ var (
 	StorageValue = common.Hex2Bytes("0x03")
 	NullHash     = common.HexToHash("0x0000000000000000000000000000000000000000000000000000000000000000")
 
-	Testdb          = rawdb.NewMemoryDatabase()
-	TestBankKey, _  = crypto.HexToECDSA("b71c71a67e1177ad4e901695e1b4b9ee17ae16c6668d313eac2f96dbcda3f291")
-	TestBankAddress = crypto.PubkeyToAddress(TestBankKey.PublicKey) //0x71562b71999873DB5b286dF957af199Ec94617F7
-	BankLeafKey     = AddressToLeafKey(TestBankAddress)
-	TestBankFunds   = big.NewInt(params.Ether * 2)
-	Genesis         = GenesisBlockForTesting(Testdb, TestBankAddress, TestBankFunds)
-
-	Account1Key, _          = crypto.HexToECDSA("8a1f9a8f95be41cd7ccb6168179afb4504aefe388d1e14474d32c45c72ce7b7a")
-	Account2Key, _          = crypto.HexToECDSA("49a7b37aa6f6645917e7b807e9d1c00d4fa71f18343b0d4122a4d2df64dd6fee")
-	Account1Addr            = crypto.PubkeyToAddress(Account1Key.PublicKey) //0x703c4b2bD70c169f5717101CaeE543299Fc946C7
-	Account2Addr            = crypto.PubkeyToAddress(Account2Key.PublicKey) //0x0D3ab14BBaD3D99F4203bd7a11aCB94882050E7e
-	Account1LeafKey         = AddressToLeafKey(Account1Addr)
-	Account2LeafKey         = AddressToLeafKey(Account2Addr)
-	ContractCode            = common.Hex2Bytes("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")
-	ByteCodeAfterDeployment = common.Hex2Bytes("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")
-	CodeHash                = common.HexToHash("0xaaea5efba4fd7b45d7ec03918ac5d8b31aa93b48986af0e6b591f0f087c80127")
-	ContractAddr            common.Address
+	Testdb                                     = rawdb.NewMemoryDatabase()
+	TestBankKey, _                             = crypto.HexToECDSA("b71c71a67e1177ad4e901695e1b4b9ee17ae16c6668d313eac2f96dbcda3f291")
+	TestBankAddress                            = crypto.PubkeyToAddress(TestBankKey.PublicKey) //0x71562b71999873DB5b286dF957af199Ec94617F7
+	BankLeafKey                                = AddressToLeafKey(TestBankAddress)
+	TestBankFunds                              = big.NewInt(params.Ether * 2)
+	TestBIGBankFunds, _                        = big.NewInt(0).SetString("20000000000000000000000000000000000000000000", 10)
+	Genesis                                    = GenesisBlockForTesting(Testdb, TestBankAddress, TestBankFunds, big.NewInt(params.InitialBaseFee), 0)
+	GenesisForInternalLeafNodeTest             = GenesisBlockForTesting(Testdb, TestBankAddress, TestBIGBankFunds, big.NewInt(params.InitialBaseFee), params.MaxGasLimit)
+	Account1Key, _                             = crypto.HexToECDSA("8a1f9a8f95be41cd7ccb6168179afb4504aefe388d1e14474d32c45c72ce7b7a")
+	Account2Key, _                             = crypto.HexToECDSA("49a7b37aa6f6645917e7b807e9d1c00d4fa71f18343b0d4122a4d2df64dd6fee")
+	Account1Addr                               = crypto.PubkeyToAddress(Account1Key.PublicKey) //0x703c4b2bD70c169f5717101CaeE543299Fc946C7
+	Account2Addr                               = crypto.PubkeyToAddress(Account2Key.PublicKey) //0x0D3ab14BBaD3D99F4203bd7a11aCB94882050E7e
+	Account1LeafKey                            = AddressToLeafKey(Account1Addr)
+	Account2LeafKey                            = AddressToLeafKey(Account2Addr)
+	ContractCode                               = common.Hex2Bytes("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")
+	ByteCodeAfterDeployment                    = common.Hex2Bytes("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")
+	CodeHash                                   = common.HexToHash("0xaaea5efba4fd7b45d7ec03918ac5d8b31aa93b48986af0e6b591f0f087c80127")
+	ContractCodeForInternalLeafNode            = common.Hex2Bytes("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")
+	ByteCodeAfterDeploymentForInternalLeafNode = common.Hex2Bytes("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")
+	CodeHashForInternalizedLeafNode            = common.HexToHash("8327d45b7e6ffe26fc9728db4cd3c1c8177f7af2de0d31dfe5435e83101db04f")
+	ContractAddr                               common.Address
 
 	EmptyRootNode, _  = rlp.EncodeToBytes(&[]byte{})
 	EmptyContractRoot = crypto.Keccak256Hash(EmptyRootNode)